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Rural Marketing, VTU Syllabus Module 1

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  • 1. Rural MarketingModule 1Prof. Raghavendran Venugopal

2. RM Learning Objectives:-DefinitionScope of rural marketingComponents of Rural MarketingClassification of Rural MarketingConcepts & difference between Urban & Rural Markets 3. DefinitionThe term Rural as defined by GOI, may not satisfy all,especially the marketer because it define the rural notan account of what it is, but what is not urban.Census of India defines rural as that what is not urban,and urban isAll location within a municipality/ corporation,cantonment board or a notified town area committeeAll other locations satisfying all the criteria:1.Minimum population of 5000,2. at least 75% of male of workforce engaged in non- agricultural activities.3. A population density of over 400 persons per sq.km. 4. Rural Marketing Rural Marketing is defined as the process ofdeveloping, pricing, promoting, distributing ruralspecific goods and services leading to exchangebetween urban and rural markets, which satisfiesconsumer demand and also achievesorganizational objectives. As per national commission of agriculture, ruralmarketing is a process which starts with adecision to produce a saleable farm commodityand involves all aspects of market structure orsystem, functional and institutional, based ontechnical and economic considerations, andincludes pre and post- harvestoperations, assembling, grading, storage, transportation and distribution. 5. Phased Evolution of Rural marketing Rural marketing exists today is a result of evolution over many decades. The below table describesPhaseevolution of rural marketing. Time PeriodNatureMajor Products Source TargetMarkets marketIFrom Agricultural AgriculturalRuralUrbanIndependence to marketing ProduceGreen RevolutionIIGR to pre-MarketingAgricultural UrbanRuralliberalization ofInputsAgriculturalInputs IIIPost-liberalizationRural Consumables &Urban &Rural in 20th century. Marketing durables for rural consumption & production IV21st Century DevelopmeAll Products and Urban & Urban & ntal Services Rural Rural 6. Rural Marketing Model Develop/ModifyResearch Implementation Marketing MixSegment the Select TargetControlRural MarketMarketsStudy the Develop Specific Lifestyle ofneed profile fordifferent product category segmentsDevelop profile of Define &Different Prioritize their segments needs 7. Rural marketing Vs Urban Marketing Differentiating Rural MarketsUrban Markets Factors InfrastructureMinimum provided Maximum provided Availability Income StreamAgricultural(seasonal, Non Agricultural (Fixedhighly unreliable) Income ensured)Lifestyle Daily routines Ever changingContextVaries a lot Varies a little Socio- CulturalValue for money Not exactlyBackgroundAccessibility Heterogeneous Homogeneous, markets, Logisticsconcentrated markets problemMedia reach in HabitsVaries a lot Varies a littleNature of competition Less Lot 8. Module 1 completedProf. Raghavendran Venugopal