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Demographic environment Physical environment Economic environment Social and cultural environment Political environment Technological environment

Demographical Environment
There is a increase in people living in rural areas. Growth in population does not the growth of market. Largest age group that shapes the market environment and their age group is 20 35

Physical Environment
Social interaction is a mix of rural & urban Economy of these small towns is connected to the rural area though agriculture is not the primary occupation.

Economic Environment
Rural per capita is increasing and it is the evident to the fact that the distribution of households in different income classes is getting thinner at the lower income classes and thicker on the other side Increased incomes also changes the expenditure pattern.

Socio and Cultural Environment

Varies between regions and sub regions Though the villages and towns complement each other for their existence, Urban tends to dominate.

Political Environment
Panchayat and village officers were representing the rural India. Dominated largely by the upper castes Ensures participation of villagers in electing their representatives to the panchayat and also its functioning in order to make them politically aware and active.

Technological Environment
Green revolution in agriculture sector White revolution in the dairy sector Introduction of non government agencies in the development sector.


Transportation Communication Availability of appropriate media Warehousing Village structure in India

Rural markets and sales management Market segmentation in rural markets Branding Packaging


Geographical Segmentation Demographic Segmentation Socio Economic Segmentation Psychographic characteristics Behavioral Segmentation

Geographical Segmentation
Usual & popular basis of segmentation Distinction of urban and rural markets are of greater importance. Made based on variables like zone/regions, states, districts, towns & villages Includes states and union territories by population and climate

Demographic Segmentation
Next commonly used segmentation Includes factors like gender age marital status etc.,are used either single or in combination.

Socio Economic Characteristics

Includes income occupation education etc.,

Psychographic Characteristics
Includes the personality and life style of the people.

Behavioral Segmentation
Buyers are divided into groups based on their knowledge and attitude towards product. Its variables are, occasions, benefits, user status, loyalty, buyer readiness stage etc.,

Fundamentally different from their urban counterparts Urban entire family is involved in the buying process, and individual buying decision Rural because of lack of mobility among women, men make the purchase decision, sometimes community buying decision is quite common.


The Affluent Group: They are cash rich farmers and a very few in number. They have affordability but not form a demand base large enough for marketing firms to depend on. Wheat farmers in Punjab and rice merchants of Andhra Pradesh fall in this group.

The Middle Class: This is one of the largest segments for manufactured goods and is fast expanding. Farmers cultivating sugar cane in UP and Karnataka fall in this category.

The Poor: This constitutes a huge segment. Purchasing power is less, but strength is more. They receive the grants from government and reap the benefits of many such schemes and may move towards the middleclass. The farmers of Bihar and Orissa fall under this category.


Age and stages of life cycle Occupation and income Economic circumstances Lifestyle Personality and self concept Personality and psychological factors Perception and brand belief Information search and pre purchase evaluation


Purchase of product and services and their forms and nature is influenced by age and lifecycle stages of the consumer. Product and services at different stage may differ between urban and rural.


Range of goods and services bought by a consumer is influenced by occupation and income of the individual. The buying behaviour and choice of product cannot be expected same from a cultivator, salary earner, petty shopkeeper,all of whom have a identical incomes.

Apart from income consumer behavior is also guided by the working status of the earning member of the family. Major purchase decision will be taken by the head of the household by the family. Data which are collected on occupational pattern provides the result that there is a decline in farmers and increase in other sectors.

Purchasing power of individual plays a vital role in the choice of the product.

Deals with everyday behaviorally oriented facets of consumers. It also includes values ,feelings, attitudes, interests and opinions. Vast distance exists among rural and urban consumers. Its due to the difference in the social and cultural environment, values, and daily mode

the typical lifestyle dimensions are : Activities,Interest,opinions,Demographics. These differs to rural to urban context.


Sum total of unique individual characteristics. Self concept is the way we perceive ourselves in the social framework. There is a natural tendency to buy those products that one thinks that it will fit to its personality.


The rural consumer unlike his urban counterpart is quite content to satisfy their basic needs relevant to his environment. Though high in self esteem ,they are quite content with their everyday life maslows model : urban covers 5 or atleast 4 segment, rural stay at lower 2 segments for all his life style.