It was observed that the fruits of economic development have been enjoyed by the urban people. They are leading a better life in terms of literacy, sanitation, health facilities than their counterparts in rural areas. But the rural market is huge potential in India, as more than 70% of population lives in rural India. So as per the socio economic condition marketer has to plan differently for the rural market.
A rural market can be defined as any market that exists in a area where the population is less than 10, 000. The rural market in India is scattered and spread over a wide geographical area. Indian market is divided into urban and rural markets. To quote management guru Peter Drucker
“The aim of marketing is to know and understand the customer so well that the product or service fits him and sell itself."
Socio economic classification, social class is not just determined by income. It is measured as a combination of occupation, income, education, wealth and other variables: Socio Economic Classification in Urban is as follows
1. Unskilled/Skilled workers
2. Shop owners/Industrialists
3. Self-employed professionals
5. Supervisory level
6. Junior level Officers/Executives
7. Senior level Officers/Executives
Socio Economic Classification in Rural market is different from urban market. The rural consumers are classified into the following groups based on their economic status: □ The Affluent Group: They are cash rich farmers and a very few in number. They have affordability but not form a demand base large enough for marketing firms to depend on. Wheat farmers in Punjab and rice merchants of Andhra Pradesh fall in this group. □ The Middle Class: This is one of the largest segments for manufactured goods and is fast expanding. Farmers cultivating sugar cane in UP and Karnataka fall in this category □ The Poor: This constitutes a large but purchasing power is less but strength is more. They receive the grants from government and reap the benefits of many such schemes and may move towards the middleclass. The farmers of Bihar and Orissa fall under this category.
Apart from the above there are certain other socio economic factors are there which makes rural market different from urban. Low Income level
Income of rural people is lower as compared to urban people, as mostly these people depend upon agriculture. So the product should be design according to need of the rural people. For example when Clinic plus & Chik Shampoo was available in small sachets with affordable price it was widely accepted by rural people. Low Literacy
There are not enough opportunities for education in rural areas. The literacy level is as low (36%) when compared to all- India average of 52%. Seasonal Demand
Demand for goods in rural markets depends upon agricultural situation, as agriculture is the main source of income. Agriculture to a large extent depends upon monsoon and, therefore, the demand or buying capacity is not stable or regular. Communication Problems
Facilities such as telephone, fax and telegram are rather poor in rural areas. Traditional Life
Life in rural areas is still governed by customs and traditions and people do not easily adapt new practices. For example, even rich and educated class of farmers does not wear jeans or branded shoes. But still we are witnessing some change. Buying Decisions
Rural consumers are cautious in buying and decisions are slow and delayed. They like to give a trial and only after being personally satisfied, do they buy the product. Societies are bound by definitive norms being followed by set of the people. This norms dictate the ways and means of behaving , working addressing and conducting ourselves in society. In rural India these norms are strong and rigorously followed too. Violation of these norms can even lead to cast out of the society Caste plays a key role in behaviors of community. In...