A SEMINAR REPORT ON

“Rural Marketing and Corporate Social Responsibility of

Banks”
Submitted to partial fulfillment of the requirements of
“MASTERS OF COMMERCE”

(SESSION=2024-2025)
SUBMITTED TO:
SUBMITTED BY:
PROF.PARAMJIT SIR.
MANMEET KAUR
 M.COM2

12404
School of Commerce and Management

CONTENT
 Introduction
 Rural market and Marketing
 Nature of rural marketing
 Rural marketing in Indian economy
 Challenges in rural marketing
 Opportunities in rural marketing
 Corporate Social Responsibility of banks
 Challenges
 Strategies of rural marketing
 Factors affecting in rural marketing
 4’s A in Rural Marketing
 Importance Of Rural marketing
 Scope of Rural Marketing
 Rural Marketing Examples
 Conclusion
 Bibliography
 INTRODUCTION
Marketing may be described as the process of defining, anticipating and
knowing customer needs, and managing all the resources of the
organizing to satisfy them. The satisfaction of customer’s needs and wants
provides the existence for the organization. The consumer’s behavior
comprises the acts, processes and social relationships shown by individuals,
groups and organizations with products and services.

Knowledge and understanding of the motives of consumer behavior helps an

organization in seeking better and more effective ways to satisfy the
consumers. It helps to select appropriate sales and advertising strategies to
plan marketing program in a more efficient manner.

The rural market of India started showing its potential from the 1960s and
the 70s and 80s showed its steady development. During 90’s, there was a
steady growth of purchasing power of rural India, and there are clear
indications that the 21st century is going to see its full blossoming.

In our country, where research on consumer behavior has been limited to

names only, not much synchronized information is available about the rural
consumers. Only a few big companies known for their marketing orientation,
for example Hindustan Lever, Philips India, Asian Paints, Larsen and Toubro,
TATA group have made concrete efforts in this direction.
There are many aspects that affect rural marketing, for instance, the rural
buyers are not very discriminating. Once they are persuaded to buy a
particular product, they develop a strong felling for it, and become brand
loyals. As a result, Indian manufacturers generally prefer selling fewer items
at higher prices than selling more items at lower prices.

Another thing is that the rural buyers are not particularly keen about quality
and packaging because of which consumer research is not accurate for
entering the rural market.

In recent years, the rural sector gives a unique opportunity to expand their
market since the urban segment is showing clear signs of saturation. The
nature and characteristics of rural market is quite different than the urban
market. Therefore, it is necessary to understand the rural area
characteristics and environment and take action accordingly.

Rural Market and Marketing

India is a land of diversity and about 70% of the population lives in
villages. To a large extent, villages contribute towards the economic
development of the nation through the production of food grains, vegetables,
fruits etc. Export of these agricultural products generate capital and earnings
from foreign exchange.
There are approximately 600,000 big and small villages in India according to
rural market researchers. 25% of villages account for 65% of the total rural
population. So we can calculate 65% of 700 million populations by from only
150,000 villages – which becomes a huge potential of this market.

If we go by statistics, around 70% of the Indian population lives in the rural

areas. This accounts to almost 12% of the world population.

To expand the market by making inroads into the countryside, more number
of MNCs are getting into India's rural markets. Among those are the bigshot
companies like Hindustan Lever, Coca-Cola, Pepsi, LG Electronics, Britannia,
Philips, Colgate Palmolive and the foreign-invested telecom companies as
well.

