Rural marketing is defined as developing, pricing, promoting, and distributing rural-specific goods and services to satisfy consumer demand and achieve organizational objectives. It involves all aspects of the market structure including pre- and post-harvest operations for farm commodities in rural areas. Rural marketing has evolved over decades from agricultural marketing to marketing of agricultural inputs to current marketing of all products and services to both urban and rural consumers. The rural marketing model involves segmenting the rural market, selecting target markets, developing profiles of segments, defining and prioritizing their needs, developing or modifying the marketing mix, implementing plans, and controlling the process. Rural and urban markets differ in factors like infrastructure availability, income sources, lifestyles, socio-

1. Rural Marketing
Module 1
Prof. Raghavendran Venugopal

2. RM
 Learning Objectives:-
Definition
Scope of rural marketing
Components of Rural Marketing
Classification of Rural Marketing
Concepts & difference between
Urban & Rural Markets

3. Definition
The 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 is
All location within a municipality/ corporation,
cantonment board or a notified town area committee
All 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.

4. 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.

5. Phased Evolution of Rural marketing
 Rural marketing exists today is a result of evolution
over many decades. The below table describes
Phase 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

6. 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

7. 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
problem
Media reach in Habits Varies a lot Varies a little
Nature of competition Less Lot

8. Module 1 completed
Prof. Raghavendran Venugopal