FACTORS AFFECTING RURAL MARKETING
While a variety of factors in this concern have brought about the big growth in the rural
demand, a few of them are discussed as follows:
¾ New income due to agricultural/rural development: The technological
breakthrough, popularly known as the green revolution, which took place in Indian
agriculture from the mid-1970s onwards, has added to the prosperity of rural India
considerably. Moreover, in recent years, as part of the new farm policy, high
support prices are offered for farm products. As a result, there is now more money
in the hands of the owner-farmers in the rural areas. There have also been some
concerted efforts towards rural development in general, besides agriculture
development. This has generated new employment and new income and purchasing
power among the rural people. The rural population can no longer be labeled en
masse as a poverty-stricken lot.
¾ The expectation revolution: The expectation revolution among the rural
folks completes the picture. The ‘rising expectations’ of the rural people have
greatly influenced the rural, market environment. It has enlarged the desire as well
as awareness of the rural people; it has strengthened their motivation to work, earn
and consume. The rise in income provides substance to the aspirations.
¾ Season: Rural demand is more seasonal compared to urban demand. The
pre-dominance of agriculture in the income pattern is one main reason for this. The
relatively greater influence of marriages and festivals on the purchase pattern is
another. Interestingly, marriages and festivals often coincide with the harvest.
Besides being seasonal, rural demand is somewhat irregular as well. The predominance of agriculture in the income pattern is again the main reason for this.
Agriculture in many parts of India still depends on the vagaries of the monsoons. A
variety of factors have rendered the rural market quite attractive to corporate in
recent years