Rural marketing involves a bunch of processes that includes developing,

pricing, promoting, distributing rural specific product and service which
satisfies the consumer demand and also achieves organizational objectives
as expected from the target market. It is basically a three-way marketing
stage where the transactions can be −

 Urban to Rural − It is a process of selling the products and services

by urban marketers in rural areas. These products mostly include
pesticides, FMCG products, consumer durables, etc.
 Rural to Urban − It is a process where a rural producer sells his
products in urban market. This may or may not be direct, but mostly there
are middlemen, agencies, government co-operatives etc. who take
initiatives in the successful running of the selling process happen
successfully in an appropriate price.
 Rural to Rural − It is a process which includes selling or exchange of
agricultural products, tools, cattle, carts and others to another village in
its proximity.
Nature and Characteristics of Rural Market
There is a saying that the proof of the pudding lies in eating it, like this the
proof of all production lies in consumption or marketing. The speed of
technological improvement increases the buying capacity in people. They
prefer more and better goods and services. The globalization of the Indian
economy has given an advantage to production and mass distribution of
goods and services

Taking these into consideration, there may arise a question whether

marketers can concentrate their activities in urban India consisting of metros
and large industrial townships only, or extend their activities to rural India.
The heart of India lies in its rural parts.

Rural market is different from urban market with respect to its economic and
functional characteristics. The characteristics, purchasing and consumption
pattern of rural people are completely different from the urban people. Due
to the impact of globalization there is a fast change in rural environment.
The composition of supply and demand has also changed significantly.

To understand this development process in the rural areas, awareness on

current environment is very necessary. Knowing the exact change in
consumption of durables is also very important for the marketers to deal with
rural consumers.

Rural market in India is not a different entity in itself, but it is highly

influenced by the sociological and behavioral factors of the country. The rural
market in India brings in bigger revenues for the country, as the rural region
consists of a maximum number of consumers in this country. The rural
market in Indian economy generates revenue almost more than half of the
country's annual income.
 Rural Marketing - In Indian Economy
Rural marketing in Indian economy can be classified mostly under the
following two categories −

 the markets for consumer durables consists of both durable and non-
durable goods
 the markets for agricultural products which include fertilizers, pesticides,
seeds, and so on.

Rural marketing in India is sometimes mistaken by people who think rural

marketing is all only about agricultural marketing. Rural marketing
determines the carrier of business activities from urban sectors to the rural
regions as well as the marketing of various products manufactured by the
non-agricultural workers from rural to urban areas.

The following are the characteristics of rural markets −

 Here agriculture is first and also the main source of income.

 This income is seasonal in nature and fluctuates as it depends on crop
production.
 Though it is large, the rural market is geographically scattered.
 It shows religious, cultural and economic disparities.
 The market is not much developed, because the people here exercise
adequate purchasing power.
 These markets have their orientation in agriculture, with poor standard of
living, low per capital income and backwardness.
 It shows sharper and different regional preferences with distinct
predictions, habit patterns and behavioral aspects.
 Rural marketing process is an outcome of the general rural development
process initiation and management of social and economic change in the
rural sector is the core of the rural marketing process.

Challenges in Rural Market

There are various challenges that hinder the progress of rural market.
Marketers face a number of problems like physical distribution, logistics, no
proper and effective sales force and no effective marketing communication
when they enter into the business of rural markets.

The following are the major problems faced in the rural markets −
Standard of Living

A large part of the population in rural areas lies below poverty line. Thus the
rural market is also underdeveloped and the marketing strategies have to be
different from the strategies used in urban marketing.

Low literacy levels

The low literacy levels in rural areas leads to problem in communication with
the market and the print media has less utility as compared to the other
media of communication.

Low Per Capita Income

In rural market, agriculture is the main source of income and hence expense
capacity depends upon the agricultural produce. Demand may or may not be
stable.

Transportation and Warehousing

Transportation and supply chain management are the biggest challenges in

rural markets. As far as by road transportation is concerned, about 50% of
Indian villages are connected by roads to the nearest big cities. The rest of
the rural markets do not have proper road linkage to other cities which
causes problems in physical distribution.

Many villages are located in hilly remote areas which is difficult to connect
with them through roads. Warehousing is another major problem in rural
areas, as there you will hardly get any organized agency to look after the
storage issue. The services given by central warehousing corporation and
state warehousing corporations are limited only to urban and suburban
areas.
Ineffective Distribution Channels

The distribution chain is not organized and also requires a large number of
intermediates, which in return increases the cost. Due to lack of appropriate
infrastructure, manufacturers are giving back steps to open outlets in these
areas. That is why they need to dependent on dealers, who are rarely
available for rural area which increases the challenges for marketers.

