1.

Do you think the argument of some theorists that the traditional Ps are not enough for services
marketing? Give suitable examples to prove your point.
Define service marketing??
Ans: Services marketing is a sub-field of marketing, which can be split into the two main areas of goods
marketing (which includes the marketing of fast moving consumer goods (FMCG) and durables) and
services marketing. Services marketing typically refer to both business to consumer (b2c) and business to
business (b2b) services, and include marketing of services such as telecommunications services, financial
services, all types of hospitality services, car rental services, air travel, health care services and professional
services.
Services are (usually) intangible economic activities offered by one party to another. Often time-based,
services performed bring about desired results to recipients, objects, or other assets for which purchasers
have responsibility. In exchange for money, time, and effort, service customers expect value from access to
goods, labor, professional skills, facilities, networks, and systems; but they do not normally take ownership
of any of the physical elements involved.
Explanation of 4ps??
Ans: product the product in service marketing mix is intangible in nature. Like physical products such as
soap or a detergent, service products cannot be measured. Tourism industry or the education industry can
be an excellent example. At the same time service products are heterogeneous, perishable and cannot
be owned. The service product thus has to be designed with care. Generally service blue printing is done to
define the service product. For example a restaurant blue print will be prepared before establishing a
restaurant business. This service blue print defines exactly how the product (in this case the restaurant) is
going to be.
Place place in case of services determine where is the service product going to be located. The best place
to open up a petrol pump is on the highway or in the city. A place where there is minimum traffic is a
wrong location to start a petrol pump. Similarly a software company will be better placed in a business hub
with a lot of companies nearby rather than being placed in a town or rural area.
Promotion promotions have become a critical factor in the service marketing mix. Services are easy to
be duplicated and hence it is generally the brand which sets a service apart from its counterpart. You will
find a lot of banks and telecom companies promoting them rigorously. Why is that? It is because
competition in this service sector is generally high and promotions are necessary to survive. Thus banks, it
companies, and dotcoms place themselves above the rest by advertising or promotions.
Pricing pricing in case of services is rather more difficult than in case of products. If you were a
restaurant owner, you can price people only for the food you are serving. But then who will pay for the nice
ambience you have built up for your customers? Who will pay for the band you have for music? Thus these
elements have to be taken into consideration while costing. Generally service pricing involves taking into
consideration labor, material cost and overhead costs. By adding a profit markup you get your final service
pricing

EXPLANATION OF ADDITIONAL 3 PS?

Ans: People People is one of the elements of service marketing mix. People define a service. If you have
an it company, your software engineers define you. If you have a restaurant, your chef and service staff
defines you. If you are into banking, employees in your branch and their behavior towards customers
define you. In case of service marketing, people can make or break an organization. Thus many companies
nowadays are involved into specially getting their staff trained in interpersonal skills and customer service
with a focus towards customer satisfaction. In fact many companies have to undergo accreditation to show
that their staff is better than the rest. Definitely an USP in case of services.
Process service process is the way in which a service is delivered to the end customer. Lets take the
example of two very good companies mcdonalds and fedex. Both the companies thrive on their quick
service and the reason they can do that is their confidence on their processes. On top of it, the demand of
these services is such that they have to deliver optimally without a loss in quality. Thus the process of a
service company in delivering its product is of utmost importance. It is also a critical component in the
service blueprint, wherein before establishing the service, the company defines exactly what should be the
process of the service product reaching the end customer.
Physical evidence the last element in the service marketing mix is a very important element. As said
before, services are intangible in nature. However, to create a better customer experience tangible elements
are also delivered with the service. Take an example of a restaurant which has only chairs and tables and
good food, or a restaurant which has ambient lighting, nice music along with good seating arrangement and
this also serves good food. Which one will you prefer? The one with the nice ambience. Thats physical
evidence. Several times, physical evidence is used as a differentiator in service marketing. Imagine a
private hospital and a government hospital. A private hospital will have plush offices and well-dressed
staff. Same cannot be said for a government hospital. Thus physical evidence acts as a differentiator.

