MODULE 3 SEGMENTING, TARGETING, AND POSITIONING: Segmenting, targeting, and positioning (STP) are essential marketing processes that help businesses effectively reach their target market and position their products or services. Here's a brief overview: Conditions for Effective Market Segmentation: For effective market segmentation, certain conditions should be met: 1. Measurability: The segments should be measurable in terms of size, purchasing power, and other relevant factors. 2. Accessibility: The segments should be reachable through appropriate marketing channels. 3. Substantiality: The segments should be substantial enough to justify separate marketing efforts. 4. Homogeneity: The individuals within a segment should be similar in terms of their needs, preferences, and behaviors. 5. Actionability: The segments should be actionable and responsive to marketing efforts. Approaches for Segmenting the Rural Market: Segmenting the rural market requires understanding the unique characteristics and needs of rural consumers. Some common approaches for segmenting the rural market include: 1. Geographic Segmentation: Dividing the market based on geographic factors such as rural regions, states, or villages. 2. Demographic Segmentation: Considering demographic variables like age, gender, income, occupation, and education levels. 3. Psychographic Segmentation: Segmenting based on rural consumers' lifestyle, attitudes, values, and aspirations. 4. Behavioral Segmentation: Analyzing rural consumers' purchasing behavior, brand loyalty, and usage patterns. Rural Market Segmentation Tools: Several tools can assist in rural market segmentation: 1. Geo-Demographic Tools : These tools combine geographic and demographic data to identify specific rural segments based on their location and demographic characteristics. 2. Cluster Analysis: This statistical technique helps group rural consumers with similar traits and preferences, enabling marketers to target them more effectively. 3. Socio-Economic Classification Tools : These tools categorize rural consumers based on their socio-economic attributes, helping marketers tailor their offerings accordingly. 4. Lifestyle Analysis: By examining the lifestyle choices, interests, and values of rural consumers, marketers can identify segments with similar lifestyle patterns and target them appropriately. Product & Pricing Strategies for Rural Markets: Rural Product Classification: Product classification in rural markets involves categorizing products based on
their nature, usage, and relevance to rural consumers. Common product categories in rural markets include agriculture inputs, FMCG products, consumer durables, healthcare products, and financial services. Product Decisions and Strategies: To succeed in rural markets, businesses need to make informed product decisions and strategies: 1. Adaptation: Modifying existing products to suit the specific needs and preferences of rural consumers, such as smaller pack sizes, vernacular labeling, and affordable pricing. 2. Customization: Developing products specifically designed for rural consumers, considering factors like low literacy levels, limited infrastructure, and cultural sensitivities. 3. Innovation: Introducing innovative products that address rural consumers' unmet needs and challenges, such as low-cost healthcare solutions, agricultural technology, and renewable energy solutions. Product Life Cycle Strategies in Rural Markets: The product life cycle (PLC) strategies in rural markets involve different stages: 1. Introduction: Emphasize product awareness, educate consumers, and build trust through demonstrations and promotional activities. 2. Growth: Expand distribution networks, build brand loyalty, and introduce product variations or extensions to cater to evolving needs. 3. Maturity: Focus on maintaining market share, improving product quality, offering value-added services, and exploring new market segments. 4. Decline: Evaluate the product's viability and consider product diversification or discontinuation if necessary. New Product Development in Rural Markets: New product development in rural markets involves understanding the unique needs, preferences, and affordability of rural consumers. It requires thorough market research, prototyping, testing, and effective distribution strategies to ensure successful adoption and market penetration. Rural Pricing Strategies : Rural pricing strategies need to consider the affordability and value perception of rural consumers: 1. Value-Based Pricing: Set prices based on the perceived value of the product to rural consumers, ensuring affordability while maintaining profitability. 2. Penetration Pricing: Initially offer products at lower prices to gain market share and create demand, gradually increasing prices as the market expands. 3. Bundle Pricing: Offer product bundles or packages at discounted prices to increase affordability and encourage multiple purchases. 4. Differential Pricing: Adjust prices based on different market segments, considering factors such as income levels, geography, and product variations. Effective segmenting, targeting, positioning, and appropriate product and pricing strategies are crucial for businesses to succeed in rural markets and cater to the unique needs and aspirations of rural consumers.