RURAL MARKETING ENVIRONMENT:

An organizations environment consists of the things by which it is surrounded. It includes

external and internal forces which are tangible as well as intangible. Rural Marketing basically
involves focused marketing of the product by the organization.

The rural Marketing Environment is not constant and simple. It keeps on changing with time and
also it is complex. The Marketing Organizations need to keep on changing its strategy due to
continuous changes in requirement in market. They need to foresee the changes. Only an
adaptable organization can survive the competition.

Following are the areas in which Rural Marketing Environment changes:
1. Social Changes
2. Economic Changes
3. Technological Changes
4. Political Changes
5. Ethical Changes
6. Physical Changes

1. Social Changes:

It consists of three factors:

a. Sociological factor:
The society in which the people live influences the lifestyle, habits and tastes of
people. Consumer society as well as the community to which they belong is very
important. It influences the consumer lifestyle to a great extent.

b. Anthropological factor:
Rural Marketing is affected by the culture and subculture and the living pattern of the
society. This patterns influence sales promotions, advertising, selling strategies and
packing.

c. Psychological Factors:
Factors such as consumer behaviour, attitude, values, ethics and mentality vary from
people to people. The study of behaviour is very important and essential while
making marketing strategies.

2. Economic Factors:

a. Competition:
A good and healthy competition helps in bringing good and overall improvement in
economic activities. Due to healthy competition, competitors are forced to make good
quality and good quantity at good price.

b. Consumer:
Nowadays, consumer are quite aware about the products they are getting. They are
becoming knowledgeable and choosy.

c. Price:
Pricing is a very important factor in Marketing Strategy. It should be market friendly,
neither too high nor too low. They also need to keep in mind return on Investment
and profit.

3. Technological Factors:

The marketing strategies nowadays are been greatly influenced by fast changing Science
and Technology. Organizations are now using technology to the best use which provides
them cutting edge for marketing their products. The communication and transportation
system have become faster and speedier. The marketer need to use new techniques and
tools of marketing strategies to adapt changing environment.

4. Political Factor:

The government policies and procedures effect the marketing strategy of the Marketer.
The govt policies towards taxation, trade and commerce and various other aspects
influence marketing strategy. They have to meet the political requirements in the
particular environment.

5. Ethical Factors:

For many companies, Ethics play an important part in developing their marketing
strategies. A business without ethical values means degeneration. It spoils the companys
goodwill and it is not good for long run.

6. Physical Factors:

The physical infrastructure in terms of storage and distribution facilities affect the
strategy. Efficient and low cost logistic facilities helps the marketing organization in a
great manner.


Factors affecting rural consumer behaviour:
1. Consumer Environment:

The surrounding of the consumer affects the behaviour of consumer. The area or
environment in which the consumer leaves influences the consumer taste and behaviour.

2. Geographic Influence:

The behaviour of consumer also depends upon their geographical location. Consumer
behaviour varies from one part of country to another part of the country. Villagers of
south India are quicker in accepting technology than villagers of other parts of country.

3. Influence of Occupation:

There are various types of occupation in villages also. It includes landlords, labours,
farmers, etc., so the consumer behaviour varies according to their occupation.

4. Brand preference and loyalty:

People in Rural area give priority to loyalty attached to product rather than its brand.
They give importance for the loyalty of the product.

5. Place of Purchase:

Companys need to access the influence of retailer on both consumers at village shops.