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Rural Marketing - Part 2

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44 views3 pages

Rural Marketing - Part 2

Uploaded by

bujjividya123
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Study Material

Class - B. Com Hons Sem VI


Subject Code – BCH- 6.2
Subject – Principles of Marketing
Topic – Rural Marketing - Part 2

Prepared by - Dr. G. Vijayalakshmi.


Faculty of Commerce, Karim City College.

Learning outcome from this lecture note


 Scope of Rural Marketing
 Areas to be investigated in Rural Marketing
 Some example of Rural Marketing

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Meaning and Scope of Rural Marketing


Due to stiff competition in domestic as well as global markets,
companies are now moving from urban areas to rural areas. Companies
are establishing themselves in rural areas by developing and upgrading
the knowledge of their products and creating a segment of necessity for
their products among customers. The rural areas had negligibly been
tapped, but increasing globalization, has forced marketers to connect
with the rural markets.

Rural marketing is a compilation of the developed product, reasonable


price, appropriate placing and right awareness. The marketing rule sates
that, the right product, at the right price, at the right place, at the right
time, through the right medium should reach the right customer. This
same rule stands good for rural marketing also.

Over the last few decades, the Indian rural market has become
prominent due to growth in the purchasing power of rural population.
The rural areas consume a large quantity of products manufactured in
urban areas; therefore, the rural market is getting more importance than
urban market. Nowadays, the marketers are looking for expansion in the
untapped rural market.

1
The majority of Indian population lives in rural areas; therefore, there is
a vast scope for marketing in rural India.

An organization follows rural marketing for the following


reasons:
a. Rural Population – Consists of more than 720 million people and
forms a huge market for organizations.
b. Rural Economy – Contributes significantly in the country’s GDP.
Rural India has a large number of households who are aware about
the branded products and willing to buy them.
c. Relation between Rural and Urban Economy – Refers to economic
connectivity between rural and urban areas.

The marketer in rural area has to investigate:

1) Market segmentation by market potentials which would help the assessment


of the markets by consumer demand and purchasing ability.
2) Consumer behaviour and the rural consumer’s priorities and preferences in
consumer expenditure, sources of buying, quantum of each purchase, and
time and conditions of purchase.
3) How best to win over the rural consumer, and make effective use of media.
4) Who are the catalytic agents of change and what role can they perform vis-a-
vis ones products?

Against this background of the rural consumer, the marketing strategy has to be
evolved. Further, there are constraints associated with rural market, the
inaccessibility, scattered villages, un -professional retailers.

Some of the examples of companies involved in rural marketing are:

(a) The two major Cola brands Coca-Cola and Pepsi apart from their usual
battle over market share have been trying hard to enter into rural markets. They
have come up with many marketing strategies such as pricing, distribution
strategies etc., like providing ice boxes, refrigerators, credit facilities etc.

2
Winning the rural market has been the toughest job for both the brands. Though
they are largely popular in urban market, the brand image will not get them
loyal customers in rural market. Both Coke and Pepsi have made huge efforts to
penetrate deep into the rural markets by substantially increasing their retailer
and distribution network and with innovative marketing strategies.

(b) Dabur has scaled up quickly and exceeded its original goal of serving 30,000
villages within 18 months. Sales growth is now 42% higher in its rural markets
than its urban ones, even as overall gross margins have improved.

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