Module III: Rural Marketing

Marketing: Meaning, principles and practice. Rural marketing for Seed, Fertilizers, Pesticides
Machinery and other inputs of Rural Industry. Marketing Strategies for rural industry.

​Marketing: Meaning, principles and practice

Indian agricultural industry has been growing at a tremendous pace in the last few decades. The rural
areas are consuming a large number of industrial and urban manufactured products. The rural
agricultural production and consumption process plays a predominant role in developing the Indian
economy. This has designed a new way for understanding a new process called Rural Marketing. The
concept of rural marketing has to be distinguished from Agricultural marketing.

​ rime Minister Manmohan Singh recently talked about his vision for rural India: “My
P
vision of rural India is of a modern agrarian, industrial and services economy co-existing side by side,
where people can live in well-equipped villages and commute easily to work, be it on the farm or in
the non-farm economy. There is much that modern science and technology can do to realise this
vision. Rural incomes have to be increased. Rural infrastructure has to be improved. Rural health and
education needs have to be met. Employment opportunities have to be created in rural areas.”
Marketing is the process of identifying and satisfying customers needs and providing
them with adequate after sales service. Rural marketing is different from agricultural marketing which
signifies marketing of rural products to the urban consumer or institutional markets. Rural marketing
scientist’s also known as developmental marketing, as the process of rural marketing involves an urban
to rural activity which in turn is characterized by various peculiarities in terms of nature of market,
products and processes

So marketing practice for rural market has a big area in Indian rural market.

​DIFFERENCE BEETWEEN RURAL MARKETING AND CONSUMER MARKETING

Rural marketing differs from agricultural or consumer products marketing in terms of the nature of
transactions, which includes participants, products, modalities, norms and outcomes. The participants in
case of Rural Marketing would also be different they include input manufacturers, dealers, farmers,
opinion makers government agencies and traders. The existing approach to the rural markets has
viewed the markets as a homogeneous one but in practice there are significant buyers and user
differences across regions as well as within that require a differential treatment of the marketing
problems.

These differences could be in terms of the type of farmers, type of crops and other
agro-climatic conditions.
Rural marketing needs to combine concerns for profit with a concern for the society,
besides being titled towards profit. Rural market for agricultural inputs is a case of market pull and not
market push...

The importance of rural marketing can be understood from the fact that today modern
inputs i.e. diesel, electricity, fertilizers, pesticides, seeds account for as much as 70% of the total cash
costs and 23% of the total costs incurred by the farmers in the Green Revolution areas. Further the
percentages were higher at 81% and 38% for small; farmers owning 1.85 hectares of land.
Strategies or Practices for rural marketing

Rural marketing in India is not much developed there are many hindrances in the area of market,
product design and positioning, pricing, distribution and promotion. Companies need to understand
rural marketing in a broader manner not only to survive and grow in their business, but also a means to
the development of the rural economy. One has to have a strategic view of the rural markets so as to
know and understand the markets well Product usage is central to price, distribution, promotion,
branding, company image and more important farmer economics, thus any strategy in rural marketing
should be given due attention and importance by understanding the product.

​ 1- Client and Location specific promotion

Increasing specialization in the farming sector has marketers to this strategy. The marketer under this
strategy has to design location and carry out farmer specific promotional campaigns. Recommending the
use of the products at micro level would result in increasing productivity of the input and therefore
increasing the image and the sales of the product can raise the input demand for rural markets.

2- Joint or co-operative promotion

A personalized approach is required under this strategy of rural marketing. Under this approach there is
a greater scope for private sector and farmer organization to get into input supply and especially into
retail distribution, as it is a low risk activity.

3- Bundling of Inputs

In order to reap the benefits of, the economies of the scale a rural marketer has to resort to bundling of
inputs. ‘Bundling of Inputs’ is the process by which the marketer would provide a bundle of products to
the retailer so that he can meet the requirements of the farmers in one place. The village level
co-operatives and other agencies can play an effective role in the distribution of inputs. Establishing
linkages with financial agencies and other input sellers can help greatly as the bank credit plays an
important role by making the purchase possible.

4- Management of Demand

A marketer apart from maintaining good supplies in terms of quality and quantity also has to focus on
the demand side of the operations also. Continuous market research should be undertaken to assess the
buyer’s needs and problems at various levels so that continuous improvements and innovations can be
undertaken for a sustainable market performance.
5- Developmental Marketing

Developmental marketing refers to taking up marketing programmes keeping the development

objective in mind and using various managerial and other inputs of marketing to achieve these
objectives. A prerequisite for developmental marketing is Development Market Research, which can be
termed as the application of marketing research tools and techniques to the problems of development.
The research tools of marketing like product testing tests marketing, concept testing and media testing
or message test and focus groups are used in this work.

6- Media
 Rural marketing uses both kinds of media i.e. the traditional media as well as the modern media. The
traditional media includes puppetry, drama, folk theatre e.g. tamsaha, nautanki, street plays, folk songs,
wall paintings and proverbs. Marketer uses traditional media because it more accessible, personalized,
familiar and carries a high potential for change. The modern media includes the print media, the
television and the radio

7- USP’S (Unique Selling Propositions)

Rural marketers today are trying to emphasize a point of difference in their products that cannot be
matched by competitors. Under this approach the communicator figures out what to say to the target
audience so as to produce the desired results.
Some of the USP’s of the companies engaged in rural marketing are given below.

● Mahindra Tractors- Mera Desh Mera Gaon

● Tafe Tractors-Grameen Bharat ki Dhadkan, Tafe ka Massey Ferguson
● Swaraj Tractors- Pragati aur Khush-hali ke liye
● Escorts- Nayi technique ke sath, Bharosa Jeevan bhar Ka
● Eicher-Ghazab ki takat, ghazab ki shaan
● Sun Seeds- Grow with Sun
● ICI Karate Insecticide- Keedon ka Maha-kaal, Phasal Ka Pehredaar.
● Pesticide India- Desh ke liye Phasal Anek, Keedon ke Naash ke liye Foratox Sirf Ek.
Thus the companies use different formats to influence the target audience in order to
produce the desired results.

8- Extension Services

We now that there are several limitations of rural marketing in the Indian context, this leads to the need
for extension services to supplement the efforts of the firms engaged in rural marketing. The various
extension services could include credit facilities, competitions among the farmers, educating the farmers
regarding the appropriate agricultural practices, etc. Extension services would thus play a crucial role in
the development of rural marketing in India.

9- Ethics in Business

Ethics occupies a special place in rural marketing, and has been at the heart of all the transactions
whether cash or kind. In order to make a lasting impact on the rural clients, the firms need to built a
trustful relationship and that is possible by no other means but only by ethical conduct.

​10- Partnership for sustainability

There is a need to build partnership with rural clients for a sustainable business relationship and
sustainable marketing relationship. There should be a long-term relationship between the firms and
farmers for agro business projects, which are risky, long drawn and technical in nature. Partnership is
required in rural marketing business so as to award distributorship to local groups and individuals
employing locals, staff secondment in local projects, preferential purchase of local product, training to
locals and discount on product supplies in some areas. Rural marketing firms can work with N.G.O’s also
because N.G.O’s have better linkages and understanding of the local communities and their problems.
​11- Effectiveness of Communication

An important tool to reach out to the rural audience is through effective communication. “A rural
consumer is brand loyal and understands symbols better. This also makes it easy to sell look – alike”,
says Mr. R.V Rajan, CMD, and Anugrah Madison Advertising. The rural audience has matured enough to
understand the communication developed for the urban markets, especially with reference to FMCG
products. Television has been a major effective communication system for rural mass and, as a result,
companies should identify themselves with their advertisements. Advertisements touching the emotions
of the rural folks.

​IMPULSES FOR RURAL MARKETING

There are many reasons that have urged the companies to enter the untouched territory of Rural India.
Some of the attractions are discussed below.

