CU-BBA-SEM-III-Rural Marketing

BACHELOR OF BUSINESS ADMINISTRATION SEMESTER-III RURAL MARKETING BBA114

CHANDIGARH UNIVERSITY Institute of Distance and Online Learning Course Development Committee Prof. (Dr.) R.S.Bawa Pro Chancellor, Chandigarh University, Gharuan, Punjab Advisors Prof. (Dr.) Bharat Bhushan, Director – IGNOU Prof. (Dr.) Majulika Srivastava, Director – CIQA, IGNOU Programme Coordinators & Editing Team Master of Business Administration (MBA) Bachelor of Business Administration (BBA) Coordinator – Dr. Rupali Arora Coordinator – Dr. Simran Jewandah Master of Computer Applications (MCA) Bachelor of Computer Applications (BCA) Coordinator – Dr. Raju Kumar Coordinator – Dr. Manisha Malhotra Master of Commerce (M.Com.) Bachelor of Commerce (B.Com.) Coordinator – Dr. Aman Jindal Coordinator – Dr. Minakshi Garg Master of Arts (Psychology) Bachelor of Science (Travel &Tourism Management) Coordinator – Dr. Samerjeet Kaur Coordinator – Dr. Shikha Sharma Master of Arts (English) Bachelor of Arts (General) Coordinator – Dr. Ashita Chadha Coordinator – Ms. Neeraj Gohlan Academic and Administrative Management Prof. (Dr.) R. M. Bhagat Prof. (Dr.) S.S. Sehgal Executive Director – Sciences Registrar Prof. (Dr.) Manaswini Acharya Prof. (Dr.) Gurpreet Singh Executive Director – Liberal Arts Director – IDOL © No part of this publication should be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of the authors and the publisher. SLM SPECIALLY PREPARED FOR CU IDOL STUDENTS Printed and Published by: TeamLease Edtech Limited www.teamleaseedtech.com CONTACT NO:01133002345 For: CHANDIGARH UNIVERSITY 2 Institute of Distance and Online Learning CU IDOL SELF LEARNING MATERIAL (SLM)

First Published in 2021 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The authors of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event the Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. 3 CU IDOL SELF LEARNING MATERIAL (SLM)

CONTENT Unit - 1: Rural Marketing Introduction ..............................................................5 Unit - 2: Rural Market Environment And Infrastructure ..................................... 18 Unit - 3: Classification Of Rural Markets ........................................................ 61 Unit - 4: Rural Marketing Index...................................................................... 77 Unit - 5: Rural Marketing Strategies................................................................ 87 Unit - 6: Rural Marketing Research ............................................................... 114 Unit - 7: It In Rural Marketing ..................................................................... 147 Unit -8: Rural Consumer Behavior ................................................................ 161 Unit - 9: Rural Marketing Policies ................................................................ 188 Unit - 10: New Product Development For The Rural Market ............................. 205 Unit - 11: Rural Market And Product Life Cycle ............................................. 219 Unit – 12: Role Of Financial Institutions In Rural Marketing ........................... 231 4 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 1: RURAL MARKETING INTRODUCTION Structure 1.0 Learning Objectives 1.1 Rural Marketing Introduction 1.2 Rural Markets in India 1.3 Characteristics of rural markets 1.4 Profile of rural consumers 1.5 Summary 1.6 Keywords 1.7 Learning Activity 1.8 Unit End Questions 1.9 References 1.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Define the nature of a rural market  Identify scope of marketing in rural areas  Evaluate the characteristics of rural consumers 1.1 INTRODUCTION The concept of rural marketing in India is as a rule been found to create uncertainty inside the minds of people who think provincial marketing is all approximately rural marketing. Be that as it may, rustic marketing decides the completing of commerce exercises bringing inside the flow of items from urban segments to the rural regions of the nation moreover as the showcasing of different items manufactured by the non-agricultural specialists from country to be urban zones. To be exact, Rural Marketing in Indian Economy covers two wide areas, to be specific – Offering of agrarian things inside the urban areas and Selling of made items inside the rural regions. The Recorders of Companies totally different states chiefly oversee, the rural market in India brings in greater incomes within the nation, as the provincial locale contain of the greatest customers in this nation. The rural market in Indian economy creates nearly more than half of the country’s earnings. Rural marketing in Indian economy are frequently classified beneath two wide categories. These are: The advertise for customer goods that contain of both durable and non-durable 5 CU IDOL SELF LEARNING MATERIAL (SLM)

products and the agricultural inputs that incorporate fertilizers, pesticides, seeds, and so on. The major characteristics of Rustic Promoting in India are recorded below: With the start of shifted country development programs there are an upsurge of business openings for the rural poor. One of the greatest causes behind the steady development of country advertise is that it isn't abused additionally however to be explored. The rural market in India is tremendous and scattered and offers a plenty of openings as compared to the urban sector. It covers the most extreme populace and districts and in this manner, the most extreme number of consumers. The social station of the agricultural regions is unstable since the wage level and literacy is greatly low nearby the extend of conventional values and superstitious beliefs that have continuously been a genuine hindrance inside the movement of this sector. The steps taken by the govt of India to start appropriate water system, infrastructural advancements, avoidance of flood, awards for fertilizers, and different plans to cut down the poverty level have progressed the condition of the provincial masses. The concept of Rural Marketing in India Economy has continuously played an powerful part within the lives of individuals. In India, clearing out a couple of metropolitan cities, all the districts and industrial townships are associated with country markets. The country advertise in India creates greater incomes within the nation as the country locales include of the greatest buyers in this nation. The provincial showcase in Indian economy produces nearly more than half of the country’s wage. Rural marketing in Indian economy can be classified under two broad categories. These are: i. The market for consumer products that include of both durable and non-durable goods ii. The market for agricultural inputs that incorporate fertilizers, pesticides, seeds, and so on The concept of rural marketing in India is frequently been found to shapes uncertainty within the intellect of individuals who think provincial marketing is all around agrarian promoting. Be that as it may, rural marketing decides the carrying out of business exercises bringing within the stream of merchandise from urban divisions to the rural regions of the nation as well as the marketing of different items made by the non-agricultural specialists from provincial to urban areas. To be precise, rural marketing in India Economy covers two broad sections, namely: i. Offering of rural items within the urban areas ii. Selling of made items within the rural regions the rural market in India isn't an isolated substance in itself and it is profoundly affected by the sociological and behavioral variables working within the nation. The rural population in India accounts for around 627 million, which is precisely 74.3 percent of the overall population. Conceptually, rustic promoting isn't significantly distinctive to urban marketing. Marketing manager must perform the same errands, but in an unexpected way in provincial marketing. It can be said that showcasing isn't diverse, but markets (buyers and users). 6 CU IDOL SELF LEARNING MATERIAL (SLM)

In rural marketing, a firm must experience marketing endeavours to fulfill rural segments, which strikingly vary from urban sections in a few perspectives. At the same time, we must note that expanding proficiency rate, improved sources of pay, awareness due to made strides and expanded implies of communication and transportation, high rate of portability inside and between nations due to liberalization and globalization, and numerous other such reasons, a few customers are likely to be identical. Even, many rural customers appear catholic! So, one can find clients of diverse conduct designs inside a town or a town. Within the same way, most of items are commonly utilized in both urban and rural areas. In a few viewpoints, both rural and urban customers carry on in homogeneous design. A few Indian customers have gotten to be global and cosmopolitan! Definitions: ‘Rural marketing’ is comparative to basically ‘marketing.’ Rural marketing differs as it were in terms of buyers. Here, target market comprises of clients living in country ranges. In this way, rustic promoting is an application of marketing basics (concepts, standards, forms, hypotheses, etc.) to rural markets. 1. Let us characterize the term in basic way as: Rural marketing concerns with arranging and actualizing marketing programs (frequently referred as promoting techniques or essentially 4P’s) for rustic markets to attain promoting goals. 2. In more specific words: Rural marketing may be a handle of creating, estimating, advancing, and dispersing provincial particular products and administrations driving to desired exchange with rural customers to fulfill their needs and needs, additionally to attain organizational objectives. 3. Marketing efforts stay same, as it were critical perspective is sort of buyers. So, the term can be characterized as: When marketing activities are attempted for provincial fragments, it is turned as provincial promoting and the administration is called rural marketing management. 4. Since showcasing director needs to carry out comparative errands. So, definition of marketing expressed by American Marketing Affiliation can be similarly applicable in connection to rural segments. We'll add only particular word ‘rural’ to characterize the term: Rural marketing could be a handle of arranging, and executing the conception, estimating, advancement, and conveyance of thoughts, merchandise, and administrations to make trade (for rural segments) that fulfill person and organizational objectives. (Only the word ‘rural’ has been included to the definition embraced by the AMA. The word infers that marketing activities are embraced in country ranges to fulfill rural segments.) 5. More particularly, it can be said: Rural Marketing implies to deliver items (goods and services) for the rural customers and to form fundamental course of action to supply them. 7 CU IDOL SELF LEARNING MATERIAL (SLM)

