The presentation on rural marketing with which we won the national level paper presentation FUTECH 2012. and appreciated for being innovative, and thinking out of the box

1. Once upon a time, an ENGINEERING student was peacefully
sleeping, having done lots of studies preparing for his class test
that are scheduled after a month ,but suddenly his so called
DISTURBING ELEMENT that he always avoided using during his
studies , classes, labs and used it to contact only his parents rang
veraciously with sudden glowing and blinking of an intense light
that spread all around his holy room and he unwillingly picked up
his CELLPHONE (though he did not wanted to) and saw the text
sent by his very caring so called SERVICE PROVIDERS (that
provides him services even without taking his permission,
1 Message Received
1

2. “3G bonanza, only for today. Get
UNLIMITED 3G data for just Rs.250 and free
talk time worth Rs 250, valid up to 30 days. So
what are you waiting for, hurry up or follow
the link”
http//urgoing2bemadefool::ifuclikdthis
********************
2

3. PRESENTED BY:-
RAHUL KURMI
SOURAV LAHIRI
MECHANICAL ENGINEERING
SEVENTH SEMESTER
C.S.I.T (DURG) 3
“RURAL MARKETING- A
SHINY STREAM AHEAD”

4. What to be called as RURAL???
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Definitions of Rural
Census Village: Basic Unit for rural areas is the revenue village, might
comprise several hamlets demarcated by physical boundaries.
Town: Towns are actually rural areas but satisfy the following criteria.
 Minimum Population >=5,000
 Population density>= 400/ sq. km.
 75% of the male population engaged in non- agri activity.
RBI Locations with population up to 10,000 will be considered as rural
and 10,000 to 100,000 as semi-urban.
Nabard All locations irrespective of villages or town, up to a population of
10,000 will be considered as ‘rural’.
Planning
Commission
Towns with population up to 15,000 are considered as rural.
Sahara Locations having shops/ commercials establishments’ up to 10,000
are treated as rural.
LG Electronics The rural and semi urban area is defined as all other than the seven
metros.

5. WHAT DOES MARKETING STANDS
FOR???
Marketing may aptly be described as the
process of defining, anticipating and
knowing customer needs, and organizing all
the resources of the company to satisfy them.
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6. RURAL MARKETTING
 Rural marketing is a function which manages all
those activates involved in assessing, stimulating
and converting the purchasing power into an
effective demand for specific products and services,
and moving them to the people in rural area to
create satisfaction and a standard of living to them
and thereby achieves the goals of the organization.
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7. DEVELOPMENT OF RURAL MARKETING
In earlier times the term rural marketing was used to
define the people who dealt with the rural people in
one another way. But gets it separate meaning and
Importance after the economic revaluation INDIA in
1990.
The development of rural marketing can be segmented
into three phases which are described as follow:-
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8. Phase I (Before 1960):
Rural marketing referred to selling of
rural products in rural and urban areas
and agricultural inputs in rural markets.
It was treated as synonymous to
‘agricultural marketing
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9. Part II (1960 to 1990):
During this period green revolution resulted from scientific
farming and transferred many of the poor villages into
prosperous business centres. As a result, the demand for
agricultural inputs went up especially in terms of wheat's
and paddies. Better irrigation facilities, soil testing, use of
high yield variety seeds, fertilizers, pesticides and
machinery etc.
Two separate areas of activities had emerged- during this
period ‘marketing of agricultural inputs’ and the
conventional“ Agricultural Marketing”
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10. Phase III (After Mid 1990s):
The products which were not given attention so far during
the two earlier phases were that of marketing of
household consumables and durables to the rural markets
due to obvious reasons. The economic conditions of the
country were as such that the rural people were not in a
position to buy these kinds of products. Since 1990s,
India’s industrial sector had gained in strength and
maturity. The economic reforms further accelerated the
process by introducing competition in the markets.
Steadily, the rural market has grown for household
consumables and durables.
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11. WHAT’S A RURAL MARKET
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.
Rural areas of the country or countryside are areas that are
not urbanized, though when large areas are described
country towns and smaller cities will be included. They
have a low population density, and typically much of the
land is devoted to agriculture
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12. Why Rural Marketing is hot:-
Rural Push Policy of UPA Government
Four Consecutive years of positive growth in
rural GDP
40% hike in MSP of Crops over last two years
Farm Loan Waiver & NREGS
Growing Industry Demand for land (Overnight
Wealth)
Big rise in remittances from Cities
Slowing urban demand forcing corporate to
rural markets
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13. The Rural Consumer: A Detailed Profile
•SIZE OF RURAL CONSUMER
I. Rural population about 73% of total population.
II. Acc to 2011 census, 80crore population.
III.12 crore households- 70 % of total
• LOCATION PATTERN: A scattered market-
1. Urban population in 3200 cities
2. Rural population in 6,27,000 villages
 Up to 5000 <1.1%
 Up to 500 >55%
 Up to 200 >25%
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14. SOCIO-ECONOMIC POSITION
Low purchasing per capita income.
Bounded by tradition, culture, religion and
community.
Varied regional preferences.
70 percent income from agriculture.
• more than 50% have income <Rs 25,000.
•About 14% have income >Rs 50,000.
In recent years , 70% rural households started
saving their income (service class, non farmers like
shopkeepers etc.)
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15. •Culturally a Diverse and heterogeneous Market
In terms of religious, linguistic , social and cultural factors.
•State to state variation in extent of development
-from study conducted by IMRB ( Indian market research
institute) provides development index points for each stage
on:-
Health and education.
Availability of public sector
Electricity.
Communications.
Banks and post offices.
Water supply.
•Average villages have 33 index points.
I. Kerala have 88 index points.
II. Bihar having 22 index points.
III. UP, MP, Rajasthan close to 22 points
IV.Maharashtra, Haryana, Karnataka 40-50 points. 15

