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APJEM 

Arth Prabhand: A Journal of Economics and Management    Vol.1 Issue 7, October 2012, ISSN 2278‐0629  

 

THE CHANGING FACE OF RURAL MARKETING IN INDIAN ECONOMY
DR. PARTAP SINGH*; DR. ANSHUL SHARMA**
*Head & Assistant Professor, Department of Management studies, S. D. Institute of Technology and Mgt. (SDITM), Israna, Panipat, Haryana. **Assistant Professor, S.D. College of Management, Israna, Panipat, Haryana.

ABSTRACT The Indian rural market with its vast size and demand base offers a huge opportunity that companies cannot afford to ignore. We are a country with 1.12 billion people of which 70% live in rural areas which means more than 700 million people spread around 6,27,000 villages. India's rural population comprises of 12% of the world's population presenting a huge, untapped market. This paper critically examined the current status of Indian rural marketing in present economic scenario. It analyzed the problems prevail in the rural marketing. It does quest the opportunities, rural marketing strategies, problems along with challenges exists in rural marketing. KEYWORDS: Rural markets, Disposable Income & Rural Consumers. ______________________________________________________________________________ INTRODUCTION             Pinnacle Research Journals                   47       http://www.pinnaclejournals.com                                                                                        India is an agro-based economy and the growth of most of the other sectors of economy is driven by rural demand. Urban market is reaching towards the saturation point, thus bringing in and urgent need to focus on rural development. Moreover, more than 70% of India's population lives in villages and constitutions a big market for industry because of increasing disposal incomes and awareness level. In comparison to just 5,161 towns in India there are 6, 38,365 villages in India. This in itself is an indicator where the real India resides. Companies are realizing slowly but surely that the key to gain true market leadership lies in tapping the rural potential.

 

Rural marketing constitutes the nerve centre of rural development activities. commodity markets or Labor economics. rural markets have acquired significance in countries like China and India. ISSN 2278‐0629     Typical shop in rural India stocked with sachets.APJEM  Arth Prabhand: A Journal of Economics and Management    Vol. They do not prefer changes. non-urbanized. which are distinct from the other types of markets like stock market. low per capita income. rural marketing has taken shape. a rural market will represent a community in a rural area with a population of 2500 to 30000 In recent years. with population of 55 million. etc Rural Markets are defined as those segments of overall market of any economy. Thus production and marketing are the two facets of a coin. low savings. etc. In fact marketing is a dynamic state of affairs and is part and parcel of the whole economy. around 2000 counties are rural. •             Pinnacle Research Journals                   48       http://www. in the USA. Hence rural prosperity is tied with agricultural prosperity. Very little attention has been paid in the planning era towards the development of rural marketing. 20.   . out of about 3000 countries. rural industries products and services of many kinds. processors. In this context. • TRADITIONAL OUTLOOK The rural consumer values old customs and tradition. namely. for example. In no sense. regulated markets and state agencies. Typically. as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. October 2012.000 villages spread throughout the country. Rural Markets constitute an important segment of overall economy. On account of the green revolution in India.com                                                                                        MAJOR INCOME FROM AGRICULTURE Nearly 60 % of the rural income is from agriculture.pinnaclejournals. Broadly rural marketing incorporates the marketing of agricultural products. that is. social backwardness.1 Issue 7. a social cluster or village economy as at whole can be developed without effective and efficient rural marketing. the rural areas are consuming a large quantity of industrial and urban manufactured products. • LOW STANDARD OF LIVING The consumer in the village area do have a low standard of living because of low literacy. The trade channels for different types of commodities available in rural areas private. cooperatives. Some Vital Features of Indian Rural Markets: • LARGE AND SCATTERED MARKET The rural market of India is large and scattered in the sense that it consists of over 63 crore consumers from 6. a special marketing strategy.

