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Rural Marketing
Rahul Sayal
MBA I (D)
5804
MARKETING
The Chartered Institute of Marketing defines marketing as “The
management process responsible for identifying, anticipating and
satisfying customer requirements profitably”.
Marketing is defined by the American Marketing Association “as the
activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large.”
Professor E. Jerome McCarthy, at the Michigan
State University in the early 1960s, suggested
that the Marketing contained 4 elements:
The Four P`s
Product
Price
Placement
Promotion

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This document provides an overview of rural marketing in India. It discusses the evolution of rural marketing, characteristics of rural markets and consumers, potential and challenges. Some key points: 1) Rural marketing has evolved from agricultural marketing to include marketing of consumer goods and services to rural areas. 2) Rural markets are large but scattered, with low literacy and income levels compared to urban areas. 3) The rural consumer market potential is large due to population size, rising incomes, and government initiatives. However, challenges include low purchasing power and infrastructure issues. 4) Strategies to succeed in rural markets include understanding rural needs, distribution through local channels, and communication in local languages. Some companies that have achieved success

Rural marketing potential in india
Rural marketing potential in indiaRural marketing potential in india
Rural marketing potential in india

742 million Indians constituting 138 million households reside in 6, 38,365 villages (Census, 2001). the size of rural market itself speaks of its potential.The current marketing environment and economic scenario have brought the corporate under contemporary roofs of modern India, which is challenging the current standards of segmenting, targeting and reaching the customers. Realistically, India as a nation has come a long way from the place where only urban population which constitutes 20 per cent of customer base for companies are responsible for 80 per cent of their profits. Also rural markets have acquired significance, as the overall growth of economy has resulted into substantial increase in the purchasing power of the rural communities. A survey by India's premier economic research entity, National Council for Applied Economic Research (NCAER) indicates that rise in rural incomes is keeping pace with the rise in urban incomes.

market analysismarket sizemarketing
Rural marketing mod 3 rural marketing of fmcg's
Rural marketing mod 3  rural marketing of fmcg's Rural marketing mod 3  rural marketing of fmcg's
Rural marketing mod 3 rural marketing of fmcg's

This document discusses rural marketing of fast-moving consumer goods (FMCG) in India. It notes that the Indian FMCG industry is the fourth largest in India and is estimated to grow to $74 billion by 2018. It faces several challenges in rural areas, including poor transportation infrastructure, lack of warehousing, high packaging costs, low literacy rates, and seasonal demand. However, some companies have found success through products tailored to rural needs, such as low-voltage TVs and hand-cranked radios. Overall, rural marketing in India offers growth opportunities for FMCG companies but requires an understanding of rural consumers' characteristics and challenges.

modelmarketingsmall business
THE MARKETING ENVIORNMENT
MICRO ENVIORNMENT
 A firm's micro-environment spans:
 Customers/Consumers
 Employees
 Suppliers
MACRO ENVIORNMENT
 A common method of assessing a firm's macro-environment is via
 P- POLITICAL
 E- ECONOMIC
 S- SOCIAL
 T- TECHNOLOGICAL
 L- LEGAL
 E- ECOLOGICAL
RURAL
Sparsely populated area outside of the limits of a
city or town or a designated commercial, industrial
and residential centre.
Rural areas are characterized by farms, vegetation,
and open areas.
RURAL MARKETING
Rural Markets are defined as those segments of overall
market of any economy, which are distinct from the
other types of markets like Stock market, Commodity
markets or Labour economics.
Selling in Rural India
Opportunity
The Indian rural market with its vast size and demand
base offers a huge opportunity that MNCs cannot afford
to ignore. With 128 million households, the rural
population is nearly three times the urban.