6. At final, we are able say: Rural marketing is the marketing for the customers residing in rural areas. It includes planning marketing program (4P’s) to reach at wanted trade with the rural customers that fulfills their needs and wants. Rural advertise is getting an significance since of the immersion of the urban advertise. As much appreciated to the competition inside the urban market, the advertise is more approximately immersed as most of the capacity of the buyers has been focused on by the marketers. So the marketers are seeking out for extending their item categories to an unexplored market that's the rural market. This has also led to the CSR exercises being done by the company to help the poor people achieve a few riches to spend on their item categories. Here we are going consider HLL (presently, HUL) activities inside the rural India. One of such extend is that the Project Shakti, which isn't as it were making a difference their company attain a few income but too making a difference the poor ladies of the town to attain some money which is verifiably getting to extend their obtaining control. Too this will increase their brand dependability as well as acknowledgment in that range. Additionally we will think of the ITC e-chaupal, which is making a difference the destitute ranchers get all the data around the climate as well as the market cost of the food grains they are producing. In other see these activities moreover are making a difference the businesses increment their brand value. So since it is given over the significance of the agricultural market has expanded much obliged to the immersion of the urban market too as in such conditions the company which is able lead the way will be profited as appeared by the victory and ITC initiatives. In later a long time, rural markets have obtained importance in nations like China and India, since the generally development of the economy has come about into substantial increment inside the obtaining power of the rural communities. On account of the Green Transformation in India, the rural ranges are expending expansive amount of mechanical and urban made items. In this setting, an extraordinary marketing technique, specifically, rural marketing has taken shape. Some of the time, rural marketing is confounded with agricultural marketing – the afterward indicates marketing of create of the rural areas to be the urban consumers or industrial shoppers, while rustic marketing includes delivering fabricated or prepared inputs or administrations to provincial makers or buyers. Too, once we consider the situation of India and China, there's an image that comes out, tremendous marketplace for the developed items too since the work support. This has driven to the alter within the mentality of the marketers to move to these parts of the world. Rural India buys little packs, as they are seen as value for cash. There's brand stickiness, where a buyer buys a brand out of propensity and not truly by choice. Brands rarely fight for market share; they only got to be obvious inside the proper put. Indeed costly brands, like Close-Up, Marie rolls and Clinic Cleanser do well due to profound dispersion, numerous brands do well without much publicizing back – Ghadi, a big detergent brand in North India, is an example. The Indian rural market incorporates a gigantic 8 CU IDOL SELF LEARNING MATERIAL (SLM)

request based and offers awesome openings to marketers. Two-thirds of Indian buyers rest in rural areas and nearly half the esteem is produced here. The reasons for heading into the rural areas are reasonably clear. The urban buyer strong commercial center for items like colour TVs, washing machines, refrigerators and air conditioners is growing annually at between 7 per cent and 10 per cent. 1.2 RURAL MARKETS IN INDIA The Census characterizes urban India as - \"All the places that drop inside the authoritative limits of a municipal corporation, municipality, cantonment board etc. or have a population of a least of 5,000 and have a least of 75 per cent male working population in outside the primary sector and have a populace thickness of a least of 400 per square kilometer. Rural India, on the inverse hand, comprises all places that aren't urban!\" The government of India as it were characterizes a non-urban market. An urban market is that the one which highlights a populace thickness of 400 individuals per sq/km. 7% of its populace has need to be included in non-agricultural exercises and there's a civil body. In case we pass measurements, generally around 70% of the Indian population lives inside the rustic zones. That’s nearly 12% of the planet population. The National Commission on Agriculture has characterized a provincial market as “Decisions to deliver saleable farm commodities including all the viewpoints of the market framework or structure, both useful and organization, based on specialized & financial contemplations and includes the pre & post-harvest operations.” NGOs define a country showcase as “Marketing items delivered in rural areas to urban regions AND Promoting items created in rural ranges in rural markets.” Corporate Country Showcasing definition recommends that it could be a Work that oversees all exercises included in surveying, fortifying and changing over the acquiring control of rural consumers into effective demand for particular products and administrations to make fulfillment & a better standard of living for accomplishing organisational goals. Rural Markets during COVID 19 Pandemic in India Within the wake of keeping up social distancing amid the exchange of rural deliver in the midst of COVID-19 widespread, the Division of Agriculture, Government of India has composed to the state governments to advance ‘Direct Marketing’ to encourage agriculturists, agriculturist maker organizations (FPOs) and cooperatives whereas offering to bulk buyers, big retailers and processors. The Middle has also issued advisories to require care of social removing inside the mandis to halt the spread of Coronavirus. Recently, Union Agriculture Serve Narendra Singh Tomar has sent a letter to the chief ministers of states repeating the require for coordinate promoting through cooperatives and FPOs and energized all the partners and ranchers to receive this prepare. The Department too issued an counseling to the states to advance coordinate showcasing without demanding for licensing strategies and encourage the farmers in convenient promoting of farm produce. 9 CU IDOL SELF LEARNING MATERIAL (SLM)

 In arrange to decongest wholesale markets and to zest up the accessibility chain, taking after two modules under National Agriculture Market (e-NAM) are introduced: FPO Module: FPOs can straightforwardly exchange with e-NAM entry. They can transfer deliver points of interest from collection centers with picture and quality parameter and profit the bidding office without physically getting to the mandis. Warehouse Based Trading Module: Farmers can offer their create from Warehousing Improvement and regulatory office (WDRA) enrolled distribution centers informed as considered advertise, and do not physically bring the deliver to the closest mandis. Various states have received coordinate promoting and taken a few measures:  Karnataka exempted Cooperative Institutions and FPOs within the state for locks in in wholesale trade of rural create exterior the market yards;  Tamil Nadu exempted advertise charge on all informed rural produce  Uttar Pradesh allowed trading in e-NAM stage from farm-gate and advanced issuance of bound together permit to processors for direct purchase from ranchers conjointly permitted FPOs to embrace procurement operations of wheat;  Rajasthan permitted coordinate marketing by dealers, processors and FPOs. In expansion, thereto, Essential Agriculture Credit Social orders (PACS)/ Huge Region Multi-Purpose Agreeable Social orders (Lights) in Rajasthan are pronounced as considered markets.  • Apart from People, firms, and handling units, Madhya Pradesh has permitted to set up private buy centres exterior the market–yard to buy specifically from ranchers with an application charge of Rs. 500/- only.  Himachal Pradesh, Uttarakhand and Gujarat have too permitted coordinate marketing without prerequisite of any licence.  Uttarakhand has declared distribution center, cold storage and handling plants as sub- mandis. • Uttar Pradesh government has as of late relaxed the rules and standards for announcing warehouses and cold stockpiles as market-yards.  Impact of Coordinate Marketing Rajasthan has issued very 1,100 marketing licenses to processors amid lockdown period wherein farmers have as of now begun offering on to the processors. Out of very 550 PACS pronounced as market-yards in rustic zones, 150 PACS got to be useful for marketing and town dealers are performing exchange transactions successfully.  Due to market fee waiver in Tamil Nadu, it had been watched that dealers have favored to shop for the deliver from farmers from their farm-gate. In Uttar Pradesh, coordinate linkages are set up by FPOs with farmers and traders subsequently providing their deliver to buyers in cities which spared wastages and straightforwardly benefitted the farmers. Encourage, the state has facilitated in building up linkages with FPOs and Zomato nourishment conveyance app in this manner guaranteeing smooth distribution of veggies to consumers. 10 CU IDOL SELF LEARNING MATERIAL (SLM)

1.3 CHARACTERISTICS OF RURAL MARKET Generally around 12 percent of the world’s population is living in rural India. Agreeing to 2014 World Bank Report, 67.63 percent of Indian populace lives in rural areas. Within the year 2010, Indian rural population was approximately 70 percent. After 2010, there has been a continuous decay within the rural population in India. Rural India accounts for 64 percent of add up to consumption and 1/3 of add up to investment funds. On the one hand, Quick Moving Customer Products industry is developing. On the other hand many companies feel that the urban markets are saturated. Most of the driving companies are presently attempting to target rural markets. Till exceptionally as of late, per capita wage of country populace is generally around Rs. 60,000. Due to the activities like least bolster cost, provincial business ensure conspire, expendable income of provincial populace has begun expanding. But the increment in wage isn't that exceptional. Be that as it may, rural India has its own impossible to miss sets of issues. More obvious issues are poor framework, poor education framework, and nonexistence of appropriate communication framework. Besides, the rural villages are scattered over a wide topographical zone. More than 65 percent of the towns have less than 1,000 individuals. One more quirk of country population is interesting social hones and conviction frameworks. Since of little and scattered country towns, big retail organizations discover it exceptionally troublesome to run their trade financially. In spite of the fact that rural market is said to have colossal possibility, it isn't free from impossible to miss issues. Desires, recognitions, and participation of provincial customers are completely different compared to urban population. The rural market takes after the Jajmani framework which could be a self-sufficient economy system. It rotates around the agriculturists who claim arrive. There are ‘Specialist castes’ who give administrations to the ranchers and to each other. Be that as it may, this framework is beneath grave risk due to urbanization that gives relief from misuse. Hence the town economy is in a move stage. • The rural markets are of differing nature. There are individuals from assorted social, etymological and devout foundation. No two markets are alike and it is scattered over India. • Shift towards rural markets are basically since of saturation and competitiveness of urban market. Marketers don't need to disregard this gigantic undiscovered market. • The salaries of provincial clients are too expanding. The expendable wage of provincial shoppers has expanded and they spend on FMCG and buyer durables. Cable television has also contributed to an increase in life style. The reach has increased and marketers are in a position to promote their products much more easily • The rural markets contain of 3 Major Sorts of Markets, namely, • Consumer market – It includes marketing of consumables such as food, toiletries, beauty care products, materials & pieces of clothing as moreover of durables such as observes, bikes, TVs, radios, two wheelers etc. 11 CU IDOL SELF LEARNING MATERIAL (SLM)

• Institutional advertise – It includes promoting of items such as rural inputs, creature nourishment, fishnets, fuel as well as durables such as tractors, pump sets, boats. • Services advertise – It includes showcasing of administrations such as keeping money, protections, credit, communication etc. Figure 1.1 Consumer Price Index (CPI) across rural and urban India in June 2019, by state and union territory Internet access however, in Indian rural sector remains an unfulfilled challenge. 12 CU IDOL SELF LEARNING MATERIAL (SLM)

Fig 1.2 Internet access in Rural India by frequency 1.4 PROFILE OF RURAL CONSUMERS The normal salary for male representative in country zone was the most noteworthy amid the months of April to June 2019 at approximately 13.7 thousand Indian rupees. Female laborers gotten lesser compensation than male specialists, the male laborers earned about 1.4 to 1.7 times the profit of a female specialist. The average salary drawn by female specialists was the most elevated within the months of October to December 2018. As per IMRB (Indian Advertise Investigate Bureau) and NCAER “(National Committee for Connected Financial Inquire about) provincial shoppers profile is: • Proficiency: 23% of provincial Indian populace is literate and individuals are getting included to this list year after year. There are still a few towns which are immature. Most extreme instruction is essential school or in a few cases tall school. To this group the promoting limited time methodology to be received is show of item highlights and points of interest. Print media and blurbs don't make any impact. • Pay: An normal rural consumer features a much lower pay than his urban counterpart. The expendable pay has expanded within the later a long time to significant degree. In show disdain toward of this, the common characteristics of rural consumers are moo obtaining control, moo standard of living, moo per capita wage and moo financial and social positions. 13 CU IDOL SELF LEARNING MATERIAL (SLM)