2. What is sales promotion? Explain any eight tools of sales promotion directed at consumers.

DEFINITION OF SALES PROMOTION

Sales promotion is one level or type of marketing aimed either at the consumer or at the distribution
channel (in the form of sales-incentives). It is used to introduce new product, clear out inventories, attract
traffic, and to lift sales temporarily. It is more closely associated with the marketing of products than of
services. The American Marketing Association (AMA), in its Web-based "Dictionary of Marketing Terms,"
defines sales promotion as "media and nonmedia marketing pressure applied for a predetermined, limited
period of time in order to stimulate trial, increase consumer demand, or improve product availability."
Business pundits and academic students of business have developed almost fancifully sophisticated views
of sales promotion. In down-to-earth terms it is a way of lifting sales temporarily by appealing to economic
motives and impulse-buying behavior. The chief tools of sales promotion are discounts ("sales"),
distribution of samples and coupons, the holding of sweepstakes and contests, special store displays, and

offering premiums and rebates. All of these techniques require some kind of communication. Thus sales
promotion and advertising are difficult to distinguish.
EIGHT TOOLS OF SALES PROMOTION DIRECTED AT CONSUMERS
To increase the sale of any product manufactures or producers adopt different measures like sample, gift,
bonus, and many more. These are known as tools or techniques or methods of sales promotion. Let us
know more about some of the commonly used tools of sales promotion.
(i) Free samples: You might have received free samples of shampoo, washing powder, coffee powder, etc.
while purchasing various items from the market. Sometimes these free samples are also distributed by the
shopkeeper even without purchasing any item from his shop. These are distributed to attract consumers to
try out a new product and thereby create new customers. Some businessmen distribute samples among
selected persons in order to popularize the product. For example, in the case of medicine free samples are
distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers.
(ii) Premium or Bonus offer: A milk shaker along with Nescafe, mug with Bournvita, toothbrush with 500
grams of toothpaste, 30% extra in a pack of one kg are the examples of premium or bonus given free with
the purchase of a product. They are effective in inducing consumers to buy a particular product. This is also
useful for encouraging and rewarding existing customers.
(iii) Exchange schemes: It refers to offering exchange of old product for a new product at a price less than
the original price of the product. This is useful for drawing attention to product improvement. Bring your
old mixer-cum-juicer and exchange it for a new one just by paying Rs.500 or exchange your black and
white television with a colour television are various popular examples of exchange scheme.
(iv) Price-off offer: Under this offer, products are sold at a price lower than the original price. Rs. 2 off on
purchase of a lifebouy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on cooler
etc. are some of the common schemes. This type of scheme is designed to boost up sales in off-season and
sometimes while introducing a new product in the market.
(v) Coupons: Sometimes, coupons are issued by manufacturers either in the packet of a product or through
an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to
the retailer while buying the product. The holder of the coupon gets the product at a discount. For example,
you might have come across coupons like, show this and get Rs. 15 off on purchase of 5 kg of Annapurna
Atta. The reduced price under this scheme attracts the attention of the prospective customers towards new
or improved products.
(vi) Fairs and Exhibitions: Fairs and exhibitions may be organized at local, regional, national or
international level to introduce new products, demonstrate the products and to explain special features and
usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a
reasonable discount. International Trade Fair in New Sales Promotion 119 Delhi at Pragati Maidan, which
is held from 14th to 27th November every year, is a well-known example of Fairs and Exhibitions as a tool
of sales promotion.
(vii) Trading stamps: In case of some specific products trading stamps are distributed among the customers
according to the value of their purchase. The customers are required to collect these stamps of sufficient
value within a particular period in order to avail of some benefits. This tool induces customers to buy that
product more frequently to collect the stamps of required value.
(viii) Scratch and win offer: To induce the customer to buy a particular product scratch and win scheme is
also offered. Under this scheme a customer scratch a specific marked area on the package of the product

