8/12/2019 Rural Marketing by JRD 129
1/13
Presented by: Dr. J.R. Das
8/12/2019 Rural Marketing by JRD 129
2/13
Government agencies likeIRDA (InsuranceRegulatory and
Development Agency and
NCAER National Councilfor applied Economic
Research) define Rural as :
Village with a population
8/12/2019 Rural Marketing by JRD 129
3/13
Rural Markets are defined as thosesegments of overall market of anyeconomy, which are distinct from theother types of markets like stockmarket, commodity markets or Laboreconomics.
8/12/2019 Rural Marketing by JRD 129
4/13
What is Rural Marketing?
According to the National Commission on Agriculture: RuralMarketing is a process which starts with a decision to produce asaleable farm commodity and it involves all the aspects ofmarket structure or system, both functional and institutional,abase on technical and economic considerations and includes
pre and post harvest operations, assembling, grading, storage,transportation and distributions.
RuralMarketing can be defined as a function that manages allactivities involved in assessing, stimulating, and converting thepurchasing power of rural consumers into an effective demandfor specific products and services and moving these products
and services to the people in rural areas to create satisfactionand a better standard of living and thereby achievingorganizational goals.
8/12/2019 Rural Marketing by JRD 129
5/13
Why Rural Marketing is hot?
Rural Push Policy of UPA Government
Four Consecutive years of positivegrowth in rural GDP
40% hike in MSP of Crops over last twoyears
Farm Loan Waiver & NREGS
Growing Industry Demand for land(Overnight Wealth)
Big rise in remittances from Cities Slowing urban demand forcing
corporates to rural markets
8/12/2019 Rural Marketing by JRD 129
6/13
% Annual Change in Rural GDP
Year Change
2003-04 10%
2004-05 -6.7%
2005-06 5.8%
2006-07 4%
2007-08 4.9%
2008-09
(Estimates)
2.6%
51%
Rs. 13,65,000
Crore
49%
Rs 13,17,018
Crore
8/12/2019 Rural Marketing by JRD 129
7/13
Why Rural Marketing
is a New Discipline?
Rural Marketing is a new discipline because:-
India is a predominantly agrarian society. Western Marketing has no experience to
manage it.
Urban markets are saturating in India.
There are immense opportunities at the
bottom of the pyramid. R. M. can change rural business.
Retail boom will also expedite the growthof rural marketing.
8/12/2019 Rural Marketing by JRD 129
8/13
Whether Rural Markets
are Attractive?
Large population
Rising prosperity
Growth in consumption Life-style changes
Life-cycle advantages
Market growth rates higher than Urban
Rural marketing is not expensive Remoteness is no longer a problem.
8/12/2019 Rural Marketing by JRD 129
9/13
Urban & Rural Markets
Per capita Income
Disposable Income
Literacy levels
Infrastructure
Communication
Geographical Spread
Customer has many choices
Key Differences
8/12/2019 Rural Marketing by JRD 129
10/13
PROBLEMS
IN
RURAL
MARKETING
Low per capita income
Low disposable income
Inadequate fixed income
(daily wages)
Majoritydepends on Agricultural
Income
Acute dependence on monsoon
Consumption linked to harvest
Infrastructure problems
Roads, power
Low awareness
Communication- difficult & expensive
Too many languages
Geographic Spread
8/12/2019 Rural Marketing by JRD 129
11/13
Marketing Strategy
Distribution Strategy
Promotional Strategy Sales strategy
8/12/2019 Rural Marketing by JRD 129
12/13
Rural India offers tremendous opportunity for any
company to tap.
Companies face many challenges in tackling the ruralmarkets.
Important factors being an understanding of the rural
customers' needs, a reliable distribution channel, andan effective marketing communication strategy to put
their message across to the rural consumer
8/12/2019 Rural Marketing by JRD 129
13/13
THANK YOU