PRESENTATION

ON
RURAL
MARKETING
SUBMITTED BY JATISH SHARMA
BBA+MBA
36
 OBJECTIVES
OBJECTIVE OF THE STUDY
To study rural marketing and its types

To study advantages, challenges of rural marketing.

To study the two companies and marketing strategies
adopted by them for rural areas .
 INTRODUCTION TO RURAL
MARKETING

The term rural marketing used to be an umbrella term for the people who dealt with rural
people in one way or other. It got a separate meaning and importance after the economic
revaluation in India after 1990.
Rural marketing is defined as managing all the activities involved in assessing, stimulating and
converting the purchasing power of the rural consumers into effective demand for specific
products and services
 Urban to rural - Major part of rural marketing. Includes transactions of
urban marketers who sell their goods and services in rural areas pesticides,
fertilizers, FMCG products, tractors, bicycles, consumer durables, etc.

Rural to urban - Basically falls under agricultural marketing. A rural

producer seeks to sell his produce in urban market like seeds, fruits and
vegetables, forest produce, spices, milk and related products, etc.

Rural to rural - Includes the activities that take place between two villages in
close proximity to each other like agricultural tools, handicrafts, dress
materials, bullock carts, etc.
PHASE ORIGIN
EVOLUTION FUNCTION MAJOR PRODUCT SOURCE MARKET

Phase I Before mid1960(From Agricultural Agricultural produce Rural

independence to Green marketing
revolution)

Phase II Mid sixties Marketing of Agricultural inputs Urban

(Green revolution to agricultural inputs
Pre-liberalization
period)

Phase III Mid nineties(Post- Rural marketing Consumables and Urban and rural
liberalization period in durables for
20th century) consumption and
production

Phase IV 21st century Developmental All products and Urban and rural
marketing services
 Attractiveness of rural market

1. Large population
2. Rising prosperity
3. Growth in consumption
4. Life cycle changes
5. Life cycle advantages
6. Market growth rate higher than urban
7. Rural marketing is not expensive
8. Remoteness is no longer a problem
 Marketing strategies to capture rural market

Product strategies

A prime need for any firm to emerge as a strong player in the rural market is
by carefully identifying gaps in the rural market and crafting the right product
offering for consumers. Chalking out a product strategy for rural market
differs in many aspects when compared to urban counter parts. Needs and
demand of rural consumer might be contrasting to that of urban consumer and
therefore its necessary to hit the right chord when entering the rural market.
The prime objective is to design products to suit rural requirements
Promotion strategies
Elements of promotion-The various elements of promotion
include personal selling, publicity, sales promotion and
advertising

Personal selling- It is the face to face interaction between the salesman and the
prospective customers. Through a proper training, a salesman can be an effective
medium between the marketer and the prospective customer and can covert him into
a real one.

Distribution strategies
In our last post we talked about Product Strategies one can
adopt while managing business in the rural markets.
 Segment villages before expanding: With numerous
villages in India, it is impossible for an organization to hit
the rural market all at once. Ideally, coverage of villages
with up to 2000 and above population could be the break-
even point for a distribution set-up

Use of co-operative societies: There are over 3 lacks co-

operative societies operating in rural areas for different
purposes like marketing cooperatives, farmers service
cooperatives and other multi-purpose cooperatives.

Utilization of public distributory system: The PDS in the

country is fairly well organised. The revamped PDS
places more emphasis on reaching remote rural areas like
the hills and tribals. The purpose of PDS is to make
available essential commodities like food grains, sugar,
kerosene, edible oils and others to the consumers at a
reasonable price.
 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. A radical change in attitudes of marketers towards
the vibrant and burgeoning rural markets is called for, so they can successfully impress on the 230
million rural consumers spread over approximately six hundred thousand villages in rural India.

The rural market is very large in compare to the urban market as well as it is more challenging
market. The consumer wants those products which are long lasting, good, easy to use and cheaper.
The income level of rural consumers is not as high as the income level of urban consumers thats
why they want low price goods. It is one of the reasons that the sell of sachet is much larger in the
rural area in all segments.