Lecture-1

Prof. S. S. Budhwar
SriSIIM, New Delhi

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 Contents

1
Introduction

2 Evolution of Rural Marketing

3 Characteristics of rural market

4
Rural Consumer

Potential for Rural Market in India

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6 Challenges in Rural Marketing
Definition:
Rural marketing is the
process of developing,
pricing, promoting,
distributing rural specific
goods and services
leading to exchanges
between urban and rural
markets which satisfies
consumer demand and
also achieves
organisational
objectives. 4
 Rural Urban

Rural
1 2

Urban
3

Rural marketing excludes Quadrant

‘4’, i.e Urban to Urban and could
include quadrant 1,2,3. Rural to
Rural is relatively simple exchange
management process. The products
made and sold in rural areas are
milk and milk products, locally
manufactured tooth powder,5 cloth,
etc.
A simple method of differentiating
rural and urban areas is to
examine the notification of
settlements as by the concerned
state Governments. The
advantage of this method is
simplicity.
The drawback of this is that
notification always does not reflect
the nature of settlement.
The constitution amendment in
1993 requires the state
Governments to notify the
settlements as Rural or Urban.
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Of the 121 crore Indians, 83.3 crore live in
rural areas while 37.7 crore stay in urban
areas, said the Census of India’s 2011.
About 70 per cent Indians
live in rural areas: Census
report 2011.
Nearly 70 per cent of the
country’s population lives
in rural areas where, for
the first time since
independence, the overall
growth rate of population
has sharply declined,
according to the latest
Census. 8
CHARACTERISTICS
 Large Population
 According to 2011 census, Rural Population
constitutes about 70% of Indian Population.
 
Year Rural Population
 
1901 89 percent
1951 83 percent
1971 80 percent
1981 76 percent
1991 74 percent
2001 73 percent
2011 70 percent In 2010 70 percent
 
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