Scope and over view of Rural Markting
- 1. Lecture-1 Prof. S. S. Budhwar SriSIIM, New Delhi 1
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- 3. Contents Challenges in Rural Marketing Potential for Rural Market in India Rural Consumer Characteristics of rural market Evolution of Rural Marketing Introduction
- 4. Definition: Rural marketing is the process of developing, pricing, promoting, distributing rural specific goods and services leading to exchanges between urban and rural markets which satisfies consumer demand and also achieves organisational objectives. 4
- 5. 55 Rural marketing excludes Quadrant ‘4’, i.e Urban to Urban and could include quadrant 1,2,3. Rural to Rural is relatively simple exchange management process. The products made and sold in rural areas are milk and milk products, locally manufactured tooth powder, cloth, etc. Rural RuralUrban Urban 1 2 3 4
- 6. A simple method of differentiating rural and urban areas is to examine the notification of settlements as by the concerned state Governments. The advantage of this method is simplicity. The drawback of this is that notification always does not reflect the nature of settlement. The constitution amendment in 1993 requires the state Governments to notify the settlements as Rural or Urban.
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- 8. About 70 per cent Indians live in rural areas: Census report 2011. Nearly 70 per cent of the country’s population lives in rural areas where, for the first time since independence, the overall growth rate of population has sharply declined, according to the latest Census. Of the 121 crore Indians, 83.3 crore live in rural areas while 37.7 crore stay in urban areas, said the Census of India’s 2011. 8
- 9. CHARACTERISTICS Large Population According to 2011 census, Rural Population constitutes about 70% of Indian Population. Year Rural Population 1901 89 percent 1951 83 percent 1971 80 percent 1981 76 percent 1991 74 percent 2001 73 percent 2011 70 percent In 2010 70 percent 9
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Editor's Notes
- #2: Lecture-1 Prof. S.S.Budhwar.
- #3: Scope and overview of Rural Marketing. Evolution Characteristics of Rural marketing.
- #5: Fast pace of technological advancement has revolutionized almost every sphere of social, economic, political and cultural life all across the world. Consequent drastic changes are visible in the way we produce, reduce costs, distribute the produced goods, and expect higher profits. The focus is on tapping the unexplored markets. Liberalization of trade restrictions, and deregulation of domestic capital markets has further intensified competition. Urban markets have saturated. This led to force the companies to redesign their marketing strategies, and look to rural markets for expansion.
- #6: It is convenient to classify transactions as flow of products or services between rural and Urban locations In Fig 1.1, the rural and Urban Locations from which the product originates is indicated on the Vertical Axis, where as the location where product is sold is indicated on the Horizontal Axis.
- #7: The definition of rural marketing based on “flows” between rural and Urban locations require defining Rural areas.