Research paper on rural marketing

Problems of Rural Marketing in India

Coupled with increase in purchasing power, social mobility, increasing literacy level and improved means and modes of communication, the tempo of development is accelerating in rural India. These factors have readily contributed to change the pattern of rural demands. Earlier days the general impression was that the rural markets had potential for agricultural inputs because of which there is growing market for consumer goods today.

Today lots of marketers are quite enthusiastic to enter the rural market and are also looking for opportunities to exploit to the best of their advantage. Marketers thus need to understand the dynamics of rural market as rural consumers differ from their urban counterparts on a large number of important attributes as their buying behaviour is different which has got important implications for markets.


Teams should be composed of a mix of insiders and outsiders. Some of the world's biggest, savviest corporations have aimed to address their basic needs — by selling them everything from clean water to electricity and from FMCG to consumer durables. Gone are the days when village were using neem or babul tree to twig for cleaning their teeth, today they are using ultra bright shine of Colgate or some other international brand of tooth paste instead of groundnut the children are asking for chocolate candies that will meet in their mouths, face cream or lotions have replaced besan chickpea flour as a face cleanser. Agriculture being seasonal, demand for various goods and services is also seasonal, peaking at the end of the two main harvests, vis. Rural market also exhibits regional, linguistic, economic disparities and cultural diversities. According to the study, rural consumers in Eastern India shows patronage towards the retailers from which they make routine low-involvement utilitarian purchases and were not specific to any brand.

For exploring marketing opportunities in widely scattered Indian rural market there has been increasing thrust about how to develop a proper marketing framework. If marketers want to tap the potential of rural market in India they should understand the rural culture and also treat it on priority. Rural market poses a distinct challenge for marketers who are interested to tap the goldmine the path to which is paved with thorns.

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In order to successfully enter the rural market marketers need to be aware of the major challenges that which lies in the way and they should also be adequately equipped with tactics and strategies in order to combat them. Besides marketers are also considering serious all out efforts to tap rural markets and are also likely to face some challenges in their rural endeavors. The concept of rural marketing environment is quite complex in India which has been changing continuously since last few years.

Hence marketing organizations who want to target the rural market should foresee and adapt such strategies to make some necessary changes in market. An adaptive organization can always have modest growth and can stand competition by making effective marketing plans and also creating own strategies in a more creative way and also creating opportunities in the market with change in the dynamic environment as it might prove profitable for them.

Hence in India there are various factors which affect consumer behaviour, some of the major ones are discussed below:. The environment in which consumer dwells: In India, environment or the surrounding in which the consumer lives or dwells certainly has a strong influence on buyer behaviour. Various such factors like electrification, water supply do effect demand for durables.

Brand Preference and Loyalty: People in rural areas will not give much preference to branded products but certainly give importance to loyalty for a product. Place of purchase: Company needs to access those products to rural consumers which mostly influences purchase decision of rural consumer. Hence and organization having its presence in rural area should develop various shops and outlets where retailers can avail better services.

Geographic influence: The geographic location wherein the consumer is located also affects the taught process of consumer buying behavior. To cite and example most of the rural villages in South India accept technology quicker compared to other parts of India. Hence HMT sells more winding machines in north while they sell more quartz watches in south. Image to show Rural Marketing strategies adopted my companies in India.

Demographic profile of consumers comes into picture to sell goods in rural areas in case of rural marketing. Occupational or Sociological Segmentation: This type of segmentation is based on economy vise categorization which necessarily reflects the purchasing power of farmers which includes Small farmers, artisans, tenant farmers, large level farmers, medium level farmers and very large farmers Zamindars.

Artisans: These category of workers comprise of blacksmiths, carpenters, handicrafts and other people who are unemployed. Small farmers: Comprises of farmers who own small farms and jointly owned farms for getting food. Medium level farmers: Comprises of small farmers who are jointly owning farms for getting food. Large scale farmers: Comprise of farmers who have large lands and are also local leaders who spend their time in urban areas doing other occupation besides agriculture.

Very Large farmers, Land Lords Zamindars : Zamindars, businessmen and rich money lenders own big size lands and also maintain large size farm labour.

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Zamindars spend time in nearby urban areas doing some part time occupation. Small farmers and tenant farmers struggle for basic needs, middle level farmers struggle for comforts but very large farmers struggle for enjoyment and lavish living. Branding necessarily aims to establish significant and differentiated presence in the market that which attracts and retains loyal customers. Hence the term brand is generally applied to trade names, trade symbols, trademarks etc. For instance Pepsi, Lifebuoy brand names are recognizable by sight normally and rural consumer likes to associate himself to such brands that which give more value for money.

Amongst leading retailers, Dabur generates over percent of its domestic revenues from rural sales. Rural communication campaigns communicate for rural markets call for different kind of outlook. Besides mass media and outdoor media rural extravaganzas like melas, festivals and other events should also be taken as an opportunity by companies to promote their goods and services where villagers come together. One of the best ways to capture the attention of rural audience is through event management.

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As rural areas do have limited venues for entertainment, conducting and implementing a successful event in rural area can certainly bring a good response. Direct marketing as such is one of the most reliable and powerful way to meet target customers requirement as well as to build product awareness and promotion. Also success of any marketing campaign depends on fieldworkers and their emotional and sensitivity connection towards rural markets.

