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Learn Rural Marketing Concepts and Models from Pradeep Kashyap | PDF File

# Rural Marketing by Pradeep Kashyap: A Comprehensive Guide for Marketers ## Introduction - What is rural marketing and why is it important? - Who is Pradeep Kashyap and what is his contribution to rural marketing? - What are the main features and benefits of his book Rural Marketing? ## The Call of Rural India - How does Kashyap define rural markets and rural consumers? - What are the common myths and realities about rural India? - What are the challenges and opportunities for rural marketing? ## The Rural Marketing Environment - How has rural marketing evolved over time in India? - What are the key factors that influence the rural environment? - How has rural development changed the economic structure and income patterns of rural India? ## Rural Consumer Behaviour - What are the stages and factors that affect the rural consumer buying process? - How does Kashyap use the product adoption and diffusion of innovation models to explain rural consumer behaviour? - What are the roles of reference groups, opinion leaders and influencers in rural markets? ## Rural Marketing Research - What are the steps and tools involved in conducting rural marketing research? - How does Kashyap use participatory rural appraisals and scaling techniques to collect and analyse data from rural consumers? - What are the advantages and limitations of rural marketing research? ## Rural Marketing Strategy - What are the components and levels of rural marketing strategy? - How does Kashyap use the 4A framework (affordability, availability, awareness and acceptability) to design effective rural marketing mix? - What are some of the best practices and examples of successful rural marketing campaigns? ## Rural Marketing Segmentation - What are the criteria and methods for segmenting rural markets? - How does Kashyap use the new SEC system (socio-economic classification) to classify rural consumers based on their occupation, education and assets? - What are some of the challenges and benefits of rural market segmentation? ## Rural Product Strategy - What are the characteristics and types of products suitable for rural markets? - How does Kashyap suggest modifying existing products or developing new products for rural consumers based on their needs, preferences and lifestyles? - What are some of the innovative product concepts and features that have been launched in rural markets? ## Rural Pricing Strategy - What are the factors and objectives that influence pricing decisions in rural markets? - How does Kashyap recommend setting appropriate prices for rural consumers based on their purchasing power, value perception and competitive situation? - What are some of the pricing tactics and schemes that have been used in rural markets? ## Rural Distribution Strategy - What are the challenges and options for distributing products in rural markets? - How does Kashyap propose creating efficient and effective distribution channels for reaching rural consumers based on their location, accessibility and behaviour? - What are some of the distribution innovations and models that have been implemented in rural markets? ## Rural Promotion Strategy - What are the objectives and tools for communicating with rural consumers? - How does Kashyap advise designing persuasive and relevant messages for rural consumers based on their language, culture and media habits? - What are some of the promotion techniques and platforms that have been employed in rural markets? ## Rural Marketing Implementation - What are the steps and factors involved in executing a rural marketing plan? - How does Kashyap emphasize the role of people, processes and performance measurement in ensuring successful rural marketing implementation? - What are some of the challenges and solutions for managing a rural marketing team? ## Rural Marketing Trends - What are the emerging trends and opportunities in rural marketing? - How does Kashyap highlight the impact of digitalization, social media, e-commerce, mobile technology, CSR (corporate social responsibility) and sustainability on rural marketing? - What are some of the future scenarios and predictions for rural marketing? ## Conclusion - Summarize the main points and takeaways from the article - Emphasize the value and importance of reading Kashyap's book Rural Marketing - Provide a call to action for readers to learn more about or buy Kashyap's book ## FAQs Rural Marketing by Pradeep Kashyap: A Comprehensive Guide for Marketers


Rural marketing is the process of creating, delivering and exchanging value with rural consumers. It involves understanding the needs, wants and aspirations of rural consumers, and designing products, prices, distribution and communication strategies that suit their preferences and lifestyles.

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Rural marketing is important because rural India accounts for more than 70% of the country's population, 50% of the national income, and 40% of the total consumption. Rural India is also a huge and diverse market, with different regions, cultures, languages and socio-economic groups. Rural marketing offers immense opportunities for marketers to tap into the potential of rural consumers, who are becoming more aware, aspirational and demanding.

Pradeep Kashyap is a pioneer and expert in rural marketing in India. He is the founder and CEO of MART (Marketing and Research Team), a leading consultancy firm that specializes in rural marketing. He is also the author of several books and articles on rural marketing, including Rural Marketing (Pearson Education), which is considered as the most comprehensive and authoritative book on the subject.

Rural Marketing by Pradeep Kashyap is a must-read for anyone who wants to learn about rural marketing theory and practice. The book covers all aspects of rural marketing, from defining rural markets and consumers, to analysing the rural environment and consumer behaviour, to developing and implementing rural marketing strategies. The book also provides numerous case studies, examples and best practices of successful rural marketing campaigns by various companies and organizations.

In this article, we will summarize the main points and insights from Kashyap's book Rural Marketing. We will also provide some tips and suggestions for marketers who want to succeed in rural markets. We hope that this article will help you understand the basics of rural marketing and inspire you to read Kashyap's book in detail.

