Factors contributing to the growth of rural marketing

1. New Employment Opportunities

The income from new employment and rural development efforts launched in the rural areas has increased the purchasing power among the rural people. Self-employment policy with the assistance from the bank has become a great success in the rural areas

2. Green Revolution

A technological breakthrough has taken place in Indian agriculture. Rural India derived considerable benefit from green revolution. Today, rural India generates 185 million tons of food grains per year and substantial output of various other agricultural products.

3. Expectation Revolution among Rural Masses

More than the green revolution, the revolution of ‘rising expectation’ of the rural people influenced the marketing environment of rural India. It brought about a powerful change in the environmental dynamics. It enlarged the desires as well as the awareness of the rural people.

4. Favorable Government Policies

As a part of the process of planned economic development, the government has been making concerted efforts towards rural development.

The massive investment in the rural India has generated new employment, new income and new purchasing power. In the recent years as a part of new farm policy, high support prices are offered for farm products. Various measures like tax exemption in backward areas, subsidy, concessions, incentives, assistances, literacy drive in rural areas has brought rapid growth of rural markets.

5. Literacy Growth

The literacy rate is on the increase in the rural areas. This brings about a social and cultural change in the buying behaviour of the rural consumer. They are exposed to mass media which create new demand for goods and services.

6. Growth in Income

The rise in the income resulting from the new farming strategy is adding meaning and substance to the growing aspirations of the rural people. Remittances from Indians working abroad have also made a sizeable contribution to the growing rural income and purchasing power.

7. Attraction for Higher Standard of Living

The rural consumers have been motivated to change their consumptions habits enjoy a higher standard of living by the growing awareness about better living and easy availability of information about the goods.

8. Marketing Efforts

Firms like Bajaj, HLL, etc., have started penetrating the rural market realizing the rising expectations and the demand revolution in the rural India.