1. Rajendran ananda krishnanhttps://www.facebook.com/ialwaysthinkprettythings

2. Topics to be covered Definition, Scope of Rural Marketing Concepts, Components of Rural Markets Classification of Rural Markets Rural Vs Urban Markets https://www.facebook.com/ialwaysthinkprettythin gs 3. Definition According to the National Commission on Agriculture Rural Marketing is a process which starts with a decision to produce a saleable farm commodity and it involves all the aspects of market structure or system, both functional and institutional, based on technical and economic considerations, and includes pre and post harvest operations , assembling, grading, storage, transportation and distribution. According to Thomsen the study of Rural Marketing comprises of all the operations, and the agencies conducting them, involved in the movement of farm produced food, raw materials and their derivatives, such as textiles, from the farms to the final consumers, and the effects of such operations on producers, middlemen and consumers.https://www.facebook.com/ialwaysthinkprettythings 4. Rural marketing has also been defined as the process of developing, pricing, promoting, distributing rural- specific goods and services leading to exchange between urban and rural markets, which satisfies consumer demand and also achieves organisational objectives.https://www.facebook.com/ialwaysthinkprettythings 5. UrbanRural 1. Agricultural products 1. Small Agricultural Rural(Food grains etc.) Tools. 2. Oil seeds, Cotton,2. Household earthenTobacco, Sugar, Cane items, wooden itemsetc. etc. 3. Handicrafts and RuralIndustry Products1. Consumables and consumer durables.Not 2. Agricultural inputsUrban concernedlike seeds, fertilizers, pesticides, tractors etc.3. Services like Health, education, Market information etc.https://www.facebook.com/ialwaysthinkprettythings 6. Census Record Rural Population in India : 64.8% Rural nail polish market : Rs 270 million against Rs 81million. Rural market for lipstick : Rs 250 million against Rs 131million. Rural market for face cream : 1099 tonnes against 426tonnes. Shampoo market ; 2257 tonnes against 718 tonnes. Mosquito Repellant Market : Rs 173 million against Rs79 million. https://www.facebook.com/ialwaysthinkprettythin gs 7. Scope of Rural Marketing The difference in rural and urban sector is due to vast difference in: Income level Expenditure capacity Taste and preferences Educational level Social, Cultural and environmentalFollowing Service areas have great potential in rural markets: 1. Agricultural consultancy:Rural customers require proper consultancy services about the bestmethods, timings and seasons, technology, tools, prices and best marketsfor selling their farming products. 2. Banking, microfinance and loan facilities:The rural market has huge potential for banking services for providingfollowing facilities at affordable prices: Agricultural loans Educational loans Housing loans Savings accounts and safe deposits Automobile loans Personal loans https://www.facebook.com/ialwaysthinkprettythin gs 8. 3. Healthcare:The availability and location of these services is of great concern as most of the areas either do not have anyor many rural and remote areas needs to be dependent on very few and distantly located Hospitals 4. Telecomm services:The governments policies for reduced tariffs, call rates, lesser mobile handset prices and privateparticipation involvement has helped in increasing the level of competition, continuous improvement intechnology and thus has resulted in the growth of the rural telecomm market 5. Automobiles Services:There has been a huge increase in the number of two wheeler, four wheeler and Agricultural tools andvehicles in past few decades because of reduction in prices and government support to the rural population.This has given rise to a new business for providing maintenance and repair services to rural consumers. 6. T.V. Channels Services:Due to the increased awareness, arenas of interest, leisure requirements, and number of entertainmentoptions like televisions and computers due to reduced & affordable prices, the demand for entertainmentservices like T.V. entertainment channels have increased. Many companies have already gained profits bytargeting rural markets which include Airtel (DISH TV), Reliance (BIG TV), and Tata (SKY). 7. Travel and reservation Services:The travel and reservation booking and organizing services for booking train, busses, taxies and tourconsultancy has also been observed to create a huge demand in last few decades as more and more ruralpopulation need to mobilize for business and personal reasons. 