Key Learning
• Definition of Rural Marketing
• Nature of Rural Marketing
• Characteristics of Rural Marketing
• Challenges in Rural Marketing
Rural Market
Rural market refers to the set of
consumers who are located in rural
area and who exhibit behaviour that is
different from the behaviour of
consumers in urban areas.
Rural Marketing
• Rural marketing is the process of developing
, pricing , promoting , distributing rural-
specific goods and services leading to
exchange between urban and rural market ,
which satisfies consumers demand and also
achieves organisational objectives.
• Rural marketing is the planning and
implementation of marketing function for the
Nature of Rural Marketing
• Role of rural marketing is more
developmental than transactional
• Process of marketing in rural areas
• Focuses on customer satisfaction with
increase in their standard of living.
• Win-win process for both institution as well
as the prospect
• Two way- rural to urban , urban-to-rural
Characteristics of Rural Marketing
Large , Diverse and
Scattered market
Low income mainly from
agriculture
Heterogeneous
market
Traditional conservative
outlook
Low literacy Rate
Diverse socio-
economic background
Poor Infrastructural
facilities
Challenges in Rural Marketing
High Distribution cost
Prevalence of spurious Brands and
Seasonal Demand
Narrow Consumption Basket
High initial market development
expenditure
Lack of proper physical
Communication facilities
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