Page 54 - DMGT509_RURAL MARKETING

Unit 2: Rural Marketing Environment

2.8 Summary Notes

 About 76% of the Indian people reside in rural areas.
 The Infrastructure Facilities like roads, warehouses, communication system, and financial
facilities are inadequate in rural areas.
 A more equitable distribution in rural areas would also help in slowing down the rapidly
increasing influx of people from rural to urban areas.

 The biggest thing is that there is lack of any research into the consumer behavior of the
rural areas.

 The limitation lies in the inadequate or unavailability of appropriate tools to evaluate the
rural market behavior.
 A technological break through has taken place in Indian agriculture. Rural India derived
considerable benefit from green revolution.
 The limitation lies in the inadequate or unavailability of appropriate tools to evaluate the
rural market behavior.
 Parle Agro is marketing 80% of its sale in the rural areas. Batliboi and Co. Ltd. is a leading
marketer in agricultural implements.

 The commercial banks and the co-operative have been marketing the saving habit in the
rural areas for quite some years.

2.9 Keywords

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.
Green Revolution: A technological break through has taken place in Indian agriculture. Rural
India derived considerable benefit from green revolution. Today, rural India generates 185
million tonnes of food grains per year and substantial output of various other agricultural
products.
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.
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.
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.

2.10 Review Questions

1. What are the features of Indian Rural Markets?
2. Describe the profile of the rural consumer.
3. What are the factors contributing to growth of rural marketing?

4. Explain the changing profile of rural marketing.

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