Many Languages and Diversity in Culture

Factors like different behavior and language of every respective area

increases difficulties to handle the customers. The sales force is required to
match the various requirements of the specific areas according to their
culture.

Lack of Communication System

Quick communications facilities like computer, internet and telecommunication systems etc. are
the need of rural market which is a biggest problem due to lack of availability. The literacy level
in the rural areas is quite low and consumer’s behavior is kind of traditional, which is a cause of
problem for effective communication.

Dummy Brands
Cost is an important factor for rural consumers which determine purchasing decision in rural
areas. A lot of fake brands or products that look similar to the original one are available,
providing low cost options to the rural consumers. Most of the time, the rural consumers may not
be aware of the difference due to illiteracy.

Seasonal Demand
Demand may be seasonal in rural market due to dependency on seasonal production of
agricultural products and the income due to those products. Harvest season might see an increase
in disposable income and hence more purchasing power.
Opportunities in Rural Market
To solve the problems of rural market and rural marketing in India, the
following points need to be considered by marketers −

Physical Distribution and transportation

Regarding the problems of physical distribution, the marketers may have
stockiest/ clearing-cum-forwarding (C&F) agents at strategic location for
facilitate the physical distribution for its products in the rural market. The
important advantage of this scheme is that the costs of physical distribution
can be shared between the companies and stockiest.

The different modes of transportation based on availability of tracks should

also be beneficial to the companies. Even to this day, bullock-cart plays a
very vital role in physical distribution where the roads are not available.
Some of the leading MNCs use delivery vans in rural areas. These delivery
vans take the products to the retail shops in every corner of the rural market
and enable the companies to establish direct sales contact with majority of
the rural consumers. This in turn helps in sales promotion.

Rural Market and Retail Sales Outlets

The rural market consists of a number of retail sales outlets along with low
price shops under the public distribution system. The government should
take initiatives to encourage private shopkeepers and cooperative stores to
come forward and establish their business in rural areas.

Fertilizer companies should open their outlets for proper distribution of

fertilizer to the farmers. In addition, the companies dealing in consumer
goods can also apply this model and appoint a number of retailers in rural
market and attach them to the stockiest who distributes the goods to the
retailers as per the potential demand of the market. This approach will help
the companies penetrate into the interior areas of the rural markets.
Sales Force Management
To solve the problems of sales force management, the company takes due
care in the recruitment and selection of sales people because the traits they
require are different from that of the urban sales persons. These sales people
must be fluent in the local/regional language and also have patience to deal
with rural consumers.

Controlling and operating of such a large and scattered sales force,

supervising them in sales calls, guiding and attending to their official and
personal problems, and motivating them for getting better results should be
an exciting and challenging task for the sales manager. Thus, the people
operating in rural areas should have an inherent zeal to serve the rural
peoples and to connect with them.

Marketing Communication
For marketing communication in rural areas, the companies should use
organized forms of media like TV, Radio, cinema and POP (point of
purchase) advertising. In recent times, television is gaining popularity in
rural areas but due to lack of supply of electricity, radio is performing quite
better.

The rural people need demonstration, short-feature films and direct

advertisement films that combine knowledge and perform as better rural
marketing communication. The companies now also use audiovisual publicity
vans that sell the products with promotion campaign directly. Companies can
also organize village fairs, drama shows, and group meetings to convince the
rural consumers about the products and services.

For the rural markets, those sales people are preferred for selection who are
willing to work in rural areas like Sarpanch, Pradhan’s and other elderly
persons. Marketers can also approach them to propagate their messages,
because these persons could be effective communicators within the rural
peoples.

Demand Base and Size

Indian rural market has a vast demand base and size. Rural marketing
involves the process of developing, promoting, distributing rural area specific
products and service exchange between rural and urban market which
satisfies customer demand and also achieves organizational goals. As a part
of development program economic development is concern, government is
making continuous efforts towards rural development.

