Account on issues and challenges of rural marketing pdf

Rural marketing improves agricultural sector and improved agricultural sector can boost whole economy of the country. Rural marketing can generate more attractive employment opportunities to rural and urban people. Growth of rural marketing leads to increased business operations, professional activities, and services that can generate a lot of employment opportunities. Due to rural marketing system, rural buyers can easily access needed standard goods and services at fair prices.

In the same way, rural marketing improves rural infrastructure. Additionally, rural marketing can also improve their income. These all aspects can directly improve living standard. Rural marketing leads to set up agro-based processing industries.

Fruits, vegetables, cereals, pulses, etc. There are unlimited businesses opportunities exist in rural areas. Untapped and underutilized resources can be utilized at optimum level and that can further accelerate overall economic growth.

Growth of rural marketing improves whole marketing system. Multiple options are available to farmers and local producers to market their products.

Big domestic corporate houses and multinational companies prefer to buy agricultural products directly from villages by their own or through agents and small firms. Rural producers can sell their produces easily at satisfactory prices. Their improved income level can improve their purchasing power that can further fuel to industrial demand. Rural marketing and basic infrastructures go hand to hand.

Growth of rural marketing leads to improved transportation, insurance, banking, communication, entertainment, and other facilities. Due to availability of basic infrastructural facilities, business units can easily reach the target rural buyers. Marketing results into better transportation, warehouses, and communication facilities.

Agricultural products can be systematically marketed throughout the year. Huge gap between demand and supply can be avoided and, as a result, prices of most of commodities remain more or less stable. Marketing can refine entire living style and system. Better quality products at reasonable price, improved income level, availability of facilities, etc. Quality of life improves and level crime reduces.

The gap between rural and urban development can be reduced gradually. Rural development improves rural life and reduces pressure on urban life. Apart from these points, there are a number of ways that rural marketing can significantly contribute to economic and social development. Rural Marketing: Introduction, Concept and Definitions. Rural Market in India. We use cookies We use cookies to personalise content and ads, to provide social media features and to analyse our traffic.

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A short summary of this paper. Download Download PDF. Translate PDF. Ashfaque Ahmed, Lecturer, Department of Business Studies, Al Mussanna College of Technology, Sultanate of Oman, Oman ABSTRACT Rural markets offer a great scope for a concentrated marketing effort because of the recent increase in the rural incomes and the likelihood that such incomes will increase faster because of better production and higher prices for agricultural commodities.

Rural Marketing is a developing concept, and as a part of any economy has untapped potential; marketers have realized the opportunity recently. Improvement in infrastructure and reach promise a bright future for those intending to go rural. Any macro-level strategy for these markets should focus on availability, accessibility and affordability.

Focused attention needs to be paid to market research that goes on to reduce the uncertainly in dealing with these markets. More specifically, in relation to rural areas, demand is seen to a very highly price elastic. There is no doubt that divides do exist between urban India and rural India. This confusion leads to improved the lifestyles of poor and the illiterate distorted understanding of the problems of rural and some market agencies forecast the rural marketing poor diagnosis and, more often than not, demand will superseded the urban demand in the poor prescriptions.

Rural marketing and urban near future. Once the urban markets getting marketing are identical as regards basic marketing saturated for several categories of consumer goods structure. However, rural markets and rural and with rising rural incomes, marketing executives marketing have special features and dilemmas as are fanning out and discovering the strengths of the compared to urban markets. The rural markets offer large rural markets as they try to enlarge their a great scope for a concentrated marketing effort markets.

Today, the idea has grown out of its early because of the recent increase in the rural incomes stages and dominates discussions in any corporate and the likelihood that such incomes will increase boardroom strategy session.

Adi Godrej, chairman faster because of better production and higher of the Godrej group that is in a range of businesses prices for agricultural commodities.

A marketers. It is only natural that economic research entity, recently confirmed that rural markets form an important part of the total rise in rural incomes is keeping pace with urban market of India. Our nation is classified in around incomes. From 55 to 58 per cent of the average districts, and approximately villages, urban income in , the average rural income which can be sorted in different parameters such as has gone up to 63 to 64 per cent by and literacy levels, accessibility, income levels, touched almost 66 per cent in The rural penetration, distances from nearest towns, etc.

The middle class is growing at 12 per cent against the rural markets dominate Indian marketing scene and 13 per cent growth of its urban counter- part. It will have a 22 the rural areas under the five- year plans and other to 23 per cent rural component. Higher rural special programmes, today the rural market offers a incomes have meant larger markets. It is no www. Rural marketing constitutes idea of a resurgent rural India waiting to happen.

Four years ago, Coke ventured into the hinterland. Rural marketing is a two way marketing process. Now Coke's rural growth of 37 per cent far The content now encompasses not only marketing outstrips its urban growth of 24 per cent. Coke is of products which flow to rural areas, but also not the first MNC to have cottoned on to the rural products which flow to urban areas from rural lure.