16. LITERACY LEVEL
Rural India has literacy level rate of 30% compared to 59%
of the whole country.
Scenes have changed since last few years. Literacy rates
increased from 20% to 29%.
Every year 8 million people get added to rural India's
literate population.
Adult literacy program being successful to a good extent.
LIFESTYLE
Conservative and traditional bounds has changed to a
good extent due to:
•Increase in income.
•Educational growth.
•Enlarged media reach.
•Growing interaction with urban areas.
•Marketers efforts to reach rural areas. 16

17. RECENT TRENDS:
 Steady growth
 Welcome change in the composition of Rural demad
 Several products already well in the rural market
 In many products, rural consumption accounts for a
larger share than urban
 In many products, rural market has overtaken the
urban in growth rate-detergent powder, washing
soaps, Analgesics
 Position of durables (bicycle-53,celing fan -19 radio-
42)
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18. 18
YEAR 1971 1981 1991 2001
Total population (million) 548.2 683.3 848.3 1026.9
Rural population (million) 524.0 628.8 741.6
Rural Proportion to total population
(%)
80.1 76.7 74.3 72.2
Decadal Variation - 19.8 16.7 15.2
Source: Census of India 2001
DEMOGRAPHIC DATA

19. 19

20. DISTRIBUTION OF OCCUPATION
AND INCOME IN RURAL MARKET
DISTRIBUTION OF HOUSEHOLD BY ANNUAL
INCOME
<=35,000
35,001-70,000
70,001-105,00
105,001-140
>140,000
3%
10%
4%
48%
35%
20

21. 4 A’s approach to Indian rural
marketing mgmt.
1.AVAILIBILITY (PLACE)
2.AFFORDABILITY (PRICE)
3.ACCEPTABILITY (PRODUCT)
4.AWARENESS (COMMUNITY)
21

22. Marketers need to understand the psyche of the rural
consumers.
 Intensive personal selling efforts at the community level.
Firms should refrain from designing goods for the urban
markets and subsequently pushing them in rural areas.
Focus particularly on rural market based products would give
an edge to manufacturers.
22

23. DISTRIBUTION STRATEGY:-
 Using company delivery van which can serve two
purposes
 Annual mela’s and fair’s
 Fixing specific days of a week as a MARKET DAYS
termed as HAAT’S
 Through MANDI’S or agri-markets
23

24. Promotional strategy:-
The audio videos must be planned convey a right
message to rural folks. The rich traditional media forms
like street drama, folk dances and puppet shows
should be conducted these are the channels of
marketing with which the rural consumer’s are familiar
and comfortable with.
24

25. RURAL COMMUNICATION AND
ADVERTISEMENT:-
 Keep the communication simple…(No scope for gimmicks)
 Take time in communicating the message (anything quick
and short has no impact)
 Think in the local language to capture the local spirit in
the communication aimed at specific region.
 By giving the brands and products an Indian name
 By understanding the cultural and social values of the
particular rural region and communicate accordingly
 Rural consumer’s want value of their money so providing
what they want increase the outcomes, they stick to basic
functionality
25

26. Demonstration:-
The demonstration may prove a key element to success
in rural advertisements as the rural folks don’t suffer
shortage time in their day to day life and took a keen
interest in the street demonstration of a product it
provides a touch and feel concept and a better
understanding of the product.
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27.  By keeping the advertisements Indian hiring Indian
models bollywood personalities or the faces they are
familiar with
 Relating it with their religious ethics and belief’s
 By developing rural specific products and talking about a
normal common Indian how the product fulfills his need
 Providing a glimpse or rural locality whenever possible
to the advertisements
 By advertising through wall paintings and colourful
hording
 Associating with INDIAN SPORTS specially with
CRICKET
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28. OPTIMAL PROCEDURE TO SELL YOUR
PRODUCT AT RURAL MARKET:-
THINK WISE,ACT SMART
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ANALYSE BY CULTURE
PAY ATTENTION
PRICE AND DEDICATION QUALITY PRODUCT
AFTERSALE SERVICES
CREATE
RELAIABILITY
REACH ASAP
HAVE A BRAND
IMAGE
REGULAR FEEDBACKS
ENJOY THEIR
HAPPINESS

29. THANK YOU 
HAVE QUERIES,
CLEAR THE DOUBTS.
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