ASSIGNMENT NO.

1
ON
RURAL MARKETING
TOPIC:- TELECOM SERVICE

DATE OF SUBMISSION:-31.1.2K11

SUBMITTED TO: SUBMITTED BY:

ABHISHEK DUTTA NAME:JOY GURIA
ROLL NO: B50
REG NO: 10906116
CLASS: MBA 4TH SEM
SECTION: RT1903
CONTENT:

1. INTRODUCTION
2. TECHNOLOGY IN RURAL MARKET
3. PROCESS OF BUYING IN RURAL AREA
4. CHARACTERISTIC OF RURAL BUYERS
5. PURCHASING PROCESS
6. CONCLUSION
7. REFFERENCE
INTRODUCTION:
TELECOM SERVICES IN RURAL INDIA
Advancement in information and communication technologies (ICT) has demonstrated
opportunities to the people to utilize it in their socioeconomic and cultural development in a
better and more sophisticated way. By utilizing it, the government finds the importance and role
played in delivering services at the locations convenient to the citizens. The rural ICT
applications attempt to offer development ideas and solutions to the people who are deprived of
basic human facilities such as safe drinking water, diary, education, immunization, reproductive
health, employment generation, human rights, etc. Similarly, the government and administration
try to exploit the technological explosion by utilizing the ICT in offering improved and
affordable solutions to these basic necessities of the people at their village doorsteps.

Towards the beginning of 21st century, in India, we have witnessed at our disposal a
technology of which our forefathers could only dream—a technology which can transform local
happenings into global events and which can reverse the trends towards divergence. That is the
technology of telecommunications and most crucial aspects for the development of rural India.
Rural telecommunication has been an important area on which the government has been giving
sustained emphasis since seventies. Lots of incentives have been made available to the rural
areas to bridge the gap between urban and rural areas in terms of access to telephones. The
department of telecommunications (DoT) has taken series of measures, such as: booking with
concessional registration fee/tariff and introduction of new technology to stimulate demand for
telephones in rural areas. It is believed that as telephones gets cheaper and accessible to rural
areas, it would definitely initiate tremendous transformation in various aspects of rural society,
particularly in the rural economy.

Thus, telecommunications is a reflection of economic activity of a society. In order to remedy

the rural-urban telecommunications gap, it is necessary to address the economic gap in living
standards between regions.In its consultation paper on ‘Growth of telecom services in rural
India’,The Telecom Regulatory Authority of India (TRAI) has expressed concern over the low
telephone penetration in the rural area. The Authority noted that despite several attempts over the
last more than 10 years, the gap between penetration of telephony in rural (1.7 per cent) and
urban (19.7per cent) areas is widening and measures need to be taken to reduce this gap.
However, the telecommunications revolution offers new hope to the developing countries,
particularly to India.

TECHNOLOGY IN RURAL DEVELOPMENT

Telecommunications is a reflection of economic activity of a society. In order to remedy the

rural-urban telecommunications gap, it is necessary to address the economic gap in living
standards between regions.In its consultation paper on ‘Growth of telecom services in rural
India’,The Telecom Regulatory Authority of India (TRAI) has expressed concern over the low
telephone penetration in the rural area. The Authority noted that despite several attempts over the
last more than 10 years, the gap between penetration of telephony in rural (1.7 per cent) and
urban (19.7 per cent) areas is widening and measures need to be taken to reduce this gap.
However, the telecommunications revolution offers new hope to the developing countries,
particularly to India. With only 5 telephones per 1000 population in rural areas, and with a
significant number of those phones not working all time, India lags much behind of the world
ratio, including many developing countries, when it comes to rural telecom access. With around
70 per cent of the India’s population living in rural areas, improving rural tele-density is an
important goal of the Indian government. One of the stated goals of India’s National Telecom
Policy-1999 is to achieve 4 per cent telephone density in rural India by the year 2010. Though it
is a little bit difficult to reach at the target within the time-frame period, but the pace in which the
developments in the telecom sector in India is presently going on, to reach at the target may not
be a distant dream.

At the time of Indian Independence (1947),the newly formed nation had 84,000 fixed telephone
lines for its population of 350 million.

.IN 1980 the number of telephones raised to 2.5 million and 1200 public telephones for a
population of 700 million out of which 3% of india's607491 villages has telephone service.

.In 1991-1994 the quantity of public telephones in tural areas rose from 48,828 to over 2,06,000.

.In 1999 india installed network of over 25 million telephone lines spread over 300 cities,4869
towns and 3,10,897 villages.

