M.COM SEMESTER – III (CBCS)

RURAL MARKETING

 Most Important Question Bank for Current Exam

Module – I

Q.2. Explain
the evolution of Rural Marketing.

ANS:

Part I
(Before 1960):

Rural
marketing referred to selling of rural products in rural and urban areas and
agricultural inputs in rural markets. It was treated as synonymous to
„agricultural marketing’. 4 Agricultural produces like food grains and
industrial inputs like cotton, oil seeds, sugarcane etc. occupied the central
place of discussion during this period. The supply-chain activities of firms
supplying agricultural inputs and of artisans in rural Rural Marketing areas
received secondary attention. The local marketing of products like bamboo
baskets, ropes, window and door frames, small agricultural tools like ploughs
by sellers like black smiths, carpenters, cobblers, and pot makers were
emphasised in general. This was totally an unorganized market where all banias
and mahajans (local business people) dominated this market.

Part II
(1960 to 1990):

In this era,
green revolution resulted from scientific farming and transferred many of the
poor villages into prosperous business centers. As a result, the demand for
agricultural inputs went up especially in terms of wheats and paddies. Better
irrigation facilities, soil testing, use of high yield variety seeds,
fertilizers, pesticides and deployment of machinery like powder tillers,
harvesters, threshers etc. changed the rural scenario. In this context,
marketing of agricultural inputs took the importance. Two separate areas of
activities had emerged- during this period „marketing of agricultural inputs’
and the conventional “Agricultural Marketing”. During this period, the
marketing of rural products received considerable attention in the general
marketing frame work. The formation of agencies like Khadi and Village
Industries Commission, Girijan Cooperative Societies APCO Fabrics, IFFCO,
KRIBHCO, etc., and also the special attention government had paid to promote
these products were responsible for this upsurge. Village industries flourished
and products like handicrafts, handloom textiles, soaps, safety matches,
crackers etc. hit the urban market on a large scale from rural areas.

Part III
(After Mid 1990s):

The products
which were not given attention so far during the two earlier phases were that
of marketing of household consumables and durables to the rural markets due to
obvious reasons. The economic conditions of the country were as such that the
rural people were not in a position to buy these kinds of products. Secondly,
our market was in a close shape and we never allowed companies (foreign) to
operate in Indian market. But we lifted the … and opened up economy,
consequently companies started flourishing in India. The small villages/hamlets
were widely scattered making reach difficult and expensive consequently. Rural
markets were seen an adjunct to urban market and conveniently ignored. However,
since 1990s, India’s industrial sector had gained in strength and maturity. Its
contribution to GNP increased substantially. A new service sector had emerged
signifying the metamorphosis of agricultural society into industrial society.
Meanwhile, due to the development programmes of the central and state
governments, service organizations and socially responsible business groups
like Mafatlal, Tatas, Birlas, Goenkas and others, the rural area witnessed an
all round socio-economic progress. The economic reforms further accelerated the
process by introducing competition in the markets. Steadily, the rural market
has grown for household consumables and durables. Rural marketing represented
the emergent distinct activity of attracting and serving rural markets to fulfil
Rural Marketing the needs and wants of persons, households and occupations of
rural people. As a result of the above analysis, we are in a position to define
rural marketing “Rural marketing can be seen as a function which manages all
those activities involved in assessing, stimulating and converting the
purchasing power 6 into an effective demand for specific products and services,
and moving them to the people in rural area to create satisfaction and a
standard of living for them and thereby achieves the goals of the
organization”.

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