RM
Nov2011
LPD





Places away from towns or cities.
“Group of people who are tradionalists in outlook, rooted
in land and who resist change”
RBI defines locations with populations up to 10000 as
rural, 10,000to 1,00,000 as semi urban.
As per sahara group locations having shops and
commercial establishments up to 10,000 are treated a
rural.
LG Electronics defines rural and semi urban area as all
other cities other
than the
seven metros.’
RM
Nov2011
LPD
What is Rural
Government agencies like IRDA (Insurance Regulatory
And Development Agency and NCAER (National Council
for applied Economic Research) define Rural as villages
with a population <5000 with 75% male population engaged
In agriculture etc”
Towns are actually rural areas but satisfy
The following criteria
Census
RBI
NABARD
Sahara
LG Elect.
Minimum Population>=5000
75% of the mail population engaged in
Non –agri activity
Location with population up to 10000
Considered Rural
Semi Urban 10000 to 100000
All locations upto a population of 10000
Will be considered Rural
All locations having shops/establishments’
Upto 10000 (not population related) are
Treated as Rural
The rural and semi urban area is defined
As all cities other than major metros
Concept of Rural from the perspective of marketing has
Indeed been dynamic.- gradually changed over the times
Was not India a so called Village/Rural for the world a couple of decades back
NABARD
National Bank for Agriculture & Rural Dev

It is a two way process, involving the marketing of
agricultural products from rural areas to urban
areas, and the marketing of agriculture inputs like
fertilizers, pesticides, seeds machinery,
consumables like tooth paste, soaps, cosmetics,
food items etc and consumer durables like
televisions, refrigerators, and services like postal,
communications. Transport services etc from
urban to rural areas.
RM
Nov2011
LPD


The marketing battle has shifted from cities to the
villages.
“Go Rural” seems to be the latest slogan.

Adi Godrej of Godrej soaps says “ The rural market is
not sleeping any longer we are”.

There are 42,000 rural super markets in India that
exceed the total number of retail chain stores in the
United States(35,000).
In 2001-02, the life insurance Corporation sold 55% of
its policiesRMin Nov2011
rural India.
LPD

Of the 20 lakh BSNL mobile phone
connections, 50% are in small
towns and villages.
The billing per cell phone in small
towns in Andhra Pradesh is higher
than the billing in the capital ,
Hyderabad city.
Of the 2 crore who have
signed up for rediffmail,
60% are from small towns.
RM
Nov2011
LPD
Internet access in semi urban and rural
areas has increased through the “sanchar
dhabas “ of BSNL, operating in 3617 out of
6332 blocks In the country.
 The 41 million kissan credit cards issued in
rural India exceed the 40 million credit
plus debit card issued in urban India.

RM
Nov2011
LPD

.

Urban population is concentrated in about 3,200
cities and towns, the rural population is
scattered across5,75,000 villages.

Heterogeneity is the hall mark of rural market.About
5,75,000 villages, 6 religions, 33 languages and many
diverse cultures characterize our rural markets.
RM
Nov2011
LPD
 The rural market in India is seasonal
and irregular. Dominance of agriculture
income , greater influence of marriages
and festivals on the pattern of income
are the main reasons for the seasonal
character of the rural markets.
 Consists of more than 750 million
consumers
RM
Nov2011
LPD
 All rural
consumers do not share a
common buying behavior.
 Poor and weak infrastructure.
 There is low exposure to market stimuli
in rural areas.
 Rural consumers buy on small quantities
on account of low per capita income and
limited storage capacity.
 Rural consumers are tradition bound.
RM
Nov2011
LPD
 Rural consumers resist change, urban
consumers are ready to adopt changes.
 Poor and weak infrastructure in rural
areas, well developed.
 Marketing activates are widely
scattered in rural markets, and
concentrated in urban markets.
.
RM
Nov2011
LPD
 Rural markets are untapped ,urban
markets are saturated
RM
Nov2011
LPD
 ECONOMIC
ENVIRONMENT
 SOCIAL AND CULTURAL
ENVIRONMENT
 POLITICAL ENVIRONMENT
 DEMOGRAPHIC ENVIRONMENT
 TECHNOLOGICAL ENVIRONMENT
RM
Nov2011
LPD
RM
Nov2011
LPD