RURAL MARKETING

OBJECTIVE
1. Concept & scope of rural markets 2. Nature attractiveness of rural markets 3. Roadblocks of Indian rural markets 4. Solutions to problems of rural markets

DEFINITIONS
The Census defines urban India as "All the places that fall within the administrative limits of a municipal corporation, municipality, cantonment board etc or have a population of at least 5,000 and have at least 75 per cent male working population in outside the primary sector and have a population density of at least 400 per square kilometer. Rural India, on the other hand, comprises all places that are not urban!"
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FACTS OF RURAL INDIA

70% of the Indian population lives in villages Contributes in economic development Export of agricultural commodities result in the generation of capital and earnings of foreign exchange There are 600,000 villages in India 25% of all villages account for 65% of the total rural population A market with a huge potential
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RURAL MARKETING
Rural marketing involves the process of
Developing Pricing Promoting Distributing

Rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives.
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PROCESS
It is a two way marketing process, wherein the transaction can be:
1. Urban to Rural - involves the selling of products and services by urban marketers in rural areas 2. Rural to Urban - rural producer (involved in agriculture) sells his produce in urban market. 3. Rural to Rural - includes selling of agricultural tools, cattle, carts and others to another village in its proximity.

FEATURES OF RURAL INDIA

Large, diverse and scattered market Agriculture is the main source of income Rising disposable income Traditional outlook Rising literacy levels Diverse Socioeconomic background Infrastructure development
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ROADBLOCKS OF RURAL INDIA

Standard of living Low literacy levels Low per capita income Transportation and warehousing Ineffective distribution channels
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Too many languages and diversity in culture Lack of communications systems Spurious brands Seasonal demands Dispersed markets
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SOLUTIONS TO PROBLEMS
1. Marketer may have a joint network of stockiest/ clearing-cum-forwarding (C&F) agents at strategic location for facilitation of physical distribution for its products in the rural market 2. Government & companies should encourage private shopkeepers and cooperative stores to come forward and establish their business in rural areas instead of the weekly market known as weekly bazaar 3. Companies may also appoint a number of retailers in and around the feeder towns and attach them to the stockiest who distributes the goods to the retailers as per the potential of the market
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SOLUTIONS TO PROBLEMS
4. People operating in rural areas should invariably be from the rural background and should have a missionary zeal to serve the rural masses 5. To attract the rural consumers, companies can organize village fairs, dance and drama shows, group meetings to convince the rural consumers about the products and services. 6. In most Indian villages, there are some opinion leaders can be approached by the marketers to propagate their messages; these persons can prove to be effective communicators within the rural masses

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LICs RURAL MARKETING

An ideal example is that of LIC The Life Insurance Corporation of India generates life insurance business by appointing the insurance agent from the village itself so that he can easily convince his near and dear ones. LIC started a scheme called Gram Vikas where the Sarpanch is given a target to sell a minimum of 10 policy plans and the commission so earned is spent on the development of their respective villages.

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CONCLUSION
The rural market in India is quite fascinating and challenging in spite of all the difficulties existing. The potential is enormous. Even though, these markets have weaknesses they also have tremendous opportunities which should be availed by the marketers. It is well known that Markets are created and not born. The market so created should be tapped effectively. The marketers have to come up with innovative ideas through which the villagers also get involved in getting business from their respective villages.
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THANK YOU