Prospects_and_problems_of_indian_rural_m.pdf

ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

PROSPECTS AND PROBLEMS OF INDIAN RURAL MARKETS V V DEVI PRASAD KOTNI* *Assistant Professor, Department of Management Studies, GVP College for Degree and PG Courses, Rushikonda, Endada, Visakhapatnam, Andhra Pradesh, India.

ABSTRACT In recent years, rural markets have acquired significance, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. Rural Markets are defined as those segments of overall market of any economy, which are distinct from the other types of markets like stock market, commodity markets or Labor economics. Typically, a rural market will represent a community in a rural area with a population of 2500 to 30000. On account of green revolution, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing has emerged to satisfy the needs of rural consumers. Hence, it is proposed to undertake this study to find out various ways to tap the potential rural markets. The main aim of this study is to observe the potentiality of Indian Rural Markets and finding out various problems are being faced by rural markets. This paper attempts to provide a brief literature on rural marketing and finally offers policy recommendations for better performance of rural markets by adopting SWOT analysis matrix to rural markets. KEYWORDS: Rural Markets, Rural Marketing, Market Potential, Marketing Myopia. ___________________________________________________________________________

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The concept of Rural Marketing in India Economy has always played an influential role in the lives of people. In India, leaving out a few metropolitan cities, all the districts and industrial townships are connected with rural markets. The rural market in India is not a separate entity in itself and it is highly influenced by the sociological and behavioral factors operating in the country. The rural population in India accounts for around 627 million, which is exactly 74.3 percent of the total population. Rural Markets are defined as those segments of overall market of any economy, which are distinct from the other types of markets like stock market, commodity markets or Labor economics. Rural Markets constitute an important segment of overall economy, for example, in the USA, out of about 3000 countries, around 2000 counties are rural, that is, non-urbanized, with population of 55 million. Typically, a rural market will represent a community in a rural area with a population of 2500 to 30000. The concept of rural marketing in India is often been found to form ambiguity in the minds of people who think rural marketing is all about agricultural marketing. However, rural marketing determines the carrying out of business activities bringing in the flow of goods from urban sectors to the rural regions of the country as well as the marketing of various products manufactured by the non-agricultural workers from rural to urban areas. To be precise, Rural Marketing in India Economy covers two broad sections,

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INTRODUCTION

ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

namely - Selling of agricultural items in the urban areas and Selling of manufactured products in the rural regions. The Registrars of Companies in different states chiefly manage, the rural market in India brings in bigger revenues in the country, as the rural regions comprise of the maximum consumers in this country. The rural market in Indian economy generates almost more than half of the country's income. Rural marketing in Indian economy can be classified under two broad categories. These are: The market for consumer goods that comprise of both durable and non-durable goods and the market for agricultural inputs that include fertilizers, pesticides, seeds, and so on. NEED FOR THE STUDY Rural Markets are defined as those segments of overall market of any economy, which are distinct from the other types of markets like stock market, commodity markets or Labor economics. The so-called urban markets are crowded and saturated and the share of agriculture in GDP is going down but India still lives in her villages. Such a potential market was being ignored by corporate sector and small and medium industries. Hence it is proposed to study the potentiality and problems of rural market with a special reference to Indian Rural Market. OBJECTIVES OF THE STUDY Rural markets, as part of any economy, have untapped potential. There are several difficulties confronting the effort to fully explore rural markets. The concept of rural markets in India, as also in several other countries, like China, is still in evolving shape, and the sector poses a variety of challenges, including understanding the dynamics of the rural markets and strategies to supply and satisfy the rural consumers. The objectives of this study include observing the dynamics of Indian Rural Markets over a period of time, reviewing the literature of rural markets and rural marketing, outlining the potentiality of rural markets with respective to different segments like FMCG, Automobiles, Retail etc. The study also concentrates on the problems faced by rural markets and finally offering suggestions to overcome the problems and tapping the potentiality of the rural markets at maximum level.