8. Low Cost Hotels:Due to increased mobilization because of business and personal needs, there is also increased demand forhotel and lodging services to the travellers.https://www.facebook.com/ialwaysthinkprettythings 9. 9. Event Managements:The rural population are majorly involved in celebrating and organizing festivals, whichrequire lighting arrangements, venue decoration, food, lodging, transportation, cateringand event planning etc. for:i. Family gatherings, Marriages, engagements, birthday parties,etc.ii. Festivals like Diwali, Onam,Christmas, lohri, Eid, Dushera, Kannada Rajamahotsava,Navratri, Garba and Dandia mahotsava etc. 10. Beauty Parlours:As there has been major improvement in the quality of life style and increased awarenessamong the rural customers (especially females), there has been great demand observed forbeauty products and services. This market is still dominated by unorganized and localplayers who lack adequate tools, methods, skills, process, technology and beauty productsto meet the demand of rural population. 11. Affordable Movie theatres:Till now the entertainment service providers for movie theatres at affordable prices inrural markets are dominated by local and unorganized players who lack proper facilitiesand infrastructure as well as quality delivered. 12. Educational and Career consultancy:The rural markets lack adequate and quality educational services which are majorlycatered by government agencies and bodies. But due to lack of proper infrastructure,expertise, knowledge, talent, funds and participation of the service provider, this sector isunable to meet the desired level of service expectation of the rural customer for careerbuilding.https://www.facebook.com/ialwaysthinkprettythings 10. Emerging Areas in Rural Marketing Agri-Business Management NGO Management Natural resource Management Rural Infrastructure Management Micro-finance Corporate Social Responsibilityhttps://www.facebook.com/ialwaysthinkprettythings 11. Distinction between Rural andUrban MarketsUrban Market Rural Market 1. City has a large population 1. Village is a human settlement with size growing at a fast growtha small administrative unit. It rate due to immigration from comprises few hundred households rural areas for education andand the population growth due to employment. The population immigration is insignificant. density is high. Towns are Migration from village to city/town smaller urban units. is to get better education andemployment. 2. The city settlement is2. Village has land for human compact though spread over settlement and for cultivation. a larger area. Land use is The settlements are residential, commercial ,predominantly clustered but in industrial roads and streets,some areas households settle on institutional and communityrespective cultivable land facilities etc.holdings. https://www.facebook.com/ialwaysthinkprettythin gs 12. 3. Structure of houses is3. Houses are largely semi-pucca orpermanent and often rises to kachha. They are owner occupied.more than one storey. Housingon rental is highly prevalent. 4. Land is the primary resource for4. Primary resource base is livelihoods. Other forms of resourcesproduction and distribution of are water bodies, forests , andindustrial goods and services. mountains. Cows, buffaloes and poultry are kept for household need for milk, eggs and meat.5. Occupations are diverse5. Predominant occupations areranging from professionals,cultivation and agricultural labour.skilled, semi-skilled to unskilledworkers. Higher education andtraining is required to buildskills.https://www.facebook.com/ialwaysthinkprettythings 13. 6. Free from traditionaloutlook. More scientific6. Rigid, conservative in approachapproach to the issues. and custom bound. Society isguided by age old customs. Noscientific outlook.7. Media reach is very7. Media reach is very low.high. Marketers generally Marketers prefer Radio,prefer Televisions, loudspeaker on rickshaws tointernet and print mediareach to the target customers.to be reached to thetarget customers. https://www.facebook.com/ialwaysthinkprettythin gs 14. Nature of the Rural Market Largeand Scattered Market Consists ofapproximately 75 crore rural consumers who live inapproximately 638365 villages spread over 32 lakhsquare km area. Covering such a large and widelyscattered geographical market, raises the inventoryand transportation costs. Heterogeneous Market As many as 20000 ethnicgroups are present in rural India. There are 24languages and 1624 dialects