Process and Scope of Rural Marketing


What is Rural Marketing?

Rural Marketing is a process of encouraging people to live in rural areas and convert their purchasing power into an effective demand for goods and services. Rural marketer helps to provide all kind of facilities to the rural areas and with the aim to improve their standard of living and achieving the company’s objective.

Definition of Rural Marketing

“A process which starts with a decision to produce a saleable farm commodity and it involves all the aspects of market structure or system, both functional and institutional, based on technical and economic considerations and includes pre and post-harvest operations, assembling, grading, storage, transportation and distribution.”
– According to National Commission on Agriculture

Processes of Rural Marketing

It is a two-way marketing process wherein the transactions can be:

Urban to Rural

Urban to Rural involves selling of Pesticides, FMCG Products, Consumer durables, etc. Urban to Rural is a process of selling of products and services by urban marketers in rural areas.

Rural to Urban

Rural to Urban involves selling of fruits, vegetables, grains, pulses etc. In Rural to Urban, a rural producer (involved in agriculture) sells his product in the urban market.

Rural to Rural

These include selling of agricultural tools, cattle, carts and others to another village.

Importance of Rural Marketing

  • Rural marketing is helping to create new employment opportunities in rural as well as urban areas.
  • Rural marketing is also helping to upgrade the living standard of the people and increasing purchasing power.
  • Rural marketing helping to improve transportation, insurance, banking, communication, entertainment, and other facilities in rural areas.
  • Literacy rate is increasing in rural areas. According to Census 2019, it stood at 75% (2001 census 68.9% ).

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