Page 249 - DMGT509_RURAL MARKETING

Rural Marketing

Notes 13.2 Parameters Differentiating Urban and Rural Markets

The market is a place where buyers and sellers exchange things. In lay man terms “It is a place
where buyers and sellers exchange goods/service for some value in return such as Money”. So
the Market is same everywhere. But, the difference is in the consumer behaviour. There will be
different buyers in each market. This is because of different factors which Influence them. So the
same way there is a difference between Rural and Urban Market. The factors are so many to
define. There is a difference in all the marketing Variables. That is where most of the companies
approach with different Marketing Mix and Strategies to Rural Market. The strategies differs
from the urban to rural market. The companies which have understood the phenomena of rural
market have succeeded in the market, For example, HUL, ITC, Colgate, Rajdoot Motorcycle. These
companies have done a perfect home work and Implemented in terms of effort and Operations.
These companies approach shows that there is a difference between Rural and Urban Market.
The Differences can be Infrastructure, Economy, Lifestyle, Socio-cultural Background, Availability
or reach, Habits, Competition, Consumer Behaviour.
Infrastructure: The facilities like Electricity, Internet, Roads and Buildings, Educational
Institutions, Financial Institutions, Communication and Organised Market , Other Facilities
differs in urban and Rural market. In urban everything gets implemented soon and Availability
is also there. Where as in rural market everything takes a good amount of time.

Economy: Here the Economy means, the earning Capacity in a rural market. The cost of living
always depends upon their way of earning. So, the income levels are unreliable, as most of them
are depended upon the seasons and agriculture. So the income levels cannot be a fixed one.
Lifestyle: The Lifestyle, that is living pattern of both the markets differ a lot. This can be important
factor which influences the companies to think of when they approach rural market.
Socio-cultural Background: Due to the illiteracy level, and Culture adaptability from long time
the rural market always gets differ than the urban market. The superstition and other belief as
well as the way of thinking towards products and goods differ in these two markets.
Availability or Reach: Due to the areas which are diverted Geographically and Heterogeneous
market the reach is very difficult. The logistics for rural market is a tough task than to reach the
Urban Market.
Habits: The daily routine of the people makes them to cultivate different habits. Apart from due
to the awareness is low in Media terms there will be a difference in the habits. Competition:
The competition in the market for brands and Companies always differ. As in rural markets it is
always the channel Partner and Retailer plays a vital role. But where as in Urban Market Brand
Plays a great role.
Consumer Behaviour: Last but not least, the consumer behavior is the task for the task for the
companies. The mindset of the rural consumer is completely different from Urban Consumer.
The Mindset of the consumer is different. For example, in urban market , to buy Electronic Item
the customer thinks of Brand and its updated feature. where as in rural market he thinks of in so
many ways, such as money, Durability, Buying Capacity and so on. So these mindset makes a
difference in both markets. So these are the differences in the rural market and urban market.
Those companies which have understood have done well.
13.3 Difference in Consumer Behaviour in Rural and Urban Markets

To understand the brand switchover behavior the migrants were asked to mark their current
brand and the previous brand of personal care products. This was done to analyze whether there
is any change in the usage of personal care products.

244 LOVELY PROFESSIONAL UNIVERSITY