and the dialect varies every100 km, making it extremely difficult to develop auniform promotional message. Divisions based oncaste, community and other factors also continue toexist. https://www.facebook.com/ialwaysthinkprettythin gs 15. Income from Agriculture Nearly 55% of ruralincome comes from the agriculture sector, hence ruralprosperity is tied with agricultural prosperity to a greatextent. Standard of Living Over 70% of the ruralpopulation is employed in small-scale agricultural andrelated occupations. This dependence on agricultureand natural factors has led to an acute seasonality andhigh chance element in income receipts in rural areas. Infrastructural Facilities Roads, warehouses,communication system and financial facilities areinadequate in rural areas. Roads do not connect nearly50% villages in the country. Over 50% ruralhouseholds have access to electricity as a main sourceof lighting but 46% still use kerosene for lighting. https://www.facebook.com/ialwaysthinkprettythin gs 16. Classification of Rural MarketRuralEconomy Farm Sector Non-farm sector (Formal &(Agri & Allied)Informal sector)Agriculture Rural Industries Rural ServicesAgro ProcessingRetailing & (Sugarcane,TradingAnimal Husbandry Oilseed etc.) Manufacturing Community &(Handloom, Social Service HorticultureHandicrafts etc.)Mining, Communication Construction Forestry, Fishing https://www.facebook.com/ialwaysthinkprettythin gs 17. Classification of Economic Activity Primary Sector Agriculture and allied services suchas livestock, fishing and forestry. Secondary sector Mining and manufacturingactivities. Tertiary Sector Services such as transport,communication, trade, financial services andcommunity services.https://www.facebook.com/ialwaysthinkprettythings 18. Transition 1. Non-food graincrops, cash crops2. Off-land activities1. Food grain crops like livestock and 2. On-land activities fisheries 3. Farm activities 3. Non-farm activities, includes manufacturing and services.https://www.facebook.com/ialwaysthinkprettythings 19. Mandis Agricultural markets set up by state government to procure agricultural products directly from farmers. Located in high production centres of different crops, these markets may be categorized as grain mandis, soya mandis, cotton mandis. Most agricultural areas with a Population of more than 10000 have mandis and caters to 136000 population. Displays the latest commodity prices. The price quote from the seller may vary depending on factors such as quantity, packaging, delivery terms, payment method etc. https://www.facebook.com/ialwaysthinkprettythin gs 20. Road Connectivity Pradhan Mantri Gram Sadak Yojana It was launched in December 2000 with the objective of providing connectivity through good all-weather roads to all unconnected habitations with a population of more than 500 persons, with an anticipated investment of Rs 60000 crore. https://www.facebook.com/ialwaysthinkprettythin gs 21. Mobile Postman Scheme The scheme is designed to make a telephone available at the doorstep of every rural household. Under the scheme, a mobile telephone will be provided to a postman. When the postman goes to a house to deliver a letter, he will carry a telephone with him. Since a postman reaches practically every house, the scheme will enable the telephone services to be made available practically to all citizens in his area.https://www.facebook.com/ialwaysthinkprettythings 22. Pradhan Mantri Gramodaya Yojana This Yojana for the primary health sector is an initiative to strengthen and revitalize the primary health infrastructure for the improved provisioning of basic minimum services in rural areas so as to improve the quality of life. The Planning Commission of India has allocated additional Central Assistance of Rs 2800 crore for six sectors, i.e. rural electrification, primary health, primary education, shelter, drinking water and nutrition.https://www.facebook.com/ialwaysthinkprettythings 23. Rural Electrification Indian planners visualized the necessity of ElectricalEnergy and included it in the Five Year Plans. A rural electrification programme was devised forincreasing the infrastructural input for agriculturalproduction programs. To implement the programeffectively, the Rural Electric Corporation (REC) wasset up. REC has been a catalyst for rural development. TheCorporation has sanctioned financial assistance of Rs.28,588 crore under 37335 rural electrification projectsso far. About 3.05 lakh villages have been electrifiedthrough REC funded schemes. Over 78 lakh pumpsets stand energised with thecorporations