Rural marketing- an untapped potential
By: Mrs. Sugandha Dhillan, Mrs. Pradnya Bhandare
Abstract: 'Go rural' is the slogan of marketing gurus after analyzing the socio-economic changes in villages. Rural marketing is an evolving concept, and as a part of any economy has untapped potential; marketers have realized the opportunity recently. Improvement in infrastructure and reach, promise a bright future for those intending to go rural. Rural consumers are keen on branded goods nowadays, so the market size for products and services seems to have burgeoned. The rural population has shown a trend of switching to a state of gradual urbanization in terms of modernisation and the shift is because of saturation of urban market. Rural marketing strategies are significantly different from the marketing strategies aimed at an urban or industrial consumer. Study objectives revolve around these strategies, covered with case studies. • Client and location specific promotion
• Joint or cooperative promotion..
• Bundling of inputs
• Management of demand
• Developmental marketing
• Unique selling proposition (USP)
• Extension services
• Business ethics
• Analyzing mindset of consumers before purchasing
• Brand ambassadors - impact
Henceforth, we feel that only those companies will survive and win over the rural consumers who apply strategies in innovative ways by understanding the mindset of them. 200 Words
Key Words: Rural marketing, strategies, USP, consumer, brand ambassadors
Rural marketing has become an important aspect of marketing environment today. There are a number of myths and realities regarding immense potential of the Indian rural market. There is no doubt that the rural market presents a huge untapped opportunity for marketer as nearly 70% of the population lives in rural India. However, marketers need to explore growth indicators and key strategic tools for successful exploitation of this untapped market. A rural market will represent a community in a rural area with a population of 2500 to 30000. The rural market is zooming ahead at around 25 percent annually and is growing faster than urban India now. The Reasons for improvement of business in rural area are Socio-economic changes ( Lifestyle, habits and tastes, economic status), Literacy level ( 25% before independence – more than 65% in 2001), Infrastructure facilities ( roads, electricity, media), Increase in income and Increase in expectations. Rural consumers are keen on branded goods nowadays, so the market size for products and services seems to have burgeoned. The rural population has shown a trend of switching to a state of gradual urbanization in terms of modernization and the shift is because of saturation of urban market. Entering such low-income markets in emerging economies may require a different strategic approach. Objective
The potentiality of rural markets is said to be like a ‘woken up sleeping giant’. These facts are substantiated in a study of market growth conducted by various researches. Recently, however, a number of MNCs have launched new intitiatives that explore the untapped market potential at the base of the economic pyramid, the largest and fastest-growing segment of the world’s population. Reaching the four billion people in these markets poses both tremendous opportunities and unique challenges to MNCs, as conventional wisdom about MNC global capabilities and subsidiary strategy in emerging markets may not be appropriate. Also, rural marketing strategies are significantly different from the marketing strategies aimed at an urban or industiral consumer. Study objectives revolve around these strategies, covered with case studies. The paper is first of its kind as all then strategies have been taken up and exemplified with examples and case studies.
Rural Marketing Strategies : “The Heart of Rural Marketing” Dynamics of rural markets differ from other...
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