REVIEW OF LITERATURE DEFINING RURAL MARKET -

NSSO (Census) defined rural market as a Market with population density less than 400 sq km., 75% of male working population is engaged in agriculture and no Muncipal Corporation / board.

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Planning Commission of India defined rural market as towns up to 15,000 populations are considered as rural market.

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In order to study the various problems and prospects of rural markets, to find out the facts, to analyse the findings and to offer suggestions – a tool, namely, SWOT Analysis Matrix has been adopted. The inputs for this matrix have been collected from past studies of rural marketing, reports published by various institutions etc.

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METHODOLOGY OF THE STUDY

ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

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NABARD defined as all locations with a population up to 10,000 considered as rural area.

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The Consumer electronics giant LG Electronics defined as all places other than seven metro cities of India.

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The Sahara group defined as commercial establishments located in areas serving less than 1000 population are rural markets.

(Source: The Rural Marketing Book – Text & Practice, Kashyap. P and Ruat. S (2007)) DEFINING RURAL MARKETING -

National Commission on Agriculture defined Rural Marketing as ―decisions to produce salable commodities involving all aspects of the market system or structure, both functional and institutional, based on technical and economic considerations and includes the pre and post harvest operations‖.

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Several Rural NGOs defined rural marketing as Marketing products produced in rural area to urban areas. Or Marketing Products produced in rural areas in rural markets.

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Several Corporates defined Rural marketing as ―function that manages all activities involved in assessing, stimulating and converting the purchase power of rural consumers into effective demand for specific products and services to create satisfaction and a better standard of living for achieving organisational goals.

PHASES IN RURAL MARKETING

Marketing Rural Products in Rural Areas and Urban Areas.

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Agriculture inputs in rural areas.

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Agriculture Marketing.

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Farming methods were primitive and mechanisation was low.

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Markets unorganised.

PHASE TWO (1960S TO 1990S) -

Green Revolution.

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Companies like Mahindra & Mahindra, Sri Ram Fertilisers and IFFCO Emerge.

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Rural Products were also marketed through agencies like KVIC.

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PHASE ONE (PRE 1960’S)

ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

PHASE THREE (1990S AND PRESENT) -

Demand for Consumables and durables rise.

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Companies find urban markets declining.

CHARACTERISTICS OF RURAL MARKETING Some of the important features or characteristics of Rural Marketing in India Economy are being listed below: -

With the initiation of various rural development programmes there have been an upsurge of employment opportunities for the rural poor. One of the biggest cause behind the steady growth of rural market is that it is not exploited and also yet to be explored.

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The rural market in India is vast and scattered and offers a plethora of opportunities in comparison to the urban sector. It covers the maximum population and regions and thereby, the maximum number of consumers.

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The social status of the rural regions is precarious as the income level and literacy is extremely low along with the range of traditional values and superstitious beliefs that have always been a major impediment in the progression of this sector.

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The steps taken by the Government of India to initiate proper irrigation, infrastructural developments, prevention of flood, grants for fertilizers, and various schemes to cut down the poverty line have improved the condition of the rural masses.

About 285 million live in urban India whereas 742 million reside in rural areas, constituting 72% of India's population resides in its 6, 27,000 villages.

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The number of middle income and high income households in rural Indian is expected to grow from 46 million to 59 million.

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Size of rural market is estimated to be 42 million households and rural market has been growing at five times the pace of the urban market.

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More government rural development initiates.

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Low literacy rate

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Increasing agricultural productivity leading to growth of rural disposable income.

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Lowering of difference between taste of urban and rural customers.

