1. THE RURAL MARKETING ENVIRONMENT

2. Rural Marketing – Course Plan Details
Rural Marketing Environment
Defining Rural India
Evolution of Rural Marketing
Rural Market Structure
Size of Rural market

3. DEFINING RURAL INDIA SOURCE DEFINITION
CENSUS VILLAGES + TOWNS < 5000 POP
POPN DENSITY < 400/SQ KM
75% MALES IN AGRI ACTVITY
RBI < POPN.
NABARD < POPN
PLG. COMMN < POPN.
For FMCGs focus should be on < popn areas
For durables focus on < popn areas

4. RURAL DISTRICT CONSTRUCT
Out of 593 districts, the construct is as follows :
DESCRIPTION
NOS.
URBAN COUSINS 67
RURAL ECONOMIC CENTRES
118
BASIC INFRASTRUCTURE
160
DEPRIVED
248

5. EVOLUTION OF RURAL MARKETING
PHASE I Before the 1960’s
More of foodgrains, farm equipment, pots , pans etc.
Unorganised
PHASE II 1960’s TO 1990’s
Green Revolution – modern equipment/practices
Organised companies enter above
Cooperatives/Commissions formed and promotion of handicrafts/village industries
Growing wealth – FMCGs discover rural
PHASE III-Beyond the 1990’s R U
Branded consumables Farm/non farm goods
and durables(organised) and services (unorganised)
Handicrafts, handloom, leather
(semi-organised) R U

6. DEFINING CORPORATE RURAL MARKETING
A FUNCTION WHICH MANAGES ACTIVITIES FOR :-
ASSESSING
STIMULATING
CONVERTING PURCHASING POWER INTO DEMAND FOR PRODUCTS AND SERVICES
MAKING THESE PRODUCTS & SERVICES AVAILABLE
TO CREATE SATISFACTION
A BETTER STANDARD OF LIVING
THEREBY ACHIEVING ORGANISATIONAL GOALS

7. RURAL MARKET STRUCTURE
DEMOGRAPHIC ENVIRONMENT
POPULATION UP 40% PURCHASING POWER UP 42%
5-14 YEARS – 26%; YEARS – 32%
EDUCATION AND LEVEL OF DEMAND
LITERACY UP 23%
SIGNIFICANT INCREASE IN DEMAND FOR EDUCATIONAL MATERIALS
FAMILY STRUCTURE
48% NUCLEAR FAMILIES & GETTING HIGHER
OCCUPATIONAL PATTERN
41% CULTIVATORS, 35% WAGE EARNERS & 11% SALARIED

8. DISTRIBUTION OF RURAL HHs BY INCOME
ANNUAL INCOME IN Rs.AT 1998 – 99 PRICES
INCOME CLASS
(% HOUSEHOLDS)
1998 – 99
<=35000
LOWER
67.3
47.9
LOWER MIDDLE
23.9
34.8
MIDDLE
7.1
10.4
UPPER MIDDLE
1.2
3.9
>
HIGH
0.5
3.0
TOTAL
100
Rural Annual Per Capita Income is Rs vs Rs in
Urban
Highest Rural Per Capita Income is Punjab (Rs )
Lowest Rural Per capita Income is Orissa (Rs. 5704)

9. RURAL INFRASTRUCTURE SOCIAL
Health – sub centres;22807 PHCs and 3027 CHCs
Each sub centre has 1 each multipurpose male and female worker
Each PHC has medical officer + 14 paramedics/others. Acts as referral unit for 6 SCs & has -6 beds
Each CHC has 4 medical specialists (surgeon, physician, gynaec & paed.) + 21 paramedics/other staff. 30 beds + X Ray, labour room, OT, labs. One in 4 CHCs has facilities for obstetric care and specialist consultations.
EDUCATION
12,28,501 EDU. INST.
PUBLIC DITRIBUTION SYSTEM
4.76 Lakh Fair Price Shops – cover 4 crore out of 11.2 crore HHs