Meaning of rural marketing: Rural marketing can be defined as a function which manages all those activities in asserting, stimulating and converting the purchasing power of rural people into an effective demand for specific products and services and there by achieving the goals of the organization. Demographical details of Indian rural market: About 285 millions live in urban India where as 742 millions reside in rural areas. The No. of middle income & high income households in rural India is expected to grow from 46 millions to 59 millions. Size of rural market is estimated to be 42 millions household and rural market has been going at 5 times the growth of the urban market More government, rural development programs Lowering of difference between taste of urban and rural customers Increase in agricultural productivity leading to growth of rural disposable income Demographical details of Indian rural market

Nature of Rural market: Large, diverse and scattered market :- Rural marketing in India is large, and scattered into a number of regions. There may be less number of shops available to market products. Major income of rural consumers is from agriculture :- Rural prosperity is tied with agriculture prosperity. In the event of crop failure, the incomes of masses is directly affected. Traditional outlook:- Villages develop slowly and have a traditional outlook. Change is a continuous process but rural people accept change gradually. This is gradually changing due to literacy especially in the youth who have begun to change the outlook in the villages Nature of Rural market.

Standard of living and rising disposable income of the rural customers :- It is known that majority of the rural population lives below poverty line and has low literacy rate, low savings etc. Today the rural customers spends money to get value and is aware of the happening around him Rising literary levels : It is documented that approximately 45% of rural Indians are literate. Hence awareness has increase and the formats are well informed about the world around them. They are also educating themselves on the new technology for a better life style. Scope of marketing: Large population :- According to 2011 census, rural population is 72% of total population and it is scattered over a wide range of geographic area. Rising rural prosperity :- Average income level has unproved due to modern farming practices, contract farming industrialization, migration to urban areas etc. Growth in consumption :- There is a growth in purchasing power of rural consumers. The average per capita house hold expenditure is 382 Rs Scope of marketing

Change in life style :- Life style of rural consumer changed considerably. Market growth rate higher than urban :- The growth rate of fast moving consumer goods [FMCG] market and durable market is high in rural areas. The rural market share is more than 50% for products like cooking oil, hair oil etc. Life cycle advantage :- The products which have attain the maturity stage in urban market is still in growth stage in rural market. Rural marketing is not expensive :- To promote consumer durable inside a state costs 1 crore Rs while in urban areas it will costs in millions.

Importance of rural market: Large market :- Approximately 75% of Indians population resides in rural. Around 6,38,365 villages of India spread over 32,00,000 Sq. kilometer 41% of Indians middle class resides in rural areas. Rural markets account for over 60% of the national demand . Importance of rural market

Higher purchasing capacity :- According to NCAER [National Council for Applied Economic Research]. As per NCAER study there are many middle income and above households in the rural areas. As there are in the urban areas there are almost twice as many lower middle income households in rural areas as in the urban areas. Because of this purchasing power of power of rural people is on rise Continued

Market growth :- Hariyali kissan bazar was set up by sri ram consolidated limited to facilitates scale of agriculture inputs such as fertilizers, pesticides forming equipment, seeds etc. Shakti- though the state governments and NGOS involved in microfinance women entrepreneurs in villages are identified to act as local distribution and sales point for HUL products Continued

Differences between rural marketing & urban marketing: Differences between rural marketing & urban marketing Aspect Urban Rural Philosophy

Marketing &social concepts & relationship market Marketing & social concepts development

marketing Consumers: Location ,Literacy ,Income Expenditure ,Needs Innovations, Concentrated High Planned &even High level Faster Widely spread, Low Seasonal &variations,

Distribution channels- Whole seller, retailers, supermarkets, speciality stores, authorised store rooms, Village shops. Advertising- Print, audio, visual media, outdoors, exhibitions etc T.v, radio, print media to some extent. Competition Among units -in organized sector Among unorganized sector

Demand- High, Low Product awareness, High ,Low Quality preference Good, Moderate Price sensitive Yes Very much in rural Product availability High Limited Transport facility Good Moderate

Problems of rural marketing: Under developed people :- Rural society is found by tradition, old customs, practices etc. The impact of modern science & technology has made very less impact of the old beliefs are still continuing. Under developed market :- Rural markets are not developing because of inadequate banking & credit facilities. Rural market needs banks to enable remittance, to transact on credit basis and to obtained credit support from the bank Problems of rural marketing

Continued: Poor or improper communication facilities :- Most villages even today largely depends on telegrams and phones for their communication needs print media and visual media [Television cinema] etc. reaches only about 20% of rural Indians . Many languages :- India is a country of many languages. Language becomes a barrier in effective communication in the marketing efforts. The languages vary from state to state, place to place, district to district there are now 18 schedule national languages Continued

Continued: Low per capital income :- Most farmers has small lands and many villages are brought prone, this result in low per capita income. Low per capita income Results in low consumption pattern as compared to the urban population Poor infrastructure facilities :- Infrastructural facilities like roads, ware houses, powers etc are inadequate in rural areas. Infrastructural cost are very high and impact adversely in the rural market activities. Seasonal demand :- Rural economic is seasonal, rural people have two seasonal namely khariff & rabi. Villages have money mostly in this seasons. As village income are seasonal demands are also. Continued

Conclusion : In my view Indian rural markets are in developing phase there is lots of opportunity for the marketers. Numbers of program run by Indian government for prosperity of rural areas and it will help to grow the rural market. Its is undeveloped market so the marketers can easily identified the need of the people and also create the new needs of the people. Rural marketing is tough but near future it will decide the future of many companies. Conclusion