RURAL MARKETING

Presented by:

Devnag G Atre Shruthi

INTRODUCTION

India markets for consumer markets is made up of two distinct parts.

1.Urban market

2.Rural market In Rural Marketing, marketer tended to price their products low, keeping the products quality at an average level, cutting cost on extra frills added to the products. The vastness of the rural market poses both a challenge and an opportunity to the marketers, ie the desire to improve the living standards is felt as keenly in rural areas as in the urban areas.

DEFINITIONS

Rural Market : 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. Rural Markets constitute an important segment of overall economy. Rural Marketing : Rural marketing is promotion of a company's products in the rural market buy using strategies which differs from that of urban market, the rural market is more price sensitive but it has preference for quality.

IMPORTANCE

In recent years, rural markets have acquired significance in countries like China and India, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. The rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing has taken shape. Also rural market is getting an importance because of the saturation of the urban market. As most of the capacity of the purchasers have been targeted by the marketers. So the marketers are looking for extending their product categories to an unexplored market i.e. the rural market. This has also led to the CSR activities being done by the corporate to help the poor people attain some wealth to spend on their product categories. Here we can think of HLL (now, HUL) the Project Shakti, ITC E-Chaupal , which is helping the poor farmers get all the information about the weather as well as the market price of the food grains they are producing. In other view these activities are also helping the companies increase their brand value.

IMPORTANCE

Size of the Rural Market The Market for Agriculture inputs Helpful in food processing industry Helpful in economic development Increase in Farm Income Adoption and spread of New Technology Employment Utility Creation 1.Form Utility
2. Place Utility 3. Time Utility

4.Possession Utility

PROBLEMS

Underdeveloped people and underdeveloped markets. Lack of proper physical communication facilities. Media for rural communication. Multiplicity of dialects and languages. Vastness and uneven spread.

Low per capita income. Logistics, storage, handling and transport. Market organization and staff. Product positioning. Hierarchy of markets. Low levels of literacy. Seasonal demand.

CHALLENGES

Understanding the Rural Consumer. Poor Infrastructure. Physical Distribution . Channel Management. Promotion and Marketing Communication Inadequate media coverage. Underdeveloped markets. Many languages and dialects. Barter system .

OPPORTUNITIES

In financial year 2001-02, LIC sold more than

50% of its policies in rural market. 42 million rural households (HHs) are availing banking services in comparison to 27 million urban HHs. * Investment in formal savings instruments is 6.6 million HHs in rural and 6.7 million HHs in urban.
.

In last 50 years, 45% villages have been connected by road. More than 90% villages are electrified, though only 44% rural homes have electric connection. Government is providing subsidiaries to the villagers to use other source of energy like Solar System and is now being used in large amount. Number of "pucca" houses increasing day by day.

Rural literacy level improved from 36% to 59%. Percentage of BPL families declined from 46% to 25%. Out of two million BSNL mobile connections, 50% are in small towns / villages. 41 million Kisan Credit Cards have been issued (against 22 million credit-plus-debit cards in urban), with cumulative credit of Rs. 977 billion resulting in tremendous liquidity.

EMERGING TRENDS

Online rural marketing Information through local agriculture input dealers. Cost benefit analysis. Need based production. Market driven extension. Processing industry Apnamandi/ kisaanmandi/ rythubazaar Rural agri export

STRENGTHS AND WEAKNESESS

Brand loyalty provided satisfied with the products functional utility. Increment in the rural income. Growth oppourtinities are more. Increase in literacy level.

Complexities of distribution and logistics management. Purchase simple and low price goods. Banking and credit facilities are not extensive. Communication problems with regard to the marketing information.

DIFFERENCES BETWEEN URBAN AND RURAL CONSUMER

CRITERIA
1. DEMAND 2. COMPETITION 3. LOCATION 9. PRODUCT: a) AWARENESS b) CONCEPT c) POSITIONING d) USAGE METHOD e) QUALITY PREFERENCE 10. PROMOTION: a) ADVERTISING b) PERSONAL SELLING c) SALES PROMOTION d) PERSONAL SELLING 11.PRICE: a) SENSITIVE b) LEVEL DESIRED

4. LITERACY
5. INCOME 6. EXPENDITURE 7. NEEDS 8. INNOVATION/ ADAPTION

12. DISTRIBUTION: a) CHANELLS b) TRASPORT FACILITIES c) PRODUCT AVAILABILITY

MARKET SEGMENTATION

CLIMATE LEVEL OF IRRIGATION RURAL PRODUCTIVI TY NEARNESS TO FEEDER TOWNS

POPULATION SPREAD AGEWISE SEGMENT LITERACY INCOME OVERALL PROFILE OF THE VILLAGE.

DEMOGRAPHIC

GEOGRAPHIC

CONCLUSION

Rural markets, as part of any economy, have untapped potential. There are several difficulties confronting the effort to fully explore rural markets. 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, including understanding the dynamics of the rural markets and strategies to supply and satisfy the rural consumers.

THANK YOU!!!!!!!!!!!!!!

IMPORTANCE