Rural Marketing
By Er. Ajay Sharma
Microsoft & Google Certified

Why We Study Rural Marketing
GDP contribution
• 15% Agriculture
• 55% service
• 29% industry
• Increase in personal loan 26.3%

Role of Market information system
in Rural market
• Improved information enables farmers to plan
their production more in line with market
demand, schedule their harvests at the most
profitable time, decide to which markets they
should send their produce and negotiate on a
more even footing with traders. Improved
information also enables traders to move
produce profitably from a surplus to a deficit
market and to make decisions about the viability
of carrying out storage, where technically
possible.

Features of a Rural Market
• What do we understand by a
rural market? What
differentiates it from an urban
market?
• The rural market can be
understood as the selling and
distribution or exchange of
goods in the village or remote
areas. The following
characteristics will help us to
understand the rural market
better:

Ways of Rural Marketing

Ways of Rural Marketing
• Urban to Rural: The products manufactured in cities
such as the FMCG products, fertilizers, consumer
durables, etc. are made available in the remote areas.
This is termed as urban to rural marketing.
• Rural to Urban: The goods manufactured or grown in
rural areas or villages, including crops and other
agricultural products, handicraft items, pottery
products, etc. are sold to the consumers of urban
areas. It is known as rural to urban marketing.
• Rural to Rural: When a rural manufacturer sells
products like cattle, pottery, carts, etc. to other villages,
it is called as rural to rural marketing.

Rural Marketing Environment
• All markets exist in an external environment where the
business organizations function. The following are the
environmental factors which influence the trade practices in
rural marketing:

Reasons for Potential of Rural Market
• Why would a business invest
resources in the rural market?
How does it benefit the
organizations?
• Let us now understand the various
opportunities that a rural market
holds for business organizations
and companies:

Challenges of Rural Marketing
• Rural markets are complex and extremely different from the
regular or urban markets. Therefore, it is quite challenging for
a business to penetrate the rural market and survive in the
long run.
• To know more about the various threats of this market, read
below:

4 Mantra
• Competition
• Profitability
• Consistency
• Growth

Enabling Factors
• Media Reach
• Technology & Govt Support
• Disposable Income

4 A’s of Rural Marketing
• Whenever a company plans to
enter the rural markets, it has to
restructure its marketing
strategies to suit the needs and
requirements of rural consumers.
Since they are mostly illiterate
and belong to a low-income
group.
• Following are the various
components of 4 A, described in
the context of rural marketing:

Product Strategies

Pricing Strategies

Distribution Strategies

Promotion Strategies

Effective vs efficient advertisement
• Effective advertising provokes decisions,
but efficient advertising simply reaches
people. ... Brand advertisers just need metrics
to be in the right range, and then it's more
important to be able to scale the campaign --
to reach the right people with the right
messages.
•

BUDGET 2020 for rural market
• Allocation towards farm sector & rural Rs 2.88 lakh crore
>> Allocation to rural development and panchayati raj set at Rs 1.23 lakh crore
>> To change incentive mechanism for fertiliser use
>> Govt to provide viability gap funding for setting up agri storage
>> Nabard to map, geo-tag warehouses, cold storage
>> Unveils Kisan Udaan scheme to
>> Zero-Budget farming is govt’s focus area
>> To raise fish production by 200 lakh tonnes
>> Aims to double milk production capacity by 2025
>> To support states to implement one fruit-one district plan
>> Nabard refinance scheme to be expanded further
>> Agricultural credit availability raised to Rs 15 lakh crore
>> Financing on negotiable warehousing receipts crosses Rs 6,000 crore
>> Budget proposes to build seamless national cold storage chain
>> Comprehensive measures proposed for 100 water-stressed districts
>> To help 20 lakh farmers set up standalone pumps
>> To help 15 lakh farmers solarise water pumps
>> Budget proposes 16 action points to lift farmer’s income
>> Govt to double farmer’s income by 2022

Thanks
For More Information:
Email: mrajaysharma868@gmail.com
M: 8284972088