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INTRODUCTION
Rural marketing is defined as managing all
the activities involved in assessing,
stimulating and converting the purchasing
power of the rural consumers into effective
demand for specific products and services
and moving them to the people in rural
areas to create satisfaction and a better
standard of living and thus achieving
organizational objectives.
Cont.
rural areas.
Cont.
50% BSNL mobile connection in small villages.
Estimated annual size of rural market:
OPPORTUNITIES
LARGE POPULATION: 742 million Indians
constituting 138 million households reside in
6,40,867 villages (Census, 2011). The size of rural
market itself speaks of its potential
GROWTH IN MARKET: The market has been growing
at 3-4% per annum adding more than one million
new consumers every year.
TECHNOLOGY USED BY RURAL INDIA: Today's rural
children and youth will grow up in an environment
where they have 'information.
Cont.
INCREASING INCOME AND PURCHASING POWER:
The agricultural development programs of the
government have helped to increase income in the
agricultural sector. These in turn have created
greater purchasing power in rural markets.
Cont.
INCREASE IN LITERACY RATE :Literacy rate is
increasing in rural areas. According to census 2011 it stood
at 68.9% (2001 census 58.7%).
Cont.
INFRASTRUCTURE IMPROVING RAPIDLY : In 50
years only, 40% villages have been connected by roads, in
next 10 years another 30% would be connected. Rural
telephone density has gone up by 30% in the last 10 years.
Cont.
MARKET SIZE AND POTENTIAL :The size of India s
rural market is stated as 12.2 % of the worlds consumers
leave in rural India . In India, rural household farm about
72% of total household constitutes a huge market by any
standard.
Cont.
ACCESSIBILITY OF MARKETS: The road network has
facilitated a systemized product distribution system to
villages. An increasing number of companies are supplying
village markets directly. Increasing direct contacts to villages
helps product promotion and availability of the product in
the village shop.
CONSUMER BEHAVIOUR CHANGES: Increased literacy
and greater awareness in rural markets create new demands
and discriminating buyers. This is observed more in the
younger generation. In villages today, this segment of buyers
consumes a large variety of products, both durables and12
non-durables. There is a visible increase in the consumption
and use of a variety of products , which is easily observed.
Cont.
INCREASE POPULATION AND HENCE INCREASE IN
DEMAND :The Rural market in India is vast and
scattered and offers a plethora of opportunities in
comparison to the urban sector. It covers the maximum
population and regions and thereby. the maximum
number of consumers. More than eighty percent of rural
markets in India still do not have access to any sort of
organized marketing and distribution.
Cont.
(For example
Lack of electricity automatically increase the purchase of batteries by
rural consumers.: since the rural consumers cannot use washing powders
/detergents powders that much, as they wash their clothes in streams or
ponds , they go is more for washing bars and detergents cakes.)
CHALLENGES
LIFESTYLE :-The rural consumers are marked by a
conservative and tradition-bound lifestyles. But this
lifestyle of a sizeable segment of rural consumers has
already changed significantly in recent years .The changes
can be attributed to several factors such as:
Cont.
MANY LANGUAGES :India is a country of many
languages. Language becomes barrier in effective
communication in the market efforts. The number of
languages vary from state to state, region to region and
district to district, etc.
Cont.
Segmentation and targeting.
Physical distribution(problem in Transportation and
warehousing )
References
http://censusindia.gov.in/Data_Products/Library/Indian_perceptive_link/Ce
nsus_Terms_link/censusterms.html
http://www.yourarticlelibrary.com/society/10-major-differences-betweenrural-and-urban-societies/23390/
https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad
=rja&uact=8&ved=0CDIQFjAD&url=http%3A%2F%2Fwww.answers.com%2F
Q%2FWhat_is_the_Difference_between_rural_and_urban_market&ei=TcF_V
KKLCI6wuATYyoDYAw&usg=AFQjCNFehOm0ws19Dg1uDAKzx31IYirig&bvm=bv.80642063,d.c2E
Rural Development Management - Google Books
Rural Marketing - Balram Dogra - Google Books
A Textbook on Rural Consumer Behaviour in India - A Study of FMCGs - Dr.
A Sarangapani - Google Books
Marketing Management: Text and Cases Indian Context - Tapan K. Panda Google Books
Challenges and Opportunities of Indian Rural Market | Kumar | International
Journal of Marketing Studies