000 . 15. communication system. About 40 per cent of rural households are landless.APJEM  Arth Prabhand: A Journal of Economics and Management    Vol. Further.000 villages. Large farmers. ISSN 2278‐0629     • DIVERSE SOCIO-ECONOMIC BACKWARDNESS Rural consumers have diverse socio-economic backwardness. shopkeepers.pinnaclejournals.5 million for urban sector. the split was about 40:60 — 41 per cent being farm income! MYTH 2: DISPOSABLE INCOME IS LOW REALITY: Number of middle class HHs (annual income Rs. 45. almost half of the rural Indian economy is non-agriculture-based and a third of the households — around 50 million — are engaged in non-agricultural activities — people working in manufacturing. The Indian rural market with its vast size and demand base offers a huge opportunity that companies cannot afford to ignore. and financial facilities are inadequate in rural areas. Rural incomes CAGR was 10.95% compared to 10. owning more than 10 acres of land. October 2012.com                                                                                          . or as traders. providing services such as electricity generation.4 million as compared to the figure of 29. Hence physical distribution becomes costly due to inadequate Infrastructure facilities.27. mining and quarrying. agriculture’s contribution to India’s GDP has steadily come down to just 17. untapped market. The rural bazaar is booming beyond everyone's expectation. SOME MEANINGFUL MYTH IN RURAL MARKETING MYTH 1: RURAL INDIA IS ALL ABOUT AGRICULTURE REALITY: Rural India is way beyond agriculture First. form a tiny 4 per cent of the rural population.1 Issue 7. transportation and haulage. construction.000) for rural sector is 27.74% in urban between 1970-71 and 1993-94. In 2007. warehouses. India's rural population comprises of 12% of the world's population presenting a huge. This is different in different parts of the country. We are a country with 1.12 billion people of which 70% live in rural areas which means more than 700 million people spread around 6. MYTH 3: THAT RURAL MARKETS ARE HIGHLY PRICE-INELASTIC AND ONLY SUITED FOR 'VALUE-FOR MONEY' PRODUCTS AS AGAINST PREMIUM QUALITY PRODUCTS THE REALITY: Despite lower incidence of premium product purchases.5 per cent. the rural consumers across all income segments exhibit marked propensity to spend on premium high quality             Pinnacle Research Journals                   49       http://www. by NCAER estimates.2. Half of the remaining 60 per cent are marginal farmers (owning less than 2 hectares of land). • INFRASTRUCTURE FACILITIES The Infrastructure Facilities like roads.

* TRIVENI KUSHALI Bazaar.. women entrepreneurs in villages are identified to act as local distribution and sales point for HUL products. The rural market.pinnaclejournals. ISSN 2278‐0629     products which are backed by strong brand values. pesticides. 6 per cent for urban). is presently operational in 6 states and there are 5200 kiosks. is also used to sell cement and FMCG products. 527. detest. 9 per cent for urban) and clothing. seeds. saw 25 per cent annual growth while the urban consumer durables market grew at 7 to 10 per cent. which accounts for nearly 70 per cent of the total number of households. While in 1998-99 over 83 per cent of rural households fell in the lower and lower-middle classes. MAJOR INITIATIVES OF SOME MARKET PLAYERS             Pinnacle Research Journals                   50       http://www. INVESTMENTS GIVE LATE RESULTS REALITY: It is much faster than we think. the number is set to fall at a rapid rate over the next 20 years. etc..1 Issue 7.com                                                                                        * Hariyali Kisaan Bazaar . including bedding and footwear (7 per cent for rural. which market does not need a certain gestation period for growth and development? A FICCI survey indicated that consumer durables would see 12 per cent growth in 2008. the comparative fall for urban India is from 53 per cent to 27 per cent (NCAER data). appreciate and expect. It is time we did better than just ‘assume’ what these people desire. First. The rural market is growing faster than the urban market. MYTH5: GROWTH IN RURAL IS SLOW.Through the state governments and NGOs involved in microfinance. Seventy per cent of India’s population. there was little difference between rural and urban households in the share of the budget allocated to fuel and light (10 per cent for rural. * ITC 's internet-enabled rural interface to help sale of agri outputs.P.. WHAT MAKES RURAL MARKETS ATTRACTIVE? Rural market has following attributes and the following facts substantiate this: -   .. MYTH 4: RURAL CONSUMERS LACK PURCHASING POWER REALITY According to NSSO report no. e-Choupal.APJEM  Arth Prabhand: A Journal of Economics and Management    Vol. October 2012. animal feed. farming equipment. in the sugarcane belt of U. to facilitate sale of agri-inputs such as fertilizers.. 56 per cent of its income. a rural agri-inputs store run by Thriven Engineering Industries Ltd. And if experts are to be believed. the number has fallen to 70 per cent in 2006-07. * HUL's Project SHAKTHI . where they correspond to their own aspirations and quality needs. was set up by DCM Shriram Consolidated Ltd. The problem really lies in market not being able to offer a premium product in the specific context of rural demand. 64 per cent of its expenditure and 33 per cent of its savings come from rural India.

