Population and its locations, occupation pattern, expenditure pattern, infrastructure facilities

Rural Marketing: Population, Occupation Patterns, Expenditure Patterns, and Infrastructure Facilities

Definition and Demarcation of Rural Areas: Rural areas are defined differently by various authorities based on population size, income levels, and economic activities:

• Population-Based Definition:
  • Areas with a population of less than 10,000 are typically considered rural.
  • The Census Department of India considers areas with a population of 5,000 or less, a population density of less than 400 persons per square kilometer, and 75% of the male working population engaged in non-agricultural activities as rural.
• Income-Based Definition:
  • Segments with annual incomes of less than Rs. 11,000/- are considered rural.
• Economic Activity-Based Definition:
  • Areas where agriculture is the main economic activity, regardless of population size, are often classified as rural.

Rural Market Characteristics: Rural markets are typically characterized by low population density, limited infrastructure, and agriculture as the primary economic activity.

Population and Location:

• India has a significant rural population, with 75% living in 638,365 villages.
• 90% of the rural population lives in villages with populations of less than 2,000.
• Rural areas constitute 72% of the total households in India, amounting to 135 million households.

Occupation Patterns:

• Primary Occupations: Most rural residents are engaged in farming, trading, poultry work, plumbing, electrical work, and dairy farming.
• Variability: There is a wide range of occupations, and the economic status of farmers varies significantly.
  • Big Farmers: Often possess branded products such as TVs, refrigerators, and furniture.
  • Small Farmers: Typically have limited resources and funds, making it difficult for them to afford expensive branded products.

Expenditure Patterns:

• Detailed data on income allocation and buying preferences in rural areas is often lacking, making market segmentation challenging.
• Socio-economic classifications exist based on occupation, education, and ownership profiles, but comprehensive income data is sparse.

Infrastructure Facilities:

• Roads and Transportation: Improved connectivity has made it easier for marketers to access rural markets.
• Telecommunication: Growth in telecom services enables marketers to reach rural consumers via mobile phones.
• Financial Institutions: Cooperative and public sector banks offer low-interest loans to rural consumers, enhancing their purchasing power.

Opportunities and Challenges in Rural Marketing:

• Consumer Willingness: Acceptance of innovation varies across rural markets.
• Agrarian Society: India's predominantly agrarian society presents unique challenges and opportunities for marketers.
• Market Saturation: As urban markets become saturated, rural markets offer untapped potential for growth.
• Retail Boom: The growth of retail in rural areas can expedite rural marketing efforts.

Development and Historical Context:

• Agriculture and pastoral life along riverbanks marked the beginning of settled life.
• During the Bronze Age, tools and implements were developed for agricultural use, and industries such as textiles, paper, iron, and furniture making evolved.

Key Points:

• Rural marketing involves targeting rural consumers with specific goods and services.
• Marketers are attracted to rural markets due to the large population, increased income, improved infrastructure, and saturation of urban markets.
• Effective rural marketing requires understanding the unique characteristics and needs of rural consumers.