7/30/2019 Presentation on Segmenting & Targeting the Rural Market

1/16

Presentation on Segmenting &targeting the Rural Market

Presented by.

Mr. Prashantkumar

Mr. Anand

Mr. Simon.

Mr. Kothari

Mr. Sagar

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

2/16

What is Rural

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

3/16

What is Urban?

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

4/16

SEGMENTATION

Segmentation is the sub-division of a marketinto homogeneous subsets of Consumerswhere any subset may conceivably be selectedas a target market to be reached with adistinct marketing mix.

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

5/16

Heterogeneity in Rural markets

Socio-cultural difference Variation in population size & population

density of village Difference in level of infrastructural

development (developed Vs Developing states) Media exposure level

Variation on literacy level Difference in income level & pattern of incomr

flow Family structure

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

6/16

Pre-requisites for effectiveSegmentation

Measurable Accessible

Differentiable Substantial

1. Homogeneity.

2. Size.

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

7/16

Degrees of Segmentation

Mass Marketing Segment Marketing

Niche Marketing Micro Marketing

1. Local marketing

2. Individual Marketing

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

8/16

Bases of Rural Consumer Markets

On the bases of Geographic Segmentation On the bases of Demographic Segmentation

On the bases of Psychographic Segmentation On the bases of Behavioral Segmentation On the bases of Multi-attribute Segmentation

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

9/16

Targeting

Once segmentation has been done, one needsto evaluate each segment to decide whichsegment to target.

Targeting involves steps

1. Evaluating the segment attractiveness

2. Selecting the segment for targeting3. Choosing the coverage strategy

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

10/16

Evaluation of segments

Overall attractiveness

1. Size

2. Growth rate3. Accessibility

4. Profitability

5. Scale economies6. Low risk

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

11/16

Evaluation of segments

Company objective & resource competencies

Marketer should evaluate the segmentopportunities with the reference to their shortterm & long term objectives. If Cos objectivesare to achieve long-term sustainable salesvolume by expanding consumer base.

For Ex. Asian Paints, HUL, & Colgate Palmolive

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

12/16

Selection of Segments

After evaluating segments according to thementioned factors, segments can be selectedby rating them on a pre-determinedscale(low, medium, high) with respect to theevaluation factors. Finally, segments can beranked on the score obtained, & those with

the highest scores can be selected as targetsegment to enter the rural market

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

13/16

Coverage of Segment

Undifferentiated differentiated Concentrated

Mass marketing(Nirma)

Segmentedmarketing(Lifebuoy)

Niche marketing(Multiple brands

soaps of HUL)

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

14/16

Choosing Coverage strategies

The marketers approach towards strategyselection changes with the reference to thestate 4 variables

1. Company resource

2. Product variability

3. PLC stage

4. Market variability

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

15/16

For Example

Mahindra & Mahindra as well as other tractorCompanies have adopted a differentiatedstrategies as these Companies have largesource & more product variability also, theproducts is in the growth stage in the market,& has a market viability.

7/30/2019 Presentation on Segmenting & Targeting the Rural Market

16/16

THANK YOU