Characteristics of Rural market
Rural marketing is a two-way process that deals with marketing the products produced in rural and marketing the products required for rural.
Marketing of products produced from rural includes vegetables, fruits, food grains, and all agricultural produce. It also includes handmade products made from wood and the like raw materials. Poultry farms and goat farms are also produced in rural.
Rural word is generally understood as the group of people who stay with traditional culture in the undeveloped or underdeveloped areas and are not ready to accept the change as urban people accept. But this meaning may vary with country and economy.
The rural market was very different from 1950 to 1970. The post-independence period was full of struggles for development along with improvement in the living standard. Many programs of the government takes initiative in making development and improving the living standard of rural people. Several programs are implemented in each five-year plan for rural development.
Rural market
The market deals with making available all the goods which are produced for rural and from the rural.
Following are some characteristics of the Rural Market(special reference to India)
Changing demand and consumption pattern
Demand and need of the people during the post-independence(1950-1960) period was not as developed as now due to many factors. These factors are as follows
- Unavailability of products and services
- Fashion and culture people follow
- Education of people that makes them aware about all.
- Media Touch
Example 01: Most rural consumers use smartphones and data services
Example 02: Due to awareness of education, many students from rural are taking education across the globe such as medical education in Kyrgyzstan, Ukraine, etc.
Large scattered market
The rural market spread all over the country at all ends of the country. Every district of each state consists of 50 to 150 villages in which the maximum number of people live. Every region has different lifestyles and languages. Such people expect the offerings(products and services) as per their lifestyle and consumption pattern. The market which makes available such products and services is not capable of facing numerous challenges.
Example 1: white cloth has full demand in south India
Example 2: South Indian people consume more rice than any other state in India
Example 3: branded products can not be sold more in rural markets than that an urban market
Major source of income is farming
Rural people who live in villages have farming as the major source of income. Gradually some other sources are created but they can not generate revenue as much as farming can. Few farmers could make successful farming a bigger source of income generation by utilizing advanced farming methods.
Example 01: except few retailers(Kirana stores) no other small businesses are found in a rural area other than farming.
Buying behavior of rural consumers that influences the rural market
The rural market influenced by rural consumer behavior which determines the expansion and success of the rural market. Rural marketing practices can motivate and aware rural consumers so that they can attract them towards buying different products and services.
Example 01: Rural consumers prefer affordable products. Rural consumers are price sensitive and not aware of the relation between quality and price.
Traditional outlook
As rural consumer prefers with traditional lifestyle and resists change. That is why the rural market can not make available the variety of products and services the urban market. Most rural consumers are not aware of some products and services.
In the case of youth from rural, picture is different. Rural youth has different characteristics than rural people. educated rural youth and that is aware of all the products and services that the urban youth are.
Diverse socio-economic background
As the maximum part of the Indian population lives in Rural. Every region has different numbers regarding literacy, income, occupation, etc. due to diverse socio-economic factors the rural people can not have justified policies to improve their living standards.
The major income source is farming
The majority of rural is a farmers. No other resources are available to generate income as much as it can possible through farming. maximum goods are produced from farming. goods such as vegetables, foodgrains, fruits, etc. farming is the only source to generate these goods.
Response to product price, promotion
Price and promotion play vital roles in expanding the rural market. The majority of Rural consumers always prefer buying products with less prices. The second factor is promotion. Promotion increases the awareness about different products and services due to which the rural consumer attracted towards buying different products and services.
Small change or offers in the price of products influence a lot of rural consumer behavior which in turn impact the rural market.
Example 01: While purchasing the vehicles, discount, offers and financial assistance motivates rural people to buy the products.
Example 02: Due to Banking services and Govt. subsidies, the rural market make available number of products(vehicles) for rural consumers.
Heterogeneity
As a diversified population, their lifestyle, consumption pattern, and consumer behavior are different. It is very difficult to classify the rural consumer in a specific segment for which a specific strategy works. Rural consumer behavior is not based on their purchasing power. It is influenced by their mindset.
Educated rural consumers migrating toward urban. No one in the rural people who are interested to make their child a farmer. Everyone is interested to transform them into urban or metropolitan.
Example 01: recovery of bank loans is one of the major challenges to every financial institution which provides loans to rural people.
Example 02: low media touch due to which the rural people are not aware of banking and insurance services.
Infrastructure
The rural market is largely affected by infrastructural facilities available. Role of Govt. plays important role in making available all the infrastructural facilities required to execute marketing activities required for the rural market. Rural market expansion is possible only when the there is good infrastructure.
Example 01: most of the villages are still not connected with a good road which enables them to transport the goods easily.
Example 02: still the rural people facing the problem of load shading.