Nature Nature & characteristics of the rural market PDF

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Nature & characteristics of the rural market:-

 Large & scattered market:-India’s rural market is large & scattered in the sense that it consists of approximately 75 cr. rural consumers who live in approximately 6,38,365 villages spread over 32lakh square kilometer area  Heterogeneous market:-The rural market is not a homogeneous one. As many as 20,000 ethnic groups are present in rural India & this poses a formidable challenge to the marketer. There are 24 villages & 1642 dialects & the dialects (boli) varies every 100 km. or so, making it extremely difficult to develop a uniform promotional message. Rural India is thus a mosaic of markets & this heterogeneity is the hallmark of the rural market

 Standard of living: - Unreliability factor in case of rural income makes the rural customers extremely conscious in their purchase behaviour as they are not confident about their future earning as over 70% of the rural population is employed in small scale. Agriculture & the related occupations & the propensity to save for the future exigencies makes them spend less to improve their standard of living even when they have good income. Besides this low literacy, social backwardness, low saving, traditional attitude etc. also have contributed to lower standard of living.  Infrastructural facilities: - The infrastructural facilities like roads, warehouses, communication systems & financial facilities are inadequate in rural areas. Roads do not connect nearly 50% villages in the country. Promotion & physical distribution thus becomes very difficult in the rural terrain because of inadequate infrastructural facilities over 50% rural households have access to electricity as main source of lighting but 46% still use kerosene for lighting

According to the NCAER Indian Market Demographics Report 1998, the consuming class households (annual income between Rs.45,001 & Rs.2,15,000) in rural India equals the number in urban India .

Rural India is generating more than half of the national income. India’s 58%disposable income comes from its rural parts where 41% of the country’s middle class homes are located. The 55.6% contribution to the national income by 74.6 cr. rural population is higher than urban India’s contribution of 44.6% by 25.4 cr. people. But the per capita income turns out to be significantly lower that in rural areas because of large population base.

The importance of rural market can be understood from the fact that if India’s rural income grows by 1% there will be a corresponding increase of about 10,000 cr. in the villager’s buying power....