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rural marketing and agricultural marketingindian rural marketingrural marketing strategies
Rural marketing
Rural marketing Rural marketing
Rural marketing

I am glad to share my views on Rural Marketing and it’s opportunities and challenges. - Ravi Guntaka

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Business environment is different at different places. With this presentation you'll come to know differences between urban and rural business environments.

business
The 4A Approach
 Availability
 Because of the poor state of roads, it is greater challenge to regularly
reach products to the far-flung villages.
 Affordability
 Godrej introduced three brands of Cinthol, Fair Glow and Godrej in
50-gm packs, priced at Rs. 4-5.
 Acceptability
 LG Electronics developed a customised TV for the rural market and
named it Sampoorna.
 Awareness
 Coca-Cola uses a combination of TV, cinema and radio to reach 53.6
per cent of rural households.
STRATEGIES OF FMCG COMPANIES
IN RURAL AREAS
The e-Choupal model has been specifically designed to
tackle the challenges posed by the unique features of
Indian agriculture, characterised by fragmented farms,
weak infrastructure and the involvement of numerous
intermediaries, among others.
E-Choupal (Launched in June 2000)
ITC Limited has established computers and Internet access
in rural areas across several agricultural regions of the
country, where the farmers can directly negotiate the sale
of their produce with ITC Limited.
Rural Marketing
Main Challenges Involved in Rural
Marketing
 Convincing the rural customer.
 Promotion of products in their regional
language.
 Lack of Infrastructure Facilities
 Low Levels of Literacy and awareness.
 Lack of knowledge in usage of advanced
products.

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The document provides a brief profile of rural India, highlighting that around 75% of India's population lives in rural villages. It notes that rural India is heterogeneous with many ethnic groups and languages. Around 55% of rural income comes from agriculture. Infrastructure in rural areas lags urban areas, with only around half of rural households having access to electricity. Literacy rates have risen in rural areas but education levels remain lower than in urban centers on average.

ruralmarketindia
Indian rural market (potentital or paradox)
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Rural India has seen significant growth in connectivity and access to services like cellular networks, satellite TV, internet kiosks, radio, and community radio channels, allowing more effective communication. The rural population also has substantial purchasing power, estimated at over 1 trillion rupees annually. Many companies have launched products, campaigns, and initiatives targeted at rural consumers, focusing on affordability and local needs. These include low-cost smartphones, TVs, appliances, and financial products. Experts say that future growth lies in properly recognizing rural populations as valuable customer markets.

rural marketingrural brandingmarketing and advertising
CORPORATES INTEREST IN RURAL
MARKETING
When rural customers discover the new and
exiting choice of brands available in urban
markets, a demand for these brands is created
in rural areas. When Titan found rural
consumers purchasing their Sonata brand of
quartz watches, they formulated a marketing
strategy tailored to the requirement of the
large rural market.
Growing Importance Of Rural Markets
Hindustan Motors (HM) launched a utility vehicle the
RTV (Rural Transport Vehicle), aimed at the rural
market. One way of meeting the intense competition in
the passenger car segment by HM is through increased
efforts in rural markets. It has over 40% of this rural
market, exploiting the low prices, reliability and time
tested rugged aspect of the Ambassador brand.
COMPETITION IN RURAL MARKET
• Competition in rural markets is varied in nature and a
marketer faces competition not only from other
brands but also from substitutes, especially in places
where the product is new to the consumer.
• Such situations are quite common in rural markets.
Competition for existing brands can be from other
brands, from new player’s small unorganized sectors,
duplicates and imitation.
• The task for a new player entering in the market is
difficult given the advantage that entrenched brands
have in rural markets.
Perspective Role and Contribution of
Information Technology in Rural Markets in India
With the changing patterns of Rural Market, the
role of I.T. has increased from providing only the
Networks to set-up the basis of updated
technological programs in the rural area.
In Rural India, Government has already provided
Info-kiosks (a rural version of cyber café) which
provide basic communication facilities like
internet connection and telecommunication
services.

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This document discusses rural marketing in India. It defines rural marketing and notes that villages make a high contribution to national income mainly through agriculture and related occupations. It outlines several key features of rural Indian markets including traditional customer attitudes, cultural diversity, low incomes, vast scattered markets, seasonal demand, and traditional lifestyles. Infrastructure is also noted to be less developed. Potentials for rural marketing include a growing population, rising literacy and prosperity, changing lifestyles and consumption patterns, and increasing demand for branded products. Overall the document provides an overview of characteristics and opportunities in India's large rural marketing sector.