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DEMOGRAPHIC DETAILS OF INDIAN RURAL MARKETS

ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

SIGNIFICANCE OF RURAL MARKETING Rural market is getting an importance because of the saturation of the urban market. As due to the competition in the urban market, the market is more or so saturated as most of the capacity of the purchasers has been targeted by the marketers. So the marketers are looking for extending their product categories to an unexplored market i.e. the rural market. This has also led to the CSR activities being done by the corporate to help the poor people attain some wealth to spend on their product categories. Here we can think of HLL (now, HUL) initiatives in the rural India. One of such project is the Project Shakti, which is not only helping their company attain some revenue but also helping the poor women of the village to attain some money which is surely going to increase their purchasing power. Also this will increase their brand loyalty as well as recognition in that area. Similarly we can think of the ITC E-Chaupal, which is helping the poor farmers get all the information about the weather as well as the market price of the food grains they are producing. In other view these activities are also helping the companies increase their brand value. So as it is given above the significance of the rural market has increased due to the saturation of the urban market as well as in such conditions the company which will lead the way will be benefited as shown by the success of HUL and ITC initiatives.

The Indian rural market has a huge demand base and offers great opportunities to marketers. Two-thirds of Indian consumers live in rural areas and almost half of the national income is generated here. The reasons for heading into the rural areas are fairly clear. The urban consumer durable market for products like colour TVs, washing machines, refrigerators and air conditioners is growing annually at between 7 per cent and 10 per cent. The rural market is zooming ahead at around 25 per cent annually. "The rural market is growing faster than urban India now," says Venugopal Dhoot, chairman of the Rs 989 crore (Rs billion) Videocon Appliances. "The urban market is a replacement and up gradation market today," adds Samsung's director, marketing, Ravinder Zutshi.

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Rural India buys small packs, as they are perceived as value for money. There is brand stickiness, where a consumer buys a brand out of habit and not really by choice. Brands rarely fight for market share; they just have to be visible in the right place. Even expensive brands, such as Close-Up, Marie biscuits and Clinic shampoo are doing well because of deep distribution, many brands are doing well without much advertising support — Ghadi, a big detergent brand in North India, is an example.

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In recent years, rural markets have acquired significance in countries like China and India, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. On account of the Green Revolution in India, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing has taken shape. Sometimes, rural marketing is confused with agricultural marketing – the later denotes marketing of produce of the rural areas to the urban consumers or industrial consumers, whereas rural marketing involves delivering manufactured or processed inputs or services to rural producers or consumers. Also, when we consider the scenario of India and China, there is a picture that comes out, huge market for the developed products as well as the labor support. This has led to the change in the mindset of the marketers to move to these parts of the world.

ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

REASONS FOR IMPROVEMENT OF BUSINESS IN RURAL AREA -

Socio-economic changes (lifestyle, habits and tastes, economic status)

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Literacy level (25% before independence – more than 65% in 2001)

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Infrastructure facilities (roads, electricity, media)

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Increase in income

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Increase in expectations

PROSPECTS OF RURAL MARKETS The Indian growth story is now spreading itself to India's hinterlands. The rural consumer market, which grew 25 per cent in 2008, is expected to reach US$ 425 billion in 2010-11 with 720-790 million customers, according to a white paper prepared by CIITechnopak, in November 2009. The figures are expected to double the 2004-05 market size of US$ 220 billion. The Union Budget for 2010-11 has hiked the allocation under the National Rural Employment Guarantee Act (NREGA) to US$ 8.71 billion in 2010-11, giving a boost to the rural economy.

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RETAIL SECTOR: The rural retail market is currently estimated at US$ 112 billion, or around 40 per cent of the US$ 280 billion Indian retail market, according to a study paper, 'The Rise of Rural India', by an industry body. Hindustan Unilever (HUL) is planning to significantly increase its rural reach. According to Harish Manwani, Chairman, HUL, the quality and quantity of rural coverage will go up to the extent that "what we have done in the last 25 years we want to do it in the next two years." Currently HUL products reach approximately 250,000 rural retail outlets and the company intends to scale it up to nearly 750,000 outlets in two years time. Direct selling firm Tupperware India, known for its storage containers plans to foray into the rural markets in the next two-three years. "We have solid plans for the rural market. We are working on bringing products for rural people as well," said Asha Gupta, Managing Director, Tupperware India. Castrol India is pushing its rural sales by building up a distribution infrastructure to reach out to all villages. According to Ravi Kirpalani, Chief Operating Officer, Castrol India, "Our distribution now reaches 5,0007,000 towns and villages, but we are planning to take our products to six lakh villages with a population of less of 5,000.''

