The term ‘rural marketing’ used to be an umbrella term for the
people who dealt with rural people in one way or other. This term got a
separate meaning and importance after the economic revaluation in
Indian after 1990. So, before venturing into the other aspects of rural
marketing let us discuss the development of this area in different parts
which is briefly explained here.
Part I (Before 1960): Rural marketing referred to selling of rural
products in rural and urban areas and agricultural inputs in rural
markets. It was treated as synonymous to ‘agricultural marketing’.
Agricultural produces like food grains and industrial inputs like cotton,
oil seeds, sugarcane etc. occupied the central place of discussion during
this period. The supply-chain activities of firms supplying agricultural
inputs and of artisans in rural areas received secondary attention. The
local marketing of products like bamboo baskets, ropes, window and door
frames, small agricultural tools like ploughs by sellers like black smiths,
carpenters, cobblers, and pot makers were emphasised in general. This
was totally an unorganized market where all banias and mahajans (local
business people) dominated this market.
Part II (1960 to 1990): In this era, green revolution resulted from
scientific farming and transferred many of the poor villages into
prosperous business centers. As a result, the demand for agricultural
inputs went up especially in terms of wheats and paddies. Better
irrigation facilities, soil testing, use of high yield variety seeds, fertilizers,
pesticides and deployment of machinery like powder tillers, harvesters,
threshers etc. changed the rural scenario. In this context, marketing of
agricultural inputs took the importance. Two separate areas of activities
had emerged- during this period ‘marketing of agricultural inputs’ and
the conventional “Agricultural Marketing”. During this period, the
marketing of rural products received considerable attention in the
general marketing frame work. The formation of agencies like Khadi and
Village Industries Commission, Girijan Cooperative Societies APCO
Fabrics, IFFCO, KRIBHCO, etc., and also the special attention
government had paid to promote these products were responsible for this
upsurge. Village industries flourished and products like handicrafts,
handloom textiles, soaps, safety matches, crackers etc. hit the urban
market on a large scale from rural areas.
Part III (After Mid 1990s): The products which were not given
attention so far during the two earlier phases were that of marketing of
household consumables and durables to the rural markets due to
obvious reasons. The economic conditions of the country were as such
that the rural people were not in a position to buy these kinds of
products. Secondly, our market was in a close shape and we newer
allowed companies (foreign) to operate in Indian market. But we lifted the
… and opened up economy, consequently companies started flourishing
in India. The small villages/hamlets were widely scattered making reach
difficult and expensive consequently. Rural markets were seen an
adjunct to urban market and conveniently ignored. However, since
1990s, India’s industrial sector had gained in strength and maturity. Its
contribution to GNP increased substantially. A new service sector had
emerged signifying the metamorphosis of agricultural society into
industrial society. Meanwhile, due to the development programmes of the
central and state governments, service organizations and socially
responsible business groups like Mafatlal, Tatas, Birlas, Goenkas and
others, the rural area witnessed an all round socio-economic progress.
The economic reforms further accelerated the process by introducing
competition in the markets. Steadily, the rural market has grown for
household consumables and durables.
Rural marketing represented the emergent distinct activity of
attracting and serving rural markets to fulfil the needs and wants of
persons, households and occupations of rural people. As a result of the
above analysis, we are in a position to define rural marketing “Rural
marketing can be seen as a function which manages all those activities
involved in assessing, stimulating and converting the purchasing power
into an effective demand for specific products and services, and moving
them to the people in rural area to create satisfaction and a standard of
living for them and thereby achieves the goals of the organization”.
people who dealt with rural people in one way or other. This term got a
separate meaning and importance after the economic revaluation in
Indian after 1990. So, before venturing into the other aspects of rural
marketing let us discuss the development of this area in different parts
which is briefly explained here.
Part I (Before 1960): Rural marketing referred to selling of rural
products in rural and urban areas and agricultural inputs in rural
markets. It was treated as synonymous to ‘agricultural marketing’.
Agricultural produces like food grains and industrial inputs like cotton,
oil seeds, sugarcane etc. occupied the central place of discussion during
this period. The supply-chain activities of firms supplying agricultural
inputs and of artisans in rural areas received secondary attention. The
local marketing of products like bamboo baskets, ropes, window and door
frames, small agricultural tools like ploughs by sellers like black smiths,
carpenters, cobblers, and pot makers were emphasised in general. This
was totally an unorganized market where all banias and mahajans (local
business people) dominated this market.
Part II (1960 to 1990): In this era, green revolution resulted from
scientific farming and transferred many of the poor villages into
prosperous business centers. As a result, the demand for agricultural
inputs went up especially in terms of wheats and paddies. Better
irrigation facilities, soil testing, use of high yield variety seeds, fertilizers,
pesticides and deployment of machinery like powder tillers, harvesters,
threshers etc. changed the rural scenario. In this context, marketing of
agricultural inputs took the importance. Two separate areas of activities
had emerged- during this period ‘marketing of agricultural inputs’ and
the conventional “Agricultural Marketing”. During this period, the
marketing of rural products received considerable attention in the
general marketing frame work. The formation of agencies like Khadi and
Village Industries Commission, Girijan Cooperative Societies APCO
Fabrics, IFFCO, KRIBHCO, etc., and also the special attention
government had paid to promote these products were responsible for this
upsurge. Village industries flourished and products like handicrafts,
handloom textiles, soaps, safety matches, crackers etc. hit the urban
market on a large scale from rural areas.
Part III (After Mid 1990s): The products which were not given
attention so far during the two earlier phases were that of marketing of
household consumables and durables to the rural markets due to
obvious reasons. The economic conditions of the country were as such
that the rural people were not in a position to buy these kinds of
products. Secondly, our market was in a close shape and we newer
allowed companies (foreign) to operate in Indian market. But we lifted the
… and opened up economy, consequently companies started flourishing
in India. The small villages/hamlets were widely scattered making reach
difficult and expensive consequently. Rural markets were seen an
adjunct to urban market and conveniently ignored. However, since
1990s, India’s industrial sector had gained in strength and maturity. Its
contribution to GNP increased substantially. A new service sector had
emerged signifying the metamorphosis of agricultural society into
industrial society. Meanwhile, due to the development programmes of the
central and state governments, service organizations and socially
responsible business groups like Mafatlal, Tatas, Birlas, Goenkas and
others, the rural area witnessed an all round socio-economic progress.
The economic reforms further accelerated the process by introducing
competition in the markets. Steadily, the rural market has grown for
household consumables and durables.
Rural marketing represented the emergent distinct activity of
attracting and serving rural markets to fulfil the needs and wants of
persons, households and occupations of rural people. As a result of the
above analysis, we are in a position to define rural marketing “Rural
marketing can be seen as a function which manages all those activities
involved in assessing, stimulating and converting the purchasing power
into an effective demand for specific products and services, and moving
them to the people in rural area to create satisfaction and a standard of
living for them and thereby achieves the goals of the organization”.
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