Rural Market Segmentation

PRESENTED BYHARSHAL M. PANDAVMBA 4-SEM (MB11018)

IntroductionMarket:

A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange.

Market is a place where Selling & Buying takes place

Market is the process by which the prices of goods and services are established.

Rural MarketRural markets have emerged as an important

growth engine in the Indian consumption story.

With about 70 per cent of the Indian population residing in the rural part of the country, rural markets seem to be a significant opportunity for business corporation.

SegmentThe divisions found in the internal section.

Market segment, the smaller subgroups comprising a market

Market Segmentation “The process of defining and subdividing a large homogenous market into

clearly identifiable segments having similar needs, wants, or demand characteristics”.

Rural market segmentation is mainly based on demographic factors.

The division is based on the premises, the different people have different preferences.

The following are the basic market preferences:- Homogeneous preferences where consumers have roughly the same preferences.

Diffused preferences where consumers are scattered throughout the market by their preferences.

Clustered preferences where consumers are found in distinct preference groups.

The STP Process Marketing Decision Marketing Actions to be Undertaken

Segmenting Identify Various bases for Market Segmentation.

Identifying and developing profiles of market segments.

Target Evaluating Market Segment for their attractiveness.

Deciding the market coverage strategy

Positioning Identifying, Selecting the possible competitive advantage of the Brand/Product.

Communicating the chosen competitive advantages to the Customer.

Basis & Approaches to Segmentation Segmentation Criteria

Relevant Variables / Indicators

Geographic • Region • Village Size and density • Climate

Demographic • Age • Gender • Income • Education• Occupation• Religion

Psychographics • Lifestyle• Personality • Social

Behavioral • Occasions • Benefits sought • Loyalty• Status• Usage rate

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Process of Market Segmentation

Market Segmentation Process

Identify Needs

Identify Characteristics

Estimate Demand

Degree of segmentation

The segmentation is considered as a process with two polar points from zero to complete, four distinct segment approaches are identifiable as follows.

Zero

Type Mass marketing

Segmentmarketing

Nichemarketing

Micro marketing

Approach Considers allpeopleas a bunch

Identity’s peopleas a differinggroup

Serves very fewgroups ofpeople

Focus onindividualsor very smallgroups

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Benefits of Market Segmentation

Customers with similar wants, needs and characteristics can be focused.

It is easy to design promotional activities for a specific segment.

By targeting a specific segment, much investment can be saved.

It is easy to manage a specific segment of market.

Thank You

Any Questions & Suggestions