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Introduction

Rural markets An Opportunity

Rural markets-Vast potential- large population,

742+285=1027 mn untapped, current consumption trends a pointer-

telecom, two wheelers

Intensity of competition in urban markets- hul vs. p &g,dabur, godrej

Increasing incomes- agri +non agri growth rates andpurchasing power in rural-

Media explosions-mass medias, i.c.t, ad agencies inrural

Favorable govt policies- liberal credits

Changing buying behaviors- due to literacy, increasedr2u2r mobility

Upcoming organized retail- coupal sagar, adhar

Innovations r welcomed- Hul -solar, mobile pumpstarters

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What is rural markets? And rural marketing?

A distinct marketing activity of attracting and serving to fulfillthe needs and wants of persons, households and occupationsof rural people.

A Marketing function which manages all activities involved inassessing, stimulating and converting purchasing power in toan effective demand for specific products and services and

moving to the people in rural area to create satisfaction andImprove standard of living, thereby achieve goals of org. ofprofits and growth

Approach -Developmental + Transactional marketing

Scope- u2r2u product-matrix

Myths- local vs. branded- godrej no1, cheaper vs. expensive,copy matter due to literacy, farm income vs. non farm

incomes

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Comparison between rural and urban markets

Philosophy- Primarily societal, developmental vs. moretransactional

Market-low demand vs. intense competition

Consumer-widely spread, seasonal buying vs.concentrated ,planned and high consistent expenditure.Traditional-

Products-low awareness, positioning difficult, quality,innovation preferences low vs. choosy

Price-more sensitive, low price better response.

Distribution-jatras , melas, vans vs. supermarkets

Promotion- conventional +unconventional methods- roleof ad agencies

based on 1-ocupation, 2-environment,3 density ofpopulation,4-heterogenity and homogeneity ,5-mobility- rto u migration,6-system of interactions-simplicity andgenuineness in relations

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Problems

Deprived people - more BPL customers, tradition bound ,fatalistic, taboos, , ideologies of casts, inequalities

Deprived markets- frustrating power supply, unreliabletransport, communications

Multiple languages and dialects- 18 languages and 1700dialects

Dispersed markets- out of 3.7 ml retail outlets in rural 7

states account for 76 % retail outlets, Fairs and melas roccasional

Low per capita incomes

Spurious brands

Low literacy levels.

customs and traditions impact more Narrow consumption basket

Distribution problems

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Constraints in developing rural markets-

High distribution costs

High initial development expenditures Rural retailer unable to stock without credit

Inadequate infrastructure- communication , distribution

Accessibility, Channel selection different

Consumer s ability to discriminate, perceptions

Limited market data. Research support Competitive situation and planning -winning strategies

difficult

Seasonal demands

Sales force management-a problem

Strategy approach

understanding Market environment-c.b., stp and ps toas