• Thickness: Rural population is scattered over 7 lakh towns. This infers that rural request is scattered and urban request is concentrated. • Influencers: There are numerous reference bunches in a town. These incorporate instructor, specialist, panchayat members, wellbeing laborers, bank supervisor and co-operative board laborers. These influencers ought to be kept in intellect when an advertiser chooses on rural marketing. • Occupation: Main occupation is horticulture. The measure and possession of arrive decides the premise for separation and utilization patterns. • Culture: Provincial buyers are conventional in their viewpoint. They relate faster with messages that coordinate their cultural behavior. • Language: English isn't a dialect of rural India. Consequently an advertiser ought to aim for communication within the neighborhood language. • Media Habits: Tv, radio, video and theater are a few of the conventional media that a rural customer distinguishes with. Classification of rural consumers The rural consumers are classified into the taking after bunches based on their financial status: The Well-off Gather: They are cash rich farmers and a really few in number. They have reasonableness but not form a request base expansive sufficient for promoting firms to depend on. Wheat farmers in Punjab and rice shippers of Andhra Pradesh drop in this group. The Center Lesson: This is often one of the biggest sections for made merchandise and is quick extending. Farmers developing sugar cane in UP and Karnataka drop in this category. The Destitute: This constitutes a colossal fragment. Obtaining control is less, but quality is more. They get the awards from government and procure the benefits of numerous such plans and may move towards the center course. The farmers of Bihar and Orissa drop beneath this category 1.5 SUMMARY  Indian rural market features a vast size and request base. Provincial showcasing includes the method of creating, estimating, advancing, distributing country particular item and a benefit leading to trade between rustic and urban showcase which fulfills buyer demand and also accomplishes organizational targets. As portion of arranged financial improvement, the government is making persistent endeavors towards rustic advancement in spite of worldwide widespread. • The increment in rural purchasing control is reflected in numerous ways. Rural livelihoods have been developing at more than 7 percent over the past few a long time, making a difference to account for nearly 40 percent of India’s add up to utilization of merchandise and services6. Non-food uses are developing at an 8.2 14 CU IDOL SELF LEARNING MATERIAL (SLM)

percent yearly compound rate. Rustic family units are obtaining a wide extend of products—cars, flat-screen tvs, microwaves—that until as of late would have been past their reach. A few mechanical divisions have seen shocking development coming from rural customers. Fifty percent of incomes from the quick moving buyer products (FMCG) segment presently come from provincial sales7. Within the case of the telecom sector, endorser base within the semi-urban and provincial markets (Circle C geographies) has developed at a marvellous 98 percent over the final five a long time in comparison to other circles speaking to metros and urban markets 1.6 KEYWORD  Urban market: a advertise which highlights a population thickness of 400 individuals per sq./km. 7% of its population has ought to be included in non- agricultural exercises and there's a metropolitan body. In the event that we pass insights, generally around 70% of the Indian population lives inside the country regions. That’s nearly 12% of the planet population.  Rural Market: The National Commission on Agriculture has characterized a provincial advertise as “Decisions to create saleable cultivate commodities including all the angles of the market system or structure, both useful and regulation, based on specialized & financial contemplations and incorporates the pre & post-harvest operations.”  NGOs characterize a provincial showcase as “Marketing items created in rural zones to urban zones AND Promoting items delivered in provincial ranges in rural markets.” 1.7 LEARNING ACTIVITY 1. Define affluent group in rural Indian context. ___________________________________________________________________________ ___________________________________________________________________________ 2. What do you understand by different profile of consumers? ___________________________________________________________________________ ___________________________________________________________________________ 1.8 UNIT END QUESTIONS A. Descriptive Questions 15 Short Questions 1. Define rural market. CU IDOL SELF LEARNING MATERIAL (SLM)

2. Define urban market. 3. Who plays the role of influencers in rural market? 4. Share any 2 trends in rural India that are advantageous for marketing products. 5. What is the literacy level in rural India? Long Questions 1. Define the term rural marketing in the Indian context. 2. How are rural consumers classified as? 3. What are the characteristics of a rural market? 4. ‘Internet access however, in Indian rural sector remains an unfulfilled challenge’. Explain. 5. Critically analyse the present state of rural marketing in India. B. Multiple choice questions 1. Indian economy is predominantly dependent on ______________ and allied activities a. Agriculture b. Construction c. Business d. Education 2. NGOs define NGOs define a rural market as “Marketing products produced in rural areas to urban areas and _____________________________. a. produced in rural areas to rural markets. b. produced in urban areas to rural markets. c. Both (a) and (b) d. None of the above 3. Which of the following is not a type of rural market? 16 a. Consumer b. Institutional c. Service d. Government CU IDOL SELF LEARNING MATERIAL (SLM)

4. Which of the following statements is not true? a. The government of India does not define a rural area b. There is no unique or absolute definition of a rural area c. Urbanization is leading to increase in rural areas d. All rural markets have same features 5. A feature of rural marketing is the large and ____________ market. a. attractive b. neat c. limited d. scattered Answers: 1-a, 2-a, 3-d. 4-d, 5-d 1.9 REFERENCES References book:  Marketing and Salesmanship–II Dr. Mahesh Kulkarni, Dr. Pramod Biyani, Dr. Ravindra Deshmukh, Dr. Sunil Joshi Nirali Publication Website  www.statista.com 17 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 2: RURAL MARKET ENVIRONMENT AND INFRASTRUCTURE Structure 2.0 Learning Objectives 2.1 Introduction 2.2 Challenges 2.3 Components of Rural markets 2.4 Classification of rural markets 2.5 Summary 2.6 Keywords 2.7 Learning Activity 2.8 Unit End Questions 2.9 References 2.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Explain the underlying marketing concepts with reference to the Unit topic  Apply generic marketing concepts to rural market context  Get familiarized with variables peculiar to a rural market  Rural marketing Environment and its Challenges 2.1 INTRODUCTION Rural Marketing is exceptionally significant work within the display situation. The firm’s environment characterizes its dangers and opportunity. A framework may be a set of objects, parts, components components that are interrelated and interacting with one another. Each framework is objective situated and does not exist in isolation. The environment is complex experiencing nonstop and in some cases cataclysmic alter. There's each great reason to accept that the rate of alter within the organization must adjust ceaselessly to the changing environment. A inactive firm faces extinction; an versatile firm will survive and probably provide humble development indeed contribute to the changes taking put within the environment. ‘Environment’ implies everything that's outside to the organization which encompasses an undertaking. It is the sum total of outside components inside which the endeavor works. It is made up of substantial and intangible variables both controllable and wild. The rural marketing itself may be a framework that guarantee free flow of products 18 CU IDOL SELF LEARNING MATERIAL (SLM)

from makers to shoppers to meet measurement of time, put, cost quality etc. The marketing framework is made up of components items or administrations cost put and promotion. 1. Social Environment 2. Economic Environment 3. Ethical Environment 4. Political Environment 5. Physical Environment 6. Technological Environment. Social Environment: The social environment, social setting, sociocultural setting or milieu refers to the prompt physical and social setting in which individuals live or in which something happens or creates. It incorporates the culture that the person was taught or lives in, and the individuals and teach with whom they associated. Economic Environment: The economic environment relates to all the economic determinants that impact commercial and customer compliance. ‘The term economic environment demonstrates to all the outside financial circumstances that influence acquiring hones of clients and markets and subsequently impact the generation of the business.’ As a component of financial transformations, the Government of India announced a unused mechanical framework in July 1991. The broad characteristics of this framework were as follows: • The Government diminished the number of ventures underneath obligatory permitting to six • Many of the businesses held for the open division beneath the beginning arrangement, were advocated. The reason of the open division was characterized as it were to 4 businesses of crucial importance • Disinvestment was conducted in case of numerous open segment mechanical companies • Policy towards remote stores was extended. The rate of remote value association was expanded and in numerous wanders, 100 percent Foreign Direct Investment (FDI)was allowed • Automatic approval was presently given for innovation exchanges with outside firms • Foreign Venture Advancement Board (FIPB) was set up to back and channelise outside financing in India Ethical Environment: Environmental ethics could be a department of ethics that thinks about the connection of human creatures and the environment and how morals play a part in this. Environmental ethics accept that people are a portion of society as well as other living animals, which incorporates plants and creatures. In environmental philosophy, environmental ethics is an built up field of viable logic \"which recreates the basic sorts of argumentation that can be made for ensuring common substances and the economical utilize of common assets.\" Political Environment: Political Environment is the state, government and its educate and legislations and the open and private partners who work and connected with or impact the framework. The political environment ought to be great and exceptionally steady for a firm to function effectively. Political Environment shapes the premise of trade environment in a 19 CU IDOL SELF LEARNING MATERIAL (SLM)

nation. In case the approaches of government are steady and superior at that point businesses would get affected in a positive way and bad habit versa. Changes in government frequently comes about in changes in approach. Physical Environment : the part of the human environment that includes purely physical factors (as soil, climate, water supply) Technological Environment: Technological environment alludes to the state of science and innovation within the nation and related viewpoints such as rate of mechanical advance, organization courses of action for improvement and application of modern innovation, etc. Agreeing to the well known financial analyst J.K. Natural innovation, green innovation or clean innovation is the application of one or more of natural science, green chemistry, natural observing and electronic gadgets to screen, demonstrate and moderate the natural environment and assets, and to control the negative impacts of human association. Rural Marketing Environment implies the openings and dangers accessible before the marketers whereas advancing their deals exceptionally especially within the rustic ranges. On the off chance that the marketers are concentrating both in provincial as well as urban markets, they can commonly handle rural and urban natural dangers in a positive way. For case, whereas paying assess, Government is giving assess benefits or in some cases charge occasions (i.e., exempted to pay charge) to the corporate that are beginning their generation unit in country areas. This is fair since to move forward rural work openings, their pay and by and large rural success. In the event that a producer builds or shifts their generation put to rustic range, he/she can profit the charge advantage. In this way, one of the major natural dangers (i.e., obligation to pay colossal corporate charge) can be overcome and will reflect within the diminished generation fetched. At the same time, provincial natural risk such as – moo proficiency level, reach of media, etc., can be tackled by targeting urban consumers. In genuine circumstance, it is exceptionally troublesome to conduct Strength, Weaknesses, Opportunities and Threats (SWOT) investigation in this environment since of the visit events of changes. Marketers, who are prepared to require compelling steps to alter their promoting plans and techniques, will succeed in this changing environment. Rural promoting structure incorporates the different sorts of situations which are exceptionally imperative and to be caught on by the marketers who need to sell their items within the country areas. Demographic Environment: Developing population isn't a sign for developing market unless they have impressive obtaining control. By and large, individuals between the age gather of 15-35 are the biggest utilization gather for numerous products. More especially, consumers who falls within the age bunch of 20-35, accounts nearly 25% of India’s add up to utilization. In the event that the 20 CU IDOL SELF LEARNING MATERIAL (SLM)

