Rural distribution channels

The case also discusses the concept of rural marketing, the hidden opportunity and its characteristics in a developing country like India.

Relationship marketing is driven by two principles having particular relevance to marketing channel strategy: More or less, all the banks are using at agent-based model as the typical branch-based model does not work here due to cost economics.

To begin with, as transaction processes become routine, the expectations of exchange partners become institutionalized. Rural marketing involves the process of developing, promoting, distributing rural area specific products and service exchange between rural and urban market which satisfies customer demand and also achieves organizational goals.

And there has been a stream of new initiatives. Yet cash still dominates all rural money transactions. Thereafter, conducting regular marketing analysis, reviews of how effective the marketing strategy is based on sales and interest in the product, will help companies figure out whether their marketing strategies are working or whether they need to reconsider how they are promoting the product.

Imagine the amount of order processing that would be necessary to complete millions upon millions of pharmaceutical transactions. Manufacturers and consumers are two major components of the market.

Mail-order sales are usually used to sell catalogs, books etc. The benefits to the farmer are obvious. Indian part of Unilever, HLL, sells its goods through rural women who become its sales-representatives. Using this system, initially the goods are transported to hubs towns from the plant and later the stock is transported to spokes using all types of transport vehicles: Its child, the mall, soon followed.

Routinization clearly allows channel participants to strengthen their relationships.

What are the Different Types of Channel of Distribution?

Based on necessity the help of one or more intermediaries could be taken and even this is possible that there happens to be no intermediary. These delivery vans take the products to the retail shops in every corner of the rural market and enable the companies to establish direct sales contact with majority of the rural consumers.

In performing the categorization task, intermediaries first arrange this vast product portfolio into manageable therapeutic categories. Selecting the Best Channel Small business also should take into account how their buyers want to receive their products. The most basic way that market needs can be assessed and then satisfied centers on the role channel intermediaries can perform in helping channel members reach the goals mapped out in their strategic plans.

Which is likely to succeed? This reduction in transactions is contractual efficiency. In addition, having formed a channel of distribution it is important to remember that the exploitation and utilization of intermediaries in a business not only wholesalers, retailers but also transport logistics will lengthen the chain of distribution.

Building Rural Digital Ecosystems: A New Role for Agribusinesses?

Coordinated channel marketing[ edit ] Brands carry out online and offline advertising on behalf of channel partners to aid them in generating sales of their branded products.

Storage of goods is one of the characterized aspects of the work of a wholesaler.

Marketing channel

Owing to a deeper understanding of the local market and demography, FMCG companies have relied on distributor network. That is why the rural market is critical for companies. Channels of distribution represent the final frontier within which most sustainable strategic marketing advantages can be achieved.The Significance of Marketing Channels.

The primary purpose of any channel of distribution is to bridge the gap between the producer of a product and its user.

CHANNELS OF DISTRIBUTION The word channel might bring to mind a waterway such as the English Channel, where ships move people and cargo. Or it might bring to mind a passageway such as the Chunnel, the railroad and car tunnel under the English Channel.

Source for information on Channels of Distribution: Encyclopedia of Business and. DISTRIBUTION STRATEGIES IN RURAL MARKETS. Innovative Distribution Channels Of Fmcg In India. Uploaded by. Shashank Sharma. final project.

Marketing to Rural India: Making the Ends Meet

Uploaded by. vishal_monu.

Designing the right rural distribution model

Role of Distribution Channel in FMCG sector. Uploaded by. Azeemurrehman. STP For Rural Markets. Uploaded by. Gowri Sankar.4/4(3).

Rural Marketing - In Indian Economy

Rural distribution ChannelsFive layers of distribution channels for the movement of products from the company depot to the interior village markets. Distribution channels can make or break a company’s rural marketing efforts.

To sell in villages, products must be priced low, profit margins must be. Electronic copy available at: /abstract = DISTRIBUTION CHANNELS OF ECO AND RURAL GUEST HOUSES IN BULGARIA – FROM FICTION TO REALITY MAYA IVANOVA, PhD, Varna University of Management, Varna, Bulgaria.

Rural distribution channels
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