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Evolution of Rural Marketing Dynamics

Rural India can be defined as areas with populations less than certain thresholds such as 20,000-50,000 people depending on the agency. Rural marketing has evolved over three phases from unorganized marketing of essential goods to organized marketing of branded consumer goods and services. The rural market structure is characterized by a growing population under 35 years old, increasing literacy and education levels, more nuclear family structures, and a shift away from agriculture-based occupations. Household income levels in rural India have risen significantly from 1998-1999 according to government data.

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188 views8 pages

Evolution of Rural Marketing Dynamics

Rural India can be defined as areas with populations less than certain thresholds such as 20,000-50,000 people depending on the agency. Rural marketing has evolved over three phases from unorganized marketing of essential goods to organized marketing of branded consumer goods and services. The rural market structure is characterized by a growing population under 35 years old, increasing literacy and education levels, more nuclear family structures, and a shift away from agriculture-based occupations. Household income levels in rural India have risen significantly from 1998-1999 according to government data.

Uploaded by

ankit_hbk12
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© Attribution Non-Commercial (BY-NC)
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THE RURAL MARKETING

ENVIRONMENT

1
Rural Marketing – Course Plan Details

 Rural Marketing Environment


 Defining Rural India
 Evolution of Rural Marketing
 Rural Market Structure
 Size of Rural market

2
DEFINING RURAL INDIA
• SOURCE DEFINITION
• CENSUS VILLAGES + TOWNS < 5000 POP
POPN DENSITY < 400/SQ KM

75% MALES IN AGRI ACTVITY


• RBI < 10000 POPN.
• NABARD < 10000 POPN
• PLG. COMMN < 15000 POPN.

For FMCGs focus should be on < 20000 popn areas


For durables focus on < 50000 popn areas
3
RURAL DISTRICT CONSTRUCT

Out of 593 districts, the construct is as follows :

DESCRIPTION NOS.

URBAN COUSINS 67

RURAL ECONOMIC CENTRES 118

BASIC INFRASTRUCTURE 160

DEPRIVED 248
4
EVOLUTION OF RURAL MARKETING
• PHASE I Before the 1960’s
• More of foodgrains, farm equipment, pots , pans etc.
• Unorganised
• PHASE II 1960’s TO 1990’s
• Green Revolution – modern equipment/practices
• Organised companies enter above
• Cooperatives/Commissions formed and promotion of
handicrafts/village industries
• Growing wealth – FMCGs discover rural
• PHASE III-Beyond the 1990’s
U R
Branded consumables Farm/non farm goods
R
and durables(organised) and services (unorganised)
Handicrafts, handloom, leather
U (semi-organised) 5
DEFINING CORPORATE RURAL
MARKETING
• A FUNCTION WHICH MANAGES
ACTIVITIES FOR :-
• ASSESSING
• STIMULATING
• CONVERTING PURCHASING POWER INTO
DEMAND FOR PRODUCTS AND SERVICES
• MAKING THESE PRODUCTS & SERVICES
AVAILABLE
• TO CREATE SATISFACTION
• A BETTER STANDARD OF LIVING
• THEREBY ACHIEVING ORGANISATIONAL GOALS
6
RURAL MARKET STRUCTURE

• DEMOGRAPHIC ENVIRONMENT
• POPULATION UP 40% PURCHASING POWER UP
42%
• 5-14 YEARS – 26%; 15-34 YEARS – 32%
• EDUCATION AND LEVEL OF DEMAND
• LITERACY UP 23%
• SIGNIFICANT INCREASE IN DEMAND FOR
EDUCATIONAL MATERIALS
• FAMILY STRUCTURE
• 48% NUCLEAR FAMILIES & GETTING HIGHER
• OCCUPATIONAL PATTERN
• 41% CULTIVATORS, 35% WAGE EARNERS & 7
11% SALARIED
DISTRIBUTION OF RURAL HHs BY INCOME
ANNUAL INCOME IN INCOME CLASS 1989 -90 1998 – 99
[Link] 1998 – 99 PRICES (% HOUSEHOLDS) (% HOUSEHOLDS)

<=35000 LOWER 67.3 47.9

35001-70000 LOWER MIDDLE 23.9 34.8

70001-105000 MIDDLE 7.1 10.4

105001-140000 UPPER MIDDLE 1.2 3.9

> 140000 HIGH 0.5 3.0

TOTAL 100 100

•Rural Annual Per Capita Income is Rs. 9481 vs Rs. 19407 in


Urban
•Highest Rural Per Capita Income is Punjab (Rs. 27256)
•Lowest Rural Per capita Income is Orissa (Rs. 5704) 8

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