Discussion
Many companies in India are taking up rural marketing because :
Answer: D
Companies are turning to rural India because the rural market has tremendous untapped potential.
About two-thirds of India's population lives in villages. Rising rural incomes, better roads, electrification and media reach have made it a large and growing market, while urban markets have become saturated and competitive. Many consumer goods still have low rural penetration, so the room for growth is large.
Rural distribution is in fact more costly and difficult than urban, because villages are many, scattered and poorly connected, so it is not chosen for being economical. There is no general sales-tax exemption for rural sales, and a clean environment is not a business reason for entering a market.
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