banks and are as of now giving a run of monetary administrations such as ventures, shipper managing an account and indeed protections items. Essentially, non-banks are too undertaking bank like exercises. At show in India, these are generally restricted to urban ranges, but they will sooner than afterward spread to provincial ranges. Another improvement relates to the continuous undermining of the significance of branches of banks. The rise of modern innovation permits get to managing an account and keeping money administrations without physical coordinate plan of action to the bank preface by the client. The concept of Automated Teller Machines (ATMs) is the most excellent illustration. At display, ATMs are city arranged in our nation. It is unavoidable that ATMs will be broadly utilized, in semi-urban and provincial regions. The technology-led handle is driving us to what has been described as virtual managing an account. The benefits of such virtual managing an account administrations are complex. Firstly, it confers the advantage of lower fetched of taking care of an exchange. Furthermore, the expanded speed of reaction to client prerequisites beneath virtual keeping money vis-à-vis department managing an account can upgrade client fulfillment. Thirdly, the lower cost of working department organize at the side decreased staff costs leads to cost efficiency. Fourthly, it permits the plausibility of moved forward quality and an enlarged extend of administrations being accessible to the client more quickly and precisely at his comfort. It may not be conceivable to deny these offices to rural areas in our nation since, in the event that banks don't give them, a few non-banks will do it. Another development relates to the expanding ubiquity of credit cards, which are bound to reach rustic zones. Numerous Open Division Banks are as of now in credit card trade. In reality, multipurpose cards might be an office that IT may usher in for provincial populace. The potential can be outlined with Keen cards. Smart cards – which are fundamentally cards utilizing computer circuits in them in this manner making them ‘intelligent' – would serve as multipurpose cards. Savvy cards are basically a mechanically improved version of credit and charge cards and can be utilized too as ATM cards. They may be utilized for credit offices at diverse areas by the holders. Keen cards may too be utilized for individual distinguishing proof and unexpectedly for checking credit utilization. For the spread of virtual-banking and Smart cards to country regions, it is essential that electric control and telecom network are ceaseless and supplies don't drop particularly amid the hours when a bank's value-based activity is at relatively high levels. The banks seem, beneath such assured supply conditions obtain the specified keeping money computer program additionally put in put the 53 necessary organizing for giving anyplace managing an account offices in rural and semi-urban zones moreover. Like banks in other parts of the world, Indian banks will ought to get inquisitive about giving expanded run of financial items and administrations in conjunction with those that they are as of now giving, by utilizing mechanical progresses. As the level of instruction in rural areas rises and abundance spreads, clients will begin looking for proficient, speedier and low cost 151 CU IDOL SELF LEARNING MATERIAL (SLM)
administrations. As the monetary framework expands and other sorts of monetary middle people ended up dynamic, in provincial regions, savers would turn towards shared reserves or the savers themselves choose to send portion of their money related surpluses into values and debentures as moreover other settled salary securities. The bulk of bank stores within the rural areas are right now longer-term stores and as these come down, there would be a distinct shortening of the normal development structure of bank stores with an increment in resource risk jumbles. The spreads that the banks presently appreciate will continuously shrink making it more difficult for them to outlive. As increasingly middle people enter rural areas with more prominent level of innovation, traditional managing an account business will come beneath weight. In arrange to confront the competitive weights being applied by the as of late set up market sharp banks, banks which have broad department arrange in most of the existing and potential wealthy country and semi-urban areas may ought to give such administrations. 7.3 FUTURE OF RURAL MARKETING IN INDIA Many businesses in creating nations have realized that serving rustic markets isn't almost basically offering items. They have extended the nature of their businesses from insignificant com-mercial motives to social ones as well. The businesses succeed in case they go past their command of making profits. The long run rests on three worldview shifts taking put in provincial approaches – development, change of companies into social ventures and innovative progressions that bring rustic buyers closer to companies. This implies that companies have to be rehash their commerce models and their exceptionally approach of doing commerce. Such companies stand a greater chance of victory and long-term survival in rural areas. We have taken components from the trade models of these companies to figure out what the longer term looks like. The companies, we discover, taken after the plan thinking design – a solution-focused and action-oriented attitude towards making a preferred future. Vaitheeswaran (2012) composes that to handle the world’s most evil issues, we require a worldview of plan considering, the open-minded, no-holds-barred approach that architects bring to their work, instead of the limit, specialized see of advancement customarily instructed at numerous commerce and building schools. Firms that think like creators, which suggests grasping experimentation through fast prototyp-ing and quick disappointment, stand to win gigantic unused markets and benefits. They contribute in dispersion and preparing of nearby assets, create imaginative items and forms, include stakehold-ers and, over all, construct a social reason in their objectives. e-Choupal e-Choupal is an India-based commerce activity by ITC Restricted that gives Web get to country agriculturists. The reason is to educate and engage them and, as a result, to make 152 CU IDOL SELF LEARNING MATERIAL (SLM)
strides the quality of rural products and the quality of life for farmers. ITC Constrained (once India Tobacco Company Restricted) may be a consumer product and agribusiness combination in India known for their generation of cigarettes, claim to fame paper, nourishment items and bundling administrations. Through the e-Choupal activity, ITC has made more than 6,500 e-Choupal computer stations in rustic ranges that serve an normal of six hundred ranchers each. Utilizing this innovation, ranchers may arrange supplies, learn almost best rural hones, get climate reports and examined around estimating for crops all through the region. Agriculturists can utilize that data to their possess costs. They moreover get higher benefit edges since they’re now not constrained to offer through an agent. ITC Restricted moreover benefits from the activity, by simplifying its supply chains and expanding its profits. An trend-setter in rural distribution -- the $3.6 billion, Calcutta based tobacco-to-hotels combination ITC -- has too been attempting to construct a stage that others can utilize particularly rustic individuals. The eChoupal organize was started to encourage more productive and viable acquirement, the network -- both physical and enlightening -- between the farmer and the market that it encouraged has permitted ITC to utilize it for conveyance of goods and administrations from the market to the agriculturist. It has hence advanced into a commerce stage. The eChoupal infrastructure consists of a) A kiosk with Web get to within the house of a prepared rancher, called a Sanchalak. This stand is inside walking separate of target agriculturists. b) A warehousing hub overseen by the previous middleman, called a Samyojak. Typically inside a tractor-drivable remove of target ranchers. (The previous agents were given a part to avoid resistance to the extend. They joined since they may see that their conventional business was in risk.) c) A collaborative organize of companies organized by ITC with a pan-India presence. e-Swasthya (Health in Card) It has been begun in 2001, within the towns of North Bihar, community Wellbeing cum Data Middle associated with state-of-the-art remote communication hardware. Basic covered cards for prompt determination, PC terminal required to get to understanding information and print the card. W-Fi network to the Net and Intentional specialists advertising free counseling on the Net. Rural Electric Power Distribution It has been actualized by the utilize of Smart Grid Technology- Smart Grid may be a changed power transmission and conveyance organize or ‘grid’ that employments strong two-way communications, progressed sensors, and conveyed computers to make strides the proficiency, unwavering quality and security of control conveyance & utilize. Keen Framework characteristics:- 153 CU IDOL SELF LEARNING MATERIAL (SLM)
1. Empower educated cooperation by customers 2. Suit all era & capacity choice 3. Enable unused items, benefit & markets. 4. Optimize resource utilization and work efficiently 5. Addresses unsettling influence through robotized avoidance, control, and rebuilding Apollo Telemedicine networking foundation It provided such kind of facilities linked with rural health. 1. 76 telemedicine centres 2. use of BSNL’s broadband network for connectivity Spatika Varsha- It could be a kind of SMS (Short Message Administrations) services utilized for engendering ‘the stormy day data’ by the utilize of technology. It measures rainfall electronically and utilize GSM to send the information as an SMS to a central server at preprogrammed intervals. And this SMS is at that point sent to rural farmer about the forecast of the day. E-Mitra This benefit has been propelled by the RAJASTHAN Government for the first time for its rustic citizens, so that they can send the I.T. enabled benefits to its fullest. E- Mitra is State Government begun ventures, which soon become highly well known within the locale. In year 2002, two ventures came into presence specifically; Lok Mitra and Jan Mitra. Where Jan Mitra is an coordinates electronic stage through which the citizens of Rajasthan can profit the advantage in the event that getting the required data with respect to any Governmental Office at booths which is exceptionally close to their doorstep. These Activity program of Rajasthan government have not as it were made a difference the Government by lessening the burden of going to each call, it has reduced the holding up time for the benefit and has driven to supply consolation to the citizens too, as with the beginning of this benefit they can effortlessly get the data required at their doorstep. Lok Mitra is an urban electronic Administration Venture which was propelled in Jaipur city in year 2002, which helps the citizens of Jaipur (presently other cities moreover) to pay their bills online (arrive, Water, Transport Tickets and BSNL) driving the citizen to spare the holding up time. This benefit also guarantees individuals that their cash is going specifically to the Government and gives a feeling of security related to their bills installment. TARAhaat 154 CU IDOL SELF LEARNING MATERIAL (SLM)
