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Introduction to Rural Marketing

Introduction to Rural Marketing . Session – I Xavier Institute of Management, Bhubaneswar . Why should we do this course? . Agriculture’s share in GDP is going down, but, India still lives in her villages Urban markets are crowded and saturated

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Introduction to Rural Marketing

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  1. Introduction to Rural Marketing Session – I Xavier Institute of Management, Bhubaneswar

  2. Why should we do this course? • Agriculture’s share in GDP is going down, but, India still lives in her villages • Urban markets are crowded and saturated • The understanding of “rural” is diffused and sometimes confusing • Is “rural marketing” different from “urban marketing” ?

  3. Session Coverage • Rural India – Some definitional issues • Phases/ stages in rural marketing • Scope of rural marketing • How is rural India changing? • Schools of thought- Approaches to Rural Markets • Strategic Issues & Directions in rural marketing

  4. Defining Rural India

  5. Cont’d Source: The Rural Marketing Book- Text & Practice, Kashyap. P and Raut. S ( 2007)

  6. Defining Rural Marketing

  7. Phases in Rural Marketing

  8. Cont’d

  9. Scope of Rural Marketing • Keenly debated topic • Definitions based on organisational/ institutional vision, mission & goals • Need for a comprehensive and modular understanding • Rural Marketing is a “ work in progress” • Multi – disciplinary approach is necessary for sharper understanding

  10. Domain of Rural Marketing To Rural Urban Rural From Urban Source: M. Jha, Rural Marketing- Some Conceptual Issues, EPW, 1988

  11. Scope of Rural Marketing

  12. Changes in Rural India • Diverse change levers in rural India • The “ pull of the cities & towns” – migration and its side effects • Effect of government programmes • Civil society interventions • Natural & manmade disasters • Slow but sure change

  13. Transitions In Rural India • Food Grain Crops • On land activities • Farm Activities • Non –food, cash crops • Livestock & fisheries • Manufacturing & • services

  14. Rural Employment Patterns( Male) Source: NSSO data, Mckinsey Global Institute Study, 2004-05

  15. Rural India – Population Trends

  16. Cont’d • The joint family system is being replaced by the nuclear family system • The occupational pattern shows a predominance of cultivators and wage earners • Cultivators( 40.86 %) and Wage Earners( 35.28 %) according to NCAER studies (2002)

  17. Rural Settlement & Habitation Trends • Key findings from 2001 census • Population density 253/ sq kilometer and total number of villages is 638, 588 • Villages having less than 500 population are falling • Villages having 2000 + population most prosperous • What are the implications of these trends?

  18. Cont’d • Size of villages/ habitations are changing • Role & influence of towns is changing • Social interaction is a mix of rural and urban • Let’s look at some key trends in detail

  19. Rural Income Trends Source: National Council for Applied Economic Research, 2000

  20. Rural Marketing- Schools of Thought • Determinist School • Activist School • What is the right approach? • Dependent on level of market development, stage in the PLC and access to resources • Amul & ITC prominent examples • No water-tight compartmentalisation

  21. Strategic Issues & Directions in Rural Marketing • Evolutionary Vs revolutionary changes in rural markets • Role of state & market forces • ICT based interventions • Partnership innovations • Developmental role of rural marketing • Scalability & replication of rural marketing programmes

  22. ICT in Rural Markets

  23. Close of Session Thank You

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