Pricing strategies in rural marketing pdf

In order to acquire new customers, increase the clv customer lifetime value over time, and reduce customer churn, you need to actively manage your customer relationships. Choosing the right price for a product will allow you to maximize profit margins if thats what you want to do. The purpose of this study is to investigate the effects of marketing strategies on organizational performance. In addition, it also includes the marketing in the rural areas. From 55 to 58 % of the average urban income in 199495, the average rural income has gone up to 63 to 64% by 2001 2002 and touched almost 66% in 200405.

Coming to the frame work of rural marketing, rural marketing broadly involves reaching the rural customer, understanding their needs and wants, supply of goods and services to meet their requirements, carrying out after sales service that leads to customer satisfaction and repeat purchasesales. A recent example is the strategy of apple to dominate in the mp3 pla yer market. Since pricing strategies influence has an impact on market share, performance and growth of the firm, every firm has its separate pricing policy or strategy for its products. Pricing as part of the marketing plan a thorough, written marketing plan helps entrepreneurs evaluate the market potential for a product, identify target audiences and develop strategies, including pricing, to successfully evaluate and access the market and meet business goals. Pricing strategies in rural marketing management paradise. Definition a pricing method in which a fixed sum or a percentage is added to the total cost of producing and selling a product to arrive at its selling price. There are various pricing strategies which are adopted by the marketer like skimming pricing strategy, loss leader. Dec 17, 2017 walmart is the largest retailer in terms of revenues and number of employees globally. This strategy is combined with the other marketing pricing strategies that are the 4p strategy products, price, place and promotion economic patterns, competition, market demand and finally product characteristic. Pricing strategies, especially in case of rural marketing are directly related to the products attributes like its design, functionality, packaging and other features.

We will discuss dynamic pricing, goppar, differential pricing and price positioning strategies. The product packaging and presentation also keeps the price low to. Introduction to the pricing strategy and practice liping jiang, associate professor copenhagen business school 14th december, 2016 open seminar of the blue innoship project no. As a result of the above analysis, we are in a position to define rural marketing rural marketing can be seen as a function which manages all those activities. Rural marketing plan free download as powerpoint presentation. Importance of pricing strategy in marketing acquire new customers and reduce customer churn using innovative pricing and packaging strategies. In order to acquire new customers, increase the clv customer lifetime value. Any of these methods could be used not only to set an initial price but also to establish longterm pricing levels.

In our next few articles we will be talking about hotel pricing strategies within your revenue management plan. Positioning strategy plays an important role in companys success. Marketers need to understand the psychology of the rural. Maximising revenue in the hotel industry relies on the implementation of the right pricing strategies, which is an important part of your revenue management strategy. Rural marketing environment, organisation and functions of agricultural marketing, marketing of consumer durables and nondurables, attitudes and beliefs of rural markets structure, marketing of agricultural inputs, agricultural marketing, classification of products and economic development, role of warehousing, processing of select.

Place refers to distribution of the product and includes distribution channel, area coverage, channel remuneration, warehousing, inventories. To discuss the issues and challenges of rural marketing. The first question we tackle is how many prices does your hotel need to offer. Competitive pricing setting a price based on what the competition charges. Marketing strategy of walmart walmart marketing strategy. This pricing strategy is a nofrills approach that involves minimizing marketing and production expenses as much as possible. The commonly followed pushup sales promotion strategies include. Such incomes will increase faster because of better production and higher prices for agricultural commodities. In competitive market, maximize profits along with retaining your consumer you have to make sure you choose the right pricing strategies. Walmarts marketing strategy has positioned itself as a company offering products at the lowest price. The concept of rural marketing differs from different things to different persons who are active participants in marketing. This confusion leads to distorted understanding of the problems of rural marketing and, more often perceptions. Example 1 in this case, let us take the example of a region which is far off from central warehouse of the firm.