CSR in Rural India: Addressing the

Unique Challenges and Opportunities
Introduction
Corporate Social Responsibility (CSR) has evolved into an integral aspect of global business
operations. Companies, recognizing the imperative to contribute positively to the communities
they operate in, are extending their arms towards impactful initiatives. In India, a country with
a significant portion of its population residing in rural areas, the role of CSR becomes even
more critical. This blog explores in-depth the distinct challenges and opportunities associated
with CSR in rural India, supported by the latest research data, statistics, real-world examples,
and a focus on the efforts of companies operating in the Indian landscape.
Challenges in Rural India

As we delve into the intricacies of CSR (Corporate Social Responsibility) in rural India, a
nuanced understanding of the challenges faced by these communities is paramount. The rural
landscape of India, diverse and vibrant, presents a tapestry woven with unique difficulties,
each thread representing a distinct obstacle to development. In this section, we unravel the
multifaceted challenges that shape the narrative of rural life, exploring how targeted CSR
initiatives can address these complexities and pave the way for sustainable, inclusive growth.
From limited access to basic services to the intricacies of agricultural dependency,
infrastructure disparities, and beyond, let's embark on a journey to comprehend the hurdles that
demand thoughtful and strategic interventions for a brighter, more equitable rural India.

Limited Access to Basic Services

Rural areas in India grapple with multifaceted challenges, including restricted access to
fundamental services like healthcare, education, and sanitation. According to recent data from
the National Family Health Survey, a substantial percentage of rural households still lack
access to proper sanitation facilities and quality healthcare services. Companies like Hindustan
Unilever, through its Swachh Aadat Swachh Bharat initiative, have undertaken sanitation
awareness campaigns, emphasizing the role of private sector involvement in complementing
governmental efforts.
Agricultural Dependency

The majority of rural households in India rely on agriculture for their livelihoods. Climate
change, unpredictable weather patterns, and outdated farming techniques contribute to the
vulnerability of rural communities. Companies like ITC Limited have taken strides in
promoting sustainable agriculture through initiatives like the e-Choupal, connecting farmers
with information and markets, and contributing to the resilience of rural economies.
Collaborative efforts between the private sector and farming communities are crucial to
implementing modern techniques and ensuring sustainable practices.

Infrastructure Disparities

Rural areas face challenges related to inadequate infrastructure, including roads, electricity,
and connectivity. Recent reports from the Ministry of Rural Development emphasize that
addressing these disparities is crucial for fostering economic development, attracting
investments, and improving the overall quality of life in rural India. Tata Consultancy Services
(TCS), through its 'Internet Saathi' program, has played a significant role in rural electrification
and digital connectivity, showcasing how technological interventions can bridge infrastructure
gaps.

Limited Skill Development Opportunities

Unemployment and underemployment persist in rural India, making skill development

initiatives essential. Providing opportunities for skill enhancement is crucial to empowering the
rural workforce. Recent studies from the National Skill Development Corporation highlight the
effectiveness of programs that align with the specific needs of the local economy. Companies
like Mahindra & Mahindra have undertaken skill development programs tailored for rural
youth, focusing on enhancing employability. Collaboration between corporations and
vocational training institutions is vital for scaling up such initiatives.
Environmental Sustainability

Rural India is often on the frontline of environmental challenges, facing issues like
deforestation, water scarcity, and soil degradation. CSR initiatives from companies like Infosys
and Wipro have actively supported environmental sustainability through afforestation projects,
renewable energy initiatives, and sustainable business practices. Leveraging corporate
expertise and resources in environmental conservation can lead to impactful, scalable solutions
in rural areas.

Access to Finance and Entrepreneurship

Rural entrepreneurship faces challenges related to access to finance and market linkages.
Initiatives by companies like the State Bank of India (SBI) through their Rural Self
Employment Training Institutes (RSETIs) focus on providing financial literacy and credit
support to rural entrepreneurs. Encouraging rural entrepreneurship not only fosters economic
growth but also contributes to reducing unemployment in rural areas.