and gets the benefit according to the message written there. In this way customers may get some item free
as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special
tour arranged by the manufacturers.
(ix) Money Back offer: Under this scheme customers are given assurance that full value of the product will
be returned to them if they are not satisfied after using the product. This creates confidence among the
customers with regard to the quality of the product. This technique is particularly useful while introducing
new products in the market.
3. Define Environmental scanning. Explain Delphi technique and Scenario Building technique of
Environmental Scanning.
DEFINITION OF ENVIRONMENTAL SCANNING
Environmental scanning is one of the essential components of the global environmental
analysis. Environmental monitoring, environmental forecasting and environmental assessment complete the
global environmental analysis. The global environment refers to the macro environment which comprises
industries, markets, companies, clients and competitors. Consequently, there exist corresponding analyses
on the micro-level. Suppliers, customers and competitors representing the micro environment of a company
are analyzed within the industry analysis.
Environmental scanning can be defined as the study and interpretation of the political, economic, social
and technological events and trends which influence a business, an industry or even a total market.[2] The
factors which need to be considered for environmental scanning are events, trends, issues and expectations
of the different interest groups. Issues are often forerunners of trend breaks. A trend break could be a value
shift in society, a technological innovation that might be permanent or a paradigm change. Issues are less
deep-seated and can be 'a temporary short-lived reaction to a social phenomenon'.[3] A trend can be defined
as an environmental phenomenon that has adopted a structural character.
Delphi technique
The Delphi method is a structured communication technique or method, originally developed as a
systematic, interactive forecasting method which relies on a panel of experts. The experts answer
questionnaires in two or more rounds. After each round, a facilitator or change agent.provides an
anonymous summary of the experts forecasts from the previous round as well as the reasons they provided
for their judgments. Thus, experts are encouraged to revise their earlier answers in light of the replies of
other members of their panel. It is believed that during this process the range of the answers will decrease
and the group will converge towards the "correct" answer. Finally, the process is stopped after a predefined
stop criterion (e.g. number of rounds, achievement of consensus, and stability of results) and
the mean or median scores of the final rounds determine the results.
Delphi is based on the principle that forecasts (or decisions) from a structured group of individuals are
more accurate than those from unstructured groups. The technique can also be adapted for use in face-toface meetings, and is then called mini-Delphi or Estimate-Talk-Estimate (ETE). Delphi has been widely
used for business forecasting and has certain advantages over another structured forecasting
approach, prediction markets

The following key characteristics of the Delphi method help the participants to focus on the issues at hand
and separate Delphi from other methodologies:
Anonymity of the participants
Usually all participants remain anonymous. Their identity is not revealed, even after the completion of the
final report. This prevents the authority, personality, or reputation of some participants from dominating
others in the process. Arguably, it also frees participants (to some extent) from their personal biases,
minimizes the "bandwagon effect" or "halo effect", allows free expression of opinions, encourages open
critique, and facilitates admission of errors when revising earlier judgments.
Structuring of information flow
The initial contributions from the experts are collected in the form of answers to questionnaires and their
comments to these answers. The panel director controls the interactions among the participants by
processing the information and filtering out irrelevant content. This avoids the negative effects of face-toface panel discussions and solves the usual problems of group dynamics.

Regular feedback
Participants comment on their own forecasts, the responses of others and on the progress of the panel as a
whole. At any moment they can revise their earlier statements. While in regular group meetings participants
tend to stick to previously stated opinions and often conform too much to the group leader; the Delphi
method prevents it.
Role of the facilitator
The person coordinating the Delphi method is usually known as a facilitator or Leader, and facilitates the
responses of their panel of experts, who are selected for a reason, usually that they hold knowledge on an
opinion or view. The facilitator sends out questionnaires, surveys etc. and if the panel of experts accept,
they follow instructions and present their views. Responses are collected and analyzed, and then common
and conflicting viewpoints are identified. If consensus is not reached, the process continues through thesis
and antithesis, to gradually work towards synthesis, and building consensus.
SCENARIO BUILDING TECHNIQUE
Scenario building is an instrument that aids decision-makers by providing a context for planning and
programming, lowering the level of uncertainty and raising the level of 5 knowledge in relation to the
consequences of actions which have been taken, or are going to be taken, in the present.
The prime aim of scenarios and scenario building is to enable decision-makers to detect and explore all, or
as many as possible, alternative futures so as to clarify present actions and subsequent consequences. They
should, thus, be prevented from making strategic decisions before they have done some strategic thinking!
6 According to Michel Godet (1987), scenarios should aim to detect the key variables that emerge from the
relationship between the many different factors describing a particular system, especially those relating to
the particular actors and their strategies. In doing so, they provide a context for thinking clearly about the

