UNIT: 1 RURAL MARKETING
Definition: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 and there by achieving the goals of the organisation.
Rural areas:Rural areas are large and isolated areas of an open country with low population density a country side refers to rural areas that are open.
Q1. 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 urban market. The rural market more price sensitive but it has preference quantity.
Nature of Rural market:1. Large, diverse and scattered market:Rural marketing in India is large, and scattered into a number of regions. There may be less number of shops available to market products. 2. Major income of rural consumers is from agriculture:Rural prosperity is tied with agriculture prosperity. In the event of crop failure, the incomes of masses is directly affected. 3. Traditional outlook:Villages develop slowly and have a traditional outlook. Change is a continuous process but rural people accept change gradually. This is gradually changing 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 poverty line and has low literacy rate, low savings etc. Today the rural customers spends money to get value and is aware of the happening around him. 5. Rising literary levels:It is documented that approximately 45% of rural Indians are literate. Hence awareness has increase and the formats 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:http://www.miteshk.webs.com
Due to differences in geographical areas and uneven land fertility, rural people have different socio economic background, which ultimately affects the rural markets. 7. Infrastructure facilities:The infrastructure facilities like warehouses, communications systems and financial facilities (or) inadequate in rural areas physical distribution is a challenge to marketers who has found innovative ways to market their products.
Scope of marketing:1. Large population:According to 2011 census, rural population is 72% of total population and it is scattered over a wide range of geographic area. 2. Rising rural prosperity:Average income level has unproved due to modern farming practices, contract farming industrialisation, 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 382 Rs 4. Change in life style:Life style of rural consumer 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 attain the maturity stage in urban market is still in growth stage in rural market. 7. Rural marketing is not expensive:To promote consumer durable inside a state costs 1 croreRs while in urban areas it will costs in millions.
Q2. What is rural market? Importance of rural marketing ? Ans:Meaning of rural market:On account of green revolution, the 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 letter denotes marketing of produce of rural areas to the urban consumers or industrial...