Sharadchandra Pawar Institute Of Management

RURAL AND URBAN MARKETING COMPARETIVE ANALYSIS

By TAMIZHAZHAGAN

Definition Of Markets

Rural MarketingRural marketing involves the process of developing, pricing, promoting, distributing rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives.

Urban MarketingUrban is fully integrated firm which present comprehensive level of services, offering pre- development guiding , branding , marketing and the most effective sales agents in the area.

Difference Between Rural And Urban

Population Standards of living Wide economic gap New product awareness Education Electrified Channel of communication Channel of distribution

The Rural And Urban Consumer A Detailed Profile

Size of Rural and urban Consumer Group

Rural population is about 73% and urban population is 27% of the

total population of India

A Scattered market the comparison below shows the same

* Urban Population is spread over 3,200 cities
* Rural population is spread across 5,70,000 villages

MARKET PROCESS

URBAN

RURAL

URBAN

URBAN

RURAL

URBAN

RURAL

RURAL

Reasons For Selecting Market

Rural MarketingSize of the market

Largely Untapped
Income on the rise/disposable income Income from other than agriculture Income flow from urban /abroad Great success stories of some famous companiesAsian Paints Dabur Videocon Colgate 60% 40% 40% 50%

Urban MarketLarge number of customer Awareness about the product

Effective distribution channel

Rise to competition Source of new ideas.

Great success stories of some famous companiesFuture group DMart 80% 65%

Globus

59%

4 Ps Of Market
Product Place

Urban + Rural
Price Promotion

Marketing Strategies
Rural and urban marketing

Marketing strategies

Distribution strategies

Promotion strategies

Personal selling

Direct selling

Feeder town

Near market

Familiar shows

All types of media

Urban Vs. Rural Status

TOTAL PPLTN. (MLN) RURAL 318.74 % PPLTN. GROWTH RATE % 1.79 SEX RATION LITERACY

916.44

55.61

URBAN

248.17

1.48

927.78

72.58

Occupation of Head of Household (IN %)

Housewife Cultivator Wage earner Salary earner Professional Artisan Petty shopkeeper Businessman Others Total

Urban Rural All 0.84 1.01 0.96 3.45 40.86 29.99 20.93 35.28 31.22 40.72 11.28 19.84 3.59 0.73 1.56 6.90 3.41 4.42 16.05 4.97 8.19 3.68 0.46 1.40 3.85 1.98 2.52 100.00 1 00.00 100.00 (Source: NCAER, 2003)

Rural Vs Urban Marketing

No Aspects philosophy Urban Marketing & Social concept high rural Development & Relationship marketing low

1.
Market Demand Competition Literacy Income

2. 3. 4. 5.

organized sector High High

Unorganized sector Low Low

6. 7. 8.

Needs Adoption Product a) Awareness b)Concept c)Quality

High level Faster High Known Good Yes Medium-high

Low level Slow Low Unknown Moderate Very much Medium-low

9.

Price a)Sensitive b)level desired

10. 11.

Transportation Advertising

Good Print, audio visual, outdoors. etc Door-to door, frequently

Average TV, Radio, print media in many languages Occasionally

12.

Personal selling

Income Distribution (Million population)

2001-02
400 312 300 200 100 0 Low Rural Low er middle Middle high Urban 90 41 288

2009-10
400 300
153

352

305

272

130

200 100 0

170 79 17

2001Low 02 Low er middle

Rural

Middle high Urban

Distribution of Monthly Per Capita expenditure

Urban

Rural

Food 51.5 Consumer goods 19.6 Fuel, clothing & foot wear 13.9 Medical 5.5 Education 5.1 Rent & taxes 4.5

63.7 13.1 14.8 5.5 2.5 0.4

Source: Household Consumer Expenditure Survey, JanuaryJune 2004

Analysis Of Markets
The annual consumer durable market for products like colour t.vs,washing machines, refrigerators and air conditioners is growing at 7-10 %. While the rural market is zooming at 25 % .

HAVE A LOOK.. F.m.c.g Rs.65000 crores (53 % share in total revenues) Rs.5000 cr.for agri inputs.

50 % of Indias national income is generated in rural India. HLL,Colgate Palmolive ,Toyato 50 % revenues coming from rural and 50% from urban area. Hero Honda- 40 % from rural and 60% urban area. Kinetic motors 30 % from rural and remaining from urban area. Godrej- 30% from rural70% from urban sector.

Challenges
Rural Marketing Traditional Life. Transportation. Literacy. Promotion and Marketing Communication. Urban marketing urban market flooded with low demand.

High degree of competition.

large expenses.

Conclusion
Thus, looking at the challenges and the opportunities, of both the markets, it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage. A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for, so

they can successfully impress on the 230 million rural consumers

spread over approximately six hundred thousand villages in rural India. So we can say that RURAL MARKETING IS A REAL MARKETING