Page 18 - DMGT509_RURAL MARKETING

Unit 1: Rural Marketing – An Introduction

Tracing back the evolution of commerce, we find that after the age of barter and beginning from Notes
the last decade of the nineteenth century, sales became an important discipline in business.
During that time Industrial Revolution had started in Europe, followed by Mass Manufacturing
Techniques the Assembly Line Operation, which as per experts was propagated by Henry Ford
of the Ford Motor Company. The result was increased production of Quality Goods. Hence for
most products, the supply exceeded demand. It was natural, under the circumstances that the
manufacturers had to resort to hard sell, or power selling techniques. Salesmanship became an
extremely valued profession. Successful salesmen believed that salesmen are born and people
cannot be trained to become good salesmen. And yet training for salesmanship started in right
earnest at about that time, that is in the early twentieth century.

1.9 Market Scenario in India

Changing scenario in the twenty-first century for India is due to:
1. Opening of country’s economy
2. Global competition
3. Better quality products
4. A large variety of models of same products

5. High-tech products
6. New channels of distribution
7. New channels/media for advertising

8. Educated well informed customers, who are aware of their rights
9. Complaint redress forums
In 1991, the Government of India changed the rules of the business game as follows:
1. Removal of license to manufacture for most products
2. Foreign equity allowed in industries

3. Lower rates of import duty
4. Partial convertibility of rupee
5. Lowering of importance of government/public sector business

The above resulted in several global players getting into the country with massive investments.
Later changes in governments, let to slowing down of economy and reforms and in many cases
foreign firms found that the large investments have not borne the expected results e.g. Daewoo
Motors. However with a large purchase group of some two hundred million people, the foreign
firms believe that they can yet make a profit by just persevering in India.
Lowering import duty has helped in exports as export related manufacturers could get their raw
materials imported without any problem. This has also helped foreign firms in getting their
products for Indian market, giving Indian customer the choice of a variety of goods, of better
quality.
Partial convertibility of Rupee has helped exporters in more that one way, specially by allowing
them unrestricted imports.
The public sector or government owned firms have lost their importance over the years and
now the government has put quite a few of them for disinvestments. The fact that there was a

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