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FMCG SECTOR: According to figures released by market researcher Nielsen, demand for personal care products grew faster in rural areas than urban areas during the period JanuaryMay 2010. In shampoos, rural demand grew by 10.7 per cent in value terms, while in urban markets, it rose by 6.8 per cent. Similarly, toothpaste sales grew by 9.1 per cent in rural India and by 4.4 per cent in urban markets. Several fast moving consumer goods (FMCG) companies such as Godrej Consumer Products, Dabur, Marico and Hindustan Unilever (HUL) have increased their hiring in rural India and small towns in order to establish a local connect and increase visibility. Swiss FMCG giant, Nestle plans to make further inroads into the rural markets. The company has asked its sales team to deliver "6,000 new sales points every month in rural areas" to expand its presence in Indian villages, according to Antonio Helio Waszyk, Chairman and Managing Director, Nestle India.

ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

AUTOMOBILE SECTOR: Car sales in rural India have been on the increase in the last three years since the government announced various schemes such as farm loan waiver etc, for the rural population. Maruti Suzuki's share of rural sales has increased from 3.5 per cent to 17 per cent in the last three years. Mahindra & Mahindra (M&M) is now selling more Scorpios in rural and semi-urban markets. Scorpio sales have increased from 35 per cent to 50 per cent in the last two years. Toyota Kirloskar Motor (TKM), in which Japan's Toyota Motor Corp holds an 89 per cent controlling stake, is planning at selling 40 per cent of its cars in rural markets in India. According to Hiroshi Nakagawa, Managing Director, TKM, "We are aggressively expanding our dealership footprint in India and quite a significant portion of this will be in country's heartland. By end of 2010, we plan to have 150 dealers across the country." Yamaha is also planning a major initiative in rural India by launching more models in the affordable price range in 2010. "We are very strong in Tier 1 and Tier II cities. Now onwards, our focus will be rural India (Tier III towns). We will launch more models in the affordable price range to dominate the rural market," according to Pankaj Dubey, National Business Head, India Yamaha Motor. At present, around 15 per cent of its sales come from the rural market and Dubey sees this demand increasing substantially in 2010. Tata Motors is also making efforts to sell its pick up truck Ace in rural markets. It has already opened 600 small outlets for the Ace in rural and semi-urban markets. It has also tied up with 117 public sector, gramin (rural) and co-operative banks to help small entrepreneurs buy the vehicle. ESTIMATED ANNUAL SIZE OF THE RURAL MARKET TABLE 1: ESTIMATED ANNUAL SIZE OF THE RURAL MARKET FMCG

Rs. 65,000 Crore

Durables

Rs. 5,000 Crore

Agri-Inputs (including tractors)

Rs. 45,000 Crore

2 / 4 Wheelers

Rs. 8,000 Crore

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In 2001-02, LIC sold 55% of its policies in rural India. Of two million BSNL mobile connections, 50% are in small towns / villages. Of the 6.0 lakh villages, 5.22 lakh have a Village Public Telephone (VPT). 41 million Kisan Credit Cards have been issued (against 22 million credit-plus-debit cards in urban), with cumulative credit of Rs. 977 billion resulting in tremendous liquidity. Of the 20 million Rediffmail sign-ups, 60% are from small towns. 50% of transactions from these towns are on Rediff online shopping site. 42 million rural households (HHs) are availing banking services in comparison to 27 million urban HHs. Investment in formal savings instruments is 6.6 million HHs in rural and 6.7 million HHs in urban.

