Submitted in the partial fulfillment of the award of PG Degree of Master of Business Administration Session 2008-09
Department of Management Studies,
Submitted By:Ravi MBA 4th sem. (Marketing) Jaipur
A debate 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. Consequently, two schools of thought emerged. The first school belived that the 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 saw a 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, the approach toward rural markets needs to be distinct from the one adopted for the urban markets. Thus, in a large rural economy like India’s, rural marketing has emerged as an important & distinct internal sub-division within the marketing discipline. This sub-division clearly highlights the differences between rural marketing & mainstream marketing.
Table of contents
1) Rural marketing 2) Evolution of rural marketing 3) Nature of rural market 4) Rural marketing transactional or developmental 5) Classification of rural consumers 6) Roadblocks of Indian Rural Markets 7) Attractiveness of rural market 8) Rural Vs Urban Marketing 9) Rural consumer behavior 10) 4 A’s approach of Indian Rural Market 11) Rural marketing Mix 12) Marketing strategies to capture rural market 12.1.Product strategies 12.2.Pricing strategies 12.3.Promotion strategies 12.4.Distribution strategies 13) Media vehicles 13.1.Formal media 13.2.Informal/rural specific media 13.3.Choosing media vehicles 14) Conclusion 15) References 44 45 46 53 54 57 64 65 66 3 4 8 9 11 12 14 19 22 25 28 37 42
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 involves the 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 under agricultural marketing where a rural producer seeks to sell his produce in an urban market. An agent or 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 others to another village in its proximity.
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 production and consumption process plays a predominant role in developing the Indian economy. This has designed a new way for understanding a...