GOVT MAM PG

COLLEGE JAMMU
RURAL AND URBAN
MARKET
 Definition Of Markets

Rural Marketing-

Rural marketing involves the process of

developing, pricing, promoting, distributing rural specific product and a service
leading to exchange between rural and urban market which satisfies consumer
demand and also achieves organizational objectives.

Urban Marketing-

Urban is fully integrated firm which present comprehensive level of

services, offering pre- development guiding , branding , marketing and the most
effective sales agents in the area.
Difference Between Rural And Urban

Population

Standards of living
Wide economic gap
New product awareness
Education
Electrified
Channel of communication
Channel of distribution
 The Rural And Urban Consumer
A Detailed Profile

Size of Rural and urban Consumer Group

Rural population is about 73% and urban population is 27% of the
total population of India

A Scattered market the comparison below shows the same –

* Urban Population is spread over 3,200 cities

* Rural population is spread across 5,70,000 villages

 Reasons For Selecting Market
Rural Marketing-

Size of the market

Largely Untapped

Income on the rise/disposable income

Income from other than agriculture

Income flow from urban /abroad

Great success stories of some famous companies-

Asian Paints 60%
Dabur 40%
Videocon 40%
Colgate 50%
 Urban Market-
Large number of customer

Awareness about the product

Effective distribution channel

Rise to competition

Source of new ideas.

Great success stories of some famous companies-

Future group 80%

D’Mart 65%

Globus 59%
4 P’s Of Market

Product
Place

Urban
+
Rural

Price Promotion
 Marketing Strategies

Rural and urban marketing

Marketing Distribution Promotion

strategies strategies strategies

Personal Direct Feeder Near Familiar All types

selling selling town market shows of media
 Urban Vs. Rural Status

TOTAL % SEX LITERACY

PPLTN. PPLTN. RATIO
(MLN) GROWTH
RATE %
RURAL 318.74 1.79 916.44 55.61

URBAN 248.17 1.48 927.78 72.58

 Occupation of Head of Household
(IN %)
Urban Rural All
 Housewife 0.84 1.01 0.96
 Cultivator 3.45 40.86 29.99
 Wage earner 20.93 35.28 31.22
 Salary earner 40.72 11.28 19.84
 Professional 3.59 0.73 1.56
 Artisan 6.90 3.41 4.42
 Petty shopkeeper 16.05 4.97 8.19
 Businessman 3.68 0.46 1.40
 Others 3.85 1.98 2.52
 Total 100.00 1 00.00 100.00
(Source: NCAER, 2003)
 Rural Vs Urban Marketing

No Aspects Urban rural

1. philosophy Marketing & Social Development &

concept Relationship marketing

2. Market high low

Demand

3. Competition organized sector Unorganized sector

4. Literacy High Low

5. Income High Low

6. Needs High level Low level

7. Adoption Faster Slow

8. Product High Low

a) Awareness

b)Concept Known Unknown

c)Quality Good Moderate

9. Price Yes Very much

a)Sensitive
b)level desired Medium-high Medium-low

10. Transportation Good Average

11. Advertising Print, audio TV, Radio, print

visual, outdoors. media in many
etc languages
12. Personal selling Door-to door, Occasionally
frequently
 Income Distribution (Million population)

2001-02 2009-10
400 400
352
305
312 288 272
300 300

200 153 200 170

130
90 79
100 41 100
17
0 0 2001-
Low Lowermiddle Middlehigh Low
02 Lowermiddle Middlehigh
Rural Urban Rural Urban
 Analysis Of Markets

The annual consumer durable market for products like colour

t.v’s,washing machines, refrigerators and air conditioners is growing
at 7-10 %.

While the rural market is zooming at 25 % .

HAVE A LOOK…..

F.m.c.g – Rs.65000 crores (53 % share in total revenues)

Rs.5000 cr.for agri inputs.

50 % of India’s national income is generated in rural India.
HLL,Colgate Palmolive ,Toyato – 50 % revenues coming from rural
and 50% from urban area.

Hero Honda- 40 % from rural and 60% urban area.

Kinetic motors – 30 % from rural and remaining from urban area.

Godrej- 30% from rural70% from urban sector.
Challenges
Rural Marketing

Traditional Life.

Transportation.

Literacy.

Promotion and Marketing Communication.

Urban marketing

urban market flooded with low demand.

High degree of competition.

large expenses.
 Conclusion
Thus, looking at the challenges and the opportunities, of both
the markets, it can be said that the future is very promising for those
who can understand the dynamics of rural markets and exploit them
to their best advantage. A radical change in attitudes of marketers
towards the vibrant and burgeoning rural markets is called for, so
they can successfully impress on the 230 million rural consumers
spread over approximately six hundred thousand villages in rural

India. So we can say that “RURAL MARKETING IS A REAL

MARKETING”
Thank You!!!!
Questions ????