Rural marketing- acc.

To National commission on agriculture, rural marketing is a process which starts with a decision to produce a saleable farm commodity and it involves all the aspects of market structures and system, both technical & institutional based on technical & economical consideration & includes pre and post harvest operations, assembling, grading, storage, transportation & distribution . The model of RM represents the combination of transactional & developmental approaches: 1)RM process is both a catalyst as well as an outcome of the general rural development process outcome. Initiation and mgt of social & economic change in the rural sector is the core of the RM process. 2) Innovation methods for social change for successful transformation of traditional society are vital. Such a change narrows the rural urban divide.3)the growth of the RM can be a planned evolutionary process based on strategies instruments of change rather than for short term opportunity for commercial gain.4)the exposure of rural to a variety of marketing transactions during the change process puts them in the role of beneficiaries than of just buyers of modern inputs & infrastructural services.5)communication should serve to resolve social conflicts, encourage co operation & strengthen competitive spirits during transactions. Scope of RM- 1)urban to rural a)consumable b) Consumables c)consumer durables d) capital goods 2) rural to urban i) agricultural and allied products. ii) rural artisans iii) food iv) industrial RM- 3) rural to rural- rural artisans ,services Importance of RM- 1)urban to rural 2)rural to urban. A) Compulsions. B) Opportunities. Rural vs urban marketingA)environmental differencesUrban- 1)the urban marketing- the urban env is characterised by large, contiguous settlement units of town or urban agglomerations, mostly concentrated. 2) highly infrastructural level such as road, electricity etc. 3)high density of population per sq.km of space. 4) good physical connectivity, high mobility Rural- 1)small, contiguous settlement unit of villages widely dispersed. 2) low infrastructural levels. 3)low density of population 4) poor physical connectivity with other villages & towns, low mobility. B)Social relationsUrban (in an urban society social dynamics represent a more liberated system 1) large no of interactions with persons. 2) individuals are less known & identify b/w members in the social system. 3) social norms are less visible. 4) cast influence( indirect) and less strength generally subjected to economic influences. Rural (the outlook of rural society is a combination of both traditional & modern, isms ) 1)less no of interpersonal interactions 2)individual better known as identified 3) social norms influencing individuals are more visible. 4) caste influence direct & strong.

D) dependence on natureUrban (in urban areas dependence on natural resources is less) 1) access is a function of purchasing power 2) most resources to be purchased 3) low dependence on employment and incomes on natural factors. 3) high dependence on employment and income on natural factors. 3)lifestyle changes. cigarettes etc.rural consumers considered to prefer local. 2)high adver tising exposure 3) high exposure to marketing research & multiple sources of information. 4) lifestyle adv.a) lack of proper infrastructure b) marketers imagination & initiative (-) marketers have so far failed to analyse the rural side and exploiting rural India s traditional selling system that is haats and melas. However.C)Exposure to marketing stimuliUrban ( urban markts are in a better position.382. Thanks to the development under the 5 year plans & other special prgms such as land reforms etc. There is an up gradation from local or unbranded products to national brands & from low priced brands to premium brands.india is now seeking a dramatic shift towards prosperity in rural households. Rural. 5)Rural marketing rates higher than urban the growth rates of FMCG market & durables market is higher in rural areas for many products. 2) growth in consumption. 3) low exposure ro marketing researchers and ltd. 2) differential access to resources based on caste politics & money power.(the rural life is dependent on -) 1) abundance of natural resources and high dependence for large no of household needs. Rural (a different and apathetic situation we find in rural markets) 1) low product exposure & low exposure to branded products 2) low adv exposure. 7)remoteness is no longer a problem. low branded awareness.The rural market is a profitable proposition for the giant multinationals for the following reasons: 1) rising rural prosperity.as a consequence of spread in rural prosperity in 1990s there was growth in purchasing power in household expenditures is rs.conventional wisdom dictates that since rural consumers are mainly scattered. The closest income class will shrink from more than 60% in 1994-95 to 20% in 2006-07. Sources of information & learning. They have better exposure to marketing stimuli) 1) high prdct exposure & high exposure to branded prdcts.low comprehensionof adv. tea. this is true only in certain product categories. . brand consciousness is on an upswing exposing the rural population to the rich lifestyles of the urban households.the rural distribution is not much developed for the reason. Rural market in Indian context.many products have achieved near maturity in the urban market while in the up country. This has created awareness and a attraction for the premium products like Surf . The rural market share will be more than 50% for many products like cooking medium. unbranded & low priced products. still in the growth phase. reaching them is costly. The reasons for the variations in the PLC stages maybe be attributed to the different rates of diffusion adoption process in the urban & rural marketing. However new research indicates that selling in rural area is not expensive. 6) rural marketing is not expensive. With increasing literacy levels & media explosion. The higher the income classes will more than double. Ariel etc.

