which manages all those activities involved in assessing, stimulating and converting the purchasing power into an effective demand for specific products and services, and moving them to the people in rural area to create satisfaction and a standard of living for them and thereby achieves the goals of the organization Evolution of rural marketing ■ Phase 1 – before mid -1960s – rural marketing referred to marketing of rural products in rural & urban areas & agricultural inputs in rural markets. – It was considered synonymous to agricultural marketing ■ Phase 2 – mid 1960s to mid 1990s – two separate areas of activities emerged –marketing of agricultural inputs ■ Phase 3 - ( 1990’s to 2000) – Industrial sector gained strength. – Push to the marketing of consumables and durable products. – Saturation of urban Markets. – Governments pro rural schemes. Customized offerings for rural markets – Ex: Project Shakti. ■ Phase IV – After 2000 – HUL, Godrej, Dabur, Marico, ITC established local connections – Automobile sector entered this market. – Insurance companies Rural Buyers – Seller Matrix Seller Rural Urban Rural I (RS – RB) II (US – RB) (Intra Rural) (Urban Seller – Rural All Products Buyer) Consumer Goods/ Buyer
Services/ Agro inputs/ Farm
Urban III (RS – UB) IV (US – UB)
(Rural Seller – Urban (Intra Urban) Buyer) All Products Farm and Non-Farm Few Challenges of Rural Marketing ■ Agriculture is main source of income. ■ The income is seasonal in nature. It is fluctuating also as it depends on crop production. ■ Though large, the rural market is geographically scattered. ■ It shows linguistic, religious and cultural diversities and economic disparities. ■ The market is undeveloped, as the people who constitute it still lack adequate purchasing power. ■ It is largely agricultural oriented, with poor standard of living, low-per capital income, and socio-cultural backwardness. ■ It exhibits sharper and varied regional preferences with distinct predilections, habit patterns and Then Why Rural Marketing?
Find out the Importance
of Rural Marketing & the opportunities that lie in rural Marketing Indian villages offer huge potential to Marketers !! ■ Reduced Burden on Urban Population: ■ Rapid Economic Growth ■ Employment Generation ■ Improved Living Standards ■ Development of Agro-based Industries ■ Optimum Utilization of Rural Untapped Resources ■ Easy Marketability of Agricultural Produces ■ Improved Rural Infrastructures ■ Price Stability ■ Quality of Life and Reduced Crime Rural vs Urban Marketing ■ Income ■ Lifestyle ■ Media Reach ■ Population ■ Expenditure ■ Literacy ■ Segmentation ■ Customer Views Environmental factors affecting rural marketing ■ Demographic Env – Education and the level of Demand – Household Patterns ■ Family Structure ■ Rural Household Pattern ■ Occupational pattern ■ Physical Env ■ Economic Env ■ Social and cultural Env ■ Political Env ■ Technological Env Size of Rural Market ■ The number of villages, population, number of households make up the entire size of rural market. ■ India’s per capita GDP in rural regions has grown at a Compound Annual Growth Rate (CAGR) of 6.2 per cent since 2000. The Fast Moving Consumer Goods (FMCG) sector in rural and semi-urban India is expected to cross US$ 20 billion mark by 2018 and reach US$ 100 billion by 2025@. Structure of Rural Market ■ Consumer Market. Ex: All kinds of Consumables & Durables. ■ Institutional market. Ex: Agri Inputs (seeds, fertilizers) , animal feed, tractors, boats etc. ■ Services Market Ex: Banking & Insurance. Marketing Network in Rural India ■ Haats (Periodic Markets) ■ Mandis (Agrimarkets) ■ Melas & Exhibitions ■ Public Distribution Shops ■ Bank Branches ■ Post Offices Retail Shops by India Inc