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Problems in Rural Marketing

Problems in Rural Marketing

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Published by Ayan Sur

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Published by: Ayan Sur on Sep 10, 2010
Copyright:Attribution Non-commercial


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Problems in rural marketing

³Vast untapped potential, but not very easy operate´ Do you agree with this statement.

Underdeveloped people and Underdeveloped market        Literacy level is very low. Modern technology is not adopted in many parts of the country 75 districts in the country are drought prones Small land holders are not able to take advantage of modern technology Low income led to low disposable income Not financially stable Traditional values and habits .

.Lack of Proper Physical Communication Facilities    Nearly half of the villages do not have allallweather roads. ³Pradhan Mantri Gram Sadak Yojana´ promises to connect all the villages with 500 persons and above in plains and 250 persons and above in hill areas by all-weather roads by all2007. Many villages in eastern part of the country are inaccessible during the monsoon.

.Media for Rural Communication      Radio TV network Cinema ± 3000 to3500 mobile theatres are there in remote villages Van on wheel Print media less popular due to low literacy rate.

Many Languages and Dialects   Languages only 16 Dialects around 850 .

Only 2 lakh medium and large villages have adequate potential Appropriate distribution and promotional strategies for rural market .Vastness and Uneven Spread     No. of villages is more than 5 lakhs and 146 million household in 1990 67% of the villages have population less than 500 persons accounts for 26% of the total population.

Distribution of income is highly skewed Long time to liquidate the stock .Low Per Capita Incomes    Only 30% of GDP is generated in rural areas by 72% of the India¶s population.

Storage Handling and Transport      Good storage facilities are not available. offering them credit. Rural conveyance like camel cart. company have to identify the potential shopkeepers. . Poor transport facilities. bullock cart are used for physical transportation of goods. To enter the rural market. assuring periodic supplies and motivate them to identify consumer has to be done for rural distribution.Logistics. Shops are not available in many villages.

Rural are not homogeneous.Market Organisation and Staff    Manufacturer have to make huge investment on marketing organisation and staff for effective control of the rural market. The staff have to be well trained to understand the rural market before entering the market. so different market will require different treatment .

Positioning strategies has to be different for different market and different consumer segment. pack size and prices for different segment. Varying qualities.Product Positioning    Market is heterogeneous. so require different product for different market. .

Rural consumer generally visit the nearby town/mandies for selling and products. . Distribution network has to be different for commodities ad depending upon the purchase habits of rural people.Hierarchy of markets    There cannot be uniform distribution policy for all products.

Low Levels of Literacy      Print media is not very effective for rural consumer. Density of population is low as well as electronic media is expensive . . Collaborative promotion and distribution can help the companies for rural market penetration. Electronic media is more effective for Rural Promotion. Rural customer do less experiment with new products. so rural promotion is expensive.

. Festival season. the demand pattern is also seasonal for agricultural inputs as well as consumable goods.Seasonal Demand   75% of the rural income is generated through agricultural operation which is seasonal. harvesting seasons and rural melas plays important role rural purchase.

Financial problems    Inadequate banking facilities Complicated procedure and formalities Credit facilities .

Branding     Market segmentation Development of brand name Packaging Salesman .

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