TARAhaat Information & Marketing Administrations Ltd. (TARAhaat) advanced by improvement options gather {an union between Hughes Escorts Communication, Hewlett Packard, Prophet, KLG Systel, Jaldi.com, Worldwide Improvement Portal (supported by World Bank and Doors Establishment), Excelsior Wanders Administration, LLC and James Martin (one of the world's driving NGOs)}, is an organization that centers on rural India for taking the benefits of technology to rural population. HLL's Project Shakti Project Shakti is HLL's savvy way of coming to 10 lakh homes straightforwardly within the towns where conventional distribution system cannot trust to enter through the utilize of Self Offer assistance Bunches. The extend was begun in 2001 in 50 towns including ladies belonging to micro-credit SHG within the Nalgoda Area of Andhra Pradesh. 50 SHG were chosen. These SHGs were secured by three Commonly Supported Agreeable Thrift Social orders (MACTS). Each MACTS had 14 to 15 SHGs beneath them. HLL beside a social benefit organization, Marketing & Inquire about Group (Shop), helped the ladies in getting micro-credit to set-up an endeavor to disperse HLLs extend of items. HLL chosen a lady from an SHG as Shakti entrepreneur to begin an endeavor with an starting credit from her SHG. After three month preparing, each lady started serving 6 to 10 towns having populace of 1000 to 2000. HLL conveyed stocks at her door-step. From there on, she had to supply to town retailer as well as offer straightforwardly to customers. She would pocket diverse benefit edge for each different deal. Choupal Sagar The country's to begin with rural mall known as Choupal Sagar was set up within the year 2004 in Madhya Pradesh at Rafiqganj almost 4 km from Sehore town. It is found on an eight- acre plot with a shopping zone of 7000 sq. ft. The shopping region is as it were a portion of endless Choupal Sagar. At the back of the shopping center could be a godown where 10,000 ton of grain can be put away. It'll moreover have entertainment zone with video recreations and swings. A diesel pump, cafeteria, deal point of fertilizers and other cultivate inputs and a soil testing lab, all will be a portion of the mall. Choupal Sagar stocks a wide run of items, viz toothpaste to tv, gear thing to plastic furniture, hair oils to footwear, bikes to goods, blender grinder to water pump, tvs to microwave, and many more. Drishtee.com Drishtee’s innovation is manifested in charting an interchange dispersion arrange for items and administrations in rural India. Drishtee has been able to succeeds completely start and run a few administrations in different parts of provincial India, for which the villagers generally to travel to the closest town or city. The most scope of drishtee’s activities are a) instruction 155 CU IDOL SELF LEARNING MATERIAL (SLM)
b) business era c) Start in ladies strengthening d) Giving wellbeing administrations e) In advancing the country artisans f) Small scale back and keeping money. RUDI This is a kind of rural distribution network used in Ahmedabad by SEWA (Self-employed women’s association). Major activities involved in RUDI bazaar are as follows a) Procurement b) Processing and Packaging c) Quality inspection d) Sales promotion e) Sales f) Transportation g) Finance, Accounting, IT and MIS h) Continuous production Rural Insurance Recently rural insurance has been propelled by IFFCO- Tokio Common protections Co. Ltd. They are using ICT for greatest reach of country individuals because it give comfort, item highlights, item situation, security of stores, advice and net cost. The diverse plans launched by the over companies are a) Sankat Harn Bima Yojna b) Mahila Suraksha Bima Yojna c) Genhu Mausam Bima Yojna d) Barish Bima Yojna NCMSL This technology has been utilized to start with time in Rajasthan for climate protections. Weather insurance is an repayment for mishaps which can rise due to sporadic climate conditions. Abnormal climate conditions can be – overabundance or shortage precipitation or assortments in temperature, wind speed and relative mugginess. So, NCMSL is endeavoring to allow these sorts of information for rustic individuals for compelling alter era. Other than 156 CU IDOL SELF LEARNING MATERIAL (SLM)
NCMSL, NDVI i.e., normalized contrast vegetation record is utilized for the desire of alter conditions utilizing unmistakable records. Directly we are utilizing ICT enabled more distant identifying reflecting the underground water volume changes in ordinary stores etc. 7.4 SUMMARY Information and Communication innovations are changing all human exercises. ICT may be a capable and profitable framework which can quicken financial and social improvement in rustic regions. To engage the provincial communities with a sustainable approach, ICTs have been one of the foremost viable disobedient. The taking after table gives better understanding into this reality: Strengthening rural governance: With the presentation of ICTs in provincial India, there has been an enormous alters in rustic governance. It has made strides straightforwardness, responsibility and regulatory efficiency of rural institutions. This has driven to not as it were improved interest of the rustic individuals within the choice making handle but too to an enhancement within the proficiency and responsiveness of the country benefit conveyance. It has encouraged an expedient, transparent, accountable, efficient and compelling interaction between the rustic citizens. As a result, it has not as it were advanced much better organization but has moreover spared time and exchange costs of government operations. Encouraging social changes: For any kind of formative prepare, get to data is of most extreme significance. With the development in ICT, the stream of data and information past the border of financial and social status has gotten a driving force. In this setting, ICTs are presently broadly recognized as a basic instrument to handle advancement issues in any creating nation which eventually leads to social change. Ensuring a better stronger quality of life: The application of ICTs can offer assistance to ease the living benchmarks of individuals in farther and rural areas by giving critical commercial, social and instructive benefits. ICTs can reinforce the vocation openings for provincial individuals by expanding the utilize of government administrations. ICT can guarantee stronger quality of life for the provincial destitute with an progressed get to markets, wellbeing and instruction. This in turn will thrust provincial India towards financial improvement, job-creation and poverty-alleviation. Strengthening the information-base of rural communities: The queries created by the nearby needs of the provincial individuals can be fulfilled utilizing the ICTs. Additionally, back to neighbourhood administration can moreover be given. ICTs can offer assistance to illuminate the country individuals with respect to their rights, privileges and the accessibility of different government schemes. So, ICT give real esteem to the rustic community- not within the advances, but within the socio-economic improvement. It built a long-term supportability develops from community engagement and basic mass. The changing worldview of digital isolate is 157 CU IDOL SELF LEARNING MATERIAL (SLM)
from information sharing to social alter and financial improvement of rustic individuals. IT (Data Innovation) and Communication Innovation is fair an enabler. ICT can connect and empower communities with the following facilitation: Given there's a clear understanding of the genuine community needs. Financial sustainability can be accomplished by means of community acknowledgment Demand aggregation can decrease costs. Appraisal of post implementation requirements, counting preparing and maintenance. Community association in all stages of venture plan, usage and management. 7.5 KEYWORDS • e-Choupal: The eChoupal organize was started to encourage more efficient and successful procurement, the network -- both physical and instructive -- between the farmer and the advertise that it encouraged has permitted ITC to utilize it for distribution of products and administrations from the showcase to the rancher. It has hence advanced into a trade platform. • Choupal Sagar: The country's to begin with country shopping center known as Choupal Sagar was set up within the year 2004 in Madhya Pradesh at Rafiqganj around 4 km from Sehore town 7.6 LEARNING ACTIVITY What is the biggest impediment to rural infrastructural development? Discuss. ___________________________________________________________________________ ___________________________________________________________________________ Despite infrastructural challenges, which sectors can benefit from IT in rural areas? ___________________________________________________________________________ ___________________________________________________________________________ 7.7 UNIT END QUESTIONS A. Descriptive Questions 158 Short Questions 1. What did e-choupal comprise of? 2. Write short note on Choupal Sagar. 3. Write short note on Project Shakti. CU IDOL SELF LEARNING MATERIAL (SLM)
4. Which element of the marketing mix can ICT help with? 5. What does Project RUDI stand for? Long Questions 1. What are different applications of information technology in rural marketing? 2. Explain the changing role of IT in rural sector since 1990. 3. What are the challenges associated with IT in rural marketing? 4. Which sector in rural markets is able to extensively utilize IT for effective operations? 5. Elaborate: which problems in current rural marketing scenario can be solved with IT applications? B. Multiple Choice Questions 1. What are the benefits of IT in rural marketing? a. Wider coverage areas thereby leading to better economies of scale. b. Quicker exchange of information between rural consumers to suppliers. c. More accurate and comprehensive information gathering. d. All of these 2. Which is not the role of information technology in the rural sector from below options? a. Facilitate access to information and services b. Cost effective, doorstep delivery mechanism c. Developing rural database d. People management 3. What is Spatika Varsha? a. SMS to farmer for prediction of rain b. SMS to farmer for Fertilizer usage c. SMS to farmer for Selling at fair rate d. SMS to farmer for Soil management 4. What projects were deployed by Rajasthan government under E-Mitra? 159 a. Jan Mitra b. Lok Mitra CU IDOL SELF LEARNING MATERIAL (SLM)
c. None of above d. Option A & B (Both) 5. In which year the country's first rural mall known as Choupal Sagar was established in Madhya Pradesh at Rafiganj about 4 km from Sehore town? a. 1996 b. 2008 c. 2004 d. 2012 Answers 1-d, 2-d, 3-a, 4-d, 5-c 7.8 REFERENCES Text Book Sri Lakshmi K. and Sri Rama Murthy D., \"Rural Marketing in Indian Context\", www.coolavenues.com Barada Prasad Panigrahy, \"ITC's Choupal Sagar - An Initiative Rural Mall\", Marketing Mastermind, Feb, 2006 (ICFAI University Press) Anil Chandhok, \"Rural Marketing - Prospects & Growth\", Marketing Mastermind, Feb, 2006 (ICFAI University Press) Website: www.hul.co.in www.itcportal.com www.tarahaat.com 160 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT -8: RURAL CONSUMER BEHAVIOR Structure 8.0 Learning Objectives 8.1 Introduction 8.2 Lifestyle of Rural Consumer 8.3 Change In Rural Consumer Behaviour 8.4 FMCG in rural India 8.5 Summary 8.6 Keywords 8.7 Learning Activity 8.8 Unit End Questions 8.9 References 8.0 LEARNING OBJECTIVES After studying this unit, you will be able to: Need for Gearing Advertising and Pricing Strategies to Suit Rural Markets Recent Challenges in understanding Rural consumer behaviour Factor Responsible for change of Consumer Behaviour 8.1 INTRODUCTION A few a long time back, Hindustan Lever centered on item advancement methodologies for country buyers who still did not utilize cleanser in India. Their research shown that a prevailing consumer habit in rural India was to utilize cleanser for hair and body care. Instead of attempt to alter instilled buyer conduct, item engineer centered on making an opportunity customers wanted; an item that was helpful and low-cost. The result was a unused 2-in-1 cleanser, an item that cleans the hair and body, and is focused on towards buyers in provincial regions. If the marketers are to supply realistic solutions to the issue of buyers, they must know their clients, their needs and wants, their attitudes, values, goals and desires. Thus, marketers must have up-to-date data about consumer request and consumer behaviour. Country buyers are in a general sense different from their urban counterparts in that they talk diverse dialects and lingo, have moo level of literacy and constrained obtaining control. Advance, there are territorial varieties in their tastes, propensities and traditions and they have constrained get to modern media of communication. All this calls for unused approach 161 CU IDOL SELF LEARNING MATERIAL (SLM)