assistance.https://www.facebook.com/ialwaysthinkprettythings 24. Public Distribution System Distribution of essential commodities to a large number of people through a network of FPS (Fair Price Shops) on a regular basis (often referred to as ration shops). The commodities distributed are wheat, rice, sugar, edible oil and kerosene. https://www.facebook.com/ialwaysthinkprettythin gs 25. Haats Haats (Periodic markets) play an important role in the rural economy as well as in the social life of villagers. First point contact for villagers with the market. Means of distributing local products and exchanging agricultural surplus. Opportunity for buying daily necessities as well as farm supplies and equipment. A place for political, social and cultural contact.https://www.facebook.com/ialwaysthinkprettythings 26. Melas Serve as the meeting ground for people from differentcommunities and religious groups, for livelihood andagricultural commodities, for crafts and craftsmen andfor displaying various skills. Melas are gatherings of people away from theirresidences for entertainment and for the sale andpurchase of goods and services at a particular time. Melas may be classified on the following basis:o Religious, cultural or commercial (commodity, cattle,exhibition)o Local, regional and nationalo One day, short duration or long duration. https://www.facebook.com/ialwaysthinkprettythin gs 27. Regional Rural Banks Set up under an Act of Parliament in 1976 with theobjective of developing the rural economy through thepromotion of agriculture, trade and commerce andindustry and by extending credit to small andmarginal farmers. Authorized capital of RRB is Rs. 5 crore.https://www.facebook.com/ialwaysthinkprettythings 28. Cooperative BanksThere is a three-tier pyramidal cooperative creditstructure in the rural cooperative banking sector, withthe State cooperative bank (SCB) at the state level District Central Cooperative Bank at the district level Primary Agricultural Cooperative Society at the villagelevel, essentially to ensure flows of short-term credit forproduction purposes.https://www.facebook.com/ialwaysthinkprettythings 29. NABARD NABARD has been the primary governmentinstitution dedicated to developing systems anddelivering institutional finance in rural for both thefarm sector and the non-farm sector. It refinancesassistance for financing farm mechanization, i.e.purchase of tractors, power tillers and also theaccessories. It also provides agricultural credit through the KisanCredit Card. This scheme aims at the provision ofadequate and timely support from the banking systemto the farmers for their cultivation needs, includingthe purchase of inputs in a flexible and cost-effectivemanner.https://www.facebook.com/ialwaysthinkprettythings 30. Innovations in the rural creditdomains by NABARD Self-help groups and micro finance Farmers clubs Rural Infrastructure Development Fund Watershed Development Tribal Development Women and Development District Rural Industries Project Rural Entrepreneurship Development Programme Rural marketing Revival of the Short term Rural Co-operative Structure Co-financinghttps://www.facebook.com/ialwaysthinkprettythings 31. DRDA (District Rural Development Agency) It has been the principal organ over the years at the district level for overseeing the implementation of various anti-poverty programs. https://www.facebook.com/ialwaysthinkprettythin gs 32. Employment Opportunities With the objective of promoting self-employmentamong the educated unemployed rural youth,government programs such as the Pradhan MantriRojgar yojana and the Integrated Rural DevelopmentProject, were developed. These programs aim toprovide skill-based training and link access to bankcredit(subsidized).https://www.facebook.com/ialwaysthinkprettythings 33. Sampoorna Grameen Rojgar Yojana The Employment Assurance Scheme and the JawaharGram Samridhi Yojana are two schemes under theprogramme. The EAS is meant to create additionalemployment opportunities during periods of acuteshortage of wage employment through manual work forthe rural poor living below the poverty line. The JGSY aims at the creation of need-based ruralinfrastructure at the village level.https://www.facebook.com/ialwaysthinkprettythings 34. Rural Housing The Central government announced a National Housing and Habitat Policy in 1998 aiming to provide Housing for All by facilitating the construction of 20 lakh additional housing units annually.https://www.facebook.com/ialwaysthinkprettythings 35. https://www.facebook.com/ialwaysthinkprettythings