PRESENTATION ON RURAL MARKETING.

1. Presented By-
Barsa Pattnayak
Khirodini Nayak
Biswajit Sahoo
M.Com Part 1

2. Marketing is a act of identifying the needs and wants of
the customer. and help the customer to achieve those
needs and wants through our valuable product.

3. Organization Definitions of Rural
Census  Population density < 400 / Sq Km
75 Percentage of the male working population is
engaged in agriculture
 No Municipal Corporation / board
Planning
Commission
 Towns up to 15,000 population are considered rural
NABARD  All locations with a population up to 10,000
considered rural
Sahara  Commercial establishments located in areas servicing
less than 1000 population
RBI  Located with population up to 10,000 will be
conceded as rural and 10,000 to 1,00,000 as semi
urban.

4. In the India context, the word ‘RURAL’ is so much associated
with agriculture and farmers that rural marketing tends to be
seen as a marketing of inputs or outputs relates agriculture.

5.  Urban to Rural - Major part of rural marketing. Includes transactions
of urban marketers who sell their goods and services in rural areas
Pesticides, fertilizes, FMCG products, consumer durable, etc.
RURAL TO URBAN– Basically falls under agricultural marketing. A rural
producer seeks to sell his produce in urban market like seeds, fruits
and vegetables, forest produce, spices, milk and related products etc.
RURAL TO RURAL – Includes the activities that take place between two
village in close proximity to each other like agricultural tools,
handicrafts, dress materials, bullock carts, etc.

6. I. Literacy Low High
II. Per Capita Income Low High
III.Demand Seasonal Uniform
IV.Source of Information Word of mouth Any Media
V. Product Knowledge Not Known Known
VI.Product as Status Symbol Mostly No Mostly Yes
VII. Consumer Protection Available Rarely Easily Available
VIII. After-sales Services Availability Inadequate Adequate
IX. Timeliness Supply Ultimately Timely
X. Physical Communication Facilities Poor Very Good

7. Rural marketing is a function which manages all those
activities involved in assessing, stimulating and converting
the purchasing power into an effective demand for specific
products and services, and moving them to the people in
rural area to create satisfaction and a standard of living to
them and thereby achieves the goals of the organization.

8.  Housing
Health
Education
Water Supply
Road Network
Communication
Rural Property
Rural Artisans
Cultural Factors
Rural Income

9. PHASE ORIGIN FUNCTION MAJOR
PRODUCT
SOURCE
MARKET
DESTINATIO
N
MARKET
Phase I Before
mid1960
Agricultural
marketing
Agricultural
produce
Rural Urban
Phase II Mid Sixties Marketing of
agricultural
inputs
Agricultural
input
Urban Rural
Phase III Mid Nineties Rural
Marketing
Consumables
and durables
for
consumption
and
production
Urban
and
rural
Rural
Phase IV 21st Century Development
al marketing
All products
and services
Urban
and
rural
Urban and
rural

10. Large Population
Occupation Pattern
Large, diverse and Scattered Markets
Rural Income
Low Standard of living
Low Literacy Level
Inadequate Land Distribution
Land use Pattern
Irrigation
Medial Facilities
Urban Orientation
Rural Credit

11. Classification
The rural consumers are classified into following groups based
on their economic status:
The Affluent Group
The Middle Class
The poor

12. High involvement in Product
Purchase small quantity
Brand loyal
Quality Conscious
Understand Symbols and Colours better
Influenced by opinion
Purchasing decisions taken by eldest member
Seasonal Demand

13. Sector %Share in
Employment(1987)
%Share in
Employment(2016)
Agriculture 75 67
Transport and
Communication
2 8
Trade and
hotels
5 7
Construction 4 7
Manufacturing 7 8
Others 7 13

14. Large Population
Growth of market
Raising of rural property
Infrastructure is improving rapidly
Increasing income and Purchasing Power
Accessibility of market
Competition in urban Market
Saturation of urban market
New employment opportunities
Growth in Consumption

15. Company Rural Sales (in %)
HUL 50
Colgate 50
Hero 40
LG 40
Godrej 30
Kinetic 30
Ranbaxy 17
Cipla 18
Marico 25
Glaxo 25

16. Understanding the rural Consumer
Lower per capita income
Low literacy levels
Seasonal Demand
Lack of proper infrastructure
Underdeveloped People
Underdeveloped markets
Traditional Outlook
Many language and Dialects

17. * Barter System
* Inadequate Media coverage for promotion
* Availability of duplicate and cheap brands
* Slow Purchasing Power
* Problems related to distribution and channel management
*Cultural Factors
* Vast and scatted market

18. Products Rural Urban
Bicycles 78 22
Mechanical Watches 83 17
Washing Cakes 68 32
Colour TV 37 63
Washing Machine 17 83
Refrigerators 28 72
Toothpaste 47 53
Shampoo 33 67
Face Cream 28 72
Tooth Powder 78 22

19. Segmentation
Product Strategy
Pricing Strategy
Physical Distribution
Channel Management
Sale Force Management
Marketing Communication

20. FMCG Rs.65000
Agri-inputs Rs.45000
Durables Rs. 5000
Automobiles(2 & 4 wheelers) Rs. 8000
Clothes, footwear etc. Rs.35000
Construction Material Rs.15000
TOTAL Rs.173000
In Crore

22. “Yaara da Tashan….” ads with Amir Khan
created universal appeal for Coca Cola

23. In 2000,ITC took an initiative to develop direct contact with
farmer who lived in far-flung villages in Madhya Pardesh.
ITC’s e-choupal was the result of this initiative.

24. Rural market are growing at a faster pace and offer
tremendous opportunities for marketing a variety of
consumer goods and services. However, rural markets and
rural marketing have special feature as compared to urban
market.