to provincial showcasing with center on the 4 A’s, to be specific Adequacy, Reasonableness, Mindfulness and Availability. These are posturing major challenges to marketers focusing on rustic markets. For promoting victory, it is fundamental that the item or benefit is made acceptable to rural buyers. This requires adjusting, bundling, branding and overhauling necessities to suit the inclinations of country shoppers. Another complex errand is that of making items and administrations reasonable for country customers, considering their moo salary which accounts for their being amazingly price-sensitive, whereas at the same time ensuring tall quality standard. In a offered to handle this issue of the offering, independent of the socio-demographic- economic inconstancy, companies have received different advancement methodologies such as offering littler packs at moo costs and without the ornaments that are regularly given beside the items. Other than tending to the problems involved in marking products and administrations satisfactory and reasonable within the rural markets, there's the issue of generating awareness around them, which requires the adoption of the proper communication technique pointed at making the specified mindfulness among people. Meaning of consumer behavior Consumer behaviour is the think about of how person clients, bunches or organizations select, purchase, utilize, and arrange thoughts, merchandise, and services to fulfill their needs and needs. It refers to the activities of the shoppers within the commercial center and the underlying thought processes for those actions. Marketers expect that by understanding what causes the customers to purchase specific products and administrations, they will be able to determine—which products are required within the commercial center, which are out of date, and how best to display the products to the consumers. The consider of consumer behaviour accept that the customers are performing artists within the marketplace. The perspective of part hypothesis expect that consumers play different parts within the commercial center. Beginning from the information provider, from the client to the payer and to the disposer, consumers play these parts within the choice process. The parts also shift completely different utilization circumstances; for case, a mother plays the part of an influencer in a child’s buy handle, while she plays the part of a disposer for the items expended by the family. Some selected definitions of consumer behaviour are as follows: 1. Agreeing to Engel, Blackwell, and Mansard, ‘consumer conduct is the activities and choice forms of individuals who buy goods and services for individual consumption’. 2. According to Louden and Bitta, ‘consumer conduct is the choice prepare and physical activity, which people lock in in when assessing, procuring, utilizing or arranging of merchandise and services’. 162 CU IDOL SELF LEARNING MATERIAL (SLM)
Meaning of Rural Consumer: Rural consumers go to their closest cities when they need to purchase items like tractors, tvs, bikes, etc. For most towns, the closest cities can be as distant as 50 kms absent. Most of these cities are locale towns. Rural consumers go to the ‘local market’ which is regularly around 5- 10 km. from their towns to purchase the day by day family prerequisites like sugar, tea, vegetable oil, etc. Some family member, more likely the eldest male part, may be reaching to this neighborhood market even day by day and buying necessities of the family. Rural families buy their items as they get depleted and don't purchase all their necessities once a month or fortnight as urban customers do. There's no planned, periodic obtaining of family necessities in rural markets. An item is bought when it is required. So when an item isn't accessible to a rural consumer when it is required, he will do without it and the company loses the deal of the item that the rural consumer would have consumed. It is imperative that the items are accessible locally so that the rural consumer can purchase them helpfully when require for them arises. It isn't exceptional to send a youth to purchase tea, sugar and biscuits when a visitor arrives. It isn't indeed uncommon to surge a child to purchase cooking oil when the woman of the house finds that she has run out of cooking oil after she has put the vegetables within the searing pan. These incidents are not embarrassing for provincial customers. They fair put off acquiring for as long as they can. To be able to cater to this sort of eccentric but pressing request, items ought to be made available at the town level. It isn't enough to form items available at the nearby market. Most companies feel that it isn't financially practical to have a retailer in each town. Interested companies will have to be advance a common retailer in one town. The chosen retailer will stock for all intents and purposes everything that the rustic buyer of the town may require. He will stock quick moving buyer products, fertilizers, cement, diesel, items required for marriage and other ceremonies, all sorts of nourishment things, gas cylinders, etc. The thought is that in case all these items are sold by one retailer, it'll have sufficient volumes and the retailer would be inquisitive about making adequate speculations. Running a rural retail operation isn't very exorbitant. The retailer may be an inhabitant of the town and his house is the shop. He require not build any additional space for the shop. Since the shop is within the house, all the family individuals help in running the shop as and when they are available. The shop can be open for long hours without causing much push to the retailer. And since the retailer is based within the village, he will not look for higher edges as he may be having a few other implies of pay as well. But the companies whose items will be sold will need to oversee the back-end of the rural retail operations. Rural retailing has so distant fizzled since the rural retailer bought goods from the neighbourhood advertise and sold them within the shop in his town. In this manner he had to 163 CU IDOL SELF LEARNING MATERIAL (SLM)
offer the items at a cost higher than what they were being sold within the neighbourhood markets. And since the neighbourhood showcase was effortlessly open to the rural consumers, they favoured to purchase from the neighbourhood showcase than from the retailer within the town. This perception of the items sold at provincial retail shop as being expensive has got to be removed. The companies will need to combine their supplies and transport them in a common vehicle to a rural retailer and make him competitive in comparison to retailers within the nearby advertise. On the off chance that companies co- operate among themselves to supply their things to the rustic retailer proficiently, country retailing will be financially practical and will be a really critical instrument to urge rural consumers to purchase more habitually, and more assortment of items. Country retailing is basic on the off chance that companies need to form a consumerist rural society. Figure 8.1 Distribution Decesion There's an alternative to rural retailing. Door-to-door selling or a few form of it can be utilized. Retailers at the neighbourhood advertise can utilize door-to-door salespeople. These sales representatives can move on bikes and ought to concur to acknowledge payment in grains. Door-to-door offering is very compelling in overcoming consumers’ hesitance to purchase. Consumers keep delaying attending to a retail store since they don't need to spend cash but when a door-to-door sales representative arrives, they are likely to succumb to his offerings. 8.2 LIFESTYLE OF RURAL CONSUMER Factors influencing rural consumer behavior 164 Consumer purchases are influenced strongly by or there are four factors. 1. Cultural Factor CU IDOL SELF LEARNING MATERIAL (SLM)
2. Social Factor 3. Personal Factor 4. Psychological Factor. 01. Cultural Factor:- Cultural factor partitioned into three sub components (i) Culture (ii) Sub Culture (iii) Social Class Culture is the set of essential values perceptions, needs, and behaviors learned by a part of society from family and other imperative educate. Culture is the most basic cause of a person's needs and behavior. Every group or society features a culture, and social impacts on buying behavior may change significantly from nation to country. Sub-culture: - A bunch of individuals with shared esteem systems based on common life encounters and situations. Each culture contains littler sub societies a gather of individuals with shared esteem framework based on common life experiences and circumstances. Sub culture incorporates nationalities, religions, racial gather and geographic districts. Numerous sub-cultures make up imperative advertise sections and marketers regularly plan products. Social Class: - Nearly each society has a few shape of social structure; social classes are society's generally changeless and requested divisions whose individuals share comparative values, interface and behavior. 02. Social Factors:- A consumer's behavior also is influenced by social factors, such as the (i) Groups (ii) Family (iii) Roles and status Groups: - Two or more individuals who associated to achieve person or shared objectives. A person's behaviors are affected by numerous little groups. Groups that have a coordinate impact and to which an individual has a place are called participation groups. A few are essential groups incorporates family, companions, neighbors and associates. A few are auxiliary groups, which are more formal and have less customary interaction. These incorporate organizations like devout groups, proficient affiliation and exchange unions. Family: - Family individuals can unequivocally impact buyer behaviour. The family is the foremost vital customer buying organization society and it has been investigated broadly. Marketers are inquisitive about the parts, and impact of the spouse, spouse and children on the buy of diverse items and services. Roles and Status: - An individual has a place to numerous bunches, family, clubs, organizations. The person's position in each bunch can be characterized in terms of both part and status. For case. M & \"X\" plays the part of father, in his family he plays the part of spouse, in his company, he plays the part of chief, etc. A Part comprises of the exercises individuals are anticipated to perform concurring to the people around them. 03. Personal Factors:- 165 CU IDOL SELF LEARNING MATERIAL (SLM)
It includes: i) Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life Style (v) Personality and self-concept. Age and Life cycle Organize: - Individuals changes the products and services they purchase over their lifetimes. Tastes in nourishment, dress, furniture, and entertainment are regularly age related. Buying is additionally formed by the organize of the family life cycle. Occupation: - A person's occupation influences the merchandise and administrations bought. Blue collar laborers tend to purchase more tough work dress, though white-collar specialists purchase more commerce suits. A Co. can indeed specialize in making items required by a given word related gather. In this way, computer program companies will plan different items for brand directors, bookkeepers, engineers, legal counselors, and doctors. Economic situation: - A person's financial circumstance will influence item choice Life Fashion: - Life Fashion could be a person's Design of living, understanding these strengths includes measuring consumer's major AIO measurements, i.e., exercises (Work, leisure activities, shopping, bolster etc.) intrigued (Nourishment, mold, family diversion) and conclusions (almost themselves, Commerce, Products) Personality and Self-concept: - Each person's particular identity impacts his or her buying conduct. Identity alludes to the special mental characteristics that lead to moderately steady and enduring reactions to one's claim environment. 04. Psychological Factors: - It includes: i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes. Motivation: - Thought process (drive) a require that's adequately squeezing to coordinate the individual to look for fulfillment of the need Perception:- The prepare by which individuals select, Organize, and interpret data to make a significant picture of the world. Learning: - Changes in an person ‘s behaviour arising from experience. Beliefs and attitudes: - Conviction may be an expressive thought that an individual holds almost something. Attitude, a Person's reliably favorable or unfavorable assessments, sentiments, and propensities towards an protest or idea 8.3 CHANGE IN RURAL CONSUMER BEHAVIOUR Buying behaviour is the decision processes and acts of people/prospective customers involved in buying and using products. It helps in understanding: i. Why consumers make the purchases that they make? 166 CU IDOL SELF LEARNING MATERIAL (SLM)
ii. What factors influence consumer purchases? iii. The changing factors in our society. Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer. A retailer needs to analyze buying behavior for: i. Buyer’s reactions to a retailer’s marketing strategy has a great impact on the retailer’s success. ii. The marketing concept stresses that a retailer should create a marketing strategy that satisfies (gives utility to) customers, therefore need to analyze what, where, when and how consumers buy. iii. Retailers can better predict how consumers will respond to marketing strategies. Stages of the Consumer Buying Process: There are six stages to the Consumer Buying Decision Process (for complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all six stages, determined by the degree of complexity: Figure 8.2 Buying Process 1. Problem Recognition (awareness of need): Problem Recognition (mindfulness of require) contrast between the specified state and the real condition. Shortfall in combination of products. Hunger—Food. Starvation invigorates your got to eat. Can be stimulated by the retailer through product information- a commercial 167 CU IDOL SELF LEARNING MATERIAL (SLM)
