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PRESENTED BY:-
RAHUL KURMISOURAV LAHIRI
MECHANICAL ENGINEERING SEVENTH SEMESTER C.S.I.T (DURG)
“RURAL MARKETING- A SHINY STREAM AHEAD”
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What to be called as RURAL???Definitions of Rural
Census Village: Basic Unit for rural areas is the revenue village, might
comprise several hamlets demarcated by physical boundaries.
Town: Towns are actually rural areas but satisfy the following criteria.
Minimum Population >=5,000 Population density>= 400/ sq. km. 75% of the male population engaged in non- agri
activity.
RBI Locations with population up to 10,000 will be considered as rural
and 10,000 to 100,000 as semi-urban.
Nabard All locations irrespective of villages or town, up to a population of
10,000 will be considered as ‘rural’.
Planning Commission
Towns with population up to 15,000 are considered as rural.
Sahara Locations having shops/ commercials establishments’ up to 10,000
are treated as rural.
LG Electronics
The rural and semi urban area is defined as all other than the seven
metros.
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WHAT DOES MARKETING STANDS FOR???
Marketing may aptly be described as theprocess of defining, anticipating andknowing customer needs, and organizing allthe resources of the company to satisfy them.
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RURAL MARKETTING Rural marketing is a function which manages all
those activates 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.
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DEVELOPMENT OF RURAL MARKETING
In earlier times the term rural marketing was used to
define the people who dealt with the rural people in one another way. But gets it separate meaning and
Importance after the economic revaluation INDIA in
1990.
The development of rural marketing can be segmented into three phases which are described as follow:-
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Phase I (Before 1960):Rural marketing referred to selling of
rural products in rural and urban areas
and agricultural inputs in rural markets.
It was treated as synonymous to
‘agricultural marketing
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Part II (1960 to 1990):During this period green revolution resulted from scientific
farming and transferred many of the poor villages into
prosperous business centres. As a result, the demand for
agricultural inputs went up especially in terms of wheat's
and paddies. Better irrigation facilities, soil testing, use of
high yield variety seeds, fertilizers, pesticides and machinery etc.
Two separate areas of activities had emerged- during this
period ‘marketing of agricultural inputs’ and the
conventional“ Agricultural Marketing”
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Phase III (After Mid 1990s):The products which were not given attention so far
duringthe two earlier phases were that of marketing ofhousehold consumables and durables to the rural
marketsdue to obvious reasons. The economic conditions of thecountry were as such that the rural people were not in aposition to buy these kinds of products. Since 1990s,India’s industrial sector had gained in strength andmaturity. The economic reforms further accelerated the
process by introducing competition in the markets. Steadily, the rural market has grown for household consumables and durables.
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WHAT’S A RURAL MARKET Rural Markets are defined as those segments of overall
market of any economy, which are distinct from the other types of markets like stock market, commodity markets or Labour economics.
Rural areas of the country or countryside are areas that are not urbanized, though when large areas are described country towns and smaller cities will be included. They have a low population density, and typically much of the land is devoted to agriculture
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Why Rural Marketing is hot:-Rural Push Policy of UPA GovernmentFour Consecutive years of positive growth in
rural GDP40% hike in MSP of Crops over last two yearsFarm Loan Waiver & NREGSGrowing Industry Demand for land (Overnight
Wealth)Big rise in remittances from CitiesSlowing urban demand forcing corporate to
rural markets
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The Rural Consumer: A Detailed Profile
•SIZE OF RURAL CONSUMERI. Rural population about 73% of total population.II. Acc to 2011 census, 80crore population.III.12 crore households- 70 % of total
• LOCATION PATTERN: A scattered market-1. Urban population in 3200 cities2. Rural population in 6,27,000 villages Up to 5000 <1.1% Up to 500 >55% Up to 200 >25%
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SOCIO-ECONOMIC POSITIONLow purchasing per capita income.Bounded by tradition, culture, religion and community.Varied regional preferences.70 percent income from agriculture.• more than 50% have income <Rs 25,000.•About 14% have income >Rs 50,000.In recent years , 70% rural households started saving their income (service class, non farmers like shopkeepers etc.)
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•Culturally a Diverse and heterogeneous MarketIn terms of religious, linguistic , social and cultural factors.
