Rural marketing module 1

RURAL MARKETING

Rural marketing involves the process of developing, pricing, promoting ,distributing rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives.

Why Rural Market ?

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” ?

Rural EconomyAgriculture is the main stay of

the Indian economy, as it constitutes the backbone of rural India which inhabitants more than 70% of total Indian population.

Discuss the ancient India

Five-year planJawaharlal Nehru presented the

first five-year plan to the Parliament of India on December 8th 1951

Milestone of Indian History11 th five year plan started in

march 2007

Turning PointsGreen Revolution Dr M S

SwaminathanWhite Revolution Dr Vargeese

KurianBlue Revolution Dr Hirala

ChaudriTelecom Revolution Sam

Pitharado

Five-year plan changed the face of rural development1950 – 2000Barter to cash rich economyEconomic Allocation crossed one

lack croreRapid increase in literacy rate HDI - Human Development IndexHDI includes economic,

educational and health development

Reason behind the development of rural economy Value Addition

Rural Economy

Farm Sector

Agriculture

Animal Husbandry

Horticulture

Forestry

Fishing

Non-Farm Sector

Rural Industries

Agro Processing

Manufacturing

Mining & Quarrying

Construction

Rural Services

Retailing & Trading

Community & Social Service

Transport & Storage

Communication

Rural Income Rs 7006

billion

Agriculture 53%

Self Employed

43%

Wage Earner 10%

Non Agriculture 47 %

Formal 31 %

Informal 16%

Rural Population

Agriculture 73%

Self Employed

40%

Wage Earner 33%

Non Agriculture

27 %

Formal 15 %

Informal 12 %

Rural Per capita Income Rs 9481

Agriculture Rs 6855

Self Employed Rs 10150

Wage Earner Rs

2860

Non AgricultureRs 16464

Formal Rs 19514

Informal Rs 12595

Why Policy Intervention RequiredImproving the quality of life of

rural peopleReducing urban rural disparities

How we can achieve this aim ?Proper attention to agricultureFocus on cropping systemRegion based strategy is requiredCredit and insurance system

Various Steps takenInstitutional CreditInvolvement of panchayat raj

institutionsSelf help groupsNABARDCommunication

Union Budget 2001Pradhana manthri Gramodhana YojanaSelf Employment SchemeEmployment assurance scheme Janashree bima yogana – insurance

coverRural Infrastructure fundMicro financePolicy on land , water, agriculture and

housingEncouraging rural industry,CSR, to digital

world.

Rural InfrastructureRoad connectivityPost officeRadioTelevisionPress and Print MediaTelecom serviceMobile serviceElectrification

Social InfrastructureRural Health ServiceSub centers Primary Health centersCommunity Health centers

Public distribution system

Agri InfrastructureMandisAgricultural cooperativesHaats and Melas

Commercial InfrastructureRegional Rural bankScheduled commercial bankService cooperative bank

Challenges to Indian Marketer(Marketing perspective )Indian market is open to foreign

companiesThe increasing number of cross

boarder allianceGrowth of global brand in Indian

marketGlobal life styleEmergence of attractive rural

market

Rural Marketing perspective

Under developed people Under developed market Improper communication facilities Many languages Vastness & uneven spread Low per capita income Poor infrastructure facilities Seasonal demand Ineffective distribution channel Spurious brands

To overcome these challenges

Strategic alliance, mergers and acquisitions

ReengineeringAdopting TQMSupply chain managementTap untapped market