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Source: NCAER Report, 2011

ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

OPPORTUNITIES OF RURAL MARKETS In the early 2000s, around 700 million people, i.e. 70% of the Indian population lived in 6,27,000 villages, in rural areas. Of this, 90% were concentrated in villages with population less than 2000. According to a study conducted in 2001 by the National Council for Applied Economic Research (NCAER), there were as many "middle income and above" households in rural areas as there were in urban areas. Infrastructure is improving rapidly - In 50 years only, 40% villages have been connected by road, in next 10 years another 30% would be connected. More than 90% villages are electrified, though only 44% rural homes have electric connections. Rural telephone density has gone up by 300% in the last 10 years; every 1000+ population is connected by STD. Social indicators have improved a lot between 1981 and 2001 - Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses halved (41% to 23%). Percentage of BPL families declined from 46% to 27%. Rural literacy level improved from 36% to 59%. Low penetration rates in rural areas, so there are many marketing opportunities TABLE 2: COMPARISON OF USAGE B/W URBAN AND RURAL AREAS Durables

Urban

Rural

Total (% of Rural HH)

CTV

30.4

4.8

12.1

Refrigerator

33.5

3.5

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Source: NCAER Report, 2011

TABLE 3: COMPARISON OF USAGE B/W URBAN AND RURAL AREAS FMCGs

Urban

Rural

Total (% of Rural HH)

Shampoo

66.3

35.2

44.2

Toothpaste

82.2

44.9

55.6

TABLE 4: RURAL MARKETS INFRASTRUCTURE Post Offices

1,38,000

Haats (periodic markets)

42,000

Melas (exhibitions)

25,000

Mandis (agri markets)

7,000

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Marketers can make effective use of the large available infrastructure –

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Source: NCAER Report, 2011

ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

Public Distribution Shops

3,80,000

Bank Branches

32,000

Source: NCAER Report, 2011

Proliferation of large format Rural Retail Stores, which have been successful also DSCL Haryali Stores M & M Shubh Labh Stores TATA / Rallis Kisan Kendras Escorts Rural Stores Warnabazaar, Maharashtra (Annual Sale Rs. 40 crore) ANALYSIS AND DISCUSSIONS A SWOT analysis matrix has been developed to interpret the prospects and problems of rural markets. SWOT analysis matrix contains Strengths, Weaknesses, Opportunities and Threats of Rural Markets. After defining SWOTs of rural markets, Opportunities are compared against Strengths and then Weaknesses to draw SO and WO Strategies. Threats are also compared against Strengths and then Weaknesses to draw ST and WT Strategies as shown in the table 5. TABLE 5: SWOT ANALYSIS MATRIX OF INDIAN RURAL MARKETS Strengths (S)

Weakness (W)

S1: Large Indian Rural Population S2: Good Government Support S3: Availability of Products, Raw Materials

W1: Lack of good Infrastructure W2: Lack of physical distribution networks W3: Low consumption levels W4: Less Research and Development Activities on Rural Markets

External Factors

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Internal

ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

Opportunities (O)

O1: Growing Income Levels Rural Consumers O2: Growing Literacy Levels O3: Growing quality Consciousness O4: Changing Socioeconomic Lifestyles O5: Increasing infrastructure Facilities

SO Strategies

WO Strategies

1. Companies have to customize the products according to consumer demographics. (S1, S3, O1, O4) 2. Companies have to strengthen supply chains with govt. support and Infrastructure. (S2, O5) 3. Companies have to launch branded products in rural Markets too due to increasing levels of quality and Literacy. (S3, O2, O3)

1. As the consumer levels of quality, Literacy and Income are growing, need for good infrastructure like roadways, communication, availability of retail outlets should be available for effective rural marketing. (W1,W2,O1,O2, O3, O5) 2. Companies have to concentrate on Research Activities to observe the rural consumer behavior, usage levels, consumption patterns, observing rural life style. (W3, W4, O4)