corporate equip up their marketing policies to pull in the individuals underneath the age bunch of 35, they can effectively tap about 70% of rural potential. Education and Literacy Level of Rural Women and Youth: Luckily, here moreover, the alter is taking put and the rural education rate is risen about 25% over the final two decades. The improved literacy rate normally leads to the development of request for instruction situated items like – write, pencil, scratch pad and electronic goods such as – advanced journals, calculators, etc. It too increases the rustic work openings, expendable wage and at long last rural acquiring control for a few items within the segments of shopper durables as well as FMCG. So, the development in rustic proficiency level, comes about in noticeable alter for the advancement of country people’s socio-economic status. In spite of the fact that the Central and State Governments have actualized numerous plans, extreme disciplines etc., to halt childhood marriage, keep absent from instruction to young ladies, killing female child at the organize of birth itself, etc., shockingly, these traditions are still exist in numerous states of India such as – Bihar, Haryana, Rajasthan, Tamil Nadu, Uttar Pradesh and so on. These are all fair since of higher absence of education level among rural people and especially need of education level among rustic women. But the country youth instruction and literacy level appears a great advance and affluent country India. Here, the commitment given by both State and Central Governments to make strides country youth proficiency rate is recognizable one. This development in youth education level increases the request for cutting edge, elegant, current drift items among the more youthful generation. Moreover it increases the brand awareness of country shoppers for different items (national and worldwide level). Marketers can make genuine endeavors to capture these grown-ups gather (falls within the age gather of 20-35), for their items such as aromas, two- wheelers, western outfits, etc., which accounts about 25% of India’s utilization. Density of Population: In spite of the fact that the rural population has come down over the a long time, there has been impressive increment in genuine terms of add up to number of country population. In the event that we compare the rustic extent to add up to population within the past three decades, it is slightly decreasing. But still the whole number of provincial population is expanding in an impressive manner. Rural Housing: One can effortlessly survey the economic status and development of any segment with the assistance of lodging design they have. Over the decades, there has been marvelous alter within the drift of lodging design. Individuals are appearing interest to move from less changeless (semi-pucca) sort of houses to more changeless (pucca) sort of houses. In the decade of 1980s, kuccha and semi-pucca houses were more when compared with the more permanent houses. Fair 22% of houses as it were felt within the category of pucca houses. In 21 CU IDOL SELF LEARNING MATERIAL (SLM)

1990s, 31% of houses were within the type of pucca and the remaining were within the sort of semi-pucca and kuchha houses. Within the thousand years decade, the more changeless natured pucca houses hits more than 40 % of country houses (around 50 million houses) and the rest 60% of lodging sort cumulates both semi-pucca and kuchha. In this also, kuchha type of houses accounts as it were 23% (when compared with past decades, these sort of houses are taking after down) and the adjust 36% may be a small bit made strides semi-pucca and pucca houses and to reduce kuccha houses. Rural Household Pattern: Rural family design comprises of family structure and lodging design. In country zones too, Indian convention joint family framework is gradually goes down and the atomic family culture is spreading alike within the urban areas. Family Structure: Different sorts of family structures are existing within the statistic India. These can broadly be classified based on the number of family units in a family beneath two bunches to be specific; Joint family and Atomic family. Again taking after the same classification design, atomic family can be partitioned into two sorts such as – atomic family with seniors and without elders. Joint Family: Gather of individuals (grand-parents, guardians, their brothers and sisters, their children) living together and utilizing common property and staying house. By and large, the senior individual is the head of the family and he is capable to create choices in all issues. Nuclear with Elders: It may be a shrieked frame of big joint family. It comprises of grand-parents, guardians and their children alone (not living with parent’s brothers and sisters’ family). Here, moreover last choice is taken by the senior individual. This need of person choice making capacity is one of the major marketing obstacles for the marketers while advancing their items in towns. Nuclear without Elders: Typically the precise nuclear family which is commonly seen in urban segment Father, mother and their children (these days, not indeed children as it were with single child) is the overall family individuals and they can take person choices in all matters. Recently, one more diverse sort of atomic family framework is rising in India. In this framework, all are living in a huge common house but, having isolated kitchens, reserve funds, assets/properties, etc. Occupational Patterns: Rural and allied activities are the most occupation for the country individuals. An united action incorporates Cultivation, Forestry, Fishery, Creature Cultivation (dairy, poultry, and 22 CU IDOL SELF LEARNING MATERIAL (SLM)

goat), Floriculture etc., the ordinary needs of the villagers are too met by numerous other sorts of occupations. In country division, Agri-based occupation can be diverse sorts. The occupations which can be generally seen in the villages are: 1. Farm laborer 2. Milkman 3. Washer man 4. Pot maker 5. Blacksmith 6. Barber 7. Carpenter 8. Cobbler 9. Priest 10. Weaver. Other rural occupation which are non-agricultural and support agricultural requirements and the rural people in their daily life are: 1. Village doctor 2. Policemen 3. Traditional village nurse 4. Anganwadi workers 5. Teacher 6. Peon 7. Grocer 8. Mechanic 9. Cyber cafe owner 10. Vendors 11. Agricultural experts 12. Electricians etc. Census of 2001 reports that, this Agri-based word related slant is gradually changing and a progressive move towards non-Agri based work has been taken put. As per the NSSO Rounds Study, for the year of 1999-2000, provincial India’s Essential segment workforce 23 CU IDOL SELF LEARNING MATERIAL (SLM)

accounts for 76.1%, Auxiliary segment 11.3%, Tertiary segment 12.5% and at last non-farm segment hits 23.8%, which is another to the Essential division. Economic Environment: There's a tremendous growth in rustic Indian economy. The higher income lesson within the rural sector has nearly grown six times. There's an increase within the rustic per capita salary moreover. Let’s get it the advance. Income Generation: The occupation design reveals the wage era design moreover. From the Table 3.7, we are able discover out more than 40% of country individuals are locked in in agricultural and allied exercises. Following taken after by the wage workers, compensation workers, and little shop attendants and so on. In case we compare with urban sector, rural sector hits exceptionally small rate of experts and businessman. In differentiate, about 40% of urban individuals are winning customary pay rates and fair 3.45% of individuals alone locked in in farming and related activities. Wage workers and little shop guardians comes within the moment and third put individually which is comparative within the rural segment and taken after by the artisan, businessman etc. Expenditure Pattern: In case we compare the availability of disposable salary within the hands of rustic and urban populace, by and large less is with the rustic people. The rustic populace is investing more than half of their wage on food things. In case we especially analyze their extent of consumption on nourishment things, about 33% is spended on cereals and the rest alone is high-roller on all other food things such as – drain and milk-based items, vegetables, consumable oil, refreshments and others, etc. If we compare with the use design on non-food things of urban people, approximately 41% alone accounts within the country division. Here, the major extent of rustic individuals investing on fuel and light is about 21% of add up to use on non-food items. Saving Pattern: As the time is changing the winning, utilization and sparing design of the Indian shoppers are also changing. The investigate made by Middle for Large scale Buyer Investigate (CMCR) of the National Committee of Connected Economic Research (NCAER) reports that there will be quick move of 42% within the pay level of the rustic families by 2015. This would ended up conceivable due to the improvement in agribusiness, and other exercises like construction, retail, trading, etc. There could be a gigantic dramatic change within the country segment with a alter with the shift within the wage profit and the utilization designs of the rustic customers. But there's a gigantic difference between the wage era and utilization design among the different states of country India. Bridging this gap may be a huge challenge for the marketers and government. 24 CU IDOL SELF LEARNING MATERIAL (SLM)

The consider assist reveals that the beat 44% of the family units within the nation right now have 93% of the country’s overflow salary. Encourage it states that indeed the foot 60% of family units have 40% of add up to family expenditure. This appears the utilization control of the rustic buyers who are at the foot of the pyramid. Thus, for any marketer it is inevitable to disregard the provincial buyers who are at the foot of the pyramid. Poor instruction is another figure that influences the estimate of the provincial work drive. As it were 14% of the rustic populace have a graduate and over as a chief bread winner accounting for over 28% of the full family wage. Hence, the instruction figure straightforwardly joins to the development of the pay level of rustic households. Rural people are moreover getting to be mindful of sparing their wage amid the crisis situation. Based on a few inquire about it has been detailed that around 81% of the country family units spare a parcel of their expendable wage for the longer term. Since of their reserve funds for long term more than 50% of the rustic families are exceptionally sure approximately their consistent and shinning future. Physical Environment: Indian arrive could be a blend of both residential arrive as well as development arrive. But unfortunately, urban side development arrive too gradually utilized for family reason such as developing industrial facilities, apartments, buildings, multiplexes and so on. In differentiate with the urban side, the rustic development arrive is still used for the agriculture purpose. Distinguishing Features: Rural land may be a combination of development arrive and cultivate houses. Farmers normally live in their own farm houses and those houses falls within the category of kuchha in general. If we watch Indian towns, development of houses are majorly based on Devout, Caste and Relationship. A few illustrations are – Agraharam – colony of Brahmins, Vysiyar Road – Vaishyas dwelling put and partitioned colony for Planned Caste and Planned Tribes. Scattered and Clustered Settlement: Rural India is definitely connected with towns and towns. Most of the towns are nothing but the created towns and they have Districts rather than Panchayats. But still, other traits such as reliance on week by week haats, mandis and melas for buying and selling of goods in towns are as same as within the villages. People in towns are included in different employments, such as – instructors, officers, experts, businessmen, ranchers and so on. All in spite of the fact that they have diverse occupations, able to basically bunch them beneath two categories like, steady compensation workers and unsteady or sporadic wage earners. Other Major Macro Environments: As India is developing and has more openings for the lower-income bunch. In case we take the information from the past ten a long time, the lower-income bunch moved to higher- income group. 25 CU IDOL SELF LEARNING MATERIAL (SLM)

