rural marketing module 2

RURAL MARKETING

RURAL MARKETING

According to National Commission on Agriculture “Rural marketing is a process which starts with a decision to produce a salable farm commodity and it involves all the aspects of market system, and includes pre and post harvest operations i.e. assembling, grading, storage, transportation and distribution”.

BROADER PERSPECTIVE

“Rural Marketing can be defined as a function that manages all activities involved in assessing, stimulating, and converting the purchasing power of rural consumers into an effective demand for specific products and services and moving these products and services to the people in rural areas to create satisfaction and a better standard of living and thereby achieving organizational goals.”

NATURE OF RURAL MARKET

Large, diverse and scattered market

Major income of rural consumers is from agriculture

Traditional outlook Standard of living and rising

disposable income of the rural customers

Rising literary levels

Diverse socio economic background

Infrastructure facilities

SCOPE OR ATTRACTIVENESS OF RURAL MARKETING:-

Large population Rising rural prosperity Growth in consumption Change in life style Market growth rate higher than

urban Life cycle advantage

ATTRACTIVENESS OF RURAL MARKETING ENVIRONMENT

a) Social changes b) Economic changes c) Ethical changes d) Political changes e) Physical changes f) Technological changes

SOCIAL FACTORS

Sociological factor Anthropological factors Psychological factors

ECONOMIC FACTORS

Competition Consumers Price

c) Ethical forces:- d) Political forces:- e) Physical forces:- f) Technological force:-

DIFFERENCES BETWEEN RURAL MARKETING & URBAN MARKETING

 URBAN MARKET  RURAL MARKET

 mostly concentrated Widely spread and scattered High infrastructural level Low infrastructural level High density of population per sq km Low density of population per sq km Good physical connectivity and high mobility Poor physical connectivity and low mobility Incomes are  more stable and permanent People work in less certain environment Occupations are government employment, business, industry etc.

Mostly agricultural occupation

 Income received at regular income Acute seasonality in income receipts Large number of interactions with persons and less frequent between same persons

Less number of interactions with persons and more frequent between same persons

 Social norms are less visible Social norms influencing individuals Cast influence indirect and less visible Cast influence direct and strong High exposure to variety of products Low exposure to variety of products High brand awareness Low brand awareness High exposure to marketing researchers and multiple source of information

Low exposure to marketing researchers and limited source of information

 More convenient buying, more retail outlet per 1000 population

Less convenient buying, less retail outlet per 1000 population