1. Companies have to educate consumers in identifying their product and usage. (S1, S3, T2, T3) 2. Government has to implement laws, rules and regulations effectively so that grey market can be controlled. (S2, T1)

1. Improve extension system and transfer of technology to gross-root level. (W1, W2, T2) 2. Building Strong Brand Identity can solve the problem of product identification and grey market products. (T1, T3, W3, W4)

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Threats (T)

T1: Increasing grey market T2: Growing Competition T3: Less Knowledge levels on Product Identification

WT Strategies

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ST Strategies

ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

The development of appropriate communication systems to rural market may cost up to six times as much as reaching an urban market through established media, need rural communication facilities.

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The problems of physical distribution and channel management adversely affect the service as well as the cost aspect. The existent market structure consists of primary rural market and retail sales outlet. The structure involves stock points in feeder towns to service these retail outlets at the village levels. But it becomes difficult maintaining the required service level in the delivery of the product at retail level.

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Rural consumers are cautious in buying and decisions are slow and delayed. They like to give a trial and only after being personally satisfied, do they buy the product.

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Culture is a system of shared values, beliefs and perceptions that influence the behavior of consumers. There are different groups based on religion, caste, occupation, income, age, education and politics and each group exerts influence on the behavior of people in villages.

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As a general rule, rural marketing involves more intensive personal selling efforts compared to urban marketing. Marketers need to understand the psyche of the rural consumers and then act accordingly. To effectively tap the rural market a brand must associate it with the same things the rural folks do. This can be done by utilizing the various rural folk media to reach them in their own language and in large numbers so that the brand can be associated with the myriad rituals, celebrations, festivals, melas and other activities where they assemble.

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Life in rural areas is still governed by customs and traditions and people do not easily adapt new practices. For example, even rich and educated class of farmers does not wear jeans or branded shoes.

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An effective distribution system requires village-level shopkeeper, Mandal/ Talukalevel wholesaler or preferred dealer, distributor or stockiest at district level and company-owned depot or consignment distribution at state level. The presence of too many tiers in the distribution system increases the cost of distribution.

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Television has made a great impact and large audience has been exposed to this medium. Radio reaches large population in rural areas at a relatively low cost. However, reach of formal media is low in rural households; therefore, the market has to undertake specific sales promotion activities in rural areas like participating in melas or fairs.

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Many rural areas are not connected by rail transport. Kacha (wet) roads become unserviceable during the monsoon and interior villages get isolated.

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There are not enough opportunities for education in rural areas. The literacy level is as low (36%) when compared to all- India average of 52%.

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PROBLEMS OF RURAL MARKETS

ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/

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Demand for goods in rural markets depends upon agricultural situation, as agriculture is the main source of income. Agriculture to a large extent depends upon monsoon and, therefore, the demand or buying capacity is not stable or regular.

The Government has to develop infrastructure facilities like roadways, railways etc., in rural areas so as to reach large Indian rural market.

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The rural communication facilities like telecommunication systems, internet facilities, broadcasting systems etc., have to be improved so that there will not be any communication gap among players of the rural market segments.

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Effective Supply Chain Management practices can bring down the various costs associated with rural markets like distribution cost, cost of communication, customer cost, cost of sale etc.

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Educating rural consumers is the key to successful rural marketing. Rural consumers need to be educated in all aspects like usage of the products, gathering product information, consumer rights, laws and regulations, getting the right product at right place at right cost in right time.

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The efficient marketing is predominantly influenced by efficient distribution system it means products such ultimate consumer in the quickest time possible at minimum cost.

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The state marketing board or federation or market committees also the producers, traders and sellers have necessarily to be consulted as they have the principle interest towards its use.

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Suitable structure of support prices for various farm commodities adjusted from timeto-time. Adequate arrangement of agricultural produce on support price, if the price falls below the level.