​1. Large Population

The rural Indian population is large and its growth rate is also high. Over 70% India’s one billion Plus
population potentiality rural India has to bring the much needed volumes and help the FMCG companies
to bank upon the volume driven growth.ves in around 627,000 villages in rural areas. This simply shows
the great.

AREA HOUSEHOLD PAPULATION

RURAL

72.6% 74.6%

URBAN 27.4% 25.4%

ALL-INDIA 100% 100%

​PERCENTAGE DITRIBUTION OF HOUSE-HOLD $ INCOME

​2. Rising Rural Prosperity-

India is now seeing a dramatic shift towards prosperity in rural households. To drive home the Potential
of rural India just consider some of these impressive facts about the rural sector. As per the National
Council for Applied Economic Research (NCAER) study, there are as many ‘middle income and above’
households in the rural areas as there are in the urban areas. There are almost twice as many ‘lower
middle income’ households in rural areas as in the urban areas.

​Distribution of people income-wise

Income
group 2001 ——— 2002 2006 ——- 2007

Total
RURAL RURAL
NO. % Total NO. %

1.48

High 0.41 27.7 2.96 0.7 23.6

69.18

Middle 4.83 91.42 90.25 50.85 66.3

32.29

Low 29.52 91.42 20.41 95.8 95.7

102.95

Total 74.76 72.6 114.52 80.96 70.7

3. Growth in Market-

The purchasing power in rural India is on steady rise and it has resulted in the growth of the rural
market. The market has been growing at 3-4% per annum adding more than one million new consumers
every year and now accounts for close to 50% of volume consumption of FMCG. The growth rates of lot
of FMCG are higher in rural markets than urban markets

​4- Impact of Globalization-

 The impact of globalization will be felt in rural India as much as in urban. But it will be slow. It will have
its impact on target groups like farmers, youth and women. Farmers, today ‘keep in touch’ with the
latest information and maximize both ends. Animal feed producers no longer look at Andhra Pradesh or
Karnataka. They keep their cell phones constantly connected to global markets. Surely, price movements
and products’ availability in the international market place seem to drive their local business strategies.
On youth its impact is on knowledge and information and while on women it still depends on the
socio-economic aspect. The marketers who understand the rural consumer and fine tune their strategy
are sure to reap benefits in the coming mainly years. In fact, the leadership in any product or Service is
linked to leadership in the rural India except for few lifestyle-based products, which depend on urban
India

So there are so many reasons which impulses a company for marketing practice in rural
market.

​MARKET DEVELOPMENT IN RURAL MARKET

The rural market development can be easily understand by the following diagram

CURRENT PRODUCT

NEW PRODUCT

CURRENT MARKET

NEW PENETRATION PRODUCT DEVELOPMENT

NEW MARKET

MARKET DEVELOPMENT PRODUCT DIVERSIFICATION

 Market development is a process in which marketer use strategies according to market and
product position.these are-

Current product and current market-

If the product is currently exist in the current market then there is a need of new penetration of the
market for the product.

CURRENT PRODUCT AND NEW MARKET-

If the product is currently exist but the market is new then there is a need of developed the market new
for the currently existing product.

​NEW PRODUCTAND CURRENT MARKET-

If there is a current market but the product is new then there is a need of product development for
current market.

​NEW PRODUCT AND NEW MARKET-

If the product and market both are new in the .then there is a need of product diversification for
product development.

The above discussion shows product development for rural market technique.

​PROS AND CONS OF MARKET DEVELOPENT

The pros and cons in rural market development are following-

​PROS-

​1–NEW MARKET SEGMENT –

Rural market, a new market segment for the companies because a big part of Indian population live in
rural areas which provide a new market segment for the product. In rural areas there are many
customers who are unaware about the product.

​ ​The sector is excited about the rural population whose incomes are rising and the
lifestyles are changing. There are as many middle income households in the rural areas as there are in
the urban.

So there is a new market segment for companies separate from urban market.

2-CUSTOMER SATISFACTION-
 Obviously customer satisfaction is the key of marketing. A company makes such type of product which
can satisfy the need of customer so that Customer can add value. Company must present product
according to need of the customer

Godrej Consumer Products Ltd (GCPL) did something that it hadn’t done before; it introduced
smaller pack sizes of some of its soaps and put them on the market for Rs 5. And FMCG giant HLL has
just launched a green variant of Lifebuoy soap

So by satisfying customer need according to their requirement give more satisfaction to

customer. This can help in market development.

​CONS—

1—LACK OF EXPERIENCE-

There are lack of experience in rural customer .they don’t usually try new thing.

They are brand loyal. They want to spend money on well established things. This shows lack of
experience in rural customer ​

​2-LIMTED UNDERSTANDING OF THE NEW CUSTOMER-

Rural market customers have limited understanding about the product which is a big obstacle in rural
marketing. Due to which Marketer face many difficulties for market development in rural areas. They
are lase practical in comparison to urban customer.

​3-NEW DISTRIBUTION SYSTEN-

Whenever a new product going to launch in rural sector. So there is a need of new distribution system
for villagers. Rural customers have a strong bond with retailer .so for establishing in rural sector there is
a need of new distribution system​.

​CHELLENGE IN MARKETING PRCTICE IN RURAL MARKE THE​ some Challenge in marketing practice in
rural market is following.

​1- Segment, target and position his offerings​-

The population is dispersed to such an extent that 90% of the rural population is concentrated in
villages with population of less than 2000. So the geographical spread is not as homogeneous as it is
with the urban areas owing to vast differences culture and education levels. Also with agriculture being
the main business of rural sector the purchasing power of rural consumer is highly unpredictable which
can lead to high variations in demand patterns

​2-LIMTED UNDER STANDING OF THE NEW CUSTOMER-

This is also a challenge in marketing practice in rural market. Rural customer are not very much aware
about the product they have a fake idea about the product. They have a limited understanding about
the product.

​3-POOR TRANSPORTATION AVAILABILTY-

 Poor transportation is also a challenge in rural marketing in India because there is many villages the
road is not proper. So marketer face many difficulty for proper transactions of goods

​4-RETAILORS IN RURAL TRADE-

Rural consumer’s brand choices are greatly restricted and this is where the retailer comes into the
picture. The rural customer generally goes to the same retailer to buy goods. Naturally there’s a very
strong bonding in terms of trust between the two. Also with the low education levels of rural sector the
rural buying behaviour is such that the consumer doesn’t ask for the things explicitly by brand but like
“laal wala sabun dena” or “paanch rupey waali chai dena”. Now in such a scenario the brand becomes
subservient to the retailer and he pushes whatever brand fetches him the to study the retailer greatest
returns. Thus, as there is a need to understand the rural consumer, similarly need is there as he is a chief
influencer in the buying decision

THE SOLUTION​ ​ ARE-•

1-Focus on customer retention through quality services and value

Added follow-up.

2-Delegate some administrative tasks to the local organization.

3-Week-ends and holidays in village community hall.

4-​ ​Information meeting with saving society.

5-​ ​Low priced introductory service with high value-added.

6-​ ​Gradual payment mechanisms such as installments.

RUPESS 2500.00

1 2 3 4 5

500 500 500 500 500

INSTALLMENT OFFERING
ORIGINAL OFFERING

7-Rural centric marketing promotion

8- Regional Marketing Approach

9-Design specific products for the rural economy. The most remarkable example in this context is the
launch of sachets which has transformed the rural market considerably as packaging in smaller units and
lesser-priced packs increases the product’s affordability. Also companies like HLL and Nestle who have
adopted this strategy have benefited tremendously. Another case is of Britannia with its Tiger brand of
low priced and conveniently packaged biscuits becoming a great

Success story in rural markets

“Rural marketing in India has still a long way to go, rural marketers have to understand the fact that
rural marketing in India has a tremendous potential in our country. Rural marketers should understand
this fact and try to tap the huge untapped potential in our country’’

There is huge potential and definitely there is lot of money in rural India but the smart
thing would be to weigh in the roadblocks as carefully as possible. The companies entering rural market
must do so for strategic reasons and not for tactical gains as rural consumer is still a closed book and it is
only through unwavering to tap the rural markets commitment that the companies can make a dent in
the market. Ultimately the winner would be ideas the one with the required resources like time and
money and also with the much needed innovative.

