It also involves making the advertisements effective, such as displays, shows and exhibitions and demonstrations. And it is shipped to the consuming country and still enable good margins on sale of products. Locally manufactured Rice, Oil, Food grains, Jaggery -unbranded products 4. As compared to urban consumers, the tendency to try the new product is low in case of rural consumers because they have lack of faith about the new products. During times of recession economy pricing sees more sales. All these services can be profitably distributing in rural areas because rural consumers are now eager to go for these kinds of services.
The high price attracts new competitors into the market, and the price inevitably falls due to increased supply. Some of their efforts paid off and many markets still an enigma. Think in the local language to capture the local spirit in the communication aimed at specific region. The life of the product. Price Skimming Designed to help businesses maximize sales on new products and services, involves setting rates high during the introductory phase. Free gifts — may sometimes not work in rural areas 4. Products like Tractor, Motorcycles, Appliances, Televisions, Batteries need After sales service.
A mid-priced brand that offers a satisfactory brand experience can be loved as much as an expensive one that offers a superior experience. Affordability is, in determined by two factors- 1. For campaigns with picture, video and lesser text, FaceBook would be the appropriate medium while for sharing industry global marketing news, especially those involving B2B products may be effective. Now many companies sell their products in quantities; products such as hair oil, biscuits, and fairness creams. Pricing strategies Pricing strategies are very much linked to product strategies.
In the pursuit of great income from their farms, they are willing to do experiment in their farming traditions. Just a generation back these undivided families could buy tractors or at least have a few pairs of bullocks to do farming in their land. Therefore, it pays to employ local talent in marketing and branding to help understand the regional tastes and attitudes so that the right branding message is delivered in promotions. As a result, customers can purchase the products they need without frills. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented.
Consumers are not aware price is also an indicator of quality. For activity and attraction operators their full rate is more likely to be charged all the time without any day to day discounting, however accommodation operators — particularly those in the middle of the market will be changing pricing almost daily for the month or 2 months ahead to fill gaps. Pricing Strategy for Consumer Durables Rural people have been managing their lives with or without these consumer durable products and most of the rural people consider such products to be for luxury. Would you automatically by the cheapest? While it is -essential to formulate specific strategies for distribution in rural areas, the characteristics of the product, its shelf life and other factors have to be kept in mind. Conclusion Considering the diversity of global markets, understanding each region may be a daunting task.
For example, a free toothbrush that comes complementary with toothpaste. They are the source for rural people and a place of social gettogether. Peopsodent toothpaste is available for Rs. Lesson Summary Pricing strategy in marketing is the pursuit of identifying the optimum price for a product. Value is based on the benefits it provides to the consumer e. Demonstration — a key element for success.
Fans which may work well in closed rooms may not be effective in open areas. Skimming Pricing The organisation sets an initial high price and then slowly lowers the price to make the product available to a wider market. Geographic location does create a huge impact on the pricing strategy of a product as the company has to consider every aspect before they price a product. Firstly, customer may consider the product as affordable for him, if he perceives that it is priced within his budget. Based on functional life : Consumables, Durables 4. Rural consumers are keen on branded goods nowadays, so the market size for products and services seems to have burgeoned.
A market penetration strategy can be risky because customers don't like growing accustomed to a low price and then being asked to pay more. For example a razor manufacturer will charge a low price for the first plastic razor and recoup its margin and more from the sale of the blades that fit the razor. A that does not respect local cultures, sentiments, tradition and the consumer as an individual is bound to fail. Become a successful marketing manager with our practical training. The market penetration pricing strategy has the main objective of gaining market share early for a company. Sturdy products Sturdiness of a product either in terms of weight or appearance is an important fact for rural consumers.