Promotional related activities and marketing branding in rural context can be highly effective and companies should create likely database of prospects in order to capture the rural market. The data in turn will be essential for marketers to reach their target accurately and also can help companies in implementing effective marketing plan and communication strategies.

Rural consumers do believe that heavier the item, more higher the power and durability as they prefer tough and long lasting product. For instance Bullet motor cycle still continues to be popular in villages. V with Devanagari script on screen display. A refrigerator has been introduced in rural areas by Voltas company with cold technology which keeps the refrigerator cold for several hours in case of long power cut.

For rural consumers Nokia has designed a basic model which is dust resistant and also has a mini torch light.

Majority of the companies are coming up with value added small packets in rural areas. Small unit packaging certainly provides an opportunity for the consumers to try the product and also help the company to reach to its consumers especially daily wage earners.

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Over the past few years Ponds has gained a high market share focusing on rural market and it has also introduced 20gm talcum powder. Rural buying behaviour was studied by Cavinkare Company which introduced Chik Shampoo in small sachets of 4ml at a price of just 50 paise. Rasna was made available in small sachets priced at one rupee each and each sachet can make 2 glasses of soft drink. Rather than appearance or show rural people are concerned with utility of items in rural areas.

Radio required no external batteries or electricity for its operation. HMT watches are much popular in rural areas for their utility value. Economy is growing vibrant and habits, tastes, attitudes, preferences as well as income of consumers is rising rapidly. These changes are also evident in rural areas. As such companies are trying to trigger growth in rural areas. As banks are lending finance at low rate of interest there has been a substantial increase in affordability of purchasing costly products by rural people.

Today Rural India offers a plethora of opportunities with the substantial upgradation in purchasing power; increased brand consciousness pattern and rapid spread of communication network all waiting to be harnessed. With its vast demand base rural market is extremely attractive and also offers various opportunities.

As is the trend with urban India, consumers in rural region are expected to embrace online purchases overtime and also drive consumption digitally. Rural regions are very well covered by basic telecommunication services and also slowly witnessing increasing pattern of smartphones and computers. However taking advantage of this online web portals are being used as key channels to enter and establish themselves in rural market.

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Indian rural market as such plays a pivotal role as it provides greater opportunity to the companies to stretch their reach to nearly seventy percent of the population. By uplifting the standard of the people, providing infrastructure facilities, quality of life of people residing in rural area rural market benefits the rural economy.

A thorough understanding of rural markets and systematic move towards are necessary to penetrate rural market. In order to develop marketing strategies and action plans, the corporations need to taken into account the complex factors that influence the rural consumers buying behaviour. The rural market is developed by rising purchasing power, changing consumption pattern, increased access to information and communication technology, improving infrastructure and increased government initiatives to boost the rural economy.

The marketers tune to their strategies in accordance to the rural consumer in the coming years. In spite of all complexities involved in the rural marketing, the rural scene of rural environment is changing steadily in India. The biggest challenge today is to develop a scalable model of influencing the rural customer mind over a large period of time and keep it going. Traditional urban marketing strategies will have to be localized as per the demands of the rural markets.

It has to reach out to rural consumers and relate to them at an appropriate level, so that it can bring about the desired behavioral change. Government support is necessary for the development of rural market in India to face the emerging issues and challenges in the core areas like; transportation, communication, roads, and credit institutions, crop insurance for better utilization of land and water management. The future no doubt lies in the rural market. In conclusion, the rural markets are enticing and marketing to rural consumers is exciting. However, a clear understanding or the rural consumers and their current and future expectations are the major part of strategies to tap the rural market nowadays.

Richika, R. Sharma, R. Kavitha, T. Kotler, P.

Marketing for Non-Profit organization. Krishnamacharyulu, C. Rural Marketing- Text and Cases. Pearson Education Singapore pvt.

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Murthy, V. Rural marketing: Issues opportunities, and challenges. Marketing in India, cases and Reading. Vikas Publication House pvt.


View Rural Marketing Research Papers on for free. The present paper aims to know the status of rural market in India, the identification of study to assess the various dimension of Indian rural.

Prahalad, C. The complexity and specificity of rural marketing for the market study and promotion of the sales is complicated by the seasonality of production itself, as the sector is mainly divided by functions, such as the production, distribution, and sale to the end customer. The products make a long way from production up to the end consumer.


Often the product is perishable, so you need to take into account the speed of delivery, suitable packaging, and service. In addition, we should not forget that the main source of production is soil and its fertility and, as is well known, its resource is not eternal. Modern research and development of fertilizers, soil fertility improvement, and cultivation techniques may increase to a certain percentage the productivity, but it is impossible to predict long-term consequences of such investments. Another important feature is the fact that the work period, depending on the type of activity may not coincide with the period of production.

This is mainly concerned with crops and livestock, as for the cattle growing you need more than a year, as well as, for example, fruit trees seedlings need time to grow up and start giving good results, so that production became profitable. Having reviewed the main features of rural marketing, you can use free example research papers to get the idea of the proper scientific writing procedure, which allows you to see how to present your thoughts in the most favorable light.

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