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RURAL MARKETING
Rural marketing involves the process
of developing, pricing, promoting
,distributing rural specific product and a
service leading to exchange between rural
and urban market which satisfies
consumer demand and also achieves
organizational objectives.
Why Rural Market ?
 Agriculture’s share in GDP is going
down, but, India still lives in her villages
 Urban markets are crowded and
saturated
 The understanding of “rural” is diffused
and sometimes confusing
 Is “rural marketing” different from “urban
marketing” ?
Rural Economy
 Agriculture is the main stay of the
Indian economy, as it constitutes the
backbone of rural India which
inhabitants more than 70% of total
Indian population.
 Discuss the ancient India
Five-year plan
 Jawaharlal Nehru presented the first
five-year plan to the Parliament of
India on December 8th 1951
 Milestone of Indian History
 11 th five year plan started in march
2007
Turning Points
 Green Revolution Dr M S
Swaminathan
 White Revolution Dr Vargeese
Kurian
 Blue Revolution Dr Hirala Chaudri
 Telecom Revolution Sam
Pitharado
Five-year plan changed the face
of rural development
 1950 – 2000
 Barter to cash rich economy
 Economic Allocation crossed one lack
crore
 Rapid increase in literacy rate
 HDI - Human Development Index
 HDI includes economic, educational
and health development
Reason behind the development
of rural economy
 Value Addition
Rural Economy
Farm Sector
Agriculture
Animal
Husbandry
Horticulture
Forestry
Fishing
Non-Farm Sector
Rural Industries
Agro Processing
Manufacturing
Mining &
Quarrying
Construction
Rural
Services
Retailing &
Trading
Community &
Social Service
Transport &
Storage
Communication
Rural Income
Rs 7006 billion
Agriculture
53%
Self
Employed
43%
Wage
Earner
10%
Non
Agriculture
47 %
Formal
31 %
Informal
16%
Rural Population
Agriculture
73%
Self
Employed
40%
Wage
Earner 33%
Non
Agriculture
27 %
Formal
15 %
Informal
12 %
Rural Per capita
Income Rs 9481
Agriculture
Rs 6855
Self
Employed
Rs 10150
Wage
Earner Rs
2860
Non
Agriculture
Rs 16464
Formal
Rs 19514
Informal
Rs 12595
Why Policy Intervention
Required
 Improving the quality of life of rural
people
 Reducing urban rural disparities
How we can achieve this aim
?
 Proper attention to agriculture
 Focus on cropping system
 Region based strategy is required
 Credit and insurance system
Various Steps taken
 Institutional Credit
 Involvement of panchayat raj
institutions
 Self help groups
 NABARD
 Communication
Union Budget 2001
 Pradhana manthri Gramodhana Yojana
 Self Employment Scheme
 Employment assurance scheme
 Janashree bima yogana – insurance
cover
 Rural Infrastructure fund
 Micro finance
 Policy on land , water, agriculture and
housing
 Encouraging rural industry,CSR, to digital
world.
Rural Infrastructure
 Road connectivity
 Post office
 Radio
 Television
 Press and Print Media
 Telecom service
 Mobile service
 Electrification
Social Infrastructure
 Rural Health Service
 Sub centers
 Primary Health centers
 Community Health centers
 Public distribution system
Agri Infrastructure
 Mandis
 Agricultural cooperatives
 Haats and Melas
Commercial Infrastructure
 Regional Rural bank
 Scheduled commercial bank
 Service cooperative bank
Challenges to Indian Marketer
(Marketing perspective )
 Indian market is open to foreign
companies
 The increasing number of cross
boarder alliance
 Growth of global brand in Indian
market
 Global life style
 Emergence of attractive rural market
Rural Marketing perspective
 Under developed people
 Under developed market
 Improper communication facilities
 Many languages
 Vastness & uneven spread
 Low per capita income
 Poor infrastructure facilities
 Seasonal demand
 Ineffective distribution channel
 Spurious brands
To overcome these challenges
 Strategic alliance, mergers and
acquisitions
 Reengineering
 Adopting TQM
 Supply chain management
 Tap untapped market

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Rural marketing module 1

  • 1. RURAL MARKETING Rural marketing involves the process of developing, pricing, promoting ,distributing rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives.
