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Rural Marketing

Rural Marketing

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Published by manjiree9

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Published by: manjiree9 on Dec 10, 2009
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MBA-H4010 Rural Marketing1
RURAL MARKETING“Rural MarketingisReal Marketing
The predominantly rural character of India’s national economy isreflected in the very high proportion of its population living in rural area’s:They were
Year Rural Population
In 1901 89 per centIn 1951 83 percentIn 1971 80 percentIn 1981 76 per centIn 1991 74 per centIn 2001 73 per centWith more than 700 million people living in rural areas, in some5,80,000 villages, about two—third of its workforce was engaged in agricultureand allied activities with a contribution of 29 percent of India’s Gross DomesticProduct (GDP), India’s economy is predominantly rural in character.India’s economy can be thought of as comprising of two main sectors,namely, the Rural Sector and the Urban Sector. The Rural sector is, in turn,
MBA-H4010 Rural Marketing2composed of two main sub sectors i.e. the agricultural sub sector and the non—agricultural sub sector.
Fig.: Classification of Indian Economy 
MBA-H4010 Rural Marketing3The non-agricultural sub sector comprises agricultural and alliedeconomic activities such as Crop Cultivation, Animal Husbandry, Dairying,Fisheries, Poultry and Forestry (Floriculture) etc.The non—agricultural sub sector consists of economic activities relatingto Industry, Business and Services. Industry have refers to cottage and villageindustries, Khadi, handloom, handicraft, etc.Business refers to trading of general goods, small shops, petty tradersetc., whereas services refers to Transportation, Communications, Banking,Postal, Education etc.The size and potential market of the rural sector could be measured interms of the rural population, the population of livestock, the extent of land,forest and other natural resources.According to the population census of 1991, India’s rural population was62.87 crore, which accounted for 74.3 percent of the country’s total population.Till recently, the focus of marketers in India was the urban consumer andby large number specific efforts were made to reach the rural markets. But nowit is felt that with the tempo of development accelerating in rural India, coupledwith increase in purchasing power, because of scientific agriculture, thechanging life style and consumption pattern of villagers with increase ineducation, social mobility, improved means of transportations andcommunication and other penetrations of mass media such as television and itsvarious satellite channels have exposed rural India to the outside world and

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