•State to state variation in extent of development-from study conducted by IMRB ( Indian market research institute) provides development index points for each stage on:-Health and education.Availability of public sectorElectricity.Communications.Banks and post offices.Water supply.•Average villages have 33 index points.I. Kerala have 88 index points.II. Bihar having 22 index points.III. UP, MP, Rajasthan close to 22 pointsIV. Maharashtra, Haryana, Karnataka 40-50 points.
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LITERACY LEVELRural India has literacy level rate of 30% compared to 59% of the whole country.Scenes have changed since last few years. Literacy rates increased from 20% to 29%.Every year 8 million people get added to rural India's literate population.Adult literacy program being successful to a good extent.
LIFESTYLEConservative and traditional bounds has changed to a good extent due to:•Increase in income.•Educational growth.•Enlarged media reach.•Growing interaction with urban areas.•Marketers efforts to reach rural areas.
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RECENT TRENDS:Steady growthWelcome change in the composition of Rural
demadSeveral products already well in the rural marketIn many products, rural consumption accounts for a
larger share than urbanIn many products, rural market has overtaken the
urban in growth rate-detergent powder, washing soaps, Analgesics
Position of durables (bicycle-53,celing fan -19 radio-42)
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YEAR 1971 1981 1991 2001
Total population (million) 548.2 683.3 848.3
1026.9
Rural population (million) 524.0 628.8
741.6
Rural Proportion to total population (%)
80.1 76.7 74.3 72.2
Decadal Variation - 19.8 16.7 15.2
Source: Census of India 2001
DEMOGRAPHIC DATA
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DISTRIBUTION OF OCCUPATION AND INCOME IN RURAL MARKET
DISTRIBUTION OF HOUSEHOLD BY ANNUAL INCOME
<=35,00035,001-70,00070,001-105,00105,001-140>140,000
3%
10%
4%
48%
35%
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4 A’s approach to Indian rural marketing mgmt.
1.AVAILIBILITY (PLACE)
2.AFFORDABILITY (PRICE)
3.ACCEPTABILITY (PRODUCT)
4.AWARENESS (COMMUNITY)
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MARKETING STRATEGIES:-Marketers need to understand the psyche of the rural consumers.
Intensive personal selling efforts at the community level.
Firms should refrain from designing goods for the urban markets and subsequently pushing them in rural areas. Focus particularly on rural market based products would give an edge to manufacturers.
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DISTRIBUTION STRATEGY:-
Using company delivery van which can serve two purposes
Annual mela’s and fair’sFixing specific days of a week as a MARKET
DAYS termed as HAAT’SThrough MANDI’S or agri-markets
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Promotional strategy:-
The audio videos must be planned convey a right
message to rural folks. The rich traditional media forms
like street drama, folk dances and puppet shows
should be conducted these are the channels of
marketing with which the rural consumer’s are familiar
and comfortable with.
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RURAL COMMUNICATION AND ADVERTISEMENT:-
Keep the communication simple…(No scope for gimmicks)
Take time in communicating the message (anything quick and short has no impact)
Think in the local language to capture the local spirit in the communication aimed at specific region.
By giving the brands and products an Indian name
By understanding the cultural and social values of the particular rural region and communicate accordingly
Rural consumer’s want value of their money so providing what they want increase the outcomes, they stick to basic functionality
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Demonstration:-
The demonstration may prove a key element to success in rural advertisements as the rural folks don’t suffer shortage time in their day to day life and took a keen interest in the street demonstration of a product it provides a touch and feel concept and a better understanding of the product.
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By keeping the advertisements Indian hiring Indian models bollywood personalities or the faces they are familiar with
Relating it with their religious ethics and belief’sBy developing rural specific products and talking about
a normal common Indian how the product fulfills his need
Providing a glimpse or rural locality whenever possible to the advertisements
By advertising through wall paintings and colourful hording
Associating with INDIAN SPORTS specially with CRICKET
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OPTIMAL PROCEDURE TO SELL YOUR PRODUCT AT RURAL MARKET:-
THINK WISE,ACT SMART
ANALYSE BY CULTURE
PAY ATTENTION
PRICE AND DEDICATION
QUALITY PRODUCT
AFTERSALE SERVICES
CREATE RELAIABILITY
REACH ASAP
HAVE A BRAND IMAGE
REGULAR FEEDBACKS
ENJOY THEIR HAPPINESS
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THANK YOU
HAVE QUERIES, CLEAR THE DOUBTS.