Professional Documents
Culture Documents
Chapter 2
Chapter Objectives
The facts and figures of rural Evolution of rural marketing in India Holistic view of the marketing environment The household, institutional and service sectors in rural The need for business-social sector partnerships
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Internationally the standard determinant of rurality is population density. Hence the rural areas are defined as those with low numbers of people living on any given area of land. It is this approach that underpins the official definition of rural areas within England and Wales.
Much has been written on the concept of rural. The treatises of alternative views are numerous and varied. One of the longstanding debates concerns whether rural is a geographical concept, a location with identifiable boundaries on a map, or whether it is a social representation, a community of interest, a culture and way of life.
Definition of Rural
Any habitation with a population density of less than 400 sq. km., where at least 75% of the male population is engaged in agriculture and where there exists no municipality or board (Census 2001). The rural and semi urban area is defined as all other cities other than the 7 Metros (LG India).
Locations having shops or commercial establishments with up to 10,000 people are treated as rural (Sahara, ITC, HUL)
Village with a population of less than 5000 with 75% of the male population engaged in agriculture --- IRDA & NCAER
Most FMCG companies consider towns with population less than 20,000 as rural
Rural Markets constitute an important segment of overall economy, for example, in the USA, out of about 3000 countries, around 2000 counties are rural, that is, nonurbanized, with population of 55 million. Typically, a rural market will represent a community in a rural area with a population of 2500 to 30000
Marketing rural products in rural and urban areas Agricultural inputs in rural areas Agricultural marketing Farming methods were primitive and mechanisation was low Markets unorganised
Decisions to produce Marketing products produced Function that manages all saleable farm commodities in rural areas to urban areas activities involved in involving all the aspects of assessing, stimulating and the market system or Marketing products produced converting the purchasing structure, both functional and in rural areas in rural markets power of rural consumers into institutional, based on effective demand for specific technical & economic products and services to considerations and includes create satisfaction & a better the pre & post harvest standard of living for operations. achieving organisational goals.
It is all about understanding the mind rather than manipulating it or adapting marketing theory to a rural environment.
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Some Comparisons
Distribution of Population by age groups (2001) Lower due to migration factor Age Groups 04 5 14 15 19 20 34 35 54 55+
Source : 2001 Census RMB 02
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Some Comparisons
Education in Bangladesh (2005) Education Level Rural Urban
55.39
19.03 17.97 8.09 1.59 0.07 0.00
34.97
20.78 21.75 16.08 3.20 1.88 0.20
Diploma/ Vocational
Others
Source : 2001 Census RMB 02
0.01
0.00
0.01
0.02
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Occupational Pattern
Over 28.7% of rural population is in cultivation followed by
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Food Items
Cereals Pulses Fish Meat & Eggs Vegetables Milk/Milk Products Edible Oil Spices Fruits Sugar/gur Beverages Miscellanies
Rural
42.25 2.39 11.46 7.64 8.34 3.46 4.07 7.18 2.97 1.54 0.45 8.25
Urban
31.30 3.28 14.11 10.56 8.48 4.41 4.67 8.31 3.83 1.62 1.21 8.23
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Physical Environment
Rural and Urban Life: Distinguishing Features Settlements ( scattered and clustered)
2005
Rural
Urban 2000
1995-96 1991-92
Rural Urban
Rural Urban Rural Urban
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Direction
2002 Rural to Rural Rural to Urban Urban to Rural Urban to Urban 10.30 11.00 2.70 39.80
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Village Community
Villages are self-sufficient and autonomous.
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Caste System
Islam is the basis of social organization. Society in Bangladesh, with the exception of the Hindu caste system, was not rigidly stratified rather, loose because most Hindus belonged to the lower castes.
Caste System
Traditional Muslim class distinctions had little importance in Bangladesh. The prohibition against marriage between individuals of high-born and low-born families, once an indicator of the social gap between the two groups, had long
ago disappeared;
Most matrimonial alliances were based on wealth and power and not on the ties of family distinction.
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Political Environment
Local Government in Bangladesh Rural System Zila Parishad (None) Upazila (481) Thana (499) Union Parishads (4,498) Gram Sarkar (1,92,348) Urban System City Corporations (6) , Paurashavas (286) RMB 02
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Political Environment
Union Parishad is the lowest tier of administrative unit in Bangladesh. The Union Parishad consists of a chairman, nine members, and three women members. The voters of the Union Parishad directly elect all. An average village in the late 1980s contained 1,300 to 1,400 people. An average union contained about 15 villages and a population of about 20,000, and an average subdistrict had 8 to 10 unions with about 200,000 people.
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Technological Environment
Triggered by three major revolutions: Green Revolution to bring about food self-sufficiency. Resulted in adoption of high yield seeds, fertilisers, pesticides, and farm mechanisationes Poultry and Fisheries
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NGO Movement
The NGO movement has created grass root level adjustment of technological extensions in rural areas.
NGOs have also been instrumental in providing health, homes, hygiene, child care, education and other social development programmes also
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Durables
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markets
Agri-input companies follow an extension services approach to increase productivity
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