Corporate Social Responsibility of Banks

Corporate Social Responsibility (CSR) in the banking sector can help improve
rural areas and the economy as a whole. Here are some examples of CSR
initiatives in the banking sector:
 Union Bank of India
 Focuses on rural areas through initiatives like Village Knowledge Centres
and Farmers' Clubs. They also have schemes for girl child education,
drinking water for schools, and bus shelters.
 Bank of India

Focuses on rural development, Swachhta Bharat Abhiyan,

environment sustainability, and educational programs.

 Purple Finance

Focuses on financial literacy and customer engagement through

campaigns that educate rural customers about credit information and
financial management.

 Maitreya
Focuses on microenterprise lending and developed a marketing and
financial literacy tool to attract customers and improve their financial
capabilities.
CSR initiatives can help improve the rural component of a country, which
can help improve sales, investment, and trade. This can create
opportunities for further investment and jobs, which can contribute to the
success of companies that associate CSR policies with rural projects.

 .Some other areas that CSR initiatives in the banking sector can focus
on include:
Poverty eradication, Health and medical care, Infrastructure development,
Education, Environmental protection, Vocational training, and Women's
empowerment.

Factors Affecting Rural Marketing

Several factors can affect rural marketing, some of which have been
discussed below.

o Infrastructure: The need for proper infrastructure, such as roads,

electricity, and water supply, can make it difficult to market products and
services in rural areas. Although this is being formed, it still has a long way to go.

o Income levels: The low income levels in rural areas can limit the
purchasing power of rural consumers. The income levels directly relate to the
purchasing power of a person, and so the products should be priced according to
the income of a person.

o Literacy levels: The low literacy levels in rural areas can make it difficult
to market products and services that require a certain level of education. In this
case, translators are hired by the firms to communicate better.

o Social and cultural factors: The social and cultural factors in rural
areas can influence the buying behaviour of rural consumers. They are the
people who are believed to have a large impact on the buying decision of a
person.

Rural Marketing Strategies

Rural marketing strategies focus on reaching out to rural consumers
effectively. The strategies businesses can use to promote their products in
rural areas are discussed below.

o Product Localization: Businesses must localize their product's needs

and preferences of rural clients. Products are changed according to the local
market to attract more customers.
o Promotions and Advertising: The firms run promotions and
advertising drives to increase the targeted audience's brand awareness and
attract new customers.

o Distribution Channels: Distribution channels play a crucial role not

only in rural marketing but in any marketing for that matter. Businesses must see
that their products reach rural consumers via an effective and efficient
distribution network with the lowest defaults.

o Pricing: Pricing of a product plays a critical role in rural marketing. Businesses

need to price their products competitively to attract price-sensitive rural
consumers. As the people in rural areas range from low-income groups to mid-
income group people, the products should be priced considering these groups'
affordability.
4 A’s of Rural Marketing
The four A’s of rural marketing—Availability, Acceptance, Awareness, and
Affordability—provide a framework for successfully engaging with this
diverse audience.

Availability
The need for developed infrastructure in many rural areas necessitates
innovative distribution solutions. Partner with local distributors who
understand the terrain, utilising mobile vans as pop-up stores. Leveraging
eCommerce platforms with reliable local delivery services can also overcome
logistical hurdles. This will ensure products reach even the most remote
villages.

Acceptability
Rural consumers have distinct needs and preferences that may differ
significantly from their urban counterparts. That’s why brands should adapt
products to suit local conditions by offering features that prioritise
practicality and value. Moreover, tailoring branding to resonate with local
tastes is essential for gaining acceptance in rural markets.

Awareness
Building brand recognition in rural areas requires a multi-faceted approach.
While mass media like television and radio can reach a broad audience,
utilising local media channels, engaging influencers, and leveraging word-of-
mouth marketing are equally important. With increasing internet
penetration, digital channels are also becoming powerful tools for creating
brand awareness in rural communities.