Land Distribution: It has been clear that about 75% of wage from country zone is created through horticulture and partnered exercises. Arrive is the fundamental asset for all agriculture based exercises. Arrive which is an unrecognized resource has changed the living fashion and demeanor of ranchers. Rural people appreciate the closeness with nature, soil, creatures and other characteristic things. Land can be classified in numerous ways such as: Land Based on Topography: i. Plains ii. Plateaus iii. Hills iv. Mountains. Land Based on Use: i. Cultivable land ii. Uncultivable land iii. Land for public infrastructure iv. Forest land. Land management is getting to be exceptionally critical due to extend in request for arrive since of development in Indian population. So, arrive conveyance plays an imperative part within the dispersion of country pay. Extent of families and developed region beneath different arrive holding designs in country area. If we watch, roughly 80% of possessions accounts for 39% add up to arrive developed and the adjust 20% of property accounts for 61% of arrive. It appears the uneven dissemination of arrive and eventually leads to the uneven wage conveyance. In rural areas, less number of families as it were falls within the higher salary bunches when compared with the bigger lower pay groups’ category. From the marketer’s point of see, this is often exceptionally important circumstance who is managing with rural inputs. Since not at all like the common request for agro-inputs (such as – fertilizers, pesticides etc.) independent of pay level or streams, tough inputs like tractors, control tillers, etc., may have more request from higher salary bunches only. One more thing to be taken note here is the number of possessions is expanding. In the event that we compare the arrive property design with the past three to four decades, about 70% of increment is influenced due to the truth of subdivision and fracture framework which is broadly spread in rural areas. Indeed in spite of the fact that the overall utilization of rural division surpasses urban division, person family utilization is comparatively less. Marketing efforts ought to be 26 CU IDOL SELF LEARNING MATERIAL (SLM)

equipped up to cater about 100 million rustic families. Hence, the country showcase is characterized by ample disparities in utilization levels. Land Use Pattern: In the event that we watch our arrive utilize design, from the full development region, roughly 74% is possessed by nourishment crops and as it were 26% is possessed by non-food crops. This circumstance clearly exhibits the over the top reliance on nourishment crops instead of non-food commercial crops. It is since of the farmer’s attitude towards nourishment security i.e., they utilized to hold adequate amounts of generation for their claim utilization and the rest alone goes – to the market. Take the nourishment crops such as rice, wheat, vegetables etc., as example whose maintenance amount is assessed about 50%. In differentiate, the complete generation of non-food crops goes to the showcase without discernible extent of maintenance like nourishment crops. For illustration, nearly the complete generation of cotton, sugarcane, groundnut, etc., are promoted. This has an suggestion in era of expendable income. In common, large ranchers are able to produce satisfactory expendable livelihoods since they can develop nourishment as well as non-food, commercial crops with the assistance of adequate arrive holding design. But the little agriculturists are in a position to develop as it were nourishment crops that as well in a small amount and are able to generate little expendable income. So, the marketers doubtlessly appear intrigued to target the huge rural farmers. Besides this circumstance is gradually changing due to the introduction of most recent innovations within the agrarian division for the result of tall abdicate such as, tall surrender seeds, cross-cultured seeds, pesticides, etc. Irrigation: Irrigation plays a vital part whereas expanding the possibility of country showcase. Really, in rural segment, numerous unused advances were actualized in irrigation as it were such as energized pump sets and so on to move forward the by and large surrender and economy. To progress the irrigated region, numerous sorts of speculation plans like minor, medium and major are persistently surrounded and executed by the Government. For case, states like Gujarat, Madhya Pradesh and Maharashtra are anticipated to flood approximately 19 lakh hectares of arrive from the extend Sardar Sarofar Venture over stream Narmada. We will imagine the thriving of ranchers in these recipient states. The major source of irrigation is wells taken after by canals. About almost 40% of net edited zone is from roughly 80 million hectares of net flooded region. The vital point to be famous here is, still about 60% of rural India is subordinate on precipitation for their agrarian activities. Anyway, numerous steps have been taken and major and medium level water system ventures too started to improve the rustic water system potential. One more imperative plot propelled by the Government within the year of 2005 was ‘National Venture for Repair, Redesign and Reclamation of Water Bodies’. It basically centers on the 27 CU IDOL SELF LEARNING MATERIAL (SLM)

restoration and expansion of water bodies capacity capacities and recouping and expanding their misplaced potential. ‘Drip Irrigation’ program was propelled to cover more zones beneath water system. Right now, around three lakh hectares are beneath dribble water system in different states of India and an incredible scope to amplify this strategy beneath the setting of contracting ground water supply. So, it is exceptionally clear that the accessibility of water system offices leads to the higher innovation advancement and at last comes about within the expanded efficiency, salary and progressed rustic acquiring control. Socio-Cultural Environment: It is exceptionally troublesome to characterize a clear boundary for the distinguishing proof of socio-cultural contrasts in a nation. Since each nation has diverse society and commonwealth which as well changes from locale to locale. It moreover changes between sub-regions, distinctive religious, caste and community bunches. So, a few common components have been grouped together to make socio-cultural regions. The major factors which are utilized to develop diverse socio-cultural districts in an environment are: i. Sociological variables – It cumulates the habits, tastes, way of life and inclinations of different buyers. The social structure and changes within the constitutions impacts these in a huge way. ii. Anthropological variables – Presence of regional cultures and sub-cultures plays a transcendent part here. iii. Mental variables – It incorporates the consumer’s attitude, intrigued, identity and intellect set. These psychological variables impact more within the by and large buying conduct of consumers. Sales limited time plans, offering and conveyance procedures, promoting are all impacted more by the over said variables. So, the marketers are utilizing these socio-cultural locales as a measuring stick for their market segmentation and targeting purpose. In a nutshell, able to conclude that the urban environment appears degrees of homogeneity over the socio-cultural districts, though the rural environment completely differs. Values and Beliefs: Values are nothing but hereditary characteristics and straightforwardness is the most fixing. It is standard to regard senior citizens and touch their feet as to look for their endowments. Events or celebrations request a parcel of support in terms of rangoli drawing, diyas and an cluster of yummy treats made within the bona fide variety as per the caste and geography. Hindu customs are a lot about tune and move and each family has a normal way to alter to these formats. It may be a custom to implore to the Goddess of learning Maa Saraswathi to realize victory. Essentially, commerce individuals continuously demand on drawing the Swastika which marks thriving and adore the Goddess of wealth. 28 CU IDOL SELF LEARNING MATERIAL (SLM)

The values in India are around living life with an eagerness and watching the conviction that there's one God existing in spite of so numerous religions. Regarding older folks, understanding cross culture conventions, free blending to accommodate tolerance, remaining fascinated by rustic welfare are the values of India. The verifiable question, cooking crafted works, clothing and way of life of the provincial people is still followed and protected by Indians. Even in spite of the fact that India could be a nation of different religions and caste, our culture still talks of solidarity for common intrigued such as a sports occasion of India versus Pakistan! Existence of Sub-Cultures: Sometime recently we get it approximately the sub-culture, let us know almost the culture. Culture is characterized as a complex of values, thoughts, states of mind and other important images made by man to shape human conduct and the artifacts of that conduct as they are transmitted from one era to next. We are all mindful that India is the put for presence of a number of sub-cultures. It is simple to distinguish individuals through their sub-culture, which is reflected by the race, religion, locale, nationality, etc. It shifts from state to state and indeed area to district. People are likely to act within the same way, take after same devout hones and indeed speak to the same race when they come from the same state or country. For case – An Indian will carry on like an Indian whichever nation she/he goes. Essentially, a Kannadiga or a Bihari will continuously show herself/ himself as having a place to her/his state. Indeed he/she will be more comfortable within the company of people from his/her state. Rural individuals take after their culture exceptionally unbendingly. A advertiser should get it the culture exceptionally profoundly some time recently propelling the item in a specific locale or state of India. The image or dialect used to give message around the item and indeed individuals chosen (brand Envoys) to communicate the message moreover have to be chosen carefully depending upon the locale, religion, etc. Caste System: The Indian caste framework may be a framework of social stratification and social limitation in India in which communities are characterized by thousands of genetic bunches called Jatis. Indian society stands unequivocally on four columns, such as, Brahmins, Kshatriyas, Vaishyas and Shudras. Other sub-castes and factions are developed on these columns only. The Brahmins got to begin with need and amazingness position among the others. They have partitioned colony (prevalently called as Agraharam) for themselves and others are denied indeed to enter in that colony. The another need was given to Kshatriyas (i.e., warriors), taken after by Vaishyas who has a place to trade or exchange bunch. And at last, Shudras were given least need among the four classes and were endured by part of social and financial 29 CU IDOL SELF LEARNING MATERIAL (SLM)

drawbacks such as limited to enter into sanctuary, utilize common well, streets, school, healing centers and other facilities. They were gathered to live within the endorsed boundaries as it were. For case, for the survival of those individuals, isolated region is designated which is distant absent to reach in general. If they entered within the common put or utilize any assets, extreme discipline are given by the incomparable community individuals. After a few decades, luckily, these caste based needs were wiped out, and all are treated in equal manner. Basic human rights got incomparable need rather than all other things since of the persistent exertion taken by our Government and other social benefit volunteers. Even in spite of the fact that, the ancient Zamindari framework and untouchability were expelled, still a few sort of social awkward nature exist in many inaccessible towns of India. A few individuals in town who are within the choice making capacity, are more delicate towards the caste based sentiments and as well inflexible to indeed approach. Their values and beliefs ought to be honored; something else, reach and survival will be more troublesome to the corporate. So, the marketers ought to be exceptionally cognizant whereas drafting their special approaches, promoting plans to spread messages around products. Caste framework is exceptionally solid in country India. Individuals cannot do things against their caste. Provincial individuals have to be wed themselves or their children within their caste. In the event that they don’t do so, they may got to pay overwhelming punishment such as – out casting them from the town and community or indeed now and then guardians slaughter their possess girls and children on the off chance that they attempt to wed exterior their caste or inside their caste (Honor Killing). A distribution channel is regularly imagined as a series of mediators, who pass the item down the chain to the another substance, until it at last comes to the shopper or end-user. Each component of the chain has its possess particular prerequisites, jolt and capacity to convey in an interesting working environment, which the maker must take into consideration, alongside those prerequisites of the end-user. Most recent developments in rural dissemination models have extended the part of the dissemination accomplice. The distributor-role is not confined to physical dispersion of items alone, but has moreover extended to arrangement of a few other inputs, which impact a consumer’s buy choice, such as credit and post-sales benefit. Challenges of Distribution Strategy The challenges of distribution strategy are as follows:  Large number of small markets  Dispersed population and trade  Poor road connectivity  Multiple tiers 30 CU IDOL SELF LEARNING MATERIAL (SLM)

 Poor availability of suitable dealers  Low density of shops per village  Inadequate banks and credit facilities  Poor storage system.  Low investment capacity of retailers  Poor visibility and display of products on rural shop shelves.  Poor communication of offers. Distribution Strategy Distribution strategy is explained in the paragraphs below. Ensuring reach and visibility The thing which is vital is to induce the Stock Keeping Unit right, as rustic retailer can’t manage to keep numerous diverse SKUs. Being first on the rack within the item category and develop a favored relationship with the retailer could be a source of competitive advantage to customer merchandise companies, in such an environment. Reaching up to mandis, towns, semi-urban centres Organizations can cater to country necessities for customer durables, dress, kitchen gear and Agri-input by making their items accessible up to feeder towns, semi-urban centres or mandis. Targeting larger villages There are fair 85,000 expansive towns out of more than 6, 38,000 towns. Be that as it may, they have 40% of the rustic populace and 60% of add up to utilization. Understanding of peak seasons Peak season times in country parts are gather, celebrations and marriage seasons. Bulk of the request for the customer durables is concentrated amid these times. The rustic buyers have money at this time for shopping and are willing to buy. Organizations need to guarantee that their products are available at these times. Collaboration for distribution 31 CU IDOL SELF LEARNING MATERIAL (SLM)

