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Essay / Rural Marketing Challenges and Strategies
The concept of rural marketing in Indian economy has played an influential role in people's lives. The rural market in India is not a distinct entity in itself and is heavily influenced by the sociological and behavioral factors prevailing in the country. Rural marketing determines the carrying out of commercial activities bringing the flow of goods from urban sectors to rural areas of the country as well as the marketing of various products produced by non-agricultural workers from rural areas to urban areas. The rural market in India is large, dispersed and offers many opportunities compared to the urban sector. It covers the maximum population and regions and therefore the maximum number of consumers. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original Essay The rural market has been growing steadily over the past few years and is now even larger than the urban market. About 70 percent of India's population lives in villages. More than 800 million people live in villages in India. “Go rural” is the new slogan for marketers. Indian traders, along with multinationals such as Colgate-Palmolive, Godrej and Hindustan Lever, have focused on rural markets. So, looking at the opportunities that rural markets offer to traders, it can be said that the future is very bright for those who can understand the dynamics of rural markets and exploit them to the fullest. The research is based on primary and secondary data. data .to collect information from websites, other social media and reports about rural areas .find out how rural marketing can help improve sales. “Rural marketing is now a two-way marketing process. There is an inflow of products to rural markets for production or consumption and there is also an outflow of products to urban areas. Characteristics of the rural consumer reference group Typically, in a rural area, the reference groups are primary health workers, doctors, teachers and panchayat members. The village trader or grocer, commonly known as 'Baniya' or 'Mahajan', has an important influence in the decision-making of rural customers. A marketer must be aware of these influences which can change the consumption habits of rural customers. Profession Consumption patterns differ depending on income levels. Generally, in a rural area, the main activity is agriculture, trade, crafts, plumbing, electricity, primary health workers and teachers. Agriculture and related activities remain the main occupation of the majority of the rural population. Land is the main source of income for around 77% of the population. Media habits Rural populations are fond of music and folklore. In rural areas, popular forms of entertainment are 'Tamasha' and 'Nautanki'. And then there are television, radio and video films. Rural electrification The main objective is to provide electricity to farms and small industries in rural areas. Around 5 lakh villages (77%) have electricity supply, which has increased the demand for electricity supply, which has increased the demand for electric motors, pumps and agricultural machinery. Other Variables Culture, language, religion, caste and social customs are other important variables in profiling a rural customer. Rural consumers have many inhibitions and tend toto have rigid behavior. A company needs to be very careful when targeting them. Currently, three out of four consumers in the country are in the rural market and half of the national income is generated there. A number of companies have attempted to capture the rural market in various ways. There is no doubt that the rural market reveals opportunities and great attraction for traders. But it's not as easy as it seems at first glance. It is not that simple to enter and succeed in this market smoothly. This market poses many challenges and hence, the marketer must work hard to meet these challenges tactfully. A business considering entering and/or expanding a rural market must take these issues seriously. could well turn into a profit generator for marketers. But rural markets can be exploited by realizing them, rather than treating them as convenient extensions of the urban market. Marketing Strategy Marketers need to understand the psychology of rural consumers and act accordingly. Rural marketing involves more comprehensive personal selling efforts than urban marketing. Companies should refrain from designing products for urban markets and then marketing them in rural areas. To effectively tap into the rural market, a brand must associate it with the same things that rural people do. This can be done by using the various rural popular media to reach them in their own language and in large numbers so that the brand can be associated with the myriad rituals, celebrations, festivals, 'melas' and other activities where they congregate. One of the methods could be to use a company delivery van which can serve two purposes: it can bring the products to the customers in every nook and cranny of the market, and it also allows the company to establish direct contact with them, and thus facilitate sales promotion. . The annual 'melas' organized are very popular and provide a very good distribution platform as people visit them to make multiple purchases. According to the Indian Bureau of Market Research, around 8,000 such melas are organized in rural India every year. The practice of rural markets is to set specific days in the week, called “Haats”, when the exchange of goods and services takes place. This is another potential low-cost distribution channel available to merchants. Additionally, each region consisting of several villages is generally served by a satellite town called “Mandis” where people prefer to go to buy their sustainable products. If marketers use these feeder cities, they can easily cover a large portion of the rural population. Be very careful in choosing communication media. Only 16% of the rural population has access to a vernacular newspaper. So broadcast media must be planned to convey a good message to the rich traditional media. forms such as folk dances, puppet shows, etc., with which rural consumers are familiar and comfortable, can be used for high-impact product campaigns. Radio is also a very popular source of information and entertainment. Radio advertisements can also be a useful tool. for traders Some other strategies to follow in the Indian rural market o Decentralize rural markets by detaching them from urban bases. A bilateral give-and-take approach should replace the current one-way exploitation. o Sellers in rural markets should be chosen from amongeducated and unemployed villagers, well trained and appointed as sellers. Vendors commuting from town to village will be replaced by stationary vendors in the villages. o Companies should also adequately focus on educating villagers to protect them from spurious goods and services. Rural markets are lagging behind in acquiring new products. This will help businesses scale their marketing efforts. This will also allow stocks of expired products to be sold on urban markets. o In rural India, consumers are not brand loyal, but their purchasing habits can be termed as “brand stickiness”. Thus, greater awareness and presence of the brand in the markets will influence buyers. o It is important for any brand to test the campaign before and after its execution to understand and measure the consumption patterns of the audience. Keep in mind: This is just a sample.Get a custom paper from our expert writers now.Get a Custom EssayThe rural market has untapped potential like rain, but it is different from the urban market, it requires so different marketing strategies and the marketer must face the challenges to achieve success. in the rural market. A rural consumer looks for a good quality product at a reasonable price with an added benefit in terms of quantity of price reduction.1. Large and dispersed market: A large and dispersed market is difficult to achieve in both aspects – promotion and distribution. Rural India is spread across the county in around 6 lakh villages of various sizes, while the urban population is concentrated in around 3,200 towns. Most villages are extremely small and have fewer than 500 inhabitants. Only one percent (6,300) of villages have a population of more than 5,000. Choosing target markets and serving them effectively is a difficult task.2. Product design problem: Products sold successfully in urban markets will not necessarily be successful in rural markets due to the difference in utility value of the products. The mentality of the rural segments seems quite astonishing and different. The existence of considerable heterogeneity among the rural population poses challenges for marketers to integrate their unequal expectations into products.3. Transportation Bottleneck: Transportation is the nerve center of any type of business. Most villages are not well connected to main roads. Every year during the monsoon, thousands of villages are disconnected for a longer period. Lack of proper transportation hampers marketing activities. Agri-food products cannot be sent to marketing centers and industrial products cannot be supplied to the rural population on time and safely. In some areas, even road or railway construction is difficult to build and maintain.4. Seasonal and Irregular Demand: Rural demand is characterized as seasonal and irregular. So companies cannot focus on rural segments as it is difficult to plan. Similarly, the demand depends on the income of rural customers, and the income is quite uncertain because it depends on agriculture, and agriculture depends on monsoon.5. Uncertain and unpredictable market: Market response is difficult to adapt. They do not have stable and predictable behavior. In such a situation, effective marketing strategies make no sense. Rapid changes are difficult to integrate and, therefore, risks.