Module-1

Introduction
Learning Objectives
To understand
The concept and scope of maketing.
The nature of rural marketing.
The classification of Rural market
The attractiveness of rural markets
Rural Vs Urban marketing
The Value-added rural marketing
Concept and Scope
The term Rural marketing is defined in
terms of three phases:
1. Phase-I
2. Phase-II
3. Phase-III
Phase-I [Before mid 1960s]
Called agricultural marketing

From\To Rural Urban

Urban

Agricultural inputs- consumables

Not relevant

Rural

Artisan services and products

Agricultural Products

Phase-II [Mid 1960s-Mid 1990s]
From\To Rural Urban

Urban

Agricultural inputs:
consumables and durables

Not relevant

Rural

Artisan services and products

Agricultural Products

Phase-III[After mid 1990s]
From\To Rural Urban

Urban

Occupational inputs:
consumables and durables

Household inputs:
consumables and durables


Not relevant

Rural

Artisan services and products

Agricultural Products

Definition
Rural marketing is a function which manages
all those activities involved in assessing,
stimulating and converting the purchasing
power into an effective demand for specific
products and services and moving them to
the people in rural area to create satisfaction
and a standard of living to them and thereby
achieves the goals of the organization.
Nature of Rural Market


Is rural marketing transactional or
developmental in its approach?
Difference between Transactional Marketing and
Developmental marketing
Aspect TM DM

Concept
Consumer oriented
marketing concept
Society oriented societal
concept

Role
Stimulating and conversional
marketing
Catalytic and transformational
agent

Focus
Product-market fit Social change

Key Task
Product innovation &
communications
Social innovations and
communication

Nature of activity

Commercial

Socio-cultural, economic

Participants
Corporate enterprises,
sellers
Govt. voluntary agencies,
corporate enterprises etc.,

Offer
Products and services Development projects
(schemes) /programmes
Contd
Aspect TM DM

Target Group

Buyer

Beneficiaries and buyers

Communication

Functional

Developmental

Goal
Profits
Consumer satisfaction
Brand image
Market development
Corporate image

Time frame

Short-medium

Medium-long

Motivation
Profit motive
Business policy
Service motive
Ideological or public
policy
Taxonomy of rural market
Consumer market
Constituents: Individuals and households
Products: Consumables - food products, toiletries, cosmetics, textiles
Durables - watches, radio, TV, kitchen appliances, furniture,
two wheelers, cars etc.,

Industrial market
Constituents: agricultural and allied activities, poultry farming, fishing,
cottage industries, health center, schools, cooperatives,
panchayat offices etc.,
Products: Consumables seeds, fertilizers, pesticides, animal feed,
fishnets, medicines, petrol/diesel, etc.,
Durables tractors, tillers, pump sets, generators, harvesters,
boats etc.,

Contd
Service market
Constituents: Individuals, households, offices and production firms
Services: repairs, transport, banking, credit, insurance, healthcare,
education, communication, power etc.,
Attractiveness of rural markets
Large population
Raising 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

Rural Vs Urban marketing
Marketers use three approaches while
carrying out their rural marketing activity:
1. Trickle down approach
2. Undifferentiated approach
3. Differentiated approach
- Market differences
- Marketing differences
Market Differences
Environmental differences
Social- relationship differences
Exposure to marketing stimuli
Dependence on nature
Employment and income

Marketing Differences
Marketers
Philosophy
Marketing research
Consumer differences
Segmentation
Product strategy
Price strategy
Distribution strategy
Promotion strategy


Difference B/W Urban & Rural Markets

Parameters Urban Rural
Philosophy Marketing and
transactional concepts
Green marketing and
Relationship marketing
Marketing and societal
concepts
Developmental marketing
Relationship marketing
Market:
a) Demand

b) Competition


c) Consumers
- Location
- Literacy
- Income
- Expenditure
- Needs
- Innovation adoption

High

Among units in organized
sector


Concentrated
High
High
Planned, Even
High level
Faster

Low

Mostly from unorganized
units


Widely spread
Low
Low
Seasonal variation
Low level
Slow
Contd
Parameters Urban Rural
Product
- Awareness
- Concept
- Positioning
- Usage method
- Quality preference
- Feature

High
Known
Easy
Easily grasped
Good
Important

Low
Less known
Difficult
Difficult to grasp
Moderate
Less important
Price
- Sensitive
- Level desired

Yes
Medium-High

Very much
Low-medium
Distribution
- Channels



- Transport facility
- Product availability

Wholesalers, stockists,
retailers, supermarkets,
specialty stores and
authorized stores
Good
High

Village shops, shandies,
haats and jatras


Average
Limited
Contd
Parameters Urban Rural
Promotion
- Advertising



- Personal selling


- Sales promotion


- Publicity

Print, TV, radio, out doors,
exhibitions etc.,
Few languages

Door-to-door
Frequently

Contests, gifts, price
discounts

Good opportunities

TV, radio, print to some
extent
More languages

Door-to-door
Occasionally

gifts, price discounts


Less
Identify
Unique
Features of
Rural
Customers

Study
Demo-
graphic
Patterns

Study
Product
Ownership
Pattern
Segment
Rural
Customers
Provide
Financial
Benefits
Build
Special
Brands
For RC
Communi-
Cate
Unique
Proposition
VALUE ADDED RURAL MARKETING
NO
Yes NO
Yes
Ensure
Increase
In
Customer
Value
Are the
Clusters
Large
Enough?
Are
relevan
t needs
being
met?
LESSONS LEARNT FROM VALUE ADDED RM
Know the importance of segments
Offer small units of package
Reinforce product quality through service initiatives
Establish 1 to 1 communication channels
Use local idioms to convey your message in a meaningful
context
Core values of brand must strike the customers
Go rural & Be Rural
Groom a separate set of professionals more conversant with
the RM