Download Marketing In a Rural Area Marketing strategies applied in urban

Marketing In a Rural Area
Marketing strategies applied in urban markets do not necessarily work in a more rural area. Hopefully this
information sheet will give you some ideas on how to market your income-generating project in the rural
area you find yourself in!
The purpose of marketing is to, on a very basic level:
1. Consider your customer needs
2. Present your product/service in a way that makes him/her want to buy it
The guide is divided into two sections:
1. Marketing Mix: The 4 Ps of Marketing
2. Cost- Effective Approaches to Promoting your Business
1. Marketing Mix: The 4PS OF MARKETING
The 4 Ps of Marketing comprise key four areas that basically affect whether you make a sale or not.
1. Product:
You should consider the following questions: What does it look like? What it is called? Are you providing a
quality item? Be flexible, adapting the product/service to the target customer will boost your sales. If
thinking of expanding your line, seek offering complementing products/services. At the end of the day if the
product is good it will speak for itself, do not cut corners on this area.
Packaging - Focus of low cost materials, maybe recycle! By not spending much on your packaging you can
still keep your price low. But don’t forget: the packaging should reflect the product.
2. Price:
How you set your price is a marketing decision with big impact over sales. Think about how your price
compares to that of your competitors: too high, too low?
There are a few pricing strategies you can adopt, here we will mention two basic ones:
a) Skimming – high price initially to skim the market
b) Penetration – low prices to gain market share
Note that high prices could lead to expectation of a high quality service/product and low prices could lead to
a presumption of lower quality.
You can always change a price quickly with discounts, but remember this should not be long lived you should
agree the time frame for these offers. Never forget however how much this product/service is costing you to
offer, consider how these discounts will impact on your business. Also giving different prices without
explanation might confuse customers and alienate them, consistency is key!
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3. Place:
Find a highly visible location to sell your product/service: go to the customer don’t expect the customer to
come to you. Are you producing and selling in the same location? If not, you need to think about the logistics
and costs of transportation.
- Channels of distribution:
1) Direct sale, as the name states the manufacturer sells directly to customers.
2) Intermediaries
3) Distributors
A wholesaler typically buys and stores large quantities of several goods and then deliveries to supply
retailers smaller quantities. You can also choose several retailers that then sell your goods to customers.
Don’t forget the longer the chain, the more profit you will have to share.
- Market coverage:
1) Intensive: distributing via wholesalers/retailers providing them stock
2) Selective: chose a few channels
3) Exclusive: focusing on distribution via one wholesaler/retailer
4. Promotion:
Does the customer know your product/service exists?
- Techniques:
Advertising Pushes: Pushing your product through wholesaler/retailer channels to the customer
Advertising Pulls: The customers asks for the product after being made aware of it
People probably already know about your school, you have a brand as a school in the community, reintroduce it through your businesses. Play on the emotional content; also know as ‘emotional branding’. You
offer something unique: your business will be a source of income to help maintain the school. This has to be
communicated clearly in all business transactions to benefit from customers’ goodwill and preference to
support a beneficial community project as opposed to a private business. Whilst being a social project will
create an initial advantage over competitors, this advantage will shrink if products & services do not match
those of its competitors and care is not taken to maintain a favourable relationship with customers. Do not
forget that emotions change, back it up with a great customer service and a great product!
2. COST-EFFECTIVE APPROACHES TO PROMOTING YOUR BUSINESS
Word of Mouth
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Ensure that your customers have a positive experience, through a good quality product/service, this will get
them talking to their friends about what you offer. In a rural community we tend to see that word-of-mouth is
a powerful tool - use it in your favour.
Networking
Be visible in community events, festivals, conferences, trade shows and activities. Try to associate yourself
with local education and business organizations. Create a business card include your name, position, contact
information and the logo of your business, keep the presentation simple and distribute it widely.
