Socio Cultural Factors in Rural Mktg

Answer to Question no-1 a)

It was observed that the fruits of economic development have been enjoyed by the urban people. They are leading a better life in terms of literacy, sanitation, health facilities than their counterparts in rural areas. But the rural market is huge potential in India, as more than 70% of population lives in rural India. So as per the socio economic condition marketer has to plan differently for the rural market.

A rural market can be defined as any market that exists in a area where the population is less than 10, 000. The rural market in India is scattered and spread over a wide geographical area. Indian market is divided into urban and rural markets.
To quote management guru Peter Drucker

“The aim of marketing is to know and understand the customer so well that the product or service fits him and sell itself."

Socio economic classification, social class is not just determined by income. It is measured as a combination of occupation, income, education, wealth and other variables:
Socio Economic Classification in Urban is as follows 1. Unskilled/Skilled workers 2. Shop owners/Industrialists 3. Self-employed professionals 4. Clerical/salesman 5. Supervisory level 6. Junior level Officers/Executives 7. Senior level Officers/Executives
Socio Economic Classification in Rural market is different from urban market. The rural consumers are classified into the following groups based on their economic status: □ The Affluent Group: They are cash rich farmers and a very few in number. They have affordability but not form a demand base large enough for marketing firms to depend on. Wheat farmers in Punjab and rice merchants of Andhra Pradesh fall in this group. □ The Middle Class: This is one of the largest segments for manufactured goods and is fast expanding. Farmers cultivating sugar cane in UP and Karnataka fall in this category □ The Poor: This constitutes a large but purchasing power is less but strength is more. They receive the grants from government and reap the benefits of many such schemes and may move towards the middleclass. The farmers of Bihar and Orissa fall under this category.

Apart from the above there are certain other socio economic factors are there which makes rural market different from urban.
Low Income level
Income of rural people is lower as compared to urban people, as mostly these people depend upon agriculture. So the product should be design according to need of the rural people. For example when Clinic plus & Chik Shampoo was available in small sachets with affordable price it was widely accepted by rural people.
Low Literacy
There are not enough opportunities for education in rural areas. The literacy level is as low (36%) when compared to all- India average of 52%.
Seasonal Demand
Demand for goods in rural markets depends upon agricultural situation, as agriculture is the main source of income. Agriculture to a large extent depends upon monsoon and, therefore, the demand or buying capacity is not stable or regular.
Communication Problems
Facilities such as telephone, fax and telegram are rather poor in rural areas.
Traditional Life
Life in rural areas is still governed by customs and traditions and people do not easily adapt new practices. For example, even rich and educated class of farmers does not wear jeans or branded shoes. But still we are witnessing some change.
Buying Decisions
Rural consumers are cautious in buying and decisions are slow and delayed. They like to give a trial and only after being personally satisfied, do they buy the product.
Societies are bound by definitive norms being followed by set of the people. This norms dictate the ways and means of behaving , working addressing and conducting ourselves in society. In rural India these norms are strong and rigorously followed too. Violation of these norms can even lead to cast out of the society
Caste plays a key role in behaviors of community. In rural India, the upper caste and lower cast differences still continue and are considered an important facet of everyday life which is not seen in urban area.
There is a clear demarcation in the villages for house making, two areas , including natural resources such as drinking water and grazing land for cattle.
In urban limited physical space and pressure on limited available natural resources, interaction based on economic status and vocations rather than on basis of caste leads to an absence of such division
Looking at all the above socio economic factors marketer has to develop a different strategy for rural market. Finally to conclude
“Rural marketing is marketing to a rural ‘mindset’; not a rural market.”

Answer to Question no-1 b)

Culture is a system of shared values, beliefs and perceptions that influence the behavior of consumers.
Culture is the most basic elements that shape a person’s wants & behavior. Cultural factors have a significant impact on rural customer behaviour. Growing up, children learn basic values, perception and wants from the family and other important groups. In India there are so many cultures & sub cultures, which make the marketer’s job a tougher one.
Each culture contains “sub-cultures” – groups of people with share values. Sub-cultures can include different villages, paras, religions, castes, or groups of people sharing the same cultural values.
There is a belief among rural people that experience is more important than formal education and they respect salespersons who can offer practical solutions to their problems. Therefore, it is desirable that sales persons, especially those who have been brought up in cities are given a thorough training consisting of both theory and practical aspects of village life. The training will help these sales persons to align themselves with the market realities and settle down smoothly in their jobs.

Black colour is not accepted as good sign for any auspicious occasion in rural India. For example during marriage occasions bride and groom both are strictly follow it in their dressing during marriage.

Rural people are closely attached to the custom & tradition than their counterpart. Different social practices like different festivals, rituals, funerals, marriages etc are celebrated in different manner.

Social customs are socially accepted norms that have been in practice over a long time .In urban India due to due to course of time customs are fading away. Traditions are the long standing beliefs that are believed to be true in nature and often practiced in a ritualistic manner, without knowing the origin or questioning the need to do so. Rural people are staunch believers in traditions eg; washing hair and leaving open calls evil spirits.