otherwise impossible complex array of factors that affect any decision; give a common language to
decision-makers for talking about these factors and encourage them to think about a series of what-if
stories; help lift the blinkers that limit creativity and resourcefulness; and lead to organisations thinking
strategically and continuously learning about key decisions and priorities (Schwartz, 1996). Scenarios are
said to deal with the core problems of a given futures study (Coates, 1996). Individual trends do not
automatically come together to create useful pictures of the future applicable to planning. A primary
purpose of scenario building, therefore, is to create holistic, integrated images of how the future might
evolve. These images, in turn, become the context for planning, a testing ground for ideas, or the stimulus
for new development. A scenario may further be used to describe a future state, and thereby form the basis
for policy analysis. Conversely, the scenario may tell a complete story including the possible or probable
policy actions and outcomes
Ultimately, however, the purpose is not just about constructing scenarios, it is about informing decisionmakers and influencing, as well as enhancing, decision-making

Augment understanding by helping to see what possible futures might look like, how they might
come about, and why this might happen.

Produce new decisions by forcing fresh considerations to surface.

Reframe existing decisions by providing a new context within which they are taken.

Identify contingent decisions by exploring what an organisation might do if certain circumstances

arise.

In this way, scenario building can create a learning organisation. But that organisation must have the will,
the insight and the stamina to undertake such a learning process, as well as making available the resources
to make the necessary investment to develop the skills required to construct and employ those scenarios to
identify, analyse and manage uncertainty. Good scenarios, moreover, always challenge and surprise - bad
ones merely confirm current conceptions and perpetuate personal prejudices.
Types Many valid methods of building scenarios exist. At the risk of oversimplification, however, scenario
construction can be divided into two basic forms:
1. Future Backward - several significant futures are selected and attempts are made to discover the paths that lead to
them
2.Future Forward - based on an analysis of present forces and their likely evolution several sets of plausible futures
are projected.

4. Personal selling focuses in on personal or one to one selling. It involves an individual salesman
or a sales team establishing and building a profitable relationship with customers over a period of
time through a series of steps. What is personal selling? Explain the steps in the personal selling
process which helps in successful sales.
Definition of Personal Selling
Personal selling is a promotional method in which one party (e.g., salesperson) uses skills and techniques
for building personal relationships with another party (e.g., those involved in a purchase decision) that
results in both parties obtaining value. In most cases the "value" for the salesperson is realized through the
financial rewards of the sale while the customers "value" is realized from the benefits obtained by

consuming the product. However, getting a customer to purchase a product is not always the objective of
personal selling. For instance, selling may be used for the purpose of simply delivering information.
Because selling involves personal contact, this promotional method often occurs through face-to-face
meetings or via a telephone conversation, though newer technologies allow contact to take place over the
Internet including using video conferencing or text messaging (e.g., online chat).
Steps in personal Selling process Personal Selling consists of the following steps. 1. Pre-sale preparation:
The first step in personal selling is the selection, training and motivation of salespersons. The salespersons
must be fully familiar with the product, the firm, the market and the selling techniques. They should be
well-informed about the competitor's products and the degree of competition. They should also be
acquainted with the motives and behavior of prospective buyers.
Steps in personal Selling process

Personal Selling consists of the following steps.