.presently more than 87% of the indian villages have already been covered by VPTs provided by
BSNL.
 2005-06 March 31 June 30 September 30 Addition (in lakhs)

Mobile 522.2 573.8 650.5 128.3

Landline 459.1 469.0 478.3 19.2

2004-05 March 31 June 30 September 30 Addition(in lakhs)

Mobile 336.0 394.7 429.8 93.8

Landline 425.8 434.5 438.0 12.2

In terms of rural telephony according to the available data as on 31 march 2004 of the total
6,07,491 indian village 5,22,347 village (86%) have covered with village public telephones.

PROCESS OF BUYING PROCESS

PROBLEM RECOGNITION

INFORMATION SEARCH

EVALUATION OF
ALTENATIVES

PURCHASE DECISION
 POST-PURCHASE
BEHAVIOUR

CHARACTERISTIC OF RURAL BUYERS WHICH INFLUENCE THE BUYING OF

TELEPHONES.

1.Larger number of consumers

2. occupation pattern

3. literacy level

4. Low standard of living

5. Media reach

6. communication facilities

7. Transport facilities

8. Medical facilities

9. Distance

1. LARGE NUMBER OF CONSUMERS

According to the 1991 census, the rural population constitutes about 74% of the total
population in our country. While the population went from 55 crores (1971) to 85 crores
(1991), the rural-urban proportion have remained more or less the same as in 1971. There
are states like U.P, M.P, Bihar, Rajasthan and Orissa where rural population varies from
80 to 90 percent. Therefore a large population gives an opportunity for marketing a
variety of goods and services. However income and purchasing power play a major role
in determining the demand in rural areas.
2. OCCUPATION PATTERN

Agriculture and related activities continue to be the main occupation for majority of the
rural population. Land is the major source of income for about 77% of the population.
Others are engaged in business (10%), non-agriculture labour (9%), salary earners (2%)
and not gainfully employed (2%). It is evident that rural prosperity depends upon growth
and development of agriculture.

3. LITRACY LEVEL

It has been estimated that the rural literacy level is 36% compared to 62% in urban areas.
Literacy is one of the important factors in developing awareness and knowledge about
technological changes. As many as 16 major languages are spoken adding to the
complexities in rural communication.

4. LOW STANDARD OF LIVING

Low income, low purchasing power, overall social and economic backwardness lead to
low standard of living. In general a rural consumer spends less on non-food items.

5. MEDIA REACH

The media reach in rural household is low. Statistics indicates that the reach of Print
media is 10%, followed by TV 31%, Radio 32% and Cinema 36%. Therefore the
marketer has to consider rural specific promotion media and methods to reach the
villagers.
6. COMMUNICATION FACILITIES

About 20% of the six lakh villages are without telephone facility even today. This
includes Rajasthan (17600 villages), MP (14200 villages), Maharashtra (12000 villages),
Gujarat (7000 villages), and AP, Assam, Orissa about 6000 villages each. (Source: The
Indian Express dated 30.3.2003).

7. TRANSPORTATION FACILITIES

About 50% of the markets are not connected by road. Most of the roads are kachha and
become unusable during rainy season. Many farmers use bullock cart for transporting
their produce from village to the market. This means of transport is time consuming.

8. MEDICAL FACILITIES

Medical facilities are quite inadequate and the villagers have to travel long distances for
getting medical treatment.

9. DISTANCE

Village nearer to towns has elements of the urban life. Interior villages are more
traditional.

ACCORDING TO TRAI(telecommunication regulatory authority of india)

The recent research says:

The rural market has reached the 190.88 million mark as against 111.63 million in the
previous year excluding CDMA which works out to a growth of about 71% over last
year. It was reported that 32.67% of total wireless subscribers are now in rural areas. The
total number of wireline connections were 36.96 million while in the rural areas it stood
at 9.93 million. The wireline segment has been stagnating or declining in the last few
years but a positive aspect is that the decline has reduced from -3.69% to -2.65%. During
the last year, though BSNL and MTNL have registered decline,private operators have
jointly had a growth of 11.51% increasing the connections from 5.04 million to 5.62
million. The growth of subscriber base during the past decade (2000-2010) is indicated
below.

Quarter Quarter Quarter Quarter

ending ending ending ending
sept2009 dec2009 march2009
June2009

Rural
subscriber
136.27 151.82 174.53 200.81

PURCHASING PROCESS WITH RESPECT TO TELEPHONE

They are as follows:-

1. NEED IDENTIFICATION

When the buyer recognize a gap between his desired state and the actual state, buying
process starts. Such recognition maybe caused by stimuli either internal(self) or
external(by environment or marketer). At this stage, marketer should help consumers
identify their current and future problems and felt or latent needs. To do this,
marketer have to research on consumer problems and needs. In case of telecome
motors they should try to create a stumulus in the rural buyers so that they can
understand them well. Customers are more demanding because there is a need of
instant connectivity with the other people.
• It helps in access to health care and other allied services in the time of urgency.

• It gives timely information on business, price, market, and demands within few
minutes and that to paying a very small amount of price.

• It helps in better coordination for delivery of administration and public services

including health, education, etc.

• It provides information about employment and generates opportunities to women

and underprivileged people regarding selfemployment and income resources.

• It interacts with neighbouring market regarding business expansion and creates

more job opportunities in the local market.

• It creates an atmosphere of national and regional integration, economic

diversification, employment, and promotes socio-cultural relation.

• It also opens gateway to the foreign participants in rural sector and establishes a
spirit of competitiveness with the Indian players in development of rural
infrastructure and economy.

• Besides, in the present era of information technology, the telecom services are
important for all round development of the society.

INFORMATION SEARCH:

Generally, a rural people get information through the television,radio,outdoor

advertisement, hoarding, farmer –farmer/house-house, group meeting, opinion
leaders, friends etc. The amount of information required depends upon:

• Types of product: BSNL,AIRTEL,RELIANCE,IDEA etc.

• Nature of the product: voice clarity, instant connectivity, low call rate, offers and
schemes

• Availability of sources: easily available recharge, nearby telecom office.

• Personal: personal contacts, friends, relatives,

• Commercial: advertisement, campaign,

• Public: word of mouth, reference group, opinion leaders etc.

EVALUATION OF ALTERNATIVES

The evaluation process may be done more carefully and logically in telecom
service, for example voice clearity, people like to have such a telecom service
which has good tariff with cheaper call rate. Rural people has many options for
the telecom services, among which they choose a best one. The various telecom
services provided in the rural areas are like:-

• BSNL

• AIR TEL

• RELIANCE

• IDEA

Rural people don’t move out for the information they gather information by
interacting with eachother in the village. The people who live in the village are
mostly farmers and they hardly get time to move outside of the village so they
gather their information by word of mouth, friends ,relatives or through radios.
Mostly all of them in the rural areas have the radio so this is the best and easy way
to gather the information.

PURCHASE DECISION

All the existing above brands in the market make a total set. Though information
search consumer will become aware of some brands in the total set. Awareness
set consists for brands which the consumer is aware of the brands, which meet
initial , buying criteria, will be considered for further evaluation, they make up the
consideration set. Through application of final criteria, the consumer evolves his
choice set. All the brands in this set are acceptable to the consumer. However the
final choice will be made in favour of one service. The choice is dependent upon
factors influencing the mind of consumer at this final state.
The purchase decision vary place to place because people living in the interior
part of the village hardly think of affording the telecom service because to have
that they have to travel a long distance. People residing near the urban area can
easily think of having a telecom service. Today every people who live in the rural
area are utilizing the telecom service because it has become the essential part of
their life. Today lots of people from the rural areas are migrating towards the
cities so to keep in touch with them they decide to have telecom service. Prices
and offers affects the purchase decision of the people of rural areas. The brand
which give them cheep and best offer people move towards them. Like today
airtel has grabbed the market in the rural areas.

POST-PURCHASE BEHAVIOUR

In case of telecom services a buyer feels satisfied when the perceived product
performance is close to his/her expectations, if it exceeds expectation, the
customer is delighted. If it falls short of expectations, the customer is
disappointed. Once BSNL was the ruled in the rural areas because the post
purchase behavior of the people was to have a telecom service for the emergency
but today people has much expectations from this service. They want the cheap as
well as service with schemes which are so called tariffs. The company which
which provides they good net work service with no interruption with schemes and
offers people movie towards them.

CONCLUSION

Consumer is the basic foundation of every business. What consumer sees, thinks
prefers and buys is of great importance to marketers to fine tune their marketing
offers and achieve high level of consumer acceptance and satisfaction. The
emergence of rural market as a viable proposition has sparked a new interest
among marketers to explore and understand them.
Apart from the 200.77million fixed and WLL connections on March 2010
provided in the rural areas, 570000 uncovered VPTs have been provided as on
March 2010. Thus, 96% of the villages in India have been covered by the VPTs.
More than 3 lakh PCOs are also providing community access in the rural areas.
Further, Mobile Gramin Sanchar Sewak Scheme (GSS) – a mobile Public Call
Office (PCO) service is provided at the doorstep of villagers. At present, 2772
GSSs are covering 12043 villages. Also, to provide Internet service, Sanchar
Dhabas (Internet Kiosks) have been provided in more than 3500 Block
Headquarters out of the total 6337 Blocks in the country. The target of 80 million
rural connections by 2010 have already met during year 2008 itself. USOF
subsidy support scheme is also being utilized for sharing wireless infrastructure in
rural areas with about 19,000 towers by 2010.

REFFERENCE

http://www.articalbase.com/marketing-articles/consumer-behaviour-in-rural-
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http://voicendata.ciol.com/content/top_stories/207120201.asp

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www.trai.gov.in
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