Rural Marketing

Topics: Marketing, Decision making, Household income in the United States Pages: 12 (3865 words) Published: March 16, 2013
1. Acknowledgement
2. Introduction
3. Research Methods
4. Challenges Faced By Marketers
5. Myths About the Rural Market
6. 4 A’s in Rural Market
7. Buying Process of Rural Consumers
8. Factors Affecting Buying Behaviour
9. Strategies Adoped by Marketers

Quantitative Techniques
10. Survey Data
11. Factor-wise Analysis
12. Chi-Square Test Analysis
13. Report Summary
14. Bibliography


We would like to take this opportunity to convey a heartfelt thanks to our teachers, Mrs. Anubha Vashisht and Mrs. Kritipriya Gupta, who supported us throughout the project and also gave us a chance to understand the buying behavior of rural consumers. We would also like to extend our thanks to our parents who have helped in the shaping up of the project with their valuable inputs. Further, its our duty to thank our friends and all other people who helped us carry forward this project.

Consumer Buyer Behavior refers to the buying behavior of final consumers ‐ individuals and households who buy goods and services for personal consumption. All of these final consumers combined make up the consumer market. The consumer market in this case is Rural India. About 70% of India’s population lives in rural areas. There are more than 600,000 villages in the country as against about 300 cities and 4600 towns. Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use. Villagers react differently to different products, colours, sizes, etc. in different parts of India. Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India.


* To study the underlying factors which play an important role for any rural consumer while deciding what, how, when and from where to buy the product.( Toothpaste) * To study the thought process that goes into making a purchase decision, so that we can reach this huge untapped segment. * To analyse the data collected through our survey conducted in the rural belt with the help of questionnaires by testing of hypothesis.


We have used the SIMPLE RANDOM SAMPLING approach to conduct our research in the rural market. With the help of questionnaires, we tried to comprehend the buying behaviour of the rural consumers. We analysed the factors which play an important role in their decision making by testing of HYPOTHESIS. We used the CHI SQUARE TEST to establish any relation between an independent variable and dependent variable.


Rural marketers must overcome the following challenges.

1) Challenge of reach- markets in rural India are small and scattered making them inaccessible and unreliable or both. 2) Challenge of awareness- ensure that consumers are aware about the brand and want it. 3) Challenge of understanding the rural consumer- marketers need to understand the social dynamics and attitude variations within each village. 4) Challenge of 3D’s

* Distribution
* Distance
* Dispersion


• The belief that rural people do not buy brands.
• The belief that rural customer buy cheap products. In reality they seek value for money. • The belief that the rural market is homogenous mass. In fact it is fascinatingly heterogeneous. The census of India defines rural as any habitation with a population density of less than 400 per square kilometers where at least 75% of male working population is engaged in agriculture & where there exists no municipality or board leaning aside Hindustan Uniliver Limited & ITC, most companies in the FMCG sector would define rural as any place with the population up to 20,000. Rural consumers are fundamentally different from their urban counterparts & different rural geographies display considerable heterogeneity calling for rural...
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