The Call of Rural India

One of the first challenges in rural marketing is to define what constitutes a rural market and a rural consumer. Kashyap defines a rural market as "a market that consists predominantly of consumers who are engaged in agriculture or allied activities or have an occupation that depends on agriculture or allied activities". He defines a rural consumer as "a consumer who resides in a village or town with a population of less than 50,000".

Kashyap also debunks some of the common myths about rural India, such as:

  • Rural India is poor and backward: Kashyap argues that rural India is not homogeneous, but heterogeneous, with different segments of consumers having different levels of income, education, awareness and aspirations. He also points out that rural India has witnessed significant economic growth, social change and infrastructure development in recent years.

  • Rural India is isolated and inaccessible: Kashyap contends that rural India is not cut off from urban India or the rest of the world, but connected through various modes of transport, communication and media. He also notes that rural India has become more exposed to urban influences and global trends.

  • Rural India is conservative and traditional: Kashyap maintains that rural India is not rigid and resistant to change, but dynamic and adaptive to new ideas and innovations. He also observes that rural India has become more modern and progressive in its outlook and behaviour.

Kashyap also identifies some of the challenges and opportunities for rural marketing, such as:

  • Affordability: Rural consumers have limited purchasing power and are price-sensitive. Therefore, marketers need to offer products that are affordable and provide value for money.

  • Availability: Rural consumers have limited access to products due to poor distribution networks and infrastructure. Therefore, marketers need to ensure that their products are available and accessible to rural consumers.

  • Awareness: Rural consumers have low awareness levels due to low literacy rates and media penetration. Therefore, marketers need to create awareness and educate rural consumers about their products.

  • Acceptability: Rural consumers have diverse needs, preferences and lifestyles due to regional, cultural and linguistic differences. Therefore, marketers need to customize their products and communication strategies to suit the tastes and preferences of rural consumers.

Kashyap also highlights some of the characteristics and benefits of rural markets, such as:

  • Large size: Rural markets have a huge population base and a large number of potential customers.

  • Low competition: Rural markets have less competition and more opportunities for differentiation and innovation.

  • High loyalty: Rural consumers have high loyalty and trust towards brands and products that satisfy their needs and expectations.

  • High growth: Rural markets have high growth potential and profitability due to increasing income, consumption and demand.

The Rural Marketing Environment

Kashyap traces the evolution of rural marketing in India over four phases:

  • Phase I (Prior to the 1960s): Rural marketing was largely ignored or neglected by marketers, who focused on urban markets. Rural consumers were dependent on local traders and intermediaries for their product needs.

  • Phase II (1960s1980s): Rural marketing was driven by the government's initiatives for rural development, such as the Green Revolution, the White Revolution, the Integrated Rural Development Programme, etc. Rural consumers were exposed to new products and services, such as fertilizers, seeds, pesticides, irrigation systems, dairy products, banking services, etc.

  • Phase III (1990s2000): Rural marketing was influenced by the liberalization, privatization and globalization of the Indian economy, which led to the entry of multinational companies and increased competition in rural markets. Rural consumers were offered a variety of products and brands, such as FMCG (fast-moving consumer goods), durables, automobiles, telecom services, etc.

  • Phase IV (After 2000): Rural marketing is driven by the emergence of new trends and opportunities in rural markets, such as digitalization, social media, e-commerce, mobile technology, CSR (corporate social responsibility) and sustainability. Rural consumers are becoming more aware, aspirational and demanding.

Kashyap also analyses the key factors that influence the rural environment, such as:

  • The demographic environment: Rural India has a large and young population, with a high birth rate and a low death rate. Rural India also has a skewed sex ratio and a low literacy rate.

  • The physical environment: Rural India has a diverse and challenging terrain, with different climatic conditions and natural resources. Rural India also faces problems such as water scarcity, soil erosion, deforestation and pollution.

  • The social and cultural environment: Rural India has a rich and varied culture, with different religions, languages, customs and traditions. Rural India also has a strong sense of community and family values.

  • The political environment: Rural India is influenced by the policies and programmes of the central and state governments, as well as the local self-government institutions such as panchayats. Rural India also witnesses political activism and social movements on various issues.

  • The technological environment: Rural India is witnessing rapid technological changes and innovations that are transforming the rural economy and society. Rural India is also adopting new technologies such as biotechnology, renewable energy, information technology, etc.

Kashyap also examines the rural economic environment, which has undergone significant changes in recent years due to various factors such as:

  • The changing face of rural development: The government has launched several schemes and initiatives to improve the infrastructure, employment, income and welfare of rural India. Some of these include the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), the Pradhan Mantri Gram Sadak Yojana (PMGSY), the Bharat Nirman Programme, etc.

  • The rural economic structure: The rural economy consists of two sectors: the farm sector (agriculture and allied activities) and the non-farm sector (rural industries and services). The farm sector contributes about 40% of the rural income, while the non-farm sector contributes about 60%. The farm sector faces challenges such as low productivity, high dependence on monsoon, lack of irrigation facilities, etc. The non-farm sector offers opportunities such as handicrafts, food processing, tourism, etc.

