Page 34 - DMGT509_RURAL MARKETING

Unit 2: Rural Marketing Environment

About half of the rural population own or lease land to cultivate it for their livelihood. Notes
Another 27% are dependent on these cultivators for their jobs as agricultural labourers. Thus,
a total of 77% of rural population depend on land only for their living and land is their source
of living.

There are others, constituting small proportions, who are engaged in business like petty
shopkeepers or merchants and salary earners like teachers, health workers and village level
officials. The implication of this is that the income generation in rural areas entirely depends
on how the land is used, what crops are cultivated, how much is marketed, how much is
consumed and the marketing arrangements for the production. If rainfall is adequate, weather
conditions are favourable and appropriate technology is available, the rural areas prosper as
it has happened in the states of Punjab, Haryana and Western Uttar Pradesh. So the disposable
income in the hands of the rural people is very much conditioned by the status of agriculture
and other allied activities. This also indicates that major part of income generated is a source
of agriculture. 75% of income generation in rural areas is from agriculture and agriculture-
related activities.

One of the deterrents for marketers to exploit the rural market potential has been the vastness of
the rural market in terms of areas covered and the location of the rural population. It is much
easier to cater to the needs of the urban population because of their concentration, but it is very
difficult in the case of rural population because of their widespread nature.

The villages are also not uniform in size. Nearly 48% of the villages have a population of less
than 500 persons or about 100 households, which is probably of no consequence to marketers.
This may be acceptable since the proportion of population covered by these 48% of villages
account for only 12% of the total population. Yet it should be borne in mind that the people of
these villages also have land and cultivate and generate some income.
Thus the location and size of population of villages throw a challenge to marketers. This
phenomenon is not true for the whole country and there are wide variations among the different
states. In states with high irrigation and fertile lands, the concentration of population is more
when compared to states with low irrigation facilities and lack of arable land.

Figure 2.3: Literacy Levels in India

Given the distribution of rural and urban population, it can be seen that the number of literates
in rural areas are more than in urban areas. It is an interesting got note that has been a considerable
increase in the number of literate persons in rural areas since the last two decades. This has its
implications in communicating with the rural population. It appears to prove that communication
should not prove to be such a big hurdle. Today, television has proved to be an effective
medium for communication with the rural masses. The telecasting network in the country today
covers about 93% of the population.

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