Marketing of consumer durables and non durable goods and

rural marketing course - durable and nondurable goods and services

1. Marketing of consumer durables and non-durable goods and services in the rural markets with special reference to product planning FACULTY OF MANAGEMENT STUDIES, MLSU UDAIPUR (A GRADE COLLEGE) BY DIVYA RAJPUROHIT FROM E-COM

2. W hat are consumer durables ????? “Consumer durables are the products whose life expectancy is at least 3 years . These products are hard goods that cannot be used up at once.” WHAT IT IS: In  economics , a  durable good  or a  hard good  is a  good  that does not quickly wear out, or more specifically, one that yields  utility  over time rather than being completely  consumed  in one use. Items like  bricks  could be considered perfectly durable goods because they should theoretically never wear out. Highly durable goods such as  refrigerators  or  cars  usually continue to be useful for three or more years of use,so durable goods are typically characterized by long periods between successive purchases. Durable goods  are a category of consumer products that do not need to be purchased frequently because they are made to last for a long time (usually lasting for three years or more). They are also called consumer  durables  or durables.

3. Examples of consumer durable goods include  automobiles ,  books ,  household goods  ( home appliances ,  consumer electronics ,  furniture ,  tools , etc.),  sports equipment ,  jewelry ,  medical equipment ,  firearms , and  toys .

4. HOW IT WORKS (EXAMPLE): Consumer goods are many times separated into two categories:  durables  and non-durables. Durables have an extended product life and are not typically worn out or consumed quickly when you use them. Since they're made to last, durable goods are often times more expensive than non-durable goods that have to be purchased repeatedly over a short period of time. A washing machine is an example of a durable good -- it takes many years and a number uses to completely expend its functionality. The laundry detergent used in the washing machine, on the other hand, is a non-durable good -- when the bottle is empty, the detergent must be repurchased. Other examples of durable goods include automobiles, appliances, furniture, jewelry, consumer electronics and sporting goods.

5. Non-durable goods Nondurable goods  or  soft goods  ( consumables ) are the opposite of durable goods. They may be defined either as goods that are immediately consumed in one use or ones that have a lifespan of less than three years. Examples of nondurable goods include  fast-moving consumer goods  such as  cosmetics  and cleaning products, food, condiments, fuel, beer, cigarettes and tobacco, medication, office supplies, packaging and containers, paper and paper products, personal products, rubber, plastics, textiles, clothing, and footwear. While durable goods can usually be rented as well as bought, nondurable goods generally are not rented. While buying durable goods comes under the category of investment demand of goods, buying non-durables comes under the category of consumption demand of goods

6. Non-durable goods  are products consumers purchase with the plan to use for a short period of time. Also referred to as consumable goods, most non-durable goods are expected to be consumed or used in three years or less. Because of this basic characteristic, non-durable goods can be a wide variety of products. There are essentially three types of non-durable goods. They may be literally consumed, as with food and drinks. They can also be utilized until they are gone, such as deodorant, toothpaste or dish soap. The third type of non-durable good is a product that is used and no longer needed, intended for one use, or wears out from normal use, such as socks, paper plates and light bulbs

7. Diffrence between durable and non-durable goods Hard goods Durable goods are those which do not wear out easily and therefore they can be used for long period time Some of the examples of durable products are cars, books, television, freeze etc. Durable goods can be used many number of times Durable goods can be resold after some years Soft goods Nondurable goods are those which wear out easily and therefore they can be used for short period of time only. Some of the examples of nondurable goods include things like petrol, cosmetics items, soaps etc… Nondurable products can used for only limited number of times in some cases only once. Nondurable products such opportunity does not exist. Durable goods Non-durable goods

8. Problems are face during marketing your product in rural area Low literacy Seasonal demand Transportation Media for promotion Communication problem Traditional life Buying decision Career in rural marketing

9. Marketing strategies Advertisement media:- Print Media Road Play Radio Channel Wall Painting Billboards Poster and Stikers puppet show

10. Product strategies :-Small size package Low price package Rough & tough Usable products Brand image Pricing strategies :- Low pricing Low cost packaging Conversion

11. Outdoor advertising

12. RURAL MEDIA PLANNING

13. INTRODUCTION • In the view of marketing, media is the process of marketing communication to inform, persuade and influence the consumers in the favour of goods and services. Media planning  is generally outsourced to a  media agency  and entails sourcing and selecting optimal media platforms for a client's brand or product to use. The job of media planning is to determine the best combination of media to achieve the marketing campaign objectives.