“Improving the lives of the billions of people at theBottom of the economic pyramid is a noble
Endeavour.

​It can also be a lucrative one” ​ C.K .Prahlad

This was something about the rural marketing practices , which can be said is similar form the point of
view of Africa also , as being the developing and agricultural based .

Principles of Rural Marketing:

The spectacular economic growth of ​India’s tier one cities,​ like Delhi, Mumbai and Bangalore
has stolen the limelight from the quieter economic transaction going in the country side. As
recently 1995 90% of India’s rural population was considered deprived, according to McKinsey
Global Institute definition. By 2005, that fraction had fallen to 65% and it is estimated that by
2005, it may be less than 30%. Not surprisingly the consumption is rising too, and India is
increasing also digitally connected
Rural consumer will account for nearly 2/5​th​ of the total consumption in the year 2025. And more
than half in some important categories such as food, beverages and tobacco. Many rural
consumer travels to town and cities to make purchase
And there are real advantages to doing business in rural India, including for multinational. There
is typically less competition than urban areas, so rural it was analysed by the researchers that the
top 5 or six brands dominate the rural India, as a result sometimes we can see that the prices are
higher and more stable than elsewhere in the other markets.
With all this in mind the McKinsey Global Institute defines four of the key principle that the
companies must follow if they want to succeed in the rural markets and attain that crackling
position which will make them the Need Creator, The principles goes as under:
● Shape retail channels to maintain low cost to serve
● Become the preffered brand
● Develop the marketing approach suited for rural customers
● Pick your spots

1. ​Shape retail channels to maintain low cost to serve​: The key is to work with local retailers
to devise ways to supply local markets efficiently—and inexpensively.​ ​Reducing minimum order
quantities, for example, can help local stores cut inventory costs, making it possible for them to
stock additional brands. Innovative approaches to logistics can cut service costs. Farmers make
frequent visits to regional market centres (mandis) in order to sell their produce, for example.
Their vehicles can provide a low-cost transport solution to bring goods back to their home
village. One major consumer-goods company has systematically networked with rural
wholesalers, who purchase products and then take care of supplying smaller villages
themselves—sometimes by bicycle or even rickshaw. This has helped the company to extend its
reach, at little extra cost, to tens of thousands of villages not served by roads.
Service companies, too, can re-think delivery methods. One Indian bank has created a
hub-and-spoke structure with full-service bank branches being the hubs and Internet kiosks
serving as spokes at the village level. (The automated kiosk is an example of how technology can
be harnessed to create low-cost operations for rural consumers.) Appropriately enough, a
motorcycle manufacturer used a similar strategy to deliver after- purchase service. The company
named a single dealer to be the hub of an entire district; that dealer then appointed sub- dealers
(the “spokes”).​ ​The most advanced companies use geographical analysis tools to identify the
white spaces on the maps that their networks do not reach, then take deliberate steps to fill those
gaps. Companies can also identify specific pockets of demand being filled in nearby urban
centres, then open retail counters in villages to coax rural consumers to buy these goods closer to
home.
2. ​Become the preferred brand:​ Creating good relationships with local retailers is crucial to
win in rural markets. To do this, companies can give more of the value chain to rural retailers,
perhaps by allowing some of them to handle the local transportation of goods. Alternatively,
some companies have collaborated to give local retailers a more appealing bundle of products
and services with which to tempt their customers. A major consumer-goods company, for
example, tied up with a leading telecom company to ensure that retailers have other products to
sell as well and to earn a minimum profitability given the strong cascading effect of a brand’s
share in urban centres on the nearby rural areas, it is crucial to have a strong presence in the
entire cluster. Successful companies do this by creating strong distributors or dealers in nearby
urban areas. Automotive companies may give regional dealers in smaller town’s exclusive access
to the regional sales and service business, for example, allowing them to build a local network
while holding down inventory and equipment costs.
3​. Develop marketing approaches suited for rural customers​: In important ways, rural
customers are different. For a start, credit is more limited. Then there is the fact that almost half
of rural income comes directly, and another 10% to 30% indirectly, from agriculture. Rural
customers also rely more heavily on the advice of family members or influential neighbours on
what to buy. But they are inspirational, too; they like brands and trade up as their incomes
rise—and because there are fewer brands sold in rural areas, being the most valued one carries an
extra premium.
The most effective rural campaigns focus on creating absolute demand, not simply winning
market share. A toothpaste company did this by providing samples to schools and colleges,
effectively targeting the youth who are often an important part of decision-making process in
rural areas. It obviously makes sense to time marketing campaigns to coincide with the end of
the local harvest, when purchasing power is highest.
Finally, working at the village level requires connecting with the community. This does not have
to be expensive. Putting up advertising at major junctions; painting murals at gathering places
like wells and water holes; running product demonstrations at local gatherings; and publicizing
the use of products by high- profile or influential individuals—these are all good, inexpensive
ways to build stature and awareness. To address the lack of credit in many rural areas, companies
can connect with micro- finance groups; down the line, it is possible that these and similar
groups can also become product distributors.
4. ​Pick your spots:​ The companies with the best rural networks are pragmatic, patient and
strategic. They focus first on locations with the highest growth potential and the lowest cost to
serve, and then use these as a base from which to reach out into more remote locations. There are
more than 120,000 different rural settlements in southwest India, for example, but it’s not really
necessary to
Go into each and every pinpoint on a map. One building-products company found that 10% of
villages accounted for 90% of sales. Census and MGI data support that impression. Reaching
only those villages with electricity and 3,000 or more people— those that we prefer calling
“regional economic centres” and “able villages”—will take companies a long way toward
creating a useful footprint in rural India
Practices in rural marketing :
Indian agricultural industry has been growing at a tremendous pace in the last few decades. The rural areas are 
consuming a large number of industrial and urban manufactured products. The rural agricultural production and 
consumption process plays a predominant role in developing the Indian economy. This has designed a new way for 
understanding a new process called Rural Marketing. The concept of rural marketing has to be distinguished from 
Agricultural marketing. 

So marketing practice for rural market has a big area in Indian rural market. 

DIFFERENCE BEETWEEN RURAL MARKETING AND CONSUMER MARKETING 

 Rural marketing differs from agricultural or consumer products marketing in terms of the nature of transactions, 
which includes participants, products, modalities, norms and outcomes. The participants in case of Rural Marketing 
would also be different they include input manufacturers, dealers, farmers, opinion makers government agencies 
and traders. The existing approach to the rural markets has viewed the markets as a homogeneous one but in 
practice there are significant buyers and user differences across regions as well as within that require a differential 
treatment of the marketing problems.  These differences could be in terms of the type of farmers, type of crops and 
other agro-climatic conditions. 
 Rural marketing needs to combine concerns for profit with a concern for the society, besides being titled towards 
profit. Rural market for agricultural inputs is a case of market pull and not market push.. 
      
                                ​Strategies for rural marketing 

 Rural marketing in India is not much developed there are many hindrances in the area of market, product design 
and positioning, pricing, distribution and promotion. Companies need to understand rural marketing in a broader 
manner not only to survive and grow in their business, but also a means to the development of the rural economy. 
One has to have a strategic view of the rural markets so as to know and understand the markets well Product usage 
is central to price, distribution, promotion, branding, company image and more important farmer economics, thus 
any strategy in rural marketing should be given due attention and importance by understanding the product. 

 ​          1-          Client and Location specific promotion 

 Increasing specialization in the farming sector has marketers to this strategy. The marketer under this strategy has 
to design location and carry out farmer specific promotional campaigns. Recommending the use of the products at 
micro level would result in increasing productivity of the input and therefore increasing the image and the sales of 
the product can raise the input demand for rural markets. 

