In several countries, over two-thirds of the population lives in rural areas. Multiple studies have highlighted how access to knowledge, technology, and financial products eradicate poverty and improve prosperity in rural areas. The improving rural prosperity creates opportunities for enterprises to drive revenue growth by making products or services available in the market.
Rural marketing helps companies and startups introduce and promote various products/services in the rural market. However, decision-makers must remember that rural consumers differ from urban consumers in many categories – education levels, purchasing power, brand perceptions, and brand loyalty. Hence, decision-makers make rural marketing mixes by integrating 4 A’s and 4 P’s.
Their marketing strategies focus on the 4 A’s of rural marketing – affordability, availability, awareness, and acceptability. In addition, they make the rural marketing mix effective by emphasizing the 4 P’s of rural marketing – product, price, place, and promotion. We can identify some key features or characteristics of rural marketing based on these key elements of the rural marketing mix.
Rural markets are more diverse and scattered than urban markets. Often a company’s rural consumer base is scattered over thousands of villages and hamlets. Also, consumers’ socio-cultural backgrounds vary across villages. Hence, companies have to classify rural consumers into multiple categories using parameters like languages, purchasing power, customs, and traditions. Also, they must customize and localize marketing campaigns according to individual rural areas.
There was a time when rural economies included primarily agricultural industries. However, welfare schemes launched by governments have created opportunities for rural consumers to supplement and increase agricultural income. For instance, many rural people these days generate income by growing the most profitable crops.
Likewise, they increase income by indulging in non-agricultural activities like poultry farming, bee hiving, and mushroom farming. These non-farm income sources increase the purchasing power of rural consumers. Also, regular income sources create opportunities for companies to meet the changing needs and preferences of rural consumers by marketing their products and services.
The conventional outlook of rural consumers makes them different from urban consumers. Old customs and traditions often make rural consumers resist changes. That is why; companies find it easier to generate demand for specific products – bicycles and fast-moving consumer goods – in rural markets. However, increasing literacy levels and digitalization have been changing the demand patterns in rural markets. Companies often find it easier to launch new products by targeting younger consumers.
While planning urban marketing campaigns, businesses prefer digital marketing channels to conventional marketing channels. However, businesses cannot run successful rural marketing campaigns by ignoring traditional marketing channels. They must create brand awareness and generate demand using traditional marketing methods like banners, billboards, print ads, radio ads, flyers, brochures, and direct mail. At the same time, they must boost rural marketing campaigns by involving important stakeholders like retailers, distributors, and salespeople.
A large percentage of rural consumers these days access internet-enabled mobile devices regularly. Also, the 5th generation mobile network (5G) enables them to consume digital content in multiple formats. The expanding expansion created opportunities for companies to boost customer acquisition and demand generation using top digital marketing channels. They run organic digital marketing campaigns using search engines and social media. At the same time, they create brand awareness by investing in paid ads.
Unlike urban consumers, rural consumers often acquire knowledge in vernacular languages. A large percentage of rural consumers still lack English language proficiency. Hence, rural marketing makes it essential for companies to produce marketing content in local languages. Also, each company must engage rural consumers by distributing multilingual marketing content. At the same time, content creators must localize the content according to the demographic characteristics of consumers living in specific rural areas.
As noted earlier, rural consumers are more diverse than urban consumers. Also, the needs and preferences of rural customers are impacted by specific traditions, customs, and belief systems. Hence, companies must consider product demand variations while making rural marketing strategies. They must determine the target audience for a product by assessing rural consumers’ purchasing power. At the same time, they must tailor the products or services according to the socio-cultural background of consumers across rural areas.
While discussing the challenges of rural marketing, bloggers often mention the lack of infrastructural facilities. However, government initiatives and investments have led to rapid infrastructure development across rural areas. Many villages now have concrete roads, warehouses, and communication systems. The infrastructural development enables eCommerce companies to expand into villages and hinterlands. The expansion boosts rural marketing by making it easier for companies to deliver products to rural consumers. At the same time, rural eCommerce creates opportunities for rural entrepreneurs to sell products like handicrafts to urban consumers.
Companies initially launch new products or services in urban markets. They introduce the product or service in rural markets several months after the initial launch. The delay creates opportunities for local entrepreneurs to make spurious products available in rural markets. These producers add authenticity to the spurious products using the brand’s logo, trademark, and packaging. While planning rural marketing campaigns, companies must focus on making rural consumers abandon fake merchandise. Also, they must help rural consumers differentiate between the original and spurious products by providing relevant information.
There have been a lot of innovations in Rural marketing recently: Digital devices and channels enable businesses to increase rural customer reach in a flexible and cost-efficient way. However, no company can launch and promote its products in rural markets successfully by replicating digital marketing strategies and tactics. Decision-makers must remember that rural consumers differ from urban consumers in many aspects.
While making a rural marketing mix, they must focus on integrating the 4 A’s and 4 P’s seamlessly. Likewise, they must localize and customize rural marketing campaigns according to the needs, preferences, and expectations of customers living in specific rural areas. At the same time, they must keep in mind the key characteristics of rural marketing that make it different from urban marketing.
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