for a unused match of shoes stimulates your recognition that you simply require a modern combine of shoes. 2. Information search: i. Internal search, memory. ii. External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources, etc. A successful information search leaves a buyer with possible alternatives, the evoked set. Hungry, want to go out and eat, evoked set is: i. Chinese food. ii. Indian food. iii. Mexican Food. 3. Evaluation of Alternatives: Got to build up criteria for assessment, highlights the buyer needs or does not want. Rank/weight choices or continue look. May choose that you just need to eat something fiery, Indian gets highest rank etc. If not fulfilled together with your choice, at that point return to the look stage. Can you think of another eatery? See within the yellow pages etc. Data from diverse sources may be treated in an unexpected way. Marketers attempt to impact by “framing” alternatives. 4. Purchase decision: Choose buying alternative, includes product, package, store, method of purchase etc. 5. Purchase: May differ from decision, time lapse between 4 & 5, product availability. 6. Post-Purchase Evaluation – outcome: Satisfaction or dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. After eating an Indian meal, you may think that really you wanted a Chinese meal instead. In spite of the same needs, desires, beliefs and states of mind, certain particular characteristic features of country customer conduct call for one of a kind promoting methodologies to be unmistakably created. The ocean alter one finds in India, is that material and multinational companies have begun concentrating on country markets to offer their items with different 168 CU IDOL SELF LEARNING MATERIAL (SLM)
promoting inputs. The rural market’s commitment to the full showcase has gone up within the later scenario. Weight in the urban advertise are driving numerous to move into rural areas since of a few reasons like demand for overwhelming special use due to tough competition, diminish in item life cycle, increment within the mindfulness level of customers, etc. As a result, the rural markets are getting to be green pastures for marketers. They are developing faster than the urban markets. The possibilities of the rural market bend like a “woken up resting giant”, and to tap these potentialities or openings, marketers have to be have challenging showcasing strategies. In any case, for misuse of this advertise, its scattered nature and the changing behavioral designs of consumers must be recognized and analyzed, so that improved stage for the abuse of the opportunities can be created. The fundamental changes within the consumer behaviour can be highlighted as takes after: Better Quality of Life: Increment in income and progressed mindfulness level have made villagers look for ant better quality of life. This crave has driven to noteworthy changes within the showcase estimate of shopper items. Provincial utilization presently covers a variety of things, from food to electronic things. Desire for New Products and Fashion Consciousness: The country customers are willing to test with unused items and a variety of brands without any delay. This makes it easier to induce higher trial rates when new items bend propelled within the towns. Increase in awareness of unused designs invigorates the request for material products, readymade garments and makeup. The market for these items within the rural areas is developing at a much speedier pace as compared to other items. No Crave to Spare: A new tendency is taken note among rural consumers; they are willing to spend cash rather than keeping it. Nowadays, they spend their excess salary on a few items like dress, excitement things, insurance policies, etc. Impact Through Exhibit: Rural consumers have more prominent confidence in an item on the off chance that they really sec it in utilize. It is hence valuable to conduct shows with a unused item to fortify creditability. This sort of special campaigning hurries buyer adoption. Role of the Retailers: The rural consumer has always depended strongly on the proposal of country retailers. This figure can have an affect on the distribution organize. The retailer can gotten to be a very valuable interface between the advertiser and the rural consumer. Consumer Buying Behaviour Models With the sort of buying choices, consumer decision-making shifts. Costly and complex buys are likely to include more buyer deliberations and more members. Based on the degree of buyer involvement and the degree of contrasts among brands, Henry Assault distinguished four sorts of consumer-buying conduct. Complex buying behaviour When consumers are highly included in a buy and mindful of critical contrasts among brands, they lock in in complex buying conduct. This is for the most part the case when the item is costly, bought rarely, unsafe and exceedingly self-expressive. The advertiser requires 169 CU IDOL SELF LEARNING MATERIAL (SLM)
separating the brand’s highlights, utilize print media to portray the brand’s benefits and motivate store deals personnel and the buyer’s colleagues to impact the ultimate brand choice e.g., vehicle, two-wheelers, consumer durables, etc. Dissonance-reducing buying behaviour The customer in some cases is highly involved in a buy, but sees miniature contrast within the brands. The tall involvement is based on the truth that the buy is costly, rare and risky. For illustration, consider carpet buying. After buying, the customer may encounter disharmony that stems from taking note certain disquieting highlights of the carpet or hearing positive things almost other carpets. Hence, marketing communication ought to point at providing assessments and convictions that offer assistance the customer feel great almost his or her brand selection. Habitual buying behaviour A part of items are bought under conditions of moo customer association and the absence of critical brand contrasts. Consider salt. Customers have slight inclusion within the item category. They go to the store and reach for the brand. In the event that they keep getting the same brand, it is out of propensity, not strong brand devotion. It happens with basically low- cost, regularly acquired items. Marketers discover it successful to resort to notice repetitions, cost and deals promotions to fortify item trial. Variety-seeking buying behaviour Some buying situations are characterized by low-consumer association, but noteworthy brand differences. Here, buyers frequently do a parcel of brand exchanging. Think almost treats. The buyer may get another brand out of boredom or a want for a distinctive taste. The marketer will attempt to empower habitual buying conduct by dominating the shelf-space, dodging out of stock conditions, supporting visit update promoting, offering lower costs, bargains, coupons and free tests. Factors Affecting Consumer-buying Behaviour The various factors that affect buying behaviour of in rural India are as follows: Environment of the consumer: The environment or the surroundings in which the consumer lives includes a very solid impact on the buyer conduct. E.g., zap and water supply influence request for durables. Geographic impact: The geographic area in which the country buyer is arranged moreover talks approximately the thought prepare of the shopper. For instance, towns in south India acknowledge innovation faster than in other parts of India. Hence, HMT offers more winding observes within the north whereas they offer more quartz observes within the south. Influence of occupation: The arrive proprietors and benefit can buy more of category 2 and category 3 durables than rural labourers. Place of buy: Company’s ought to get to the impact of retailers on both consumers at village shops 170 CU IDOL SELF LEARNING MATERIAL (SLM)
Creative use of item: The consider of item gives pointers to the company on the require for instruction and also for modern item ideas. E.g., Godrej hair-dye utilized to colour horns of bull. Washing machine utilized for making lassie. Brand preference and dependability: The individuals in rustic showcase may not donate preference for brand items, but they may be more steadfast to specific retail store. Social Factors The social factor comprises of the taking after three factors: Sociological components: Buyer society or the community is important. The social setup impacts shopper life fashion. The social constitution and changes impact client taste, propensities and lifestyles. Anthropological factors: The sensible societies and subcultures and living designs impact offering methodologies, promoting deals advancement and pressing. For case, the consumers in East India have diverse inclinations in comparison to shoppers in North India. Psychological variables: Consumer conduct states of mind identity and mental make ups are one of a kind. The ponder of conduct is very critical to advance promoting mix Technological Factors The fast growth of media transmission offices and portable phone has given openings for rural people to keep in touch with men and markets. Development of TV systems and sensible channels has permitted the marketers to pass on message approximately item and administrations to rustic individuals. In rural areas particularly in expansive towns and towns close to towns and cities, children and youth have get to data, such as work openings, national news, climate conditions, bank advances, etc. IT and web are beyond any doubt to spread data in rural India, in spite of the fact that at a slower rate as compared to urban advertise. Economic Factors The economic factors are listed as follows: Competition: A fine and healthy competition brings in great and in general advancement in economic activities. It moreover brings great amount, great quality and price. Consumers: Today, the buyer is very learned and specific. His advance and well-being ought to be the point of any economic activity. Price: Pricing may be a fragile issue where it ought to be showcase neighborly, not as well high or too moo. The marketers have to be beyond any doubt to induce decent returns on investment. Ethical forces: Business short moral values brings degeneration. In the long-run, it brings issues. No standardization, misrepresentation and abuse are fundamental moral values in such organization. 171 CU IDOL SELF LEARNING MATERIAL (SLM)
Political strengths: The government policies towards exchange and commerce, internal tax collection and special treatments have an impact on the marketing strategies. The promoting environment must meet the political system in which a government is made to work. Physical forces: The framework accessibility for development and capacity of products play an imperative part within the physical dispersion of merchandise and coming to the customers. Productive and cheaper coordinations offer assistance the market in a big way. Technological powers: The fast-changing science and innovation gives a cutting edge to the showcasing of items. The changes warrant changes in promoting, inputs and techniques. Faster and effective communication and transport frameworks have speeded up advertiser. The capital is made to work faster and harder. So, within the case with the advertiser, he needs to utilize these modern marketing apparatuses and offices in designing and actualizing his showcasing procedures which are versatile to the alter in environment and guarantee success. Cultural Factors Influencing Consumer Behaviour Cultural factors apply the broadest and most profound impact on buyer conduct. The marketer ought to get it the part played by the buyer’s culture. Culture is the most basic component that shapes a person’s needs and behaviour. In India, there are so numerous diverse societies, which as it were goes on to form the marketer’s work harder. A few of the few social variables that impact buyer behaviour are: 1. Product (colour, measure, plan, shape): There are numerous illustrations that back this point. For illustration, the Tata Sumo, which was propelled in rustic India in a white colour, was not well acknowledged. But be that as it may, when the same Sumo was relaunched as Spacio (a diverse title) and in a shinning yellow colour, with a bigger seating capacity and capacity to transport great, the acknowledgment was higher. Another great example would be Philips audio systems. Urban India looks at technology with the perspective of ‘the littler the better’. Be that as it may, in provincial India, the viewpoint is completely inverse. That's the most reason for the expansive acknowledgment of huge sound systems. Hence, Philips makes audio systems, which are huge in measure and get acknowledged in provincial India by their sheer size. 2. Social practices: There are so numerous distinctive societies, and each culture exhibits different social hones. For illustration, in many towns they have common bath areas. Villagers utilized to purchase one Lifebuoy cake and cut it into littler bars. This made a difference lifebuoy to present littler 75-gram cleanser bars, which may be utilized individually. 3. Decision-making by male head: The male in Indian culture has continuously been given the assignment of key choice maker. For case, the Mukhiya’s conclusion (Head of the town), 172 CU IDOL SELF LEARNING MATERIAL (SLM)