   2-     Joint or co-operative promotion 

 A personalized approach is required under this strategy of rural marketing. Under this approach there is a greater 
scope for private sector and farmer organization to get into input supply and especially into retail distribution, as it is 
a low risk activity. 
     3-           Bundling of Inputs 
In order to reap the benefits of, the economies of the scale a rural marketer has to resort to bundling of inputs. 
‘Bundling of Inputs’ is the process by which the marketer would provide a bundle of products to the retailer so that 
he can meet the requirements of the farmers in one place. The village level co-operatives and other agencies can 
play an effective role in the distribution of inputs. Establishing linkages with financial agencies and other input sellers 
can help greatly as the bank credit plays an important role by making the purchase possible. 

           4-             Management of Demand 

 A marketer apart from maintaining good supplies in terms of quality and quantity also has to focus on the demand 
side of the operations also. Continuous market research should be undertaken to assess the buyer’s needs and 
problems at various levels so that continuous improvements and innovations can be undertaken for a sustainable 
market performance. 
         5-                Developmental Marketing 
 Developmental marketing refers to taking up marketing programmes keeping the development objective in mind 
and using various managerial and other inputs of marketing to achieve these objectives. A prerequisite for 
developmental marketing is Development Market Research, which can be termed as the application of marketing 
research tools and techniques to the problems of development. The research tools of marketing like product testing 
tests marketing, concept testing and media testing or message test and focus groups are used in this work. 

       6-                   Media 
 Rural marketing uses both kinds of media i.e. the traditional media as well as the modern media. The traditional 
media includes puppetry, drama, folk theatre e.g. tamsaha, nautanki, street plays, folk songs, wall paintings and 
proverbs. Marketer uses traditional media because it more accessible, personalized, familiar and carries a high 
potential for change. The modern media includes the print media, the television and the radio 

      7-                 USP’S (Unique Selling Propositions) 

 Rural marketers today are trying to emphasize a point of difference in their products that cannot be matched by 
competitors. Under this approach the communicator figures out what to say to the target audience so as to produce 
the desired results. 
Some of the USP’s of the companies engaged in rural marketing are given below. 
               Mahindra Tractors- Mera Desh Mera Gaon 
        2.   Tafe Tractors-Grameen Bharat ki Dhadkan, Tafe ka Massey Ferguson 
                  3.       Swaraj Tractors- Pragati aur Khush-hali ke liye 
                  4.    Escorts- Nayi technique ke sath, Bharosa Jeevan bhar Ka 
                           5.           Eicher-Ghazab ki takat, ghazab ki shaan 
                                     6.         Sun Seeds- Grow with Sun 
        7.      ICI Karate Insecticide- Keedon ka Maha-kaal, Phasal Ka Pehredaar. 
                 8.      Pesticide India- Desh ke liye Phasal Anek, Keedon ke Naash ke liye Foratox Sirf Ek. 
                 Thus the companies use different formats to influence the target audience in order to produce the desired 
results. 

   8-                 Extension Services 
We now that there are several limitations of rural marketing in the Indian context, this leads to the need for extension 
services to supplement the efforts of the firms engaged in rural marketing. The various extension services could 
include credit facilities, competitions among the farmers, educating the farmers regarding the appropriate 
agricultural practices, etc. Extension services would thus play a crucial role in the development of rural marketing in 
India. 

     9-                    Ethics in Business 

Ethics occupies a special place in rural marketing, and has been at the heart of all the transactions whether cash or 
kind. In order to make a lasting impact on the rural clients, the firms need to built a trustful relationship and that is 
possible by no other means but only by ethical conduct. 

       ​10-                      Partnership for sustainability 

There is a need to build partnership with rural clients for a sustainable business relationship and sustainable 
marketing relationship. There should be a long-term relationship between the firms and farmers for agro business 
projects, which are risky, long drawn and technical in nature. Partnership is required in rural marketing business so 
as to award distributorship to local groups and individuals employing locals, staff secondment in local projects, 
preferential purchase of local product, training to locals and discount on product supplies in some areas. Rural 
marketing firms can work with N.G.O’s also because N.G.O’s have better linkages and understanding of the local 
communities and their problems. 

 ​11-               Effectiveness of Communication 

 An important tool to reach out to the rural audience is through effective communication. “A rural consumer is brand 
loyal and understands symbols better. This also makes it easy to sell look – alike”, says Mr. R.V Rajan, CMD, 
Anugrah Madison Advertising. The rural audience has matured enough to understand the communication developed 
for the urban markets, especially with reference to FMCG products. Television has been a major effective 
communication system for rural mass and, as a result, companies should identify themselves with their 
advertisements. Advertisements touching the emotions of the rural folks.  

 ​IMPULSES FOR RURAL MARKETING 

 There are many reasons that have urged the companies to enter the untouched territory of Rural India. Some of the 
attractions are discussed below. 

 ​1. Large Population 

  

The rural Indian population is large and its growth rate is also high. Over 70% India’s one billion Plus population 
potentiality rural India has to bring the much needed volumes and help the FMCG companies to bank upon the 
volume driven growth.ves in around 627,000 villages in rural areas. This simply shows the great. 
  

  

 ​PERCENTAGE DITRIBUTION OF HOUSE-HOLD $ INCOME 

 ​2. Rising Rural Prosperity- 
 India is now seeing a dramatic shift towards prosperity in rural households. To drive home the Potential of rural 
India just consider some of these impressive facts about the rural sector. As per the National Council for Applied 
Economic Research (NCAER) study, there are as many ‘middle income and above’ households in the rural areas as 
there are in the urban areas. There are almost twice as many ‘lower middle income’ households in rural areas as in 
the urban areas. 

 ​Distribution of people income-wise 

3. Growth in Market- 
 The purchasing power in rural India is on steady rise and it has resulted in the growth of the rural market. The 
market has been growing at 3-4% per annum adding more than one million new consumers every year and now 
accounts for close to 50% of volume consumption of FMCG. The growth rates of lot of FMCG are higher in rural 
markets than urban markets 

 ​4- Impact of Globalization- 

 The impact of globalization will be felt in rural India as much as in urban. But it will be slow. It will have its impact on 
target groups like farmers, youth and women. Farmers, today ‘keep in touch’ with the latest information and 
maximize both ends. Animal feed producers no longer look at Andhra Pradesh or Karnataka. They keep their cell 
phones constantly connected to global markets. Surely, price movements and products’ availability in the 
international market place seem to drive their local business strategies. On youth its impact is on knowledge and 
information and while on women it still depends on the socio-economic aspect. The marketers who understand the 
rural consumer and fine tune their strategy are sure to reap benefits in the coming mainly years. In fact, the 
leadership in any product or Service is linked to leadership in the rural India except for few lifestyle-based products, 
which depend on urban India 

  

                            So there are so many reasons which impulses a company for marketing practice in rural market. 

 ​MARKET DEVELOPMENT IN RURAL MARKET 

 The rural market development can be easily understand by the following diagram 
 Market development is a process in which marketer use strategies according to market and product position.thease 
are- 

Current product and current market- 

 If the product is currently exist in the current market then there is a need of new penetration of the market for the 
product. 

CURRENT PRODUCT AND NEW MARKET- 

If the product is currently exist but the market is new then there is a need of developed the market new for the 
currently existing product. 

 ​NEW PRODUCTAND CURRENT MARKET- 

 If there is a current market but the product is new then there is a need of product development for current market. 

 ​NEW PRODUCT AND NEW MARKET- 

 If the product and market both are new in the .then there is a need of product diversification for product 
development. 

                    The above discussion shows product development for rural market technique. 

 ​PROS AND CONS OF MARKET DEVELOPENT 

 The pros and cons in rural market development are following- 

 ​PROS- 
 ​1–NEW MARKET SEGMENT – 
 Rural market, a new market segment for the companies because a big part of Indian population live in rural areas 
which provide a new market segment for the product. In rural areas there are many customers who are unaware 
about the product. 

