RM Learning Objectives:- Definition Scope of rural marketing Components of Rural Marketing Classification of Rural Marketing Concepts & difference between Urban & Rural Markets
DefinitionThe term “Rural” as defined by GOI, may not satisfy all, especially the marketer because it define the rural not an account of what it is, but what is not urban.Census of India defines rural as that what is not urban, and urban isAll location within a municipality/ corporation, cantonment board or a notified town area committeeAll other locations satisfying all the criteria:1. Minimum population of 5000,2. at least 75% of male of workforce engaged in non- agricultural activities.3. A population density of over 400 persons per sq.km.
Rural Marketing Rural Marketing is defined as the process of developing, pricing, promoting, distributing rural specific goods and services leading to exchange between urban and rural markets, which satisfies consumer demand and also achieves organizational objectives. As per national commission of agriculture, “ rural marketing is a process which starts with a decision to produce a saleable farm commodity and involves all aspects of market structure or system, functional and institutional, based on technical and economic considerations, and includes pre – and post- harvest operations, assembling, grading, storage, transpo rtation and distribution.
Phased Evolution of Rural marketing Rural marketing exists today is a result of evolution over many decades. The below table describesPhase evolution of rural marketing. Time Period Nature Major Products Source Target Markets market I From Agricultural Agricultural Rural Urban Independence to marketing Produce Green Revolution II GR to pre- Marketing Agricultural Urban Rural liberalization of Inputs Agricultural Inputs III Post-liberalization Rural Consumables & Urban & Rural in 20th century. Marketing durables for rural consumption & production IV 21st Century Developme All Products and Urban & Urban & ntal Services Rural Rural
Rural Marketing Model Develop/Modify Research Implementation Marketing Mix Segment the Select Target Control Rural Market Markets Study the Develop Specific Lifestyle of need profile for different product category segments Develop profile of Define & Different Prioritize their segments needs
Rural marketing Vs Urban Marketing Differentiating Rural Markets Urban Markets Factors Infrastructure Minimum provided Maximum provided Availability Income Stream Agricultural(seasonal, Non Agricultural (Fixed highly unreliable) Income ensured) Lifestyle Daily routines Ever changing Context Varies a lot Varies a little Socio- Cultural Value for money Not exactly Background Accessibility Heterogeneous Homogeneous, markets, Logistics concentrated markets problemMedia reach in Habits Varies a lot Varies a littleNature of competition Less Lot