Rural Marketing Strategies, Consumer Buying Behavior.

Rural Marketing Strategies, Consumer Buying Behavior.
Presentations By Rajendran Ananda Krishnan, https://www.facebook.com/ialwaysthinkprettythings

1. Rural Marketing- Consumer buying behavior Rajendran ananda krishnan https://www.facebook.com/ialwaysthinkprettythings

2. Topics to be covered Rural Consumer : Consumer buying behavior models, Factors affecting consumer behavior, Social Factors, Technological Factors, Economic Factors, Political Factors Characteristics of Rural Consumer – Age and Stages of the Life Cycle, Occupation and Income, Economic Circumstances, Lifestyle, Personality and Brand Belief, Information Search and pre purchase Evaluation, Rise of Consumerism Consumer Buying Process, Opinion Leadership Process, Diffusion of Innovation, Brand Loyalty https://www.facebook.com/ialwaysthinkprettythings

3. Model of consumer behavior Marketing stimuli Product Price Distribution Communication Other stimuli Economic Technological Political Cultural Consumer Psychology Motivation Perception Learning Memory Consumer characteristics Cultural Social Personal Buying Decision Process Problem Recognition Information search Evaluation of alternatives Purchase decision Post purchase decision Purchase decision Product choice Brand choice Dealer choice, Purchase amount, Purchase timing, Payment method https://www.facebook.com/ialwaysthinkprettythings

4. Consumer Buying Behavior Models Consumer decision making varies with the type of buying decision. Complex and expensive purchases are likely to involve more buyer deliberations and more participants. Henry Assael distinguished four types of consumer buying behavior based on the degree of buyer involvement and the degree of differences among brands. Complex buying behavior – Consumers engage in complex buying behavior when they are highly involved in a purchase and aware of significant differences among brands.This is usually the case when the product is expensive, bought infrequently, risky and highly self-expressive. The marketer needs to differentiate the brand’s features, use print media to describe the brand’s benefits and motivate store sales personnel and the buyer’s acquaintances to influence the final brand choice. For eg . Automobile, two-wheeler, consumer durable. https://www.facebook.com/ialwaysthinkprettythings

5. Complex Buying behavior Eg . Automobile,Two -wheeler, consumer durables Variety-seeking buying behavior Eg . Chocolates, cookies Dissonance-reducing buying behavior Eg . Carpet Habitual buying behavior Eg . Salt Significant differences between brands Few differences between brands High involvement Low Involvement Dissonance-reducing buying behavior – Sometimes the consumer is highly involved in a purchase but sees little difference in the brands. The high involvement is based on the fact that the purchase is expensive, infrequent and risky. For example, carpet buying. After the purchase, the consumer might experience dissonance that stems from noticing certain disquieting features of the carpet or hearing favorable things about other carpets. Thus marketing communication should aim at supplying beliefs and evaluations that help the consumer feel good about his or her brand choice. https://www.facebook.com/ialwaysthinkprettythings

6. Habitual Buying Behavior – Many products are bought under conditions of low consumer involvement and the absence of significant brand differences. Consider salt.Consumers have little involvement in the product category . They go to the store and reach for the brand.If they keep reaching for the same brand, it is out of habit, not strong brand loyalty.It happens with most low-cost, frequently purchased products.Marketers find it effective to use ad repetition, price and sales promotion to stimulate product trial. Variety-seeking buying behavior – Some buying situations are characterised by low consumer involvement but significant brand differences. Here consumers often do a lot of brand switching. Think about cookies. The consumer may reach for another brand out of boredom or a wish for a different taste. The marketer will try to encourage habitual buying behavior by dominating the shelf space, avoiding out of stock conditions, sponsoring frequent reminder advertising, offering lower prices, deals, coupons and free samples. https://www.facebook.com/ialwaysthinkprettythings

7. Factors affecting Buying Behavior Psychological Factors Motivation Perception Learning Memory Personal factors Age and Stage in the Life Cycle, Occupation and Economic Circumstances, Personality, Lifestyle Social factors, Cultural factors Reference Groups, Family, Roles and Status Marketing Mix Product Price Place Promotion https://www.facebook.com/ialwaysthinkprettythings

8. Factors affecting Consumer Behavior – Cultural factors Customs are socially acceptable norms that have been in practice over a long period of time. Rural India, being until now largely isolated from new practices and customs, tends to follow the customs of its traditional society. In urban India, however, in the due course of time, many of the customs have changed and continue to change, a change that is accelerated when a new generation adopts new value systems and practices in order to fit into perceived modernity. Regional influences can be defined as a set of attributes exhibited in clothing, preference for certain types of cereals, food preparations etc.For eg . Tamilians prefer to cook their native idli with sambhar . https://www.facebook.com/ialwaysthinkprettythings

