This document discusses rural buying behaviour and marketing in India. It covers the key features of rural markets, including large and scattered populations and traditionally lower standards of living. The evolution of rural marketing is examined in four phases from independence to the present. Challenges of rural marketing like transportation and communication issues are also outlined. The document reports on a study of buying behaviour in rural Pondicherry for watches and footwear. Key factors like price, quality and brand awareness are identified. Effective rural marketing strategies and examples of successful companies operating in rural India are also provided.

1. RURAL BUYING
BEHAVIOUR

2. PRESENTED BY
Samiksha. K 17-I-
108
Shabeeha.S 17-I-
117
Michael.S 17-I-
116
Rajeshwari .G 17-I-
132
Jayant . C 17-I-
103

3. What is Rural Marketing?

4. RURAL MARKETING (contd.)

5. FEATURES OF RURAL
MARKETING
 Large and Scattered Population
 Higher Purchasing Capacity
 Market Growth
 Development of Infrastructure
 Low Standard Of Living
 Traditional Outlook
 Marketing Mix

6. EVOLUTION OF RURAL
MARKETING
Phase Time Period Purpose Major Products Source
Market
Target
Market
I Since Independence but
before green revolution
Agricultural
Marketing
Agricultural Produce Rural Urban
II Green Revolution to
Pre- liberalisation
Marketing of
Agri – Inputs
Agricultural Inputs Urban Rural
III Post – liberalisation
period in 20th Century
Rural
Marketing
Consumables and durables
for consumption and
production
Urban &
Rural
Rural
IV 21st Century Developmental
Marketing
All Products and Services Urban &
Rural
Urban &
Rural

7. RURAL BUYER SELLER
MATRIX
Intra Rural
(All
Products)
Consumer
Goods/
Services/
Agro Inputs
Farm and
non Farm
Products
Intra Urban
Rural Urban
RuralUrban
Buyer
Seller

8. PROBLEMS OF RURAL
MARKETING
 Transportation
 Communication
 Availability of appropriate
media
 Warehousing
 Village Structure In India
 Rural Markets and Sales
Management
 Inadequate Banking and
Credit Facilities
 Branding
 Packaging

9. RURAL MARKETING MODEL
Research
Segmentation
Lifestyle
Analysis
Profile Study
Defining
Needs
Target Market Marketing Mix
Implementatio
n
Control

10. URBAN MARKETING V/S. RURAL
MARKETING
Philosophy
Market
• Demand
• Competition
• Consumers
• Literacy
• Income/ Expenditure
• Needs
• Adaptation
Product
• Awareness
• Concept
• Positioning
• Usage
• Quality Preference/
Features

12. OBJECTIVES OF THE STUDY
 To find out who influences
the buying decisions of the
products.
 To find out the various
factors considered by rural
customers.
 To find out the occasion /
time of purchase of
products.

13. SCOPE OF THE STUDY
 Study with respect to buying behaviour
of Wristwatches and Footwear
 Villages having population of more than
1000
 Region Selected: Pondicherry (164
villages over six communes)
 Random selection of villages but
proportionate respondents
 Final Sample Size spread over 70
villages
 102 respondents for Wristwatches
 91 respondents for Footwear

14. LIMITATION OF THE STUDY
 Relatively small
sample size
 Focus on one
geographical area
 Inclusion of only two
products for scrutiny

15. OBSERVATIONS OF THE
STUDY
WATCHES
 Decision for buying a watch are
taken by buyer himself
 Retailers and advertisements are
important influencing factors
 Watches are bought when
necessary
 Consideration of price as an
important factor
 Titan was found to be most preferred
brand in watches

16. OBSERVATIONS OF THE
STUDY
FOOTWEAR
 Less importance to brands
 Quality and Price are important
influencing factors
 Footwear are bought when the last
one wears out
 Purchase from nearby town and
tend to visit one shop
 Consideration of Utility and
longevity as important factor in
purchase decision

17. EXAMPLES OF INDUSTRIES
 Hindustan Lever Ltd.
 Henkel Spic India Ltd.
 Maharaja Appliances Ltd.
 Sony Ltd.

18. CONCLUSION OF THE STUDY
 Consider brand name and price as important elements in buying
wristwatches
 Importance to quality of footwear
 Preference given to shop only at one place
 Buying of the products is based on the need , no wait for any offer or
festive season
 Suggestion:
 Make available quality products at affordable prices in towns
 Accessibility to maximum number of villages

19. EFFECTIVE STRATEGIES FOR
FMCG IN RURAL MARKET
Price
Promotion
Store
Operations
Communication
Product

20. FACTORS CONTRIBUTING
CHANGE IN RURAL MARKET
 Rural Communication
 Emerging role of Bio - Tech in Indian Agricultural Sector
 Green Revolution
 Development Programmes
 Intensive Agricultural District Programme (IADP- Package Programme)
 Intensive Agricultural Area Programme (IAAP)
 High Yielding Varieties Programme (HYVP- Green Revolution)
 Operation Flood I, II and III (White Revolution)
 Fisheries Development (Blue Revolution)
 Integrated Rural Development Programme (IRDP)

21. VALUE ADDITION TO RURAL
MARKETING

22. SUCCESSFUL EXAMPLES OF
COMPANIES IN RURAL MARKET