Introduction to Rural Marketing : Introduction to Rural Marketing Session – I
Xavier Institute of Management, Bhubaneswar
Why should we do this course? : Why should we do this course? Agriculture’s share in GDP is going down, but, India still lives in her villages
Urban markets are crowded and saturated
The understanding of “rural” is diffused and sometimes confusing
Is “rural marketing” different from “urban marketing” ?
Session Coverage : Session Coverage Rural India – Some definitional issues
Phases/ stages in rural marketing
Scope of rural marketing
How is rural India changing?
Schools of thought- Approaches to Rural Markets
Strategic Issues & Directions in rural marketing
Defining Rural India : Defining Rural India
Cont’d : Cont’d Source: The Rural Marketing Book- Text & Practice, Kashyap. P and Raut. S ( 2007)
Defining Rural Marketing : Defining Rural Marketing
Phases in Rural Marketing : Phases in Rural Marketing
Cont’d : Cont’d
Scope of Rural Marketing : Scope of Rural Marketing Keenly debated topic
Definitions based on organisational/ institutional vision, mission & goals
Need for a comprehensive and modular understanding
Rural Marketing is a “ work in progress”
Multi – disciplinary approach is necessary for sharper understanding
Domain of Rural Marketing : Domain of Rural Marketing To Rural Urban From Rural Urban Source: M. Jha, Rural Marketing- Some Conceptual Issues, EPW, 1988
Scope of Rural Marketing : Scope of Rural Marketing
Changes in Rural India : Changes in Rural India Diverse change levers in rural India
The “ pull of the cities & towns” – migration and its side effects
Effect of government programmes
Civil society interventions
Natural & manmade disasters
Slow but sure change
Transitions In Rural India : Transitions In Rural India Food Grain Crops
On land activities
Farm Activities Non –food, cash crops
Livestock & fisheries
Manufacturing &
services
Rural Employment Patterns( Male) : Rural Employment Patterns( Male) Source: NSSO data, Mckinsey Global Institute Study, 2004-05
Rural India – Population Trends : Rural India – Population Trends
Cont’d : Cont’d The joint family system is being replaced by the nuclear family system
The occupational pattern shows a predominance of cultivators and wage earners
Cultivators( 40.86 %) and Wage Earners( 35.28 %) according to NCAER studies (2002)
Rural Settlement & Habitation Trends : Rural Settlement & Habitation Trends Key findings from 2001 census
Population density 253/ sq kilometer and total number of villages is 638, 588
Villages having less than 500 population are falling
Villages having 2000 + population most prosperous
What are the implications of these trends?
Cont’d : Cont’d Size of villages/ habitations are changing
Role & influence of towns is changing
Social interaction is a mix of rural and urban
Let’s look at some key trends in detail
Rural Income Trends : Rural Income Trends Source: National Council for Applied Economic Research, 2000
Rural Marketing- Schools of Thought : Rural Marketing- Schools of Thought Determinist School
Activist School
What is the right approach?
Dependent on level of market development, stage in the PLC and access to resources
Amul & ITC prominent examples
No water-tight compartmentalisation
Strategic Issues & Directions in Rural Marketing : Strategic Issues & Directions in Rural Marketing Evolutionary Vs revolutionary changes in rural markets
Role of state & market forces
ICT based interventions
Partnership innovations
Developmental role of rural marketing
Scalability & replication of rural marketing programmes
ICT in Rural Markets : ICT in Rural Markets
Close of Session : Close of Session Thank You