9. Traditions are long standing beliefs that are believed to be true in nature and are often practised in a ritualistic manner, without knowing the origin or questioning the need to do so. For eg . A tradition that after washing/shampooing the hair, it should not be left open is based on a belief in some parts of rural India that this gives an opportunity for evil spirits to enter. Shampoo ads showing the bounce in the woman’s hair after a wash may communicate a message quite different from what was intended. https://www.facebook.com/ialwaysthinkprettythings

10. Factors affecting consumer behavior Rural Taste Subject Urban Taste Bold and Primary Colors Colors Liked Shades of Colors, Light Hues Cinema, Nautanki , Dangals , Melas Entertainment Theme Parks, Internet, Travel Synthetics, Colourful Clothes Denim, Cottons, Designer Red – Happiness, Auspicious. Green - Prosperity Color Relevance Red – Danger Green - Safety https://www.facebook.com/ialwaysthinkprettythings

11. Social factors Touching feet Hair should not be left open after washing. Housing in rural areas based on caste and in urban areas based on Socio economic class. Influenced by NGOs, Opinion Leaders, Aanganwadi workers, SHG members. Joint Family in rural areas and Nuclear Family in urban areas. Role and Status of Sarpanch , retired military personnel, priests, teachers, medical practioners . Product choice features Very Social in Rural Areas https://www.facebook.com/ialwaysthinkprettythings

12. Products and Status Symbols Rural Urban Social/Political status Educational Degree Tractor/Jeep/Car Car Large Pucca House with courtyard House Locality Children’s city education / jobs Children’s school / college Land Airconditioning Telephone Club membership Pilgrimage Holiday Abroad https://www.facebook.com/ialwaysthinkprettythings

13. Technological Factors Rural India is beginning to experience the impact of technology, leading to major changes that are transforming the countryside. Opportunities, products, services, knowledge, information are all exploding. Introduced with the purpose and need to create an instant network for good governance, telecommunications has transformed rural India in so many other ways that is of interest to marketers. STD booths and PCOs have emerged as the new community centre in the villages for the exchange of news and views for every age group and therefore an important place fro marketers to display brand communication messages. https://www.facebook.com/ialwaysthinkprettythings

14. Economic Factors The entire economic environment of rural India shows a much improved prosperity due to repeated benevolent monsoons, new and improved techniques, higher quality of inputs and increasing awareness and education on agriculture. Banking is reaching out to the doorstep of more and more farmers. Finance is now more readily available and so is credit. https://www.facebook.com/ialwaysthinkprettythings

15. Political Factors Schemes launched by Government has led to the development of rural areas. The Government of India is empowering the Panchayati Raj and other village institutions by making available developmental funds. This has resulted in major purchases of equipment and materials needed for infrastructure development. 30% compulsory representation of women in local bodies is leading to their empowerment, encouraging women in rural India to explore income generation and entrepreneurial activities. https://www.facebook.com/ialwaysthinkprettythings

16. Fundamentals of rural consumer behavior Demonstrations, Targeting Opinion Leaders, Employing Trained Sales Persons Lack of Strong Brand Consciousness Generally ask for the product and not the brand. Indian consumers, on an average, try about six brands of same package goods product in one year, compared to two for Americans. https://www.facebook.com/ialwaysthinkprettythings

17. Lifestyle of rural consumer Rural Consumer is very religious – Dabur developed a religious calendars and gave Hanuman Chalisa along with their products. Ganga made of milk and holy water of Ganga . Govinda as a Brand Ambassador. Rural Consumers prefer to work Hard themselves – Machines to be sold on the basis of benefits offered and not on the basis of comfort and convenience. Strong Family ties and respect for Family Values Likes to play Cards and Hangs out at Choupal . https://www.facebook.com/ialwaysthinkprettythings

18. Rural Shopping Habits : Consumer Insights Preference for small or medium Package – Britannia’s Tiger Biscuits, Cavinkare’s Chik Shampoo, and small Coke for Rs. 5. Role of Retailer Role of Opinion Leaders for durables – Opinion Leaders like Sarpanch , village elders and educated Youth of the village. https://www.facebook.com/ialwaysthinkprettythings