in most cases, is shared with the rest of the town. Indeed in a house the male head is the final decision maker. In provincial regions, this slant is exceptionally prominent. 4. Changes in sparing and venture patterns from gold, arrive, to tractors, VCR’s, LCV’s. Rural Buying Process The most effective and therefore usual buying process involves the following areas: 1. Problem recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post purchase behaviour 1. Problems Recognition: Issue acknowledgment is defined by self-evident or characteristic require of the buyer. The major point of rustic showcasing research rests upon in attempting to discover out which are the key items of essential needs that the provincial consumers are willing to buy but confronting issues to purchase it. 2. Information search: The promoting data look handle is almost the same as for the urban markets as for the rustic markets. It includes: Personal sources: Family, companions, neighbors Commercial sources: Notices, Salespersons, Merchants, Bundles, Displays Public Sources: Mass media, Consumer rating organizations. Experiment’s self: Taking care of the item, tests, utilizing tests of items like cleanser sachets. 3. Evaluation of Alternatives Problem: purchase of a tractor The decision criteria could be identified as follows: (a) Price (b) Manufacture/Model (c) Support (d) Repair record (e) Warranties (f) Reliability (g) Multiple uses Weightage to criteria allotted by consumer: Price 70, Manufacture/Model 60, Support 40, Repair record 75, Warranties 50, Reliability 70. Alternate choices: Escorts, Same, Ferguson, Local Assembly. 173 CU IDOL SELF LEARNING MATERIAL (SLM)
Now for each of these tractors put weight. Escorts: Price 30, manufacture/model 50, support 40, repair record 60, warranty 40, reliability 60. As can be seen cost weightage is contrarily proportional to cost. In other words higher the cost, lower the weightage. Usually the client chooses the one where the numbers include up to most elevated add up to. At that point the choice is made and the buy done. 4. Purchase Decision: By and large, rests upon a number of variables including motivation and nature of their needs. The buy choice of a shopper is also affected by changing nature of his objectives and needs. When a specific objective or need cannot be satisfied, a substitute goal emerges. Post Buy Conduct: Post buy conduct comes from fulfillment, utilize and transfer after utilize. It may be based upon the consumer’s possess satisfaction emerging due to his inclination for a specific more profitable choice of the accessible options. In some cases motivational inquire about is conducted therapy of the consumer’s intellect to get it, the now and then not so clear reasons for their thought processes and post buy behaviour. 174 CU IDOL SELF LEARNING MATERIAL (SLM)
Table 8.1 Urban and Rural Buying Process Factors Responsible For Change Of Consumer Behaviour Source of Information. Radio has greatest reach in terms of giving data to provincial buyers, and TV is the foremost vital source of data for urban buyers. A majority of the country and urban buyers draw data from friends and neighbors. Role of Retailers. More country customers assemble data from retailers, compared to those in urban areas. Role of Friends. Friends and retailers are the foremost solid sources of data, compared to other sources in both provincial and urban regions, and retailers play a vital part in provincial markets, especially for convenience products. Role of Notice. Exceptionally few buyers feel that notices through mass media have made any impact. 175 CU IDOL SELF LEARNING MATERIAL (SLM)
Brand Loyalty. In a larger part of cases, the family individuals select the brand in both country and urban areas. Income Group. Center and higher salary consumers from urban regions and higher salary buyers in provincial regions are fairly conscious of brand utilize and social prestige. Role of Cost. Cost is relatively more critical within the case of tough items and less vital for non-durables for both provincial and urban consumers. Quality Item. Consumers in both provincial and urban zones by and large see a item to be of second rate quality when it is priced moo and when an item is priced tall, the quality of the item is seen to be high. P lace of Buying. A larger part of the buyers purchase the convenience items from the same shop, demonstrating tall shop devotion in both provincial urban markets; however, rustic higher salary buyers purchase from exterior the village. The advertiser must be mindful of these variables in order to create an suitable MM for its target market. 1. Personal: Unique to a particular person. Demographic Factors. Sex, Race, Age etc. Who in the family is responsible for the decision-making? Young people purchase things for different reasons than older people. i. Motives: A motive is an internal energizing force that orients a person’s activities towards satisfying a need or achieving a goal. Actions are affected by a set of motives, not just one. If marketers can identify motives than they can better develop a marketing mix. MASLOW hierarchy of needs! a. Physiological. b. Safety. c. Love and belonging. d. Esteem. e. Self-actualization. Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases. ii. Perception: 176 CU IDOL SELF LEARNING MATERIAL (SLM)
What do you see? Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. Selective Exposure: Select inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies current needs, intensity of input changes (sharp price drop). Selective Distortion: Changing/twisting current received information, inconsistent with beliefs. Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. Selective Retention: Keep in mind inputs that back beliefs, forget those that don’t. Normal supermarket customer is exposed to 17,000 items in a shopping visit enduring 30 minutes – 60% of buys are spontaneous. Uncovered to 1,500 advertisements per day. Can’t be anticipated to be mindful of all these inputs, and certainly will not hold many. Interpreting data is based on what is as of now familiar, on information that's put away within the memory. iii. Ability and Knowledge: Need to get it individuals’ capacity to learn. Learning changes in a person’s conduct caused by data and encounter. When making buying decisions, buyers must prepare data. Information is the nature with the item and expertise. Inexperienced buyers often utilize costs as an pointer of quality more than those who have information of an item. Learning is the process through which a moderately lasting alter in conduct comes about from the results of past behaviour. iv. Attitudes: Knowledge and positive and negative sentiments around an protest or activity—may be tangible or intangible, living or non-living—drive perceptions. Person learns attitudes through encounter and interaction with other individuals. Shopper attitudes toward a firm and its items greatly impact the victory or disappointment of the firm’s promoting strategy. v. Personality: All the internal traits and behaviours that make a person unique, uniqueness arrives from a person’s heredity and personal experience. Examples include: 177 CU IDOL SELF LEARNING MATERIAL (SLM)
a. Workaholism. b. Compulsiveness. c. Self-confidence. d. Friendliness. e. Adaptability. f. Ambitiousness. g. Dogmatism. h. Authoritarianism. i. Introversion. j. Extroversion. k. Aggressiveness. l. Competitiveness. Characteristics affect the way individuals carry on. Marketers attempt to match the store picture to the seen picture of their clients. There's a frail association between identity and buying conduct; this may be due to unreliable measures. Nike advertisements. Buyers buy items that are reliable with their self concept. vi. Lifestyles: 178 CU IDOL SELF LEARNING MATERIAL (SLM)
Recent US trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy, natural lifestyle. Lifestyles are the consistent patterns people follow in their lives. 2. Social Factors: Consumer wants, learning, motives, etc. are influenced by opinion leaders, person’s family, reference groups, social class and culture. 1. Opinion leaders: Spokesperson etc. Marketers try to attract opinion leaders…they actually use (pay) spokespeople to market their products. 2. Roles and Family Influences: Role…things you should do based on the expectations of you from your position within a group. People have many roles. Husband, father, employer/employee. As individuals’ role is changing, marketers must continue to update information. Family is the most basic group a person belongs to. Marketers must understand: a. That many family decisions are made by the family unit. b. Consumer behaviour starts in the family unit. c. Family roles and preferences are the model for children’s future family (can reject/alter, etc.). d. Family buying decisions are a mixture of family interactions and individual decision- making. 179 CU IDOL SELF LEARNING MATERIAL (SLM)
e. Family acts as an interpreter of social and cultural values for the individual. The family life-cycle families go through stages, each stage creates different consumer demands: a. Bachelor stage… b. Newly married, young, no children…me c. Full nest I, youngest child under 6 d. Full nest II, youngest child 6 or over e. Full nest III, older married couples with dependent children f. Empty nest I, older married couples with no children living with them, head in labour force g. Empty nest II, older married couples, no children living at home, head retired h. Solitary survivor, in labour force i. Solitary survivor, retired j. Modernized life-cycle includes divorced and no children. 3. Reference Groups: Individual identifies with the bunch to the degree that he takes on numerous of the values, attitudes or practices of the gather individuals, families, companions, sororities, civic and proficient organizations. Any gather that features a positive or negative impact on a people state of mind and behaviour. Membership groups (have a place to) affinity promoting is 180 CU IDOL SELF LEARNING MATERIAL (SLM)
centered on the desires of consumers that have a place to reference groups. Marketers get the groups to endorse the item and communicate that endorsement to its individuals. Aspiration groups (need to have a place to) Disassociate bunches (don't need to have a place to) Honda, tries to disassociate from the “biker” group. The degree to which a reference group will influence a buy choice depends on an individual’s helplessness to reference group impact and the quality of his/her involvement with the group. 4. Social Class: An open group of individuals who have similar social rank. Social class influences many aspects of our lives. Upper middle class Indian prefer luxury cars such as Mercedes. a. Upper Indian-upper-upper class, 3%, inherited wealth, aristocratic names. b. Lower-upper class, 1 .2%, newer social elite, from current professionals and corporate elite. c. Upper-middle class, 12.5%, college graduates, managers and professionals. d. Middle-middle class, 32%, average pay white collar workers and blue collar friends. e. Working class, 38%, average pay blue collar workers. f. Lower class, 9%, working, not on welfare. g. Lower-lower class, 7%, on welfare. Social class decides to a few degree, the sorts, quality, amount of items that an individual buys or uses. Lower course individuals tend to remain near to home when shopping and they don't lock in in much pre-purchase data gathering. Stores venture unequivocal lesson images. Family, reference bunches and social classes are all social impacts on buyer conduct. All work inside a bigger culture. 5. Culture and Sub-culture: 181 CU IDOL SELF LEARNING MATERIAL (SLM)
