UNDP 2008
Large Population - untapped potentials:
With more than 70% of its population residing in the
rural areas, it would not be wrong to describe
Bangladesh as a giant village.
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Rural Marketing in
Bangladesh
Fuelled by NGO activities (Micro credit and
women empowerment programs), good
monsoons and the increase in agricultural
output (by virtue of hybrid seeds), rural
Bangladesh has evolved with a large
consuming class made up of almost 40% of
the country's middle-class with 50% of the
total disposable income.
Rural Marketing in
Bangladesh
TV & Radio does not reach out to more than
55% of the population & more critical is the
press media penetration when literacy is
less than 30% but FMCGs are bought by
more than 70%.
Rural Marketing:
Definition
What is Rural?
Classification of Rural
Market
The rural market can be classified in a way similar to
urban markets.
Classification of Rural
Market
Classification of Rural
Market
(c) Services Market
Constituents: Individuals, House holds,
Local Offices, etc.
Services: Repairs, Transport, Banking,
Credit,
Insurance,
Healthcare,
Education, Communication, Power etc.
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Attractiveness of Rural
Market
Various factors which
markets viable:
have
made
rural
due
to
rural
development programs, land reforms, rural
electrification, rural communication, rural
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credit facilities.
Attractiveness of Rural
Market
Growth in Consumption
Life-style changes
Life cycle advantage Many products
have achieved near maturity in the urban
market, while in rural these are still in the
growth phase. The reason for the
variations in product life cycle stages
may be attributed to the different rates of
diffusion-adoption process in urban &
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rural markets.
Attractiveness of Rural
Market
Market growth rates higher than urban (specially
for FMCG & Durable market)
Rural marketing is not expensive
Remoteness is no longer a problem - Remoteness
is a problem but not unsolvable, the rural
distribution is not much developed for the reason,
Lack of proper infrastructure &
Lack of makers imagination & initiative.
Market Differences
Environment Difference
The Urban Environment is characterized by:
Market Differences
Social Relations
Urban Social Relations:
Individuals are less known & identified between
members in the social system
Social norms are less visible
Status is achieved
Caste influence indirect, generally subjected to
economic influence
Rural Social Relations
Individuals are better known & identified
Social norms influencing individuals are more
visible.
Status is credited, determined by birth in a family.
Caste influence is direct16& strong
Market Differences
Exposure to Marketing Motivation
Urban
Rural
Market Differences
Employment & Incomes
Urban
More
stable,
occupations
mostly
include
employment in
Govt., Business, Industry & service organizations.
White collar employees & workers are a majority
Frequency of income receipts is predictable & at
regular intervals.
Rural
Less certain work environment
Mostly large & small scale agricultural occupations
Severe seasonality of income receipts.
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of
products or services)
Acceptability (of the product proposition)
and
Awareness (of the brand)
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"How to do Marketing in
Rural?"
20
"How to do Marketing in
Rural?"
Rural Communication
There is a strong need to build reassurance
& trust about the product quality, service
support & company credentials in the
minds of the rural customers. This is best
done through the face to face below the
line touch, feel & talk modes at Haats &
Melas.
(Face
to
face
interactive
communication medium).
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"How to do Marketing in
Rural?"
Gombhira
Gombhirais a type of song
(originating in Chapai Nawabganj,
in
the
Northern
region
ofBangladesh). It is performed with
a particularly distinctive rhythm
and dance with two performers,
always personifying a man and his
maternal grandfather, discussing a
topic to raise social awareness.
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"How to do Marketing in
Rural?"
o The AICDA Model
Effective communication with rural audience requires
understanding the aspirations, fears and hopes of the
rural customers in relation to each product category:
Awareness
Interest
Conviction
Desire
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Action
END OF CHAPTER 1
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