Why should we do this course?

• Agriculture’s share in GDP is going down, but, India still lives in her
villages
• Urban markets are crowded and saturated
• The understanding of “rural” is diffused and sometimes confusing
• Is “rural marketing” different from “urban marketing” ?
 Definition of Rural India
• Census of India: habitation with a population density less than 400 sq.km, where at
least 75 percent of male working population is engaged in agriculture. Minimum
population < 5000.
Rural Population 89,2321651
Percent 69.7

• Insurance Regulatory and Development Authority (IRDA): habitation with a

population density less than 400 sq.km, where at least 25 percent of male working
population is engaged in non-agricultural activities. Minimum population < 5000.

• Limitations: It doesn't consider population having > 5000 as rural

 What is Rural Marketing ???
Developing of the market in the area as defined as Rural.

Hence it could be aptly said that it encompasses the Activities such

as developing the process to meet this Objective – Right product at
the right price to the right people at the right time.

Exchange between rural and Urban is a Factor.

Could be Urban to Rural: Rural to Urban, Rural to Rural

 NATURE OF RURAL MARKETING

The characteristics of rural marketing are:

 Large and scattered population

 Higher purchasing capacity

 Market growth

 Development of infrastructure

 Low standard of living

 Traditional outlook

 Marketing mix
 Rural Marketing Mix
• The 4 Ps of marketing – price, product, place and promotion – replaced by 4 As in rural
markets

Affordability Availability

Acceptabilit
Awareness
y
 The Evolving Rural Consumer
– Value driven and looks for products that add to earning capabilities or to
status

– Increasing literacy and exposure to mass media, increasing aspiration levels

– Better road infrastructure leading to increased mobility

– Highest change amongst children and youth, increasing their role as

influencers
 Rural India: The Exploding Middle Class

•Lower cost of living leads to higher proportion of disposable income

•Government rural thrust boosting bottom of pyramid (BoP) incomes

•Rural infrastructure being developed in the areas of roads,

electrification, education and health

•Increase in agricultural productivity and shift to cash crops increasing

agricultural income
URBAN VERSUS RURAL MARKETING
 URBAN VERSUS RURAL MARKETING
Sl No. Base Urban marketing Rural marketing
1. Philosophy Integrated, innovative relationship Additionally, development oriented with inclusive
orientation. growth concept.

2. Views about customers A buyer. An innovator who looks for A buyer and an entrepreneur, partner in business growth
style, novelty and quality. model. As a buyer looks for quality products that offer
value for money.

Sl No. Base Urban marketing Rural marketing

3. Marketing research Sophisticated marketing research methods. Needs simple, interactive approaches (like interviews,
Internet, TV channels and mobile SMS, discussions), observation (diary of farmer, a day in Haat, etc.).
etc. are being used. Simple methods of rating scale are required. Image of faces,
colour wheel for rating, playing cards and carom coins for
ranking are helpful.
 URBAN VERSUS RURAL MARKETING (CONTD.)

Sl No. Base Urban marketing Rural marketing

4. Segmentation Psychographic (lifestyle) and usage- Demographic and geographic
based segmentation. segmentation is the starting point.
Research agencies have developed
marketing potential studies that help
in segmenting markets.

5. Targeting Segment with relevant characteristics. Segment with relevant characteristics

with or without buying power.
 BECOMING A RURAL MARKETER

Some of the important requirements to help you assess your potential.

Motivation

 Accepting the challenging assignment to prove oneself

 Desire to take up a different job, staying in rural areas (being a rural native),
 Serving the nation (patriotic spirit)
 Helping the poor to change their lives (service challenge)
 Expecting acceptable rewards (salary and benefits that are enough to lead a good life).
Thanks