Culture refers to the set of values, thoughts, and states of mind that are acknowledged by a homogenous bunch of individuals and transmitted to the next era. Culture moreover decides what is acceptable with item promoting. Culture decides what individuals wear, eat, reside and travel. Social values within the Europe are great wellbeing, instruction, independence and freedom. 8.4 FMCG IN RURAL INDIA The number of rural supermarkets (haats) in India 42,000 exceeds the total number of retail chain stores in the US (35,000); In 2001-02, LIC sold 55 per cent of its policies in rural India; Of the two million BSNL mobile phone connections, 50 per cent are in rural; Of the 20 million who have signed up for Rediff mail, 60 per cent are from small towns. Of the one lakh who have transacted on Rediff online shopping site, 50 per cent are from small towns; 24 million Kisan Credit Cards (KCC) issued in rural areas exceeds the 17.7 million credit plus debit cards issued in urban India. A whopping Rs. 52,000 crore has been sanctioned under the KCC scheme; (vi) The number of middle and higher income families (Having Rs. 70,000 plus annual income) in rural (21.7 million) and urban (24.2 million) is nearly the same; Electricity consumption by the agricultural sector has shown a sharp increase from 17.6 per cent of total consumption in 1980-81 to 29.2 per cent in 1999-00. During the same period, industry share has dropped from 58.4 per cent to 34.8 per cent. Indian Competitiveness and Comparison with the World Markets The following factors make India a competitive player in FMCG sector: Availability of raw materials Since of the diverse agro-climatic conditions in India, there's a huge raw material base appropriate for nourishment preparing businesses. India is the largest maker of animals, drain, sugarcane, coconut, flavors and cashew and is the moment biggest maker of rice, wheat and natural products & vegetables. India moreover produces caustic pop and pop fiery debris, which are required for the generation of cleansers and cleansers. The accessibility of these crude materials gives India the area advantage. Labor cost comparison 182 CU IDOL SELF LEARNING MATERIAL (SLM)
Low cost labor gives India a competitive advantage. India's labor fetched is among the least within the world, after China & Indonesia. Low labor costs grant the advantage of moo fetched of generation. Many MNC's have set up their plants in India to outsource for residential and send out markets. Presence across value chain Indian companies have their nearness over the esteem chain of FMCG division, right from the supply of crude materials to packaged products within the food-processing division. This brings India a more fetched competitive advantage. For case, Amul supplies drain as well as dairy items like cheese, butter, etc. Growth Prospects of FMCG in Rural India With the nearness of 12.2% of the world population within the towns of India, the Indian rustic FMCG market is something no one can neglect. Increased center on cultivate segment will boost provincial livelihoods, thus giving way better growth prospects to the FMCG companies. Superior infrastructure offices will progress their supply chain. FMCG segment is additionally likely to benefit from developing request within the advertise. Because of the moo per capita utilization for nearly all the items within the nation, FMCG companies have monstrous possibilities for development. And in case the companies are able to alter the mentality of the shoppers, i.e. in the event that they are able to require the buyers to branded items and offer modern era items, they would be able to create higher development within the close future. It is expected that the rustic pay will rise in future, boosting acquiring control within the farmland. In any case, the request in urban areas would be the key growth driver over the long term. Moreover, increment within the urban populace, in conjunction with increase in wage levels and the accessibility of unused categories, would offer assistance the urban ranges keep up their position in terms of utilization. At show, urban India accounts for 66% of add up to FMCG utilization, with provincial India bookkeeping for the remaining 34%. Be that as it may, rural India accounts for more than 40% utilization in major FMCG categories such as individual care, texture care, and hot refreshments. In urban regions, domestic and personal care category, including skin care, family care and ladylike cleanliness, will keep developing at generally appealing rates. Inside the nourishments portion, it is assessed that handled nourishments, pastry kitchen, and dairy are long-term development categories in both rustic and urban areas. 8.5 SUMMARY • The understanding of customers should always come from the consumer. The buyer conduct related data should be basically based on an enquiry into their buy prepare. Different variables, such as financial, social and mental administer the buy act by a 183 CU IDOL SELF LEARNING MATERIAL (SLM)
shopper. Customer conduct is seen to include a complicated mental process as well as physical movement (buy choice). Shopper conduct may be a choice handle and physical action people lock in in, when assessing, securing, utilizing or arranging merchandise and administrations. Customer conduct alludes to the acts of people specifically involved in getting and utilizing products and administrations and incorporates the choice prepare that gives a buy. Customer conduct isn't scarcely the ponder of what individuals devour, but too ‘where’, ‘how often’ and ‘under what conditions’ the item is expended. • Consumer behaviour analysis is the utilize of conduct standards, more often than not picked up tentatively, to decipher human financial utilization. It stands scholastically at the crossing point of financial psychology on one hand, and showcasing science - the ponder of the conduct of shoppers and marketers, particularly as they associated - on the other. While conduct standards are central to its hypothetical and experimental inquire about program, its journey to decipher normally occurring customer practices such as obtaining, sparing, brand choice, the appropriation of developments, and the utilization of services raises unpretentious issues. • The life-style and purchasing designs of country shoppers are experiencing significant changes. Broad accessibility of buyer items in town amid the final decade is changing the line and state of mind of country consumers. Presentation of TV and radio has made buyer more mindful, which result in composite impact of change within the obtaining designs and propensities of country shoppers. This alter has made an idle opportunity and demand calling for a one of a kind formative marketing. 8.6 KEYWORDS Consumer behaviour: The behaviour exhibited by consumers in buying and using products and services is called consumer behaviour. Retailer: A person or business that sells goods to the public in relatively small quantities for use or consumption rather than for resale. Penetration: The obtaining of a share of a market for some commodity or service. Branding: It is a marketing practice in which a company creates a name, symbol or design that is easily identifiable as belonging to the company. This helps to identify a product and distinguish it from other products and service. 8.7 LEARNING ACTIVITY 1. How should rural consumers be classified? ___________________________________________________________________________ ___________________________________________________________________________ 2. How do you influence a rural consumer? 184 CU IDOL SELF LEARNING MATERIAL (SLM)
___________________________________________________________________________ ___________________________________________________________________________ 8.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What are the steps in rural buying process? 2. What are the factors involved in rural marketing? 3. How do the 4As reflect the 4 Ps of rural marketing mix? 4. What are the factors on which consumer purchasing depends on? 5. How do cultural factors impact consumer behaviour? Long Questions 1. What do you mean by consumer behaviour? 2. What are the factors responsible for change of consumer behaviour? 3. Briefly explain source of information? 4. What is the role of advertisement? 5. Is affordability important to rural consumer? Why? 6. B. Multiple Choice Questions 1. What does the new approach to rural marketing with the 4 A’s refer to? a. Acceptability, Affordability, Awareness and Accessibility b. Acceptability, Affordability, Availability and Accessibility c. Awareness, Affordability, Availability and Accessibility d. Acceptability, Affordability, Availability and Awareness 2. Consumer purchases are influenced strongly by which of the following factors? a. Modern Era Factor, Social Factor, Personal Factor & Psychological Factor b. Modern Era Factor, Cultural Factor, Personal Factor & Psychological Factor c. Modern Era Factor, Social Factor, Personal Factor & Cultural Factor d. Cultural Factor, Social Factor, Personal Factor & Psychological Factor 3. Identify which of the facts from below about the rural sector are true: 185 CU IDOL SELF LEARNING MATERIAL (SLM)
a. The number of rural supermarkets (haats) in India 42,000 exceeds the total number of retail chain stores in the US (35,000); b. In 2001-02, LIC sold 55 percent of its policies in rural India c. Of the two million BSNL mobile phone connections, 50 per cent are in rural d. All of these 4. Which of the following factors has played a major role in changing rural consumer behaviour? a. Role of Retailers b. Role of Friends c. Role of Advertisement d. All of these 5. Which of the following is the correct combination of social factors that have a strong impact on rural consumer's behavior? a. Groups, Family, roles & Status b. Individual, Family, roles & Status c. Groups, Relatives, roles & Status d. Groups & Family Answers 1-a, 2-d, 3-d, 4-d, 5-a 8.9 REFERENCES Text Book NCAER, New Perspectives in Marketing, New Delhi. V.S. Ramaswamy and Namakumari S., Marketing Management, McMillan, Delhi, 1990 Kashyap, Pradeep, Amp, Raut, Siddhartha, Rural Marketing, Wiley, New Delhi Krishnamacharyulu, C.S.G and Rama Krishnan Lalitha, “Rural Marketing – Text and Cases”, Pearson Education, New Delhi. Rural Marketing, Balram Dogra Website: 186 CU IDOL SELF LEARNING MATERIAL (SLM)
https://www.insightsonindia.com/wp-content/uploads/2020/03/INSTA-PT-2020- Exclusive-Government-Schemes.pdf https://www.ibef.org/industry/indian-rural-market 187 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT - 9: RURAL MARKETING POLICIES Structure 9.0 Learning Objectives 9.1 Introduction 9.2 Formulation Of Rural Marketing Policy 9.2.1 Rural Development Programmes 9.2.2 Recent Policies For Developing Rural Marketing 9.3 Summary 9.4 Keywords 9.5 Learning Activity 9.6 Unit End Questions 9.7 References 9.0 LEARNING OBJECTIVES After studying this unit, you will be able to: Outline 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 9.1 INTRODUCTION The rural scene is now undergoing a sea-change, resulting from the multi-pronged activities undertaken for the overall development of rural areas. There have been significant improvements in the rural sector in respect of agricultural production, spread of education, banking facilities, electrification, transportation, communication, etc. All these changes 254 have led to the creation of general awareness for achieving a new and better style of living. With the increased purchasing power accessed to communication and awareness about modern life styles the rural sector needs a better marketing thrust. The recent economic policy initiatives of the government have resulted in increased investments in the corporate sector by domestic as well as overseas investors. The growth of the corporate sector means increased production and this in turn requires identification and penetration into high growth potential markets. In this contest rural markets have good prospects for most of the goods and services of this liberalized economy. It also indicates that the twenty first century is going to see the full blossoming of the Indian rural market (Chahal and Pal 1997 p 223). 188 CU IDOL SELF LEARNING MATERIAL (SLM)