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The document summarizes a rural marketing study conducted in the village of Daruthenga, India. It describes the village's population, infrastructure, and retail landscape. Several large FMCG companies have a presence in Daruthenga, selling products through kirana shops and distribution channels connected to urban markets. The document also discusses characteristics of rural consumers, including brand loyalty and the influence of local reference groups on purchase decisions.

Some of the programs run by the government in
different areas of rural sector are:
 E-Mitra
 Wi-Fi Projects
 Drishtee
 Gyandoot
 TARAhaat
 O TARABazar (for product information)
 O TARAdhaba (for providing connectivity)
 O TARAdak (connect to relatives at distance)
 O TARAgyan (educate rural youth on various issues)
 O TARAguru (helps in mentoring and consultancy)
 O TARAvan (delivery of orders at remote areas)
Continue……..
 Rural e-seva
 Bhoomi
 e-choupal
 Aksh
 n-Logue
INCLINATION OF SECTORS TOWARDS
RURAL INDIA
FMCG
Insurance
Retail
Automobiles
Pharmaceuticals
Consumer Durables
STRATEGIES FOR IMPROVING
MARKETING WITHIN RURAL AREAS
• Product Strategies
• Small unit and low priced packing
• New product designs
• Sturdy products
• Brand name
• Pricing Strategies
• Distribution Strategies
• Promotion Strategies

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this is about the tremendous oppurtunities and challenges that rural india brings for the marketers of today.

challenges and opportunities of rural market
 challenges and opportunities of rural market challenges and opportunities of rural market
challenges and opportunities of rural market

- 70% of India's population lives in rural areas, representing a large potential market. However, rural markets face several challenges including lack of infrastructure, low literacy rates, seasonal incomes, cultural differences, and difficulties with distribution and media access. - Some opportunities in rural markets include improving infrastructure, rising literacy rates due to government programs, increased access to credit and communication technologies, and a decline in poverty levels. - Marketers must understand the uniqueness of rural areas to effectively tap into the large rural consumer base in India despite the challenges. With innovative marketing strategies tailored to rural needs, substantial growth can be achieved.

ranu
CONCLUSION
The face of Indian rural market can be
transformed only with the deployment
of I.T. I.T. enabled services are growing
at a fast rate and are providing several
services to rural people with the
common motive of having increase in
the connectivity and thus creation of
bigger market in the rural areas.
A LAST WORD
This is just the tip of the iceberg.
Rural marketing is at its infancy and is
advancing by leaps and bounds.
So stay tuned… and stay ahead of your
competitor.
YOU
QUERY???

