Channel management in rural market, Marketing Management

Channel management in rural market:

In rural distribution we need relatively longer chain distribution involving multiple channels as we have widely scattered markets. Multiple channels lead to higher costs of operating a complex dealer network and we also have to solve management problems of the complex channels. Then again the marketer and the middle man in the distribution do not enjoy adequate banking and credit facilities. Banking and credit is the lifeblood of the commerce. Organizing marketing channels is the second part of the distribution task. This too is beset with many unique problems in the rural context.

Problem in the organizing marketing channels:

Multiple tiers add to the costs: the distribution chain in the rural context usually requires more tiers, compared with the urban distribution chain. The distance between the production points and the rural market, and the scattered location of the consumers make it necessary. At the minimum, the distribution chain in the rural context needs their tiers, the village shopkeeper, the mandi -level distributer, and the wholes or stockes or C and F agent in the town.

Non - availability of dealers: in addition, there is the problem of non -availibility of the appropriate dealers. Firms fins that availability of dealers is limited and the scope for appointing fresh or exclusive dealers of the company is equally limited in view of the low demand and non -availability of the suitable candidates.

Poor viability of the outlets: a good number of retail outlets in the rural market suffer from poor viability. Familier paradoxes in rural distribution and on the other, the retail outlets find that the business is non -availability to them.

Inadequate banking and credit facilities: distribution in the rural markets is also handicapped due to the lack of adequate banking and credit facilities. It is estimated that there is only one bank branch for every 50 villages. Rural outlets need banking support for three important purposes:

a.       For remittances to principals and to get replenishment of stocks.

b.      For supplies "through bank" (retaining documents through bank).

c.       For securing credit.

Posted Date: 9/19/2012 7:35:42 AM | Location : United States

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