RURAL MARKETING

PRESENTED BYSurabhi Agarwal &

Pawan Kumar Umrao

MBA 2nd Year(3rd Sem)

[2011 Batch]

INSTITUTE OF BUSINESS

MANAGEMENTCSJM University

Kanpur

WHAT IS RURAL?B.N. Garudachar, general manager,

corporate communication and investor relations at Voltas, a Tata group company in air-conditioning and engineering services. “Rural areas are: low population numbers, low median income, poor infrastructure [roads, electricity, communications], and agrarian rather than industrial activity. Such rural areas are within the sphere of influence of neighboring cities and metros.

83.30%16.60%

TOTAL NO OF VILLEGES

LESS THAN 2000

1 Village

POPULATION

MEDIANLook at these numbers:

3, 13, 7, 5, 21, 23, 39, 23, 40, 23, 14, 12, 56, 23, 29

If we put those numbers in order we have:

3, 5, 7, 12, 13, 14, 21, 23, 23, 23, 23, 29, 39, 40, 56There are fifteen numbers. Our middle number will be the eighth number:

3, 5, 7, 12, 13, 14, 21, 23, 23, 23, 23, 29, 39, 40, 56

The median value of this set of numbers is 23.

INFRASTRUCTURE

OCCUPATION

76.00%24.00%

DEPENDENCY OF RURAL POPULATION

Depends Upon

Cultivation or

Wages

LIVELYHOOD SOURCE

RURAL MARKETING

RuralConsum

ers

Function

Effective Demand

manages all activities involved in

Assessing

Converting

Stimulating

Purchasing Power OfInto an

For a Particular

Product

Services

&

Moving to

Satisfactio

n

TYPES OF RURAL MARKETING

URBAN

RURAL

URBAN

RURAL

RURAL

RURAL

NATURE & CHARECTERSTICS OF RURAL MARKET

Shift towards rural markets are mainly because of saturation and competitiveness of urban market. Marketers do not want to neglect this huge untapped market.

COMPETETION

DIVERSE NATURE

The rural markets are of diverse nature. There are people from diverse cultural, linguistic and religious background. No two markets are alike and it is dispersed across India.

INCOME RATE

The country's per capita income, often used to measure a country's standard of living, increased by per cent during 2009-10 to Rs 46,492

2004-05 2008-09 2008-100

10000

20000

30000

40000

50000

16327

4060546492

Increasing Income Rate

Income in thousand per year

14.5

1981 20010%

10%

20%

30%

40%

50%

60%

36%

59%

Increasing Literacy Rate

20100%

20%

40%

60%

80%

100%

60%

People Lies Below middle

Education bracket

LITERACY RATE

Rising literacy has generated a demand of life style products. Lot of youth move out of the village and visit surrounding cities. They come back and influence decision making.

COMMUNICATION MEDIUM

Cable television has also contributed to an increase in life style. The reach has increased and marketers are in a position to promote their products much more easily.

POTENTIAL OF RURAL MARKET

LARGE POPULATION

GROWTH IN MARKET

IMPACT OF GLOBALIZATION

INCREASING INCOME AND PURCHASING POWER

POTENTIAL OF RURAL MARKET

ACCESSIBILITY OF MARKETS

CONSUMER BEHAVIOUR CHANGES

GREEN REVOLUTION

VARIOUS GOVERNMENT POLICIES

POTENTIAL OF RURAL MARKET

BETTER CREDIT FACILITIES THROUGH BANKS

GREEN CARD / CREDIT CARD FOR FARMERS

MEDIA

POLITICAL & SOCIAL CHANGES THROUGH FAVOURABLE GOVERNMENT POLICIES

REFERENCEhttp://zenithresearch.org.in www.ddegjust.ac.in