1. Pre-sale preparation: The first step in personal selling is the selection, training and motivation of
salespersons. The salespersons must be fully familiar with the product, the firm, the market and the selling
techniques. They should be well-informed about the competitor's products and the degree of competition.
They should also be acquainted with the motives and behavior of prospective buyers.
2. Prospecting: It refers to locating or searching out prospective buyers who have the need for the product
and the ability to buy it. Potential customers may be spotted through observation, enquiry and analysis of
records of existing customers. Social contacts, business associations and dealers can be helpful in the
identification of potential buyers.
3. Approaching: Before calling on the prospects, the salesperson should fully learn their number, needs,
habits, spending capacity, motives, etc. Such knowledge helps in selecting the right sales appeal. After such
learning, the salesperson should approach the customer in a polite and dignified way. He should introduce
himself and his product to the customer. He should greet the customer with a smile and make him feel at
home. He should introduce himself and his product to the customer. In case he is busy with some other
customer, he should assure the new customer that he would be attended very soon. The salesperson has to
be very careful in his approach as the first impression is the last impression.
4. Presentation: For this purpose, the salesperson has to present the product and describe its features in
brief. The presentation should be matched with the attitude of the prospect so that the salesman can
continuously hold his attention and create interest in the product.
5. Demonstration: In order to maintain customer's interest and to arouse his desire, the sales-person must
display and demonstrate the product. He has to explain the utility and distinctive qualities of the product so
that the prospect realizes the need for the product to satisfy his wants. He should not be in a hurry to
impress the customer and should avoid controversy. He may suggest uses of the product and may create an
impulsive urge to possess the article by appealing to human instincts.
6. Handling objections: A sale cannot be achieved simply by creating interest and desire. Every customer
wants to make the best bargain for the money he is spending. Presentation and demonstration of the
product are likely to create doubts and questions in his mind. The salesman should clear all doubts and

objections without entering into a controversy and without losing his temper. Testimonials, money-back
guarantee, tact and patience are popular means of winning over s hesitant buyers. The salesman should
convince the customer that he is making the best use of his money by purchasing the product. For this
purpose, the salesman should prove the superiority of his product over the competitive products. He should
not lose patience if the customer puts too many queries and takes time in arriving at any decision. If the
customer does not buy even after meeting rejections, the salesman should let him go without showing
temper. He must believe in the universal rule that the customer is always right.
7. Closing the sale: This is the climax or critical point in the personal selling process. Completing the sale
seems to be an easy task but inappropriate handling of the customer can result in loss of sale. The salesman
should not force the deal but let the customer feel that he has made the final decision. He should guide the
customer in making the choice without imposing his own view. Some adjustment in price or other
concession may sometimes be necessary for a successful closing. The salesman should show the same
interest in the customer which he exhibited during approach stage. Sales should be closed in a cordial
manner so that the customer feels inclined to visit the shop again. In closing the sale, the article should be
packed properly and handed over to the customer with speed and accuracy. Once the customer has
purchased the article, the salesman should show and suggest an allied product. For instance, he may
suggest socks, ties, handkerchiefs, vests, etc., to a customer purchasing a shirt. This is known as additional
sales and requires great skill and tact.
8. Post-sale follow-up: It refers to the activities undertaken to ensure that the customer is satisfied with the
article and the firm. These activities include installation of the products, checking and ensuring its smooth
performance, maintenance and after-sale service. It helps to secure repeat sales identify additional
prospects and to evaluate salesman's effectiveness.
5. What is Buying Centre? Explain the seven roles of Buying Centre and also specify the role of
functional departments in the purchase process.
BUYING CENTRE
A group of individuals within an organization or family that make decisions about
a substantial purchase. Data about how a targeted buying center might react to a new product is an
important piece of information that can be used by a business to enhance its marketing efforts.
Also called a decision making unit.
SEVEN ROLES OF BUYING CENTRE
The individuals in the Buying Center can have one or more of the following roles:
Initiator: This is ideally the person who will actually use the product or service and feels the need. So a
machine operator might initiate the requirement for a particular tool or a salesperson might show interest in
getting some leads from website visitors. Frequently however, the user may have no knowledge at all that a
requirement has been initiated! The latter can happen when say a consultant suggests a purchase.
Decision maker: in the above examples would be the Production manager who must request
Procurement/Supply Chain and Sales Manager who might ask the website team/IT and not even contact the
Supply Chain folks.

