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... [continues]
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