MS 611 Rural Marketing Question Paper

MBA - Master of Business Administration

Note: This paper consists of two sections A and B. Attempt any three questions from Section A. Section B is compulsory. All questions carry equal marks.

1. Briefly discuss the rural environment in terms of the infrastructure available for marketing. How does this environment affect the marketing decisions and opportunities? Explain with reference to
(a) Marketing of banking services
(b) Marketing of consumer necessities like toilet soap and detergents

2. Discuss the major differences between urban and rural market research. You have been asked to assess the market acceptance for an economy range of personal care products in villages of North India. What sources of secondary data and primary data will you use for your market research? Briefly explain.

3. Discuss the various strategies marketers use for product modification decisions for the rural
markets, with the help of suitable examples. As the product manager of an established consumer goods company, how would you handle the menace of spurious brands in the rural markets?

4. What are the important media vehicles specially suited for advertising and promotion in the r
rural markets? Having identified the rural market potential, your company is keen to promote its economy range of cooking gas stoves in the rural market. What is the media mix you would suggest to the company and why?

5. Write short notes on any three of the following:
(a) Role of retailers in rural distribution
(b) Significance of periodic markets like Haats and Melas
(c) Behavioural aspects jn rural distribution
(d) E– chaupal as a distribution initiative
(e) Physical distribution decisions for the rural market

SECTION B

6. Read the following case carefully and answer the questions given at the end :

Sensing a big opportunity in rural markets, Om Kotak Life Insurance set up a separate rural business division headed by a senior vice president. The marketing strategy revolved around generating business using agent routes, initially in Maharashtra.

Press advertisements were released in both national and regional newspapers to select and appoint agents. However, despite repeated insertions the response was very poor. Thereafter, the company approached a recruitment agency, a marketing agency operating in rural areas and an agency with its networking sources in rural areas.

The first two agencies did not have reach in rural areas. So, Om Kotak finalized a deal with Rural Relations, a Pune-based agency with an excellent network of rural volunteers, to recruit agents for the company.

Based on its previous experience, Rural Relations emphasized three components of their recruitment strategy: (1) direct personal contact (2) spreading information, through group discussions (3) motivating people to become life insurance agents through counseling.

The awareness-building strategy included sending letters to opinions leaders using the huge Rural Relations database, highlighting the benefits of becoming agents for the insurance company and requesting them to spread the news locally to identify suitable agents. Six persons were trained by Rural Relations to contact villagers, particularly rural youth and brief them about the insurance business. A well produced leaflet providing information on the company and career prospects was also handed out at the preliminary interviews held in nearby talukas.

The first level agent assessment was done based on the information provided in the application forms, followed by quality of participation in the counseling session and performance in a direct personal interview. Out of the 375 candidates who appeared, 110 were shortlisted for the second round of interviews.

In the second round, the company head of the rural life insurance business conducted the interviews, along with his sales manager and an HR manager from Rural Relations. Out of the 68 candidates who appeared, the best 30 were selected. Thereafter, they were put through a 20-day lnsurance Regulatory Development Authority stipulated training programme, conducted by Maharashtra Institute of Technology at Pune.

During the training period, Rural Relations coordinators interacted with the candidates on a daily basis to solve and personal or course-related problems. To sustain motivation levels, informal dinners were also arranged on a weekly basis to encourage candidates to interact with each other and with members of the Rural Relations team.

These efforts were successful in building up the candidates' self-confidence in their abilities to become competent rural life insurance agents, as was evident from the 100 per cent pass rate in the final examination.

Questions:

(a) Critically evaluate the recruitment strategy followed by Om Kotak for its insurance salespeople.

(b) What are the alternative strategies that you would have followed to attract larger numbers of prospective applicants from the rural segment? Give reasons for your answer.