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Title: Rural Marketing: Strategies for development

A descriptive paper submitted at

4th National Conference On Management of inclusive Growth: Issues Challenges & Opportunities
Organized by Bapuji Academy of Management & Research Davanagrer Submitted by: 1. MallanaGowda Department of Commerce, Government First Grade College Shikaripura Taluk Shimoga District Karantaka State Contact number: Email id: 2. Prashantha Mcom Faculty Member Department of Commerce, Government First Grade College Shikaripura Taluk Shimoga District Karantaka State Contact number: 9449933441 Email id: prashi.smg@gmail.com 3. Manjunatha, H R Mcom, PGD in BA Faculty Member Department of Commerce, Government First Grade College Shikaripura Taluk Shimoga District Karantaka State Contact number: 9632221121 Email id: manjugowda88@yahoo.com

At all times however. He has a cash flow problem. Product. The rural life as different from urban life and the emerging urban vision of rural areas as a space for consumption have reshaped the concept and nature of rural regions. speed and entrepreneurship. namely product and service innovation. Cash flow . schemes or solutions that suit the needs of the rural consumers. he is capable of making high volume purchases. It is applicable to each and every aspect of human life irrespective of where your reside and what you do on this globe. Rural marketing strategies and innovations are broadly classified under two heads. because of this in the lean season when there is a cash flow crunch. Bringing innovation to market embodies on the three major themes. At these times. marketers need to provide financial products. the unit price is critical and so is the pack size. namely value creation. Value creation.Rural Marketing: Strategies for development ABSTRACT This articles presents the various new strategies and innovations which helps for to increase the growth of rural marketing and also analysis the consumer’s behavior of the rural areas. It must be remembered that the rural consumer does not have a budget problem. But the behaviors of the consumer are playing vital role for to implements new changes in the product and services. This is because the village folk receive funds only twice a year. Key words: Strategies. Service. The innovation is the key to survival in this fast-moving generation where nothing is static except change.

Rural marketing: Strategies for development 1. Rural markets face the critical issues of distribution. It has always been difficult to understand the rural markets. Innovations and strategies is the key to survival in this fast moving generation where nothing is static except change. the success of the product in the rural market is as predictable as rain. Find out the poor marketing strategies and change it by create new technological strategies. improvement in living condition and enlargement of rural area is essential for the development of the Indian economy. Rural marketing determines the carrying out of business activities bringing in the flow of goods from urban sectors to the rural regions of the country as well as the marketing of various products manufactured by the nonagricltural workers from rural to urban areas. price. understanding the rural consumer. Introduction A great number of studies have shown that yet today approximately 60% of Indian population lives in rural areas. place and promotion. And improve the quality of the rural market through improvement of strategies. Objectives of the study Main objective of this paper is to formulating proactive rural marketing strategies.The rural market in India is not a separate entity in itself and it is highly influenced by the sociological and behavioral factors operating in the country. The increase in the services provided to the rural people will result in the overall betterment of the society on one side vy enriching the people with updated market information and providing latest technological developmental news and organizations on other side by creating more market opportunities for them and adjustment of the market price.Marketers need to understand the social dynamics and attitude variations within each village. It includes marketing mix strategies like product. . Today. 2. communication and poor infrastructure. But by overcoming the challenges and looking into the opportunities which rural markets offers to the marketers it is said that the future is very promising for those who understand the dynamics of rural markets and exploit them to their best advantage. However.

some of the typical characteristics which will help in rural market segmentation are land holding pattern. education levels. and gather resources to execute the business concept. occupation categories. mainly written in the post liberalization period. The second theme is speed. is on highlighting potential of vast rural market and providing description of a few cases of commercial organization of rural areas. which has shifted the growth of the subject as an independent field of academic investigation. cropping pattern.The literature has uncritically borrowed theories. The strategies discussed here through not universally applicable depend upon product characteristics. The tool that entrepreneur employ to recognize and create opportunity. For companies to be successful in sustainable technology innovation. 4. Strategies for improving marketing within rural areas Considering the environment in which the rural market operates and other related problems. progressiveness of farmers.3. the targeted segment of the rural market. The third theme is entrepreneurship. An appropriate segmentation of the highly heterogeneous rural market and identification of the needs and works of different segments will form the very basis for rural market strategies. it is critical that they puntuate their incremental or value added innovations with radical or value creating innovations. Which would create its own concepts. yet at price the market will tolerate. There is an urgent need to build a distinctive perspective and a sound theoretical base for rural marketing. Bringing technology to market embodies three major themes 1. creating a real dilemma for product developers how to produce superior high technology product faster. it will ge ideal to think of strategies from the . the choice of the rural area and its economic condition. irrigation facilities. mix of enterprise. For rural market. theories and body of knowledge the issue needs immediate attention of the researcher in rural marketing. As window of opportunities for new technologies are shrinking product development timeliness are by necessity shortning. frameworks. test a business concept in market. 2. framework and concept from the mainstream marketing discipline. sociological factors. it is possible to evolve effective strategies for rural marketing. Literature Review The focus of literature. The first is value creation. proximity to cities. 3. 5.

