Rural Marketing Strategies of Micro Finance Institutions- a View

|market, according to Winer and Dhar “Positioning takes the competitive advantage and plants in the mind of customer so that it is clear what |

However, the concept of rural markets, in India, is still evolving and possesses like any other sector its own set of opportunities and challenges. The primary objective of this study will be understanding

10. In class we briefly discussed Micro Finance institutions (MFIs). What markets do MFIs typically serve? What are the major criticisms of MFIs? What financial institutions in the US closely resemble MFIs?

In both developing and emerging economies, microfinance has vastly and increasingly been seen as one of the most important means for enhancing the lives of the poor and therefore a major tool for economic and social development mostly in rural areas. Lately, contrary to this widespread belief, critics have raised eyebrows against this growing popularity of microfinance as a major tool for enhancing economic development. Contrary to belief, they are of the opinion that microfinance is a ‘make-belief’ that is hindering economic and social development rather than enhancing it.

Many families in developing nations do not have sustainability in their lives. In her article, “Microfinance Empowering Female Entrepreneurs”, Elizabeth Matsangou writes, “starting and growing a business is virtually impossible without access to financial services.” Basically, Matsangou is saying that in order to start a business, you need help with the use of micro-loans. Further proving the point that micro-loans that empower women and women need these loans. Many women in developing countries start micro-enterprises to help raise money for their family. With this in mind, it is obvious to see what kind of positive impact micro-loans can have on women. Starting businesses are nearly impossible without the use of micro-loans, proving that they can help empower

Microfinancing produces many benefits for poverty stricken, or low- income households. One of the benefits is that it is very accessible. Banks today simply won’t extend loans to those with little to no assets, and generally don’t engage in small size loans typically associated with microfinancing. Through microfinancing small loans are produced and accessible. Microfinancing is based on the philosophy that even small amounts of credit can help end the cycle of poverty. Another benefit produced from the microfinancing initiative is that it presents opportunities, such as extending education and jobs. Families receiving microfinancing are less likely to pull their children out of school for economic reasons. As well, in relation to employment,

Developments of a more appealing offer for each segment so that the customers are more likely to be delighted or at least satisfied. Positioning is the process of placing the product in a clear distinctive and desirable place in the mind of the competitors in order to gain an upper edge.

Positioning is the process of designing the company’s offering and image to occupy a distinctive place in the minds of the target market (Kotler and Keller, 2006). Scientists Etzel, Walker and Stanton (1997) refer positioning as the management’s ability to bring attention to a brand and to differentiate in its favorable way from similar products in different brands. However, Ries and Trout (1986) emphasizes that positioning is not what is done to product/brand, positioning is what you do to the mind of the prospect. According to Vukasovic (2009), the positioning of a brand is ultimately depends on the consumer, and how they perceive the overall quality, attributes, value, price, and image of the brand. In short,

Almost half of the world lives on less than $2.50. At least 80% of humanity lives on less than $10 a day. According to UNICEF, 22,000 children die each day due to poverty. Poverty is an ever-present issue that affects the lives of billions of people each day. There are many government subsidies that come into impoverished areas, but does money solve the issue of poverty? No, money alone cannot solve the world’s issue of poverty. In this paper, I want to discuss the role of microfinance in the developing world. Microfinance can be done poorly, which will continue to stunt the economic growth of an area, but if done properly microfinance can being human flourishment to a developing area. In order to take a closer look into microfinance, I will highlight the efforts that Kiva, an online lending company, has done to improve the economic horizon for many areas of the world.

Anup Shah claimed on the Global Issue website, “Almost half the of world’s population, which is over three billion people, live on less than two and half dollars a day” (Globalissue.org). This is the poverty level. To reduce poverty effectively many of us have donated money to aid the poor, the question arises weather there are other ways to reduce poverty effectively. Traditional approaches like charities, social programs and government assistance are conductors to reduce poverty levels. However, Mohammed Yunus proposes to reform the financial system and increase social awareness due to the escalating gap between the wealthy and poor. Specifically, Yunus plans for micro lending and social business are viable options he proposes as they

specific elements of your Positioning Strategy by writing down how each applies to your business in

Microcredit can be defined as small loans, or microloans, for people around the world in extreme poverty to help spur entrepreneurship. The issue of microcredit is extremely important in the world’s economy. Poverty alleviation and economic development are the primary goals of microcredit programs, that is why they began in the developing countries of Asia and Latin America, economist Muhammad Yunus and his Grameen Bank in Bangladesh are credited of pioneering this financial innovation (Smith, Thurman, 2007). After acquiring a loan, impoverished people get involved in self-employment projects that help them to start a business and begin generating income and in many cases leave poverty. Microcredit offers loans to poor people without

Empower your current position, and make the image that you are the right choice brand because you are the best or have a competitive advantage.

The advertising strategies of the organization should be made impacting to the market by increasing product demand which follows desirable designs. Well structured promotion will certainly increase the market price of the electronic products in the small business. Brand promotion can just but increase demand but cannot create it. Tasks associated with promotion are mainly: brand development, creating product image as well as brand loyalty.

Marketing of an financial institution is different from other industries. A Financial institution has a very unique product range. Lets take a credit card as an example: You have done the market research, using focus groups, surveys and on-line market-research to identify the features that will be of value to your target market. To differentiate your product from competitors you will identify the advantages and communicate them to the prospective clients. This is all classic product marketing.