2. Rural Marketing:
Rural marketing refers to the activities
undertaken by the marketers to
encourage people living in rural areas,
to convert their purchasing power into
an effective demand for the goods and
services and making this available in the
rural areas, with the intention to improve
their standard of living and achieving the
company’s objective.
3. Features:
Large and scattered population:
More than 70% of India’s population lives in rural
areas. The rate of increase in rural population is also
greater than that of urban population. The rural
population is scattered in over lakhs of villages. Nearly,
three-fourth (3/4 th) of the country’s consumers are in
rural markets.
Higher purchasing capacity :
Purchasing power of the rural people is on a rise.
Marketers have realized the potential of rural markets
and are expanding their operations in rural India.
Heterogeneous:
The rural market in India is not only scattered, but is also
diverse and heterogeneous. Rural consumers are
diverse in terms of religion, social, culture and in
language factors.
4. Low standard of living :
The standard of living of rural areas is low and rural
consumers have diverse socio-economic backwardness.
A consumer in a village area has a low standard of living
because of low literacy, low per Capita income and low
savings.
Development of Infrastructure :
There is development of infrastructure facilities such as
construction of roads and transportation, communication
network, rural electrification and public service projects in
rural India, which has increased the scope of rural
marketing.
Low exposure :
There is also exposure to market in rural areas. Low
product exposure, low exposure to branded products,
limited sources of information, less retail outlets, low
market reach etc… create a big challenge to marketers to
stimulate the rural consumers.
5. Buying in less quantity:
Generally, rural consumers buy loose i.e in small quantities
on account of their low percapita income and limited
storing capacity.
Traditional bound:
Rural consumers are tradition bound, region, culture and
tradition influences their consumption habits. They do not
prefer changes.
Marketing Mix:
The urban products cannot be dumped on rural population.
Separate set of products need to be designed for rural
consumers to suit the rural demands. The marketing mix
elements are to be adjusted according to the
requirements of the rural consumers.
Seasonal and irregular:
The rural market in India is seasonal and irregular. The
predominance of agriculture in the income pattern of the
rural people and the relatively greater influence of
marriages and festivals on the purchase pattern of the
6. Causes for the changes in the volume and patterns of
rural consumption:
Rural communication :
Internet and mobile have played the most important role
for the growth of rural markets. Broad band services are
easily available in rural area. These facilities have
opened the doors for companies to use latest
technologies for brand promotion.
Socio economic charges :
The change in lifestyle and economic status is one of the
most important factors that have driven the rural sector
towards improvement. The source of information and
awareness of the rural people have changed their habits,
tastes and preferences.
Literacy level :
This is the major factor for the improvements of rural
sector i.e. increase in literacy level of the rural people.
There is huge improvement in the sources of information
7. Increase in expectations:
With the media reach and high income level, the
awareness and preference of the rural people have been
developed. Their demand towards quality products with
better pricing has increased. Instead of being price
conscious the rural people are also expecting good
quality products and are aware of branded products.
Increase in income :
The growth in rural markets has reduced the complexity of
its functions. With the increase in income level of rural
people, their purchasing power and economic status of
living have also developed.
Infrastructure facilities:
Infrastructure and communication play a vital role in
bringing the improvement of rural sector. Well developed
roads, hi-tech media and electricity lead to improvement
8. Raising rural prosperity :
The agricultural development programs of the govt. have helped to
increase income in the agricultural sector. This has created greater
purchasing power in rural markets. Rural markets are developing
not only from agricultural section but also from other sections.
Change in rural consumer behavior :
With the economic development of rural areas, disposable income of
rural people has gone up. Because of internet and TV, people have
started gaining knowledge about the different trends that are
available in urban markets. They have started realizing the
importance of branded products.
Favourable Government Policies :
The government is being making efforts towards rural development.
The massive investment in the rural India has generated new
employment, new income and new purchasing power. Various
measures like tax exemption in rural areas, subsidy, concessions,
incentives, literacy assistance etc has brought in rapid development
in rural markets.
Remittance from family members working in urban areas :
At least one of the family members from almost every rural family
works in cities they remit their salaries lack home to their family. This
has contributed to growing rural income and purchasing power of
rural people. Also rural people are in growing interaction with urban
communities.