Why rural marketing is very hard today?

What is rural marketing?

While there is a large growth in the urban market, the rural or latent market is yet to be tapped, and has an enormous potential for growth. A rural market can be defined as any market that exists in a area where the population is less than 10, 000. The rural market in India is scattered and spread over a wide geographical area. Indian market is divided into urban and rural markets.

Rural marketing is hard today because

§ Low Literacy -

There are not enough opportunities for education in rural areas. The literacy level is as low (36%) when compared to all- India average of 52%.

§ Seasonal Demand-

Demand for goods in rural markets depends upon agricultural situation, as agriculture is the main source of income. Agriculture to a large extent depends upon monsoon and, therefore, the demand or buying capacity is not stable or regular.

§ Transportation –

Many rural areas are not connected by rail transport. Kacha roads become unserviceable during the monsoon and interior villages get isolated.

§ Distribution-

An effective distribution system requires village-level shopkeeper, Mandal/ Taluka- level wholesaler or preferred dealer, distributor or stockiest at district level and company-owned depot or consignment distribution at state level. The presence of too many tiers in the distribution system increases the cost of distribution.

§ 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. For example, even rich and educated class of farmers does not wear jeans or branded shoes.

§ 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.

§ Media for Promotions -

Television has made a great impact and large audience has been exposed to this medium. Radio reaches large population in rural areas at a relatively low cost. However, reach of formal media is low in rural households; therefore, the market has to undertake specific sales promotion activities in rural areas like participating in melas or fairs.

§ Career in Rural Market –

While rural marketing offers a challenging career, a rural sales person should require certain qualifications and specialized talent.

§ Cultural Factors –

Culture is a system of shared values, beliefs and perceptions that influence the behavior of consumers. There are different groups based on religion, caste, occupation, income, age, education and politics and each group exerts influence on the behavior of people in villages.