UNIT 1

Rural Marketing Environment

INTRODUCTION
 The emergence of an active cash economy is
bound to create is bound to create a strong rural
demand and promote rural consumption.
 The traditional growth and dominance of urban
industrial centres is undergoing rapid changes.
 A more equitable distribution in rural areas would
also help in slowing down the rapidly increasing
influx of people from rural to urban areas.
RURAL POPULATION

There are two sections of rural population:

 A large portion has a low income and low
consumption levels
 The rest are rural rich
THE RURAL POPULATION FORMS A MAJOR PORTION OF THE
INDIAN POPULATION AS SEEN BELOW:
 About half of the rural population own or lease
land to cultivate it for their livelihood.
 Another 27% are dependent on these cultivators
for their jobs as agricultural laborers. Thus, a total
of 77% of rural population depend on land only
for their living and land is their source of living.
 The implication of this is that the income
generation in rural areas entirely depends on how
the land is used, what crops are cultivated, how
much is marketed, how much is consumed and the
marketing arrangements for the production.
 The above factors point that the potential for
marketing of goods and services depends heavily on
agriculture, since it is the main occupation in rural
areas.
 The market for agricultural inputs –
fertilizers,
pesticides,
insecticides,
tractors,
irrigation equipment and
seeds
RURAL MARKETING MODEL
 Companies work marketing models before
entering any market. They approach different
models to reach the target market. They work in
a organized way which gives the step by step
process to implement.
 Depending upon the market the model may get
slight change but the steps may remain same. The
process help the companies to analyze the real
market and launch their business.
RURAL MARKETING ENVIRONMENT

Concept of Environment
Environment literally means the surroundings,
external objects, influences or circumstances
under which someone or something exists. The
environment of any organization is “the
aggregate of all conditions, events and influences
that surround and effect it”.
 According to Philip Kotler, “A company’s
marketing environment consist of the internal
factors and forces, which affect the company’s
ability to develop and maintain successful
transactions and relationships with the company’s
target customers.”
 According to Pride and Ferrell, “The marketing
environment consists of external forces that
directly or indirectly influence an organization’s
acquisition of inputs (human, financial and natural
resources and raw materials and information) and
creation of outputs(goods, services of ideas).”
ENVIRONMENTAL FACTORS: INTERNAL AND EXTERNAL ENVIRONMENT

(i) Internal Environment : It refers to those

elements which influence the internal activities of
an organization such as – Money, Material,
Machine and Labour.
(ii) External Environment : It refers to those
elements which influence the outside activities of
an organization like – Demographic, Physical,
Socio-Cultural, Technological, Political and Legal
influences.
THE IMPORTANCE OF RURAL MARKETING
ENVIRONMENT 
1. To Study the Developments and Complexities of
Rural Environment.
2. To Make Company Policy:
3. Help in Taking Various Marketing Decision
4. To Recognize New Market Opportunities
5. To Understand Rural Market Conditions
6. Helpful in Providing Information Regarding Threats
7. Helpful in Facing the Competition and to Get
Information Regarding New Challenges and
Problems