Importance of rural marketing pdf

In fact Rural market has been growing steadily over the past few years and is now even bigger than the urban market. More than million people live in rural area in India. The rural market of India started showing its potential from the s and the 70s and 80s showed its steady development. To a large extent, villages contribute towards the economic development of the nation through the production of food grains, vegetables, fruits etc.

Export of these agricultural products generate capital and earnings from foreign exchange. Indian marketers and as well as global players have focused on rural markets in India as rising markets. Rural marketing involves a bunch of processes that includes developing, pricing, promoting, distributing rural specific product and service which satisfies the consumer demand and also achieves organizational objectives as expected from the target market.

These products mostly include pesticides, FMCG products, consumer durables, etc. This may or may not be direct, but mostly there are middlemen, agencies, government co-operatives etc.

Thus Indian rural market is providing lot of opportunities to the marketers. The players who can understand the importance of rural markets and use them to their best advantage has a promising future.

Definition: Rural marketing is a process of developing, pricing, promoting, and distributing rural specific goods and services leading to desired exchange with rural customers to satisfy their needs and wants, and also to achieve organizational objectives.

It is also sacattered in over some lakhs villaes. Though it is highly scattered but holds a big opportunity for the marketers. Means the majority of the population in India lives in Villages and therefore, the marketers find more potential in the rural areas and direct their efforts to penetrate the rural market.

Higher Purchasing Capacity: Purchasing power of the rural people is on rise. Marketers have realized the potential of rural markets, and thus are expanding their operations in rural India. In recent years, rural markets have acquired significance in countries like China and India, as the overall growth of the economy has resulted into substantial increase in purchasing power of rural communities 3 Market Growth: The rural market is growing steadily over the years.

Demand for traditional products such as bicycles, mopeds and agricultural inputs; branded products such as toothpaste, tea, soaps and other FMCGs; and consumer durables such as refrigerators, TV and washing machines has also grown over the years.

Today the rural customers spends money to get value and is aware of the happening around him. 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.

This is different in different parts of the country. A consumer in a village area has a low standard of living because of low literacy, low per capita income, social backwardness and low savings. 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. Gradually, the rural population is changing its demand pattern, and there is demand for branded products in villages. 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. The marketing mix elements are to be adjusted according to the requirements of the rural consumers.

There may be less number of shops available to market products. Low Levels of Literacy: The rural areas of India suffer from low levels of literacy and education. This complicates the communication problems in this medium. Further, the print media becomes largely ineffective as many people cannot even read.

Seasonal and Irregular Demands: The demand pattern in rural markets is largely irregular and highly unpredictable. Economic and Social Backwardness: The rural markets are in the grips of tradition and social backwardness. However, this is gradually getting changed as the rural economy is getting exposed to modern thoughts and beliefs. Prevalence of Spurious Brands: The rural market is also impacted by spurious and duplicate brands.

Many times, it becomes difficult to counter their spurious effect as the consumers are illiterate and remain unaware with the communication campaigns of companies.

Different Way of Thinking: Rural consumers are also very different from other consumers in terms of their beliefs, attitudes and perceptions.

Their behaviour is governed by their traditions and customs. Rural customers oppose to the new concepts, especially when such concepts or products challenge their dominant beliefs and perceptions. Problems in Physical Distribution: Physical distribution in ruml areas from the following problems:.

Many parts of the rural economy are still out of bounds with the marketing teams of the company. There are no public warehouse agencies in the rural vicinity of India. Other Influencing Factors in Rural Marketing: Other events which impact the rural economy are natural calamities and market conditions.

The rural economy is also plagued by unscrupulous middlemen and agents Who charge vicious commissions for marketing the agriculture products and commodities. Following are the strategies which should be considered by the marketers for solving the obstructing issues associated With the rural marketing in India:.

Smaller Units and low priced packing: Generally, the rural-based communities have the habit of using sample pouches or small packets of products.

They rarely make bulk purchases due to the higher costs incurred in buying the goods in lot. For example, products like biscuits, shampoos, pickles, oils, etc. Therefore, the marketers need to use the strategy of rnaking available their priXlucts in small units and at IOW prices in rural InarkeLs. Howewer, this strategy is not applicable in all types Of product, yet wherever possible, the marketer should try to employ this strategy. New product Designs: The product designs should be based on the rural lifestyles so that it matches with the preferences of the rural customers.

