Page 258 - DMGT509_RURAL MARKETING

Unit 13: Rural and Urban Markets

Escorts Ltd, however, maintained its position as the third largest tractor manufacturer in Notes
the country with a sales increase of 24 per cent to 31,696 units in 2004-05.
Overall the tractor industry recorded a growth of about 30 per cent to 247,531 units in
2004-05 up from 1,91,673 units in the previous year.
Going by the current trends, market analysts forecast that the industry would touch its all-
time high level of about 2,70,000 units (recorded in 2000) in the current year.
Tractor sales, it may be recalled, fell from 270,000 units in 1999-2000 to 1,70,000 units in
2002-03. But the year 2003-04, helped by good monsoons, saw a revival in the industry,
with sales growing by 10. 5 per cent to 1. 9 lakh units.
The major factors driving the industry last year have been easy availability of finance
(with a reduction in interest rates) and good cash flow to the farmer, besides
pent-up demand over the past two-three years. The inventory position too has improved
drastically.
Question
Discuss the role of farm equipment in today’s agriculture operations and how can the
Indian farmers get to the mechanised farming at low cost. What role do the equipment
manufacturers and the government play in this regards?

13.8 Summary

 India is the world’s 12th-largest consumer market. By 2025, it is projected to be ahead of
Germany, the fifth largest, according to a recent McKinsey (2007) survey.
 The biggest strength of Indian markets lies in the size, not in individual spending.

 With the rise in income, over 291 million people will move from desperate poverty to a
more sustainable life, and India’s middle class will increase incredibly by over ten times
from its current size of 50 million to 583 million people.
 Besides urban and semi-urban areas, rural India has a huge potential.
 Indian corporations have now recognized the importance of rural markets.
 The physical boundaries of urban built-up areas often do not coincide with their
administrative boundaries.
 The firm gains a strong reputations in saving this customer group and becomes a channels
for feather products that the customer group could use.
 The firm gains a strong reputations in saving this customer group and becomes a channels
for feather products that the customer group could use.

13.9 Keywords

Behavioral Segmentation: Many marketers believe that behavioral variables occasions, behefils,
user states, usage loyalty states one the best starting points for constructing market segments.
Benefits: Buyer can be clarified according to the benefits they seek.

Buyer Readiness Stage: A market consists of people in different stages of readiness to buy a
product. Some all universe of the product, some all aware, some all informed and some derive
the product.

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