In recent years, rural markets have acquired significance, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities.
On account of green revolution, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing, has emerged. But often, rural marketing is confused with agricultural marketing - the latter denotes marketing of produce of the rural areas to the urban consumers or industrial consumers, whereas rural marketing involves delivering manufactured or processed inputs or services to rural producers or consumers.
The Indian rural market generates about 50 per cent of the country's gross domestic product (GDP). Rural India comprises around 840 million people, and growing income levels and greater ambitions are progressively driving demand there. In the period 2009–2012, rural consumption per person increased annually at 19 per cent, according to data from National Sample Survey Organisation (NSSO).
The consumption habits of India's rural populace are gradually mirroring those of their urban counterparts. Due to this changing behaviour and the sheer size of the market, the hinterlands are a tremendous investment opportunity for companies. Today, premium products are penetrating the market and brands are no longer a novelty.
Rural Marketing, Rural Mindset, Rural Market Potential, RM Levels
