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

Compare the spot prices with the futures prices, i)  The monthly (or whatev...

i)  The monthly (or whatever period the futures contract is specified in) listed price of each of the four contracts for a period of 12 months. ii) The monthly spot prices for e

Reaction paper, Choose two of the following 3 topics a 1-3 page reaction pa...

Choose two of the following 3 topics a 1-3 page reaction paper. Identify all sources used-you must use sources - it must be typed and double spaced 1) Resolved: The proposed AT&

Problem about Geometry, One side of a kite is 4 cm less than 3 times the le...

One side of a kite is 4 cm less than 3 times the length of another. If the perimeter is 32 cm, find the length of each side of the the kite.

College algebra, Sam has grades of 96,88,86, and 92 on his first four exams...

Sam has grades of 96,88,86, and 92 on his first four exams. What score does he need on his final exam to have an average of at least 90?

What are the two types of exchange, What are the Two types of exchange ...

What are the Two types of exchange Two types of exchange signify extremes in a spectrum of exchange transactions. In industrial societies market exchanges have tended to domin

Block box, consumer mind is a block box

consumer mind is a block box

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