 ​                         ​The sector is excited about the rural population whose incomes are rising and the lifestyles are 
changing. There are as many middle income households in the rural areas as there are in the urban. 
                             So there is a new market segment for companies separate from urban market. 
  

2-CUSTOMER SATISFACTION- 
 Obviously customer satisfaction is the key of marketing. A company makes such type of product which can satisfy 
the need of customer so that Customer can add value. Company must present product according to need of the 
customer 

              Godrej Consumer Products Ltd (GCPL) did something that it hadn’t done before; it introduced smaller pack 
sizes of some of its soaps and put them on the market for Rs 5. And FMCG giant HLL has just launched a green 
variant of Lifebuoy soap  

              So by satisfying customer need according to their requirement give more satisfaction to customer. This can 
help in market development.  

 ​CONS— 
1—LACK OF EXPERIENCE- 
There are lack of experience in rural customer .they don’t usually try new thing. 

They are brand loyal. They want to spend money on well established things. This shows lack of experience in rural 
customer                           ​  
 ​2-LIMTED UNDERSTANDING OF THE NEW CUSTOMER- 
Rural market customers have limited understanding about the product which is a big obstacle in rural marketing. 
Due to which Marketer face many difficulties for market development in rural areas. They are lase practical in 
comparison to urban customer. 

 ​3-NEW DISTRIBUTION SYSTEN- 

 Whenever a new product going to launch in rural sector. So there is a need of new distribution system for villagers. 
Rural customers have a strong bond with retailer .so for establishing in rural sector there is a need of new 
distribution system​. 
 ​CHELLENGE IN MARKETING PRCTICE IN RURAL MARKE  ​THE some Challenge in marketing practice in rural 
market is following. 
 ​1- Segment, target and position his offerings​– 
 The population is dispersed to such an extent that 90% of the rural population is concentrated in villages with 
population of less than 2000. So the geographical spread is not as homogeneous as it is with the urban areas owing 
to vast differences culture and education levels. Also with agriculture being the main business of rural sector the 
purchasing power of rural consumer is highly unpredictable which can lead to high variations in demand patterns 

 ​2-LIMTED UNDER STANDING OF THE NEW CUSTOMER- 

 This is also a challenge in marketing practice in rural market. Rural customer are not very much aware about the 
product they have a fake idea about the product. They have a limited understanding about the product. 

 ​3-POOR TRANSPORTATION AVAILABILTY- 

 Poor transportation is also a challenge in rural marketing in India because there are many villages the road is not 
proper. So marketer face many difficulty for proper transactions of goods 

 ​4-RETAILORS IN RURAL TRADE- 

 Rural consumer’s brand choices are greatly restricted and this is where the retailer comes into the picture. The rural 
customer generally goes to the same retailer to buy goods. Naturally there’s a very strong bonding in terms of trust 
between the two. Also with the low education levels of rural sector the rural buying behavior is such that the 
consumer doesn’t ask for the things explicitly by brand but like “laal wala sabun dena” or “paanch rupey waali chai 
dena”. Now in such a scenario the brand becomes subservient to the retailer and he pushes whatever brand fetches 
him the to study the retailer greatest returns. Thus, as there is a need to understand the rural consumer, similarly 
need is there as he is a chief influencer in the buying decision 

Conclusion: ​This is something about the principles of rural marketing that has lead to the
development in the rural arseas.
Rural marketing for Seed, Fertilizers, Pesticides Machinery and other inputs of Rural
Industry.

Output marketing is an aspect of agricultural marketing. A timely and adequate supply at fair
prices of farm inputs- chemical fertilizers, seeds, plant protection chemicals, farm equipments,
and machinery, labour, electricity, diesel oil etc. are of great importance in the production of
output. Having seen that agriculture and allied activities has become the mainstay in rural India,
agricultural inputs marketing has been a big business. With the advent of new technology in
agriculture, leading to commercialization and market orientation of farms, the farming system is
exposed to external economies in terms of procurement of inputs required for production and
marketing the agricultural production. The importance of an efficient marketing system for farm
inputs may be judged by the following:
1. Farm inputs are produced in the country side. The effect of change in production method can,
therefore, be realized only if the farm inputs reach the markers in time at the least cost.
2. The use of modern inputs by farmers largely depends upon the spread of information about
them. The marketing system has to perform this function.
3. An efficient marketing system for farm inputs is essential for the development of the
inputs-manufacturing and supplying industries in the country. The agricultural inputs can be put
under two categories— consumable inputs and durable inputs.
Consumable inputs include
Fertilizers, pesticides, seeds etc., which are needed for farming, season after season.
​Durable inputs include
Tractors, motors, and pump sets,​ ​major farm machinery like harvesters, threshers etc. are
probably purchased once in lifetime
Some of the practice adopted by the manufacturers are described below with special reference to
fertilizers, seeds, chemical pesticides, and tractors.etc
FERTILIZERS: ​Fertilizer is decidedly the most important among all the inputs purchased by
the farmer for use in present day agriculture with a view to accelerating agriculture production. It
has been estimated that 53 per cent of the incremental food grain production in India during the
seventies was due to fertilizer use and its contribution is expected to have increased since then.
The demand for chemical fertilizers has increased with the evolution of new hybrid and dwarf
variety seeds, which are more responsive to chemical fertilizers.
CONSUMPTION OF FERTILIZERS IN NUTRIENT TERMS
Fertilizers 1997-98 1998-99 1999-2000 2000-01 2001-02
Nitrogenous 10,901 11,354 11,592 10,920 11,310
fertilizers
Phosphate 3,914 4,112 4,799 4,215 4,382
fertilizers
Potassic 1,373 1,332 1,678 1,567 1,667
fertilizers
All fertilizers 16,188 16,798 18,069 16,702 17,360
(NPK)
Source: Ministry of chemical and fertilizers.
The consumption of Nitrogen (N), Phosphates (P) and Potash (K) fertilizers is very high and
hence there is more marketing scope of these fertilizers. The consumption of these items is
increasing steadily and will continue to increase
There is lot of variation in state-wise consumption of fertilizers. States like Punjab, Haryana, TN,
and AP and UP have higher pattern of consumption, while states like Rajasthan, Assam and
Orissa have very low consumption. This means the marketing efforts yield results in few states
and is very difficult to sell in others
The consumption pattern of fertilizers has direct relevance to output pattern of crops i.e., states
consuming more nutrients are producing more grains. The marketing personnel have to spread
this theory to lesser fertilizer consuming states. The government agencies should do more
advertising in low consumption states to improve the productivity. This works as a backup for
the marketing team for fertilizers
Marketing mix for fertilizers:
Product
Not much manoeuvrability is possible for the manufacturers and marketing men in product
designing. At the most they can manufacture and market fertilizer mixtures which supply the
three nutrients in a proportion that is required by certain types of soils or crops or regions. These
are called paddy mixture of sugarcane mixture but the bags should clearly indicate the
proportions of the three nutrients, e.g. there could be a mixture as 20 : 20 : 20 which means the
mixture contains N, P and K in that proportion. Thus the product manoeuvrability is very limited
in the case of fertilizers
Price
Prices are totally controlled by the Government including the margins for channel members and
the companies may offer to their dealer’s volume discounts or off-season discounts at the most.
This is very closely watched by the government and any such rebates have to be borne by the
company as the subsidy will not cover such discounts.
Distribution
Here again, the government policies dictate the type, quantum and the area for distribution for
each manufacturer. Therefore, the manufacturers do not have much say in distribution. Most
fertilizer manufacturers use distribution networks to reach the fertilizers to end users.
Traditionally, the cooperatives and Agro Industries Corporations played a significant role, but of
late private trade has also taken to the fertilizer distribution in a big way because of attractive
margins. Earlier the proportion of fertilizer distributed between the cooperatives and private
trade was in the ratio of 60:40. Presently the trend is reversed and private trade accounts for 60
per cent, while cooperatives and ‘agro’ industries corporations for only 40 per cent. So mostly
the fertilizer marketing is through a dealer network which consists of cooperatives,
agro-industries corporations and private trade.
Promotion
For advertisements, the local language newspapers, magazines and TV media should be used to
inform on advantages of fertilizer uses. All India Radio (AIR) is very popular in villages and the
advertisements through AIR serve good purpose. Since the price of fertilizers is controlled by the
government, the next logical step is to create awareness amongst farmers about the use of
fertilizers. During TV and radio programmes meant for farmers, there should be advertisements
of fertilizers. In addition to these hoardings, writings on walls in villages help to make them
remember about various fertilizers varieties.
Defects in fertilizer marketing
Notwithstanding the fast expansion of sale points of fertilizers, the defects in the marketing
system of fertilizers are identified as follows:
1. The number of sale points is still inadequate. Although, at the country level, the average
cropped area per sale point is 714 hectares, farmers in hill and desert areas have to travel long
distance to buy the fertilizers.
2. Quite often, the supplies of the fertilizers at many sale points are not sufficient to meet the
demand for fertilizers in the area.
3. At many sale points, the fertilizers are not stocked at a time when farmers want to purchase.
For example, if the supplies to the sale point do not reach before the sowing of crops, the farmers
are not able to buy the fertilizer which they wish to use as basal dose.
4. Quite often, the makes and grades of the fertilizers which the farmers wish to buy are not
available at the nearest sale point.
5. When the supply is less than demand for fertilizers in an area, during a specified season, the
dealers charge a price higher than the statutory or normal price.
Suggestions for better fertilizer marketing
Suggestions for improving the fertilizer marketing system are as follows:
1. There is a need to increase the number of sale point’s especially in hilly, tribal and desert areas
so that the farmers have not to travel much distance to buy the fertilizer. This will save time and
also minimize the travel cost.
2. There is also a need to develop proper distribution arrangements involving a combination of
co-operatives, government and private agencies, depending on the potential of the area.
Restriction on the entry of marketing firms should be relaxed by making the fertilizer licensing
policy liberal so as to increase competition and efficiency in the fertilizer trade. Whenever,
co-operative institutions have not been successful, private dealers should be encouraged to
supplement the sales efforts. The basic objectives of the policy should be to make fertilizer
available to all the farmers at the time of need at reasonable prices rather than the strengthening
of the co-operative organization.
3. Packing material and technology for fertilizers should be improved to minimise the chances of
loss during transit and storage as also of pilferage from the bags.
4. Fertilizer should also be made available in smaller packets of 5 to 10 kg.
5. There is need to check adulteration and under weighment of bags. This can be done by
strengthening the quality control organization (drawing of samples at different stages of
marketing and laboratory testing) in addition to the use of good packing material