000 Crore C Rs. which gr rew 25 per cent c in 2008. While W durable es market sh hrunk in urba an India.1 Issue 7. October 2012 2.000 Crore C Rs.23. The rural con nsumer mark ket. ac ccording to a white pape er prepared by b Confeder ration n Industries (CII)-Techn nopak. rural incomes are on th he rise driven n largely due e to continuo ous growth in i agricultur re for four co onsecutive years. Accordin ng to a stu udy by the Chennai-ba ased Francis s Kanoi Marketing Pla anning Serv vices. according to a recent study by th he Rural Ma arketing Association of India (RMAI). Rural Indi ia. y This is in i addition to t the farme er loan waiv ver of US$ 13.com                                                                                          ..86 billio on and the ambitious a B Bharat Nirman Programme P with an outl lay of US$ 34.pinnaclejournals. 1. is expected d to reach US$ U 425 billi ion in 2010-11 with 720-79 90 million cu ustomers. 65.000 0 Crore             Pinnacle Research Journals                   51       http://www. pharma. is not just j witnessi ing an increa ase in its inc come but also in i consumpt tion and prod duction. The study found f that th he rural and small town economy wh hich account ts for 60 per r cent of India's s income has s remained in nsulated from m the econo omic slowdow wn. The e rural econo omy has not been impac cted by the global g economic c slowdown n. 8. Tractors) T 2/4 Wh heelers Total Rs. au uto and consu umer durabl les industries s is estimated to match sales s generat ted in urban are eas soon.000 cr rore Rs. home to about a two-third ds of the cou untry’s 1 bil llion populat tion. rur ral market is s seeing a 15 per cent grow wth rate. Moreov ver. ISSN 2278‐062 29     *CURRE ENT SCEN NARIO KHA AITAN FANS' AD ON N A HORSE E The India an growth st tory is now spreading s its self to India's hinterlands s. rural dem mand for fa ast moving consumer goods g (FMCG). That will be doub ble the 2004 4-05 market size of US$ $ 220 of Indian billion.g. 45.84 billion n for improv ving rural in nfrastructure.APJEM  Arth Prabha and: A Journal of o  Economics and Management    Vol. estimated d annual size e of market is i FMCG G Consum mer Durable es Agri In nputs (e. 5000 Cr rore Rs. According A to t the Tech hnopak study y.

