219x Filetype PPTX File size 0.06 MB Source: bbhegdecollege.com
Rural Marketing: Rural marketing refers to the activities undertaken by the marketers to encourage people living in rural areas, to convert their purchasing power into an effective demand for the goods and services and making this available in the rural areas, with the intention to improve their standard of living and achieving the company’s objective. Features: Large and scattered population: More than 70% of India’s population lives in rural areas. The rate of increase in rural population is also greater than that of urban population. The rural population is scattered in over lakhs of villages. Nearly, three-fourth (3/4 th) of the country’s consumers are in rural markets. Higher purchasing capacity : Purchasing power of the rural people is on a rise. Marketers have realized the potential of rural markets and are expanding their operations in rural India. Heterogeneous: The rural market in India is not only scattered, but is also diverse and heterogeneous. Rural consumers are diverse in terms of religion, social, culture and in language factors. Low standard of living : The standard of living of rural areas is low and rural consumers have diverse socio-economic backwardness. A consumer in a village area has a low standard of living because of low literacy, low per Capita income and low savings. Development of Infrastructure : There is development of infrastructure facilities such as construction of roads and transportation, communication network, rural electrification and public service projects in rural India, which has increased the scope of rural marketing. Low exposure : There is also exposure to market in rural areas. Low product exposure, low exposure to branded products, limited sources of information, less retail outlets, low market reach etc… create a big challenge to marketers to stimulate the rural consumers. Buying in less quantity: Generally, rural consumers buy loose i.e in small quantities on account of their low percapita income and limited storing capacity. Traditional bound: Rural consumers are tradition bound, region, culture and tradition influences their consumption habits. They do not prefer changes. Marketing Mix: The urban products cannot be dumped on rural population. Separate set of products need to be designed for rural consumers to suit the rural demands. The marketing mix elements are to be adjusted according to the requirements of the rural consumers. Seasonal and irregular: The rural market in India is seasonal and irregular. The predominance of agriculture in the income pattern of the rural people and the relatively greater influence of marriages and festivals on the purchase pattern of the villagers are the main reasons for seasonal character of the rural market. Causes for the changes in the volume and patterns of rural consumption: Rural communication : Internet and mobile have played the most important role for the growth of rural markets. Broad band services are easily available in rural area. These facilities have opened the doors for companies to use latest technologies for brand promotion. Socio economic charges : The change in lifestyle and economic status is one of the most important factors that have driven the rural sector towards improvement. The source of information and awareness of the rural people have changed their habits, tastes and preferences. Literacy level : This is the major factor for the improvements of rural sector i.e. increase in literacy level of the rural people. There is huge improvement in the sources of information and education.
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