For this purpose, the marketer needs to closely analyse the rural household items which clearly depicts the need for redesigning the products. Based on these products, firms can take ideas for new product designs. The products designed for rural marketing should be durable enough to deal with the rough handling and storage. Besides durability of the product, the marketer should give focus upon creating appropriate utility of the product for achieving the best results.

Brand Name: The rural people are more aware about the indigenous brands advertised on televisions, radios and Other media. Hence, giving proper consideration to the brand name is another effective strategy for the while dealing with the rural markets. These brand names can be easily remembered by the rural and their future purchase is influenced by it. The logo or brand name printed on the product has much importance in such markets and the marketer should not ignore this factor.

They know that the rural communities give more preference to the products which give them high utility at low cost. Considering this aspect, the marketers sell unit packs of their products at IOW prices. Avoid Sophisticated packing: The market needs to minimise its total costs incurred while manufacturing the products, One method for this is to cut down the cost involved in packaging by avoiding sophisticated packing.

For example, the packaging of biscuits is kept simple by the manufacturers. Therefore, the marketer should use innovations in packing the rural-based products for minimising the total costs. Manufacturing products with reusable packaging proves to be the best product in case of rural customers. For example, the oil sold in small bottles or products sold in usable containers attract the customers to make a purchase. Communicating Using Mass Media: Besides above strategies, the marketer should also adopt advertising strategies for increasing product awareness among the rural masses.

Various mass media such as radios, televisions, newspapers, hoardings, wall paintings, fairs, haats, campaigns, etc. Several other mass media such as booklets, pamphlets, posters, stickers, quotes, schemes, etc. For providing information regarding agriculture and rural industrial products, the government can contact the Panchayati Raj OIT1ce or the local government schools for promotional activities. Distribution Strategies: Distribution strategies can be used by the marketers for establishing a strong stand in the rural market.

Generally, marketers have distribution arrangements which cover around people in the rural market. However, specific strategy is required to be formulated for effective distribution of the product. The distribution strategies commonly used in the rural markets involves distributing through cooperative societies, multi-purpose distribution centres, public distribution system, distributing in feeder markets, selling products in haats, fairs, mandis, agricultural input dealers, jathras, etc.

Direct marketing is a channel through which an organisation communicates With its customers on one-to-one…. Many companies are seeking alternatives to the traditional selling Systems because of the rapidly increasing….

When all marketing practices, resources and tools are used for an organisation in an integrated…. Rural marketing can generate more attractive employment opportunities to rural and urban people. Growth of rural marketing leads to increased business operations, professional activities, and services that can generate a lot of employment opportunities. Due to rural marketing system, rural buyers can easily access needed standard goods and services at fair prices. In the same way, rural marketing improves rural infrastructure.

Additionally, rural marketing can also improve their income. These all aspects can directly improve living standard. Rural marketing leads to set up agro-based processing industries. Fruits, vegetables, cereals, pulses, etc. There are unlimited businesses opportunities exist in rural areas. Untapped and underutilized resources can be utilized at optimum level and that can further accelerate overall economic growth. Growth of rural marketing improves whole marketing system.

Multiple options are available to farmers and local producers to market their products. Big domestic corporate houses and multinational companies prefer to buy agricultural products directly from villages by their own or through agents and small firms.

Rural producers can sell their produces easily at satisfactory prices. Their improved income level can improve their purchasing power that can further fuel to industrial demand. Rural marketing and basic infrastructures go hand to hand. Growth of rural marketing leads to improved transportation, insurance, banking, communication, entertainment, and other facilities. Due to availability of basic infrastructural facilities, business units can easily reach the target rural buyers. Marketing results into better transportation, warehouses, and communication facilities.

Agricultural products can be systematically marketed throughout the year. Huge gap between demand and supply can be avoided and, as a result, prices of most of commodities remain more or less stable. Marketing can refine entire living style and system.

Better quality products at reasonable price, improved income level, availability of facilities, etc. Quality of life improves and level crime reduces.