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Sections SectionsSection 1 of 9 Nature of Rural Marketp. 8 Classification of rural consumersp. 11 Roa dblocks of Indian Rural Marketsp. 12 Rural Consumer Behaviourp. 22 4 As approach of Indian Rural Marketp. 25 Promotion strategiesp. 45 Media Vehiclesp. 53 Informal/Rural specific mediap. 57 Zoom Out Zoom In Fullscreen Exit Fullscreen Select View Mode View Mode SlideshowScroll Top of Form
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RURAL MARKETING Submitted in the partial fulfillment of the award of PG Degree of Master of Business Administration Session 2008-09 Submitted To: Submitted By:Department of Management S t u d i e th sem. (Marketing)Jaipur 1 s , R a v i MBA 4

Executive Summary A deb ate continued for a long time amongst the Indian marketers, both practitioners & academicians, on the justification for the existence of the distinct discipline of rural marketing.C o n s e q u e n t l y , t w o s c h o o l s o f thought emerged. The first school belived t h a t t h e products/services, marketing tools & strategies that are successful in urban areas, could be transplanted with little or no more modifications in rural areas. However, the second school sawa clear distinction between urban & rural India, & suggested a different approach, skills, tools& strategies to be successful in rural markets.What differentiates the two markets is not mere income, but a host of other infrastructural &socio-cultural factors. Thus, the rural market cannot be tapped successfully with an urban marketing mindset & would definitely require its thorough understanding. In other words, theapproach toward rural markets needs to be distinct from the one adopted for the urban markets.Thus, in a large rural economy like Indias, rural marketing has emerged as an important & dis tinct internal sub- division within the marketing discipline. This sub-division clearly highlights the differences between rural marketing & mainstream marketing.2

Table of contents 1)Rural marketing 32 ) E v o l i o n o r u r a l m a r k e t g 4 3 ) N t u r e o f r u r a m a r k e 8 4 ) R u r a l m a r k e t i n g t r a n s a c t i o n a l d e v e l o p m e n t a ) h t t p : / / w . i n d i a u c a t i o n e t / C B S E / a s s 1 2 / C o m m c e / B u s i s s S t u d i e b u s i n e s a n s w e r _ 0 8 . p d f c a t i o n o r u r a l c o n s u m e r 1 1 6 ) R o a d o c k s o f I n d i a n R u r a l

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Rural Marketing Rural marketing involves the process of developing, pricing, promoting, distributing rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives.It is a two-way marketing process wherein the transactions can be:1. Urban to Rural : A major part of rural marketing falls into this category . It involvesthe selling of products and services by urban marketers in rural areas. These include: Pesticides, FMCG Products, Consumer durables, etc.2. Rural to Urban : Transactions in this category basically fall u n d e r a g r i c u l t u r a l marketing where a rural producer seeks to sell his produce in an urban market. An agentor a middleman plays a crucial role in the marketing process. The following are some of the important items sold from the rural to urban areas: seeds, fruits and vegetables, milk and related products, forest produce, spices, etc.3. Rural to Rural : This includes the activities that take place between two villages in close proximity to each other. The transactions relate to the areas of expertise the particular village has. These include selling of agricultural tools, cattle, carts and othersto another village in its proximity.4

URBANRURALRURALURBANRURALRURAL

Rural marketing requires the understanding of the complexities. Indian agricultural industry has been growing at a tremendous pace in the last few decades. The rural areas are consuming a large number of industrial and urban manufactured products. The rural agricultural productionand consumption process plays a predominant role in developing the Indian economy. This hasdesigned a new way for understanding a new process called Rural Marketing.The concept of rural marketing has to be distinguished from Agricultural marketing. Marketingis the process of identifying and satisfying customers needs and providing them with adequateafter sales service. Rural marketing is different from agricultural marketing, which signifiesmarketing of rural products to the urban consumer or institutional markets. Rural marketing basically deals with delivering manufactured or processed inputs or services to rural producers,the demand for which is basically a derived outcome.Rural marketing scientists also term it as developmental marketing, as the process of rural marketing involves an urban to rural activity, which in turn is characterised by various peculiarities in terms of nature of market, products and processes. Rural marketing differsfromagricultural or consumer products marketing in terms of the nature of transactions, which includes participants, products, modalities, norms and outcomes. The participants in case of Rural Marketing would also be different they include input manufacturers, dealers, farmers, opinion makers, government agencies and traders.Rural marketing needs to combine concerns for profit with a concern for the society, besides being titled towards

