Rural marketing features. What is the importance of rural marketing? 2019-02-23
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State-to-State Variation in Extent of Development: There is also a great deal of difference between different states in extent of development. Popular bath soaps, it is more than 50 per cent and in batteries, it is more than 56 per cent. Features are extras to a product, which are of value to the buyers. There exists more attractive business opportunities in rural than urban. Reluctance Most rural families are reluctant to buy consumer durable items because they have the mindset that they will not be able to use them. They are less concerned with product services associated with products like after-sales services, guarantee and warrantee, home delivery, and other similar services. Low standard of living: Rural consumer have low standard of living because of low literacy, low per capita income and social backwardness.
Difference Between Rural Marketing & Urban Marketing
They prefer family-used products than personal- used products. Employment Generation: At present, nearly 70% of total Indian population feeds on agricultural activities in rural areas. This paper is therefore an attempt to understand opportunities, challenges and strategies in the rural market. Nature and Characteristics of Rural Market There is a saying that the proof of the pudding lies in eating it, like this the proof of all production lies in consumption or marketing. In other villages they buy once a week or fortnightly. Caste, religion, political party, relations, etc.
Features of Rural Marketing : The main reason why the companies are focusing on rural market and developing effective strategies is to tap the market potential, that can be identified as follows: 1. Nearly, 70 percent of rural households now save a part of their income. They receive fees or service charges for their services. Salesman can effectively convey the product message at these meetings. Distribution costs and non-availability of retail outlets are major problems faced by the marketers. This implies that the marketed surplus is inversely related to the price level.
The warehouses at mandi level are managed by co-operative societies who provide services to members only. The companies with relatively fewer resources can go in for syndicated distribution where a tie-up between non-competitive marketers can be established to facilitate distribution. Rural marketing is now a two-way marketing process. Large and scattered market: According to 2011 census rural population is 68. Beoparies act as a financer to poor farmers. The Literacy rate in rural areas has gone up from 58.
Short feature films with advertisement message, Ad-films and documentaries that combine knowledge and advertisement are useful for rural communication. Retailers pushing imitation or fake products in place of branded ones for better commission. Consumer durables market is growing at 10% per annum in urban areas, but the growth rate in rural India is 25%. This is another potential low cost distribution channel available to the marketers. An important step in the right direction was the Municipalities Ordinance which obligates the appointment of an environmental committee in each local authority, responsible for activities in areas that relate to the environment and sustainable development. The companies are trying to trigger growth in rural areas.
Many new products have entered the consumption basket of the rural consumer; and the relative shares of the different categories of products in the consumption basket have also recorded a good change. Culture Rural and urban America have many cultural characteristics in common, yet some differences apply. Godrej introduced Fair glow in 50 gm packs. The traditional rural family members are not extending any unsolicited help to each other that they provided in the past, especially during celebrations. Traditional outlook: Rural customer values old customs and traditions and are interested in deriving core benefit from the product. They are improvements provided for more comfort. Rapid Economic Growth: Naturally, marketing acts as catalyst agent for economic growth.
Therefore, the marketers move to the rural market to escape the intense completion and generate revenues from the untapped areas. The rural markets are therefore becoming increasingly attractive in relation to urban markets. In recent years, rural markets have acquired significance in countries like China and India, as the overall growth of the economy has resulted into substantial increase in purchasing power of rural communities. There is inflow of products into rural markets for production or consumption and there is also outflow of products to urban areas. This will not burn a hole in the pockets of the farmers. It helps the farmer to increase the productivity with the help of modern inputs. Market growth: The rural market is growing steadily over the years.
Example — same as of small unit packs. There is a lack of desire of new things and styles. Probably they do not want their children to become farmers. They are identifying the fact that rural people are now in the better position with disposable income. They are not as easily available and also charge high which was very unlikely in the past.
