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

PopulationStandards of livingWide economic gapNew product awarenessEducationElectrifiedChannel of communicationChannel 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 MarketRural 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

languages12. 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

1779

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 RuralFood 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 ????