Challenges In Rural Markets

CO ORDINATOR:-

Dept. of business studies CERT

Miss Anshu Sharma (Lect.) & Miss Rinkey Sharma(lect )

" India's way is not Europe's. India is not Calcutta and Bombay. India lives in her several hundreds of villages". Mahatma Gandhi

Our country is endowed with a good degree of ethnic and regional diversity. The development of the nation largely depends upon the development of the rural population.

To find out the problems faced by the companies in rural market The opportunities for the companies. Promotional techniques used by the companies

India is an agro-based economy and the growth of most of the other sectors of economy is driven by rural demand. Urban market is reaching towards the saturation point, thus bringing in and urgent need to focus on rural development. Moreover, more than 70% of India's population lives in villages and constitutions a big market for industry because of increasing disposal incomes and awareness level.

Rural market witnesses a high demand It's the rural segment of market that contributes more profit than its urban counterpart. Rural marketing broadly involves reaching customers, understanding their wants, supply of goods and services, and ultimately satisfying consumers, leading to more sales.

Vast and scattered market Cultural Factors Low Literacy

Seasonal Demand
Transportation

Communication Problems
Traditional Life

Media for Promotions

Low standard of living

Lack of desire for new styles

Overall backwardness Lack of proper planning Inadequate bank and credit facilities Low standard of living

Pricing of the product

There are not enough opportunities for education in rural areas. The literacy level is as low (36%) when compared to all- India average of 52%.
Present the literacy levels of rural and urban areas for males and females respectively

Sl no.

Sex

Literacy levels in percentage

1971
R U 61 42

1981
R 46 18 U 66 48

1991
R 58 31 U 81 64

2001
R 71 47 U 87 73

1. 2.

Males Females

34 13

3.

All

24

52

30

57

45

73

59

80

Source :-Census of India reports

Demand for goods in rural markets depends upon agricultural situation, as agriculture is the main source of income. Agriculture to a large extent depends upon monsoon and, therefore, the demand or buying capacity is not stable or regular.

There are various reasons why every industry is taking a very serious look at rural markets:

About 285 million live in urban India whereas 742 million reside in rural areas, constituting 72% of India's population resides in its 6, 00,000 villages. More rural development initiatives by the government. Increasing agricultural productivity leading to growth of rural disposable income. Lowering of difference between taste of urban and rural customers. Good Monsoons in the last couple of years. Growing rural infrastructure - thanks to Government initiatives.

Role of promotion in rural area

Promotion According to Philip kotler

Elements of promotion mix

Advertising

Personal selling

Target customer

Sales promotion

publicity

According to AMA , it is any paid from of non-personal presentation of ideas ,goods or services by an identified sponsor Promotional techniques used by the two big telecom service provider idea and airtel

Five Ms of advertising
Message Mission Money Measurement

Media

Nature of the product

Stages in the product life cycle

Market size and location

Pricing strategy
Characteristics of buyers

SUGGESTION
Mobile Technologies to Address Rural Market Needs To enhance the knowledge regarding the product how it is use Increase the literacy level After sale service should be better The company should offer installment facilities. Government should provide loan to farmer. Credit facilities should be given by companies Small unit and low priced packing

BOOKS: Gopalaswamy T. P. Rural

Vikash Prakashan. K.S. Awadhesh & Pandey Satyaprakash, RuralMarketing New age international publishers. Website: www.ruralmarket.com www.ruralindiaadvertisement.com www.ruralimages.co.in

marketing environments problems and strategies third Edition,