Rural Marketing Concepts and Growth

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Questions and Answers

What is one of the primary reasons for the increasing focus on rural markets?

Decreasing demand for agricultural commodities

Decline in the urban population

Higher production costs in rural areas

Recent increase in rural incomes (correct)

Which of the following items is noted as having a growing market share in rural areas?

Smartphones

High-end fashion clothing

Luxury cars

Wrist-watches (correct)

According to CSG Krishnamoorthy's definition, what does rural marketing primarily focus on?

Enhancing the standard quality of life in rural regions (correct)

Delivering high-tech goods to urban areas

Reducing competition among urban businesses

Maximizing profits through urban consumer engagement

What is estimated about the growth rate of rural markets compared to urban markets?

Rural markets are expected to grow twice as fast as urban markets. Signup and view all the answers

What did T.P. Gopalaswamy define rural marketing as?

A two-way marketing process Signup and view all the answers

Which area is NOT mentioned as having improved the lifestyle of the rural population?

Transportation Signup and view all the answers

What type of goods does rural marketing focus on, according to Iyer's definition?

Rural specific goods and services Signup and view all the answers

What is a forecast regarding the demand in rural markets?

Rural demand will soon exceed urban demand. Signup and view all the answers

What defines an organised rural market?

Owned by a private company or government sector with licenses Signup and view all the answers

Which of the following best represents an unorganised rural market?

Local Kiryana shops Signup and view all the answers

What is one of the major functions of rural marketing?

Ensuring availability of products continuously through storage Signup and view all the answers

How does branding influence rural consumers?

It conveys product quality to consumers Signup and view all the answers

What advantage does packing provide in rural marketing?

It protects products from damage and reduces storage cost Signup and view all the answers

Which of the following describes the role of processing in rural marketing?

Processing adds utility and enhances product quality Signup and view all the answers

What is a key factor that allows local brands to thrive in rural markets?

They are well-known despite often being of lower quality Signup and view all the answers

What is a significant change that has recently influenced rural markets?

The growing influence of the green revolution Signup and view all the answers

What type of deductions do merchants make that cooperative societies help protect against?

Illegal deductions Signup and view all the answers

What is the apex institution at the national level for cooperative marketing societies in India?

NAFED Signup and view all the answers

In which states is the two-tier structure of cooperative marketing societies primarily found?

Assam and Kerala Signup and view all the answers

What is the role of the Central Co-operative Marketing unions?

To market produce brought by primary cooperative marketing societies Signup and view all the answers

What are the primary cooperative marketing societies located in?

Primary wholesale markets Signup and view all the answers

Which tier in the cooperative marketing structure serves as the district level?

Central Co-operative Marketing unions Signup and view all the answers

What aspect of agriculture can cooperative marketing societies expand into?

Credit and processing Signup and view all the answers

Which of the following best describes the structure of cooperative marketing societies in India?

There is either a two-tier or three-tier structure Signup and view all the answers

What was the main recommendation of the Mirdha Committee regarding agricultural marketing societies?

Restrict membership to agriculturists only Signup and view all the answers

Which advantage of co-operatives allows farmers to wait for better prices?

Storage facilities Signup and view all the answers

What is one of the causes of poor performance in cooperative marketing societies?

Lack of trained and efficient staff Signup and view all the answers

How does cooperative marketing help improve marketability?

It eliminates undesirable market changes Signup and view all the answers

What is one disadvantage mentioned regarding cooperative societies?

High operational costs Signup and view all the answers

What role does market intelligence play in cooperative marketing societies?

It helps obtain data on market prices and trends Signup and view all the answers

Which committee stressed the need for integration among cooperative organizations?

The Dantwala Committee Signup and view all the answers

What is a key function of agricultural marketing societies regarding credit?

They provide credit to help farmers delay sales Signup and view all the answers

What is the role of itinerant traders in the agricultural market?

They move from village to village buying produce directly from cultivators. Signup and view all the answers

Which agency is primarily involved in facilitating the transportation of agricultural produce?

Transport Agency Signup and view all the answers

What is the function of a Communication Agency in agricultural marketing?

To provide information about prices and available quantities. Signup and view all the answers

Which of the following is NOT mentioned as a type of government agency in agricultural marketing?

Consumer Product Safety Commission Signup and view all the answers

What role do auctioneers play in the agricultural market?

