Rural Marketing Environment

Social environment
Economic environment
Technological environment
Innovations
Political environment
 Social environment
 The society across the country
varies between regions and sub-
regions and also between different
religious, cast and linguistic groups.
 Through there are no strict
boundaries for identifying cultural
differential common socio-cultural
behavior has been mapped as
distinct socio-cultural regions
(SCRs) which may be spread across
political / administrative
boundaries.
 While the urban environment across
SCRs reflects degrees of
homogeneity, rural is distinctly
different. Marketers use SCRs as a
yardstick for market segmentation
and targeting.
 Social environment: common attributes
 Bigger joint families, several generations live together
 Orthodox thinking
 Agriculture, Animal and dairy farms as primary occupation
 Low emphasis on literacy, especially for females
 Belongingness and adherence to community/caste principles
traditions followed
 Female population performs complete houselhold chore
 Early marriages
 Low emphasis on hygiene and nutrition
 Reluctance to adopt modern practices
 Political Environment
 Historically, the panchayat and village pradhan
/ sarpanch had been representing rural India
 Dominated largely by the upper castes, lorded
it over the political scene until the panchayts
became part of the administrative machinery
of the Government of India.
 Under the Panchayati Raj system, all
government department such as education,
health, agriculture rural development, social
justice, Livelihoods, etc. from an integrated
approach for the development fo rural areas.
 Villages with 5,000 population or a cluster of
smaller villages with 5,000 population form a
panchayat.
 The villages are segmented to form wards,
from where members are elected to the
panchyat.
 The ward members select their leader, who
becomes the sarpanch.
 The sarpanch represents the village at the
tehsil /taluka / block level.
Political environment
 Technological Environment
 The period from 1967 to 1978 heralded a technological thrust
into areas aimed at improving food grain production in the
country and hence achieving food self –sufficiency.
 Crop areas under high-yield varieties required fertilizers
pesticides, fungicides and other inputs. Farm equipment like
tractors with farm implements, diesel pump sets, etc introduced
mechanization into the farm sector for the first time.
 The increasing in farm production also introduced mechanized
processing, spurring growth of the local manufacturing sector.
 The modernization and mechanization of the farm sector boosted
farm productivity ,triggered industrial growth, created jobs and
initiated a change in the quality of life in villages.
 Technological Environment
 The Green Revolution refers to a set of
research and development of technology
transfer initiatives occurring between the 1930s
and the late 1960s
 In 1961, India was on the brink of mass famine.
 Norman Borlaug was invited to India by the
adviser to the Indian minister of agriculture C.
Subramaniam.
 Despite bureaucratic hurdles imposed by India's
grain monopolies, the Ford Foundation and Indian
government collaborated to import wheat seed
from the International Maize and Wheat
Improvement Center (CIMMYT).
 Punjab was selected by the Indian government to
be the first site to try the new crops because of its
reliable water supply and a history of agricultural
success.
 India began its own Green Revolution program of
plant breeding, irrigation development, and
financing of agrochemicals
 The Indian state of Punjab pioneered green
revolution among the other states transforming
India into a food-surplus country
 Technological environment
 The Green Revolution spread technologies that already existed,
but had not been widely implemented outside industrialized
nations.
 These technologies included
modern irrigation projects, pesticides, synthetic nitrogen
fertilizer and improved crop varieties developed through the
conventional, science-based methods available at the time.
 The most successful story in diary development (White
Revolution ) has been in Gujarat, followed by the north Indian
followed by the north Indian states of Punjab, Haryana and
western Utter Pradesh. Lately the Andhra Pradesh milk
cooperative has also been a success story.
 Economic Environment
 Over the last ten years there has been a shift in the
distribution of households from lower-income to higher-
income groups.
 The higher income class in rural has grown six times.
 The middle and upper-middle classes constitute 14.3 % in
1998-99 against 8.3 % in 1989-90.
 Rural per capita income is increasing, which is evident from
the fact that the distribution or households in different
income classes is getting thinner at the lower –income classes
and thicker at the higher income classes.