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Rural Marketing

  • 2. Rahul Sayal MBA I (D) 5804
  • 3. MARKETING The Chartered Institute of Marketing defines marketing as “The management process responsible for identifying, anticipating and satisfying customer requirements profitably”. Marketing is defined by the American Marketing Association “as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
  • 4. Professor E. Jerome McCarthy, at the Michigan State University in the early 1960s, suggested that the Marketing contained 4 elements: The Four P`s Product Price Placement Promotion
  • 5. THE MARKETING ENVIORNMENT MICRO ENVIORNMENT  A firm's micro-environment spans:  Customers/Consumers  Employees  Suppliers MACRO ENVIORNMENT  A common method of assessing a firm's macro-environment is via  P- POLITICAL  E- ECONOMIC  S- SOCIAL  T- TECHNOLOGICAL  L- LEGAL  E- ECOLOGICAL
  • 6. RURAL Sparsely populated area outside of the limits of a city or town or a designated commercial, industrial and residential centre. Rural areas are characterized by farms, vegetation, and open areas.
  • 7. RURAL MARKETING Rural Markets are defined as those segments of overall market of any economy, which are distinct from the other types of markets like Stock market, Commodity markets or Labour economics.
  • 8. Selling in Rural India Opportunity The Indian rural market with its vast size and demand base offers a huge opportunity that MNCs cannot afford to ignore. With 128 million households, the rural population is nearly three times the urban.
  • 9. The 4A Approach  Availability  Because of the poor state of roads, it is greater challenge to regularly reach products to the far-flung villages.  Affordability  Godrej introduced three brands of Cinthol, Fair Glow and Godrej in 50-gm packs, priced at Rs. 4-5.  Acceptability  LG Electronics developed a customised TV for the rural market and named it Sampoorna.  Awareness  Coca-Cola uses a combination of TV, cinema and radio to reach 53.6 per cent of rural households.
  • 10. STRATEGIES OF FMCG COMPANIES IN RURAL AREAS The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture, characterised by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others. E-Choupal (Launched in June 2000) ITC Limited has established computers and Internet access in rural areas across several agricultural regions of the country, where the farmers can directly negotiate the sale of their produce with ITC Limited.
  • 12. Main Challenges Involved in Rural Marketing  Convincing the rural customer.  Promotion of products in their regional language.  Lack of Infrastructure Facilities  Low Levels of Literacy and awareness.  Lack of knowledge in usage of advanced products.
  • 13. CORPORATES INTEREST IN RURAL MARKETING When rural customers discover the new and exiting choice of brands available in urban markets, a demand for these brands is created in rural areas. When Titan found rural consumers purchasing their Sonata brand of quartz watches, they formulated a marketing strategy tailored to the requirement of the large rural market.
  • 14. Growing Importance Of Rural Markets Hindustan Motors (HM) launched a utility vehicle the RTV (Rural Transport Vehicle), aimed at the rural market. One way of meeting the intense competition in the passenger car segment by HM is through increased efforts in rural markets. It has over 40% of this rural market, exploiting the low prices, reliability and time tested rugged aspect of the Ambassador brand.
  • 15. COMPETITION IN RURAL MARKET • Competition in rural markets is varied in nature and a marketer faces competition not only from other brands but also from substitutes, especially in places where the product is new to the consumer. • Such situations are quite common in rural markets. Competition for existing brands can be from other brands, from new player’s small unorganized sectors, duplicates and imitation. • The task for a new player entering in the market is difficult given the advantage that entrenched brands have in rural markets.
  • 16. Perspective Role and Contribution of Information Technology in Rural Markets in India With the changing patterns of Rural Market, the role of I.T. has increased from providing only the Networks to set-up the basis of updated technological programs in the rural area. In Rural India, Government has already provided Info-kiosks (a rural version of cyber café) which provide basic communication facilities like internet connection and telecommunication services.
  • 17. Some of the programs run by the government in different areas of rural sector are:  E-Mitra  Wi-Fi Projects  Drishtee  Gyandoot  TARAhaat  O TARABazar (for product information)  O TARAdhaba (for providing connectivity)  O TARAdak (connect to relatives at distance)  O TARAgyan (educate rural youth on various issues)  O TARAguru (helps in mentoring and consultancy)  O TARAvan (delivery of orders at remote areas)
  • 18. Continue……..  Rural e-seva  Bhoomi  e-choupal  Aksh  n-Logue
  • 19. INCLINATION OF SECTORS TOWARDS RURAL INDIA FMCG Insurance Retail Automobiles Pharmaceuticals Consumer Durables
  • 20. STRATEGIES FOR IMPROVING MARKETING WITHIN RURAL AREAS • Product Strategies • Small unit and low priced packing • New product designs • Sturdy products • Brand name • Pricing Strategies • Distribution Strategies • Promotion Strategies
  • 21. CONCLUSION The face of Indian rural market can be transformed only with the deployment of I.T. I.T. enabled services are growing at a fast rate and are providing several services to rural people with the common motive of having increase in the connectivity and thus creation of bigger market in the rural areas.
  • 22. A LAST WORD This is just the tip of the iceberg. Rural marketing is at its infancy and is advancing by leaps and bounds. So stay tuned… and stay ahead of your competitor.
  • 23. YOU