A change came in 1991 when government took a series of bold initiatives to take the economy away from controls. The programme included for reaching trade fiscal marketing and industrial policy measures with a major thrust on improvement of competitive efficiency of Indian industries by utilizing foreign investment and technology to a much greater degree than in the past. Moreover the new reform measures ended the regime of licensing and controls and made the industry virtually independent. Significantly the new policy permitted the free import and export of virtually all products with some exceptions Imports of capital goods and raw materials were made more liberal. Introduction of automatic approvals of foreign technology agreements and foreign investment restructuring of public sector. Under takings and the thrust on export were other measures announced by the government with a view to improve the competitiveness of Indian industries and promotion of exports. In short determining the countries future growth and development for the first time the government came out in favor of outward oriented trade and industrial policies where export marketing was given prime importance. Under the new policy 256 industries could expand modernize diversify and internationalize their operations with greater freedom (Neelamegham 2000 p 5) This changed economic scenario gave future stretch out to tap the so far largely untapped rural sector markets. Economic reforms have enabled GDP to grow at an average annual rate of about 6.4 per cent between 1992 -93k and 1999 - 2000. Consumption too has gone up especially the consumption of manufactured FMCGs (Fast moving Consumer Goods). For 1997-98 market size of a basket of 20 consumer expendable goods in the household sector is estimated at Rs 801 billion (at current prices). consumption of the same commodities was estimated to be Rs 71 billion in 1992 - 93 showing an average annual growth of 16.7 per cent These figures also indicate that per household consumption expenditure on the goods considered has doubled from Rs 2387k in 1992- 93 to Rs 4736 in 1997- 98 Rural India in particular with a share of over 55 [per cent in total consumption of FMCGs has also witnessed a growth of about 14 percent per annum during the same period. This seems to be a fairly good growth by any standard (Brahmankar and Gupta 2000.) Indian market is undergoing a significant metamorphosis because of economic liberalization and globalization. Many players (Both national and global) are trying to capture the urban market of our country. but this market has already reached a saturation level and it is extremely difficult to tap the urban market with high profit margin. It is also not easy to penetrate profitably into the export market because of fierce competition. in export market a firm has to face challenges from MNCs (Multinational Companies) other foreign companies and domestic firms of the concerned export market in this cut throat competition everybody’s market share will shrink as everyone in chasing the same market (Dey Adhikari 1998 p 1) this realization is forcing companies to go rural. The 1990s have ushered in far reaching changes that influence the customers profile and therefore the market Literacy levels have risen (especially female literacy). 189 CU IDOL SELF LEARNING MATERIAL (SLM)
The average size of the household is reducing; nuclear families are increasing. This development has particular significance for durable goods marketers; for instance, instead of a large refrigerator for a joint family, a household may now need two or three smaller refrigerators. Also, sizeable youth segment is emerging, with its own income or pocket money, which marketers need to recognized (Godrej, 1993, p. 155). Rural India is also in the way of change, perhaps in an even more significant manner. There has been a boom in those markets, fuelled by the penetration of media; vast improvement in infrastructure facilities, like roads, and shops; telecom connectivity, successive good monsoons, and high government spending. As a result, the rural component is now bigger than the urban in many product categories (Godrej, 1993). Gone are the days when a rural consumer went to a nearby city to buy “branded products and services”. Time was when only a select household consumed 257 branded goods, be it tea or jeans. There were days when big companies flocked to rural markets to establish their brands. Today, rural markets are critical for every marketer - be it for a branded shampoo or an automobile (Kannan, 2001). Lifestyles and habits of rural people are changing. Yesterday’s luxuries are becoming today’s necessities. There is a boom of (both domestic and foreign) brands of products. Since 1991, India has been going through a process of economic reforms and liberalization. The reforms have embraced almost all aspects of the country’s economy. Policies relating to industrial licensing, trade and foreign investment have undergone major changes. In addition, significant macro-economic adjustments have also taken place. Economic institutions too have undergone significant change; the banking sector, and capital markets in particular, have been major targets of the change. And finally, structural adjustments covering areas like subsidies, the price environment and the public sector have also taken place. Collectively, these reforms aim at modernization of the country’s industrial system, removal of unproductive controls, strengthening of private investment, including foreign investment, and integration of India’s economy with the global economy. 9.2 FORMULATION OF RURAL MARKETING POLICY 9.2.1 Rural Development Programmes List of some important programmes are given below:- S.N. Programme Year ofObjective/ Description Launching 1. Green Revolution 1966-67 To increase the production of food grains, especially wheat production. 2. Training rural 1979 Programme for training of rural youth to make youth for self- them employed 190 CU IDOL SELF LEARNING MATERIAL (SLM)
Empowerment (TRYSEM) 3. Jawahar Rojgar 1989 For providing employment to rural employed Yojna 4. Mahila Samriddhi Oct. 2, To encourage the rural women to deposit money Yojna 1993 in post office saving accounts 5. Mid-day Meal Aug. To give a boost to universalisation of primary Scheme 2015 education by increasing the enrolment, attendance and nutritional status of the children. 6. Kasturba Gandhi Aug. 15, To establish girl school in districts having low Education Scheme 1997 female literacy rate. 7. Swarn Jayanti 1997 To provide gainful employment to urban employment and under employed poor through Shahri rojgar Yojna self-employment or wage employment. 8. Annapurna Yojna 1999 To provide 10 kgs. Food grains to senior citizens (who did not get pension) 9. Swarn Jayanti April 1, For eliminating rural poverty and Gram Swarozgar 1999 unemployment and promoting self-employment. yojna 10. Jan shree Bima Aug.2010 Providing insurance security to people living Yojna below poverty line 11. Pradhan Mantri Dec. 25, To fulfil basic requirements in rural areas Gramodaya Yojna 2000 12. Antyodaya Anna Dec. To provide food security to poor Yojna 2000 13. Pradhan Mantra Dec. To connect all the roads with Pacca road Gram Sadak Yojna 2000 14. Sarva Siksha 2001 Lunched in whole country to provide useful and 191 CU IDOL SELF LEARNING MATERIAL (SLM)
Abhiyan relevant elementary education for all children in the age group of 6-14 15. Sampoorna Gramin Sep. Providing employment and food security Rojgar Yojna 2001 16. Valmiki Ambedkar Dec. Constructing slum houses in urban areas Awas Yojna 2001 17. Janani Suraksha April Providing care to expectant mother Yojna 2005 18. Bharat Dec.2005 Development of rural infrastructure including Nirman Programme six components: irrigation, water supply, housing, road, telephone, and electricity. 19. Mahatma Gandhi Feb. National Rural 2006 Employment guarantee scheme 20. National Food May, 29, To increase production and productivity of Security Mission 2007 wheat, rice and pulses on a sustainable basis so as to ensure food security of the country. 21. National Rural June, Restructured from swarna jayanti gram swarojgar yojna Livelihood Mission 2011 22. National Urban Sept. 23, Restructured from swarna jayanti shahri Livelihood Mission 2013 swarojgar yojna 23. Sansad Adarsh October, To develop model village Gram Yojna 11, 2014 24. Pradhan Mantri Jan August To provide bank account to poor (Financial Dhan Yojna 28, 2014 Inclusion) 25. Deen Dayal October To improve employability , skill development Upadhyay Sramev 16, 2014 and other convenience for labour Jayate Scheme 192 CU IDOL SELF LEARNING MATERIAL (SLM)
26. Sukanya Samriddhi 22 Jan A small deposit scheme for girl child Account Yojna 2015 27. Pradhan Mantri May 9, Life insurance of Rs. 2 lakh with a premium of Jeevan Jyoti Bima 2015 Rs. 330 per year. It is run by ministry of finance. Yojana 28. Pradhan Mantri May 9, Accidental Insurance with a premium of Rs. 12 Suraksha Bima 2015 per year. It is run by ministry of finance. Yojana 29. Atal Pension May 9, Social Sector Scheme pertaining to Pension Yojana 2015 Sector 30. Digital India July 1, Aims to ensure that government services are Programme 2015 available to citizens electronically and people get benefited from the latest information and communication technology 31. Pradhan Mantri July 15 To provide skill training to 1.4 million youths Kaushal Vikas 2015 (implemented by the ministry of skill Yojna development) 32. Pradhan Mantri June 25, To enable better living and drive economic Awas Yojana 2015 growth stressing on the need for people centric (PMAY) urban planning and development. 33. Atal Mission for June 25, To enable better living and drive economic Rejuvenation and 2015 growth stressing on the need for people centric Urban urban planning and development. Transformation (AMRUT) 34. Smart Cities June 25, To enable better living and drive economic Mission 2015 growth stressing on the need for people centric urban planning and development. 35. Pradhan Mantri May 1, Launched to provide free LPG connections to 193 CU IDOL SELF LEARNING MATERIAL (SLM)
Ujjwala Yojana 2016 women from below poverty line families. 9.2.2 recent policies for developing rural marketing Important and most recent ones are listed below: 1. Shyama Prasad Mukherji Rurban Mission Launched in 2016, the programme is designed to deliver catalytic interventions to rural areas on the threshold of growth. It is now a Centrally Sponsored Scheme. There is a funding support of up to 30% of the estimated investment for each Rurban cluster, given as Critical Gap Funding (CGF), while 70% of the funds is mobilized by the States through convergence with synergic State and Central programmes and private investment and institutional funding. The mission aims to provide a new impetus to economic development at the local level. It will also provide a comprehensive transformation to these rural clusters by increasing basic services and creating well-organized rural clusters. This will lead to the overall development of the region and will promote integrated and inclusive rural development. The mission envisages the development of 300 rural clusters in a timely and holistic manner. About 296 clusters have been selected and 288 Integrated Cluster Action Plans (ICAP) have been approved. Apart from that, detailed project reports of 240 clusters have been approved. Funding: Shared between the Centre and the State in a ratio of 60:40 for Plain area States and 90:10 for Himalayan and NE States. The Mission aims at development of 300 Rurban clusters, in five years. The objective is to give a boost to economic activities, skill development and infrastructure amenities in the regions. Development: Under the mission, the Central government in coordination with the district administration has taken measures to bring about multi-layered phased development of the rural gram panchayats and villages on the lines of urban cities with proper civic amenities keeping the soul of villages intact. What are Rurban areas? Why develop them? A 'Rurban cluster', would be a cluster of geographically contiguous villages with a population of about 25000 to 50000 in plain and coastal areas and with a population of 5000 to 15000 in desert, hilly or tribal areas. The larger outcomes envisaged under this Mission are: 194 CU IDOL SELF LEARNING MATERIAL (SLM)
Bridging the rural-urban divide-viz: economic, technological and those related to facilities and services. Stimulating local economic development with emphasis on reduction of poverty and unemployment in rural areas. Spreading development in the region. Attracting investment in rural areas. 2. Saansad Adarsh Gram Yojana (SAGY) Launched in 2014, it is a village development project under which each Member of Parliament will take the responsibility of developing physical and institutional infrastructure in three villages by 2019. The goal is to develop three Adarsh Grams or model villages by March 2019, of which one would be achieved by 2016. Thereafter, five such Adarsh Grams (one per year) will be selected and developed by 2024. The Project was launched on the occasion of birth anniversary of Lok Nayak Jai Prakash Narayan. Implementation: The scheme will be implemented through a village development plan that would be prepared for every identified gram panchayat with special focus on enabling every poor household to come out of poverty. The constituency fund, MPLADS, would be available to fill critical financing gaps. The planning process in each village will be a participatory exercise coordinated by the District Collector. The MP will play an active facilitating role in this exercise. Adoption and adaptation of technology and introduction of innovations are critical to this programme. This will include use of space application and remote sensing for planning, mobile based technology for monitoring, agriculture technology for increasing productivity etc. At the state level there will be an Empowered Committee headed by the Chief Secretary consisting of the relevant Departments and including experts, as required with at least two Civil Society representatives. The district Collector will be the nodal officer for implementing the SAGY. He will conduct a monthly review meeting with representatives of the participating Line Departments. The Members of Parliament concerned will chair the review meetings. 195 CU IDOL SELF LEARNING MATERIAL (SLM)