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Rural marketing is the nerve center of a rural economy; rural markets are the channels for the movements of goods and services as well as to promote cultural integration.

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Greater Need for Strategic Rural Marketing Practices Which includes -

Client and location specific promotion

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Joint or cooperative promotion

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Bundling of inputs

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Developmental marketing

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Unique selling proposition (USP)

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Extension services

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RECOMMENDATIONS FOR EFFECTIVE RURAL MARKETING PRACTICES

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Business ethics

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Partnership for sustainability

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Management of demand

CONCLUSION There were almost twice as many "lower income households" in rural areas as in urban areas. There were 2.3 million "highest income" households in urban areas as against 1.6 million in rural areas. NCAER projections indicated that the number of "middle income and above" households was expected to grow to 111 million in rural India by 2007, compared to 59 million in urban India. Gone were the days when a rural consumer had to go to a nearby town or city to buy a branded product. The growing power of the rural consumer was forcing big companies to flock to rural markets. At the same time, they also threw up major challenges for marketers. In rural markets, customs and beliefs play important role in success or failure of any product. Therefore every marketer has to concentrate on rural markets apart from the matured urban markets. The role of government is very vital in solving the problems of rural markets. Development of infrastructure and effective implementation of laws, rules and regulations will protect of interest of rural consumer. REFERENCES AMBEKAR YADAV J B (1992), Communication and Rural Development, Mittal Publications (New Delhi). 1992. DEVI PRASAD KOTNI V V (2011), BOSE K S, HEMA SUNDAR M, ―Andhra Pradesh Marine Fish Exports: Prospects and Problems‖, Fishing Chimes, Vol.30, No.12, March 2011, pp 65 – 68. DEVI PRASAD KOTNI V V (2011), ― The Banned Surrogate Marketing as brand new Brand Extension Advertising‖, International Journal of Research in Commerce and Management (e-Journal), Vol. 2, No.4, April 2011, pp 85-89.

DEVI PRASAD KOTNI V V (2010), ― Making CRM Successful through HRD Systems‖, Contemporary Management – Issues and Challenges, edited by A.Suryanarayana, K.Kalidas, Smitha Sambrani, Y.Jahangir, Himayala Publishing House, Hyderabad, 2010, pp 126-132. ELJELLY, A(2004), Liquidity Profitability Trade off An empirical Investigation in an Emerging Market, International Journal of Commerce & Management, Vol 14 (2), 2004. GOPAL SWAMY T P, Rural Marketing, Wheeler publishings (New Delhi) 1998.

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DEVI PRASAD KOTNI V V (2011), ― Dynamics of Direct Marketing: A Special reference to Email Marketing‖, Computing, Business Applications and Legal Issues, edited by Rashmi Agrawal, Reema Kurana, Narayan C Debnath, Excel Books, 2011, pp 28-35, pp 171-179.

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DEVI PRASAD K V V (2010), ―Human Resource Development at National Level‖, HRD Times, Vol.12, No.4, April 2010, pp 44-45.

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MANOHAR LAL JALAN (1988), Marketing of Agricultural Inputs, Himalaya Publishing House (Delhi). 1988. MISRA, S.K. (2000). Indian Economy, Himalaya Publishing House, 18th Edition, p. 739 New Delhi. MULVIHILL, DONALD F (1951), "Marketing Research for the Small Company", Journal of Marketing, Vol. 16, No. 2, Oct., 1951, pp. 179–183. RAJAGOPAL, Development of Agricultural Marketing in India, Print well (Jaipur). RAJ KUMAR SINGH (1990), Agricultural Price Policy in India, Print well Publishers – (Jaipur). 1990. RAVINDRANATH V. BADI AND NARANYANSA V. BADI, Rural Marketing, Himalaya Publishing, 2004. REKHA BALU (2001), "Strategic innovation www.fastcompany.com, June 2001, Issue 47, p- 120.

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