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8/13/2019 Rural and Urbanmarketing Comparetive Analysis
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RURAL AND URBAN MARKETING
COMPARATIVE ANALYSIS
By Aashish Soni And Trupti Kambli
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Definition Of Markets
Rural Marketing-
Rural marketing involves the process of developing, pricing, promoting,
distributing rural specific product and a service leading to exchange between rural
and urban market which satisfies consumer demand and also achievesorganizational objectives.
Urban Marketing-
Urban is fully integrated firm which present comprehensive level of
services, offering pre- development guiding , branding , marketing and the most
effective sales agents in the area.
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Difference Between Rural And Urban
Population
Standards of living
Wide economic gap
New product awareness
EducationElectrified
Channel of communication
Channel of distribution
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The Rural And Urban Consumer
A Detailed Profile
Size of Rural and urban Consumer Group
Rural population is about 73% and urban population is 27% of the
total population of India
A Scattered market the comparison below shows the same* Urban Population is spread over 3,200 cities
* Rural population is spread across 5,70,000 villages
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MARKET PROCESS
URBAN RURAL
RURAL
RURALRURAL
URBAN
URBAN URBAN
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Reasons For Selecting Market
Rural Marketing-
Size of the market
Largely Untapped
Income on the rise/disposable income
Income from other than agriculture
Income flow from urban /abroad
Great success stories of some famous companies-
Asian Paints 60%
Dabur 40%
Videocon 40%
Colgate 50%
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Urban Market-
Large number of customers
Awareness about the product
Effective distribution channel
Rise to competition
Source of new ideas.
Great success stories of some famous companies-
Future group 80%
DMart 65%
Globus 59%
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4 Ps Of Market
Product
Price
Place
Promotion
Urban+
Rural
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Marketing Strategies
Rural and urban marketing
Marketing
strategies
Distribution
strategies
Promotion
strategies
Feeder
town
Direct
selling
Personal
selling
All types
of media
Familiar
shows
Near
market
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Urban Vs. Rural Status
TOTAL
PPLTN.
(MLN)
%
PPLTN.
GROWTH
RATE %
SEX
RATION
LITERACY
RURAL 318.74 1.79 916.44 55.61
URBAN 248.17 1.48 927.78 72.58
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Occupation of Head of Household
(IN %)
Urban Rural All Housewife 0.84 1.01 0.96
Cultivator 3.45 40.86 29.99
Wage earner 20.93 35.28 31.22
Salary earner 40.72 11.28 19.84
Professional 3.59 0.73 1.56
Artisan 6.90 3.41 4.42
Petty shopkeeper 16.05 4.97 8.19
Businessman 3.68 0.46 1.40
Others 3.85 1.98 2.52 Total 100.00 1 00.00 100.00
(Source: NCAER, 2003)
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Rural Vs Urban Marketing
No Aspects Urban rural
1.
philosophy Marketing & Social
concept
Development &
Relationship marketing
2.
Market
Demand
high low
3. Competition organized sector Unorganized sector
4. Literacy High Low
5. Income High Low
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6. Needs High level Low level
7. Adoption Faster Slow
8. Producta) Awareness
High Low
b)Concept Known Unknown
c)Quality Good Moderate
9. Price
a)Sensitive
Yes Very much
b)level desired Medium-high Medium-low
10. Transportation Good Average
11. Advertising Print, audio
visual, outdoors.
etc
TV, Radio, print
media in many
languages
12. Personal selling Door-to door,
frequently
Occasionally
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Distribution of Monthly Per Capita
expenditure
Urban Rural
Food 51.5 63.7
Consumer goods 19.6 13.1
Fuel, clothing & foot we 13.9 14.8
Medical 5.5 5.5
Education 5.1 2.5
Rent & taxes 4.5 0.4Source: Household Consumer Expenditure
Survey, JanuaryJune 2004
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Analysis Of Markets
The annual consumer durable market for products like colour
t.vs,washing machines, refrigerators and air conditioners is growing
at 7-10 %.
While the rural market is zooming at 25 % .
HAVE A LOOK..
F.m.c.gRs.65000 crores (53 % share in total revenues)
Rs.5000 cr.for agri inputs.
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50 % of Indias national income is generated in rural India.
HUL,Colgate Palmolive ,Toyoto50 % revenues coming from rural
and 50% from urban area.
Hero Honda- 40 % from rural and 60% urban area.
Kinetic Motors30 % from rural and remaining from urban area.
Godrej- 30% from rural70% from urban sector.
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Challenges
Rural Marketing
Traditional Life.
Transportation.
Literacy.
Promotion and Marketing Communication.
Urban marketing
Urban market flooded with low demand.
High degree of competition.
Large expenses.
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Questions ????