Organisations with comparatively lesser dissemination reach can work at the side associations that as of now have accomplished tall entrance levels in provincial regions. E.g., P&G had tie-ups with Godrej, Marico Businesses and presently it’s arranging one with Nirma for conveyance of cleansers. Converting unorganised sector manufacturers into distributors Small-scale producers have great information of the region and have great deals arrange. Associations like Exide are endeavouring to alter these small-scale producers to gotten to be their dealers. Company’s own distribution network Project Shakti of HUL is the example of a company’s own distribution network. Distribution Channels in Rural India Distribution channels in rural India are discussed in the paragraphs given below. Use of cooperative societies There are more than 4 lakh co-operatives working for diverse purposes like credit, promoting and dairy cooperatives in country regions. E.g., for rustic buyers Ranchers Benefit Co- operative Social orders work like a scaled down super advertise, where they offer cleansers, cleansers, cloth, fertilizers, seeds, pesticides, etc., at prudent and sensible costs. As these social orders have vital framework for capacity and conveyance, companies may contact these social orders to offer their items. Use of public distribution system The open conveyance framework is well organized in India. There are around 4.37 lakh reasonable cost shops working within the nation. As the PDS outlets cover the whole nation, they can be utilized for marketing consumable things and moo esteem durables in provincial areas. Utilization of petrol pumps These petrol pumps, in addition to petrol/diesel, oil and lubricants are also selling consumables, such as soaps, detergents, biscuits, etc., particularly on the highways. These bunks may also think of stocking certain consumable agricultural inputs like fertilizers, seeds and pesticides. Agricultural input dealers 32 CU IDOL SELF LEARNING MATERIAL (SLM)

In the country, there are about 2, 62,000 fertilizer dealers. Most of the dealers don’t have business during off season; hence the companies may try to motivate them, so that they can sell other products also during their free time. Shandies/Haats/Jathras/Melas Shandies are intermittent markets which work in a week after week cycle. They offer a prepared dispersion arrange and are cheap, consistent and fitting. ‘Haats’ can be successfully utilized for exhibit; dissemination and inspecting of the everyday require items. ‘Melas’ work best for presenting modern brands and building brands through the association of occasions at the venue. Evolution of Rural Distribution Systems Evolution of rural distribution systems are as follows: • Historically, the country distribution framework has included retailers, wholesalers, versatile dealers, vans and week by week haats. • In the feeder markets, retailers act as wholesalers and bad habit versa to offer to little retailers who come from encompassing villages. • Some town retailers send their business people to towns to book orders and supply merchandise to these little retailers. Wholesaling Wholesaling involves the following: • 50% of rural consumption is still directed through wholesalers, since they are found in adjacent feeder markets, which are frequented by town retailers to recharge stocks. • Indian wholesaler could be a dealer, instead of a merchant and as a result tends to back a brand amid periods of boom and pulls back bolster amid periods of slump. • Rural markets were dismissed by most companies due to the moo thickness of retail outlets and the little off-take per retailer. Wholesalers based in feeder towns took advantage of this circumstance as town retailers found it helpful to purchase from these places. This brought about within the hold of the advertise by these wholesalers, who regularly reveled in exchange misbehaviors within the channel. Rural Retail System  Rural retail framework capacities as follows: 33 CU IDOL SELF LEARNING MATERIAL (SLM)

 Rural India accounts for 65% of retail outlets within the nation. The coordinations of bolstering the 35 lakh retail outlets spread over 6 lakh towns could be an intense task.  The high distribution costs due to topographical spread and moo volumes per outlet act as an obstruction to the passage of items in rustic markets.  The normal month to month deal per town shop is less than Rs. 5000/-, which confines the assortment and run of the items stocked.  As a critical parcel of the deal is on credit, it puts most town shops in a self-limiting deals cycle.  Despite the same product being available in the village shop, 58% of villagers prefer to buy these from a haat because of better price, quality and variety. Stock Turnover Stock turnover involves the following:  Average esteem of stock per item category in insides towns is approximately a third of that in feeder villages.  Off-take of bundled nourishment stuff and tobacco is higher in insides towns, while toiletries have the next take off in feeder towns in comparison to other products.  The cash outlay of rustic retail outlets is exceptionally moo and most of it is contributed in quick moving brands and tall edge commodities.  The moo off-take, moo stocks and lower stock turnover proportion together posture a challenge to the marketer of a unused item that how to possess retail rack space in country markets.  Rural retail rack space can be possessed by advertising shoppers a combination of alluring margins, credit office and overhauling that's predominant to that advertised by the competition.  Rural retail shelves: Not at all like urban retail racks, provincial retail racks are overwhelmed with nearby and territorial brands with guarantees of higher edges and longer credit periods to retailers.  The number of item categories supplied by country and urban stores does not shift essentially. In any case, what does shift is the number of companies/brands. This contrast in stocking design is since of destitute reach and trouble in adjusting stores. 34 CU IDOL SELF LEARNING MATERIAL (SLM)

 The to begin with assignment is making brands accessible, but at the same time marketers moreover ought to make efforts to guarantee their perceivability on provincial retail racks. Items are supplied in a cluttered and disorganized way.  Slow-moving items secured with tidy gathered over a period of time are a common locate. The visibility of brands is exceptionally destitute due to the nonattendance of legitimate racks and show boxes and stands.  Brands that are advantageous to the retailer’s commerce are shown prominently  Marketers ought to plan procedures to involve country retail rack space by giving show and capacity frameworks. (Divider mounted show strips for decency creams and ice boxes for delicate drinks.) Vans The uses of vans are as follows: • Mobile vans have an imperative put within the dispersion and advancement of items in towns. • In this framework, the sales representative loads the van with stocks from the closest stockiest or company stock point and works the encompassing markets. •Once he has secured all such markets, he moves to the following stock point and begins covering the towns encompassing that stock point. • Eveready batteries and lights are advertise pioneers. It built up an broad conveyance arrange that incorporates 1000 vans, 4000+ wholesalers and 44 distribution centers. These vans reach 6 lakh retail outlets specifically, each van making 50 to 60 calls per day. The company guarantees that the van returns to a retailer each 15 days. The stock for these vans is provided by the small-town distributors. Rural Mobile Traders-The Last-Mile Distribution Rural mobile traders-the last-mile distribution has the following features: • Mobile exchanging is an age-old, disorderly dispersion framework, coordinate to domestic in provincial India • Sell an assortment of daily-need items, generally neighbourhood brands extending from cleanser, beauty care products and individual care items to pieces of clothing and footwear. • They carry their items on mopeds, bikes, handcarts or on foot. 35 CU IDOL SELF LEARNING MATERIAL (SLM)

• Mobile traders have a profound reach, since they target little towns to maintain a strategic distance from competitions from shops in greater towns. Their coordinate offering approach guarantees tall association on the portion of shoppers and since they have a settled and committed shopper base, portable dealers appreciate a great affinity with their clients. • Mostly offer fakes and neighbourhood brands. Haats/Shandies Haats are the occasional markets and the most seasoned promoting channel in India. These markets give individuals an opportunity not as it were to buy buyer merchandise, but too to offer overflow agrarian and united items. They give a first-contact point for villagers with the showcase, a implies for conveying nearby items and trading country overflow, an opportunity for buying every day necessities as well as cultivate supplies and hardware and a put for social, political and social contact. Each haat caters to the require of a least of 10 to a greatest of 50 towns, drawing around 4000 people who come to purchase and offer a run of every day necessities and administrations Public Distribution System (PDS) PDS may be a framework of dispersion for fundamental commodities to an expansive number of individuals through a organize of FPS (Fair Cost shops, regularly alluded to as ‘ration shops’). The commodities are rice, wheat, sugar, eatable oil and lamp fuel. PDS has been advanced to reach the urban as well as the rustic populace in arrange to ensure buyers from the fluctuating and raising cost syndrome. It has risen as a major instrument of the Government’s financial approach pointed at guaranteeing accessibility of nourishment grains to the open at reasonable costs as well as for enhancing food security for the destitute. PDS features a network of almost 4.76 lakh. FPS is the biggest dissemination arrange of its sort within the world. Behaviour of the Channel Behaviour of the channel involves the following:  Credit facilities to clients: Credit sales account for as tall as 60 to 70% of the whole country trade, whereas in others it is as it were 15 to 20%, in a few locale. Consumers more often than not have a running account, a portion of the outstanding dues is cleared each month, but the ultimate settlement takes put at the gather time.  Pricing by the channel: Now and then, retailers in insides towns offer at a cost higher than the most extreme retail cost. They legitimize doing this on the ground that they 36 CU IDOL SELF LEARNING MATERIAL (SLM)

spend time and cash to bring the items from town wholesalers. A town wholesaler may intentionally cut the cost of a fast-moving brand to extend his business.  Reason for stocking a product/brand: Rural retailers stock a specific thing more often than not since buyers request it and to a lesser degree since of the wholesaler’s thrust or since a competitor stocks the thing too.  Seasonal design of stocking: Regular design is likely since the most buying season for rural consumers amid the gather and retail stocking of toiletries, beauty care products, strips, bangles, dress, fertilizers and seeds too takes after this pattern.  Information source and influence: Distributer is the foremost imperative source of data additionally most imperative impact on the retailer.  Purchase source: Retailers in insides ranges are not gone by operators of wholesalers. Retailers go to the adjacent town/large feeder town once or twice a month to purchase their stock.  Chanel credit: Little retailers and retailers within the insides towns must purchase in cash, whereas huge retailers in feeder markets are advertised credit.  Purchasing cycles: In high turnover feeder towns, country businesspeople regularly visit the neighbouring urban discount advertise for their buys, now and then as regularly as three to four times a week. In other ranges, where provincial businesspeople depend as it were on counter deals and not on discount buys, they may purchase once a week or once a fortnight. Figure 2.1 Rural Distribution Models 37 CU IDOL SELF LEARNING MATERIAL (SLM)

