Scope of Rural Marketing

Definition

Rural: Places far away from the town or city

Rural Marketing

According to National Commission onwhich Agricultstarts with a decision to produce a saleable farm commodity and it involves all the aspects of market structure or system, both functional and institutional, based on technical and economic considerations and includes pre and post harvest operations, assembling, grading, storage, transportation, and distribution‖.

Scope of rural marketing

1.     Large Population: According to 2001 census rural population is 72% of total population and it is scattered over a wide range of geographical area

2.     Rising Rural Prosperity: Average income level has improved due to modern farming practices, contract farming, industrialization, migration to urban areas and remittance of money by family members settled abroad.

3.     Growth in Consumption: There is a growth in purchasing power of rural consumers. The average per capita household expenditure is Rs. 382.

4.     Changing Lifestyle: Lifestyle of rural consumer changed considerably.

5.     Life Cycle Advantage: The products, which have attained the maturity stage in urban market, is still in growth stage in rural market. E.g. popular soaps, skin cream, talcum powder, etc.

6.     Market Growth Rate Higher than Urban: As per the survey made by NCAER the growth rate of FMCG market and durables market is higher in rural areas. The rural market share is more than 50% for products like body talcum powder, toilet soaps cooking oil, hair oil etc.

7.     Rural Marketing is not Expensive: To promote consumer durables inside a state costs Rs one crore while in urban areas it will costs in millions.