Profile Rural Marketing
1.1Introduction to Rural Marketing:
The rise in rural marketing provided volume growth to all leading companies inthe beginning of 90’s. Rural markets are facing many challenges to target rural markets.Higher rural incomes driven by agricultural growth have increased the purchasing power to consume branded and value-added products in rural areas. Marketers andmanufacturers are increasingly aware of the purchasing power, size and demand base of the Indian hinterland. Efforts are been made by them to understand the attitude of ruralconsumers.Marketers want to follow the principle of WALK THEIR WALK and TALK THEIR TALK. Marketing mix is framed according to rural tastes and lifestyles.For example: MIRC ELECTRONICS, which owns the Onida television brand, launchedIGO, which was positioned as a value-for-money brand targeted at rural markets,especially customers who were upgrading their black-and-white TVs, which constitutes65%
of the total colour television buyers. The ad campaign screamed loudly in rurallexicon: “kasam se, kya TV hai!”
1.2Definition of Rural Marketing:
According to Prof. Ramkishen Y
“Rural marketing is the process of developing, pricing, promoting, distributing rural-specific goods and services, leading toexchanges between urban and rural markets, which satisfies consumer demand and alsoachieves organizational objectives.”Let us understand this definition and its implications: -
Rural marketing involves a two way marketing process.
Every want is backed by an ability and willingness to buy. These are knownas ‘demands’. Marketers are now trying to satisfy the rural demands bycustomizing the products and manufacturing the products as per the demand.
1.3Statistical Approach to Rural Marketing:
Government agencies like IRDA (Insurance Regulatory and Development Authority)and NCAER (National Council for Applied Economic Research) define ‘rural’ as“villages with a population of less than 5,000, with 75% of the male populationengaged in agriculture, etc.”
Two-thirds of the country’s consumers live in rural areas, which are around 700million people, and almost 26% of the National income is generated there.
10 consecutive monsoons have led to 26% of GDP as returns from agriculture. Thishas increased their purchasing power.
India is divided into 597 districts, and has 6,38,667 villages, of which 32% can bereached as they are connected by pucca roads.