Web/ Social Media
Have access to Internet, have a friend that does or perhaps a Cyber Café near you? Create an email account
for your business, easy and free! Get the emails from your customers and send them monthly updates.
Through Facebook, Twitter, or by creating a Business Blog communicate daily with your customers and use it
as a platform to let them know about new products or services you are offering.
Mobile
If you do not have access to Internet how about using your mobile to promote your product/ service? A great
way of spreading the word if you are having a sale or if you have a new product/service to offer!
Referral
Why not reward current customers for bringing new customers? (i.e.: discounts, promotions). Customer
Loyalty should be rewarded, keep on building a good relationship with your customers and soon they will
bring new ones!
Local press/ Local radio
Create a list of local press and send a letter/email telling them about your business - follow up by phone.
Maybe in the local newspaper they sell space for you to advertise your business, find out about the
advertising rate. Also your local church may give out newsletters or informative printed materials ask if you
can advertise your business there. Basically see where the community gets their information from and try to
bargain your way in.
Open Day/ Demonstration/ Tasting
Get people involved! Customers like to learn about the product or service they are spending their money on.
Hold an Open Day: entertain but also inform your potential customers. For Demonstrations/Tastings choose
the right location for a stall, where there is passing trade.
Give-aways
Free samples of what you offer can influence your potential customer’s buying decision. Short-term
incentives as such can encourage sales especially if you are offering something completely new. Again
consider how much you will spend on a Give-Away and what will be the return.
Flyer/brochure handout
Create and distribute printed material with basic information about your business: make it attractive, simple
and to the point!
Things to think about:
. What is the cost to produce these items? Mass-producing them would keep the price down and it would
mean you could use them for an extended period of time.
. Who will distribute them, how and where?
. Door Drops - Door-to-Door leaflet distribution can be an effective way of informing potential customers.
Human Billboard/ Human Directional
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Holding signs or actually becoming one! Imagine two posters tied with string one on the front of your body
another at the back. You will definitely be getting the attention of passing potential customers: direct them to
your business whilst talking about the products/services you offer!
Billboard/ wall paintings/ banners
Painting: get the pupils helping! Put the name of your business and logo so potential customers can quickly
identify you. If you have space draw images that help people associate the product/service you offer with
you. Think about other options within the same wavelength: can you advertise on public/private vehicles for
example?
Branding: Are there competitors for your product or service? Are you offering something new? These
questions will help you in realizing if there is a need for branding per se or just product/service information.
In a location whereby competing products/services are very similar, you need to stand out.
Partnerships with other businesses
If you do not have a lot of cash to spend on marketing why not partner with another business that targets a
similar group of consumers? By this we do not mean someone that offers what you offer but that perhaps
complements your product and service.
Publicity through other means
How do local businesses advertise their service/product? Depending on where you are people might use
particular means of publicity. For example, in rural Africa you may find that you can hire an individual to go
around the village in a motorbike with a speaker providing information about your business. Presenting a
different approach to publicity is good; it is entertaining and can immediately catch the community’s
attention but, do not disregard traditional methods used.
CONCLUDING NOTES
Now you need to formulate a strategy for how you will present your product/service, how will you price it and
where you are going to sell it. In your marketing plan you will need to outline the ‘marketing mix’ of your
choice. Consider the approaches outlined in this Marketing Information Sheet and see what fits your project!
Do not forget: include your school/project logo in all your communication; ensure that people connect the logo
with the product or service! Every opportunity is one to let people know about your business.
Bibliography:
. Dennis Hanno and Nicole Smith ‘From Ideas to Action: A guide for young entrepreneurs’ Babson College –
not yet for sale, draft-book provided by Babson-Rwanda Entrepreneurship Centre
. Teach a Man to Fish, School in a Box Guide Series: ‘Manual 8 How to Write a Business Plan for a SelfSufficient School’
. The Entrepreneur website: http://www.entrepreneur.com/
. Edward Russel-Walling (2007) ‘50 management ideas you really need to know’. London: Quercus Publishing
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