APJEM  Arth Prabhand: A Journal of Economics and Management    Vol. India's premier economic research entity.700] per annum is projected to go up to 21 million by 2009-10 from four million in 2001-02. ISSN 2278‐0629     • Urban market is flooded with low demand. From 55 to 58 per cent of the average urban income in 199495.365 villages of India spread over 32 lakh square kilometer. ¾ Of two million BSNL mobile connections. It will have a 22 to 23 per cent rural component. fertilizers. LIC sold 55% of its policies in rural India. However. 50% of transactions from these towns are on Rediff online shopping site. there is a growing market for consumer goods now.pinnaclejournals. 50% are in small towns / villages. ¾ 41 million Kisan Credit Cards have been issued (against 22 million credit-plus-debit cards in urban). 977 billion resulting in tremendous liquidity ¾ Of the 20 million Rediffmail sign-ups. understanding their wants. and ultimately satisfying consumers. It has been estimated the rural market is growing at the rate of five times its urban counterpart. marketing executives are fanning out and discovering the strengths of the large rural markets as they try to enlarge their markets. the rural tilt is beginning to show. 60% are from small towns. the average rural income has gone up to 63 to 64 per cent by 2001-02 and touched almost 66 per cent in 2004-05. The general impression is that only agricultural inputs like seeds. pesticides. recently corned that rise in rural incomes is keeping pace with urban incomes.38. October 2012. A survey by the National Council for Applied Economic Research(NCAER). leading to more sales. With urban markets getting saturated for several categories of consumer goods and with rising rural incomes. cattle feed and agricultural machinery have a potential for growth in the rural market. The rural middle class is growing at 12 per cent against the 13 per cent growth of its urban counterpart. Even better. ¾ In 2001-02.             Pinnacle Research Journals                   52       http://www.1 Issue 7. with cumulative credit of Rs. Higher rural incomes have meant larger markets.com                                                                                        * HIGHER PURCHASING CAPACITY: Purchasing power of rural people is on rise. supply of goods and services. Rural marketing broadly involves reaching customers. * MARKET GROWTH: Market is growing at a rate of 3-4% per annum. ¾ Of the 6. Rural market witnesses a high demand It's the rural segment of market that contributes more profit than its urban counterpart. 41% of India's middle class resides in rural areas.   . the upper income class those with household incomes of over Rs one million [$22.22 lakh have a Village Public Telephone (VPT). 5. Already.0 lakh villages. • • * LARGE POPULATION: Approximately 75% of India's population resides in around 6.

in next 10 years another 30% would be connected. ¾ The rural market accounts for half the total market for TV sets.7 million HHs in urban. bicycles. According to a McKinsey survey conducted recently. ¾ Rural literacy level improved from 36% to 59%. ¾ Investment in formal savings instruments is 6. ¾ Rural telephone density has gone up by 300% in the last 10 years. Infrastructure is improving rapidly             Pinnacle Research Journals                   53       http://www. ¾ Percentage of BPL families declined from 46% to 27%. What is more. the rural market for FMCG products is growing mu. ¾ More than 90% villages are electrified. ISSN 2278‐0629     ¾ 42 million rural households (HHs) are availing banking services in comparison to 27 million urban HHs. the rural population is nearly three times the urban. washing soap. tea. every 1000+ pop is connected by STD. salt and toothpowder. October 2012. pressure cookers. with a population of 700 million.1 Issue 7. rural India.com                                                                                        ¾ In 50 years only. the rural market has grown at an impressive rate of 25 per cent compared to the 7–10 per cent growth rate of the urban consumer retail market. fans. would become bigger than the total consumer market in countries such as South Korea or Canada and it would grow almost four times from its existing size in the next few years.pinnaclejournals. OPPORTUNITY The above figures are a clear indication that the rural markets offer the great potential to help the India Inc which has reached the plateau of their business curve in urban India to bank upon the volume-driven growth. In 2008. 40% villages have been connected by road.   . The Indian rural market with its vast size and demand base offers a huge opportunity that MNCs cannot afford to ignore. ¾ Social indicators have improved a lot between 1981 and 2001 - ¾ Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses halved (41% to 23%).APJEM  Arth Prabhand: A Journal of Economics and Management    Vol. blades. With 128 million households.6 million HHs in rural and 6. though only 44% rural homes have electric connections.

fatalistic and believe in old customs. traditions.5 Total (% of Rural HH) 12.000 42.000 7. Vast majorities of the rural people are tradition bound.38.APJEM  Arth Prabhand: A Journal of Economics and Management    Vol.2 Rural 35.0 Refrigerator FMCGs Shampoo Toothpaste Urban 66.000 3. October 2012.6 Marketers can make effective use of the large available infrastructure Post Offices Haats (periodic markets) Melas (exhibitions) Mandis (agri markets)             Pinnacle Research Journals                   54       http://www. taboos and practices. habits.2 55.com                                                                                        Public Distribution Shops Bank Branches 1.1 12.000 32.2 44.3 82.4 33. Thus underdeveloped people and consequently underdeveloped market by and large characterize the rural markets.80.000 25.pinnaclejournals.9 Total (% of Rural HH) 44.5 Rural 4.000 PROBLEMS IN THE BOOMING RURAL MARKETING The major problems faced are: • UNDERDEVELOPED PEOPLE AND UNDERDEVELOPED MARKETS The number of people below poverty line has not decreased in any appreciable manner.8 3. ISSN 2278‐0629     ¾ Durables CTV Low penetration rates in rural areas.1 Issue 7.   . so there are many marketing opportunities Urban 30.

