Changing Scenario of Rural Marketing – A Review

Indian Journal of Applied Research, Volume 6, Issue 2, February 2016

3 Pages Posted: 3 Feb 2016

See all articles by Dr. Bilas Kale

Dr. Bilas Kale

Dr. Babasaheb Ambedkar Marathwada University

C. Chobe

Dr. Babasaheb Ambedkar Marathwada University

Date Written: February 1, 2016

Abstract

Indian rural market is attractive as well as challenging. It offers s huge opportunities to the marketers as it is in developing stage and account 80 percent consumers. The lifestyles of rural consumers have undergone wonderful changes due to growing incomes, increasing literacy rate, exposure TV and interaction with the urban counterpart. Liberalization of trade, on one side, opened up new vistas to the marketers and on the other side, posed stiff competition. The present paper is an attempt to understand changing consumption habits of rural consumers, significance of rural marketing, its problems and prospects and to make some possible suggestions.

Rural marketing has certain problems. Poor and inadequate infrastructure i.e. roads, storage facilities, communication facilities, small size of outlets etc. badly affect the distribution of products to rural consumers. In addition, the literacy rate in rural India is much lower which creates communication deficiency. Illiterate consumers are more prone to fraudulent tactics of greedy marketers. The degree of consumer awareness in rural areas is too lower. Rural economy still depends on gambling of monsoon and there are considerable fluctuations in income which have deep impact on purchasing power of rural people. Rural indebtedness has been serious problem which enforced more than 5000 farmers to embrace suicidal deaths in the last five years. This is clear indication towards faulty rural credit supply system. Rural women still has no major role in purchasing.

Rural marketing in India is meant considering the needs and requirements of 80 percent population and fulfilling their needs timely, adequately and at the price affordable to them. In recent years, demand for agriculture inputs has grown significantly. Special efforts are made to boost industrialization in rural areas. Rural development programmes and welfare schemes have been contributing significantly in upgrading the standard of living of rural people. Information and communication technology (ICT) is instrumental in disseminating the information about various products in remote rural areas, albeit the process is slow. Rural consumers are adopting urban lifestyles. It has resulted in ever increasing demand for white goods in rural areas. There is shortage of drinking water but you can find Pepsi soft drinks in tiny rural outlets. Dhoti–Kurta has been replaced by pant shirts. Cosmetics are in great demand in rural markets. Modernization of agriculture and rapidly growing rural industries are responsible for increased demand for capital goods. In the changing business scenario world over, rural marketing is the most preferable destination to the marketers.

Keywords: Rural Marketing, Rural Consumer, Rural marketing strategy

JEL Classification: D12, D13

Suggested Citation

Kale, Bilas and Chobe, C., Changing Scenario of Rural Marketing – A Review (February 1, 2016). Indian Journal of Applied Research, Volume 6, Issue 2, February 2016, Available at SSRN: https://ssrn.com/abstract=2726587 or http://dx.doi.org/10.2139/ssrn.2726587

Bilas Kale (Contact Author)

Dr. Babasaheb Ambedkar Marathwada University ( email )

Dr B A Marathwada Univercity Compound
University Campus, Samarth Nagar
Aurangabad, Maharashtra 431001
India

C. Chobe

Dr. Babasaheb Ambedkar Marathwada University

Dr B A Marathwada Univercity Compound
University Campus, Samarth Nagar
Aurangabad, Maharashtra 431001
India

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