Page 62 - DMGT509_RURAL MARKETING

Unit 3: Rural Marketing Model

 Marketers can make effective use of the large available infrastructure Notes
 Post offices - 1, 38,000
 Haats (periodic markets) - 42,000
 Melas (exhibitions) - 25,000

 Mandis (agri markets) - 7,000
 Public distribution shops - 3, 80,000
 Bank branches - 32,000

 Proliferation of large format rural retail stores which have been successful also.
 DSCL Haryali stores
 M & M Shubh Labh stores
 TATA/Rallis Kisan Kendras
 Escorts rural stores

 Warnabazaar, Maharashtra (annual sale 40 crores)

Task Discuss the influencing factors in Rural Marketing.

3.5 Problems Related to Rural Marketing

The rural market offers a vast untapped potential; it should also be recognized that it is not that
easy to operate in rural market because of several problems. Rural marketing is thus a time
consuming affair and requires considerable investments in terms of evolving appropriate
strategies with a view to tackle the problems. The problems are:

Barter System

In the developing country like India, even today the barter system i.e., exchange of goods for
goods exists. This is a major obstacle in the way of development of rural marketing.
Underdeveloped People and Underdeveloped Markets

The agricultural technology has tried to develop the people and market in rural areas.
Unfortunately, the impact of the technology is not felt uniformly through out the country. Some
districts in Punjab, Hariyana or Western Uttar pradesh where rural consumer is somewhat
comparable to his urban counterpart, there are large areas and groups of people who have
remained beyond the technological breakthrough. In addition, the farmers with small agricultural
land holdings have also been unable to take advantage of the new technology.

Lack of Proper Physical Communication Facilities

Nearly 50 percent of the villages in the country do not have all weather roads. Physical
communication to these villages is highly expensive. Even today, most villages in eastern part
of the country are inaccessible during monsoon season.

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