Rural Marketing Strategies, Market Research

Rajendran Ananda Krishnan.

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things

 Researching Rural market:
 Sanitizing rural market, Research design –
Reference frame, Research Approach,
 Diffusion of Innovation, Development
studies, PRA Approach, The need for PRA
 Sampling, Operational aspects of data
collection

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The American Marketing Association defines
market research as: „The systematic
gathering, recording and analysing of data
about problems related to marketing of
goods and services.
a) Reactive Approach – These organisations
do not conduct research, but follow what
others do and see it as a way to keep up
with competition.
b) Proactive Approach – These organizations
anticipate developments in the market and
introduce new ideas and methods to exploit
opportunities or to minimise problems so as
to get ahead of competition.


 Low literacy levels – Literacy level in rural India are
low, due to which villagers often find it difficult to
understand the questions, or respond to Western
ratings and ranking tools.
 Poor media exposure, low product and brand
awareness – Media penetration, whether electronic
or non-electronic, is very low in rural areas.
Therefore, awareness regarding products and brands
is very low, making brand studies virtually
impossible.
 Local language communication – There are 15
official languages, making communication extremely
difficult for the researchers.
 Scattered and Remote villages; inaccessible roads –
Tiny villages are remotely located, scattered and
have almost inaccessible roads. Sampling such
villages is a really painful task for researchers.


 Social taboos; difficulty in interacting with women
respondents – Women in some parts of the country
like Rajasthan and some parts of UP remain behind
purdah. If the respondents include women, then this
makes the job difficult for the researchers.
 Interview timing – Normally, younger men go to the
fields in the morning and come back only in the
evening. Women are busy in the morning and evening
with cooking and other household chores.
Researchers need to plan the day according to
availability of the respondents.
 Rule out revalidation of data – The possibility of
validating data over the telephone in rural areas is
eliminated as telephone penetration per household is
extremely low and physical validation is not feasible
because villages are remote and scattered.


 Defining problems
 Determining the research budget
 Choosing Research design (exploratory,
descriptive or causal; qualitative or
quantitative and based on primary data or
secondary data)
 Determining sampling method and size
 Selecting appropriate data analysis tools
 Preparing the research proposal
 Organizing field work
 Analysing and reporting findings


 Research problem definition involves an
understanding of the information needed by
managers and specifying the area of enquiry.

Various components of problem definition
 Management objective : To increase the market
share of televisions from the current rate of 20% to
23%.
 Management problem : Whether the new model that
it is proposing to introduce will be a success?
 Research problem : What are the perceptions of
consumers requiring a new model?
 Decision criteria : The company will introduce the
model if 70% of the consumer responses are
favourable.
 Hypothesis : Consumers favouring the new model are
equal to or more than 70%.

 The principle guiding the budgeting decision is
“Conduct marketing research only when the
expected value of perfect information is greater
than the cost of obtaining it.”
 As such, the budget decision involves two steps:
1. Specifying the approximate value of
information.
2. Determining the maximum amount that can be
spent.


 A company is interested in marketing its products in
the rural market for the first time. The marketing
manger is interested in knowing whether rural
markets are attractive. He prefers a small-scale
survey, a sort of pilot study to assess the
attractiveness of the rural market.
 If the results are positive, he will order for a
descriptive research, a large scale survey to assess
the market potential and identify the strategic
options.
 In the final stage, he may undertake experimental
research to test market his product in a few select
villages to predict the success of the product. If the
result is positive, he will implement his marketing
plan for the entire rural market.


 When a manager is unaware of the
phenomenon, he may initiate exploratory
research to gain a basic understanding of it.
 Next, he may go for descriptive research to
have a thorough and analytical view of it.
 He may opt for experimentation before
making huge investments on it.


 In rural markets, the research is more
exploratory in nature as many companies are
looking for information to make entry decisions.
 FMCG companies that have already spread their
wings in rural areas such as HUL, Godrej,
Colgate, LG, Philips and others are interested in
assessing consumer preferences, consumer
behavior and brand loyalty. Hence, they require
descriptive and analytical studies.
 Agri-input companies selling seeds, pesticides,
fertilizers and farm equipment will be interested
in going from the laboratory to the field and
conducting real-life experimental studies to
know how well their product works and how will
it be received by the farmers.


 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 Research can be done by:
 Observation
 Interviews
 Group Discussion
 Focus groups
 Participatory Research methods


 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.

 Educational Institutions – Institutes like NIRD
(AP), and NIRMA (Gujarat)
 Media organs – The Economic Times, The
Financial Express, Hindu Business Line,
yojana, Kurukshetra, RMAI journals and other
periodicals
 Worldwide organizations – World Bank, IMF,
IFAD, FAO and ILO


 Census of India – Largest compilation of rural
demographic data
 NCAER (National Council for Applied Economic
Research) – Largest sample surveyor in the country,
compiles data on demographics, durables and non-
durables.
 NSSO (National Sample Survey Organization) –
Consumption and expenditure-related data on major
products and services.
 DRDA (District Rural Development Authority) –
Compilation of district-level data on government-
aided projects.
 ICDS (Integrated Child Development Scheme) –
Compilation of village-level information mainly on
health by anganwadi workers.


