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Unit 2: Rural Marketing Environment

of rural India. It brought about a powerful change in the environmental dynamics. It Notes
enlarged the desires as well as the awareness of the rural people.

Figure 2.5: Employment Opportunities in Rural India

4. Favorable Government Policies: As a part of the process of planned economic development,
the government has been making concerted efforts towards rural development. The
massive investment in the rural India has generated new employment, new income and
new purchasing power. In the recent years as a part of new farm policy, high support
prices are offered for farm products. Various measures like tax exemption in backward
areas, subsidy, concessions, incentives, assistance, literacy drive in rural areas has brought
rapid growth of rural markets.
5. Literacy Growth: The literacy rate is on the increase in the rural areas. This brings about
a social and cultural change in the buying behaviour of the rural consumer. They are
exposed to mass media which create new demand for goods and services.
6. Growth in Income: The rise in the income resulting from the new farming strategy is
adding meaning and substance to the growing aspirations of the rural people. Remittances
from Indians working abroad have also made a sizeable contribution to the growing rural
income and purchasing power.
7. Attraction for Higher Standard of Living: The rural consumers have been motivated to
change their consumptions habits enjoy a higher standard of living by the growing
awareness about better living and easy availability of information about the goods.
8. Marketing Efforts: Firms like Bajaj, HUL, etc., have started penetrating the rural market
realizing the rising expectations and the demand revolution in the rural India.

Notes Kirloskar and Crompton are leading rural marketers in diesel engines and
agricultural machinery. In the service sector the Central Bank and Canara Bank are the
largest banks in rural India. More and more manufacturers are turning towards rural
markets because the urban are getting saturated.

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