Challenges in Rural Marketing
Posted on February 14, 2010
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Introduction
Our country has a good degree of ethnic diversity and regional levels. About three quarters of the total population lives in rural areas, and most of them depend on agriculture for their livelihoods. Agriculture contributes about 24.7% of gross domestic product (GDP) in the country. It also contributes to about 13.1% of total Indian exports. This sector employs 58.4% of its workforce and livelihood for more than 650million people. Despite this, the situation of these people do not show any significant improvement.
The development of the nation depends heavily on the development of the rural population. Mahatma Gandhi once said: "India is not the path to Europe. India is not Calcutta and Bombay. India Hundreds of lives in his village."
Potential of rural market
India is an agriculture based economy and growth in most other sectors of the economy is dominated by ruralquestions. Urban market is reaching saturation point with respect, and therefore an urgent need and to focus on rural development. In addition, over 70% of India's population lives in villages and in the constitutions of a large market for the sector as a result of increased sales and awareness.
Compared with 5161 the city only in India are 6,38,365 villages in India. Which is in itself an indication of where lies the real India. Companies are slowly realizing thatEnter to find where market leadership is to exploit the potential of rural areas. But rural India suffer from various problems. Some areas have enough money, but their level of awareness and consumerism is very low. But there are many areas where economic empowerment, education, health, etc., are big problems.
What is rural marketing
While there is a huge growth in the urban market, rural or latent market is not yet on board, and has ahuge potential for growth. A rural market can be like a market that exists in an area where the population is below 10, 000 are defined. Rural areas in India are scattered and dispersed over a large geographic area. Indian market is divided into urban markets and rural areas.
• urban market is flooded by low demand.
• witnesses to the rural market segment strong demand in rural market, which contributes more profit than the urban counterpart. Rural general tradeplans to reach customers, understand their desires, the provision of goods and services, and ultimately, to reach consumers, resulting in increased sales. The general impression is that only agricultural inputs such as seeds, fertilizers, pesticides, feed and farm machinery is a potential for growth in the rural market. There is a growing market of consumer goods now. It is estimated the rural market is growing at a rate five times in the cityappendix.
Challenges in Rural Marketing
Although the rural markets is a major attraction for marketing, it is not easy in the market and take a share of the market in a short time for the following reasons.
Low literacy
There are not enough opportunities for education in rural areas. The level of literacy is so low (36%) compared to all India average of 52%.
Seasonal consumption
Demand for goods in rural markets is dependent on agriculturesituation in which agriculture is the main source of income. Agriculture is largely dependent on the monsoon, and therefore the question whether the acquisition of skills is not stable or regularly.
Travel
Many rural areas are not associated with rail transport. Kacha roads become unusable in the rain and isolated interior villages to get.
Dissemination
An effective system of distribution requires a village-level dealer, Mandal / Taluka level preferred wholesaler or retailerdistributor or stockiest at the district level and distribution of company stock owned or shipped nationally. The presence of too many levels in the distribution system increases the cost of distribution.
Communication problems
Amenities such as telephone, fax and telegram is rather poor in rural areas.
Traditional Life
Living in rural areas are still subject to customs, and people are not new practices easy to adjust. For example, even if the rich and educatedclass of farmers are not the jeans or shoes to wear.
Purchase decisions
Rural consumers are wary of buying and decisions are slow and late. They want to give a hearing and only after they are personally happy, but they buy the product.
Media Promotions
Television has a great influence and the public is exposed to this medium. Radio when a large rural population, a relatively low price. But the size of the means of formal communication is low in rural areasfamilies, so the market is to undertake specific promotional activities in rural areas, participation in fairs or melas.
Career in rural market
While the rural market offers a challenging career, a person selling territory must request specific abilities and special talents.
Cultural factors
Culture is a system of shared values, beliefs and perceptions that influence consumer behavior. There are several groups based on religion, caste,employment, income, age, education and politics, and each group exercised a certain influence on the behavior of people in the villages.
There is a belief among people in rural areas that experience is more important than formal education and respectful, for suppliers to offer concrete solutions to their problems. Therefore it is desirable for salespeople, particularly those that have been established in cities have in-depth training includes both theoretical and practical aspects of life in the village. TheThis training will help people to join the sales market realities and sit safely in their work.
Rural market has enormous untapped potential. For a small increase rural incomes, leading to an exponential increase in purchasing power.
Future developments
The markets are able to withstand the strong competition for multinational companies, their profits in the recovery of the agricultural sector. Market share compared to the urban rural marketlow, therefore, if the Indian companies to focus on rural markets, the sales increase. The rural markets have been brought to the forefront of developments, are preparing the way for prosperity. Wealth of India lies in the prosperity of every Indian, not a rural segment must be left unused.
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