INTRODUCTION
• The Census of India (2001) defines any habitation with a population
density of less than 400 per sq. km, where at least 75 per cent of the
male working population is engaged in agriculture and where there exists
no municipality or board, as a rural habitation.
RURAL MARKETING
• The Rural Marketing refers to the activities undertaken by the
marketers to encourage the people, living in rural areas to convert their
purchasing power into an effective demand for the goods and services
and making these available in the rural areas, with the intention to
improve their standard of living and achieving the company’s objective,
as a whole.
RURAL MARKETING MIX CHALLENGES
Affordability
Availabilit
Awareness
y
Acceptability
EVOLVING RURAL CONSUMERS
• The rural consumer is becoming more literate and value driven. The
greatest change is taking place amongst the rural youth, who are rapidly
getting exposed to urban products and services.
• Better road infrastructure has led to increased mobility, with people travel
ling more often and further afield in search of entertainment in the form
of cinema, and not just for visiting family or pilgrimages.
• Cultural and social norms are slowly changing, with nuclear families
creating new roles for women.
CONTINUED…
• Rural India has come a long way from the kuccha, mud houses of the
past. Today 62 per cent of rural houses are pucca.
• The dramatic change in trend in the type of house is indicative of the
changing lifestyle, and increasing consumerism and asset possession.
• Companies should focus on creating awareness and excitement for their
brands amongst the women, youth, and children, rather than focusing on
the older generations which remain more resistant to change, if they are
to thrive in rural markets.
• The future of the rural market looks brighter.
EVOLUTION OF RURAL
MARKETING
• Phase 1: Prior to the 1960s
• Agricultural produce such as food grains and industrial inputs like cotton,
oilseeds, and sugarcane were the primary products marketed during this
period.
• It was considered synonymous with agricultural marketing.
• This was a totally unorganized market
CONTINUED…
• Phase II: 1960s- 1980s
• The Green Revolution changed the face of rural India, ushering in
scientific farming practices.
• A new area—marketing of agricultural inputs—emerged. This period saw
the emergence of companies such as Mahindra & Mahindra, Escorts,
Eicher, Shriram Fertilisers (now DCM Shriram Consolidated Ltd), and
Indian Farmers Fertiliser Cooperative Limited (IFFCO).
CONTINUED…
• Phase III: 1990s- 2000
• Rural marketing began assuming importance in Phase III and came to the
centre stage in Phase IV with the government’s pro-rural initiatives, and
the arrival of global and Indian corporations with customized offerings for
rural markets.
• Phase IV: (After 2000)
• After the proven success of marketing models like Project Shakti and e-
Choupal, rural marketing has become an agenda for most global and
Indian corporations. Rural marketing has taken the centre-stage, as
companies that had been serving the urban markets for long have now
begun planning to enter the rural market.
TYPES OF RURAL MARKETS IN
INDIA
• Periodic Markets: These markets play an important role in rural
economy as well as in social life of rural masses.
• Example: Religious fair, Cattle fair, Exhibition fair, Local fair, Regional fair
etc.
• Mobile Traders: Those merchants who move from one place to another
in order to sell those commodities which are often required by rural
masses.
• Permanent Retail shops: These shops were developed as the
population of villages increased, income improved, and the demand for
goods increased.
E-MARKETING IN RURAL INDIA
• Digital Mode for creating awareness about product is more effective.
• Digital marketing can be personalized.
• Digital marketing offers fast feedback and outcomes are quantifiable.
• Digital Marketing helps business to be cost effective.
• Digital marketing bring down transportation cost.
• Digital marketing allows more lucrative options.
POTENTIALS OF DIGITAL MARKETING IN
RURAL MARKETS
• Direct promotion
• Simple consumer reach
• Cost reduction
• Accessibility
• Purchaser’s convenience to shop online
• Enables quick purchase
• Quick feedback