profit. Rural market for agricultural inputs is a case of market pull and notmarket push. Most of the jobs of marketing and selling are left to the local dealers and retailers.The market for input gets interlocked with other markets like output, consumer goods, money andlabour.Rural marketing in India is not much developed there are many hindrances in the area of market, product design and positioning, pricing, distribution and promotion. Companies need tounderstand rural marketing in a broader manner not only to survive and grow in their business, but also a means to the development of the rural economy. One has to have a strategic view of the rural markets so as to know and understand the markets well. In the context of ruralmarketing one has to understand the manipulation of marketing mix has to be properly 5

understood in terms of product usage. Product usage is central to price, distribution, promotion, branding, company image and more important farmer economics, thus any strategy in ruralmarketing should be given due attention and importance by understanding the product usage, all elements of marketing mix can be better organised and managed. Evolution of Rural Marketing P HASE O RIGIN F UNCTION M AJOR P RODUCTS S OURCE M ARKET D ESTINATION M ARKET I B e f o r e M i d 1960 (fromindependenceto greenrevolution)AgriculturalMarketingAgriculturalProduce R u r a l U r b a n I I M i d S i x t i e s (GreenrevolutiontoPreliberalization period)Marketing Of AgriculturalInputsAgriculturalInputsU r b a n

R u r a l I I I M i d N i n e t i e s (Post-liberalization period on 20 th century)RuralMarketingConsumablesAndDurables For Consumption&ProductionUrban&RuralRuralI V 2 1 st c e n t u r y D e v e l o p m e n t a l marketingAll products &servicesUrban&RuralUrban&Rural 1.Phase I ( from Independence to Green Revolution): 6

Before the advent of the Green revolution, the nature of rural market was altogether different. Rural marketing then referred to the marketing of rural products in rural & urban products. 2.Phase II (Green Revolution to Pre-liberalization period): During these times, due to the advent & spread of the Green Revolution, rural marketingrepresented marketing of agriculture inputs in rural markets & marketing of rural produce in urban areas.3. Phase III (Post-liberalization period on 20 th century): The third phase of rural marketing started after the liberalization of the Indian economy.In this period, rural marketing represented the emerging, distinct activity of attracting &serving rural markets to fulfill the need & wants of rural households, peoples & their occupations.4. Phase IV (21 st century): Learning from its rural marketing experiences after the independence, the corporateworld has finally realized the quick-fix solutions & piecemeal approaches will deliver only limited results in the rural markets. And, if an organization wants to tap the real potential of the rural market, it needs to make a long-term commitment with this market.Its approach & strategies must not focus in just selling products & services, but they should also aim at creating an environment for this to happen.The objective of rural marketing in the current phase is the improvement

of the quality of life by satisfying the needs & wants of the customers, not through atand-alone products or services, but by presenting comprehensive & integrated solutions which might involve a set of inter- related products &services.Till recently, the focus of marketers in India was the urban consumer and by large number specific efforts were made to reach the rural markets. But now it is felt that with the tempo of development accelerating in rural India, coupled with increase in purchasing power, because of scientific agriculture, the changing life style and consumption pattern of villagers with increasein education, social mobility, improved means of transportations and communication and other penetrations of mass media such as television and its various satellite channels have exposed rural India to the outside world and hence their outlook to life has also changed. Because of allthese factors, rural India in now attracting more and more marketers.7

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Rural marketing involves the process of developing, pricing, promoting, distributing rural specific product and a service leading to exchange betwe... (More) Rural marketing involves the process of developing, pricing, promoting, distributing rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives. (Less) rural marketing rural marketing (fewer) Follow ravimeena Sections show allcollapse prev | next Nature of Rural Market Classification of rural consumers Roadblocks of Indian Rural Markets Rural Consumer Behaviour 4 As approach of Indian Rural Market Promotion strategies Media Vehicles Informal/Rural specific media Share & Embed Related Documents PreviousNext 1.

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