Page 65 - DMGT509_RURAL MARKETING

Rural Marketing

Notes Self Assessment

State whether the following statements are true or false:
9. Unique Selling Propositions (USP) involve presenting a theme with the product to attract
the client to buy that particular product.

10. The buyer in rural markets should be selected from the educated unemployed villagers,
trained well and appointed as salesmen.
11. Urban marketing is thus a time consuming affair and requires considerable investments
in terms of evolving appropriate strategies with a view to tackle the problems.
12. Vertical communication to these villages is highly expensive.
13. The size of the market organization and staff is very important, to manage market system
effective control.

3.7 Need Based Production

Supply plays major role in price of the rural produce, most of the farmers grow crops in particular
seasons not through out the year, it causes oversupply in the market and drastic price cut in the
agricultural produce. Now the information technology has been improving if the rural people
enable to access the rural communication, farmers awareness can be created about crops and
forecasting of future demand, market taste. Farmers can equates their produce to demand and
supply, they can create farmers driven market rather than supply driven market. If the need
based production system developed not only prices but also storage cost can be saved. It is
possible now a days the concept of global village.

Market Driven Extension

Agricultural extension is continuously going through renewal process where the focus includes
a whole range of dimensions varying from institutional arrangements, privatization,
decentralization, partnership, efficiency and participation. The most important change that
influences the extension system is market forces. There is a need for the present extension
system to think of the market driven approach, which would cater the demands of farmers.

Processing Industry

India is the second largest producer of fruits and vegetables in the world with an annual production
of more than 110 million tones of fruit and vegetable only 1.3 percent of the output is processed
by the organized sector commercially, the reason higher consumption in fresh form. However,
as the packaging, transportation and processing capacities increase, the market for processed
fruits and vegetables is projected to grow at the rate of about 20 % per annum. 100 % export
oriented units (EOU) and Joint venture units required improving the processing industry.

Apanamandi /Kisan Mandi /Rythubazaar

There is a need to promote direct agricultural marketing model through retail outlets of farmer’s
co-operatives in urban areas. The direct link between producers and consumers would work in
two ways: one, by enabling farmers to take advantage of the high price and secondly, by putting
downward pressure on the retail prices.

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