Rural Marketing

Environment

Environment
It refers to the surroundings , external objects ,
influences or circumstances under which
someone or something exists.
Environment of any organization is the
aggregate of all conditions, events and influences
that surround and effect it

Types of environment
Demographic
Socio-Cultural
Political
Economic
Technological

DEMPGRAPHIC ENVIRONMENT
For the first time since Independence, the
absolute increase in
population is more in urban areas that in rural
areas
Rural Urban distribution: 68.84% & 31.16%
Level of urbanization increased from 27.81% in
2001 Census to
31.16% in 2011 Census
The proportion of rural population declined
from 72.19% to 68.84%

Literacy Rate Rural Urban Differential

India - 2001, 2011

Gap between Literacy Rate in Urban and Rural areas is

steadily declining in every census. In Census 2011, the gap
stands at 16.3 points

2001

2011

India

64.8

74

Rural

58.7

68.9

Urban

79.9

85

LITERACY RATE
(in percentage)

Number of Workers by Residence

India : 2011

(in million)

Residence

Number of
Workers

Non-Workers

Work
Participation
Rate*

Total

481.7

728.8

39.8%

Rural

348.6

484.9

41.8%

Urban

133.1

243.9

35.3%

* Work Participation Rate is defined as the number of

workers per 100 population

ECONOMIC ENVIRONMENT
Per Capita Rural Income

Rural Per Capita Income

Rs. 9,481

Agricultural
Rs. 6,855

Self-employed
Rs. 10,150

Non-agricultural
Rs. 16,464

Wage-earners
Rs. 2,860

Formal
Rs. 19,514

Informal
Rs. 12,595

SOURCES AND PATTERNS OF

INCOME

Primary source is agriculture

No regular income throughout the year
(Seasonality)
Cash only at the time of harvest
Marketers should notice of time of year when
incomes are due
Crop patterns vary, and time of cash surpluses
from harvests vary geographically
Cash crops and services leading to stable cash
flows throughout the year.
Remittances from outside.

Rural Housing Pattern (in percentage)

SOCIO CULTURAL ENVIRONEMNT

Features:
Strong casteism
Gender discrimination
Huge cultural diversity
Tied Social customs
Group influence on behavior

POLITICAL ENVIRONMENT
Panchayati Raj :
Mahatma Gandhi advocated Panchayati Raj, a
decentralized form of Government where each
village are responsible for its own affairs, as the
foundation of India's political system. The term
for such a vision was Gram Swaraj ("village selfgovernance").
Provides 3 tire system for all the states
population exceeding 2 mn.
Elections after every 5 years
To collect taxes, duties, tolls, fees etc.

TECHNOLOGICAL ENVIRONMENT

Green Revolution:
This started in the year 1967-78, for attaining
self sufficiency in food grains.
White Revolution:
It aimed at achieving self sufficiency in milk
products , formation cooperatives
and
systematization was the primary objective.

Comparison of rural and urban

environment

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