Presented by: Dr. J.R.

Das

 Government agencies like IRDA (Insurance Regulatory and Development Agency and NCAER (National Council for applied Economic Research) define Rural as :
Village with a population <5000 with 75% male population engaged in agriculture etc. population density <400 sq km
www.theexampapers.net

Rural Markets are defined as those segments of overall market of any economy, which are distinct from the other types of markets like stock market, commodity markets or Labor economics.

What is Rural Marketing?

According to the National Commission on Agriculture: Rural Marketing is a process which starts with a decision to produce a saleable farm commodity and it involves all the aspects of market structure or system, both functional and institutional, abase on technical and economic considerations and includes pre and post harvest operations, assembling, grading, storage, transportation and distributions.
Rural Marketing can be defined as a function that manages all activities involved in assessing, stimulating, and converting the purchasing power of rural consumers into an effective demand for specific products and services and moving these products and services to the people in rural areas to create satisfaction and a better standard of living and thereby achieving organizational goals.

Why Rural Marketing is hot?

Rural Push Policy of UPA Government Four Consecutive years of positive growth in rural GDP 40% hike in MSP of Crops over last two years Farm Loan Waiver & NREGS Growing Industry Demand for land (Overnight Wealth) Big rise in remittances from Cities Slowing urban demand forcing corporates to rural markets

% Annual Change in Rural GDP

Year Change

2003-04

10%

2004-05

-6.7%

51% Rs. 13,65,000

49% Rs 13,17,018 Crore

2005-06

5.8%

Crore

2006-07

4%

2007-08

4.9%

2008-09 (Estimates)

2.6%

Why Rural Marketing is a New Discipline?

Rural Marketing is a new discipline because: India is a predominantly agrarian society. Western Marketing has no experience to manage it. Urban markets are saturating in India. There are immense opportunities at the bottom of the pyramid. R. M. can change rural business. Retail boom will also expedite the growth of rural marketing.

Whether Rural Markets are Attractive?

Large population Rising prosperity Growth in consumption Life-style changes Life-cycle advantages Market growth rates higher than Urban Rural marketing is not expensive Remoteness is no longer a problem.

Urban & Rural Markets

Key Differences
Per capita Income Disposable Income Literacy levels Infrastructure

Communication
Geographical Spread Customer has many choices

Low per capita income Low disposable income Inadequate fixed income (daily wages) Majority depends on Agricultural Income Acute dependence on monsoon Consumption linked to harvest Infrastructure problems Roads, power Low awareness Communication- difficult & expensive Too many languages Geographic Spread

PROBLEMS IN RURAL MARKETING

 Marketing Strategy Distribution Strategy Promotional Strategy Sales strategy

 Rural India offers tremendous opportunity for any company to tap. Companies face many challenges in tackling the rural markets. Important factors being an understanding of the rural customers' needs, a reliable distribution channel, and an effective marketing communication strategy to put their message across to the rural consumer

THANK YOU