SEEDS​ The seed are a trigger point which sets in motion the process of technological change.
The returns to investment depend significantly on the quality of seed that is used in the
production of crops. The need of a suitable seed having desired characteristics such as high yield,
better grain quality and resistance to pests and diseases, is well recognized for increasing the
crop yields in any agro-climatic region. Although seed accounts for only a small part of the total
cultivation expenses, yet without good seed, the investment on fertilizers, water, pesticides and
other input does not pay the dividend.
Seed is the most essential input and hence not much of marketing effort is required. The
marketer may have to explain only if new varieties have come. Another explanation required is
the quantity required per acre and the quantum of crops expected from a particular variety. The
seed requirement is the marketing quantity and it gets sold with least efforts.
PRODUCTION AND DISTRIBUTION OF QUALITY SEEDS
Type Unit 1997-98 1998-99 1999- 2001-01 2001-02 2002-03
2000
Breeder Qtls 46.134 38.994 51.131 42.690 47.021 49.000
seed
Foundation ‘000 684 675 466 591 550 600
Seed qtls.
Certified ’000 7.879 8.497 8.798 8.627 9.100 9.300
quality qtls.
seed
distribution
Source: Ministry of Agriculture
At present many private corporate sectors are involved in seeds production and sales. There are
ITC, HLL, Thapar group, Pioneer Seeds and many other public limited companies. They are also
concentrating on developing and selling HYV seeds of food grains. In addition, few of them
develop seeds for fruits and vegetables of high quality. India is exporting seeds to Europe and the
USA and thus many progressive farmers have developed special farms
Marketing mix for seeds: ​In considering the needs of their customers, companies must think in
terms of the price of the product and the place where the farmer needs it, while making sure that
the existence of the product is known through effective promotion, these various components are
described below:
Product: ​Although many aspects of the product are not marketing responsibility. Marketing is
concerned with the product attribute. These basically includes quality, appetence and
performance of seeds to the farmers
Price: ​Price creates the sales value and therefore is an important determinant of sales. Price is
really determined by what farmer perceive as the value of sees of a particular variety. It is
important to understand how the farmer understand , how farmer value seeds as how much they
are willing to pay in relation to the profit .
Place: ​The place factor deals with various methods of transporting seeds​ ​and then making them
available the farmer. Getting the product to the right place depends upon distribution system. The
distribution system will depend upon the choice and need of the farmer and seeds
Promotion / Distribution: Promotion​ is concerned with influencing customers. Although the
cost is associated with the promotion or distribution strategy. Increased promotional activity may
be response to the competitor’s activity or launch of new product
Defects in Seeds marketing:
1. Distribution of assured quality seed is as critical as the production of such seeds.
2. Unfortunately, good quality seeds are out of reach of the majority of farmers, especially
small and marginal farmers mainly because of exorbitant prices of better seeds.
3. Issues ​related​ to seed have in recent ​years​ become increasingly more complex

Suggestions for better fertilizer marketing:

1. In order to solve this problem, the Government of India established the National Seeds
Corporation (NSC) in 1963 and the State Farmers Corporation of India (SFCI) in 1969.
Thirteen State Seed Corporations (SSCs) were also established to augment the supply of
improved seeds to the farmer
2. Indian seeds programme largely adheres to limited generation system for seed
multiplication. The system recognises three kinds of generation, namely breeder,
foundation and certified seeds. Breeder seed is the basic seed and first stage in seed
production. Foundation seed is the second stage in seed production chain and is the
progeny of breeder seed.

PESTICIDES/INSECTICIDES:​ ​The chemicals used for control of pests, diseases, rodents,

virus, etc. are broadly termed ‘agricultural chemicals’. The agricultural chemicals market can be
classified as follows:
a) Insecticides- about 80% of total chemicals used
b) Fungicides- about 10% of total chemicals used
c) Rodenticides
d) Herbicides and – about 5% of total chemicals used
e) Fumigants
These are poisonous materials and hence only licensed manufacturers are allowed to produce and
sell them. There are specifications and safety measures to be followed for all chemicals. The
producer has to write on labels and on separate sheets about the mixing pattern (with water or
other material), usage method, and safety factors so that only the right quality and quantity with
the right method is applied. Excess dosage could be harmful to the crops and even to the cattle.
Nearly 50 per cent of the sale points for agro-chemicals are concentrated in four of five states
viz., Andhra Pradesh, Uttar Pradesh, Gujarat, Tamil Nadu and West Bengal. As in the case of
fertilizers, the consumption of agro-chemicals is also concentrated in certain states. This is, of
course dictated by the crops grown and their susceptibility to pests and diseases e.g. cotton and
paddy alone account for nearly 65 per cent of the agro-chemicals consumption. The consumption
of agricultural chemicals varies widely across different states.
In India, the agro-chemical consumption is dependent upon several factors— irrigation facilities,
types of crops grown, concentration of plantation crops, susceptibility of crops to different pests
and diseases. This can be explained by the fact that the irrigated area is substantial in the state,
dependence on paddy and commercial crops like sugarcane, tobacco and chillies, and intensity of
cropping. Thus the market for agro-chemicals is not uniform.
Though a crop like cotton occupies only 5 per cent of the total cultivated area, it accounts for 27
per cent of the total agro chemicals consumption which indicates its high susceptibility to pests
and disease. The cotton farmers use large quantities of pesticides/insecticides either to control the
pests and diseases after the attack or as a prophylactic measure to prevent the occurrence of pests
and diseases. Thus, the market for agro-chemicals depends heavily on the region and the crops
grown therein. Since there are no significant government controls as in the case of fertilizers, the
elements of marketing mix are very much under the control of the manufacturers and marketing
men of agro chemicals.