Diff rural env are : 1) geographical env.a)culture b) sub-culture c)social milieu 2) other consumer characterestics. Each product is a combination of tangible & intangible factors. Product planning for rural marketing is: 1) identity strategy a) commodity strat b) branding stat 2) customer value strategies a) mass product stat b) premium product. . #include model Buying pattern of the rural consumer: # model There are 4 distinct types of buying behaviour based on 2 parameters. Behaviour of rural consumers: 1) socio.Understanding rural marketing env and its impact on rural marketing operations Environment means a set of conditions & given variables within which man or humans being performs.the geo env is the vast rural india influences directly or indirectly on RM. 3)innovation strategy.a) nature of population b)ethnic distribution c)religious diversity d) distribution of population 4) socio cultural env. e) village mandis f) relationship marketing 7) infrastructural env. Factors relating to it are (i) climate (ii) Topography (iii)River system (iv) soil condition (v) land distribution (vi) irrigation 2)economic env.a) rural urban common b) special for rural 4) quality strategy.economic environment 2) influence of cultural env. a) physical b) institutional support. d) land use pattern e) economic development plans & programmes. 5) Occupation 6) exposure to urban lifestyle 7) exposure to media.a) improvement strat 5) packaging strategy a) small packaging b) combo packaging c) see through packaging 6) brand strategy a) brand extension b) multi brand extension c) co branding strategy d) brand image strategy. F) rural credit and financial system (i) production credit (ii) consumption credit. 3) demographic env. 6) Strong attachment to tradition 7) guided by emotions rather than reasons 8) bound by supervision. g) Occupation patterns. the total package of expectations & benefits.d) village haats.1) degree of buyer involvement 2) degree of difference among brands: A) complex buying behaviour B) dissonance buying behaviour C) Habitual buying behaviour D) Variety seeking Buying behaviour Rural Marketing Strategies: 1)rural market segmentation 2) Product planning strategies: Theodor Levitt pointed out a product is not a mere inanimate physical thing. To a buyer the product is a complex group of value satisfaction. Characteristics of rural consumer: 1) cultural char. c) social interactions d) special position of elders e) social entertainment & festival pattern 5) administrative environment a)nature and influences of panchayats b)agricultural extension officer (AEO) 6) rural marketing behavioural environment. a) customs and traditions b) family structure & familial relations.a) age & life cycle stage b) occupation c) economic situation d) lifestyle e) personality and self concept f) physiological factors Attitudes of the rural consumer: 1) locality preference 2) Fatalism (believing in GOD) 3) little ambition 4) overdependence 5) scepticism of anything essential. The diff. 3) Influence of geographical location 4) education/ literacy level.a) purchase decision b) monetary and non monetary exchange c) dealers in retail outlets.a) income generation & distribution b)expenditure patterns and habbits c) land ownership & distribution.

1) uneven distribution of population 2) blurred market segmentation 3)bad roads 4)poor electrification 5)poor storage 6) under developed retail facilities 7) support service is underdeveloped. marketers can follow a particular pricing strategy as a blend of different strategies1) optional production pricing 2)captive production pricing 3) low point price 4)production bundle pricing 5) penetration pricing 6)value pricing 7) special event pricing Promotional strategy for rural market: factors for selecting media in the rural market 1)communication 2)cluster habit 3)leisurely life 4) impulsive and emotional habits. Distribution channels used in RM: 1) traditional channel: a) wholesaler b)retailer 2) new channelsa)concentration on specific large villages b) rural co operative society c)public distribution system d) petrol pumps e)agricultural input dealers f) Haats.depending on the co s business objectives and the influences of internal and external factors. The factors in RM raise special difficulties in rural distribution. jatras etc. . 5) hard instincts 6)rural pride 7)seasonality. g) mobile vans h) joint distribution.Pricing strategy.logistics is the sum total of all activities related to the most cost effective movement of goods & supplies & the handling of all practical details of service and delivery management. Logistics: problems of the distribution channels:. mandis.