RURAL MARKETING

Marketing:Identifying the needs of customers and potential customers, providing products/services that

satisfy their needs, and developing efficient processes or systems to deliver your product/service

to the market when, where, and how consumers want it.

Rural Marketing:Rural marketing is now a two-way marketing process. There is inflow of products into rural

markets for production or consumption and there is also outflow of products to urban areas. The

urban to rural flow consists of agricultural inputs, fast-moving consumer goods (FMCG) such as

soaps, detergents, cosmetics, textiles, and so on. The rural to urban flow consists of agricultural

produce such as rice, wheat, sugar, and cotton. There is also a movement of rural products within

rural areas for consumption

MARKETING PROCESS INRURAL MARKETING

URBAN TO RURAL• Major part of rural marketing. Includes transactions of urban marketers

who sell their goods and services in rural areas pesticides, fertilizers, FMCG products, tractors, bicycles, consumer durables, etc.

RURAL TO URBAN• Basically falls under agricultural marketing. A rural producer seeks to

sell his produce in urban market like seeds, fruits and vegetables, forest produce, spices, milk and related products, etc.

RURAL TO RURAL

• Includes the activities that take place between two villages in close proximity to each other like agricultural tools, handicrafts, dress materials, bullock carts, etc.

CHAPTER- 2 EVOLUTION OF RURAL MARKETING

PHASE ORIGIN FUNCTION MAJOR PRODUCT SOURCE MARKET

DESTINATION MARKET

Phase I Before mid1960(From independence to Green revolution)

Agricultural Marketing Agricultural produce Rural Urban

Phase II Mid sixties(Green revolution to Pre-liberalization period)

Marketing of Agricultural inputs

Agricultural inputs Urban Rural

Phase III Mid nineties(Post-liberalization period in 20th century)

Rural Marketing Consumables and durables for consumption and production

Urban and rural Rural

Phase IV 21st century Developmental Marketing

All products and services Urban and rural Urban and rural

RESEARCH

SEGMENTATION

LIFESTYLE ANALYSIS

PROFILE STUDY

DEFINING NEEDS

TARGET MARKET

MARKETING MIX

IMPLEMENTATION

CONTROL

CHAPTER-3Rural Marketing Model

CHAPTER – 4MARKETING MIX OF RURAL MARKETING

PRODUCT PRICE

PLACE PROMOTION

The concept of Rural Marketing in India Economy has always played an influential role in the

lives of people. In India, leaving out a few metropolitan cities, all the districts and industrial

townships are connected with rural markets.

The rural market in India is not a separate entity in itself and it is highly influenced by the

sociological and behavioral factors operating in the country. The rural population in India

accounts for around 627 million, which is exactly 74.3 percent of the total population.

The rural market in India brings in bigger revenues in the country, as the rural regions comprise

of the maximum consumers in this country. The rural market in Indian economy generates

almost more than half of the country's income.

CHAPTER-5RURAL MARKETING IN INDIAN ECONOMY

CHAPTER6-SIGNIFICANCE OF RURAL MARKETINGIf you meet a sales executive today and ask which market he would prefer to serve, the immediate answer would be, “Rural Markets”

as they are still unexploited. A number of factors have been recognized as responsible for the rural market boom.

Some of them are:

1.Increase in population, and hence increase in demand. The rural population in 1971 was 43.80 crores, which increased to 50.20

crores in 1981, 60.21 crores in 1991 and 66.0 crores in 2001.

2. A marked increase in the rural income due to agrarian prosperity.

3. Large inflow of investment for rural development programmes from government and other sources.

4. Increased contact of rural people with their urban counterparts due to development of transport

and a wide communication network.

5. Increase in literacy and educational level among rural folks, and the resultant inclination to lead

sophisticated lives.