Marketing-mix for insecticides/pesticides.:

Product: ​The formulators are free to manufacture and market any combination or concentration
of insecticides or pesticides from the basic chemicals. They are also free to use any brand names.
For spraying of chemicals, the sprayer or applicators are required. Many farmers even don’t have
these applicators. They borrow from friends. Co-operatives give these applicators/sprayers on
hire​.
Price: ​Price of agro-chemicals is not governed by any of statute. The competition guides the
prices. Effectiveness of certain brands gets the advantage of premium pricing.
Promotion:​ Sales promotion of chemicals is on similar lines as that of fertilizers. This also
requires creating awareness of losses due to pests, rodent’s etc. village fairs, congregation for
festivals and election meetings are places to organize advertisements. Hoardings at prominent
places and in village roads and highways enable the rural people to remember the product.
Distribution:​ Chemicals should be made available when they are needed most. Sometimes crops
are affected by epidemic diseases and at that time right kind of pesticides should be available in
nearby places. Different chemicals required for different crops, duration of need, self life of
chemicals, method of dosage and usage are very important, storage of pesticides consumes lesser
space compared to fertilizers and hence traders can keep required stock for six months. Only
thing is that safety is to be taken into consideration as these are poisonous materials for humans
and livestock.
Defects in insecticides/pesticides marketing:
1. Despite what government agencies and corporations tell you, pesticide products currently
on the market are not safe, even when they are used legally. There are many flaws in the
way that pesticides are registered and in our political process that allows corporations to
influence pesticide policy to allow the continued use of their poisonous products.
2. Even if we know that a pesticide causes severe health and environmental impacts,
including cancer and genetic damage, it may still be allowed for use.
3. Pesticides often contain inert ingredients in addition to the active ingredients that are
designed to kill the target pest. Unfortunately, the public is not provided information
about what inert ingredients are included in pesticides in most cases.
4. At least 382 of the chemicals that the U.S. EPA lists as inert ingredients were once or are
currently also registered as pesticide active ingredients. This means that the public is kept
in the dark about the contents of pesticide products that may be hazardous. Among the
ingredients that are listed as both inert and active ingredients are chloropicrin, which has
been linked to asthma and pulmonary edema, and chlorothanonil, a probable human
carcinogen

Suggestions for better insecticides/pesticides marketing:

The real solution to our pest and weed problems lies in non-toxic and cultural methods of
agriculture, not in pulling the pesticide trigger. Organically grown foods and sustainable methods
of pest control are key to our families’ health and the health of the environment​.
Better testing. ​State and federal agencies should require stricter independent testing, including
testing of synergistic effects of pesticides. Pesticides known or suspected of causing human
health problems should be phased out​.
Protect our children. ​Because our children are the most vulnerable population to pesticides,
pesticide use should be prohibited in places where our children live and play, including schools,
parks, and playgrounds. Require strict non-toxic pest management programs for such places.
Pesticide Use Reduction. ​Provide technical assistance to farmers, local governments,
businesses, and homeowners on non-toxic alternatives to pesticide use. This includes alternatives
to nuisance spraying for mosquitoes and controlling West Nile virus and other pest problems.
Prohibit pollution of our water and poisoning of our communities​. Ensure that aerial
pesticide use does not pollute our waterways through strict rules governing spraying and buffer
zones that prevent the harmful effects of drift. Prohibit the use of pesticides for purely aesthetic
reasons. Prevent pesticide applications to water bodies, instead using non-chemical methods of
managing aquatic invasive weeds.
Right to know​. Provide free and universal notification to residents about pesticide use, including
who is using chemicals, where, when, how, what pesticides are being used, and why.
Protect workers. ​Provide protection to workers and farmers to prevent acute and chronic
pesticide poisoning​.
MACHINERY & OTHER INPUTS​: ​The country witnessed unprecedented growth in
agriculture which has helped India to graduate from hunger to self sufficiency in food grains by
increasing the food grain production from 51 million tonnes to 208 million tonnes, with surplus
for export. The technology back-up by agricultural scientists, in the form of “Green Revolution”
combined with industrial growth, positive policy support, liberal public funding for agricultural
research and development and dedicated work of farmers contributed to the phenomenal increase
in agricultural, animal and fish production. Application of engineering in agriculture was equally
appreciated by the farmers and to-day they feel proud to have improved machinery from Bakhars
to rotavators, Persian wheel to drip and micro-sprinkler systems, cone-dibblers to pneumatic
planters, sickles to combine harvesters, sieve to colour sorters, and, kolhus to solvent extraction
plants, and hand mills to roller flour mills, etc. The farmers are not afraid of hot/cold desert and
vagaries of weather as they have green houses and low tunnel plastic houses technology to grow
crops in any place at any time of the year. The growth in adoption of agricultural machinery in
the country has been possible due to their local manufacture. The manufacture of agricultural
machinery in India is under taken by village artisans, tiny units, small scale industries, organized
medium and large scale sector. Organized sectors manufacture sophisticated machinery such as
tractors, engines, milling and dairying equipment. Traditional hand tools and bullock drawn
implements are largely fabricated by village craftsmen (blacksmith and carpenters) and power
operated machinery by small-scale industries​.​ ​The use of farm machinery depends upon the farm
power sources available in the country for various tractive and stationary operations. Human and
animal power, the two ‘renewable energy’ or ‘ bio-energy’ sources, have traditionally been used
for various farm operations. The crops are protected from pests, diseases and from weeds,
through the application of chemicals. The application of these inputs is achieved through ‘human
power’ in traditional agriculture. Animate power contributed 60.37% of the total farm power in
1971-72 and mechanical and electrical together contributed only 39.63%.
Trends in use of farm power
Human power​ Digging, clod breaking, sowing, interculture, harvesting, threshing, cleaning, and
grading are performed by human power using traditional tools and implements. Improved tools
have also been developed and commercialized. The agricultural worker population in India
increased from 97.2 million in 1951 to 235.1 million in 2001
​ raught animal power​ Traditionally, draught animals have been used in India for field
D
operations, transport and agro-processing. There are about 79 percent small and marginal farmers
who have limited land holdings and resources. These farmers rely on draught animals and human
power for farm operations. Even to day, taking 2.5 ha as command area per animal pair, over
57% of the farming area is being commanded by draught animals. Field operations in hill regions
and some difficult terrains are being performed by human and animal power
Let us now have a look at one of the drastic change in the world of Machinery for the rural which
has given the farmer much response and that is :
Tractive power​ The tractors in India were introduced through importation. There were only
8,635 imported tractors in use in 1951. The local tractor production started in 1961-62 with 880
numbers. Similarly, the manufacture of power tillers started in 1961 with Japanese
collaborations. At one time 12 models of power tillers were licensed to be manufactured.
However, many of these units closed down or did not even start because of lack of their
suitability to Indian farming conditions, poor after-salesservice network, etc. presently only two
manufacturers are producing power tillers. Since the pace of production was slow, the
Government of India continued to allow limited import of tractors to meet the demand of the
farmers till 1974. While approving foreign collaborations, Government of India made it
mandatory that tractors to be allowed for manufacturing in India shall be tested under laboratory
and field conditions to ensure that they were suitable for Indian farming conditions. The Central
Farm Machinery Training and Testing Institute was mandated to test tractors, power tillers and
other farm machinery for the benefit of manufacturers and users. A batch testing scheme was
later introduced to enable manufacturers to continuously upgrade the technology and to
safeguard user interests. For this purpose, the Government of India fixed norms of specific fuel
consumption, noise, vibration, exhaust emission levels, ergonomics and safety measures, and
other performance norms. Since then growth in production, quality and performance of tractors
and other agricultural equipment
AGRICULTURAL TRACTORS​ The sale of Agricultural tractors and other farm equipment
has increased. To-day more than 250,000 tractors are manufactured every year by 13
manufacturers. These tractors are available in different horsepower ranges of less than 25 to
more than 55 horse power. The share of various HP tractors in the recent years has been as
follows. Different sizes of tractors are manufactured in India ranging from less than 25 HP to
more than 45 HP but most popular range is 31-35 HP
The country produces about 1.5 lakh tractors per annum, which are sold without much difficulty.
These tractors of different horsepowers-25 HP, 35 HP and above 35 HP are manufactured and
marketed by major companies like HMT. Escorts, Eicher, Massey Ferguson, International,
Punjab Tractors, etc. Since the cost involved in purchase of tractors and the implements is
substantial, the dependency is more on loans from the rural financial institutions. It has been
estimated that nearly 90 per cent of the tractors sales is based on the loans advanced by rural
financial institutions like state Land Development Banks and Commercial Banks. Since such
loans are treated as long term loans, the prospective buyer of the tractor should be able to offer
collateral security to the lending agency. Hence farmers with sizeable land holding alone can
afford to apply for loans which clearly segments for the agricultural machinery
The most important criteria which count in tractor purchase are-
1. Area of land holding.
2. Nature of land holding (irrigated/dry).
3. Types of crops grown and number of crops grown in a year.
4. Availability of loan.
5. Possibility of hiring out the services of the tractors to others.
6. Requirement of tractor for transport of produce to market and inputs to the farm.
From the marketing point of view the factors which count for successful sale are:
1. Loan availability from banks.
2. Personal selling: identification of potential tractor users and approaching them.
3. Trouble free service- less number of breakdowns.
4. Availability of spares for easy repairs.
5. After sales service.
6. Resale value of tractors.
7. Fuel efficiency.
Most manufacturers and marketing men get themselves registered with the lending agencies as
approved suppliers. As and when the farmer is sanctioned loans, the approved suppliers compete
among themselves to supply the tractor. The farmer in addition to his investment in tractor
(which is only a prime mover) has to invest in implements which can be hitched to the tractor
like disc ploughs, levelers, tailors, power sprayer, etc.
The farmers require advice with regard to the choice of appropriate horsepower of the tractor.
This would depend upon the type of soil, purpose for which the tractor is purchased and the load
it is expected to 1carry at the time of harvest. The marketing personnel should be in a position to
advice the farmers on these aspects.
Marketing Mix of Tractors and machinery and other inputs
Keeping in view the thought process of marketing mix in mind we can say that the tractors and
machinery has the following marketing mix :
Product : The tractor is used for pulling and pushing the machines or trailers , for plowing , tiling
. The tractor is a simple open vechile with two very large wheels on an axel below behind a
single single eat , the product should be such designed that should be of such comfort that will
suit all the above mentioned things
Place : Of India’s total geographical area of 329 million hectores as much as 166 million hectors
.While net sown area stand around 140-142 , the grossed crop area is 180-189 million hectors.
For farming activities there are no substitute to the tractors , while placing the ractor a point must
be embedded in mind that these tractors are not required every where around the villages , but
only where the desity of crop yield is more for rest it serve the purpose of Judgad only .North
Punjab , Hrayana , Uttar Pradesh along with West Gujrat and Maharashtra can be a good choice .
Distribuition : In order to make a perfect distribution stragety the company should first palce 150
dealers in palce that could directly persude the rural market unlike BIJARANG Tractors , and
then should hit the market with the local retailers
Defects in Tractors and Machine marketing:
1.Increase In Unemployment: The use of mechanized technology displaces labor and leads to
increase in farm unemployment in the country.
2.Problems Of Urbanization: The migration of labor from the mechanized farm sector to the
cities creates problems of urbanization
. 3.Social Disparity: Farm mechanization is basically capital intensive and has a big farmer bias.
It therefore, creates social disparity.
4.Diversion Of Capital: Farm mechanization diverts capital from non- agricultural sector of
agriculture where there is already abundant labor and the farming operation is labor intensive.
5.Cattle Population Surplus: Mechanization has rendered a large number of cattle population
surplus and unnecessary. There is unanimity of opinion that mechanical technology along with
other inputs increase agricultural productivity.
Suggestions for better tractors & machine marketing:
1. Brand success ​today​ means more than just having customers and owners, it means having
"believers." The power of social media is to help brands engage these believers and give
them tools to share their stories with others and amplify their voices.
2. Mahindra & Mahindra is the leading player in the industry. Monsoon season is a key
driver for sales of tractors. A series of good or bad monsoon can affect the sales. In recent
years the industry has registered a good growth in sales, both domestic as well as exports
, this can also be a part of concern for sales boost

