- Answer the following as directed: –
- There is need to understand the global marketing environment to develop appropriate strategies for exploring rural market. [True/False]
- Mention one of the characteristics of rural society?
Ans: A small population size.
- Write the full forms of the following: –
FMCG – Fast Moving Consumer Goods.
FSSAI – Food Safety and Standards Authority of India.
- Agriculture is the main occupation in rural economy.
- State one of the functions of personal selling?
Ans: Educating the prospective customers.
- Is the last stage in a channel of distribution.
- Rural marketing promotion can be more effective through –
(I) Melas (II) Village fairs (III) Door to door campaigns (IV) All of the above (V) None of the above.
Ans: (IV) All of the above.
- State short notes on any four of the following: –
- Rural credit institution
Rural economy growth depends on the funds from the internal to understand high rise productivity in non agriculture and agriculture areas. Today rural banking includes a set of various financial institutions, particularly regional rural banks, co-operative, commercial banks, self help group and land development banks. They assign sufficient credit at cheaper interest rates.
The major social credit institutions are:-
- Co-operative credit societies
The co-operative societies are supposed to be the cheapest and most important source of rural credit. When co-operative were first set up it was thought that they would be able to meet almost the entire credit needs of numerous small and medium farmer.
- Land development banks
Land development banks mainly provides long term loans to farmer against the mortgage of their lands at low rates of interest over a period of 15 to 20 years. The land development bank was formally known as land mortgage banks.
- Commercial banks
Commercial banks now provide both direct and indirect finance to agriculture. Direct finance is provided for short and medium terms to enable farmers carry out agricultural operations smoothly indirect finance is provided in the form of advance for the purchase of inputs like seeds and fertilisers.
- Regional rural banks
In 1975, the government set up a network of regional rural banks to look in to the special needs of small and marginal farmers, landless workers, rural artisans and the rural poor in general.
- The government
The government has also provided short term and long term loans to farmers in times of emergency such as flood or famine such loans are offered at a concessional rate of interest (6%) and the mode of repayment is also very convenient.
- Future of Indian rural market
Rural marketing association of India (RMAI) confirms that rural income levels are on rice. Income from non-farm sector is likely to touch 66% of net rural income by 2020. Market size would these, nearly double. Average rural spending would grow 6 times from current levels in 20 years.
India’s growth level is highly driven by the government of the rural people. Players in various industries such as retails, fast moving consumer goods (FMCG), consumer durables, automobile are looking towards the untapped potential hinterland possess. Rural Indian households are spending more on consumer goods like durables; beverages etc. there are many opportunities waiting to be exploited in the area of rural marketing.
There is an increasing convergence between urban and rural consumers especially the young consumers who have almost some respirations as that of a young urban consumer. Thus the marketers can target ascertain section of rural consumers in the same manner as they are targeting in urban area. The various infrastructural problem have been tackled to a great extent work is in progress for the better connectivity by roads, more than 90% of villages are electrified. Rural telephone density has gone up to by 300% in last 10 years. Rural literacy rate has also improved from 36% to 59%. The per captia income of the top 20% – 30% of rural segment is not much different from urban middle class. This means that the affordability of the segment of rural consumers will be almost equal to that of the urban middleclass. Thus marketers can tap this segment as well with the product he is targeting the urban middleclass.
- Scope of rural marketing: – 2(a) 2017
- Rural product planning
Product planning is the ongoing process of identifying and articulating market requirement that define a product’s feature set. Product planning serves as the basis for decision about price, distribution and promotion. Product planning is the process of creating a product idea and following through or it until the product is introduced to the market. Additionally a small company must have an exit strategy for its product throughout its life using various marketing strategies including product extensions of improvements, increased distribution, price changes and promotion.
- Dynamic in rural marketing: – 2017 2(d)
- a) Is rural marketing different from urban marketing? Explain the significance of rural marketing.
Ans: Yes, rural marketing is different from urban marketing.
An area located in the out start.
A settlement where the population is very high and has the features of a built environment.
It includes villages.
It includes cities and towns.
It is simple and relaxed.
It is fast and complicated.
Direct contact with nature.
Greater isolation from nature.
Agriculture and live stock.
Non agriculture work i.e. trade commerce or provision of services.
Developed randomly, based on availability of natural vegetation and fauna in the area.
Planned settlement exists in urban areas that are developed according to the process of urbanisation and industrialisation.
No such division.
Always present at the time of job settlement.
Significance 2016 3(b)
b) Discuss briefly the evolution and development of rural marketing in India.
Ans: 2017 3(b)
- a) What do you mean by rural marketing environment? Explain its dimensions.
Ans: 2019 4(a)
b) Discuss the impact of geographical and technological factors rural marketing operation.
Ans: The impact of geographical and technological factors on rural marketing operations are: –
The rural population forms a major chunk of the Indian population from time immemorial and this trend is completed to continue in future as well. About 70% of Indian resides in rural areas. In other words, for every consumer in an urban area, there are these of there in rural area.
- Occupation pattern
The main occupation for a vast majority of rural population is agriculture and allied activities. It is pertinent to consider is workers among rural population to study the occupation pattern.
- Income generation
The occupation pattern dictates the pattern of income generation also. With agriculture being the major occupation, 75% of income generated in rural areas is from agriculture and agriculture related activities.
- Location of rural population
One of the deterrents for the marketers to exploit the rural market potential has been the vastness of area to be covered and the location of the population. It is much easier to cater to the needs of human population because of its concentration in relatively smaller geographically areas.
- Size and type of region
There are countries in Asia such as India, where people speak different languages in different states. This is the primary reason for successful Western fast food outlets to devise new strategies to target local flavours and costs to flourish in the Indian market. A strategy designed around geography will help these outlets compete with local players and grow in a market as diverse as India.
Climate is a big one for brands to like in to account. It’s such a key aspect of geographical segmentation as products and services that are relevant to each climate are likely to be just so different.
Cultural differences and preferences have a huge role to play in geographic segmentation. This is mostly because culture in itself is not simple defined by the country a person lives in. Culture can be forces or influence by things like religion, communication, environment and agreed social behaviour and norms.
- a) What is market segmentation? Discuss the significance of market segmentation in developing a rural marketing strategy.
Ans: 5(a) 2016 + 5(a) 2017
b) What do you mean by rural market segmentation? Explain the pre – requisites for effective rural market segmentation.
Ans: 2016 5(a)
- a) What is meant by rural pricing strategy? Explain its significance in rural marketing operations.
Ans: Price is the exchange value of te product. It is the amount of money needed to acquire a product/service. Pricing is the most important strategy in rural marketing. It is the value that is put to a product or service and is the result of a complex set of calculations, research and understanding and risk taking ability. A pricing strategy takes in to account segments, ability to pay, market condition, competition actions, and trade margins and input cost, amongst others. It is targeted at the defined customers and against competitors. It is a way of finding a competitive price of a product or a service.
This strategy is combined with the other marketing pricing strategies that are 4P strategy economic patterns, competitions, market demand and finally product characteristics. This strategy comprises of one of the most significant ingredients of the mix of marketing as it is focused on generating and increasing the revenue for an organisation.
The significance of rural marketing strategy in rural marketing operations are: –
b) Write critical notes on the distribution channels and logistics in rural market.
Ans: 2015 6(b)