Rural distribution can broadly be categorised into two models: Littler companies embrace the discount actuation course owing to a need of practicality, though companies with sizeable item wicker container receive the retail course to reach country markets. Van operations Van operations involve the following: Van operators from nearby urban markets cover four to five rural markets per day. A distance of 60-70 km is covered per day. They operate mostly on cash basis as per the desired frequency. They provide better control over distribution• Sub-stockiest operations Sub-stockiest operations involve the following: Gets stock from super stockiest appointed in the district. Super stockiest typically cover 10-15 sub stockiest in the district. The sub-stockiest covers all the outlets in his rural market like the regular stockiest, by extending credit and services. Figure 2.2 Distribution model For FMCG 1. Channel Structure in Show 1, rural distribution has been isolated from urban dispersion to make a particular center on the rural market. 38 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Coverage area of rustic merchants is clearly characterized. Company names a sub- distributor beneath the wholesaler to enter more profound into rustic regions up to the 5000 populace villages. 3. The RD covers a huge range with destitute street arrange and a moo volume per outlet, which would make it unrewarding for him to cover little areas. The RD administrations the wholesale market in his area. 4. It contains a huge number of focuses designated within the rural regions, since the areas are many and scattered. 5. Model centers more on wholesalers and sub-distributors, instead of the wholesale channel. Figure 2.3 Distribution Model 2  This could be a simpler model compared to Dispersion Show 1. There's no partitioned channel for rustic distribution.  This show limits distribution costs, permitting the company to offer superior edges to the wholesalers and other channel accomplices who at that point thrust the deals of such products.  Wholesaler areas work as feeder markets, from where the company caters to the necessities of adjacent towns, places not secured by the distributor.  It is generally companies with a restricted number of SKUs and tall deals volume that receive this model 39 CU IDOL SELF LEARNING MATERIAL (SLM)

 Channel partners are few and the distributor is given a large territory. Figure 2.4 Nirma distribution system The structure followed by Nirma consists of minimum channel partners. • Direct distributors get supplies from the warehouse. Primarily, advertise scope is through the wholesaler’s organize and consequently few wholesalers are required to handle bulk despatches. • In a few cases, an enormous distributer plays the part of a sub-distributor, providing to the retailers and wholesalers Figure 2.5 Distribution Channel of Durable Company 40 CU IDOL SELF LEARNING MATERIAL (SLM)

• As durables are acquired generally from little and expansive towns, the number of areas for dissemination may be a few thousand only and these can be overseen by a couple of channel partners. • LGs manufacturing plant is found in More noteworthy Noida, close Delhi. The wrapped up merchandise are transported from the manufacturing plant to the company-owned station, which in turn passes down the line to C&F operators. There's a particular range relegated to each C&F specialist and different merchants and elite merchants are tied to the C&F operator by the company’s field constrain. The orders are created by the company’s deals field drive, which in turn is provided by the C&F agent. Figure 2.6 Distribution of Fake Products  • Manufacturers to wholesalers/retailer in huge city or little town, or specifically to client: Producers take orders for fake items through individual visits or over the phone from enormous wholesalers/retailers who bargain in fakes. They moreover take off test of modern fake items for test marketing. Delivery is made to wholesalers/retailers through vans and tempos approved by the manufacturer.  Wholesaler in huge city to distributer in little town/kasba: Wholesalers in kasbas source their supply of fakes through day by day rail commuters. These passengers 41 CU IDOL SELF LEARNING MATERIAL (SLM)

book orders from wholesalers and collect supplies from the producer of fake products. These are hand conveyed the another day.  Wholesaler in little town/kasba to town retailer/mobile trader/haat: Sales representatives of fake items visit retailers in towns of 3000+ populace category found 15-20 km. from the closest town to convey items. Portable dealers get their stock of fake merchandise for buys over Rs. 500/- from mandis in adjacent towns, or from the closest kasba for littler purchases. Emerging Distribution Models Emerging distribution models are as follows:  Corporate-SHG Linkage: SHG may be a gather of 10-15 ladies organized by government bodies or NGOs, who come together to create a common thrift bunch, to teach investment funds teach and boost sentiments of self-worth among ladies. Individuals of SHGs get coordinating advances from provincial banks to set up income-generating endeavors. Initially, SHGs were shaped to bolster poverty- alleviation programs in country zones after the victory of the show in Bangladesh, where this concept originated. HUL’s Venture Shakti was focused on at fortifying the company’s FMCG country conveyance drive. Interested ladies from SHG’s were named as Shakti business people, they borrow cash from their gather corpus and give administrations to 6-10 towns, covering a populace of 6000-10000.They get stocks from HUL provincial wholesalers and make deals to both retailers and coordinate customers in villages. Satellite distribution (The hub-and spoke system) Satellite distribution (The hub-and spoke system):  Stockists are appointed in major towns and feeder towns. By and large, they discharge the following functions: 1. Financing. 2. Warehousing. 3. Sub-distribution. 4. Retailers in and around the feeder towns get joined to these stockiest. The producer supplies merchandise to the stockiest either on a dispatch premise or on a cash or credit buy basis. 42 CU IDOL SELF LEARNING MATERIAL (SLM)

5. The stockiest pay attention of sub-distribution on the terms and conditions decided by the producer or as concurred upon by the parties. Frequently, the stockiest operate their claim conveyance vans to require care of auxiliary transport and neighborhood conveyance jobs. Coca Cola hub and spoke model Coca cola hub and spoke model has the following features: As of late modified its conveyance channel by moving from a centralized demonstrate to a three-tier hub-and-spoke show. Contributed in glass bottles and modern vehicles in consonance with the three-tier distribution structure. Expansive trucks were utilized to move stocks from the bottling plant to the centers, medium commercial vehicles were utilized to move stock from the center to the spokes and after that auto rickshaws and cycles were utilized to cater to the necessities of rural markets. Figure 2.7 Hub and Spoke Model Syndicated distribution Syndicated distribution has the following features: • Syndicated distribution could be a practical and novel approach to pick up section into provincial markets. Beneath this approach, two or more companies come together to create a syndicated exchanging organization, to together disseminate a collective bunch of family items in country markets by sharing conveyance costs. • The arrangement for small companies is to tie up with a driving company that as of now features a nearness within the country advertise, in arrange to disperse items through its dispersion arrange. The brilliant run the show is that the little company ought to not bargain within the same items that the driving company sells. E.g., P&G employments the rustic 43 CU IDOL SELF LEARNING MATERIAL (SLM)

dissemination organize of Marico to offer Ariel, Tide, etc. CavinKare utilized the dispersion arrange of Amrutanjan torment emollient for its Chik shampoo. ITC’s distribution model ITC has taken the activity to reach rural customers through its e-choupal model for in reverse and forward linkages for its Agri-related trade, for coordinate procurement of Agri produce from ranchers and for offering a extend of items through Choupal Sagar. Petrol pumps and extension counters Petrol Pumps and extension counters have the following features: These petrol pumps, in expansion to petrol/diesel, oil and oils are too offering consumables, such as cleansers, cleansers, rolls, etc., especially on the interstates. These bunks may also think of stocking certain consumable agrarian inputs like fertilizers, seeds and pesticides. 12,000 petrol pumps of which 60% on thruways near to towns offer consumables like food items and toiletries. e.g., IOC Kissan Seva Kendra. Barefoot agent Few insurance companies have taken the activity of naming unshod protections operators in arrange to enter country markets. Operators are enrolled on the premise of three parameters: • Direct individual contact • Spreading data through bunch discourses • Motivating individuals to gotten to be life protections specialists through counselling. Agricultural agent and agricultural input dealers There are almost 2, 62,000 fertilizer merchants within the nation. Amid off season most of the merchants don’t have commerce, consequently the companies may attempt to propel them, so that they can offer other items too amid their free time. Other channels Hero Honda Engines has 400 merchants all over the nation. The company has detailed the rise of an informal channel of dissemination, town mechanics, neighborhood genuine domain specialists and businesspeople. These individuals take the bikes, ordinarily in twos and threes, from company merchants after giving satisfactory security stores and show them exterior their premises for closing the deal. The paper work, in any case, is cleared out to the merchant to total. 44 CU IDOL SELF LEARNING MATERIAL (SLM)

2.2 CHALLENGES As we have seen in Unit 1, there's a significant distinction between rustic and urban advertise, its composition and factors. According to G.N. Murthy – “Rural promoting is the consider of all the movement, organization and policy included within the obtainment of cultivate inputs by the agriculturists and the development of country items from farmers to consumers”. Marketing in provincial ranges contains a shifted conceptual measurement as the occasions happening in markets are essentially taking place in a set of conditions influencing the rustic dwellers and institutions hinterlands. Many marketers appear to require country showcase as rural promoting, but it could be an off-base see of the subject. Numerous marketers appear to require provincial advertise as agricultural marketing, but it may be an off-base see of the subject. In reality, by rural market, we cruel the execution of trade exercises that coordinate the stream of products from urban to rustic ranges (for manufactured merchandise) and bad habit versa (for agricultural produce) and items made by country non-agricultural laborers. Rural market isn't an free substance by itself. In truth, there are sociological and behavioral variables which influence the economy of country advertise. By and expansive, markets may be portrayed as an environment of the nation side and the habitants thereof. People are the showcase for marketers. Rural marketing is basically managing with different inputs, ventures and administrations implied for the rural market. In some cases rural marketing is confused with farming promoting but there's distinction between the two. The afterward indicates showcasing of deliver of rural areas to the. Urban buyers or industrial consumers whereas country showcasing includes conveying made or prepared input or benefit to rural shoppers additionally incorporate surge of rustic item into urban advertise. Agricultural marketing is the part of rural marketing. Some of the challenges of rural marketing are: Prima facie the rural markets show up to be virgin lands fair holding up for the marketers to move in and cash on them. In any case, getting into the rural market and capturing a sizeable share isn't a simple assignment. It is in fact a parcel of difficult work. A lot many issues are experienced. These issues of rural marketing can be essentially gathered beneath six distinctive heads. They are: 1. Problems connected with ‘Physical Distribution’. 2. Problems related to Channel of Distribution. 3. Problems associated with the Sales Force. 4. Problems of Marketing Communication. 5. Problems of Market Segmentation. 6. Problems related to Product Management. 45 CU IDOL SELF LEARNING MATERIAL (SLM)

