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Chapter 15.docx

6 Pages

International Business
Course Code
INTB 2200
Luming Wang

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Chapter 15: Profile of Rural Marketing 1. Fast changing pattern and demand During the last decade the rural consumers were in need for low end products which would meet their basic demands and necesities. But of lately due to change in technology rather advancement in technology the demand for people have also changed and the buying pattern which initially comprised of basic products have now shifted to luxiorous products. 2. Large and scattered market st In the 1 place, in terms of number of consumers, the rural market of India is a very large market ; it consists of more the 600 million consumers. The second aspect is that geographically, it is a vast market. Practically the role of India, barring the metropolitan cities and towns constitute the market. It is also highly scattered market: the consumers are scattered over 5,70,000 villages spread through the length and breath of the country. In terms of business generated too, it is a big market; 22000 crore rupees worth of non- food consumer goods are being sold per year in the market at present. 3. Heterogeneous market It is not as if the whole of rural India can be taken as one homogenous entity. There is a great deal of difference among the various states in this regard. A study conducted by IMRB provides some clue to the relative status of the rural areas of different states. The study provides development index points for each state in the country collected village level data on various parameters such as availability of health and education facilities, the nature of facilities, availability of public transport, electricity transmission, banks, post offices, water supply and so on. A weight was decided upon for each facility, by type, based on the relative importance of that facility in industry to the extent of development reached by that village. The study has demonstrated that while the average village in India has 33 development index points, Keralas average 88; Bihars is just 22; MP, Rajasthan and UP are close to Bihar; and states like Maharashtra, Haryana, Karnataka range between 40 and 50. 4. Demand, Seasonal and Agriculture Dependent Regarding the nature of demand for various products, it can be seen that the demand is heavily dependent on agriculture. And as a natural corollary, it is seasonal in character. It is irregular as well, since agriculture in many parts of India still depends on the vagaries of the monsoon. Rural demand is not only harvest linked but also festival linked – the festivals often coinciding with the harvest. 5. Characterised by Great Diversity The rural consumer of India are also vastly diverse in terms of religious social, cultural and linguistic factors. 6. Steady Growth Despite Inhibiting Factors Despite several inhibiting factors, the rural market of India has grown steadily through the years. This is evident from the data presented earlier. Not only has the market grown in quantitative terms, but qualitatively too, it has undergone a significant change. Many new products have made their entry in to their rural market basket. The upper segment in particular have started buying and using a variety consumer products which were till recently unknown in the rural. In fact the impression that the rural market is confined to certain traditional consumer product and agri-inputs has totally lost its validity in today’s context. Profile of Rural Consumer 1. Size of rural consumer population: The size of India’s rural consumer group can be understood from the details provided in the following table: 1971 1981 1991 Population Percentage Population Percentage Population Percentage in crores to total in crores total in crores total Rural 43.90 80 50.20 76.3 64.1 76 Population Urban 10.91 20 15.62 23.7 20.3 24 Population Total Population 54.81 100 65.82 100.00 84.4 100 The table shows that now 76% of India’s total population is rural. If we consider the state level picture, in several states like Uttar Pradesh, Madhya Pradesh, Rajasthan and Kerela, the rural population constitutes more than 80% of the total population. And there are also states like Bihar and Orissa where as much as 90% of the total population is rural. 2. Significant Aspects of Rural Consumer Profile Coming to consumer characteristics, it can be seen that in general sense, low purchasing power, low standard of living, low per capita income, low literacy level and overall low economic and social position are the traits of the rural consumers. By and large, the rural consumers of India are a tradition bound community; religio
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