Rural Marketing

Topics: Marketing, Household income in the United States, Population Pages: 33 (9585 words) Published: October 23, 2012
Rural marketing can be defined as a function which manages all those activities in asserting, Stimulating and converting the purchasing power of rural people into an effective demand for specific products and services thereby achieving the goals of the organisation. Rural areas:-

Rural areas are large and isolated areas of an open country with low population density. A countryside refers to rural areas that are open. Explain the nature and scope of rural marketing?
Ans: Meaning of Rural marketing:-
Rural marketing is promotion of a company’s products in the rural markets by using strategies which differ from that of the urban market. The rural market is more price-sensitive. Nature of Rural market:-

1. Large, diverse and scattered market:-
Rural marketing in India is large and scattered into a number of regions. There are not many shops available to market products. 2. Major income of rural consumers is from agriculture:-
Rural prosperity is interlinked with agricultural prosperity. In the event of crop failure, rural income is directly affected. 3. Traditional outlook:-
Villages develop slowly and have a traditional outlook. Change is a continuous process but rural people accept it gradually. This is changing but it is changing, although slowly, due to literacy especially in the youth who have begun to change the outlook in the villages. 4. Standard of living and rising disposable income of the rural customers:- It is known that majority of the rural population lives below the poverty line and has low literacy rate, low savings etc. Today, rural customers spend money to get value and are aware of the happenings around them. 5. Rising literary levels:-

It is a well documented fact that approximately 45% of rural Indians are literate. Awareness has increased and farmers are well informed about the world around them. They are also educating themselves on the new technology for a better life style. 6. Diverse socio economic background:-

Due to differences in geographical areas and uneven land fertility, rural people have different socio- economic backgrounds, which ultimately affect the rural markets. 7. Infrastructure facilities:-

Infrastructure facilities like warehouses, communications systems and financial facilities are inadequate in rural areas. Physical distribution is a challenge to marketers who have found innovative ways to market their products. Scope of marketing:-

1. Large population:-
According to the 2011 census, 72% of the total population is rural population and it is scattered over a wide range of geographic area. 2. Rising rural prosperity:-
Average income level has improved due to modern farming practices, contract farming, industrialization, migration to urban areas etc. 3. Growth in consumption:-
There is a growth in purchasing power of rural consumers. The average per capita house hold expenditure is Rs. 382. 4. Change in lifestyle:-
The Lifestyle of rural consumers has changed considerably.
5. Market growth rate higher than urban:-
The growth rate of fast moving consumer goods [FMCG] market and durable market is high in rural areas. The rural market share is more than 50% for products like cooking oil, hair oil etc. 6. Life cycle advantage:-

The products which have attained the stage of maturity in the urban market are still on their stage of growth in the rural market. 7. Rural marketing is not expensive:-
Promotion of consumer durables inside a rural market, it costs Rs 1 crore whereas in urban areas it runs into millions.

What is rural market? Importance of rural marketing ?
Ans:Meaning of rural market:-
On account of the green revolution, rural areas are consuming a large quality of industrial and urban manufactured products. In this context a special marketing strategy namely rural marketing has emerged. But often, rural marketing is confused with agricultural marketing – The latter denotes marketing of produce of rural areas to the urban...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Aging in a Rural Community
  • Essay on Nursing Care in Rural Communities
  • Urbanization and Rural Migrants Essay
  • Infrastructure Development V/S Rural Economy Essay
  • Rural Marketing Essay
  • Essay on Rural Marketing Mba
  • Briefing paper on rural housing
  • Rural Transport Essay

Become a StudyMode Member

Sign Up - It's Free