Controller/Finance: Should be able to confirm that there is money in the budget for the purchase.
Purchasing Agent: This could be a Commodity Manager/Supply Manager in the Supply Chain function
who for higher value items develops an RFP, seeks bids, negotiates, and places orders. In other cases,
where if the item or service is specialized the order is placed based on the decision maker's inputs.
Influencers: are hard to identify even by the supply manager as they could be users, departments like fire
and safety who may weigh in or the hard to believe example of the Chairman's wife who likes a particular
Ad pitch among several Ad agency pitches.
Gatekeepers: could be the secretary who does not transfer calls or an engineer who does well-meaning
edits to whatever suppliers propose. The edits can harm the proposal but the engineer is a trainee who is
helping the Supply Manager co-ordinate and this fact is unknown to the bidders.
ROLE OF FUNCTIONAL DEPARTMENTS
Purchasing departments are responsible for procuring supplies. Until the 1960s, this largely involved orderplacing and was primarily a clerical position. However, as the development of strategic planning and the
advent of just-in-time purchasing made purchasing a more crucial business function. Today, purchasing is
often referred to as supply chain management and the purchasing department has taken on a larger and
more vital business role.
Supply Sourcing
One of the main roles of the purchasing department is to source supplies and parts, and then purchase them.
In large companies, this may also include deciding whether to make the item in-house. Purchasing
departments often work alongside product development teams to source materials and determine cost of the
finished product. Purchasing departments may use trade publications to source suppliers, or go straight to
the manufacturer. Finding the correct item at the correct price can be difficult, and purchasing departments
may also work to assist suppliers in manufacturing the item needed. This can involve providing
considerable assistance to the supplier.
Bidding
For items needed in bulk, or specialist items, purchasing departments often use competitive bidding to
chose a supplier. The department will then be responsible for all aspects of the bidding process. For
example, when the purchasing department of the Port of Houston chooses a supplier, it publishes a public
notice, writes detailed instructions on the bidding process, accepts companies onto the approved list of
bidders, handles bid security money, opens and reads the bids publicly and makes a recommendation on
which bid to accept.
Supplier Management
In addition to finding supplies and negotiating contracts for the supplies, purchasing departments are also
responsible for monitoring the supplier's performance. Purchasing departments must evaluate the supplier's
performance and quality control. This can include monitoring delivery times, quality, cost and
performance. For suppliers in other countries, this can also mean monitoring working conditions and
workers rights. Large firms and public organizations often certify suppliers once they are shown to meet
performance targets. This may involve a training and education program, and detailed inspection of
suppliers.
Cost Control
Purchasing departments, especially in government agencies, may also be responsible for maintaining strict
cost control. For example, in a 2010 article on hotel purchasing specialist site Food Buyers Network, John

Schalow suggests that to get the best price, purchasing departments need to ensure suppliers themselves get
a lower cost from distributors and manufacturers. This can be done by increasing delivery size, paying on
time, ordering online and making sure suppliers use the best practice.
Legal Controls
Purchasing departments must also be aware of the laws applying to purchasing. For private companies, this
is primarily contract law, but for government bodies, there may be state and federal laws regulating
purchasing. For example, school district purchasing departments in Texas must know that it is a state
criminal offense to avoid using competitive purchasing when it is required; and that while federal law
requires a bidding process to be used for all child nutrition purchases more than $100,000, Texas state law
requires a bidding process for any purchase over $25,000.
6. Describe some of the strategies for effective marketing and advertising in rural market. Also
explain the innovative use of media in rural market.
NATURE OF THE RURAL MARKET
The Concept of Rural Marketing means different things to different persons. This confusion leads to distorted
understanding of the problems of rural marketing poor diagnosis and, more often than not, poor prescriptions. Rural
marketing and urban marketing are identical as regards basic marketing structure. However, rural markets and rural
marketing have special features and dilemmas as compared to urban markets. The rural markets offer a great scope
for a concentrated marketing effort because of the recent increase in the rural incomes and the likelihood that such
incomes will increase faster because of better production and higher prices for agricultural commodities. The Indian
rural market with its vast size and demand base offers great opportunities to marketers. Two thirds of countries
consumers live in rural areas and almost half of the national income is generated here. It is only natural that rural
markets form an important part of the total market of India. Our nation is classified in around 450 districts, and
approximately 630000 villages, which can be sorted in different parameters such as literacy levels, accessibility,
income levels, penetration, distances from nearest towns, etc. The rural markets dominate Indian marketing scene
and need special attention for the expansion of marketing activities and also for providing better life and welfare to
the rural people. Given the development, which has taken place in the rural areas under the five- year plans and other
special programmes, today the rural market offers a vast untapped potential. Development programs in the field of
agriculture and allied activities, health education, communication, rural electrification, etc have improved the
lifestyles of poor and the illiterate and some market agencies forecast the rural demand will superseded the urban
demand in the near future. Once the urban markets getting saturated for several categories of consumer goods and
with rising rural incomes, marketing executives are fanning out and discovering the strengths of the large rural
markets as they try to enlarge their markets