Affordability
Addressing the economic realities of rural consumers is crucial. Your brand
should offer products in smaller, more affordable packaging and also
implement different pricing strategies. Providing credit options aligned with
 agricultural cycles can make products and services accessible to a broader
range of customers.

Corporate Social
Responsibility
CSR PRACTICES IN INDIAN BANKING SECTOR Now-a-days CSR has been assuming
greater importance in the corporate world including financial institutions and
banking sector. Banks and other financial institutions start promoting environment
friendly and socially responsible lending and investment practices. RBI (2007) has
also directed Indian banks to undertake CSR initiatives for sustainable development
and also asked banks to begin non-financial reporting which is related to activities in
the era of environmental, social and economic accounting. It has been observed
from karmayog’s CSR ratings that most of the Indian public sector banks do not
mention recent CSR activities on their annual reports or on the websites. The
financial institutions do not take adequate steps for updating the recent activities in
CSR .CSR has been assuming greater importance in the corporate world, including
the banking sector. To highlight the role of banks in CSR, the RBI circulated a notice
on 20th December , 2007 for all the scheduled commercial banks in India. Recently
financial institutions adopt an integrated approach between customer satisfaction
and CSR in a broader way. RBI also instructs the banks to integrate their business
operation along with social and environmental aspects. The major key areas of CSR
like, children welfare, community welfare, education, environment, healthcare,
poverty eradication, rural development, vocational training, women empowerment,
protection to girl child etc., In recent years an attempt has been initiated to ensure
socially responsible behavior of banking sector in a more organized manner. The
CSR in Indian Banking Sector is aimed towards addressing the financial inclusion,
providing financial services to the unbanked or untapped areas of the country, the
socio-economic development of the country by focusing on the activities like,
poverty eradication, health and medical care, rural area development, self
employment training and financial literacy trainings, infrastructure development,
education, and environmental Protection etc. RBI also insisted upon taking measures
for sustainable development of economy through realizing the dire necessity of CSR.
Reserve Bank of India (2007) stated that CSR entails the integration of 5 social and
environmental concerns by companies in their business operations and also in
interactions with their stakeholders. The major thrust areas for CSR practice in
Indian banks are common in public sector and private sector banks. These areas
include children welfare, community welfare, education, environment, healthcare,
poverty eradication, rural development, vocational training, women's empowerment,
protection to girl child and employment.

Importance of Rural Marketing

To gain more profits, every company has started diversifying its product
categories. As India is an agricultural nation and most of the population stays
in rural areas, rural marketing has become very important for all. Some of
the points on the importance of rural marketing have been discussed below.
  The rural market depicts a vast potential for firms to expand
their reach and raise their customer base.

 Rural consumers have unique needs and preferences, and

catering to those needs can be a good opportunity for
businesses.

 Rural marketing also aids in generating employment

opportunities in rural areas, thereby helping rural
development.

 The success of rural marketing can lead to the growth of the

local economy, as it creates demand for goods and services
and, in turn, enables small businesses to thrive.

Rural Marketing Strategies

Rural marketing strategies focus on reaching out to rural consumers
effectively. The strategies businesses can use to promote their products in
rural areas are discussed below.
  Product Localization: Businesses must localize their product's
needs and preferences of rural clients. Products are changed
according to the local market to attract more customers.

 Promotions and Advertising: The firms run promotions and

advertising drives to increase the targeted audience's brand
awareness and attract new customers.

 Distribution Channels: Distribution channels play a crucial role

not only in rural marketing but in any marketing for that
matter. Businesses must see that their products reach rural
consumers via an effective and efficient distribution network
with the lowest defaults.

 Pricing: Pricing of a product plays a critical role in rural

marketing. Businesses need to price their products
competitively to attract price-sensitive rural consumers. As the
people in rural areas range from low-income groups to mid-
income group people, the products should be priced
considering these groups' affordability.

Scope of Rural Marketing

The scope of rural marketing is vast, as rural areas account for a notable
portion of the Indian economy. The following are some areas where rural
marketing has significant scope, as stated below.

