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EMERGING
ISSUES IN RURAL
MARKETING
INTRODUCTION
 The concept of rural marketing in Indian
economy has always played an influential role in
the lives of people. In India, leaving out a few
metropolitan cities, all the districts and industrial
townships are connected with rural markets.
 The rural market in India is not a separate entity
in itself and it is highly influenced by the
sociological and behavioral factors operating in
the country.
Rural Markets are defined as those segments of
overall market of any economy, which are
distinct from the other types of markets like
stock market, commodity markets or Labor
economics.
Typically, a rural market will represent a
community in a rural area with a population of
2500 to 30000.
However, rural marketing determines the
carrying out of business activities bringing in the
flow of goods from urban sectors to the rural
regions of the country as well as the marketing
NATURE OF RURAL MARKET
Large, diverse and scattered market.
Major income of rural consumers is from
agriculture.
Traditional outlook.
Standard of living and rising disposable
income of the rural customers.
Rising literary levels.
Diverse socio economic background.
Infrastructure facilities.
SIGNIFICANCE OF RURAL
MARKET
1. Increase in population and hence increase in
demand.
2. A marked increase in the rural income due to
agrarian prosperity.
3. Standard of living is also increasing in rural areas
4. Large inflow of investment for rural development
programmes from government and other sources
5. Increased contact of rural people with their urban
counterparts due to development of transport and
wide communication network
6. Increase in literacy and educational level and
resultant inclination to sophisticated lives by the
rural folks.
7. Inflow of foreign remittances and foreign made
CLASSIFICATION OF RURAL
MARKET
The rural consumers are classified into
following groups based on their
economic status :
The Affluent Group.
The Middle Class.
The Poor.
ROAD BLOCK OF INDIAN RURAL
MARKET
 Standard of living.
 Low literacy levels.
 Low per capita income.
 Transportation and warehousing.
 Ineffective distribution channels.
 Many languages and diversity in culture.
 Lack of communication system.
CONT…
 Seasonal demand.
 Dispersed markets.
 Barter system.
 Underdeveloped people and underdeveloped
markets.
 Lack of proper physical communication facilities.
 Inadequate Media coverage for rural
communication.
 Market organization & staff
EMERGING TRENDS IN RURAL
MARKETING
 Online rural market (internet, nicnet).
 Information through local agriculture input
dealers.
 Cost benefit analysis.
 Need based production.
 Processing industry.
 Rural agri- export.
 Integrated Marketing
CONCLUSION
 Rural markets, as part of any economy, have
untapped potential. Rural market is different from
the urban market so it requires the different
marketing strategies and marketer has to meet the
challenges to be successful in rural market.
 . The concept of rural markets in India, as also in
several other countries, like China, is still in evolving
shape, and the sector poses a variety of challenges.
 Thus, looking at the challenges and the
opportunities, which rural markets offer to the
marketers, it can be said that the future is very
promising for those who can understand the
dynamics of rural markets and exploit them to their
best advantage.

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Emerging issues in rural marketing

  • 2. INTRODUCTION  The concept of rural marketing in Indian economy has always played an influential role in the lives of people. In India, leaving out a few metropolitan cities, all the districts and industrial townships are connected with rural markets.  The rural market in India is not a separate entity in itself and it is highly influenced by the sociological and behavioral factors operating in the country.
  • 3. Rural Markets are defined as those segments of overall market of any economy, which are distinct from the other types of markets like stock market, commodity markets or Labor economics. Typically, a rural market will represent a community in a rural area with a population of 2500 to 30000. However, rural marketing determines the carrying out of business activities bringing in the flow of goods from urban sectors to the rural regions of the country as well as the marketing
  • 4. NATURE OF RURAL MARKET Large, diverse and scattered market. Major income of rural consumers is from agriculture. Traditional outlook. Standard of living and rising disposable income of the rural customers. Rising literary levels. Diverse socio economic background. Infrastructure facilities.
  • 5. SIGNIFICANCE OF RURAL MARKET 1. Increase in population and hence increase in demand. 2. A marked increase in the rural income due to agrarian prosperity. 3. Standard of living is also increasing in rural areas 4. Large inflow of investment for rural development programmes from government and other sources 5. Increased contact of rural people with their urban counterparts due to development of transport and wide communication network 6. Increase in literacy and educational level and resultant inclination to sophisticated lives by the rural folks. 7. Inflow of foreign remittances and foreign made
  • 6. CLASSIFICATION OF RURAL MARKET The rural consumers are classified into following groups based on their economic status : The Affluent Group. The Middle Class. The Poor.
  • 7. ROAD BLOCK OF INDIAN RURAL MARKET  Standard of living.  Low literacy levels.  Low per capita income.  Transportation and warehousing.  Ineffective distribution channels.  Many languages and diversity in culture.  Lack of communication system.
  • 8. CONT…  Seasonal demand.  Dispersed markets.  Barter system.  Underdeveloped people and underdeveloped markets.  Lack of proper physical communication facilities.  Inadequate Media coverage for rural communication.  Market organization & staff
  • 9. EMERGING TRENDS IN RURAL MARKETING  Online rural market (internet, nicnet).  Information through local agriculture input dealers.  Cost benefit analysis.  Need based production.  Processing industry.  Rural agri- export.  Integrated Marketing
  • 10. CONCLUSION  Rural markets, as part of any economy, have untapped potential. Rural market is different from the urban market so it requires the different marketing strategies and marketer has to meet the challenges to be successful in rural market.  . The concept of rural markets in India, as also in several other countries, like China, is still in evolving shape, and the sector poses a variety of challenges.  Thus, looking at the challenges and the opportunities, which rural markets offer to the marketers, it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage.