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Rural Marketing Definition

Function that manages all activities

involved in assessing, stimulating and
converting the purchasing power of
rural consumers into effective demand
for specific products and services to
create satisfaction & a better standard
of living for achieving organizational
goals.
 Features of Indian Rural Markets

• Large and Scattered

market
• Major income from
agriculture
• Low standard of living
• Traditional Outlook
• Infrastructure Facilities
SIGNIFICANCE OF RURAL MARKETS

1. Large Population
2. Higher Purchasing Capacity
3. Market Growth
4. Development of
Infrastructure
5. Insulated from the global
economic slowdown (RMAI)
MARKETING INNOVATIONS

“A marketing innovation is the implementation of a

new marketing method involving significant changes
in product design or Packaging, product placement,
product promotion or pricing.”

Innovative marketing of products is about leveraging

the marketing mix, namely, the four P’s: Product
(Design and Packaging), Price, Place and Promotion in
ways that has not been before by the organisation
implementing the innovations.
 MARKETING INNOVATIONS
• FMCGs have come up with creams and soaps @ Rs 5, hair oil and
shampoo sachets @ Re 1 and small Coke @ Rs 5. To develop a
product to suit the rural scenario,
• Companies came up with special rural products, like Chic Shampoo
sachets @ Re 1, Parle-G Tikki Packs @ Rs 2, customised TVs by LG,
Shanti Amla oil by Marico. All these brought positive results for them.
 CHALLENGES IN RURAL MARKETING
 Low literacy rate
 Resistance to change
 Seasonal demand
 Lack of infrastructure facilities & proper warehousing
facility
 Threat of spurious products.
 Communication problems.
 Problems related to distribution
and channel management.
 Rural Marketing Mix

• Rural Marketing Mix refers to the set of

actions, tactics, tools or variables that a
company uses to promote and sell its
brand or product in a Rural markets
 The 4Ps of Rural Marketing
PRODUCT:
1. Small unit size and low priced.
2. New product designs- sturdy products
3. Brand name.
4. Avoid sophisticated packing – Refill packs,
Reusable packaging
Factors to be considered while designing the product:
 Specific requirements of Rural consumers.
 Habits of usage and purchase
 Income levels
 Customs, beliefs and taboos.
 The 4Ps of Rural Marketing

PRICE:

1. Low priced products

2. Application of value
engineering (milk-soya protein)
3. Small sized utility packs
 The 4Ps of Rural Marketing
PLACE:
• Segmentation
• Coverage of villages with 2,000
and above population
• Distribution up to flea markets/
Mandi/shanties/ Melas.
• Direct Contact with rural Retail
 The 4Ps of Rural Marketing
PROMOTION: • Television
• Radio
• Haats, Melas,
Fairs.
• Print media
• Cinema
• Hoarding/ Wall
Painting
• Rural van
 Examples of Innovations in
Rural Marketing Mix
• ICICI BANK customized their rural ATMs, so
they can operate biometric authentication. ICICI
rural ATMS are battery operated so that power
failure is not issue.
 Examples of Innovations in
Rural Marketing Mix
• Nokia develop affordable Mobile phones for rural markets
with unique features such as local language capabilities,
present time/ call limits.

• Philip develop a TV ‘ Vardaan’ for rural markets. This TV

work on the voltage 90-270 volts.

• Philips developed ‘ Free Power radio’ this radio do not

require power and battery also. it run on simple winding of
level provided in the set. The price of this attractive set is
Rs. 995.
 Examples of Innovations in
Rural Marketing Mix - ITC e-choupal
 Learning experience
 Companies are finding Rural Markets increasingly attractive.

 Rural population is gradually getting urbanized and has a great

potential and improving purchasing power.

 The 4 As- Acceptability, Affordability, Availability,

Awareness has to be effectively adopted in order
To capture the untapped potential of the rural
consumers.

 With the initiation of various rural development

programs there have been an upsurge of employment
opportunities for the rural poor.
 Learning experience
 Rural markets are delicately powerful. Certain
adaptations are required to cater to the rural
masses; they have unique expectation and warrant
changes in all four parameters of product, price,
promotion and distribution.

 Continuous customization seems a sure shot

approach to provide both short and long-term
returns in the rural markets.
 CONCLUSION

• The rural market in India is vast and scattered

and offers a plethora of opportunities in
comparison to the urban sector.
• Improvement in infrastructure and reach promise
a bright future for those intending to go rural.
• Rural market is not exploited Completely and is
yet to be explored.
THANK YOU

Prepared By
Amy