However, rural markets and rural marketing have special features. The pricing strategy for rural market will depend upon the scope for reducing the price of the product to suit the rural incomes and at the same time not. These five points make product pricing an important and major function of marketing manager. Contrary to popular belief, pricing strategies arent always about profit margins. Place refers to distribution of the product and includes distribution channel, area coverage, channel remuneration, warehousing, inventories, banking and transportation. In the marketing mix, price has its own place which. Pricing strategies are linked to product strategies. This is why this paper starts by presenting basic pricing concepts. Therefore, the function of marketing strategy is to determine the nature, strength, direction, and interaction between the marketing mix elements and the environmental factors in a particular situation. Price is a very important part of the marketing mix as it can affect both the supply and demand of the firms products. These approaches, though valuable tend to surround pricing with an almost mystical aura. Nov 09, 2012 pricing price is a major element of the marketing mix. Generally, pricing strategies include the following five strategies.

Marketing strategies and the performance of small and medium enterprises in akwa ibom state, nigeria ebitu, ezekiel tom, ph. Rural marketing represented the emergent distinct activity of attracting and serving rural markets to fulfil the needs and wants of persons, households and occupations of rural people. Rural market is price sensitive but also appreciates quality. For rural market, it will be ideal to think of strategies from the marketing mix point of view, main strategies are related to product, price, place and promotion. Pricing is one of the trickiest issues in marketing as it requires understanding the product and understanding the market. As the rural marketing is a two way process, this article attempts to highlight issues and challenges associated with the rural marketing strategies. Promotion strategies in rural marketing management paradise. Typically, this requires the use of forecasting to understand and anticipate demand, as well as a willingness to adjust room rates strategically, make use of cross selling and. Pricing a product is one of the most important aspects of your marketing strategy. Chapter 16 pricing concepts and strategies learning. Oddeven and prestige pricing multipleunit pricing everyday low prices edlp marketing essentials chapter 26, section 26. Pricing strategy is a way of finding a competitive price of a product or a service. Used by a wide range of businesses, including generic food suppliers and discount retailers, economy pricing aims to attract the most priceconscious consumers. Mostly, major part of rural market holds a very divergent pattern of reacting to marketing.

Product strategies for rural market indian perspective a prime need for any firm to emerge as a strong player in the rural market is by carefully identifying gaps in the rural market and crafting the right product offering for consumers. Acropdf a quality pdf writer and pdf converter to create pdf files. Costplus pricing simply calculating your costs and adding a markup. How teachers and students can make the quick transition to online learning. Rather, it could be said to be the marketing activity involved with capturing, or harvesting, the value created by the other types of marketing activities. Pdf selection and application of pricing strategies in rural tourism. Rural marketing promotion strategies tutorialspoint. Apple based its marketing strategy on ipod quality and aesthetics and won the leadership in the domain despite the. Pricing is a determinant of the market demand for the product. Word of mouth is an important message carrier in the rural areas and.

Pricing as an element of the marketing mix 5 pricing, on the other hand, is not primarily concerned with creating value. A g guide p for direct farm marketers valuea a entrepreneurs. A study of nigeria bottling company kaduna, including production strategy, pricing strategy, promotion strategy and place strategy, that eventually influences marketing strategies. Free display materials like banners, sign boards, neon lights etc.

The emergence of rural markets as highly untapped potential emphasizes the need to explore them. Rural marketing strategies, issues and challenges international. Pricing is also related to how the market positions the product. In case of rural marketing the companies also follow pushup sales promotion strategies. Marketing mix pricepricing methods, strategies, importance pricing is the marketing function that involves determination of value of a product or service in monetary terms before it is offered in the market for sale. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Promotional strategies for services in rural market iosr journal. Promotion, price, people, physical evidence and process. I wish this will help u a lot to prepare your presentetion.

The m eaning of pricing from the perspective of the buyer, seller, and society. Introduction of rural marketing marketing can be defined as the process of identifying, anticipating and knowing customer needs, and organizing all the resources of the company to satisfy them. Chalking out a product strategy for rural market differs in many aspects when compared. Strategies to be followed in indian rural market a marketing strategy. Product strategies for rural market marketing lessons. Chapter9 pricing the product learning objectives after you have read this cr,apter, v0u srould develop an understand ing of the following key points related to pricing. Impact of marketing strategy on business performance a study. There is a notion that rural folks more likely, prefer products that are low priced. Top 11 characteristics of rural marketing your article library. Pricing strategy affordability is, in determined by two factors 1.

