MARKET STRATEGY REFERENCE WITH RURAL MARKET

M.KIRAN KUMAR(leader) GROUP B 114/12/2013

Presented by M.KIRAN(LEADER)

PRAVEENSRIKANTH

KEDAR

M.KIRAN KUMAR(leader) GROUP B 2

MARKET STRATEGY REFERENCE WITH RURAL MARKET [ TOOPRAN]

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objective1.What is Market.2.Classification of Market on basis of 1)Time 2)Place 3)Competition

3.Rural Market and Varies Aspects in it.

4. 4P”S in market competition.5.Objectives Related to Seller and

Consumer.6.Casestudy related to Toopran Market

[Ideas].7.Questions Related to Presentation

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4

WHAT IS MARKET

Market means a place where buyer and seller meets together in order to carry on transactions of goods and services.

"Market refers to arrangement, whereby buyers and sellers come in contact with each other directly or indirectly, to buy or sell goods."

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Classification of Market

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1.Sellers and buyersLarge number of sellers and buyers Are in the perfect competition

2.Entry Free entry in perfect competition

3.Tax Low tax

4.Transport costs No transport cost in perfect competition

5.Products Number products are available

6.Government Involvement Less Involvement including permission and low tax

7.Product Differentiation There respective changes from product to product

8.Economy of scale As per wish of seller

PERFECT COMPETITION

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Rural Marketing :-Meaning

Planning & Implementation of marketing functions for Rural Areas

DefinitionRural marketing has been

defined as the process of developing, pricing, promoting, distributing, rural specific goods & services leading to exchange between urban & Rural markets, which satisfies consumer demand & also achieves marketing objectives

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INNOVATIONS FOR RURAL MARKET

Companies will have to innovate profusely if their product and services have to be acceptable Rural consumers

Washing machines will have no use for rural consumers whenthey do not have either electricity or running water washing machines will have to be powered differently.Rural consumers buy diesel in bulk to run their water pumps, Harvesters and tractors it is helpful if their vehicles also run on diesel. 14/12/2013


Consumer durable products and vehicles have to be designed very differently for rural market. Companies who want tomarket in rural areas have to Start on a clean slate through innovation.

There are several grassroots innovators in India with revolutionary Products that people in rural areas want.

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NATURE OF COMPETITION FOR AGRICULTURAL INPUTS

The Multi-national companies(MNCs) placing new demands before the farmers in terms of the crops varieties and quality required.

If the farmers want to work with them, and make more money out of farming.

This is being driven through contract farming, joint ventures, leasing of land, And extension to the loosely contracted farmers in a given area.

In some crops, MNCs are directly competing with the farmers, forcing them to become agribusiness men who use modern and better inputs.

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NATURE OF COMPETITION FOR AGRICULTURAL INPUTS

The whole approach to farming is undergoing change with the globalization of rural production processes and privatization of various systems. There is also competition from substitutes like bio-fertilizers and bio-pesticides in fertilizer and pesticide market respectively.

Therefore ,competition is to be understood in a more strategic sense of buyers, suppliers, new entrants, substitutes and existing competitors

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CONSTRAINTS FOR DEVELOPING RURAL MARKETS

Marketing effort for manufactured consumer goods as well as agricultural Inputs in rural areas is constrained by the following:High distribution costs:High initial market development expenditure:Credit facility Inadequate infrastructural facilities such as connecting roads,media availability etc.

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CONSUMER FEELINGS

As part of “Advertising experience” advertisements influence the Viewers beliefs and attitude and are the most effective means to Facilitate a positive feeling about any brand.

As part of “shopping experience” the shopping environment created while Purchasing a product also helps form an attitude about the product.

As part of “consumption experience” the feelings during the consumption of a Product influence the consumer’s post consumption evaluations. Consumptions are more satisfied if consumption leads to positive feelings.

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5.Objectives Related to Seller and Consumer.

Marketing objectives define what you want to accomplish through your marketing activities. There are several important factors to consider when establishing effective marketing objectives.

SMART Approach

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S=Setting specificM=measurableA= achievable,R=realisticT=time

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•Specific - Need to understand the latest preferences of customers in the identified segments and appropriately target each stationary item such as pens, exercise books, roolers, and calculators to maximize sales volumes•Measurable - Current market share is 20%, will set a target of 30% market share, meaning we need an extra 10%, market share amounts can be established based by monitoring the overall value of sales in terms of dollars

•Achievable - Ensuring technical competency and commitment of all personnel involved in the development and implementation of strategy. This can range from having an experienced and knowledgeable marketing team to capable sales staff. Access to funding is also necessary for the acquisition of extra stock to fulfill increased demand.14/12/2013


•Realistic - The objective is realistic as the marketing resources are in place to conduct the segmenting and targeting exercise and access to the extra stock required

•Time Specific - The increase in market share is to be achieved within 12months, a regular progress update will be taken every month to track level of success

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The marketing mix and the 4 Ps of marketing are often used as synonyms for each other. In fact, they are not necessarily the same thing."Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4Ps is one way – probably the best-known way – of defining the marketing mix, and was first expressed in 1960 by E J McCarthy.

4P”S in market competition

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The 4Ps are:•Product (or Service).•Place.•Price.•Promotion.

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1.Product/Service1.What does the customer want from the product/service? What needs does it satisfy?2.What features does it have to meet these needs?3.Are you including costly features that the customer won't actually use?4.How and where will the customer use it?5.What does it look like? How will customers experience it?6.What size(s), color(s), and so on, should it be?7.What is it to be called?8.How is it branded?10.How is it differentiated versus your competitors?11.What is the most it can cost to provide, and still be sold sufficiently profitably? (See also Price, below).

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2.Place•Where do buyers look for your product or service?

•If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue?

•How can you access the right distribution channels?

•Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies?

•What do you competitors do, and how can you learn from that and/or differentiate?

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3.Price1.What is the value of the product or service to the buyer?

2.Are there established price points for products or services in this area?

3.Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin?

4.What discounts should be offered to trade customers, or to other specific segments of your market?

5.How will your price compare with your competitors?

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4.Promotion•Where and when can you get across your marketing messages to your target market?

•Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? By using direct marketing mail shot? Through PR? On the Internet?

•When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions?

•How do your competitors do their promotions? And how does that influence your choice of promotional activity?

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Strengths (S) Weaknesses (W)

•Excellent sales staff with strong knowledge of existing products•Good relationship with customers•Good internalcommunications•High traffic location•Successful marketing strategies•Reputation for innovation

•Currently struggling to meet deadlines - too much work?•High rental costs•Market research data may be out of date•Cash flow problems•Holding too much stock•Poor record keeping

Internal environment

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External environment

Opportunities (O) Threats (T)

•Similar products on the market are not as reliable or are more expensive•Loyal customers•Product could be on the market for Christmas•Customer demand - have asked sales staff for similar product

•Competitors have a similar product•Competitors have launched a new advertising campaign•Competitor opening shop nearby•Downturn in economy may mean people are spending less

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ANY QUARIES!


1.What is perfect competition.2.What you understand from and explain the 4Ps in market strategy.3.What you understand the SMART Analysis.4.What you understand the SWOT Analysis. 5.Give any 3 demands are given by any seller in rural market.6.Why MNCs are placing various demands before the farmers.

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Questions:-

MARKET STRATEGY REFERENCE WITH RURAL MARKET

Business

Transcript of MARKET STRATEGY REFERENCE WITH RURAL MARKET