Emerging Trends in Marketing

Rural Marketing:

Rural marketing refers to the activities

undertaken by the marketers to encourage
people living in rural areas, to convert their
purchasing power into an effective demand
for the goods and services and making this
available in the rural areas, with the
intention to improve their standard of living
and achieving the company’s objective.
Features:
Large and scattered population:
More than 70% of India’s population lives in rural areas. The rate
of increase in rural population is also greater than that of urban
population. The rural population is scattered in over lakhs of
villages. Nearly, three-fourth (3/4 th) of the country’s consumers
are in rural markets.
Higher purchasing capacity :
Purchasing power of the rural people is on a rise. Marketers have
realized the potential of rural markets and are expanding their
operations in rural India.
Heterogeneous:
The rural market in India is not only scattered, but is also diverse
and heterogeneous. Rural consumers are diverse in terms of
religion, social, culture and in language factors.
Low standard of living :
The standard of living of rural areas is low and rural consumers have
diverse socio-economic backwardness. A consumer in a village area
has a low standard of living because of low literacy, low per Capita
income and low savings.
 Development of Infrastructure :
There is development of infrastructure facilities such as construction of
roads and transportation, communication network, rural
electrification and public service projects in rural India, which has
increased the scope of rural marketing.
Low exposure :
There is also exposure to market in rural areas. Low product exposure,
low exposure to branded products, limited sources of information,
less retail outlets, low market reach etc… create a big challenge to
marketers to stimulate the rural consumers.
Buying in less quantity:
Generally, rural consumers buy loose i.e in small quantities on account of
their low percapita income and limited storing capacity.
 Traditional bound:
Rural consumers are tradition bound, region, culture and tradition
influences their consumption habits. They do not prefer changes. 
Marketing Mix:
The urban products cannot be dumped on rural population. Separate set of
products need to be designed for rural consumers to suit the rural
demands. The marketing mix elements are to be adjusted according to the
requirements of the rural consumers.
 Seasonal and irregular:
The rural market in India is seasonal and irregular. The predominance of
agriculture in the income pattern of the rural people and the relatively
greater influence of marriages and festivals on the purchase pattern of the
villagers are the main reasons for seasonal character of the rural market.
Causes for the changes in the volume and patterns of rural
consumption:
Rural communication :
Internet and mobile have played the most important role for the
growth of rural markets. Broad band services are easily available in
rural area. These facilities have opened the doors for companies to
use latest technologies for brand promotion.
Socio economic charges :
The change in lifestyle and economic status is one of the most
important factors that have driven the rural sector towards
improvement. The source of information and awareness of the rural
people have changed their habits, tastes and preferences.
Literacy level :
This is the major factor for the improvements of rural sector i.e.
increase in literacy level of the rural people. There is huge
improvement in the sources of information and education.
Increase in expectations:
With the media reach and high income level, the awareness and
preference of the rural people have been developed. Their demand
towards quality products with better pricing has increased. Instead of
being price conscious the rural people are also expecting good
quality products and are aware of branded products.
Increase in income :
The growth in rural markets has reduced the complexity of its
functions. With the increase in income level of rural people, their
purchasing power and economic status of living have also developed.
Infrastructure facilities:
Infrastructure and communication play a vital role in bringing the
improvement of rural sector. Well developed roads, hi-tech media
and electricity lead to improvement of the entire marketing activities.
Raising rural prosperity :
The agricultural development programs of the govt. have helped to increase income in the
agricultural sector. This has created greater purchasing power in rural markets. Rural
markets are developing not only from agricultural section but also from other sections.
Change in rural consumer behavior :
With the economic development of rural areas, disposable income of rural people has
gone up. Because of internet and TV, people have started gaining knowledge about the
different trends that are available in urban markets. They have started realizing the
importance of branded products.
Favourable Government Policies :
The government is being making efforts towards rural development. The massive
investment in the rural India has generated new employment, new income and new
purchasing power. Various measures like tax exemption in rural areas, subsidy,
concessions, incentives, literacy assistance etc has brought in rapid development in
rural markets.
 Remittance from family members working in urban areas :
At least one of the family members from almost every rural family works in cities they
remit their salaries lack home to their family. This has contributed to growing rural
income and purchasing power of rural people. Also rural people are in growing
interaction with urban communities.