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    Rural and Agricultural Marketing: Amity Business School

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    Arshdeep Siingh
    The document discusses rural and agricultural marketing. It covers key functions of rural marketing including assessing purchasing power, stimulating purchasing power, converting purchasing power, and achieving organizational goals. It outlines challenges in rural marketing such as lack of communication facilities, low literacy rates, and dispersed populations. The document also examines the rural market structure, agricultural input and output marketing, differences between transactional and development marketing, and differences between rural and urban marketing approaches.

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    Rural and Agricultural Marketing: Amity Business School

    Uploaded by

    Arshdeep Siingh
    57 views22 pages
    The document discusses rural and agricultural marketing. It covers key functions of rural marketing including assessing purchasing power, stimulating purchasing power, converting purchasing power, and achieving organizational goals. It outlines challenges in rural marketing such as lack of communication facilities, low literacy rates, and dispersed populations. The document also examines the rural market structure, agricultural input and output marketing, differences between transactional and development marketing, and differences between rural and urban marketing approaches.

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    4540dRural Environment

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    The document discusses rural and agricultural marketing. It covers key functions of rural marketing including assessing purchasing power, stimulating purchasing power, converting purchasing power, and achieving organizational goals. It outlines challenges in rural marketing such as lack of communication facilities, low literacy rates, and dispersed populations. The document also examines the rural market structure, agricultural input and output marketing, differences between transactional and development marketing, and differences between rural and urban marketing approaches.

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    57 views22 pages

    Rural and Agricultural Marketing: Amity Business School

    Uploaded by

    Arshdeep Siingh
    The document discusses rural and agricultural marketing. It covers key functions of rural marketing including assessing purchasing power, stimulating purchasing power, converting purchasing power, and achieving organizational goals. It outlines challenges in rural marketing such as lack of communication facilities, low literacy rates, and dispersed populations. The document also examines the rural market structure, agricultural input and output marketing, differences between transactional and development marketing, and differences between rural and urban marketing approaches.

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    of 22

    Amity Business School

    RURAL AND AGRICULTURAL


    MARKETING

    RAM Pooja sehgal tabeck


    1
    Amity Business School

    • Rural Marketing ,Corporate view


    • Functions that manages
    » Assessing purchasing power
    » Stimulating purchasing power
    » Converting purchasing power
    » Create satisfaction
    » Better standard of living
    » Achieving organizational goals

    RAM Pooja sehgal tabeck


    2
    Problems in Rural Marketing Amity Business School

    Lack of proper communication facilities: Over 2 lakh villages in


    the country have no access to telephone
    Transport: Many rural areas are not connected with rail
    transport. 50% of the rural roads are poorly surfaced.
    Many languages and Dialects: Even though the recognized
    languages are 16, the dialects are estimated to be around 850
    Highly dispersed market: Seven Indian states account for 76% of
    the countries rural retail outlets.
    Low per capita income: Even though about 33-35% of GDP is
    generated in the rural areas it is shared by 74% of the population.

    RAM Pooja sehgal tabeck


    3
    Amity Business School

    Low level of Literacy: Because of this reason print medium


    becomes ineffective
    Choice of brands is less:

    Challenges in Rural Marketing

    1. Generic Competition
    2. Competition with the Unorganised sector
    3. Entry into the market.
    4. Meeting the challenges created by competitor

    RAM Pooja sehgal tabeck


    4
    Going Rural Amity Business School

    • Urban Push factors


    • Competition and Saturation in Urban markets
    • Changing Lifestyles
    • Rural Pull factors
    • Rising Affordability
    • Growing acceptance
    • Increasing demand for products
    • Purchase upgrades

    RAM Pooja sehgal tabeck


    5
    Amity Business School
    Some impressive facts about the rural sector
    There are 42,000 rural supermarkets (haats) in India that exceed
    the total no. of retail chain stores in the US (35,000)
    Of the 20 lakh BSNL mobile phone connections, 50% are in
    small towns and villages.
    In 2001-02, the LIC sold 55% of its policies in rural India
    Of the 2 crore who signed up for Rediffmail, 60% are from small
    towns.
    Internet access in semi urban and rural areas has increased
    though the ‘Sanchar Dhabas’ of BSNL, operating in 3,617 out of
    6,332 blocks in the country
    41 million Kisan Credit Cards issued in rural India exceed the 40
    million credit plus debit Pooja
    RAM cards.sehgal tabeck
    6
    Rural Market Structure Amity Business School

    • Demographic Environment
    » Population
    » Education
    » Household pattern
    » Rural housing pattern
    » Occupational Pattern