  • 2. Why Rural Market ?  Agriculture’s share in GDP is going down, but, India still lives in her villages  Urban markets are crowded and saturated  The understanding of “rural” is diffused and sometimes confusing  Is “rural marketing” different from “urban marketing” ?
  • 3. Rural Economy  Agriculture is the main stay of the Indian economy, as it constitutes the backbone of rural India which inhabitants more than 70% of total Indian population.  Discuss the ancient India
  • 4. Five-year plan  Jawaharlal Nehru presented the first five-year plan to the Parliament of India on December 8th 1951  Milestone of Indian History  11 th five year plan started in march 2007
  • 5.
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  • 8. Turning Points  Green Revolution Dr M S Swaminathan  White Revolution Dr Vargeese Kurian  Blue Revolution Dr Hirala Chaudri  Telecom Revolution Sam Pitharado
  • 9. Five-year plan changed the face of rural development  1950 – 2000  Barter to cash rich economy  Economic Allocation crossed one lack crore  Rapid increase in literacy rate  HDI - Human Development Index  HDI includes economic, educational and health development
  • 10. Reason behind the development of rural economy  Value Addition
  • 11. Rural Economy Farm Sector Agriculture Animal Husbandry Horticulture Forestry Fishing Non-Farm Sector Rural Industries Agro Processing Manufacturing Mining & Quarrying Construction Rural Services Retailing & Trading Community & Social Service Transport & Storage Communication
  • 12. Rural Income Rs 7006 billion Agriculture 53% Self Employed 43% Wage Earner 10% Non Agriculture 47 % Formal 31 % Informal 16%
  • 14. Rural Per capita Income Rs 9481 Agriculture Rs 6855 Self Employed Rs 10150 Wage Earner Rs 2860 Non Agriculture Rs 16464 Formal Rs 19514 Informal Rs 12595
  • 15. Why Policy Intervention Required  Improving the quality of life of rural people  Reducing urban rural disparities
  • 16. How we can achieve this aim ?  Proper attention to agriculture  Focus on cropping system  Region based strategy is required  Credit and insurance system
  • 17. Various Steps taken  Institutional Credit  Involvement of panchayat raj institutions  Self help groups  NABARD  Communication
  • 18. Union Budget 2001  Pradhana manthri Gramodhana Yojana  Self Employment Scheme  Employment assurance scheme  Janashree bima yogana – insurance cover  Rural Infrastructure fund  Micro finance  Policy on land , water, agriculture and housing  Encouraging rural industry,CSR, to digital world.
  • 19. Rural Infrastructure  Road connectivity  Post office  Radio  Television  Press and Print Media  Telecom service  Mobile service  Electrification
  • 20. Social Infrastructure  Rural Health Service  Sub centers  Primary Health centers  Community Health centers  Public distribution system
  • 21. Agri Infrastructure  Mandis  Agricultural cooperatives  Haats and Melas
  • 22. Commercial Infrastructure  Regional Rural bank  Scheduled commercial bank  Service cooperative bank
  • 23. Challenges to Indian Marketer (Marketing perspective )  Indian market is open to foreign companies  The increasing number of cross boarder alliance  Growth of global brand in Indian market  Global life style  Emergence of attractive rural market
  • 24. Rural Marketing perspective  Under developed people  Under developed market  Improper communication facilities  Many languages  Vastness & uneven spread  Low per capita income  Poor infrastructure facilities  Seasonal demand  Ineffective distribution channel  Spurious brands
  • 25. To overcome these challenges  Strategic alliance, mergers and acquisitions  Reengineering  Adopting TQM  Supply chain management  Tap untapped market