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Steps in Setting Price:

Following are the steps in setting price for a product:

1. SELECTING the PRICING objectives
2. Determining the consumers' DEMAND
3. Estimating costs
4. ANALYZING the competitors' costs, prices and offers
5. Selecting a pricing method and
6. Selecting the FINAL price.

Steps in Setting Price:

Following are the steps in setting price for a product:

1. Spread and diversity.
2. Understanding the rural audience.
3. Illiteracy.
4. Rural CUSTOMERS do not recognize perceptions
5. INTERPERSONAL communication accounts a LOT among rural population
6. Traditions and values vary from state to state
7. High degree of involvement.

1. IDEA Generation
2. Idea Screening
3. Concept DEVELOPMENT and Testing
4. BUSINESS Analysis
5. Beta Testing and Market Testing
6. Technical Implementation
7. Commercialization
8. New PRODUCT Pricing

The rural INFRASTRUCTURE INVOLVES:

1. Transport and connectivity.
2. Road connectivity
3. Post offices
4. Network
5. Radio
6. Television
7. Process and print media.
8. Telecom services
9. MOBILE services
10. SOCIAL Infrastructure
11. Agricultural Infrastructure.
12. MARKETING Infrastructure etc.

The rural infrastructure involves:

Some COMMON problems in rural MARKETS are:

1. Scattered Markets.
2. Physical distribution.
3. CHANNEL MANAGEMENT
4. Sales force management
5. Sales PROMOTION
6. Underdeveloped people and market etc.,

Some common problems in rural markets are:

The profile of rural DEMAND includes:

1. Market for consumer goods.
2. Market for agricultural INPUTS and MACHINERY.
3. Market for services.
4. Market for construction materials for farms and VILLAGE level industries.
5. Transportation equipments.
6. Market for agricultural products like grains, pulses, vegetables and FRUITS.

The profile of rural demand includes:

Cultural factor divided into three sub factors

1. Culture
2. Sub Culture
3. SOCIAL Class

Culture:-The set of basic values perceptions, wants, and behaviors LEARNED by a member of society from family and other important institutions. Culture is the most basic cause of a person's wants and BEHAVIOR. Every group or society has a culture, and cultural influences on buying behavior may vary greatly from country to country.

Sub Culture :-A group of people with shared value systems based on common life experiences and situations.Each culture contains smaller sub cultures a group of people with shared value system based on common life experiences and situations. Subculture includes nationalities, religions, racial group and geographic regions. Many sub culture make up important market segments and marketers often design PRODUCTS.

Social Class:-Almost every society has some form of social STRUCTURE; social classes are society's relatively permanent and ordered divisions whose members share similar values, interests and behavior.

Cultural factor divided into three sub factors

Culture:-The set of basic values perceptions, wants, and behaviors learned by a member of society from family and other important institutions. Culture is the most basic cause of a person's wants and behavior. Every group or society has a culture, and cultural influences on buying behavior may vary greatly from country to country.

Sub Culture :-A group of people with shared value systems based on common life experiences and situations.Each culture contains smaller sub cultures a group of people with shared value system based on common life experiences and situations. Subculture includes nationalities, religions, racial group and geographic regions. Many sub culture make up important market segments and marketers often design products.

Social Class:-Almost every society has some form of social structure; social classes are society's relatively permanent and ordered divisions whose members share similar values, interests and behavior.

Consumer PURCHASES are INFLUENCED STRONGLY by or there are four factors.

1. Cultural Factor
2. SOCIAL Factor
3. Personal Factor
4. Psychological Factor.

Consumer purchases are influenced strongly by or there are four factors.

The term ―rural which was earlier marketing usedasan umbrella term to refer to all commercial transactions of rural people, acquired a separate meaning of great significance in the 1990s.

Phase I (Before the 1960S):

Agricultural products like FOOD grains and industrial inputs like COTTON, sugarcane ETC., were the primary products marketed during this period.

Phase II (1960s –1990s):

The green revolution changed the face of rural India, ushering in scientific farming practices with the advent of agricultural inputs and IMPLEMENTS. Poverty – stricken villages turned into cash –rich centers.

Phase III (1990s to the present) :

The existing rural markets for these products were not sizeable enough to attract the attention of urban marketers. The growth of urban markets during this period kept marketers busy. Consequently, rural markets were conveniently ignored, as they were seen as extension of urban markets.

The term ―rural which was earlier marketing usedasan umbrella term to refer to all commercial transactions of rural people, acquired a separate meaning of great significance in the 1990s.

Phase I (Before the 1960s):

Agricultural products like food grains and industrial inputs like cotton, sugarcane etc., were the primary products marketed during this period.

Phase II (1960s –1990s):

The green revolution changed the face of rural India, ushering in scientific farming practices with the advent of agricultural inputs and implements. Poverty – stricken villages turned into cash –rich centers.

Phase III (1990s to the present) :

The existing rural markets for these products were not sizeable enough to attract the attention of urban marketers. The growth of urban markets during this period kept marketers busy. Consequently, rural markets were conveniently ignored, as they were seen as extension of urban markets.

1. Distribution
2. Understanding the PSYCHE of the RURAL consumer
3. Limited knowledge
4. Communication
5. COST per contact.
6. Sale of sake and SPURIOUS products.

1. Customer value
2. Competitors PRICE
3. Cost to the COMPANY
4. STRATEGIC and pricing OBJECTIVES of the company

1. CONTACT point for VILLAGERS with the market.
2. Means of DISTRIBUTING local products and exchanges rural surplus.
3. An opportunity for buying daily necessities.
4. A PLACE for political, SOCIAL, cultural contact.

Rural marketing can be DEFINED as a function that manages all the activities involved in ASSESSING, stimulating, and converting the purchasing power of rural consumers into an effective demand for specific products and services and moving these products and services to the people in rural AREAS to create satisfaction and a better standard of living and THEREBY achieving organizational GOALS.

Rural marketing can be defined as a function that manages all the activities involved in assessing, stimulating, and converting the purchasing power of rural consumers into an effective demand for specific products and services and moving these products and services to the people in rural areas to create satisfaction and a better standard of living and thereby achieving organizational goals.