 Sampling is an easy process in urban areas due to
marked similarity. This is a result of high mobility
and exposure facilitated by infrastructure
facilities, regularity of income receipts, savings
patterns moulded by tax problems and time
schedules and incomes.
 Differential and limited development of
infrastructure, geo-physical differences, variation
in literacy levels and differences in proximity to
towns have contributed to the heterogeneity in
the rural market place.


 In some places, toothpaste and soap are
luxuries, whereas in some other places, it is
necessity.
 In Haryana and Punjab, hair dye has been
used on buffaloes, and washing machines have
been used for making lassi.
 In some parts of Rajasthan, utensils are
cleaned with ash and sand due to water
scarcity. A washing powder would face
competition from these alternatives that need
very little water.
 Hard water in most villages in Bikaner is the
reason for the low acceptance of soap.


A variable such as income cannot be used to
stratify rural samples. The reason is that
incomes are uncertain and unaccounted.
 In the urban context, the income category is
the primary criterion for grouping
consumers.
 Often, rural market research utilizes land
holding as an indicator of wealth and
income.
 The land holding has to be balanced with the
productivity and realizations from the crop
mix.


Village could be selected on the basis of :
 Population
 Proximity to highway or remote location
 Occupation profile
 Religion : Hindu-dominated or muslim-
dominated villages
 Tribal population : tribal or non-tribal.


Factor Large Small

Time available More Less

Accuracy High Low

Cost High Low

Population Heterogeneous Homogeneous


 The time-tested sophisticated tools fail to
evoke the required response in rural market.
 Likewise, detailed questions need to be
asked to simplify the inquiry and to pin down
the response.
 Rural consumers are comfortable with colors,
pictures and stories.
 Rural researchers make use of participatory
research methods.


 Secondary data sources
 Observation
 Interviews
 Diagrams
 Stories and portraits


 PRA is a Data collection technique in rural market
that gets the participants of the research process
(respondents) to be actively involved in the
research.
 PRA is a set of approaches and methods to enable
rural people to share, enhance and analyse their
knowledge of life and conditions, to plan and to act.
Therefore, it arouses the curiosity and interest of
people and they voluntarily and eagerly get involved
in the process and they enjoy sharing and analysing
about themselves.
 PRA involves local people and outsiders from
different sectors and disciplines. Outsiders facilitate
local people in analysing information, practicing
critical self-awareness, taking responsibility and
sharing knowledge of life and conditions to plan and
to act.


Participatory Rural Appraisal Focus Group Discussion

Large and heterogeneous in nature, Typically small and homogeneous in
ensuring participation from all walks of life. nature.

As expression is both verbal and non-verbal, A verbal channel – outspoken
even less assertive people can express their individuals dominate the discussion
views.
Moderator‟s role is low, hence information Moderator‟s intervention can be high
flow is more natural. in evoking response and from all
sections.
Attitudes and behavioral change oriented. Action oriented.

On-the spot analysis by participants. Analysis done by moderators.
Cross checking and validation of data can FGD needs to be verified with more
be done on site by involving other members FGD till a consensus is reached.
or groups.

Key Principles :
 Participation and Empowerment – Relies heavily on
participation by the communities, as partners to the
research team and sources of information.
 Flexibility – Makes use of different techniques for
collecting information.
 Teamwork – It is best conducted by a local team with
a few outsiders present.
 Optimal ignorance – It avoids unnecessary details,
and irrelevant data.
 Systematic – Alternative methods have been
developed to ensure the validity and reliability of the
findings.
 Inclusiveness – Method allows researcher to involve
different people.

 Time deadlines – Insufficient time is allowed for
the team to relax and mingle with the local
people, to listen to them and to learn about the
more sensitive issues under consideration.
 Credibility – Individuals unfamiliar with
participatory research methods may raise
questions about the credibility of the PRA
findings.
 Hijacking – PRA agenda will be externally driven.
This results in legitimacy problems.
 Disappointment – Unnecessary local
expectations may be raised. Local communities
may view it as a wasteful exercise.


The type of analysis and the choice of analysis
technique depend on the following factors :
 Purpose of research
 Type of data – quantitative or qualitative
 Number of variables being examined – one or
more
 Type of measurement scale used – interval,
nominal, ordinal
 Number of samples to be compared – one or more
 Nature of samples – dependent or independent
 Size of the sample – small or large


The elements of a research proposal are :
 Executive Summary / abstract
 Background / introduction
 Objectives and hypothesis
 Methodology
 Time schedule
 Research staff and equipment
 Cost estimates – recurring and non-recurring
 Appendices


 Preparation of data collection plan that specifies :
1. Number of supervisors
2. Number of field investigators
3. Period of data collection and schedule
4. Budget
 Organization of research effort
1. Selecting investigators and supervisors
2. Training the staff
3. Allocating work
4. Briefing the investigators
5. Compensating the staff for the work turned out
 Controlling :
1. Supervising the data collection with respect to time and
cost
2. Checking the data for validation
3. Carrying out corrections, if any, or repeating the data
collection wherever necessary


Aspect Characteristics of respondents Dos
Appearance Simple and culture bound Dress simply

Greetings Greetings and conversations Make a courteous greeting with
are informal. They try to relate respect to age mentioning a
and show affection when relationship.
interacting with others.
Language Most of them are not literate Speak in the local language. If
and culture and unfamiliar with the English possible, become familiar with the
language local dialect.
Rapport Rural people like to be related. Engage the respondents in
They are open to known interaction by inquiring on personal
people. and general issues in a casual way
showing concern and respect.
Investigatio Rural people are sensitive. Be slow in questioning and getting
n They are slow in understanding responses. Be patient.
and exploring.
Overcoming Villagers speak in groups. They Encourage group interaction. After
limitations look for social support and gaining trust, obtain individual
approval. opinions.

 Don’t pretend – Villagers look at a newcomer with
some degree of apprehension. Avoid promising
benefits that you cannot offer.
 Avoid direct inquiry – Do not ask direct questions
when conducting an interview in the presence of
others.
 Don’t touch – Touching the arm or placing a hand on
the shoulder of a villager without first establishing an
intimate relationship is not desirable.
 Avoid suspicious behaviors – Villagers are traditional
in their outlook. In view of this, male researchers
should not talk to women without a female assistant.
 Don’t become controversial – Avoid speaking about
village politics or raising controversial issues that may
lead to heated arguments and disputes.


 Mindset – It is important for the rural market researcher to
be able to think from the rural perspective, to constantly
evaluate responses and to mould his communication
accordingly.
 Effective communication – For more effective
communication and to elicit accurate responses in rural
research, a working knowledge of and familiarity with local
dialects is desirable.
 Discerning Ability – Researcher must know when to ask a
specific question and when to put an end to the general
discussion. He must also be able to discern between
sensitive and non-sensitive issues and topics.
 Good Memory – Since the researcher is advised not to
carry any writing material , he is expected to memorize all
the relevant information.
 Patience – Researcher needs to have a lot of patience to
get specific responses from villagers because they tend to
get involved in their own repeat things.


 Title page
 Table of contents
 Executive summary
 Introduction
 Methodology
 Findings
 Limitations
 Conclusions and recommendations
 Appendices
 Bibliography


Simple, easy to understand techniques to indicate varying
preferences and feelings have been evolved by rural researchers.
 Ladder – For rating purposes, a typical Likert scale on the
ascendancy is achieved by the steps on the ladder. The
respondent is asked to place a visual card corresponding to the
product or preference on a rung according to his ranking or
1
rating.
2
3
4

 Images of faces – The images of faces with varying expressions
(smiling to wailing) is another useful tool that is used to
ascertain preferences and liking.
 Colour wheels – Colours are very strong indicators and forms of
expressing feelings in the rural areas. The selection of colors is
done on the basis of the association of rural people with colors.


Colour Rating Association

Dark Green 5 Represents a good crop or
hariyali and hence represents
prosperity. It is considered to
be the best.
Light Green 4 Represents a Not very good
crop
Yellow 3 Represents Dry sand or a dry
field
Orange 2 Represents Setting sun and the
end of the day

Red 1 Represents danger


 Dice – Dice are wooden or plastic piece with 6
faces with varying number of holes or dots ranging
from 1 to 6. A face value of 1 is the lowest and a
face value of 6 is the highest.
 Carrom coins – Fifteen coins are given to the
respondents and they are asked to distribute them
among the brands under study in order of their
preferences – more coins for the most preferred
brand.
 Playing Cards – 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.
 3-Point Rating Scale – Researchers interested in
conventional scales may use three-point scales
(agree, neutral, disagree), especially when the
respondents are school educated.


Aspect Urban Rural
Respondents Literate, brand aware, individuals Semiliterate or illiterate, brand unaware.
respond individually. Generally group responses are available.

Time Willing to respond. Have time Hesitant, but devotes time.
pressures. Spare little time for
researchers.
Accessibility Easy to access, though many Tough to access; geographical distances
suffer from research fatigue. are barriers. Don‟t speak to outsiders.

Secondary data Internal data, syndicate research, Very few sources and less data.
sources published media.

Primary data Large number of middle men, Fewer number of all categories.
sources experts, sales force and
consumers.

Sampling Respondents form relatively Heterogeneous groups. Income and
homogeneous groups. Income can landholding to be carefully applied.
be a criterion.

Data collection Individual focused, use of Participatory approaches. Require
sophisticated instrument. simplified instruments.

 Retailshop / STD Booth
 Tea stall
 Playground
 Chaupal
 Haat


 Questions should be simple and direct. Eg.
Why do you think you don‟t need to use a mobile
phone? (not direct)
Would you consider using a mobile phone? (direct)
 Questions should be self-explanatory.
 Questions should not be ambiguous. Eg.
Do you like the mobile phone? (not clear)
Are you satisfied with the performance of the mobile
phone? (clear)
 Questions should have a logical flow, moving from
general to specific and from macro to micro.
 Questions should be in the local language. The
accuracy of translations should be checked by
persons from the same region to ensure that there is
no shift in meaning or nuance.

Thank you..


Rural Marketing Strategies, Market Research

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