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Rural Marketing

Notes Assuming that the entire urban population is covered by the television but the television, which
is only 23%, then nearly 67% of the rural population will be covered by television. Thus, television
reaches a larger segment of the rural population than any other form of mass media. Though
radio is also very popular, people like to see to believe.
The above factors point that the potential for marketing of goods and services depends
heavily on agriculture, since it is the main occupation in rural areas. The market for
agricultural inputs – fertilizers, pesticides, insecticides, tractors, irrigation equipment and
seeds – has been expanding over the years in rural areas as the Indian farming is fast becoming
market-oriented. But the rural market has remained a dark area for those manufacturing
and marketing consumables and consumer durables. To successfully exploit the potential
offered by the rural market, there is a need to first understand the rural market in terms of
the characteristics mentioned above. Only a few established companies - HUL, Lipton, Brooke
Bond, TOMCO, and P&G – have been trapping the potential of the rural market for a long
time.

Did u know? In 20 years the rural Indian market will be larger than the total consumer
markets in such countries such as South Korea or Canada today, and almost four times the
size of today's urban market. The estimated size of rural market will be USD 577 billion -
McKinsey Global Institute, May 2007.

2.2 Rural Marketing Model

Companies work marketing models before entering any market. They approach different models
to reach the target market. They work in a organised way which gives the step by step process
to implement. Depending upon the market the model may get slight change but the steps may
remain same. The process help the companies to analyze the real market and launch their
business. There should be a clarity in this so as to reach the success in the rural market. Rural
Marketing Model is explained in unit 3.
2.2.1 Rural Marketing Environment

Concept of Environment

Environment literally means the surroundings, external objects, influences or circumstances
under which someone or something exists. The environment of any organization is “the aggregate
of all conditions, events and influences that surround and effect it”.
External Environment:
1. Socio-cultural
2. Economic

3. Technological
4. Political & Legal

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