• DISPERSED MARKET Rural areas are scattered and it is next to impossible to ensure the availability of a brand all over the country. Advertising in such a highly heterogeneous market.7 million. • DIFFERENT WAY OF THINKING There is a vast difference in the lifestyles of the people.APJEM  Arth Prabhand: A Journal of Economics and Management    Vol. This again leads to problem of communication for promotion purposes. and. more desirable to villagers. Physical communication of these villages is highly expensive. the dialects are estimated to be around 850. which are cheaper. • MANY LANGUAGES AND DIALECTS The number of languages and dialects vary widely from state to state. is very expensive. The rural customer usually has 2 or 3 brands to choose from whereas the urban one has multiple choices.   . Even today most villages in the eastern parts of the country are inaccessible during the monsoon. region to region and probably from district to district. Seven Indian states account for 76% of the country's rural retail outlets. The kind of choices of brands that an urban customer enjoys is different from the choices available to the rural customer. Print medium becomes ineffective and to an extent irrelevant in rural areas since its reach is poor and so is the level of literacy. which is widely spread. the total number of which is placed at around 3.1 Issue 7. ISSN 2278‐0629     • LACK OF PROPER PHYSICAL COMMUNICATION FACILITIES Nearly fifty percent of the villages in the country do not have all weather roads. therefore. Even though the number of recognized languages are only 16.             Pinnacle Research Journals                   55       http://www. The difference is also in the way of thinking.com                                                                                        • PREVALENCE OF SPURIOUS BRANDS AND SEASONAL DEMAND For any branded product there are a multitude of 'local variants'. • LOW LEVELS OF LITERACY The literacy rate is low in rural areas as compared to urban areas. October 2012. The messages have to be delivered in the local languages and dialects. • LOW PER CAPITA INCOME Even though about 33-35% of gross domestic product is generated in the rural areas it is shared by 74% of the population. Hence the per capita incomes are low compared to the urban areas.pinnaclejournals. The rural customer has a fairly simple thinking as compared to the urban counterpart.

Affordability.1 Issue 7. TRADITIONAL LIFE Life in rural areas is still governed by customs and traditions and people do not easily adapt new practices. Kacha roads become unserviceable during the monsoon and interior villages get isolated. So.India average of 52%. COMMUNICATION PROBLEMS Facilities such as telephone. * Problems related to distribution and channel management The journey of markets to the rural markets has indeed been one of surmounting one hurdle after another. challenges etc.APJEM  Arth Prabhand: A Journal of Economics and Management    Vol. Their buying decision is low and delayed. and Acceptance & Awareness adopting themselves to the rural atmosphere marketers. therefore. fax and telegram are rather poor in rural areas. * Lack of infrastructure facilities. in the context of India 'RURAL MARKETS ARE FUTURE BATTLEGROUNDS' LOW LITERACY There are not enough opportunities for education in rural areas.pinnaclejournals.   . October 2012.com                                                                                        Many rural areas are not connected by rail transport.             Pinnacle Research Journals                   56       http://www. in the context of growth aspects of the Rural markets and their adoption and application by major MNCs and Indian companies. ISSN 2278‐0629     CHALLENGES FACED BY MARKETERS IN RURAL MARKET * Traditional outlook of rural consumers due to which they are resistant to change.their future scope. SEASONAL DEMAND Agriculture to a large extent depends upon monsoon and. I want to take this Project as my Research Project so that I could go in to the in-depth study of the rural markets. The literacy level is as low (36%) when compared to all. even rich and educated class of farmers does not wear jeans or branded shoes. the demand or buying capacity is not stable or regular. Many rural areas are not connected by rail transport. For example. Kacha roads become unserviceable during the monsoon and interior villages get isolated. these include the 4 As .Availability.