STRATEGIES
The rural market has changed drastically in the past one decade. A decade ago, the rural market was more
unstructured and was not a prioritized target location for corporate. Very few companies, mainly the agro-based ones,
were concentrating in these markets. There is no innovative strategies and promotional campaigns. A distribution
system did exist, but was feeble. Illiteracy and lack of technology were the other factors leading to the poor reach of
products and lower level of awareness amongst villagers. Gradually, corporate realized that there was saturation, stiff
competition and clutter in the urban market, and a demand was building up in rural areas. Seeing the vast potential of
75 per cent Indians living in rural areas, they started focusing on these unexplored, highpotential areas. Companies
came up with special rural products, like Chic Shampoo sachets @ Re 1, Parle G Tikki Packs @ Rs 2, customized
TVs by LG, Shanti Amla oil by Marico. All these brought positive results for them. Also, campaigns like Project
Bharat by Hind Lever, where trials were generated across India in 1999, saw 30 per cent of its total personal products
growing to contribute 50 per cent five years down the line. In the first phase, they covered 11.5 million rural
households and increased awareness by 41 per cent. Project Jagruti in the second phase by Colgate Palmolive India
was a village consumer contact programme in 2001. It increased penetration of Colgate Dental Cream by doubling
the villages from 33,000 to 55,000, reaching to a million houses. Such projects lead to increased penetration of
products in rural areas.
Here are some of the strategies may adopt by Companies for Rural Markets for their products and Services:

BEST PROMOTION AND QUALITY PERCEPTION

Companies with new technology are properly capable to communicating its products and services to their customer.
There is a trade-off between Quality a customer perceives and a company wants to communicate. Thus, this
positioning of technology is very crucial. The perception of the Indian about the desired product is changing. Now
they know the difference between the products and the utilities derived out of it. As a rural Indian customer always
wanted value for money with the changed perception, one can notice difference in current market scenario especially
in case of services given by the companies.
EASY-WAY COMMUNICATION ESPECIALLY FOR RURAL MARKET
The companies have realized the importance of proper communication in local language for promoting their products
especially in rural market. They have started selling the concept of quality with proper communication and easily
understandable way of communications. Their main focus is to change the Indian customer outlook about quality.

CHANGING PATTERN OF RURAL CUSTOMERS

Nowsday villagers are constantly looking forward for new branded products and good services. Indian customer in
rural market was never price sensitive, but they want value for money. They are ready to pay premium for the
product if the product is offering some extra utility for the premium. Regards for Cultural and Social Values
Companies have recognized that social and cultural values have a very strong hold on the people in rural markets.
Cultural values play major role in deciding what to buy. Furthermore rural people are emotional and sensitive. Thus,
to promote products and services we should regard their social and cultural values.

FOCUS ON CUSTOMER REQUIREMENT

Every customers want value for their money. They do not see any value additional associated with the products. They
aim for the basic functionality. However, if the sellers provide frills free of costthey are happy with that. They are
happy with such a high technology that can fulfill their need. For example Nokia and Reliance has launched a simple
product, which has captured the market. Promoting Products and Services with Right Person in Case of Celebrity
Endorsement Companies are picking up Indian models, actors for advertisements as this helps them to show
themselves as an Indian company. Diana Hyden and Shahrukh Khan are chosen as a brand ambassador for MNC
quartz clock maker "OMEGA" even though when they have models like Cindy Crawford. Another example Penelope
Cruz endorses for Pantene Shampoo but its more effective with Indian Models and Actors because peoples know
them very well.

PATRIOTISM WITH PRODUCTS AND SERVICES

Companies are associating themselves with India by talking about India, by overtly saying that they are Indian and
they are more patriotic. Using Indian Tricolor while doing advertisement during Independence Day and Republic
Day like Nokia has designed a new cellular phone 5110, with the India tricolor and a ringing tone of "Sare Jahan se
achcha".