14. In the process of planning, the media planner needs to answer questions such as:- How many of the audience can be reached through the various media? On which media (and ad vehicles) should the ads be placed? How frequent should the ads be placed? How much money should be spent in each medium?

15. Choosing which media or type of  advertising  to use can be especially challenging for small firms with limited budgets and know-how. Large-market television and newspapers are often too expensive for a company that services only a small area (although local newspapers can be used). Magazines, unless local, usually cover too much territory to be cost-efficient for a small firm, although some national publications offer regional or city editions.

16. OBJECTIVE It communicates marketing information to consumers, users and sellers. Media persuades and convinces the buyer and influences his behavior to take desired action. Its stimulates demand, capture demand from competition and maintain demand for the company’s products even in a competitive market situation.

17. TYPES OF MEDIA Television Radio Print Cinema/Theatres Word of mouth Video on wheels Wall painting Posters Demonstration Mela Folk theatre Post card Mass media (conventional) Traditional media (nonconventional)

18. MEDIA EFFECTIVENESS • Audience profile - Rural audiences are exposed to mass media, and can be easily reached, and young male members are majority viewers of television • Media preferences - Traditional media can be more effective with rural audience. Interpersonal communication (IPC) was ranked most effective, followed by TV, print media, and then radio • Media viewing and listening behavior - Television radio and print media in rural areas is very popular such as (DD national, Vividh Bharti , Dainik jagrn , Hindustan etc.)

19. RURAL MEDIA CHALLENGES Spread and diversity Low literacy level Poor infrastructure facilities (road, telecom, electricity) Different leisure time activities (no fixed timings, and often requiring work during nights and in odd hours. Lack of research data

20. RURAL MEDIA STRATEGIES Managing spread and diversity • Languages : The message has to be understood. • Identifying geographical locations with a larger concentration of rural consumers. • Locating potential consumers with a higher propensity to spend. Use of audio-video medium • Literacy rates being less in rural areas, and TV and Radio having much more reach in rural masses compared to print media, communication through electronic media must be given priority over press.

21. Use of publicity vans Publicity van is one of the effective tools for rural communications. Example:- Agricultural input companies regularly use video vans for promoting their products.

22. Use of stall and Hatts Especially in kisan Mela and village festivals to spread messages and can also include brand trials.

23. FOCUS ON OPINION LEADERS OR REFERENCE GROUPS

24. Communication through wall paintings and Hoardings

25. The first rural market

26. Coca cola India’s Rural Marketing Strategy 1. A vailability : availability of the product to customer 2. A ffordability: product pricing 3. A cceptability : convincing the customer to buy the product

27. A cceptability Extensive marketing in the mass media and outdoor advertising Aggressive rural communication campaign consisting of  Hoardings  Participation in weekly Mandis and annual Haats  TV commercials  Print Advertisement in several regional newspapers

28. Hoardings and wall paintings Put up hoardings in the villages Painted the name Coca cola on the compounds of the residences in the villages

29. Weekly Mandies and Haats • Weekly Mandies :Weekly fairs where villages gather and sell their produce • Annual Haats : Annual exhibitions conducted during festival season • By setting up temporary outlets

30. TV commercials Targeted at Rural consumers • Increased Ad-spend on Doordarshan • 2002 Commercial featuring Amir Khan to communicate the message of price cut and launch of Chota Coke (200ml Rs.5 bottle)