Rural Marketing Environment

EnvironmentIt refers to the surroundings , external objects , influences or circumstances under which someone or something exists.Environment of any organization is the aggregate of all conditions, events and influences that surround and effect it

Types of environmentDemographicSocio-CulturalPoliticalEconomicTechnological

DEMPGRAPHIC ENVIRONMENT For the first time since Independence, the absolute increase inpopulation is more in urban areas that in rural areas Rural Urban distribution: 68.84% & 31.16% Level of urbanization increased from 27.81% in 2001 Census to31.16% in 2011 Census The proportion of rural population declined from 72.19% to 68.84%

Literacy Rate Rural Urban DifferentialIndia - 2001, 2011

Gap between Literacy Rate in Urban and Rural areas is steadily declining in every census. In Census 2011, the gap stands at 16.3 points

LITERACY RATE(in percentage)

20012011India64.874Rural58.768.9Urban79.985

Number of Workers by Residence India : 2011* Work Participation Rate is defined as the number of workers per 100 population(in million)

ResidenceNumber of WorkersNon-WorkersWork Participation Rate*Total481.7728.839.8%Rural348.6484.941.8%Urban133.1243.935.3%

ECONOMIC ENVIRONMENT

Per Capita Rural Income

SOURCES AND PATTERNS OF INCOME Primary source is agricultureNo regular income throughout the year (Seasonality)Cash only at the time of harvest Marketers should notice of time of year when incomes are dueCrop patterns vary, and time of cash surpluses from harvests vary geographicallyCash crops and services leading to stable cash flows throughout the year.Remittances from outside.

Rural Housing Pattern (in percentage)

SOCIO CULTURAL ENVIRONEMNTFeatures:Strong casteismGender discriminationHuge cultural diversityTied Social customs Group influence on behavior

POLITICAL ENVIRONMENTPanchayati Raj : Mahatma Gandhi advocated Panchayati Raj, a decentralized form of Government where each village are responsible for its own affairs, as the foundation of India's political system. The term for such a vision was Gram Swaraj ("village self-governance").Provides 3 tire system for all the states population exceeding 2 mn.Elections after every 5 yearsTo collect taxes, duties, tolls, fees etc.

TECHNOLOGICAL ENVIRONMENTGreen Revolution: This started in the year 1967-78, for attaining self sufficiency in food grains.

White Revolution: It aimed at achieving self sufficiency in milk products , formation cooperatives and systematization was the primary objective.

Comparison of rural and urban environment

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