1. RURAL MARKETING IN
INDIA: PROBLEMS,
PROSPECTS AND
DIMENSIONS

2. Introduction
 Mahatma Gandhi had once said:
“India's way is not Europe's. India is not
Calcutta and Bombay. India lives in her
several hundreds of villages.”

3. Rural Marketing
According to, T P Gopalaswamy,
“Rural marketing is a two-way
process which encompasses the
discharge of business activities
that direct the flow of goods from
urban to rural areas (for
manufactured goods) and vice
versa (for agriculture produce), as
also within the rural areas”.

4. Problems Faced by Rural
Marketing
 Low Literacy - There are not enough opportunities for
education in rural areas.
 Seasonal Demand - Demand for goods in rural markets
depends upon agricultural situation, as agriculture is the main
source of income.
 Transportation - Many rural areas are not connected by rail
transport. Kacha roads become unserviceable during the
monsoon and interior villages get isolated.
 Media for Promotions – Television has made a great impact
and large audience has been exposed to this medium.
Therefore, the market has to undertake specific sales promotion
activities in rural areas like participating in melas or fairs.

5.  Communication Problems - Facilities such as
telephone, fax and telegram are rather poor in rural
areas.
 Traditional Life - Life in rural areas is still governed
by customs and traditions and people do not easily
adapt new practices.
 Buying Decisions - Rural consumers are cautious in
buying and decisions are slow and delayed. They like
to give a trial and only after being personally
satisfied, do they buy the product.
 Career in Rural Market - While rural marketing
offers a challenging career, a rural sales person
should require certain qualifications and specialized
talent.

6. Scope of Rural Marketing
 Agricultural consultancy - Rural customers require proper
consultancy services about the best methods, timings and
seasons, technology, tools, prices and best markets for selling
their farming products.
 Banking, microfinance and loan facilities - The rural
market has huge potential for banking services for providing
following facilities at affordable prices:Agricultural loans,
Educational loans, housing loans, savings a/c and safe deposits.
 Healthcare - There is a huge demand for medical and health
facilities in rural markets.
 Telecomm services - Due to increased awareness and
improved telecomm infrastructure across India, the demand for
telecomm and internet services have increased drastically.

7.  Automobiles Services - There has been a huge increase in
the number of two wheeler, four wheeler and Agricultural tools
and vehicles in past few decades because of reduction in prices
and government support to the rural population.
 T.V. Channels Services - Due to the increased awareness,
and number of entertainment options like televisions and
computers due to reduced & affordable prices, the demand for
entertainment services has increased. Ex- Dishtv, tatasky, sun
direct, etc.
 Travel and reservation Services - A slight increase has also
been observed in the demand for reservation booking and
organizing services for booking train, busses, taxies, etc
 Educational and Career consultancy - The rural markets
lack adequate and quality educational services. Hence, there a
great business opportunity for any company if it is able to fill
this gap effectively.

8. Approaches to Tap the
Rural Market
 Direct selling - Through company delivery vans, syndicated
distribution between non-competitive marketers, setting up of
temporary stalls in rural melas/haats, etc. Ex-BPCL introduced specially
designed Rural Marketing Vehicle, which moved from villages to
villages to fill cylinders on spot.
 Self-Help Groups (SHGs) - The SHGs are offered chance to become
company’s local small scale distributor in the rural areas. The groups,
typically of 15 to 20 people, buy a small stock of items such as soap,
detergent or shampoo and then sell directly to consumers in their
homes. Ex- HLL’s Shakti project.
 Small packages at lower prices - HLL initiated Operation Bharat to
tap rural market by rolling out low priced sample packets of its
toothpaste, fairness cream, shampoo, cream and other products.
Similarly LPG companies have introduced small sized cylinders ensuring
that price remains in the affordable range for its rural consumers.

9.  Product promotion by communication - Since
rural areas have limited venues for entertainment,
conducting an event in rural areas can bring a good
response. Some of the interesting events that can be
conducted are Road Shows, Melas, Street Theatre,
and Film Shows and so on. Ex- Several Tractor
companies like Escort, Mahindras have successfully
employed melas, local communication to get higher
sales.
 Providing schemes, etc. - It must be remembered
that the rural consumer does not have a budget
problem. He has a cash flow problem. This is
because the village folk receive funds only twice a
year. So, in the lean season when there is a cash
flow crunch, marketers need to provide financial
products, schemes or solutions that suit the needs of
the rural population.

10. CONCLUSION
Rural marketing can also be enhanced by
developing e-rural marketing sources.
And teaching the people living in rural
areas to operate it and develop
themselves as well as the whole nation.

11. Queries...???

12. Thank you!!!!!!!!!!