Challenge # 1. Problems Connected with ‘Physical Distribution’: While undertaking rural marketing a marketer faces three different problems connected with the Physical Distribution of goods. They are: (a) Issues of Transportation – Not all towns in India are associated by railways and waterways. The as it were dependable implies for transportation of merchandise are the street ways and they as well are not all-weather. The transportation infrastructure of rural India is destitute and lacking to transport individuals and products effectively. (b) Issues of Warehousing – The offices for capacity within the country zones, are indeed more awful than the transportation offices. Not one or the other the Central nor the State Warehousing Enterprise has been able to expand capacity offices to the rural areas. In spite of the fact that there are private distribution centers in country ranges, they are implied for their select use. (c) Issues of Communication – The provincial zones either don't have the essential least postal administrations like phone and transmits, or in the event that they are accessible, they are very inadequate and not exceptionally viable. Communication is the fundamental prerequisite for promoting activities. Due to need of these infrastructural offices, an advertiser entering the country showcase should incur extra use or compromise on the quality in either case it is the rustic client who endures, within the shape of higher costs and poor quality. Solution: The solution to the issues of physical distribution lies within the fact that the government should set up Provincial Warehousing Organizations solely to meet the requirements of the provincial advertise. Advance, the obligation for physical dissemination can be shared with the stockiest and stockiest cum sending operators. A gather of companies can come together to embrace common rural distribution. Challenge # 2. Problems Related to Channel of Distribution: It is very obvious that the channel of distribution for rural marketing will be longer than the channel for urban marketing. This increased channel props up problems as mentioned below: (a) Expensive channel of Distribution – A long channel consequently implies a expensive channel as a huge no of brokers are to be given their commission, besides, bigger the channel, bigger the number of regulatory problems. (b) Overwhelming reliance on middle people – As distant as provincial promoting is concerned there's exceptionally small or no scope for the producers to approach the clients straightforwardly. Hence, they have no alternative but to depend upon the intermediaries. (c) Weak practicality of retail outlets – Country markets are scattered, as such an expansive number of retail outlets are required to cover these markets. In addition, the rural areas are much more thinly populated as compared to urban areas. 46 CU IDOL SELF LEARNING MATERIAL (SLM)

Hence, these retail outlets are not commercially practical. Include to this a huge number of mediators, the picture at that point is anything but rosy. (d) Non-availability of merchants – One of the major issues confronted is the non-availability of merchants within the rural market. The producers have no choice but to make do with the available dealers. (e) Non accessibility of keeping money and Credit offices – Retailers require credit offices in case they are to amplify credit to their clients. In the event that this office isn't accessible it'll result in restricted stock carrying and limited trade. This basic facility is additionally not accessible within the country zones. Solution: The solution to the above-mentioned issues lies in understanding the dissemination framework existing at the nearby town level. At this level there are the taking after accessible channels. They are private shops, cooperatives, reasonable cost shops and town week by week markets prevalently known as “village mandies”. From all these, the producer of shopper items should depend on the private town shops, as the co-operatives are known for distribution of rural inputs, and the week by week mandis are implied for arranging off locally created products. The reasonable cost shops bargain in things like wheat, sugar, atta, consumable oil and now and then cheap cloth. The town private shops are the foremost helpful and cheapest channel. Here the “Satellite distribution”; framework works well. Beneath this framework the producer names stockiest at less towns who bridge the crevice between the producers and the retail outlets within the villages. Challenge # 3. Problems Associated with the Sales Force: Rural marketing demands heavy doses of personal selling efforts. In this area too quite a number of problems are faced. (a) Getting business people to work in country regions – Those sales representatives will be effective within the rustic ranges who will mix and blend with the rural population. Not only is this an awfully troublesome assignment for the urban salesmen, but few urban sales representatives are willing to move to the provincial areas. (b) Matching with cultural contrasts – The rural market itself could be a different overlay of different cultures. It is exceptionally troublesome for any sales representatives to master the diverse social heritages existing within the diverse provincial areas. (c) Command over neighbourhood dialects – Within the endless rustic ranges of India a number of distinctive dialects is talked. This too makes a problem for the salesman. (d) More noteworthy imagination – The work of a rustic sales representative gets to be more troublesome since numerous a times the items that he has got to offer are completely modern to the provincial client. Thus it requires a more prominent 47 CU IDOL SELF LEARNING MATERIAL (SLM)

imagination on his portion in the event that he is to perform his work of making needs, needs and desires. Solution: The most arrangement to all these issues lies in appropriate enrollment, choice and training. Agreed, it may be a herculean assignment but nothing is incomprehensible. What can be done is that qualified individuals from the rural areas itself can be selected and proper training can be given to them in arrange to extend their effectiveness. Challenge # 4. Problems of Marketing Communication: Problems of marketing communication or sales promotion, in the rural areas also deserve attention. These problems arise out of the barriers to market communication. These barriers can be divided into two: (a) Obstructions emerging out of rural market structure – The country advertise structure is such that it is exceptionally assorted, scattered and full of individuals with distinctive dialects and societies. Hence, no advertising or limited time writing can be made accessible in any one dialect for the complete provincial showcase. A number of neighborhood dialects ought to be utilized. Assist the rate of absence of education within the rural market is exceptionally tall and hence the printed communication has small or no affect on the rustic markets. (b) Obstructions emerging out of accessible media – Indeed in spite of the fact that media such as radio, TV, cinema, print and open air publicizing are accessible within the rural areas, none of these encompasses a add up to scope of the complete provincial region. Indeed in spite of the fact that radio covers 90% of the rustic zones its real listenership is very lower. TV covers 27%, cinema as well has its share but not more than 35%, while print media covers 20% of the rustic populace. Open air publicizing has its possibilities. Hence, the genuine issue here is that of selecing the right media mix. Solution: The solution lies in combining media like radio, tv, cinema, open air publicizing and point of buy. In expansion to these formal media vehicles other non-formal ones can moreover be utilized like melodic appears, manikin appears, road plays, entryway to entryway campaigning etc. The advertising subject ought to be basic and straight forward stressing more on the item and its utilization. Challenge # 5. Problems of Market Segmentation: Market segmentation in rural marketing is more vital than maybe indeed in urban marketing. This can be since there's an incredible sum of differences within the different rustic markets. They are by no implies homogeneous. Assist distinguishing and developing rural markets requires a gigantic sum of venture and consequently due significance ought to be given to this perspective. There are different bases on which a country advertise can be segmented. Market 48 CU IDOL SELF LEARNING MATERIAL (SLM)

division can be done either on an essential premise like geographic and statistic, or on an auxiliary premise. The auxiliary premise for geographic division would be level of water system, region to less towns etc. The auxiliary premise for statistic division would be age, sex, education levels. The major issue as distant as showcase division is concerned would be a choice of the premise of division. In any case, much would depend upon the state of mind and logic of the company on one hand and the assets accessible on the other hand. Challenge # 6. Problems Related to Product Management: Another issue confronted in rural marketing is the choice of whether the same item, as is promoted within the urban area should be promoted within the rural areas also, or changes ought to be made. Taking under consideration the immensely diverse highlights of the rustic markets certain changes within the colours, estimate and packaging will got to be made. In any case, as the provincial consumer a bit like the urban buyer could be a human being with the same wants and needs the fundamental item will be the same. A rustic client just like the urban client needs quality at a lower cost. In this way, this angle has got to be borne in intellect. In any case, the country client encompasses a moo obtaining control and constrained capacity and thus lean towards to purchase in little parts and little bundles. In this way, this angle has got to be given due consideration. As the rural customer is destitute it would pay the company to come out with cheaper items for this specific market. Indeed in spite of the fact that the rural customer is by presently utilized to branded items he is more carried absent by the cost calculate. Advance he gives more significance to territorial or neighborhood brands. Hence, whereas taking a choice to present a specific item within the provincial advertise; these contemplations ought to be paid consideration to whereas choosing upon the changes to be made within the product. Thus, it can be concluded that rustic promoting is both charming and challenging. In any case, they are full with challenges and issues which ought to be overcome in the event that the delights of benefits are to be reaped. Strategy for Rural Marketing: A marketing strategy is the whole arrange, formed and outlined particularly for accomplishing the promoting objective of the firm. A marketing objective tells us where we need to go and the promoting procedure gives us with the fantastic plan for coming to there. Usually a methodology is seen as a framework of building the guards of a company against competitive strengths. It stands for the competitive advertise activities taken by a firm either to counter competition or to inspire a reaction from the competition. Hence, marketing methodologies pick up significance in country showcasing as rural markets are those virgin markets in which different companies are moving in, in arrange to capture the request. In this way, when we talk of marketing methodologies for rural markets, we got to take into thought the extraordinary characteristic highlights of the rural market. 49 CU IDOL SELF LEARNING MATERIAL (SLM)

Taking into consideration the awesome increment in introduction, quick changing consumption design buying propensities and expanding wellbeing care and awareness of the provincial buyer, a generation driven marketing strategy will not hold for a long period of time. Thus, an advertiser will need to receive either a Market driven methodology or an advertise driving strategy. A market driving methodology points at forming the existing and potential request in such a way that this demand matches the items advertised by the company. In this way, in this procedure the company has got to make the buyer aware of unused needs which can be satisfied by devouring the products of the company. Or this technique makes the shopper look for way better items to fulfill their existing needs. Again, this explore for superior items ought to conclusion with the item of the specific company. In this way, the request driving technique is more troublesome than the request driven one. A request driven technique would point at giving those merchandise to the shopper that are required,, required and demanded by the consumer. a. As distant as the rural market is concerned, a showcase driving procedure would be more reasonable as most companies enter the rural market in arrange to broaden their markets. Hence, their as of now existing items can be marketed with a small bit of variety. In any case, for a few items, a advertise driven methodology would moreover demonstrate to be exceptionally valuable since to begin with and preeminent it is less demanding and besides taking into consideration the issues existing within the country advertise it would be the finest strategy. However, the procedure received would depend upon the characteristics of the rural market and the degree and nature of the competition in existence. Apart from the self-evident socio-psychological components, the financial variables posturing a challenge some time recently rustic promoting are in order: a. Transportation – Not all towns in India are associated by railroads and waterways. The as it were dependable implies for transportation of merchandise are the street ways and they as well are not all-weather. The transportation framework of country India is destitute and lacking to transport individuals and merchandise effectively. b. Warehousing – The offices for capacity within the provincial regions, are indeed more awful than the transportation offices. Not one or the other the Central nor the State Warehousing Enterprise has been able to expand capacity offices to the rural areas. In spite of the fact that there are private distribution centers in rural areas, they are implied for their elite use. c. Communication – The rural areas either don't have the essential least postal administrations like phone and transmits, or in the event that they are accessible they are very inadequate and not exceptionally viable. Communication is the essential necessity 50 CU IDOL SELF LEARNING MATERIAL (SLM)