They facilitate the auctioning process for agricultural products. Signup and view all the answers

Study Notes

Rural Market Growth

Rural markets are important because of growing rural incomes and the potential for those incomes to grow faster due to increased agricultural production and higher commodity prices.
Rural markets are expected to surpass urban markets in demand for durable products like watches, fans, TVs, VCRs, and non-durable items like nail polish, lipstick, ice cream, shampoo, and insect repellent.
Rural markets are increasingly adopting color and black-and-white TVs, cassette recorders, VCRs, VCPs, pressure cookers, ceiling and table fans, and sewing machines.

Rural Marketing Definitions

Rural marketing is defined as the movement of farm-produced food, raw materials, and derivatives from farms to consumers, analyzing the impact on producers, middlemen, and consumers.
Rural marketing includes improving rural quality of life, considering the social structure of rural communities, and facilitating interaction between rural and urban environments.
Delivering rural-specific goods and services to satisfy demand and reach organizational goals is encompassed in rural marketing.
Rural marketing is a two-way process involving the exchange of goods and services between urban and rural markets.

Rural Market Classification

Rural markets can be categorized as organized or unorganized.
Organized Rural Markets are owned by private companies or government entities, adhering to specific regulations and rules. Examples include Warna Bazar and Godrej's Aadhaar stores in rural areas.
Unorganized Rural Markets are privately owned without affiliation to a company. They are often managed and regulated by family members. Examples include local stores, village hawkers, and individuals selling products from bicycles.

Functions of Rural Marketing

Trading: The buying and selling of goods and services occur in local and urban markets for monetary exchange.
Packing: Protects products from damage and deterioration during transport. Convenient handling, theft prevention, and reduced storage space are benefits.
Storage: Provides time utility to goods, overcoming seasonal production and continuous consumption. It allows for better pricing for sellers.
Branding: Convey quality to rural consumers. Though national brands are popular, local brands are significant in rural areas, often offering lower prices.
Processing: Adds utility and improves quality to commodities, like polishing rice or making a product easier to sell.

Co-operative Marketing

The National Agricultural Co-operative Marketing Federation (NAFED) was established in 1958 as the apex body for co-operative marketing.
The Mirdha Committee recommended in 1965 that membership for agricultural marketing societies should be restricted to agriculturists, excluding traders.
The Dantwala Committee emphasized the importance of integration among various co-operative organizations.

Advantages of Co-operatives

Reduced costs and improved service due to combined efforts of dealers.
Improved produce marketability by reducing undesirable market changes.
Safeguards against price increases for members.
Provides credit to farmers, reducing the need for immediate post-harvest sales.
Storage facilities allow farmers to wait for better prices.
Processing activities like oilseed crushing and cotton pressing can be undertaken.
Market intelligence is gathered regularly to plan activities.
Protection from illegal deductions by merchants while purchasing products from farmers.
Possible expansion to cover aspects like credit, processing, and farming, or linking with other societies.

Structure of Marketing Co-operatives

Co-operative Marketing Societies have two or three-tier structures.
Two-tier structure: Primary marketing societies at the taluka level and State Marketing Federations at the state level.
Three-tier structure: District marketing societies in the middle, with primary societies at the village level.
National Level: NAFED serves as the apex institution.
Base level: Primary co-operative marketing societies market produce from farmer members in their area.
District level: Central Co-operative Marketing unions market products from primary societies, either in mandis or in processed forms.

Rural Marketing Agencies

Intinerant Traders: Small merchants who travel between villages, purchasing produce directly from cultivators, often at lower prices.
Transport Agency: Facilitates product movement from market to market, using railways, trucks, carts, and trolleys.
Communication Agency: Provides information on prices, availability, and transactions, utilizing services like post, telephone, telegraph, newspapers, and radio.
Advertising Agency: Helps prospective buyers understand product quality and make informed purchase decisions using mediums like newspapers, radio, TV, and cinema.
Auctioners: Facilitate product auction and bidding by buyers.

Government Agencies

National Agricultural Co-operative Marketing Federation (NAFED)
Cotton Corporation of India (CCI)
All India Cotton Co-operative Federation Limited
Jute Corporation of India (JCI)
National Dairy Development Board (NDDB)
National Oilseeds and Vegetable Oils Development (NOVOD) Board
Tobacco Board
Agricultural Processed Products and Export Development Agency (APEDA)
Marine Products Export Development Agency (MPEDA)
Directorate of Marketing and Inspection, Government of India
State level agricultural marketing departments and agricultural marketing boards
State and lower level co-operative marketing societies
Fair price shops
Consumers co-operative stores, milk unions

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Description

Explore the essentials of rural marketing, focusing on the increasing importance of rural markets due to rising incomes and changing consumer demands. This quiz delves into definitions, trends, and the impact of rural marketing on communities and economies.