The pricing strategy for rural market will depend upon the scope for reducing the price of the product to suit the rural incomes and at the same time not compromising with the utility and sturdiness of the product. Other pricing strategies in their search for the best price level, wow wees marketing managers could consider a variety of other approaches, such as costbased pricing, demandbased pricing, prestige pricing, and oddeven pricing. Pricepricing objectives, factors, methods, strategies. Here, a rural producer involved in agriculture sells his produce in urban market. In fact, we must have a specialist in pricing as we do have in other functions of marketing. Penetration pricing is the practice of offering a low price for a new. Marketers need to understand the psychology of the rural consumers and then act consequently.

How to choose a pricing strategy for your small business. In general, state intervention has been reduced, notably with respect to. Our valuescan survey, covering more than 200 companies in both consumer and business markets, found that firms developing and effectively executing value based pricing strategies earn 31 percent higher operating income than competitors whose pricing is driven by market share goals or target margins zale, 2014. Sep 19, 2019 penetration pricing refers to a marketing strategy used by businesses to attract customers to a new product or service. Psychological pricing strategies psychological pricing strategies are pricing techniques that help create an illusion for customers. These areas have to be explored by manufacturing and marketing men in the context of rural markets. The effectiveness and relevance of different pricing strategies such as penetration strategy and price differentiation strategy can be determined by its outcome in terms of sales and customer satisfaction. If you continue browsing the site, you agree to the use of cookies on this website. Marketing mix is referred to as the controllable marketing tools through which a firm is able to produce a response for the targeted market. D department of marketing, university of calabar, nigeria. The study examined the impact of three marketing strategies product quality. Marketing mix price pricing methods, strategies, importance pricing is the marketing function that involves determination of value of a product or service in monetary terms before it. Discuss pricing strategies in rural marketing within the marketing management forums, part of the publish upload project or download reference project category.

This paper discusses the rural marketing strategies adopted by the marketer. Rural marketing 4ps of cocacola free download as powerpoint presentation. To evaluate the key decision areas in rural marketing. Pdf rural marketing strategies for selling products. However, until recently, it has been one of the most neglected areas of marketing management.

Pricing strategy is the policy a firm adopts to determine what it will charge for its products and services. Pricing strategies grow out of the marketing strategies. Understand the concept, significance and objectives of pricing decisions identify the different pricing selection from rural marketing. Agricultural marketing in developing countries economic reforms have had sweeping impacts on agricultural markets in developing countries. Strategic approaches fall broadly into the three categories of costbased pricing. Let us understand geographical pricing with the use of multiple examples. Organizations can apply any of these strategies to achieve their pricing objective. Marketing strategy, objectives, and marketing mix nature of the market and demand competitors strategies and prices product costs price ceiling price floor. The sellers o bjectives in making pricing decisions.

Rural marketing involves the process of developing, pricing, promoting. Finally, firms marketing supplies and accessory equipment place greater emphasis on competitive pricing strategies than do other industrial goods marketers, who concentrate on product quality and servicing. Effect of pricing strategy and growth of selected hotels. It involves the selling of products and services by urban marketers in rural areas. Discuss promotion strategies in rural marketing within the marketing management forums, part of the publish upload project or download reference project category. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The marketing mix of services includes 7ps product, place. So, marketer needs to design a specific marketing mix for the rural segments.

Apr 03, 20 an appropriate segmentation of the highly heterogeneous rural market and identification of the needs and works of different segments will form the very basis for rural market strategies. Rural marketing is promotion of companys product or services to rural customers by using strategies best suited for rural markets. Strategic approaches fall broadly into the three categories of costbased pricing, competitionbased pricing, and valuebased pricing. Price is a major parameter that affects company revenue significantly. Marketing mix of hul hindustan unilever analyses the brandcompany which covers 4ps product, price, place, promotion and explains the hul hindustan unilever marketing strategy. Here is the marketing strategy of walmart analysed in detail.

Samsung is faced with highly rivalry by others in the market like apple. A pricing strategy that allows marketers to vary prices based on such factors as demand, even though the cost of providing those goods or services remains the same. Supposing the central warehouse of the firm is in a city whereas the area where the firm is now supplying is in a rural region. Jun 20, 2019 pricing strategies are useful for numerous reasons, though those reasons can vary from company to company.