SAGY gives focus to community participation. Social mobilization of village community can trigger a chain of other development activities in the village. 3. Mahila Kisan Sashaktikaran Pariyojana (MKSP) Rural women form the most productive work force in the economy of majority of the developing nations including India. More than 80% of rural women are engaged in agriculture activities for their livelihoods. About 20 per cent of farm livelihoods are female headed due to widowhood, desertion, or male emigration. Agriculture support system in India strengthens the exclusion of women from their entitlements as agriculture workers and cultivators. Most of the women-headed households are not able to access extension services, farmers support institutions and production assets like seed, water, credit, subsidy etc. As agricultural workers, women are paid lower wage than men. The “Mahila Kisan Sashaktikaran Pariyojana” (MKSP), a sub component of the Deendayal Antodaya Yojana-NRLM (DAY-NRLM) seeks to improve the present status of women in Agriculture, and to enhance the opportunities available to empower her. In line with the provisions of National Policy for Farmers (NPF) (2007), the Department of Rural Development, Ministry of Rural Development is implementing a programme exclusively for women farmers namely, Mahila Kisan Sashaktikaran Pariyojana (MKSP). Funding support to the tune of up to 60% (90% for North Eastern States) for such projects is provided by the Government of India. About Mahila Kisan Sashaktikaran Pariyojana: It is a sub component of the Deendayal Antodaya Yojana-NRLM (DAY-NRLM). Objective: It seeks to improve the present status of women in Agriculture, and to enhance the opportunities available to empower her. MKSP recognizes the identity of “Mahila” as “Kisan” and strives to build the capacity of women in the domain of agro-ecologically sustainable practices. Significance: The focus of MKSP is on capacitating smallholders to adopt sustainable climate resilient agro-ecology and eventually create a pool of skilled community professionals. 4. Pradhan Mantri Gram Sadak Yojana-lll (PMGSY-III): 196 CU IDOL SELF LEARNING MATERIAL (SLM)
Phase III of Pradhan Mantri Gram Sadak Yojana (PMGSY) has been launched. Its objective is to strengthen smallholder agriculture through promotion of sustainable agriculture practices such as Community Managed Sustainable Agriculture (CMSA), Non Pesticide Management (NPM), Zero Budget Natural Farming (ZBNF), Pashu-Sakhi model for doorstep animal care services, Sustainable regeneration and harvesting of Non-Timber Forest Produce. Features of Pradhan Mantri Gram Sadak Yojana-lll (PMGSY-III): 1. Under the PMGSY-III Scheme, it is proposed to consolidate 1,25,000 Km road length in the States. 2. It involves consolidation of Through Routes and Major Rural Links connecting habitations to Gramin Agricultural Markets (GrAMs), Higher Secondary Schools and Hospitals. 3. The funds would be shared in the ratio of 60:40 between the Centre and State for all States except for 8 North Eastern states and Himachal Pradesh & Uttarakhand for which it is 90:10. Background: A total of 5,99,090 Km road length has been constructed under the scheme since inception till April, 2019 (inclusive of PMGSY-I, PMGSY-II and RCPLWEA Scheme.) PMGSY-I: PMGSY was launched in December, 2000 with an objective to provide single all-weather road connectivity to eligible unconnected habitation of designated population size (500+ in plain areas and 250+ in North-East, hill, tribal and desert areas as per Census, 2001) for overall socioeconomic development of the areas. Road Connectivity Project for Left Wing Extremism Area (RCPLWEA): Launched in the year 2016 as a separate vertical under PMGSY to provide all-weather road connectivity with necessary culverts and cross-drainage structures in 44 districts (35 are worst LWE affected districts and 09 are adjoining districts), which are critical from security and communication point of view. Under the Scheme, 5,066 Km road length has been sanctioned. 5. National Social Assistance Programme (NSAP) The NSAP is a Centrally Sponsored Scheme under the Ministry of Rural Development. It came into effect from 15th August,1995. It represents a significant step towards the fulfillment of the DPSP in Article 41 of the Constitution. In particular, Article 41 of the Constitution of India directs the State to provide public assistance to its citizens in case of 197 CU IDOL SELF LEARNING MATERIAL (SLM)
unemployment, old age, sickness and disablement and in other cases of undeserved want within the limit of its economic capacity and development. It aims to provide financial assistance to the elderly, widows and persons with disabilities in the form of social pensions. Presently NSAP comprises of five schemes, namely: Indira Gandhi National Old Age Pension Scheme (IGNOAPS). Indira Gandhi National Widow Pension Scheme (IGNWPS). Indira Gandhi National Disability Pension Scheme (IGNDPS). National Family Benefit Scheme NFBS). Annapurna Ministry of Jal Shakti The Centre has created a new Ministry called ‘Jal Shakti’. It has been created by merger of Ministries of Water Resources, River Development & Ganga Rejuvenation along with Drinking Water and Sanitation. Jal Jeevan Mission (JJM) Government of India has restructured and subsumed the National Rural Drinking Water Programme(NRDWP) into Jal Jeevan Mission (JJM) to provide Functional Household Tap Connection (FHTC) to every rural household i.e., Har Ghar Nal Se Jal (HGNSJ) by 2024. The following kinds of works/ schemes are proposed to be taken up under JJM: i.) In-village water supply (PWS) infrastructure for tap water connection to every household; ii.) Reliable drinking water source development/ augmentation of existing sources; iii.) Transfer of water (multi-village scheme; where quantity & quality issues are there in the local water sources); iv.) Technological intervention for treatment to make water potable (where water quality is an issue, but quantity is sufficient); v.) Retrofitting of completed and ongoing piped water supply schemes to provide FHTC and raise the service level; vi.) Grey water management; vii.) Capacity building of various stakeholders and support activities to facilitate the implementation. Service level delivery under JJM: The goal of JJM is to provide functional household tap connection to every household with service level at the rate of 55 litres per capita per day (lpcd). The institutional mechanism under JJM: i) National level: National Jal Jeevan Mission ii) State level: State Water and Sanitation Mission (SWSM) iii) District level: District Water and Sanitation Mission (DWSM) iv) Gram Panchayat level: Paani Samiti/ Village Water & Sanitation Committee (VWSC)/ User group Funding Pattern under JJM: The fund sharing pattern 198 CU IDOL SELF LEARNING MATERIAL (SLM)
between Centre and State is 90:10 for Himalayan (Uttarakhand, Himachal Pradesh) and North-Eastern States, 100:0 for UTs and 50:50 for rest of the States. There are people who would like to contribute and donate voluntarily for water supply in the rural areas. To facilitate this, ‘Rashtriya Jal Jeevan Kosh’ will mobilize and accept donations/ contributions received from various sources to fund JJM. v) Swachh Bharat Mission (Gramin) The Centre has approved the second phase of the Swachh Bharat Mission (Rural) with an estimated central and state budget of Rs 52,497 crore. The Open Defecation Free Plus (ODF Plus), which includes ODF sustainability and solid and liquid waste management (SLWM) will converge with MGNREGA, especially for grey water management, and will complement the newly launched Jal Jeevan Mission. The programme will also work towards ensuring that no one is left behind and everyone uses a toilet. The fund sharing pattern between the Centre and States will be 90:10 for North-Eastern States and Himalayan States and UT of J&K; 60:40 for other States; and 100:0 for other Union Territories, for all the components. About SBM- Rural: Launched on 2nd October, 2014 to accelerate the efforts to achieve universal sanitation coverage and to focus on sanitation. The aim is to achieve a clean and open defecation free (ODF) India. Implemented by the Ministry of Drinking Water and Sanitation. Objectives: It seeks to improve the levels of cleanliness in rural areas through Solid and Liquid Waste Management activities and making Gram Panchayats Open Defecation Free (ODF), clean and sanitised. Incentive as provided under the Mission for the construction of Individual Household Latrines (IHHL) shall be available for all Below Poverty Line (BPL) Households and Above Poverty Line (APL) households restricted to SCs/STs, small and marginal farmers, landless labourers with homestead, physically handicapped and women headed households. The Incentive amount provided under SBM(G) to Below Poverty Line (BPL) /identified APLs households shall be up to Rs.12,000 for construction of one unit of IHHL and provide for water availability, including for storing for hand-washing and cleaning of the toilet. Central Share of this Incentive for IHHLs shall be Rs.9,000/- (75%) from Swachh Bharat Mission (Gramin). The State share will be Rs.3,000/-(25%). • For North Eastern State, and Special category States, the Central share will be Rs. 10,800/- and the State share Rs.1,200/- (90%: 10%). 9.3 SUMMARY Following are some of the major investments and developments in the Indian rural sector. India's unemployment rate has declined to 4.8 per cent in February 2017 compared to 9.5 per cent in August 2016, as a result of the Government's increased focus towards 199 CU IDOL SELF LEARNING MATERIAL (SLM)
rural jobs and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme. The Ministry of Rural Development is expecting to achieve its annual targeted length of 48,812 kilometers of rural roads by March 31, 2017 under the Pradhan Mantri Gram Sadak Yojana (PMGSY), which has reached a completion stage of 67.53 per cent (32,963 kms) as on January 27, 2017. The National Bank for Agriculture and Rural Development (NABARD) plans to provide around 200,000 point-of-sale (PoS) machines in 100,000 villages and distribute RuPay cards to over 34 million farmers across India, to enable farmers to undertake cashless transactions. Magma Fincorp, a Kolkata-based non-banking finance company (NBFC) plans to expand its operations in South India, with specific focus on rural and semi-urban markets to help the company grow rapidly. Bharti Airtel is applying for a payments bank licence and has involved Kotak Mahindra Bank as a potential investor in the venture, in a bid to tap significant revenue opportunities from the Reserve Bank of India's financial inclusion initiative. Payments banks are meant to fan out into the rural, remote areas of the country, offering limited but critical services such as money transfers, loans and deposit collection. While banks have the knowhow, telecom companies have the network, making it an ideal match. Government Initiatives The Government of India has planned various initiatives to provide and improve the infrastructure in rural areas which can have a multiplier effect in increasing movements of goods, services and thereby improve earnings potential of rural areas subsequently improving consumption. The Government of India has approved the proposal to construct 10 million houses for the rural population, which will require an investment outlay of Rs 81,975 crore (US$ 12.7 billion) for the period from 2016-17 to 2018-19. The Government of India aims to provide tap water regularly to every household by 2030 in line with United Nations Sustainable Development Goals, requiring a funding of Rs 23,000 crore (US$ 3.57 billion) each year until the target is met. The Government has introduced various reforms in the Union Budget 2017-18 to uplift the rural markets. Some of the key highlights of the Budget are: Rs 187,223 crore (US$ 28.08 billion) has been allocated towards rural, agriculture and allied sectors. The Allocation for Pradhan Mantri Aawas Yojana-Gramin has been increased from Rs 15,000 crore (US$ 2.25 billion) to Rs 23,000 crore (US$ 3.45 billion) in the year 200 CU IDOL SELF LEARNING MATERIAL (SLM)
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