19. Consumption by Age and Stages of the life cycle Age Life-Cycle stage Urban Rural Below 12 Child Video games, Chocolates, beverages, health drinks Toys, ice candy, daliya 13-19 Teenage Cell phones, motor cycles, Internet Bicycle, television, cinema 20-40 Young Car, Personal Computer, branded clothing, alcohol, stores/malls Motorcycle, telephone, LPG, tailored/unbranded clothes, local liquor, haat 40-60 Middle Aged Luxury Car, Credit Cards, House, health insurance, holiday trips Tractors, Kissan Credit Card, postal savings, mela Above 60 Old Clubs, theatre, parks Chaupal , Playing Cards, pilgrimage. https://www.facebook.com/ialwaysthinkprettythings

20. Occupation and Income In the rural sector, a range of goods and services beyond the very basic ones are bought by a consumer, influenced by the occupation and income of the individual. Fishermen buy a boat and large nets, whereas a farmer opts first for a tractor and pump set. https://www.facebook.com/ialwaysthinkprettythings

21. Lifestyle – Comparison of rural and urban Lifestyle Dimensions Urban Rural Demographics Convent Educated, salary earner, small nuclear family, large dense population, apartments Govt school, self-employed, large family, small/scattered population, ordinary spacious houses Activities Office jobs, internet surfing. Health club, shopping, clubs and party Agriculture, physical sports, gossip, playing cards, cinema, religious congregation. Interests Chinese, Continental foods, designer clothes, beauty salons, holiday trips Desi food, milk, bright colored clothes, jewellery , visiting towns, markets/ melas https://www.facebook.com/ialwaysthinkprettythings

22. Information Search and pre-purchase evaluation The rural consumer primary seeks and gets his information from opinion leaders and influencers, rather than the media. However, this information search is fuelled by exhibitions and road shows, because of the opportunity of personal interaction and leisurely pace of absorbing and understanding the information and its relevance. In the case of high involvement products, this information search needs to be supplemented by an out of village visit to a company outlet with an opportunity for personal interaction. The need to demonstrate individual accessories of the product and their performance also becomes critical. The ultimate clincher is always the ‘touch and feel’ experience. Anything less will not lead to a purchase. https://www.facebook.com/ialwaysthinkprettythings

23. Two levels of involvement with search. The milder search state is called heightened attention. At this level person simply becomes more receptive to information about product.At the next level is active information search. The person looks for reading material, phones friends an d engages in other activities to learn more about the product. https://www.facebook.com/ialwaysthinkprettythings

24. Urban Buying Process Rural High-involvement product, comfort, status, drive, consumer’s recognition for need Need Recognition High involvement product - productivity drives consumer’s recognition for need. First hand information from TV, Internet, Newspaper Ads/ Consults a fellow owner before dealer visit Information search First hand information from a fellow owner and nearby dealer at district town. Educated/aware understands, analyses technical specifications. At most looks for test drive Evaluation of alternatives Lower education and awareness. More importance to fellow owner and illustration of dealer. Consults opinion leader like progressive farmers. Live field demonstration. Normally buyer makes final decision. Family influences color and looks,. Drives new car home with family. Purchase decision Collective decision by buyer, adult son, mechanic and progressive village farmer. https://www.facebook.com/ialwaysthinkprettythings

25. Contd. Higher satisfaction or dissonance because of greater risk factor. Higher risk taking ability, because of wanting experimentation. After sales service no issue Post-purchase behavior Higher satisfaction, lower dissonance. Because risk-taking is lower and expectation level is low. Low risk-taking ability becauselife -attached product, lack of technical know how, low confidence on after sales service. https://www.facebook.com/ialwaysthinkprettythings

26. Diffusion of Innovation Diffusion of Innovations is a theory of how, why, and at what rate new ideas and technology spread through cultures. Elements of diffusion of innovations Innovation Rogers defines an innovation as "an idea, practice, or object that is perceived as new by an individual or other unit of adoption" . Communication channels A communication channel is "the means by which messages get from one individual to another.” Time "The innovation-decision period is the length of time required to pass through the innovation-decision process" . Rate of adoption is the relative speed with which an innovation is adopted by members of a social system. Social system "A social system is defined as a set of interrelated units that are engaged in joint problem solving to accomplish a common goal“. https://www.facebook.com/ialwaysthinkprettythings

27. Categories of Innovativeness https://www.facebook.com/ialwaysthinkprettythings

28. Thank you https://www.facebook.com/ialwaysthinkprettythings