What is Rural Marketing|Benefits of Rural Marketing|Rise of Rural Marketing in India|

Are you seeking an informative article on what is rural marketing Look no further! This comprehensive guide will give you an overview of rural marketing the rise of rural marketing in India, and the benefits of rural marketing.

Learn how businesses can harness rural areas’ huge potential, understand rural consumers’ unique characteristics, and develop effective marketing campaigns. Read on to discover the secrets of successful rural marketing in India!

As a marketer, you must know the importance of rural areas for business expansion. We are brought to rural marketing by this marketing concept. It is well known that the countryside is home to nearly two-thirds of the world’s population, especially in developing countries. In addition, agriculture and associated activities are a major source of livelihood for most people in the countryside. However, knowing about Rural Marketing and its marketing strategies would be useful if you plan to expand your business in rural areas. Because in the case of rural marketing, your urban strategies can only be successful sometimes.

What is Rural Marketing?

Rural marketing refers to the production, marketing, and conversion into an efficient demand for specific products or services of brought expenditure in rural areas. The development of a rural marketing strategy, discussed in the present article, begins this process. Businesses want to expand their operations, explore new markets, and reach a larger customer base by participating in Rural Marketing.

In India, around 70-75% of the population lives in the rural sector. The rural sector of India has a huge consumer base, thus offering outstanding opportunities for companies that want to expand their market. Compared with city areas, the lifestyle and consumption patterns of people living in rural areas differ.

It creates an opportunity for marketing agents to conduct intensive surveys and studies concerning the behavior of rural consumers to reach their rural market objectives. In addition, the development of e-commerce has also played a major role in driving growth in the Rural Market.

The internet shopping platforms, like Amazon and Flipkart, have expanded their business to rural areas, which made it easier for customers in these regions to shop online. The availability of products on the Internet also increases the variety of goods available in remote areas and facilitates access to a wider audience for businesses.

Rise Of Rural Marketing In India

The rise of rural marketing in India rises with the new thought processes of development, let’s discuss these:-

1:- Government initiatives

A government emphasis on financial inclusion has also boosted the development of the rural market. The Pradhan Mantri Jan Dhan Yojana aims to make every household in this country financially accessible. It has helped make it easier for people in remote areas to access financial services and contributes to their economies’ development.

2:- Rising literacy levels

As per the 2001 census report, approx 50% of the rural population is literate. It contributed to a growing demand in rural areas. It has led to a change in rural consumers’ purchasing habits and lifestyles. There has been an increase in demand for consumer products as a result of higher levels of literacy.

3:- Infrastructure facilities

In rural India, infrastructure and public services projects such as road construction, communication network, rural electrification, and public distribution system are growing. Rural marketing has the potential to take place because of these factors.

4:- Agricultural research

The research in agriculture also gave rise to a wider range of rural marketing opportunities. The Indian Council of Agricultural Research, ICAR, and other institutions conduct agricultural research in India. The yield of the crop has grown significantly as a result of the introduction of new scientific methods. That’s what brought about the Green Revolution.

5:- Urban influence

Urban people’s buying behavior and lifestyle are affecting the people living on the rural side. Exposure to the mass media and village workers working in cities may affect the youth’s lifestyle and habits in villages. These are a few examples of the rise of rural marketing in India.

Benefits of Rural Marketing

Benefits Of Rural Marketing In India

Visits and conversations with the people of these villages provide one of the easiest ways to get a good look at rural markets. In this section, we will check some key benefits of rural marketing in India.

1:- Untapped Market

Rural marketing has several advantages, in particular, that it can convert great unused demand from the agricultural sector, which could be sold by undertakings doing this type of business and thus enables them to achieve increased profits and overall profitability. The same is true for the rural market’s untapped demand: once a company can connect with the rural population through marketing, its untapped demand will be at its doorstep.

2:- Less Competition

In the case of marketing, where there is intense competition throughout the world, rural markets are an exception because not many companies are interested in marketing in rural areas, and that is where companies can take advantage of aggressive rural marketing and gain market share in rural markets. Simply put, a company can enter the rural marketplace rather than be a tiny market player in urban areas. Some people want to be large fish in a small pond, not small fish in an ocean.

3:- Easier to Convince

It is much easier to persuade people about the usability of a product or service in rural areas where there are few businesses because there are no close substitutes. It is in contrast to urban areas, where it is difficult for businesses to persuade customers and keep current customers for a long time because of close substitutes and information overload.

4:- Life Cycle Advantage

In urban markets, due to saturation, a few brands have reached maturity and the stage of decline. It is because the demand was well supplied with all the different products offered. Whereas rural markets are more reliable than they may have untapped potential, this is where the opportunity lies.

5:- Tourism in the Rural Areas

Rural tourism is popular not only because it allows people to escape the city but also because of the hospitality and unique lifestyle of rural people. It is where urban visitors, who wish to return to their native country and occasionally have a taste for life in the countryside, can be attracted. Tourism is welcome in areas with few hotels and tourist destinations, which generate much revenue for the rural population, regardless of the intentions.

