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Chapter I

Chapter I. Rural Marketing: A Conceptual Framework. Learning objectives of this chapter:. Conceptual clarity about fundamental Rural Marketing concepts: Rural and Rural Marketing. Learn about evolution of Rural Marketing in India

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Chapter I

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  1. Chapter I Rural Marketing: A Conceptual Framework

  2. Learning objectives of this chapter: • Conceptual clarity about fundamental Rural Marketing concepts: Rural and Rural Marketing. • Learn about evolution of Rural Marketing in India • Comprehend the Rural Marketing process as Rural Marketing Model • Comparative analysis of Rural vs. Urban Marketing

  3. Rural • Census of India (2001), defines rural as, that what is not urban. • Urban is: All locations with a municipality/ corporation, cantonment board or a notified town area committee. All other locations satisfying all the following Criteria: a) Minimum population of 5,000. b) At least 75 percent of male workforce engaged in non-agricultural activities and c) Population density of over 400 persons per sq km

  4. Definition of Rural by Marketing World • Most FMCG and Agri-input companies define rural as a place with the population up to 20,000. • Consumer Durable companies consider any town with population below 50,000 as a rural. • Some MNCs define rural/semi urban area as all cities other than seven metros. • Rural in marketing parlance is also defined as an area, which begins where the controllable distribution and media reach ends.

  5. Rural Urban Continuum • Customers in India have also been divided into three broad groups in terms of geography and sociological characteristics (Jha, 2003): a) Urban b) Rural c) Rurban • Rurban being the overlap between the two, with pretensions to being closer to urban in physical features and proximity to large urban centers, but with deep rural sociological moorings.

  6. Rural Marketing • Planning and implementation of marketing function for the rural areas. • It is a two way marketing process, which encompasses the performance of business activities that direct the flow of goods from urban to rural areas (for manufactured goods) and vice-versa (for agriculture produce) and also within the rural areas (Gopalaswamy, 2005).

  7. Rural Marketing It is a distinct specialization of marketing discipline, which encompasses customized application of marketing tools and strategies to understand the psyche of rural consumer in terms of needs, tailoring the products to meet such needs and effectively delivering them to enable profitable exchange of goods and services to and from the rural market.

  8. Rural Marketing Scope: Flow of Goods and Services (Mithileshwar, 2003)

  9. Phased Evolution of Rural Marketing

  10. Rural Marketing Model Research Segment rural market Study lifestyle of rural population of different segments region Develop profile of rural consumers of different market segments Define and prioritize their needs in general terms Develop specific need profile for a product category in that region Select target markets Develop/Modify Marketing Mix Implementation Control

  11. Factors Differentiating Rural Marketing from Urban Marketing

  12. Factors Differentiating Rural Marketing from Urban Marketing

  13. Summary: Points to Ponder • Rural is a distinct type of market and is not just a poor extension of the urban areas. Apart from income there are host of infrastructural and socio-cultural factors that differentiate the rural from urban market. • Rural cannot be tapped effectively with an urban mindset. It requires a distinct approach and thorough understanding of the rural markets. • There is no single definition of rural that suits all the stakeholders operating in the rural market.

  14. Summary: Points to Ponder • Rural Marketing is a distinct specialization of marketing discipline, which encompasses customized application of marketing tools and strategies to understand the psyche of rural consumer in terms of needs, tailoring the products to meet such needs and effectively delivering them to enable profitable exchange of goods and services to and from the rural market. • Understanding of lifestyle and developing a generic profile of rural consumers in a particular segment of rural market is of utmost importance along with the income of the rural consumer in order to select or reject it as target market. Income alone should not be used as basis for making a target market decision.

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