OVER VIEW OF

RURAL
MARKETING
Definition

■ “Rural marketing can be seen as a function

which manages all those activities
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 for them and thereby
achieves the goals of the organization
Evolution of rural
marketing
■ Phase 1 – before mid -1960s
– rural marketing referred to
marketing of rural products in rural
& urban areas & agricultural inputs
in rural markets.
– It was considered synonymous to
agricultural marketing
■ Phase 2 – mid 1960s to mid 1990s
– two separate areas of activities
emerged –marketing of agricultural
inputs
■ Phase 3 - ( 1990’s to 2000)
– Industrial sector gained strength.
– Push to the marketing of consumables
and durable products.
– Saturation of urban Markets.
– Governments pro rural schemes.
Customized offerings for rural markets
– Ex: Project Shakti.
■ Phase IV – After 2000
– HUL, Godrej, Dabur, Marico, ITC
established local connections
– Automobile sector entered this market.
– Insurance companies
 Rural Buyers – Seller
Matrix Seller
Rural Urban
Rural I (RS – RB) II (US – RB)
(Intra Rural) (Urban Seller – Rural
All Products Buyer)
Consumer Goods/
Buyer

Services/ Agro
inputs/ Farm

Urban III (RS – UB) IV (US – UB)

(Rural Seller – Urban (Intra Urban)
Buyer) All Products
Farm and Non-Farm
Few Challenges of Rural
Marketing
■ Agriculture is main source of income.
■ The income is seasonal in nature. It is fluctuating
also as it depends on crop production.
■ Though large, the rural market is geographically
scattered.
■ It shows linguistic, religious and cultural diversities
and economic disparities.
■ The market is undeveloped, as the people who
constitute it still lack adequate purchasing power.
■ It is largely agricultural oriented, with poor
standard of living, low-per capital income, and
socio-cultural backwardness.
■ It exhibits sharper and varied regional preferences
with distinct predilections, habit patterns and
 Then Why Rural
Marketing?

Find out the Importance

of Rural Marketing &
the opportunities that
lie in rural Marketing
Indian villages offer
huge potential to
Marketers !!
■ Reduced Burden on Urban Population:
■ Rapid Economic Growth
■ Employment Generation
■ Improved Living Standards
■ Development of Agro-based Industries
■ Optimum Utilization of Rural Untapped Resources
■ Easy Marketability of Agricultural Produces
■ Improved Rural Infrastructures
■ Price Stability
■ Quality of Life and Reduced Crime
Rural vs Urban
Marketing
■ Income
■ Lifestyle
■ Media Reach
■ Population
■ Expenditure
■ Literacy
■ Segmentation
■ Customer Views
Environmental factors
affecting rural marketing
■ Demographic Env
– Education and the level of Demand
– Household Patterns
■ Family Structure
■ Rural Household Pattern
■ Occupational pattern
■ Physical Env
■ Economic Env
■ Social and cultural Env
■ Political Env
■ Technological Env
Size of Rural Market
■ The number of villages, population, number of households make
up the entire size of rural market.
■ India’s per capita GDP in rural regions has grown at a
Compound Annual Growth Rate (CAGR) of 6.2 per cent
since 2000. The Fast Moving Consumer Goods (FMCG)
sector in rural and semi-urban India is expected to cross
US$ 20 billion mark by 2018 and reach US$ 100 billion by
2025@.
Structure of Rural
Market
■ Consumer Market. Ex: All kinds of Consumables &
Durables.
■ Institutional market. Ex: Agri Inputs (seeds,
fertilizers) , animal feed, tractors, boats etc.
■ Services Market Ex: Banking & Insurance.
Marketing Network in
Rural India
■ Haats (Periodic Markets)
■ Mandis (Agrimarkets)
■ Melas & Exhibitions
■ Public Distribution Shops
■ Bank Branches
■ Post Offices
Retail Shops by India Inc

■ ITC Choupal Sagar

■ DSCL Hariyali Bazar
■ Tata Rallis Kissan Kendra
■ HUL Shakti Stores
■ M&M Shubh Labh Stores
■ Escorts Rural Stores