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Organisation Definition Limitations
NSSO ( u rural not defined
Census) u áopulation density < 400 / Sq Km
u 75 percent of the male working
population is engaged in agriculture
uNo Municipal corporation / board

álanning u Towns upto 15,000 population are Town

Commission considered rural characteristics not
defined
 h

LG Electronics All places other than the Only clarifies what are
7 metros the cities

NABARD All locations with a Village & town

population upto 10, 000 characteristics not
considered Ə ruralƐ defined

Sahara Commercial áopulation

establishments located characteristics unknown
in areas servicing less
than 1000 population

Source: The Rural Marketing Book- Text & áractice, Kashyap. á and Raut. S (
2007)
     



 
National Commission on NGOs Corporate Rural
Agriculture Marketing Definition
Decisions to produce Marketing products Function that manages
saleable farm produced in rural areas all activities involved in
commodities involving to urban areas assessing, stimulating
all the aspects of the and converting the
market system or Marketing products purchasing power of
structure, both produced in rural areas rural consumers into
functional and in rural markets effective demand for
institutional, based on specific products and
technical & economic services to create
considerations and satisfaction & a better
includes the pre & post standard of living for
harvest operations. achieving organisational
goals.
 
  



 
Sr. No Time Frame Key Events & Trends
1 áhase One( áre 1960ƍs) uMarketing rural
products in rural and
urban areas
uAgricultural inputs in
rural areas
uƏAgricultural
marketingƐ
uFarming methods were
primitive and
mechanisation was low
uMarkets unorganised
 h

2 áhase Two ( 1960s to 1990s)
uGreen Revolution
uCompanies like
Mahindra and Mahindra,
Sri Ram Fertilisers and
IFFCO emerge
uRural products were
also marketed through
agencies like KVIC

3 áhase Three( 1990s to áresent) uDemand for

consumables and
durables rise
uCompanies find growth
in urban markets
stagnating or falling
 Features Of Rural Marketing

u Large and Scattered market

u Major income from agriculture

u Low standard of living

u Traditional Outlook

u Diverse socio-economic backwardness

u Infrastructure Facilities
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+Non Ɗfood, cash crops

+ Food Grain Crops
+Livestock & fisheries
+ On land activities
+Manufacturing &
+ Farm Activities services
 
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Sector Year Ɗ 1987 ( % share in Year -2004 ( % share in
employment) employment)

Agriculture 75 67

Transport & 2 8
Communication
Trade & Hotels 5 7

Construction 4 7

Manufacturing 7 8

Source: NSSO data, Mckinsey Global Institute Study, 2004-05

 
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u Villages having less than 500 population are falling

u Villages having 2000 + population most prosperous

u What are the implications of these trends?

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Annual Income ( Income Class 1989-
1989-90( % 1998-99 ( %
1998-
at 1998-
1998-99 Households) Households)
prices)
<= 35,000 Low 67.3 47.9

35,001-- 70,000
35,001 Low Middle 23.9 34.8

70,001 Ɗ 1,05,000 Middle 7.1 10.4

1,05,001-
1,05,001- Upper Middle 1.2 3.9
1,40,000

> 1,40,000 High 0.5 3.0

Source: National Council for Applied Economic Research, 2000

 

 
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u Underdeveloped áeople and
Underdeveloped Markets
u Lack of ároper áhysical
Communication Facilities
u Media for Rural Communication
u Many Languages and Dialects
u Low áer Capita Income