 Agriculture: Agriculture is the primary revenue-generating tool

for the rural economy. Rural marketing has a notable scope in
the agriculture sector. Rural consumers are involved in various
agricultural actions like farming, animal husbandry, and
fisheries. Businesses can cater to the needs of rural clients by
giving them much-needed agricultural inputs like seeds,
fertilizers, and machinery. Similarly, firms can market
 agricultural outputs like crops, fruits, and vegetables to rural
consumers.

 FMCG: Fast-moving consumer goods (FMCG) have a wide scope

in the rural market. Rural buyers have lower income levels
than urban buyers. Also, they are very price-sensitive. FMCG
firms can create goods that cater to rural clients' unique needs
and preferences. For instance, firms like Hindustan Unilever
and Nestle have created affordable and localized goods like
Swasth Bharat soap and Maggi Masala-ae-Magic, mainly for
rural buyers.

 Healthcare: Healthcare is a vital aspect of rural marketing.

Rural consumers often lack access to proper healthcare
facilities due to lesser accessibility. This makes them
vulnerable to various diseases which are highly infectious.
Companies can market affordable healthcare products like
medicines, vaccines, and medical tools to rural users. Similarly,
firms can promote health and hygiene cognition among rural
buyers by educating them via campaigns and programs.

 Education: Education is another area where rural marketing has a very

good scope. Rural areas often need more access to quality education
facilities, making it difficult for pupils to acquire the necessary skills and
knowledge. Firms can promote affordable education products like books,
stationery, and technology to rural users. Similarly, firms can also give
scholarships and other assistance to promote rural pupils and help them
pursue higher education.

Rural Marketing Examples

The following are some examples of thriving rural marketing campaigns in
India.
  ITC e-Choupal: ITC's e-Choupal initiative is a formative example
of a successful rural marketing strategy. It is a web-based
platform that provides farmers with details on weather,
market prices, and best agricultural practices, which helps
them in proper planning. Through e-Choupal, ITC also provides
farmers with agricultural inputs like seeds, fertilizers, and
pesticides, which helps the agricultural sector grow.

 Amul: Amul is another example of successful rural marketing.

Amul's "utterly butterly delicious" campaign was successful in
rural areas. Amul has created cheap and localized products,
viewing the needs of the rural audience.

Classification of Rural Marketing

Rural Marketing can be classified based on the following as stated below.

Product Classification

In rural marketing, products can be divided into two classes: agricultural and
non-agricultural products. Agricultural products include crops, seeds,
fertilizers, and agricultural machinery, while non-agricultural products
include FMCG products, consumer durables, and services. There is also scope
for agri-related products such as vehicles, irrigation tools, etc., which also fall
in this category. Nowadays, the government is also providing many grants
and funds for better growth of these goods.

Market Structure

The market structure of rural marketing can be classified into two types -
primary and secondary markets. The primary market is where the goods are
first sold or exchanged. At the same time, the secondary market is the place
where the product is resold or redistributed to the final consumer. The rural
market is unlike the urban market and needs to be catered to differently.

Marketing Mix

Marketing mix in rural marketing can be classified into four elements -

product, price, promotion, and place. As per the marketing mix, product
refers to the type of goods or services being marketed, price refers to the
cost of the product, promotion refers to the advertising and sales promotion
activities, and place refers to the distribution channels used to reach the
target audience.

Conclusion

Greater economic activity can also facilitate development and

progress in rural areas. The Rural Economy is rapidly developing.
After understanding the rural market it becomes easier to
formulate and implement efficient marketing strategies that can
help a brand tap into the high potential rural market. Rural market
is having huge potential in Indian market and more than 65%
population is residing in rural areas which require proper
attention, effective strategy and wide marketing network. No
single marketing strategy can be suitable for rural and urban
market due heterogeneous in nature. Different strategies are
required for different products from application point of view.

Bibliography

 https://textbook.com
 https://en..wikipedia.org
 https://Indianeconomicdiscussion.com
 https://unionbankofindia.com
 https://www.resarchgateofindia.com