MARKETING & MANAGEMENT FROM RURAL PERSPECTIVE

Presented by

Miss.Zoya, Student MMS, SSCMR, Bhiwandi.

Abstract
India is an agricultural country and rural areas are roots of India. Over past few years
rural market has changed significantly and has been able to make lot of options &
opportunities. Marketing in rural area is not an easy task, it requires lot of serious efforts,
thinking, planning, implementation and execution.
Now a days rural population is becoming more aware with the impact of globalisation
and subsequent impact with changing time. Demographically and psychologically Rural
consumers are quite different as compared to urban consumers. The demographics as well as
psyche of the Rural consumers is varied from that of the urban consumers.
Rural development is very necessary for the growth of the country because Indian rural
market is largest scattered market. Moreover, customers/consumers in villages have a low
standard of living because of low literacy, low per capita income, social backwardness, low
giving etc. Under the circumstances while the Rural area is on the stage of developing it is
necessary that the products, goods and services be advertised and market them properly and in
systematic manner.
In this paper researcher has mainly attempted to identify the importance and needs of
Rural development and also to comment on the route through Marketing Adverting &
Management and also spot listed the differences in functioning and working rural marketing
manager and urban marketing manager.
Key words: Rural Marketing / Management / Advertising

Introduction:-
Though it is not necessary every product needs advertisement to be sold however,
products need marketing to provide full knowledge and specifications of the products offered.
Marketing is an ongoing process of distribution of goods and services to consumers. Mostly
marketing is considered only as buying & selling of goods and services however, real
meaning of marketing is not only concerned with buying & selling. It is all about
understanding customer needs and wants and finding means and ways to provide goods or
services to customers at most convenient place.
 Marketing management is basically relationship with customers, suppliers,
Distributors etc. This relationship is necessary to create positioning of the products in the
minds of the customers. This is one of the significant aspects of buying process by the
customers. Ultimate aim of the marketing is to sell the product.
Defination:
 AMA- American Marketing Association
Marketing is the process of planning and executing the conception, Pricing,
Promotion of ideas, goods and service to create and exchanges that satisfy indivual and
organisational objectives”
 Marketing Guru Dr. Phillip Kotler:-
Defines marketing as “Marketing is a social process by which individuals and
groups obtain what they need and want through creating and exchanging products and value
with others”
 According to President the A Team – Andrew Cohen:-
“Marketing is meeting the needs and wants of consumers.”
 According President Walker short bread Inc-Steve Dawson-
Marketing is product that don’t come back and consumers that do.
 Father of Management Prefer F. Prucker Define:-
“Management is doing things right, Leadership is doing the right things
Objectives:
 To study impact of rural development on Marketing.
 To find out different ways of marketing in rural area.
 To track the various challenger in rural development.
 To study of advantage of rural development.
 To study of Modern technology rural development.

Methodology:-
Data collection-
The present research is descriptive Research based on secondary data collected from
various reports, Research Studies, Website, E book, Journals, Magazines and New papers,
Charts and diagram.
Now first let us understand what is Rural Marketing?
Definition of Rural: - Government agencies from IRDA & NCAER define Rural as a village
with a population of less than 5000 with 75% of the male population engaged in agriculture
etc.
Rural marketing involve delivering manufactured or processed inputs or services to
rural producer or consumer.
It got a separate meaning and importance after the economic revaluation in India after
1990 on account of adaptation of Globalisation and Liberalisation policies by India.
Rural marketing created awareness in people about products and services. It also
played vital role in boosting and creating awareness amongst the rural citizen for better
standards of living and upliftment.
Rural customers are now willing to try out new products. Retailers find this both easy
and challenging while launching new product.
Rural development is necessary for economic growth. We have to focus on Rural
market because 2/3rd of countries consumers live in rural areas and Urban markets getting
saturated.
Benefits of the rural marketing represented by following diagram:
Advantages of Rural areas:
 As compared to the city area, the land is available at cheaper rates in rural areas. These
lands can be developed for factory sites, office building and residential quarters. Even
though these lands are exclusively meant for agriculture government permits availing
sanction for using them non agriculture purposes.
 Due to lower standard of living the rates of labourers are relatively lower and people
will also get opportunities for job. Moreover, such adventures would support in
development of the concerned rural areas.
 There are several municipal restrictions in urban areas. These restrictions are
mandatory considering various demographic aspects in Urban Areas. However, these
types of restrictions are absent in rural areas or not implemented strictly like urban
areas.
 The Industrial relations between labourers and management are mostly seen to be
good in rural conditions and that helps in development of that area.

