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INTRODUCTION OF RURAL MANAGEMENT

Rural management is the study of planning, organising, directing, and controlling of cooperatives, agribusiness and allied fields. It merges the knowledge of management studies and applying it in the rural context. Most of the courses are designed in such a way that the concepts taught in the class is applied in the real life through training in the rural areas through case-studies and interaction with the rural people.

Defining Rural Marketing


National Commission on Agriculture Decisions to produce saleable farm commodities involving all the aspects of the market system or structure, both functional and institutional, based on technical & economic considerations and includes the pre & post harvest operations. NGOs Marketing products produced in rural areas to urban areas Marketing products produced in rural areas in rural markets Corporate Rural Marketing Definition

Function that manages all activities involved in assessing, stimulating and converting the purchasing power of rural consumers into effective demand for specific products and services to create satisfaction & a better standard of living for achieving organisational goals.

Phases in Rural Marketing


Phase One( Pre 1960s) Marketing rural products in rural and urban areas Agricultural inputs in rural areas Agricultural marketing Farming methods were primitive and mechanisation was low Markets unorganised

Phase Two ( 1960s to 1990s)

Green

Revolution

Companies

like Mahindra and Mahindra, Sri Ram Fertilisers and IFFCO emerge
Rural

products were also marketed through agencies like KVIC

Phase Three( 1990s to Present)

Demand

for consumables and durables rise

Companies

find growth in urban markets stagnating or falling

Transitions In Rural India Transitions In Rural India

Non food, cash crops Grain Crops Food On land activities Farm Activities Livestock & fisheries Manufacturing & services

RURAL MARKET ENVIRONMENT


Social changes Economic changes Political changes Physical changes Technological changes

IMPORTANCE
Faster communication and logistics

New technologies
Variety of choices and product knowledges at all

levels Improved standard of living Arrival of global products Increasing cross border alliances Urban markets are getting saturated

RURAL MARKETING APPROACHES


1. TRICKLE DOWN APPROACH 2. UNDIFFERENTIATED APPROACH 3. DIFFERENTIATED APPROACH 4. BOTTOM OF THE PYRAMID APPROACH

CLASSIFICATION / STRUCTURE OF RURAL MARKET

CONSUMERS

RETAILERS

WHOLESELLERS & SEABOARD MARKETS

CENTRAL MARKETS

DISTRICT CONCENTRATION & PROCESSING MARKETS LOCAL ASSEMBLING & PROCESSING MARKETS

FARMERS

Rural Market Segmentation

Segmentation is the process of dividing or categorizing the market into different groups based on one or more variable.
Bases for segmenting consumer market: Geographic Demographic Psychographic Behaviouralc

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