Question

Discuss the problems faced by rural markets

Answer 1

the rates are different the products are expire and unhygienic

Answer 2

Twelve problems faced in rural marketing are as follows: 1. Deprived people and deprived markets 2. Lack of communication facilities 3. Transport 4. Many languages and dialects 5. Dispersed markets 6. Low per capita Income 7. Low levels of literacy 8. Prevalence of spurious brands and seasonal demand 9. Different way of thinking 10. Warehousing problem 11. Problems in sales force management 12. Distribution problem.

1. Deprived people and deprived markets:

The number of people below the poverty line has not decreased in any appreciable manner. Thus, poor people and consequently underdevel­oped markets characterize rural markets. A vast majority of rural people is tradition bound, and they also face problems such as inconsistent electrical power, scarce infrastructure and unreliable telephone system, and politico-business associations that hinder development efforts.

2. Lack of communication facilities:

Even today, most villages in the country are inaccessible dur­ing the monsoons. A large number of villages in the country have no access to telephones. Other communication infrastructure is also highly underdeveloped.

3. Transport:

Many rural areas are not connected by rail transport. Many roads have been poorly surfaced and got severely damaged during monsoons. The use of bullock carts is inevitable even today. Camel carts are used in Rajasthan and Gujarat in both rural and urban sectors.

4. Many languages and dialects:

The languages and dialects vary from state to state, region to region and probably from district to district. Since messages have to be delivered in the local language, it is difficult for the marketers to design promotional strategies for each of these areas. Facilities such as phone, telegram and fax are less developed in villages adding to the communica­tion problems faced by the marketers.

5. Dispersed markets:

Rural population is scattered over a large land area. And it is almost impos­sible to ensure the availability of a brand all over the country. District fairs are periodic and occa­sional in nature. Manufacturers and retailers prefer such occasions, as they allow greater visibility and capture the attention of the target audience for larger spans of time. Advertising in such a highly heterogeneous market is also very expensive.

6. Low per capita Income:

The per capita income of rural people is low as compared to the urban people. Moreover, demand in rural markets depends on the agricultural situation, which in turn depends on the monsoons. Therefore, the demand is not stable or regular. Hence, the per-capita income is low in villages compared with urban areas.

7. Low levels of literacy:

The level of literacy is lower compared with urban areas. This again leads to a problem of communication in these rural areas. Print medium becomes ineffective and to an extent irrelevant, since its reach is poor.

8. Prevalence of spurious brands and seasonal demand:

For any branded product, there are a multitude of local variants, which are cheaper and hence more desirable. Also, due to illiteracy, the consumer can hardly make out a spurious brand from an original one. Rural consumers are cautious in buying and their decisions are slow, they generally give a product a trial and only after complete satisfaction they buy it again.




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