RURAL MARKETING Prolems in Rural Marketing - Higher Cost Long Distances Need to be covered from production point to the

scattered locatio n of consuming households. Thus causing this situation. - Inadequate Banking Facilities It is estimated that there is only one bank branch for every 50 villages. - Inadequate Credit Facilities The rural outlets are unable to carry adequate stocks due to lack of credit faci lities. - Poor Viaility(survival) of Retail Outlets The retailers find the business unprofitable and sales volume is inadequate. - Non-Availability of Dealers Availability of suitable dealers is limited. - Transportation Problem It is quite poor in rural india. Some parts of rural india are still not accesib le to the marketing man - Warehousing Problem It is difficult to find suitable godowns in many parts of rural india. - Communication Problem Posts, telegraphs and telephones are inadequately available. The internet is out of question.

Due to these problems, major companies operating in the rural markte show that t he cost of distribution in rural areas is nearly 2.5 times of the cost in urban areas. Rural Marketing involves greater amount of personal selling compared to the urba n markets. The following are the traits of a good salesman in rural markets-Willingness to be located in rural areas -Cultural Congruence(similarity) -Attitude Factor (he has to be a patient listener) -A Good knowledge of the local language Managing The Rural Sales Force -A longer time needs to be devoted by sales manager in moral marketing context. -Mere classroom training is not sufficient, on the job training is the most impo rtant factor. -Instead of mass media advertizing, puppet shows to be enacted at the time of te mple festivals. TYPES OF RURAL MARKETS -Local Market Mostly located within the area of production and also refer to as primary market

s or village markets. -Distinct Markets They are wholesale markets and located in populated centres. Activities like pri ce making, final grading and packaging takes place. -Terminal Markets It represents the final stage. Activities like financing and warehousing takes p lace here. MARKET SEGMENTATION Like the urban market, Rural markets are not homogenous thus segmentation is imp ortant here. It can be segmented on the following basis -Geographic Segmentation _climate _level of irrigation _Productivity _Nearness to Town -Demographic Segmentation _population Spread _age _education _income