Published by: Mandira
Published date: 02 Feb 2022
Pyramid marketing or multi-level marketing is recently developed marketing technique where individual sell products to the public mostly through word pf mouth and direct sales. Organizations involved in pyramid marketing sell their products not through a conventional distribution system and retail outlets but through individual people selling to their friends, acquaintances and strangers.
Multi-level marketing initially was started in US by two business partners rich and jay. They believed that it is logical to be paid relative to the benefit that the organization continuous to get from their original work. As per this marketing, sales force is compensated in two terms:
• For every sale they generate and
• For every sale generated by the sale representative they recruit.
Approach
A multilevel marketing company recruits’ sales representative with the option to become a manager. These sales representative is paid commission on their sales, not salaries.
Sales representative are also in a position of benefit mainly for two reasons:
• Income is not limited to their selling ability, and
• They can earn commission from sales generated by sales representatives they trained.
Rural marketing is an emerging marketing concept that manages the series of activities related to the purchasing power of rural consumers into demand for specific products and services.
Approaches to rural marketing
In general, there are three approaches to rural marketing, they are listed below:
Urban to Rural: Urban to rural marketing approach involves selling of products and services by urban marketers in rural areas. For example, FMCG products, pesticides.
Rural to Urban: Rural to urban approach is also referred as agricultural marketing. In this approach, rural producer sells his products in the urban market. For example, fruits, vegetables.
Rural to Rural: Rural to rural marketing approach refers to the marketing activities that, occur between two proximate rural areas. For examples, property, agricultural tools.
Characteristics of Rural Marketing
The primary characteristics of rural marketing are explained as follows:
1.Large population: as per latest census, rural population constitutes about 83% of Nepalese population. This large population is a big market to find the target customer.
2.Diverse and heterogeneous market: rural market is incredibly diverse and heterogeneous. This diversity provides market for all kind of products and services.
3.Socio-economic pattern: majority od Nepalese rural population have low per capital income and low purchasing power.
4.Literacy level: it is estimated that rural Nepal has a literacy level od 38% as compared to 64% in the urban areas.
5.Standard of living: low per capita income, low purchasing power, low literacy level and overall social and economic backwardness have lead to a low standard of living in rural areas.
6.Cost: rural marketing is not that expensive when the cost to promote products in urban market runs in millions, its not only a few lakhs.
Reasons for adopting Rural Marketing