This method has been tested by other products like shampoos. the market has to undertake specific sales promotion activities in rural areas like participating in melas or fairs. green etc. education and politics and each group exerts influence on the behavior of people in villages.             Pinnacle Research Journals                   57       http://www. and feel that products with such colours are sturdy but they are more concerned with the utility of the item also. do they buy the product.. STRATEGIES FOR RURAL MARKET A. occupation. Radio reaches large population in rural areas at a relatively low cost. etc. caste. pickles.com                                                                                        In the strategy of keeping the low priced packed the objective is to keep the price low so that the entire rural community can try. the market is bound to expand. 2. People in rural areas like bright flashy colours such as red. There are different groups based on religion. CULTURAL FACTORS Culture is a system of shared values. beliefs and perceptions that influence the behavior of consumers. therefore. However. STURDY PRODUCTS Sturdiness of a product either in terms of weight or appearance is an important fact for rural consumers. MEDIA FOR PROMOTIONS Television has made a great impact and large audience has been exposed to this medium.1 Issue 7. The product meant for rural areas should be sturdy enough to stand rough handling and storage. 3. biscuits. reach of formal media is low in rural households. They like to give a trial and only after being personally satisfied.APJEM  Arth Prabhand: A Journal of Economics and Management    Vol. vicks five gram tins. The manufacturing and marketing men can think in terms of new product designs specially meant for rural areas keeping their lifestyles in view. income. October 2012. age. ISSN 2278‐0629     BUYING DECISIONS Rural consumers are cautious in buying and decisions are slow and delayed. This may not be possible in all types of products.pinnaclejournals.   . but wherever this can be resorted to. blue. PRODUCT STRATEGIES FOR RURAL MARKET AND RURAL CONSUMERS 1. SMALL UNIT AND LOW PRICED PACKING Larger pack sizes are out of reach for rural consumers because of their price and usage habits. NEW PRODUCT DESIGNS A close observation of rural household items indicates the importance of redesigning or modifying the products.

This technique yields itself for application in many engineering or product designed areas so that the price can be kept at an affordable level. 'soya protein is being used instead of milk protein. Some of these strategies are mentioned here. While it is -essential to formulate specific strategies for   . which are not only tamper proof but also reusable.1 Issue 7.             Pinnacle Research Journals                   58       http://www. 2. for example in food industry. B. Milk protein is expensive while soya protein is cheaper but the nutrition value is same. Some innovation in packing technology is very necessary for rural markets. 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. 3. 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. REFILL PACKS/REUSABLE PACKAGING Such measures have a significant impact on the rural market. DISTRIBUTION STRATEGIES Most manufacturers and marketing men do have a distribution arrangement for village with a population of at least 5000 people. A brand name and/or logo is very essential for rural consumers for it can be easily remembered.pinnaclejournals. BRAND NAME The rural consumers are more concerned with the utility of the products.com                                                                                        4. October 2012. APPLICATION OF VALUE ENGINEERING This is a technique which can be tried to evolve cheaper products by substituting the costly raw material with the cheaper one. PRICING STRATEGIES Pricing strategies are very much linked to product strategies. The brand name awareness in the rural areas is fairly high.APJEM  Arth Prabhand: A Journal of Economics and Management    Vol. 1. By such technology also the price can be reduced. Now companies have started packing fertilizers in LDPE or HDPE sacks. Price can be kept low by small unit packings. without sacrificing the quality or functional efficiency of the product. These areas have to be explored by manufacturing and marketing men in the context of rural markets. ISSN 2278‐0629     4. LOW COST/CHEAP PRODUCTS This is a common strategy being adopted widely by many manufacturing and marketing men. In addition the packaging material used should preferably lend itself for reuse in rural areas. An ideal example in this direction can be the packing of fertilizers. C.