  • Changing migration trends: Migration is the movement of people from one place to another for various reasons such as employment, education, marriage, etc. Migration can be classified into two types: seasonal migration (temporary) and permanent migration. Seasonal migration is more common in rural India than permanent migration. Seasonal migration affects the rural economy in both positive and negative ways. It provides income and remittances to rural households but also creates labour shortage and social problems in rural areas.

etc. The average monthly per capita income of rural households was Rs. 1,430 in 2017-18, while the average monthly per capita expenditure was Rs. 1,276. The expenditure pattern of rural consumers shows that food accounts for about 50% of the total expenditure, followed by non-food items such as clothing, footwear, education, health, etc.

Kashyap also describes the rural infrastructure, which is essential for the development and growth of rural markets. He focuses on four aspects of rural infrastructure: road connectivity, electrification, rural housing and telecommunications.

  • Road connectivity: Road connectivity is the availability and quality of roads that link rural areas with urban centres and markets. Road connectivity is crucial for the movement of goods and people in rural areas. Road connectivity has improved significantly in rural India due to the PMGSY, which aims to provide all-weather road access to all habitations with a population of 500 or more in plain areas and 250 or more in hilly areas.

  • Electrification: Electrification is the provision and supply of electricity to rural areas for domestic and productive purposes. Electrification is vital for the improvement of living standards and economic activities in rural areas. Electrification has increased substantially in rural India due to the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), which aims to provide 24x7 power supply to all rural households.

  • Rural housing: Rural housing is the availability and quality of dwelling units for rural households. Rural housing is important for the health and hygiene of rural people. Rural housing has improved considerably in rural India due to the Pradhan Mantri Awas Yojana-Gramin (PMAY-G), which aims to provide pucca (permanent) houses with basic amenities to all eligible rural households.

  • Telecommunications: Telecommunications is the availability and usage of communication devices and services such as telephone, mobile phone, internet, etc. in rural areas. Telecommunications is essential for the dissemination of information and knowledge in rural areas. Telecommunications has grown exponentially in rural India due to the rapid penetration of mobile phones and internet services.

Rural Consumer Behaviour

Kashyap explains the consumer buying behaviour model, which consists of five stages: need recognition, information search, evaluation of alternatives, purchase decision and post-purchase behaviour. He also discusses the factors that influence consumer behaviour at each stage, such as cultural factors (culture, subculture, social class), social factors (reference groups, family, roles and status), personal factors (age, life cycle stage, occupation, income, lifestyle, personality) and psychological factors (motivation, perception, learning, beliefs and attitudes).

Kashyap also applies two models to understand rural consumer behaviour: the product adoption process and the diffusion of innovation process. The product adoption process describes how an individual consumer goes through five stages before adopting a new product: awareness, interest, evaluation, trial and adoption. The diffusion of innovation process describes how a new product spreads through a social system over time among potential adopters: innovators, early adopters, early majority, late majority and laggards.

Kashyap also highlights the role of reference groups, opinion leaders and influencers in rural markets. Reference groups are groups of people that influence a consumer's attitudes and behaviour. Opinion leaders are individuals who have high credibility and influence within a reference group. Influencers are individuals who have a large following on social media platforms and can influence a consumer's purchase decisions.

Kashyap provides several examples of how these concepts can be used to understand and influence rural consumer behaviour. For instance:

  • Aircel used a product adoption strategy to launch its mobile services in rural Tamil Nadu. It created awareness through mass media campaigns featuring popular celebrities. It generated interest through road shows and demonstrations. It facilitated evaluation through free SIM cards and trial offers. It encouraged trial through attractive tariffs and value-added services. It ensured adoption through network coverage and customer service.

  • HPCL (Hindustan Petroleum Corporation Limited) used a diffusion of innovation strategy to introduce its LPG (liquefied petroleum gas) stoves in rural Uttar Pradesh. It identified innovators and early adopters among women self-help groups who were willing to try new products. It trained them as opinion leaders who could demonstrate the benefits of LPG stoves to other women in their villages. It also offered incentives such as discounts and commissions to these opinion leaders for promoting LPG stoves.

Rural Marketing Research

Kashyap outlines the rural marketing research process, which involves seven steps: defining the objectives, determining the research budget, designing the research, sampling, designing the research instrument, organizing the field and collecting the data, and collating and analysing the data. He also discusses the challenges and limitations of rural marketing research, such as low literacy levels, language barriers, cultural diversity, lack of secondary data, etc.

Kashyap also introduces some of the special tools used in rural marketing research, such as participatory rural appraisals and scaling techniques. Participatory rural appraisals are qualitative methods that involve the active participation of rural people in collecting and analysing data about their own situation. Scaling techniques are quantitative methods that involve measuring the attitudes and preferences of rural consumers using numerical scales.

Kashyap provides several exampl


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