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RURAL AND URBAN MARKETING COMPARETIVE ANALYSIS
By Aashish Soni And Trupti Kambli
Sharadchandra Pawar Institute Of Management
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 achieves organizational 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.
Difference Between Rural And Urban
Population
Standards of living
Wide economic gap
New product awareness
Education
Electrified
Channel of communication
Channel of distribution
The Rural And Urban ConsumerA 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
MARKET PROCESS
URBAN RURAL
RURAL
RURALRURAL
URBAN
URBAN URBAN
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%
Urban Market-
Large number of customer
Awareness about the product
Effective distribution channel
Rise to competition
Source of new ideas.
Great success stories of some famous companies-
Future group 80%
D’Mart 65%
Globus 59%
4 P’s Of Market
Product
Price
Place
Promotion
Urban+
Rural
Marketing Strategies
Rural and urban marketing
Marketing strategies
Distributionstrategies
Promotion strategies
Feeder town
Direct selling
Personal selling
All types of media
Familiar shows
Near market
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
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)
Rural Vs Urban Marketing
No Aspects Urban rural
1. philosophy Marketing & Social
conceptDevelopment &
Relationship marketing
2.
MarketDemand
high low
3. Competition organized sector Unorganized sector
4. Literacy High Low
5. Income High Low
6. Needs High level Low level
7. Adoption Faster Slow
8. Product a) Awareness
High Low
b)Concept Known Unknown
c)Quality Good Moderate
9. Pricea)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
Income Distribution (Million population)
288
130
4190
153
312
0
100
200
300
400
Low Low er middle Middle high
Rural Urban
2001-02
305
17
79
272
170
352
0
100
200
300
400
Low Low er middle Middle high
Rural Urban
2009-102001-02
Distribution of Monthly Per Capita expenditure
Urban Rural
Food 51.5 63.7Consumer goods 19.6 13.1Fuel, clothing & foot wear 13.9 14.8Medical 5.5 5.5Education 5.1 2.5Rent & taxes 4.5 0.4
Source: Household Consumer Expenditure
Survey, January–June 2004
Analysis Of Markets
The annual consumer durable market for products like colour
t.v’s,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.g – Rs.65000 crores (53 % share in total revenues)
Rs.5000 cr.for agri inputs.
50 % of India’s national income is generated in rural India.
HLL,Colgate Palmolive ,Toyato – 50 % revenues coming from rural
and 50% from urban area.
Hero Honda- 40 % from rural and 60% urban area.
Kinetic motors – 30 % from rural and remaining from urban area.
Godrej- 30% from rural70% from urban sector.
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.
Conclusion
Thus, looking at the challenges and the opportunities, of both
the markets, it can be said that the future is very promising for those
who can understand the dynamics of rural markets and exploit them
to their best advantage. A radical change in attitudes of marketers
towards the vibrant and burgeoning rural markets is called for, so
they can successfully impress on the 230 million rural consumers
spread over approximately six hundred thousand villages in rural
India. So we can say that “RURAL MARKETING IS A REAL
MARKETING”
Special Thanks To “A.P.I.M.R”
UDAAN “READY TO FLY….”
Thank You!!!!
Questions ????