rural exhibtion in up- farmer workshop

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Rural Exhibitions andMarket Promotion Campaign

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24 Oct. - 3 Dec., 2007 in 17 Divisions of UP


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A thorough understanding of the ruralmarkets has become an importantaspect of marketing in the Indian mar-keting environment today. This attraction to-wards the rural markets is primarily due tothe colossal size of the varied demands ofthe 230 million rural people. In fact, the ruralmarkets are expanding in India at such a rapid

pace that they have overtaken the growth inurban markets. This rate of growth of therural market segment is however not the onlyfactor that has driven marketing managersto go rural. The other compelling factor is thefact that the urban markets are becoming in-creasingly complex, competitive and satu-rated.

Further, the vast untapped potential of the ru-ral markets is growing at a rapid pace. Thepolicies of the government largely favour ru-ral development programmes. This is clearlyhighlighted by the fact that the outlay for ru-ral development has risen from Rs 14000crores in the 7th plan to Rs 30000 crores inthe 8th plan period. These figures also provethat the rural market is emerging strongerwith a gradual increase in disposable incomeof the rural folk. In addition, better procure-ment prices fixed for the various crops and

better yields due to many researchprogrammes have also contributed to thestrengthening of the rural markets. Thus, withthe rural markets bulging in both size and vol-ume, any marketing manager will be miss-ing a great potential opportunity if he doesnot go rural.

Importance of customs

This however raises a fundamental problem

of fathoming the differences between urbanand rural markets in India. This is of para-mount importance in the Indian marketing en-vironment as rural and urban markets in ourcountry are so very diverse in nature, thaturban marketing programmes just cannot besuccessfully extended to the rural markets.

The buying behaviour demonstrated by therural Indian differs tremendously when com-pared to the typical urban Indian. Further, thevalues, aspirations and needs of the ruralpeople vastly differ from that of the urbanpopulation. Basic cultural values have not yetfaded in rural India. Buying decisions are stillmade by the eldest male member in the ru-ral family whereas even children influencebuying decisions in urban areas. Further,buying decisions are highly influenced bysocial customs, traditions and beliefs in therural markets. Many rural purchases requirecollective social sanction, unheard off in ur-ban areas.

Another contrasting feature is the precisionin the assessment of purchasing power ofthe consumers. In urban markets, incomelevels are generally used to measure pur-chasing power and markets are segmented

accordingly. However, this measure is notadequate for defining the purchasing powerin rural areas because of the single fact thatrural incomes are grossly underestimated.Farmers and rural artisans are paid in cashas well as in kind.

However, while reporting their incomes, theyreport only cash earnings, which then affectsthe calculation of their purchasing power.This is the reason why marketeers are often

Rural marketing in India


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surprised to find that their products aresometimes consumed by people who, ac-cording to their surveys and estimates do nothave the purchasing power to do so. Everymarketing manager must therefore make anattempt to understand the rural consumerbetter so that he can plan his strategies insuch a manner that they produce the desiredresults.

Changing the marketing mix

Unfortunately, most marketers of today try toextend marketing plans that they use in ur-ban areas to the rural markets and face, onmany occasions failure. They should adopta strategy that appeals individually to the ru-ral audience and formulate separate annualplans and sales targets for the rural segment.Changes must be made in the marketing mixelements such as price, place, product andpromotion.

Corporate marketers should refrain from de-signing goods for the urban markets andsubsequently pushing them in the rural ar-eas. The unique consumption patterns,tastes, and needs of the rural consumersshould be analyzed at the product planningstage so that they match the needs of therural people.

For most companies wanting to enter the ru-ral markets, distribution poses a seriousproblem. Distribution costs and non availabil-ity of retail outlets are major problems facedby the marketers. But if one takes a closerlook at the characteristic features of the ru-ral market, it will be clear that distribution infact, is no problem at all.

In rural India, annual melas organised witha religious or festive significance are quite

popular and provide a very good platformfor distribution. Rural markets come aliveat these melas and people visit them tomake several purchases. According to theIndian Market Research Bureau, around8000 such melas are held in rural India ev-ery year. Besides these melas, rural mar-kets have the practice of fixing specific daysin a week as Market Days when exchangeof goods and services are carried out. Thisis another potential low cost distribution

channel available to the marketers. Also,every region consisting of several villagesis generally served by one satellite townwhere people prefer to go to buy their du-rable commodities. If marketing managersuse these feeder towns they will easily beable to cover a large section of the ruralpopulation.

While planning promotional strategies in ru-ral markets, marketers must be very carefulin choosing the vehicle to be used for com-munication. They must remember that only16% of the rural population have access to avernacular newspaper.

Although television is undoubtedly a power-ful medium, the audio visuals must beplanned to convey a right message to therural folk. The marketers must try and relyon the rich, traditional media forms like folk

dances, puppet shows, etc with which therural consumers are familiar and comfort-able, for high impact product campaigns.

Thus, a radical change in attitudes of mar-keters towards the vibrant and burgeoningrural markets is called for, so they can suc-cessfully impress on the 230 million ruralconsumers spread over approximately sixhundred thousand villages in rural India.


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ACC Limited

J P Cement

NABARD

TATA AIG

Union Bank of India

HUGES

Everest Industries

Bharti Teletech Ltd

Ministry of Earth Science

State Bank of India

Our ExhibitorsOur ExhibitorsOur ExhibitorsOur ExhibitorsOur ExhibitorsAllahabad Bank

Department of Horticulture , UP

Department of Post & Telegraphs

Pioneer seeds

Namdhari Seeds

Indo American Seeds

Beejo Shital Seeds

Chambal fertilizers

BSNL

Bank of Baroda

NABARD


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rural exhibtion in up- farmer workshop

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