Therefore. It could be television. however. distribution up to feeder markets/mandi towns shanties/hat/jathras/melas. the characteristics of the product. to a wider national market through limited formal channels. D. While rural products are forced to increasingly become part of global supply chains. Cooperative institutions would do better if the state level marketing federations enter into multilevel activities to improve the turnover of their business. radio and so on. its shelf life and other factors have to be kept in mind.             Pinnacle Research Journals                   59       http://www. October 2012. The non-govemmental organizations can anchor a key role in conscientizing the rural people to form into cooperatives highlighting the possible benefits without being exploited. public distribution system. The other means of mass media available are hoardings/wall paintings. shanties/hats/melas. special campaigns etc. ISSN 2278‐0629     distribution in rural areas. or at best. banners of the schemes. posters. a process is essential to explore the market linkages and capacity building for SHGs through a bottom up   . agricultural input dealers etc. 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. the government should circulate pamphlets either to panchayati raj office or to schools where it can be documented for the reference.1 Issue 7. While rural products has been perceived traditionally as catering to the local market.pinnaclejournals. therefore.com                                                                                        While making efforts to improve the marketing system within rural areas and the marketing of rural produce to other areas. Besides these. the reality of globalization since the 1990s introduced a new dimension to the market for such products. not only according to the changing tastes of the national market. related to agricultural and other rural industries products. where markets are characterized by extreme competition and volatility. The distribution strategies that are specifically designed for rural areas are: through co-operative societies. we should foresee the forces of globalization affecting the market forces. other mass media like hand bills and booklets.APJEM  Arth Prabhand: A Journal of Economics and Management    Vol. multi-purpose distribution centres. The Gujarat Cotton Cooperative Marketing Societies set a good example of vertically integrated markets. PROMOTION STRATEGIES Mass media is a powerful medium of communication. The cooperative marketing institutions have to introduce scale economies in their marketing operation and provide efficient and comparable services to the customers in competition with the private trade. For disseminating the information. cinema. The issue of rural product generation through industrialization. print media. these products need to adapt themselves. stickers. needs to be viewed from a new angle and on far more scientific lines. The fact. CONCLUSION These issues gain added complexity under globalization. The core of a scientific approach is to understand the market opportunities for rural products along with the country's development priorities and to chalk out a strategy where rural industries have an important role to play. non-price competition. but also according to changes in tastes in the international market. Experience has shown that the cooperatives have played a useful role in improving the marketing services in the regulated markets.

2004 The Hindu .a developmental approach Ch.pinnaclejournals. The real challenge of building a sustainable market linkage starts here. ‘Generic Revolution’ The Financial Express. ‘Project Symphony:ITC team inspired by Beethoven’ business line . Prasanth Reddy. Badi.com • • • •             Pinnacle Research Journals                   60       http://www. Aarti Shetty & BV Mahalaxmi.in/stats. Harvard Business School Press. A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for.1 Issue 7.nic.htm. Rao and Ramesh Tagat: Rural Marketing .Rural Tourism Rural Marketing. Laxmikant Khanvilkar and Prashant Kothari.deccanherald. Philip Evans. “Blown to bits”. 11. Himalaya Publishing. published by IIMA K.com                                                                                        • • • • •   . October 2012. This process should ensure the participation of rural people as consumers and producers in the globalization mechanism. which rural markets offer to the marketers. dated 26/12/2001.Rural Marketing Management A Developmental approach from Vikalpa(July-September 1985). ISSN 2278‐0629     approach and continuous dialogue with stakeholders of rural enterprise. 1999. Thus. K. dated 8/4/2002 ‘Corporates Enter to Cash in on the Potential’ The Financial Express.com www. Ravindranath V. Badi and Naranyansa V. looking at the challenges and the opportunities. Thomas S Wurster. with better livelihoods and global access to markets. http://agricoop. dated 28/3/2002. internet edition.APJEM  Arth Prabhand: A Journal of Economics and Management    Vol. so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand villages in rural India REFERENCES • • Sukhpal Singh.indiantelevision.Business Line www. L. 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. a journal in English.