M.COM SEMESTER - III (CBCS)
RURAL MARKETING
Most Important Question Bank for Current Exam
Module - I
Q.1. Describe
the scope of rural marketing.
ANS:
1.
Population:
According to
2011 Census rural population is 72% of total population and it is scattered
over a wide range of geographic area. That is 12% of the world population which
is not yet fully utilized.
2. Rising
Rural Prosperity:
Average
income level has unproved due to modern farming practices, contract farming
industrialization, migration to urban areas etc. There has been an overall
increase in economic activities because during the planned rural development
heavy outlay of resources on irrigation, fertilizers, agricultural equipment’s
and agro processing industry has been made. Saving habits in rural people also
has increased. This too contributes in higher purchasing power
3. Growth
in consumption:
There is a
growth in purchasing power of rural consumers. But, the average per capita
house hold expenditure is still low compared to urban spending
4. Change
in life style and Demands:
Life style
of rural consumer changed considerably. There has been increase in demand for
durables and non-durables like table fans, radios, mopeds, soaps, etc. by rural
consumers. This provides a ready market for the producers. Rural market is
expanding day after day.
5. Market
growth rate higher than urban:
The growth
rate of fast moving consumer goods [FMCG] market and durable market is high in
rural areas. The rural market share is more than 50% for products like cooking
oil, hair oil etc.
6. Life
cycle advantage:
The products
which have attained the maturity stage in urban market is still in growth stage
in rural market.
7.
Decision-making Units:
Women in
rural areas are beginning to make fast decisions for purchases. Studies reveal
that 72.3% decisions are taken jointly in a family. With education and mass
media, role of children in decision making is also changing
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