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.
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