DBB2206 RURAL MARKETING FEB – MAR 2025

Description

SESSION	FEBRUARY-MARCH, 2025
PROGRAM	BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SEMESTER	IV
COURSE CODE & NAME	DBB2206 RURAL MARKETING

           

 

Assignment Set – 1

 

 

1. List the five key components of the rural marketing environment as per the STEP model and briefly describe each. 10

Ans 1.

Five Key Components of the Rural Marketing Environment – STEP Model

Socio-Cultural Environment

The socio-cultural environment in rural marketing refers to the beliefs, traditions, customs, values, and social norms that define the lifestyle and behavior of people living in rural areas. In rural India, joint family systems, religious faith, caste structure, and community-driven behavior play a major role in influencing purchasing decisions. Marketers must understand these social dynamics to design products, services, and communication strategies that resonate with the rural audience. For example, religious festivals often drive high consumer demand,

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2. Explain why rural consumers rely more on opinion leaders than urban consumers, for purchase decisions. 10

Ans 2.

Rural Consumers and the Role of Opinion Leaders in Purchase Decisions

Limited Exposure to Media and Advertising

Rural consumers often have restricted access to mass media such as newspapers, the internet, and television due to factors like low literacy levels, inconsistent electricity supply, and lack of infrastructure. As a result, their awareness about brands, products, and promotional campaigns is limited compared to urban consumers. In such an environment, personal communication becomes more trusted and effective. Opinion leaders—respected individuals such as teachers, local shopkeepers, village heads, or social workers—act as informal channels

 

 

3. Summarize the role of advertising in rural markets and discuss two unique challenges faced by advertisers in these areas. 5+5

Ans 3.

Role of Advertising in Rural Markets and Challenges Faced

Role of Advertising in Rural Markets

Advertising plays a significant role in connecting brands with rural consumers by creating awareness, building trust, and influencing buying behavior. In rural markets, where access to modern media is limited and literacy levels are low, advertising serves as an essential tool for educating consumers about products, their usage, pricing, and availability. It bridges the communication gap between companies and rural audiences, helping introduce new products

 

 

Assignment Set – 2

 

 

4. A rural agro-business faces frequent price fluctuations and post-harvest losses. Suggest three risk-minimization strategies from the text and justify how each would address these challenges. 10

Ans 4.

Risk-Minimization Strategies for Agro-Business in Rural Areas

Contract Farming Agreements

One effective strategy for minimizing price fluctuations and post-harvest losses in rural agro-business is adopting contract farming. This involves entering into agreements with large agribusiness companies or food processing units, where farmers agree to grow crops under predefined terms regarding price, quantity, and quality. This strategy ensures that farmers receive a guaranteed price for their produce, irrespective of market fluctuations, thereby protecting them from unexpected drops in commodity prices. It also often includes support

 

5. Analyze the key characteristics of rural consumer behavior in India and discuss how they differ from urban consumer behavior. Support your answer with relevant example

Ans 5.

Characteristics of Rural Consumer Behavior in India and Differences from Urban Consumers

Key Characteristics of Rural Consumer Behavior in India

Rural consumer behavior in India is shaped by a unique combination of economic, social, and cultural factors.

Value-Consciousness.

One of the most prominent characteristics is value-consciousness. Rural consumers prioritize price and durability over brand image or product features. They seek products that offer maximum utility at an affordable price. As most rural incomes are seasonal and depend on

 

 

6. Identify and describe the key bases used for segmenting the rural market. How can marketers effectively use these segmentation bases to target different consumer groups in rural India?

Ans 6.

Segmentation Bases in Rural Markets and Their Marketing Application

Key Bases for Segmenting the Rural Market

Segmentation in rural marketing involves dividing the vast and diverse rural population into smaller, manageable consumer groups with similar needs or characteristics. One key base is

Geographic Segmentation

Geographic segmentation, where rural consumers are categorized by location—villages, districts, climate zones, or accessibility. Marketers may target villages in irrigated zones for