Also Read:- What is Service Marketing and Its Benefits

Benefits of Rural Marketing in India

Strategies of Rural Marketing

1:- Product Strategies

A successful product in an urban market may not be good for a rural market. As a result, when it is released to rural consumers, the company must draw up a robust model for its product, particularly for durable goods. Brands are becoming important in rural markets as the population becomes more acquainted and informed. However, the simplicity of brands’ names, visual logos, product profiles, and colors distinguishes them in such markets. The product should be packaged in small compartments at a reduced price to meet the demands of rural consumers so that it can reach daily wage workers with limited funds.

2:- Pricing Strategies

The rural markets should have their pricing strategy instead of the metropolitan ones. The price should be less than this to gain the attention of local consumers. These products’ durability and value to their customers are more important for rural customers. They are fine with paying more for a more feature-rich product.

Also Know:- Service Marketing Mix

There needs to be a higher living level for consumers in the countryside. They’re not willing to spend a lot of money on things with flashy packaging because they prefer focusing more on the utility of their products, so investing energy and time in complicated product packaging won’t make sense. In rural communities, occasions and festivals are highly valued and celebrated. Consequently, rural enterprises are taking advantage of such extraordinary events to offer various discounts and incentives for their customers.

3:- Promotion Strategies

Local or regional media also includes audiovisual vans, animal parades, carriage fares, folk shows, and other events. A good way to get your name out in these places is to display advertisements, video clips, movie clips, posters, and paintings. Some forms of entertainment are available in our villages; television, radio, newspapers, and movies. Companies use these well-known mass media to promote their products.

In rural communities, television stars and models are worshiped as role models. Consequently, the use of familiar faces in television commercials is required by advertisers who want to promote their brands. In rural communities, television stars and models are worshiped as role models. Consequently, the use of familiar faces in television commercials is required by advertisers who want to promote their brands.

4:- Distribution Strategies

There are local markets, including fares, farmers’ markets, Sunday markets, and feeder markets in the countryside. People from the village gather here to buy things and talk to each other. The company maintains warehouses and depots in some of its most important countryside locations to offer the products locally and in neighboring cities. The two organizations work as intermediaries between enterprises and rural consumers.

They deliver products to shops and then sell them to their customers. In villages, the government runs reasonable prices shops which provide everyday essentials and good quality goods at a reduced cost. One such PDS in India is the Ration Shop. When adequate transport is unavailable, the company must provide a vehicle to carry goods in remote areas. These are the more genuine strategies of rural marketing.

Strategies of Rural Marketing


Much must be done in rural markets, and each part of the strategies needs to be properly designed and structured. Consider these points in the context of rural marketing strategies and strategies. Your presence in rural markets could bring you a high consumer base and market share. Rural areas account for 70% of the Indian population, a substantial number to consider in rural marketing.

The rural marketing strategy is based on several factors and differs greatly from the traditional one. The best results in the field of regional marketing are achieved when personal selling is involved. To respond to the needs and demands of rural customers, a company must restructure its marketing method when deciding whether to enter the rural market.

Producers need to prepare modest product packaging at an affordable price to attract the attention of process-sensitive consumers. Communication and entertainment media, which are available widely in rural areas, must be the focus of marketing.

Also Read:- Know about Human Resource Planning Process

Q1. What are the reasons for the growth of rural marketing?

Demands for consumer goods and services have increased as disposable incomes increase, resulting in a growth of the rural market. Infrastructure improvement is a further significant factor that has contributed to the growth of the Rural Market.

Q2. What are the main features of the rural market?

Rural markets are tricky to predict, and particular features distinguish them from urban markets. The featured population is largely illiterate, has low and irregular income, has no monthly payment, and is subject to fluctuations in the flow of income due to the monsoon winds.

Q3. What is the size of the rural market in India?

India’s rural consumer packaged goods market was estimated to be approximately 110 billion US dollars for the fiscal year 2020. This sector has grown significantly in recent years, accounting for 45 % of the country’s FMCG market. The rising income levels caused an apparent increase in expenditure on nonperishable goods.

Q4. What are the challenges of rural marketing?

Rural marketing poses several challenges, including limited access to infrastructure, low educational attainment, and cultural diversity. As distribution and logistics can be complicated by inadequate transportation networks, it is important to adapt strategies to overcome these obstacles.

Q5. How can I identify my target audience in rural markets?

Conduct thorough market research to identify your target audience in the rural market. It includes demographic analysis, economic conditions, and consumer behavior patterns. Interacting with the local community and leveraging information from market research agencies can help you understand the needs and preferences of your target audience.

Q6. Why is rural marketing important?

Rural marketing is very important because rural areas have enormous growth potential. With around 70% of the world’s population living in rural areas, tapping into this market could open up important business opportunities. In addition, rural consumers have distinct needs and preferences from urban consumers, requiring specialized marketing efforts.

Leave a Comment