6. Inflow of foreign remittances and foreign made goods in rural areas.

CHAPTER-7DIFFERENCE BETWEEN RURAL AND URBAN

MARKETS.NO Aspect Urban Rural

1. Philosophy Marketing and societal Concepts, Green marketing and relationship marketing.

Marketing and societal concepts, development marketing, and relationship marketing

2. Market (a) Demand (b) Competition (c) Consumers Location - Literacy - Income - Expenditure - Needs - Innovation adoption

High Among units in Organized sector Concentrated High High Planned, Even High levelFaster

Low Mostly from unorganized Units Widely spread Low Low Seasonal variations Low level slow

3. Product - Awareness - Concept - Positioning - Usage method - Quality preference - Features

High Known Easy Easily grasped Good Important

Low Less known Difficult Difficult to grasp Moderate Less important

CHAPTER-8VALUE ADDITION TO RURAL MARKETING

VALUE ADDITION TO RURAL MARKETINGAfter understanding the differences between rural and urban market, it is essential to understand

the needs of rural people and redesign marketing plan to make it more rural specific. The

following points must be strongly considered;

1. Know the importance of women.

2. Offer small unit packing. JK Dairy Top sachets revolutionized the market.

3. Reinforce product quality through service initiatives. Hero Honda has established mobile

service centers to take care of rural customers.

4. Establish one-to-one communication channels. Reckit & Colman uses NGOs in rural area to

educate customers about product benefits.

5. Use local idioms to convey your message in a meaningful context.

6. Core values of brand must strike the consumer.

7. Go rural and be rural.

8. Groom a separate set of professionals more conversant with the rural markets.

CHAPTER-9FACTORS CONTRIBUTING CHANGE IN RURAL

MARKETING

Emerging Role of Bio-Tech. in Indian Agriculture Sector

Rural Communicatio

n

Development programmes

Green Revolution

CHAPTER-10 ROLE OF MEDIA IN RURAL MARKETINGThe growth in conventional media has been quite significant; however, it has not been

substantial. Rural India consists of about 127 million households of which only 54% comes in

contact with any of the conventional media, like press, TV, satellite, radio or cinema. That

means roughly 238 million are waiting to be tapped by the conventional media. No wonder,

rural India is a marketer and advertiser’s El Dorado.

It should be acknowledged that different media mix is needed to convey messages to rural

consumers. There is a need to understand what appeals to urban customers may not be

appropriate for their rural counterparts owing to their different lifestyle. The entire

communication and also the vehicles for the communicated message thus have to be different. It

has been noticed that below-the-line communication like alternative and innovative ways of

communication played a key role in building reassurance and trust, and so it is vital.

CHAPTER-11ROADBLOCKS OF INDIAN RURAL MARKETING

Transportation

Warehousing

Availability of appropriate

media

Communication

Village Structure in

India

CHAPTER-12COMPANIES INVOLVE IN RURAL MARKETING

•The popular image of a rural consumer is of one who has limited educational background, is

exposed to limited products and brands, chooses price over quality, and is influenced by word-of-

mouth communication. There is also the view that a rural consumer is no different from his urban

counterpart. Changing consumption patterns reflect the evolving lifestyle of rural consumers.

•Examining the lifestyle of the rural consumer helps to understand the consumption pattern and

the influence of the environment on consumer behavior.

CHAPTER – 13UNDERSTANDING RURAL CONSUMER

CHAPTER-14SOME SUCCESS STORIES of RURAL

MARKETING

CONCLUSIONA silent revolution is sweeping the Indian countryside. The marketing battle fields has shifted from the cities to the

villages but in this battle both consumers and companies are winners, it is a win-win situation. ’GO RURAL’ seems

to be the latest slogan. Go and meet the villagers and ask them what they want. Create the products and services

that is relevant to their needs and it is the high time for the companies to focus, luxuries as necessities for the Indian

rural customers.

SUGGESTIONS•The rural advertising needs some innovative and alternative media to woo the

customers.

•Proper utilization of resources required.

•Marketers can overcome these barriers and explore the opportunities lying untapped in

rural market to achieve organizational goal-profit maximization.

BOOKS

● Rural Marketing by “Pradeep Kashyap”

MAGAZINE

● A Light of hope for Rural India.

WEBSITE

1. www.slideshare.com

2. www.msn.com

CHAPTER-16BIBLIOGRAPHY

THANK YOU