PROMOTING INDIAN SPORTS TEAM

Companies are promoting Indian sports teams so that they can associate themselves with India. With this, they can
influence Indian mindset like during Cricket World Cup. For example Hero Honda has launched a campaign "Dhak
Dhak Go" Similarly, Other companies has also launched a campaign during world cup. Product/Services Campaign
like Be Indian Companies are now talking about Be Indian. It is a normal tendency of an Indian to try to associate
him/her with the product. If he/she can visualize himself/herself with the product, he /she become loyal to it.

DEVELOPING SPECIFIC PRODUCTS FOR SPECIFIC SEGMENT

Many companies are developing rural-specific products. Keeping into consideration the requirements, a firm
develops these products. Electrolux is working on a made-for India fridge designed to serve basic purposes: chill
drinking water, keep cooked food fresh, and to withstand long power cuts. In Service Sector like Insurance they are
focusing on Micro insurance products for rural segments.

EFFECTIVE MEDIA MODES OF COMMUNICATION

Traditional media or the modern media used for rural marketing is being used by companies. The traditional media
include melas, puppetry, folk theatre etc. while the modern media includes TV, radio, e-chaupal. LIC uses puppets to
educate rural masses about its insurance policies. Govt of India uses puppetry in its campaigns to press ahead social
issues. ITC's e-chaupal (chaupal is the common place where villagers gather) has been the most elaborate and
extensive venture in this field so far. Conceived by ITC's international business division and launched in 2000, the e-

chaupal project has since grown to around 2,700 chaupals covering a population of around 1.2 million in five states Madhya Pradesh, Karnataka, Andhra Pradesh, Uttar Pradesh and Maharashtra.

INNOVATIVE USE OF MEDIA

A lot of innovative mediums are used in rural advertising and marketing. Some of the most striking
ones are:
Puppetry
Puppetry is the indigenous theatre of India. From time immortal it has been the most popular form
and well-appreciated form of entertainment available to the village people.
It is an inexpensive activity. The manipulator uses the puppets as a medium to express and
communicate ideas, values and social messages.
Life Insurance Corporation of India used puppets to educate rural masses about Life Insurance;
enlisting the help of the literacy house in Lucknow.
These plays were shown to the audience in villages in UP, Bihar, & MP. The number of inquires at
local Life Insurance Companies during the period immediately following the performance was
compared with normal frequency and found to be considerable higher.
The field staff of the corporation also reported a definite impact on the business.
Folk Theater
Folk theaters are mainly short and rhythmic in form. The simple tunes help in informing and
educating the people in informal and interesting manner. It has been used as an effective medium
for social protest against injustice, exploitation and oppression.
Government has used this media for popularizing improved variety of seeds, agricultural
implements, fertilizer etc. Punjab Agricultural University produced Two Audio Cassettes.
A) Balliye Kanak Biye - Wheat Cultivation.
B) Khiran Kepah Narme - Cotton Cultivation.
Both were well received by farmers.
BBLIL used Magician quite effectively for launch of Kadak Chhap Tea in Etawah.
Demonstration:
"Direct Contact" is a face-to-face relationship with people individually and with groups such as the
Panchayats and other village groups. Such contact helps in arousing the villager's interest in their
own problem and motivating them towards self-development.
Demonstration may be
A. i. Method demonstration
ii. Result demonstration
B. i. Simple Demonstration
ii. Composite Demonstration
In result demonstration, help of audio -visual media can add value. Asian Paints launched Utsav
range by painting Mukhiya's house or Post office to demonstrate that paint does not peel off.
Wall Paintings
Wall Paintings are an effective and economical medium for advertising in rural areas. They are
silent unlike traditional theatre .A speech or film comes to an end, but wall painting stays as long as
the weather allows it to.
Retailer normally welcomes paintings of their shops, walls, and name boards. Since it makes the
shop look cleaner and better.
Their shops look alluring and stand out among other outlets. Besides rural households shopkeepers
and panchayats do not except any payment, for their wall to be painted with product messages.
To get one's wall painted with the product messages is seemed as a status symbol. The greatest

advantage of the medium is the power of the picture completed with its local touch.
The images used have a strong emotional association with the surrounding, a feat impossible for
even a moving visual medium like television, which must use general image to cater to greatest
number of viewers.