Its global rival PepsiCo took a wider approach areas. So a broad definition of rural marketing is to the business when it was given permission to set concerned with the flow of goods and services up shop in India in the late s and investment in from urban to rural arid vice-versa.

In addition, it food processing and farming was a pre-condition also includes the marketing in the rural areas. As the rural marketing is a two-way process, this Project Shakti uses self-help groups across the article attempts to highlight Issues and challenges country to push Lever products deeper into the associated with the rural marketing strategies. It hinterland. Its four-pronged programme creates covers the marketing strategies aspects of rural income-generating capabilities for underprivileged produce with special reference to products and rural women; improves rural quality of life by services within the rural areas.

A decade ago, the rural market was spread literacy. There are currently over 15, more unstructured and was not a prioritized target Shakti entrepreneurs, most of them women, in location for corporate. Very few companies, mainly 61, villages across 12 states. With such an the agro-based ones, were concentrating in these emphasis on rural marketing, consumption patterns markets.

There is no innovative strategies and are changing and it signals a change in the promotional campaigns. A distribution system did regulatory environment. Illiteracy and lack of All this potential has got India's big business technology were the other factors leading to the houses rushing to enter and expand rural poor reach of products and lower level of businesses.

Its subsidiary, Mahindra and clutter in the urban market, and a demand was Shubhlabh Services, has operations in 11 states, building up in rural areas. Seeing the vast potential and leverages the strong Mahindra brand, the of 75 per cent Indians living in rural areas, they ,strong Mahindra tractor customer base and started focusing on these unexplored, high- the plus dealer network, to provide a complete potential areas.

Companies came up with special range of products and services to improve farm rural products, like Chic Shampoo sachets Re 1, productivity and establish market linkages to the Parle G Tikki Packs Rs 2, customized TVs by commodity market chain. All these brought Mahindra Krishi Vihar, has been instrumental in positive results for them. Also, campaigns like increasing the groundnut yield in Rajasthan Project Bharat by Hind Lever, where trials were through a new seed sourced from the state of generated across India in , saw 30 per cent of Maharashtra, and it has also introduced a new its total personal products growing to contribute 50 variety of grapes in Maharashtra.

Rural India per cent five years down the line. No doubt they covered Project Jagruti in the second phase by Colgate Broadly rural marketing incorporates the marketing Palmolive India was a village consumer contact of agricultural products, rural industries products programme in It increased penetration of and services of many kinds. The trade channels for Colgate Dental Cream by doubling the villages different types of commodities available in rural from 33, to 55,, reaching to a million areas areas private, cooperatives, processors, houses.

Such projects lead to increased penetration regulated markets and state agencies. In no sense, a of products in rural areas. Very little attention has been paid in the various brands and categories.

Also, high planning era towards the development of rural congregation areas, like fairs, haats, markets etc. In fact marketing is a dynamic state of are proving to be an important marketing tool since affairs and is part and parcel of the whole clusters of target audience can be tapped at the economy. Thus production and marketing are the www. Location plays a big role in they are happy with that. They are happy with such marketing.

Therefore, if a product is for kids, a high technology that can fulfill their need. For anganwadis and schools are a good place taps them example Nokia and Reliance has launched a simple and their mothers. Similarly, mandis and village product, which has captured the market. Person in Case of Celebrity Endorsement Companies are picking up Indian models, actors for Here are some of the strategies may advertisements as this helps them to show adopt by Companies for Rural Markets themselves as an Indian company.

There is a trade-off between peoples know them very well. Quality a customer perceives and a company wants to communicate. Thus, this positioning of Patriotism with Products and Services technology is very crucial. The perception of the Companies are associating themselves with India Indian about the desired product is changing. Now by talking about India, by overtly saying that they they know the difference between the products and are Indian and they are more patriotic. Using Indian the utilities derived out of it.

As a rural Indian Tricolor while doing advertisement during customer always wanted value for money with the Independence Day and Republic Day like Nokia changed perception, one can notice difference in has designed a new cellular phone , with the current market scenario especially in case of India tricolor and a ringing tone of "Sare Jahan se services given by the companies. Easy-Way Communication especially for Rural Promoting Indian Sports Team Market Companies are promoting Indian sports teams so The companies have realized the importance of that they can associate themselves with India.

Cricket World Cup. For example Hero Honda has They have started selling the concept of quality launched a campaign "Dhak Dhak Go" Similarly, with proper communication and easily Other companies has also launched a campaign understandable way of communications.

Their during world cup. Companies are now talking about Be Indian. Indian loyal to it. They are ready to Developing Specific Products for Specific pay premium for the product if the product is Segment offering some extra utility for the premium. Many companies are developing rural-specific Regards for Cultural and Social Values products. Keeping into consideration the Companies have recognized that social and cultural requirements, a firm develops these products.