place and promotion which are described as follows 5.1 Product Strategies  Small unit and low priced packing: Large pack sizes are out of reach for rural consumers because of their price and usage habits. but wherever this can be resorted to. pickles. green etc and feel that products with such colors are sturdy but they are more concerned with the utility of the item also.  New product Designs A close observation of rural household items indicates the importance of redesigning or modifying the products. the market is bound to expand. price. This method has been tested by other products like shampoos. In the strategy of keeping the low priced packed the objective is to keep the price low so that entire rural community can try. blue. Vicks five gram tins. The brand name awareness in the rural areas in fairly high.  Brand name The rural consumers are more concerned with the utility of the products. People in rural areas like bright flashy colors such as red. biscuits. The product meant for rural areas should be sturdy enough to stand rough handling and storage. The manufacturing and marketing men can think in terms of new product designs specially meant for rural areas keeping their lifestyles in view. etc.  Sturdy products Sturdiness of a product either in terms of weight or appearance is an important fact for rural consumers. A brand name or logo is very essential for rural consumers for it can be easily remembered. main strategies are related to product.marketing mix point of view. . This may not be possible in all types of products.

5. The distribution strategies that are specifically designed for rural areas are through co-operative societies. its shelf life and other factors have to be kept in mind. which are not only tamper proof but also reusable. Price can be kept low by small unit packings. By such technology also the price can be reduced. distribution up to feeder markets towns shanties . Whicle it is essential to formulate specific strategies for distribution in rural areas.3 Distribution Strategies Most manufacturers and marketing men do have a distribution arrangement for village with a population of at least 5000 people.2 Pricing strategies  Low cost/cheap products This is a common strategy being adopted widely by many manufacturing and marketing men. Now companies have started packing fertilizers in LDPE or HDPE sacks. In addition the packaging material used should preferably lend itself for reuse in rural areas. for example in food industry.  Refill packs/reusable packaging Such measures have a significant impact on the rural market. agricultural input dealers etc. Public distribution system. without sacrificing the quality or functional efficiency of the porduct. Milk protein is expensive which soya protein is cheaper but the nuttrition value is same. The pricing strategy for rural market will depend upon the scope for reducing the price of the product to suit the ruraL incomes and at the same time not compromising with the utility and sturdiness of the product 5. the characteristics of the product. Some innovation in packing technology is very necessary for rural markets. An ideal example in this direction can be the packing of fertilizers. multi purpose distribution centers. soya protein is being used instead of milk protein.  Application of value engineering This is a technique which can be tried to evolve cheaper products by sustituting the costly raw material with the cheaper one. .  Avoid sophisticated packing Simple package can be adopted which can bring down the cost as it is presently being done in the case of biscuits.

The increase in the services provided to the rural people will result in the overall betterment of the society on one side by enriching the people with updated market information and providing latest technological developmental news and organizations on other side by creating more market opportunities for them and adjustment of the market prices. 7.Experience has shown that the cooperatives have played a useful role in improving the marketing services in the regulated markets. 6. Reference . The other means of mass media available are hoardings/wall paintings. The income level of rural consumers is not as high as the income level of urban consumers that’s why they want low price goods. The fact. good. easy to use and cheaper. The consumer wants those products which are long lasting.4 Promotion strategies Mass media is a powerful medium of communication. radio and so on. 5. so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand villages in rural India. posters. Besides these. The rural market is very large in compare to the urban market as well as it is more challenging market. remains that these societies command only a small share of the total markets and do not present any challenge to the private trade at inmost places. other mass media like hand bills and booklets. however. special campaigns etc. print media. shanties. stickers banners of the schemes etc. It could be television. cinema. non-price competition. A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for. so while making marketing development in rural area it must and should has the better strategies for rural marketing development. Conclusion By looking at the challenges and the opportunities which rural markets offer to the marketers it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage.