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Rural Marketing Research.

Rural Marketing Research In India and How its different from Urban Research.

Sesha Sai

on 11 March 2013

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Transcript of Rural Marketing Research.

Researching Rural Markets 1. Highly heterogeneous Rural Marketing Research. Evolution of Rural Marketing Research
1.Need to develop a ‘Rural Marketing Information System’
To adjust to the new demands of clients, market research agencies are trying to bring in array of tools and techniques that could help clients gain
new consumer insights.

2. Focus on" Predictive research” to provide consulting role in launch of new product,designing new promotions etc based on study of consumer behavior. 21st Century. Sources and Methods of Data Collection
Different set of tools are required to conduct effective research in ruralmarkets.
1. conducting research with typical 5 point or 7 point scales used in urban context have not been found effective in rural context
b’coz it involves a complex understanding.
Conventional scales can be simplified to less complex 3 point scale. Tools Used for Rural Marketing Research. 1. Issue- Information Required to Address
2. Design- Method of Collecting Information.
3. Manage- Data Collecting Process.
4.Analyze- The Results.
5. Communicate. - Finding & Implication
Rural market research has gradually evolved from just supplying market share figures Prior to 1980’s
Thompson Rural Market Index.
-Hindustan Thomson associates Ltd.developed it.
-It is an index to segment the rural marketdistrict wise.
-HTA identified 26variables covering 383districts.
-Major variables are demographics,occupation agriculture ,agri-inputselectrification and agri-facilities
IRMA (Institute of Rural Management,Anand) include original information collected first through field surveys,questionnaires,group discussion, experimenting etc. 1.A large no. of rural people are not aware of the concept of market research.
2.The investigators need to first build a good rapport with them, make them understandthe importance of research and break the barrier of suspicion, hesitation and reluctance to participate in research activity.
3. Ensuring the support of opinion leader:
Educate /influence the opinion leader to gain support from respondents.
4. Behaving so as to be liked by rural people:
dress,speak,act and behave asliked by rural respondents to attain their respect, willingness and participation andavoid acting in urbane manner.
5. Being at right places:
investigator can choose those places which are likely to bevisited by a good no. of people so that he can attain efficiency in data collectionlike village choupal,retail outlets, fairs and haats.

Nature of rural market:
widely scattered and a very large territory.

A pan India research would be quite costly and time consuming.

Rural marketing research budget:
Inadequate budget,organizations decide to conduct research in a few rural market andextrapolate
the findings to the entire rural market which can be in effective and sometimes counterproductive.

Lack of uniformity in secondary data:
great variation in the data of NSS,NCAER,CMIE.


Lack of facilities in rural

Comprehension of research tools.

Sensitivity of rural people: Reputed Rural Marketing consultancy organizations:
2.AdvertisingCreative Market Linkers
3.MART,New Delhi
4.O&M Rural Communication Network,
New DelhiRural Relations
5.Sampark Marketing & Advertising Solutions 3. Extensive research effort. 2.Identical to those followed in conventional urban marketing. Major difference comes in area of data collection its current role of executing predictive research to provide valuable insights into the psyche of consumer. to Primary sources include use of already published data by government organizations ,research bodies ,consultancy organizations. Secondary sources Data Collection Approaches in Rural Areas 1. Participant Observation.(PO)

2.Rapid Rural Appraisal.(RRP)

3. Participatory Rural Appraisal.(PRA)

4.Participatory Action Research.(PAR) Participatory Approaches. 1. The Researcher Actively Participates in the day to day life for the Tribe.

2 Helps in better understanding in the Insights.

3. Can Document Lifestyles,Customs, Values, Interrelationships, etc of the Community Members. Participant Observation (P O) Rapid Rural Appraisal. ( RRA) Researcher uses Combination of Various Methods. 1. Secondary Data Sources.
2. Observation.
3. Interviews. - Semi Structured
4.Diagrams.- Maps,seasonal calendars.
5. Stories and Portraits- Local Histories and
Biographies. Participatory Rural Appraisal. ( PRA) PRA involves local people and outsiders from different sectors and disciplines.
5 Principles.
1. Participation and empowerment.
2. Flexibilty.
3. Team work.
4. Optimal Ignorance.
5. Systematic. Rapid Rural Appraisal RRA Vs PRA. 1. Researcher goes to Rural. 1.Facilitates Rural People in Collection 2. Information is owned by the
Researcher. 2. Owned by Rural people
and shared with the Researcher. 4. Participatory Action Research. - Participants take direct responsibility in preparing the report. Tools 1. Ladder.
2. Images of Faces.
4. Dice.
5. Carrom Coins/Coins.
6. Playing Cards.
7.Piegion Holes.
8. 3 Point Scale. Limitations and Challenges in Rural Marketing Research Rural Vs Urban Research. Quantitative research is numerically oriented. It requires respondents to give specific answers that are measurable. For eg. BSNL might ask its customers to rate its overall service as excellent, good, poor or very poor. Such scaling techniques cannot be used in rural areas as the respondents are less educated.
In qualitative research, there are no fixed set of questions but instead, a topic guide is used to explore various issues in-depth. The discussion between the interviewer and the respondent is largely determined by the respondent’s own thoughts and feelings. For eg. HUL personnel may stop a consumer who has purchased LUX and ask him or her why he or she has chosen the soap. Qualitative Vs Quantitative Approach -Industry, commerce and trade associations – FICCI, CII, ASSOCHAM
-Marketing research agencies and associations – Rural Relations, MART, Anugrah Madison, Sampark, Rural marketing Association of India
-Companies – Colgate, HUL, ITC, Rallis India
-NGO’s – RASS (AP), Rural Innovations Network (Chennai), CARE (New Delhi)
-Government Agencies – NCAER, RBI, Ministry for Rural Development, Mandal Revenue Offices, Panchayats. Census Publications. Secondary Data Sources. Colors In Rural Marketing Research The face cards with K,Q,J,10 and 9 represent a descending order in terms of values. As such, they are assigned ranks from 1 to 5 in that order.
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