INTRODUCTION TORURAL MARKETING
Why should we do this course? Agriculture’s share in GDP is going down, but,India still lives in her villages Urban mark...
Session Coverage Rural India – Some definitional issues Phases/ stages in rural marketing Scope of rural marketing How...
Defining Rural IndiaOrganisationDefinition LimitationsNSSO( Census)  Population density < 400 / Sq Km 75 percent of the ...
Cont’dLG Electronics All places other thanthe 7 metrosOnly clarifies what arethe citiesNABARD All locations with apopulati...
Defining Rural MarketingNational Commissionon AgricultureNGOs Corporate RuralMarketing DefinitionDecisions to producesalea...
Phases in Rural MarketingSr. No Time Frame Key Events & Trends1 Phase One( Pre 1960’s) Marketing ruralproducts in rural a...
Cont’d2 Phase Two ( 1960s to 1990s) Green RevolutionCompanies likeMahindra andMahindra, Sri RamFertilisers and IFFCOemer...
Scope of Rural Marketing Keenly debated topic Definitions based on organisational/institutional vision, mission & goals...
Domain of Rural MarketingToRural UrbanFromRuralUrbanSource: M. Jha, Rural Marketing- Some Conceptual Issues, EPW,1988
Scope of Rural MarketingDomain ofRuralMarketingDimensions of the transactionParticipants Products/servicesModalities Norms...
Changes in Rural India Diverse change levers in rural India The “ pull of the cities & towns” – migrationand its side ef...
Transitions In Rural India• Food Grain Crops• On land activities• Farm Activities•Non –food, cash crops•Livestock & fisher...
Rural EmploymentPatterns( Male)Sector Year – 1987 ( % share inemployment)Year -2004 ( % share inemployment)Agriculture 75 ...
Rural India – Population Trends1971 1981 1991 2001TotalPopulation (inmillion)548.2 683.3 848.3 1026.9RuralPopulation (inmi...
Cont’d The joint family system is being replaced bythe nuclear family system The occupational pattern shows apredominanc...
Rural Settlement & HabitationTrends Key findings from 2001 census Population density 253/ sq kilometer and totalnumber o...
Cont’d Size of villages/ habitations are changing Role & influence of towns is changing Social interaction is a mix of ...
Rural Income TrendsAnnual Income( at 1998-99prices)Income Class 1989-90( %Households)1998-99 ( %Households)<= 35,000 Low 6...
Rural Marketing- Schools ofThought Determinist School Activist School What is the right approach? Dependent on level o...
Strategic Issues & Directions in RuralMarketing Evolutionary Vs revolutionary changes in ruralmarkets Role of state & ma...
ICT in Rural MarketsCategory Government Private NGO/ PPPInfrastructureProvisionNIC N- Logue SimputerRural Services Bhoomi(...
Close of Session Thank You
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Rural Marketing

