RETAIL & RURAL MARKETING

Submitted by,

ELDHO SAJU ,S4

Class no: 22pcm6034

Department of M.Com MIB

Mar Athanasius College (Autonomous),

Kothamangalam

RURAL MARKETING ENVIRONMENT

• For best marketing strategy, a marketer has to completely understand the rural marketing environment
• Census of India define considering that there where only villages before the development of cities and towns
• More than 649481 villages as per the census of 2011

FACTORS INVOLVED IN UNDERSTANDING RURAL MARKETING ENVIRONMENT

Occupation Pattern

Demographic Profile

Income Generation

Location of rural populations

Expenditure Pattern

Literacy level and rural demand

Land use pattern

Irrigation

OCCUPATION PATTERN

• The occupational pattern of people affects their buying behaviour

• Daily wage earner has to account for variations in income,

• Salary earner brings home an assured fixed amount

• 3/4 of rural household heads are either cultivators or wage earners,

• 3/4 of urban household heads are salary earners, petty shopkeepers and wage earners

• Cultivator's disposable income is highly seasonal, with more disposable income available immediately after the harvesting season

• Farm labourer

• Priest

• Blacksmith

• Carpenter

• Washer man

•Barber

• Shoe maker

• Potter

•Milkman

Related Workers:

DEMOGRAPHIC PROFILE

• People in this segments naturally affects their buying behaviour

• Wage earner & Salary Earner cannot behave in the same way.

• Cultivators Disposable income is high after the harvesting season

• This time they purchase more.

• To know the particular time marketing success in rural market.

INCOME GENERATION

• By sale of agricultural produce

• By sale of animal produce

• By services like, Doctor, Rendered teacher,

• By interest on investment.

• By labour and wages- Construction of roads,

bridges and building

• Govt Subsidies and grants by mortgage of

properties.

• Income of rural sector rising at a Considerable

rate.

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STRUCTURE OF RURAL INCOME DEPICTS

1.On income ladder, the top two sectors occupied by the non farm sector

Farmer should be at third place where wage earner is at the bottom.

2.Highest per capita income: rural =19514

: urban = 19407

LOCATION OF RURAL POPULATION

• Majority of rural institutions,agri marketers and rural banks are located in larger villages and towns

• Major differences in terms of occupation ,consumption and buying behaviour . Location of more than 10000 population

EXPENDITURE PATTERN

• Per capita Consumption expenditure in rural has increased four times over last 20 years

• Rural spending in non food items

• out of total per capita spending of Rs.486 only 40 % is spent on non food items.

•Rural consumers spending much more clothing, medical services, and fuel needs.

• In urban consumers Spending Rentals,education,Conveyance

LITERACY LEVEL AND RURAL DEMAND

• Lower level of education in rural sector leads to low demand for a

range of products such as: books ,magazines, pen/pencils, calculators

digital diaries etc...

• Literacy retain the rural sector has risen 23% over the last 20 years.

• By increasing literacy level also increase the demand of educational

products.

• Consumers are more mature in purchase decision.

LAND USE PATTERN

• Land Management is gaining importance because of increasing demands on land and growth of the population•

• Forest area and cultivable land percentages have increased

• Increased from 14% to 22%

• Area not available for Cultivation has reduced

• Change of mind-set of common man towards ecology, increasing greenery etc

IRRIGATION

• Indian agriculture has depended on rains

• Govt of india launches special programs for irrigation facilities.

• In Punjab and Haryana where there are enough natural resources have a good percentage of gross irrigated