Indian Economy :
Indian economy can be divided mainly two sectors, the Rural sector and the Urban
Sector. Rural sector is again divided into two sector: Agriculture and Non Agriculture.
Indian Economy

Rural Sector Urban Sector

Agricultural Non- Agricultural

The Non Agricultural sub sector comprised of the allied activities which are directly or
indirectly connected with agriculture. These activities are mostly used to earn additional
revenue apart from agriculture. The non-agricultural activities include allied economic
activities like crop cultivation animal husbandries, manufacture and selling of Dairy products
etc.
The Non Agricultural sub sector consists economic activities like development of cottage
industry, Khadi, handloom handicraft, etc.
In previous years marketing as an activity in India only focused on Urban areas however,
now scenario has changed as now a days rural population has increased and also there is
significant shift in their buying power. The urge for higher standards of living and better
facilities has increased. This change is on account of scientific agriculture, improved
employment opportunities, changing life style due to the impact of electronic media and
significant change in consumption patterns. This has directly resulted in better opportunities
and it has been observed that there is increase in educational social mobility, improved means
of transportation and communication, Moreover the revolution in Communication industry
has allowed to do advertising through Medias like Televisions, Radio, Mobile, etc. These
means of communication and relatedness all got connected and exposed rural India to outside
world.
Rural markets are now large markets for most Indian as well as Multinational corporate
houses like Hindustan Lever, Colgate, Proctor and Gamble, Britannia, Pepsi, Coca-Cola, LG,
etc. These corporate houses are eyeing these rural markets as big potential as a significant
portion of rural market is untapped. Rural marketing means understanding the needs and
wants, focus on unsatisfied wants and reaching out to them to satisfy these needs and wants
by supplying required products and services. Earlier the general impression was that the rural
market have potation only for agricultural goods but because of various reason the previous
scenario has changed and now every business house is focusing on rural marketing for
development.
Challenges of Rural Marketing
 Lack of Education
 Lack of Transportation
 Monopoly of Sole Trader
 Lack of proper communication channels
 Gender discrimination
 Seasonal income
Marketers have faced above challenges and overcome it for their space for that they have to
focus certain areas:-
 Avoid being over friendly
 Promote local brands
 Rural people can handled only limited information at a time.
 Male researcher should always approach women respondent through her
husband or any other family members.
 Always offer some good scheme on products.
 Focus on rural consumers likes, dislikes as well as income source.
  After sale service
Rural consumers are more loyal and more reciprocal than urban consumers. Urban markets
always change and people who live in urban areas want every new products in interval. They
are choosier about the product because they have ample of choices and technical literacy they
are connected to whole world so they get new services and products everywhere.
Researcher has divided marketing in two areas:

Urban Market Rural Market

Easy access in everywhere Sometimes it difficult for access
Best transportation facility No good source of transportation
Income always increases Income mostly depends on agricultural
products.

Above charts explain how we can take steps for rural development
Suggestions:
 Infrastructure development : It is evident that the rural market is growing at a higher
pace. It is one of the most promising markets for marketing for selling their products
for all types of companies. Hence, it is necessary that transportation and other
infrastructure should be developed by the government.
 Opening gates for Multinational Companies : Multinational companies are
given significant openings to do their respective businesses however, more relaxations
 should be offered to these companies in order to establish their branches exclusively in
rural areas.
 Employment to Local people : The development of the rural areas should be
employment centric. Moreover, it should be made mandatory to employ the domestic
people so that the development would be of the entire region not only restricted to the
particular area.
 Corporate social responsibility (CSR) : Now a days the corporate houses are
investing huge funds for the social causes by way of obliging their social
responsibility. That can be extended more extensively and for various purposes in
Rural India.
 Training to youth : The employment in Rural area is mainly agriculture centric.
Working in industries or allied areas may be difficult for the youth of Rural areas.
Under the circumstances efforts needs to be enhanced for giving technical training to
youth. Specialised institutions could be started with the support of established colleges
in urban areas and the corporate. Government may give special concessions to the
educational institutions and corporate for this initiative.
 Aggressive and varied means of advertising : Considering the Indian Rural
sector it would be appropriate to have different set of advertising means. Aggressive
and much planned advertising needs to be done in rural areas.

Conclusion:
Indian Rural market is very promising in terms of selling products. A huge area
has remained untapped in Rural areas. Under the circumstances many steps could be taken to
ensure that the Rural area is developed. For that advertising is one of the major tools
available. Marketing in properly planned and systematic manner in Rural areas could alter the
entire scenario of Rural India. At one side it can employ several youth which would support
several families and on the other corporate houses can conduct several social activities for the
purpose of development of area. That would also ensure that various activities of sanitation
and hygiene could be implemented in order to improve the living standards. However, it
should be kept in mind that the agriculture is extremely important for the development of the
country. Also, the environment needs to be protected while developing the country. Hence,
concept of sustainable development needs to be implemented in order to ensure that
environmental obligations are met with. This would ensure that the environment would be
protected on one side and on the other development would be caused which would impact
entire country. The tool of marketing and advertising could be used very effectively not only
to promote trade but also to promote social causes. That way sustainable development could
be ensured. Advertising has already been used to promote various social causes which are
very impactful and which are giving desired results. Similarly, in view of enhanced
opportunities in rural area due to awareness and improved education, the tools could be used
very effectively in promoting trade which would result in economic betterment of not only
companies but also country as a whole.

REFERENCES & BIBLIOGRAPHY

 Peter Ducker on Sales and Marketing
 Advertising in India: Trends and Impact
 Philip Kotler on Marketing Management
 Advertising: Principles and Practice
(Wells, W./Moriarty, S./Burnett, N 7th ed Pearson)

WEBSITES:-
 irm.sagepub.com(Rural Marketing Journal)
 www.pondiuni.edu.in (Rural Marketing is Real Marketing)
 http://www.slideshare.net (Rural Development)
 www.yourarticlelibrary.com (Definition & Features of Rural Marketing)
 www.bms.co.in (Rural Marketing)
 www.indianmba.com (Opportunities & Challenges Rural Marketing in India.
 www.studymode.com (Rural Market Essay)