Conclusion:​ This is all about the marketing strategies and the marketing of various agriculture
inputs, it is true that many strategies are made for the agriculture products i.e. the inputs, this
means the strategies are made by all, but in the real world the chances are fifty- fifty, so the
strategies should be such that is in the accordance with the market trend.
Marketing Strategies for rural industry

Rural Markets are defined as those segments of overall market of any ​economy​, which are distinct from
the other types of ​markets​ like ​stock market​ ,​commodity markets​ or Labour. Rural Markets constitute an
important segment of overall economy, for example, in the ​USA​, out of about 3000 counties, around
2000 counties are ​rural​, that is, non-urbanized, with population of 55 million. Typically, a rural market
will represent a community in a rural area with a population of 2500 to 30000.

Significance

In recent years, rural markets have acquired significance in countries like ​China​ and ​India​, as the overall
growth of the economy has resulted into substantial increase in the ​purchasing power​ of the rural
communities. On account of the ​green revolution​ in India, the rural areas are consuming a large quantity
of industrial and urban manufactured products. In this context, a special marketing strategy,
namely, ​rural marketing​ has taken shape. Sometimes, ​rural marketing​ is confused with ​agricultural
marketing​ – the later denotes marketing of produce of the rural areas to the urban consumers or
industrial consumers, whereas rural marketing involves delivering manufactured or processed inputs or
services to rural producers or consumers. Also, when we consider the scenario of India and China, there
is a picture that comes out, huge market for the developed products as well as the labour support. This
has led to the change in the mindset of the marketers to move to these parts of the world.

Also rural market is getting an importance because of the saturation of the urban market. As due to the
competition in the urban market, the market is more or so saturated as most of the capacity of the
purchasers have been targeted by the marketers. So the marketers are looking for extending their
product categories to an unexplored market i.e. the rural market. This has also led to the CSR activities
being done by the corporate to help the poor people attain some wealth to spend on their product
categories. Here we can think of HLL (now, HUL) initiatives in the rural India. One of such project is the
Project Shakti, which is not only helping their company attain some revenue but also helping the poor
women of the village to attain some money which is surely going to increase their purchasing power.
Also this will increase their brand loyalty as well as recognition in that area. Similarly we can think of the
ITC E-Chaupal, which is helping the poor farmers get all the information about the weather as well as the
market price of the food grains they are producing.In other ​view​ these activities are also helping the
companies increase their brand value. So as it is given above the significance of the rural market has
increased due to the saturation of the urban market as well as in such conditions the company which
will lead the way will be benefited as shown by the success of HUL and ITC initiatives.
 
Strategies

Dynamics of rural markets differ from other market types, and similarly rural marketing strategies are
also significantly different from the marketing strategies aimed at an ​urban​ or ​industrial​ consumer. This,
along with several other ​related​ issues, have been subject matter of intense discussions and debate in
countries like India and China and focus of even international symposia organized in these countries​[2]​.

Rural markets and rural marketing involve a ​number​ of strategies, which include:

● Client and location specific promotion

● Joint or cooperative promotion..

● Bundling of inputs

● Management of demand

● Developmental marketing

● Unique selling proposition (USP)

● Extension services

● Business ethics

● Partnership for sustainability