Rural marketing in the process of producing, pricing, promoting, distributing of rural products and services leading to exchange between rural and urban market which satisfies the customer’s demand and achieves organisational objectives.
Rural marketing is large diverce in India and scattered into a number of regions. Major income of rural marketing is from agriculture. Rural marketing is the process of selling of rural products in rural and urban areas. Mainly agricultural Products like food, grain, industrial inputs like cotton, oil seeds etc play an important role in the ruler marketing.
There are some characteristics of rural marketing :-
1. In the rural marketing, agriculture is the main source of income.
2. The income of rural marketing is seasonal, it fluctuate depend on the crop production.
3. Rural marketing is large diverse and geographically scattered.
4. Rural marketing shows religious, culture, linguistic, traditional and economic disparities.
5. Rural marketing is underdeveloped because the people who contribute still lack adequate purchasing power.
6. Rural marketing is mainly agricultural oriented with average standard of living, low per capita income and socio cultural backwardness.
7. Rural develop slowly and have a traditional outlook.
What is rural marketing ?
India is a place of diversity and about 70% of the population lives in the rural area. These rural area contribute in the economic development of the nation through the production of food grains, vegetables, spices etc. Export of this agricultural Products result in the growth of capital. So they produce, distribute, set the price of product and sell this products to rural and urban areas.
The rural marketing strategy is based on 3A, Availability, Accessibility and Affordability. Availability is about the status of distribution system of products, Accessibility is about the pricing technique which is based on the customer’s standard of living and Affordability is about emphasis on the customer’s willingness to purchase the products and services from the market.
There are some roadblocks, that makes difficulties to progress in the rural market. Marketers encounters a number of difficulties like dealing with distribution, proper and efficient deployment of sales and effective marketing communication when they enter in the rural market.
Classification of rural market
1. Consumer market
2. Industrial market
3. Service market
1. Consumer market
It involves household products, good grains, cosmetics, textile, garments, toiletries etc. example TV, bicycle, kitchen appliances, furniture, machine etc.
2. Industry Industry
It involves agricultural and allied activities such as poultry, dairy, livestock, fisheries, cottage industries, tractors, harvester etc.
3. Service market
It involves offices, repairs, banking credit educational, power, communication, healthcare, transport etc
Importance of rural marketing
1. It reduced the burden on urban population. People can live in village because there is all good and services available in rural area.
2. Rapid economic growth because there exist more business opportunity in rural area.
3. Rural marketing large depends on the agriculture and it contributes about 50% of the total national income.
4. Rural marketing is very important because it generate employment in the village areas. About 60% of the population in India field on agricultural activities. It leads to increase the business operation activities and services that generating a lot of employment opportunities.
5. It Improving the living standard in the rural area due to the improvement in infrastructure, availability of goods and services, these all aspects directly increasing the standard of living.
6. Development of agro based industries in the country.
7. Optimum utilization of rural untapped resources that can further accelerate economic growth.
8. Easy marketability of agricultural Products in the rural market.
9. Price is stable in the rural market.
10. Better quality product at reasonable price has positive impact in the village area.
Significance of Rural Market
1. Increase in population, increase in demand. The rural population is 43.80 crores in 1971 which has been increased to 50.20 crore in 1981 and in 2001, the population has been increased to 66 crore.
2. Increase in the rural income due to agricultural products.
3. Large inflow of investment for rural development programmes from the government.
4. Increase the communication and contact of rural people with the urban people.
5. Increase the in literacy and education has in improving.
6. Inflow of foreign exchange and foreign made goods in rural marketing.
7. There is change in the land texture system, structural change and change in the buying behavior.
Factors which makes a change in the rural market
1. Green revolution :- Green revolution has helped in improving agricultural productivity, adaptation of new agronomic cultivation techniques, multiple cropping introduction of some cash crop and allied activities such as poultry, diary etc has helped in increasing income of rural market because of this, about 75% of rural area in India have been electrified, there is also shift to irrigation system from the rain dependence, farmers getting high income and return from their products.
2. Rural communication :- Now a days internet have played the most important role for the growth of rural market. There are some companies like BSNL, airtel, jio etc. have given attention on villages for expansion of network. These facilities has helped and opened the door for farmers to use latest technologies. Now it’s time to online marketing where customer can buy products from the net. There are also social networking sites have been provided as platform for sales promotion. Half of rural people are connected by all weather road and net.
3. Bio-technology :- Bio-technology has a vital role in the enhancement of agriculture yield. Application of bio-technology in agriculture will increase the good seed quality and cropping.
4. Development programmes :- Intensive Agricultural District Programme (IADP), Intensive Agriculture Area Programme (IAAP), High Yielding Variety Programme (HYVP), Drought Prone Area Programme (DPAP), Small Farmers Development Agencies, Integrated Rural Development Programme (IRDP) are some programs in India which help to improve and develop the rural marketing.
Problems in rural marketing
There are some problems in rural marketing :-
1. Transportation :- Transportation is an important aspect in the marketing. The transportation facilities in the rural marketing is very poor and due to this problem most of the rural area are not accessible to marketing.
2. Availability of appropriate media :- It has seen that all organized media in the India put together can reach only 30% of the rural population. Print media occupy 18% of the rural population, TV is not available to every rural area which is actually an ideal medium for communication with the rural population.
3. Warehousing :- Storage facilities in the rural marketing is not so good. In the rural marketing, the production and consumption cycle rearly match. There are many agricultural products which produced seasonally and hence warehousing is important for the storage.
4. Village structure :- In India the village structure itself causes many problems. There are some villages which is small, about 60% of the village have less than 1000 population and it increased distribution cost and it also affect the economic viability.
5. Inadequate banking facilities :- There is inadequate banking and credit facility in the rural market. Distribution is not proper due to the lack of banking and credit facilities. The rural outlet needs banking support to enable remittances, to facilitate credit to get replenishment of stocks.
There are some retailers in the rural market who are unable to carry optimum stock in the absence of adequate credit facilities and because of this they are unable to offer credit to the consumer. This type of inadequate banking and credit facilities leads to low marketing in rural areas.
6. Branding :- Now a days, the national brand are getting popular and local brand are also play an important role in rural area, there is high dissatisfaction among the rural consumer with the product and services his because of branding.
7. Packaging :- Packaging is also concerned, size of package labelling on the package are the factors which is the problem in rural marketing, the lower income group consumers are not able to purchase good package.
Differences between Urban marketing and Rural marketing
• Environment difference
Urban environment is largest contiguous settlement units of town, high infrastructural level like roads, electricity, high density of population per square kilometre, good physical connectivity and high mobility but in the rural market, the environment is a small continuous, low infrastructure level, low density of population per square kilometre per, poor physical connectivity and poor mobility.
• Social relationship
In the Urban markets, social dynamic represent a more liberated, large number of interaction with one another, caste influence indirect but in rural market the social dynamic represent less liberated, less number of interaction between the people, caste influence direct in the rural market.
• Exposure to market
Urban markets are in good position, they have better exposure to marketing, they have high product exposure to branded product, more convenient buying, high market reach and availability of high range of product but in the Rural market, their position of market is poor, they have not exposure to marketing, they have low product exposure, not branded products, less convenient buying, less marketing reach and availability of products is less.
• Dependency on Nature
In the urban marketing the dependency on Nature is less, more dependency on employment but in the Rural market, the dependency on Nature is more, they do not dependent more on employment, their main income is from natural resources.
In the urban marketing, the incomes and employment is more stable and permanent, the frequency of income is at regular interval but in the Rural marketing, the income and employment is not stable and permanent and the frequency of income is not regular it fluctuate every time according to the season.