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Rural Marketing

  1. 1. INTRODUCTION TORURAL MARKETING
  2. 2. Why should we do this course? Agriculture’s share in GDP is going down, but,India still lives in her villages Urban markets are crowded and saturated The understanding of “rural” is diffused andsometimes confusing Is “rural marketing” different from “urbanmarketing” ?
  3. 3. Session Coverage Rural India – Some definitional issues Phases/ stages in rural marketing Scope of rural marketing How is rural India changing? Schools of thought- Approaches to RuralMarkets Strategic Issues & Directions in ruralmarketing
  4. 4. Defining Rural IndiaOrganisationDefinition LimitationsNSSO( Census)  Population density < 400 / Sq Km 75 percent of the male workingpopulation is engaged in agricultureNo Municipal corporation / board rural not definedPlanningCommission Towns upto 15,000 population areconsidered ruralTowncharacteristics notdefined
  5. 5. Cont’dLG Electronics All places other thanthe 7 metrosOnly clarifies what arethe citiesNABARD All locations with apopulation upto 10, 000considered “ rural”Village & towncharacteristics notdefinedSahara Commercialestablishments locatedin areas servicing lessthan 1000 populationPopulationcharacteristics unknownSource: The Rural Marketing Book- Text & Practice, Kashyap. P and Raut.S ( 2007)
  6. 6. Defining Rural MarketingNational Commissionon AgricultureNGOs Corporate RuralMarketing DefinitionDecisions to producesaleable farmcommodities involvingall the aspects of themarket system orstructure, bothfunctional andinstitutional, based ontechnical & economicconsiderations andincludes the pre & postharvest operations.Marketing productsproduced in rural areasto urban areasMarketing productsproduced in rural areasin rural marketsFunction that managesall activities involved inassessing, stimulatingand converting thepurchasing power ofrural consumers intoeffective demand forspecific products andservices to createsatisfaction & a betterstandard of living forachievingorganisational goals.
  7. 7. Phases in Rural MarketingSr. No Time Frame Key Events & Trends1 Phase One( Pre 1960’s) Marketing ruralproducts in rural andurban areasAgricultural inputs inrural areas“Agriculturalmarketing”Farming methodswere primitive andmechanisation was lowMarkets unorganised
  8. 8. Cont’d2 Phase Two ( 1960s to 1990s) Green RevolutionCompanies likeMahindra andMahindra, Sri RamFertilisers and IFFCOemergeRural products werealso marketed throughagencies like KVIC3 Phase Three( 1990s to Present) Demand forconsumables anddurables riseCompanies findgrowth in urban marketsstagnating or falling
  9. 9. Scope of Rural Marketing Keenly debated topic Definitions based on organisational/institutional vision, mission & goals Need for a comprehensive and modularunderstanding Rural Marketing is a “ work in progress” Multi – disciplinary approach is necessary forsharper understanding
  10. 10. Domain of Rural MarketingToRural UrbanFromRuralUrbanSource: M. Jha, Rural Marketing- Some Conceptual Issues, EPW,1988
  11. 11. Scope of Rural MarketingDomain ofRuralMarketingDimensions of the transactionParticipants Products/servicesModalities Norms OutcomesRural toRuralRural toUrbanUrban toRural
  12. 12. Changes in Rural India Diverse change levers in rural India The “ pull of the cities & towns” – migrationand its side effects Effect of government programmes Civil society interventions Natural & manmade disasters Slow but sure change
  13. 13. Transitions In Rural India• Food Grain Crops• On land activities• Farm Activities•Non –food, cash crops•Livestock & fisheries•Manufacturing &services
  14. 14. Rural EmploymentPatterns( Male)Sector Year – 1987 ( % share inemployment)Year -2004 ( % share inemployment)Agriculture 75 67Transport &Communication2 8Trade & Hotels 5 7Construction 4 7Manufacturing 7 8Source: NSSO data, Mckinsey Global Institute Study, 2004-05
  15. 15. Rural India – Population Trends1971 1981 1991 2001TotalPopulation (inmillion)548.2 683.3 848.3 1026.9RuralPopulation (inmillion)524.0 628.8 741.6As a proportionof totalpopulation76.7 74.3 72.2DecadalVariation19.8 16.7 15.2Source: Census 2001
  16. 16. Cont’d The joint family system is being replaced bythe nuclear family system The occupational pattern shows apredominance of cultivators and wage earners Cultivators( 40.86 %) and WageEarners( 35.28 %) according to NCAERstudies (2002)
  17. 17. Rural Settlement & HabitationTrends Key findings from 2001 census Population density 253/ sq kilometer and totalnumber of villages is 638, 588 Villages having less than 500 population arefalling Villages having 2000 + population mostprosperous What are the implications of these trends?
  18. 18. Cont’d Size of villages/ habitations are changing Role & influence of towns is changing Social interaction is a mix of rural and urban Let’s look at some key trends in detail
  19. 19. Rural Income TrendsAnnual Income( at 1998-99prices)Income Class 1989-90( %Households)1998-99 ( %Households)<= 35,000 Low 67.3 47.935,001- 70,000 Low Middle 23.9 34.870,001 –1,05,000Middle 7.1 10.41,05,001-1,40,000Upper Middle 1.2 3.9> 1,40,000 High 0.5 3.0Source: National Council for Applied Economic Research, 2000
  20. 20. Rural Marketing- Schools ofThought Determinist School Activist School What is the right approach? Dependent on level of market development,stage in the PLC and access to resources Amul & ITC prominent examples No water-tight compartmentalisation
  21. 21. Strategic Issues & Directions in RuralMarketing Evolutionary Vs revolutionary changes in ruralmarkets Role of state & market forces ICT based interventions Partnership innovations Developmental role of rural marketing Scalability & replication of rural marketingprogrammes
  22. 22. ICT in Rural MarketsCategory Government Private NGO/ PPPInfrastructureProvisionNIC N- Logue SimputerRural Services Bhoomi( Karnataka)SewaAgri Marketing Agmarknet E- Choupal OzhwarSandhiyesAgri extension Universities EID Parry
  23. 23. Close of Session Thank You

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