Channel management in rural market, Marketing Management

Assignment Help:

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.


Related Discussions:- Channel management in rural market

How customers become brand loyal, Question 1: Brand loyalty is the cust...

Question 1: Brand loyalty is the customer's conscious or unconscious decision, through intention or behaviour, to repurchase a brand continually. In today's highly competitive

What are psychological factors of consumer behaviour, What are the psycholo...

What are the psychological factors to determine the consumer behaviour? Psychological: A person’s acquired requirements are influenced by certain psychological factors as lik

Communication differences, Communication Differences Having identified...

Communication Differences Having identified need to communicate with several different audiences, it seems appropriate to conclude this opening module by examining differences

Curves Family Envelope, A curve which touches each member of a family of cu...

A curve which touches each member of a family of curves and which is touched at each point by some member of the family is called the envelope of the family of curves. Example: Co

Personal selling, difference between the personal selling and salesmanship?...

difference between the personal selling and salesmanship?

Products and services - core marketing concept, Products and Services ...

Products and Services Marketing Offers-Services, Products and Experiences Companies introduce needs by putting forth a value proposition, a set of benefits that the

Essay, Consumer mind is black box. Discuss

Consumer mind is black box. Discuss

.Henry Assael Model, .explain Henry Assael Model of buying decision behavio...

.explain Henry Assael Model of buying decision behaviour along with diagram.

Media plan, What is a media plan? A media plan is a comprehensive plan ...

What is a media plan? A media plan is a comprehensive plan of all the outside advertising and promotional activities of the business for a particular period. Generally the peri

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd