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A South Asian Perspective: Marketing Management, 12/e

This document discusses rural marketing in India. It begins by defining rural and urban areas based on population and occupation criteria. It then notes the importance of rural markets, listing the sizable market sizes for various product categories. It describes characteristics of rural markets like literacy levels and family structure. It also discusses consumer behavior in rural areas and how social norms, traditions and caste impact purchases. Finally, it outlines implications for marketing like segmenting rural markets geographically and by socioeconomic class and adapting the marketing mix strategy for product, price, place and promotion.

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Preetam Jain
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28 views16 pages

A South Asian Perspective: Marketing Management, 12/e

This document discusses rural marketing in India. It begins by defining rural and urban areas based on population and occupation criteria. It then notes the importance of rural markets, listing the sizable market sizes for various product categories. It describes characteristics of rural markets like literacy levels and family structure. It also discusses consumer behavior in rural areas and how social norms, traditions and caste impact purchases. Finally, it outlines implications for marketing like segmenting rural markets geographically and by socioeconomic class and adapting the marketing mix strategy for product, price, place and promotion.

Uploaded by

Preetam Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Marketing Management, 12/e

A South Asian Perspective


23
Rural Marketing
in India

Kotler

Koshy

Keller

Jha

Defining Rural Markets

DefinitionUrban
All

places with a municipality, corporation,


cantonment, or a notified town area
All other places satisfying the following criteria:
Minimum population of 5,000
atleast 75 percent of male working force in nonagricultural persuits
A density of population 400/km 2

What is not urban is rural


23-2

The Domain of Rural Marketing


To
Urban
Urban

Rural

from
Rural

23-3

Defining Rural Marketing

Any marketing activity in which one


dominant participant is from a rural area

23-4

Importance of Rural Marketing

Some Rural market sizes


Market
FMCG
Durables
Agricultural inputs
(including tractors)
Automobiles

Size (Rs. Billion)


6,500
500
4,500
800

Source: Francis Kanoi, Marketing Planning Services (2002), as reported in


Pradeep Kashyap and Siddhartha Raut, The Rural Marketing Book (New
Delhi: Biztantra, 2005), p. 25.

23-5

Characteristics of Rural Markets


Literacy levels
Family structure
Occupational patterns
Spatial distribution of households
Social customs and norms

23-6

Distribution of Population in
Villages in India

23-7

Consumer Behavior in Rural Areas

Impact of
Social

norms
Traditions
Caste

Purchase-decision process
Role of opinion leaders
Risk perception
Importance of word-of-mouth
Preference for color and symbols
23-8

Marketing Implications

Segmenting rural markets


Marketing-mix decisions

23-9

Segmenting Rural MarketsTypicalities

Geographic
Regions
States

and union territories


Districts
Sub-division/Talukas
Community development blocks
Panchayats
Villages
Hamlets

23-10

Segmenting Rural Markets

Socioeconomic Classification (SEC)

23-11

Marketing-Mix Decision

Product
Simple
Robust
Small

unit-size
Easy-to-use

23-12

Marketing-Mix

Price
Affordability
Low

unit price
Value for money

23-13

Marketing-mix

Place
Easy

access
Importance of feeder marketsHaats
Importance of wholesalers
Understanding rural consumers purchase
behavior

23-14

Marketing-mix

Promotion
Spread

of population
Literacy levels
Media reach and exposure

23-15

Wheat-Marketing System in India

23-16

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