Rural marketing involves the process of developing, pricing, promoting and distributing rural specific products and services leading to exchange between rural and urban market which satisfies consumer demands and also achieves organizational objectives
It is a two way marketing process wherein the transactions can be:
1. Urban to Rural
A major part of rural marketing falls into this category. It involves selling of products and services in urban market in rural areas. These include, Pesticides, FMCG products, consumer durables, etc…
2. Rural to Urban
Transactions in this category basically fall under agricultural marketing where a rural producer seeks to sell his products in urban market. An agent or a middle man plays a crucial role in the marketing process. The following are some of the important items sold from the rural to urban areas: seeds, fruits, vegetables, milk and related products, forest produces and spices, etc…
3. Rural to Rural
This includes the activities that take place between two villages in close proximity to each other. The transactions relate to the areas of expertise the particular village has. These include selling tools, cattle, carts to other villages in its proximity.
Rural marketing requires the understanding of the complexities, Indian agricultural industry has been growing at a tremendous pace in the last few decades. The rural areas are consuming a large number of industrial ad manufactures products. The rural agricultural production and consumption plays a predominant role in developing the Indian economy.
The concept of rural marketing has to be distinguished from Agricultural marketing. Marketing is the process of identifying and satisfying a customer need by providing them with adequate after sales service. Rural marketing is different from agricultural marketing, which signifies marketing of rural products to the urban consumer or institutional markets. Rural marketing basically deals with delivering manufactured or processed inputs or services to rural producers, the demand for which is basically a derived outcome.