    • Physical Environment
    » Scattered and Clustered

    • Economic environment
    » Per Capita income
    » Saving Pattern

    RAM Pooja sehgal tabeck


    7
    Amity Business School

    • Social and Cultural Environment


    » Village community
    » Caste system

    • Political Environment
    • Technological environment

    RAM Pooja sehgal tabeck


    8
    AGRICULTURAL MARKETING
    Amity Business School

    OUTPUT
    INPUT MARKETING
    MARKETING

    CONSUMABLE DURABLE
    INPUTS INPUTS
    Fertilizers Tractors
    Seeds Transportation equipments
    Feed Farm animals
    Packing Materials

    RAM Pooja sehgal tabeck


    9
    Amity Business School

    Challenges in marketing of agricultural inputs


    • Numerous intermediaries
    • Lack of adequate infrastructural support
    • Absence of structured network for informational flow
    • Dependence of environment
    • Sharp fluctuation in prices
    • Lack of pest control
    • Fragmented landholdings

    RAM Pooja sehgal tabeck


    10
    Amity Business School

    RAM Pooja sehgal tabeck


    11
    Framework for Market for Inputs
    Amity Business School

    • Agronomic Potential
    • Agro-economic Potential
    • Effective Demand
    • Actual Consumption

    RAM Pooja sehgal tabeck


    12
    Transactional Vs Development Amity
    marketing
    Business School

    Concept Consumer Social orientation


    Orientation
    Role Stimulating & Catalytic &
    conversion transformational
    agent
    Focus Product market fit Social change
    Nature of activity Commercial Socio-cultural

    Key task Product innovation Social innovation


    & communication

    RAM Pooja sehgal tabeck


    13
    Transactional Vs Development Amity
    marketing
    Business School

    Concept Consumer Social orientation


    Orientation
    Participants Corporate Government
    agencies voluntary
    agencies
    Communication Functional Developmental
    Goal

    RAM Pooja sehgal tabeck


    14
    RURAL Vs URBAN MARKETING
    Amity Business School

    Urban Rural

    Philosophy Integrated innovative Development with


    relationship inclusive growth

    Views About Buyer looks for style, Looks for quality


    Customers novelty and quality products

    Development Limited to CSR Partnering with


    Strategy NGOs and private
    organizations

    RAM Pooja sehgal tabeck


    15
    Rural Vs Urban Marketing
    Amity Business School

    • Approaches by Marketers

    • Trickle down approach


    – Rural householder buys his wares from nearby town
    – Urban culture approximates to the culture of the west at
    aspiration level. Similarly rural culture come closes to
    urban one.
    – Paradigms and tools of urban market can be extended to
    rural areas
    • Undifferentiated approach
    • Differentiated approach
    RAM Pooja sehgal tabeck
    16
    Integrated-Innovative –Inclusive Amity Business School

    Approach
    4P’s Urban sales
    (Urban)

    TRICKLE
    DOWN
    Rural Market IMAGE
    Development

    4P’s Rural Sales


    (Rural)

    RAM Pooja sehgal tabeck


    17
    Phases of Rural Marketing Amity Business School

    • Phase -I

    Time Nature Major Source Target


    Period products market Market

    From Agricultural Agricultural Rural Urban


    Independence Marketing
    to Green
    Revolution

    RAM Pooja sehgal tabeck


    18
    Phases of Rural Marketing Amity Business School

    • Phase -II

    Time Nature Major Source Target


    Period products market Market

    Green Marketing of Agricultural Urban Rural


    Revolution to Agri Inputs
    pre-
    liberalization
    period

    RAM Pooja sehgal tabeck


    19
    Phases of Rural Marketing Amity Business School

    • Phase -III

    Time Nature Major Source Target


    Period products market Market

    Post- Rural Consumables Urban and Rural


    liberalization Marketing and durables Rural
    period in 20 for
    century consumption
    and production

    RAM Pooja sehgal tabeck


    20
    Amity Business School

    • Undifferentiated Approach
    – Same Strategies can be use to attract both markets.
    – Rural markets can be attracted to buy the products offered to
    urban consumer by making them available to at nearest point of
    purchase.

    – Suitability: This approach was adopted by FMCG


    companies offering products to middle and lower end
    markets.

    RAM Pooja sehgal tabeck


    21
    Phases of Rural Marketing Amity Business School

    • Phase -IV

    Time Nature Major Source Target


    Period products market Market

    From Agricultural Agricultural Rural Urban


    Independence Marketing
    to Green
    Revolution

    RAM Pooja sehgal tabeck


    22

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