386x 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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