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The rural markets provide better opportunities. With only around , of the , villages tapped so far, there is huge potential and market areas. With a rural population of more than million, it is a huge market. Non- farm sectors now account for almost 50 percent of total rural incomes. Another reason for the rising disposable incomes of villages is that agricultural income is not taxed. Many households in rural India have one of their family members abroad, mostly in Gulf countries. People working there send their savings to their families in India, which is an additional source of income.
The growing reach of the electronic media has created a huge change in the lifestyles of rural consumers because of TV programmes like soaps and other serials.
Rural people are spending more on lifestyle products like lipsticks. Rural marketing is the process of developing, pricing, promoting, distributing rural-specific goods and services, leading to exchanges between urban and rural markets, which satisfies consumer demand and also achieves organisational objectives. Rural marketing involves a two-way marketing process, however, the prevailing flow of goods and services from rural to rural areas cannot be undervalued. A major part of rural marketing falls in this category.
It includes the transactions of urban marketers who sell their products and services in rural areas. Important items sold in rural areas and manufactured in urban areas include pesticides, fertilisers, seeds, FMCG products, tractors, bicycles, consumer durables etc. Transactions in this category basically fall under agricultural marketing where a rural producer usually a farmer seeks to sell his produce in an urban market.
An agent or a middleman plays a crucial role in this marketing process. Important items produced in rural areas and sold in urban markets include seeds, fruits and vegetables, milk and related products, forest produce like beeswax and honey, spices, cotton for textile mills etc.
This includes activities that take place between two villages in close proximity to each other.