Prahladrai Dalmia College Of Commerce And Economics: Prahladrai Dalmia College Of Commerce And Economics Prepared by: GROUP- SYBMS / 5A PowerPoint Presentation: Difference between rural and urban marketing Roll No. Name 5 Puja Awasthi 25 Manan 33 Ajay Jain 34 Ankita Jain 41 Aakash Kakkad 57 Ruchi Mehta What is rural area ?: What is rural area ? Rural areas are the area that are not urbanized, though when large area are described country town and smaller cities will be included. They have low population density and typically much of the land is devoted to agriculture. Urbanization encroaches on rural land ,and the mechanization of agriculture has reduced the number of workers needed to work the land, while alternative employment is typically easier to obtain in cities. In parts of the developed urban sprawl has greatly reduced the areas than can be called rural What is urban area ?: What is urban area ? An urban area is characterized by the higher population density and vast human features in comparison, to areas surrounding it. Urban area may be cities, town or conurbation. Measuring the extent of an urban area helps in analyzing population density and urban sprawl. Unlike an urban area, metropolitan area includes not only the urban area, but also satellite cities. Needs of rural market: Needs of rural market 70% of India’s population lives in 627000 villages in rural area. At the highest income level there are 2.3 million urban households as against 1.6 million households in rural areas. Formal market in rural areas play an important role in improving agriculture marketing. They can: Provide a location at which farmers can meet with traders. Increase retail competition by providing a convenient place where farmers can meet with consumer Improve hygiene, if existing marketing activities are carried out in an insanitary manner PowerPoint Presentation: Improve agricultural marketing Retail facilities. Improve hygiene Reduce post-harvest losses Provide a rural focal point The problem Needs of urban market: Needs of urban market The small and intermediate sized urban center are also increasing and also have an important role as links in the ,marketing system. The international institute for environment and development (IIED) estimated that by 2000, more than 60% of the urban population of Africa, the caribbean and southeast asia were in urban centers of critical of less than half a million inhabitants. Rural population depends on these urban services, including access to trader and markets to dispose of their agriculture produce and to access the retail stores and other facilities located in local urban centers. Impact of urbanization on food security Impact of polarization on small and intermediate urban centers. Limitation of urban market: Limitation of urban market The links between producers and consumers , often direct in rural markets are, more likely to be extended through a chain of intermediary traders to reach urban market . Access, and hence tradability differs between types of livestock and their products. Where motorized transport is available, it may well prove a cheaper alternative. Transport cost are considerably higher, per tonne than they are for live animals. Challenges of rural market: Challenges of rural market Most of the products are still sold at the rural haats . There is limited awareness in the global market either about the availability of these products. The exhibition and melas are not frequent phenomena. difference between rural and urban: difference between rural and urban Rural vs urban consumers (foreign products) RURAL CONSUMER URBAN CONSUMER Consumer behavior: In rural market he thinks of in so many ways, such as money, durability, buying capacity and so on. In urban market customer thinks of brand and its updates. Consumer challenges PowerPoint Presentation: Rural vs urban market RURAL MARKET URBAN MARKET Infrastructure Facilities like electricity, roads and building, educational institution, etc are easily implemented and are available in rural market everything takes a good amount of time. Economy here the economy means, the earning capacity of rural market. The income levels cannot be a fixed one The income level are reliable. Hence they are fixed Lifestyle Socio-culture background Availability or reach Habits Competition PowerPoint Presentation: Product and services. Rural product & services Urban product and services Technical advantages Quality / Performance Wide choice of size Wide choice of model How is rural india different from urban india ?: How is rural india different from urban india ? Average levels of income in rural area is lower than urban area. Average levels of income in rural areas is lower than that in urban areas. For the purpose of comparison, the country's total population has been divided into five equal income quintiles and the average income in the highest quintile for urban areas has been assumed to be 100. Income bracket urban rural Rural Income as % of urban Q5 100 51 51% Q4 45 22 49% Q3 30 15 50% Q2 20 11 55% Q1 11 7 64% PowerPoint Presentation: Rural india Urban India Cosumption the maximum consumption in rural pattern occure around harvesting season. the bulk purchase in urban area is concentrated during festivals. Ability to pay back loan because of seasonal nature of earning, the ability of rural consumer pay back loan is lower. here it is higher. Awareness of branded product rural consumers trust domestic product more than international product thus their awareness of branded product is relatively low. consumer in urban area is more bran conscious and because of this they are more aware of branded product. Channel of communication haats , melas , mandis and mout of word are the channel used for promotion of product. television advertising and print media are the primary mean of sale promotion in urban area. Scope of rural markets in india : Scope of rural markets in india The rural india market, which accounts for nearly 70% of the total number of households in the country, witnessed a 25% annual growth in consumer durables in 2008, while the urban market reflected an annual rate of 7-10%. Large customer base- with a total population of more than 750 million, and covering around 95% of he country. Rural area have a huge customer base. Due to increase in urbanization the rural population percentage is expected to fall. Increased income levels- let’s look at some factors that will result in increased purchasing power in rural india . increase in minimum support price – increase in MSP in last couple of years have increased purchasing power in rural and semi urban areas of the country. National rural development guarantee scheme- the primary objective of NREGS is to provide gainful employment to nearly 45 million rural families that live below the poverty line. The scheme guarantees 100 days employment. PowerPoint Presentation: Sixth pay commission- 52% of the employees who benefited from the sixth pay commission live in ‘C’ and unclassified cities. Under the pay commission , the average salary has been increased by 21%. Farm loan waiver - in the last budget the government waived agriculture loans to extent of 100% for around 30 millions small and marginal farmers and 25% to the other farmers Enablers such as financing Regional rural banks have become a crucial part of the rural credit structure in India, created in 1975. Kissan credit cards ( kcc ) aim to provide credit support to farmers in rural areas. Currently, there are 72 million enrolment under kcc in rural area. Co-operative society and schedule commercial bank have also expanded their networks, which currently stands at 11,367 offices in rural area. PowerPoint Presentation: Infrastructure development – Currently, 60% of the villages are connected with road networks. As a part of the Eleventh Five Year Plan, the government plans to construct 130,000 kilometers of new rural roads and has earmarked around 30% of the total public investment for rural infrastructure development. The Pradhan Mantri Gram Sadak Yojana (PMGSY) aims to connect all villages with a population of 500 and above (250 in the case of hilly and desert areas) with all-weather roads. The target is to construct 146,000 kilometers of rural roads and upgrade another 196,000 kilometers. Telecom penetration is a fair representation of infrastructure advancement. It has increased significantly in rural areas in the last decade with these markets contributing over 70% to the total growth in the country's subscriber base. In coming years, investments in rural telecom infrastructure are expected to result in More than 250 million subscribers by FY15.