This document discusses rural marketing in India. It defines rural marketing and notes that villages make a high contribution to national income mainly through agriculture and related occupations. It outlines several key features of rural Indian markets including traditional customer attitudes, cultural diversity, low incomes, vast scattered markets, seasonal demand, and traditional lifestyles. Infrastructure is also noted to be less developed. Potentials for rural marketing include a growing population, rising literacy and prosperity, changing lifestyles and consumption patterns, and increasing demand for branded products. Overall the document provides an overview of characteristics and opportunities in India's large rural marketing sector.
1. Rural marketing in India
B.Com S2 University of Calicut
Dr. Shafeer P S,
Assistant professor in Commerce,
MES Asmabi college, P Vemballur, Mob: 9847250464
2. Meaning and definition of Rural marketing
◈ Marketing in Rural area
◈ High contribution of villages towards
national income
◈ Mainly income from agriculture and allied
occupations
◈ Asian paints is the first rural marketing
company in India
◈ Now, HUL has high market share in Rural
marketing
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3. Salient features of rural marketing in India
1. Customers
Simple living
Traditional attitude
Innocent by nature
High beliefs in religious and
customs
Growing literacy rate
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4. Salient features of rural marketing in India
2. Cultural diversity
Different language, religion,
culture, tradition and social
customs
Reflection in the marketing
activities
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5. Salient features of rural marketing in India
3. Income level
Low income group
Living below poverty level
Tendency to migrate to urban
areas
Needs are low price and low
quality goods
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6. Salient features of rural marketing in India
4. Vast scattered markets
Indian rural markets are bigger that
US/Russia markets
It is very large
Scattered and diverse
5. Seasonal demand
income during harvest season
Purchases are based on this
Showing during festivals such Diwali,
Onam, Eid etc.
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7. Salient features of rural marketing in India
6. Market structure
Private sole traders, co-operatives,
fair price shops etc.
7. Infrastructural facilities
Transpiration
Warehousing
Communication networks
Not developed transportation
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8. Salient features of rural marketing in India
8. Traditional life
Governed by old customs
Difficulty adapt new practices
9. Buying decisions
Cautious in buying decisions
Slow and delayed buying decisions
10. Spread of Cable TV
Cable TV has major impact on Villagers
Changes in life style and consumption
patterns
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9. Potentials of rural marketing in India
1. Growing population
Population is growing
In 2001 census, rural population was
74.16 Crores
2. Increasing literacy rate
Increasing literacy rate
Higher number of graduates than
Urban area
Demand for non-farm products
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10. Potentials of rural marketing in India
3. Rising prosperity
Income level increasing
Central Govt. Schemes MGNREG
4. Growth in consumption
Growing higher income class people
White collar jobs
5. Changing life style
Preference shifting on Cloths, Food habits
etc.
Consumption higher money for non-food
items 10
11. Potentials of rural marketing in India
6. Higher market growth
Growing rapidly
Becoming attractive market
7. Less Expensive
Not expensive compared with urban
marketing
High initial expenses
Good return on investment in long run
8. Lesser dependents on agriculture and Monsoons
Now a days, increasing non-farming
sectors also 11
12. Potentials of rural marketing in India
9. Increasing demand for branded products
Innovative & branded products getting more
demand
10. Increasing demand for branded products
Promotion from Govt.
Tax exemption
Subsidy
Concessions
Incentives etc.
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