Rural marketing research means the careful and objective study of product design, markets and transfer activities such as physical distribution and warehousing, advertising and sales management in rural areas.
Rural marketing research helps to know the demographics, psychographic and behavioural characteristics of the target market in rural areas.
In short we can say that rural marketing research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing by the company in the rural market.
Rural marketing research is carried out in a systematic and scientific manner to make it more effective and useful for marketers. The need for any marketing research areas on account of gaps in the existing information, based on which the problem is designed. The research leads to insight and a solution for that problem. There are sequential steps that apply to any research – Industrial, Commercial, Public utilities etc.
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Learn about:-
1. Introduction to Rural Marketing Research 2. History of Rural Marketing Research 3. Scope 4. Main Objectives 5. Precautions 6. Steps Involved in the Process 7. Methods 8. Consulting Organisation 9. Difference between Rural and Urban Market Research 10. Benefits 11. Limitations.
Rural Marketing Research: History, Scope, Objectives, Precautions, Steps, Methods, Benefits and Limitations
Rural Marketing Research – Introduction
Marketing is a restless, changing and dynamic business activity. The role of marketing itself has changed dramatically due to various crises-material, inflation, economic recessions, effects due to rapid technological changes in certain industries etc. Such changes, including the Internet have forced today’s marketing executive to become more market driven in their strategic decision-marking requiring a formalized means of acquiring accurate and timely information about customers, products and the market place and the overall environment. This means to conduct marketing research.
Research is the guide post to laying the foundations of a successful marketing programme. Research is a systematic and objective investigation of a subject or problem in order to discover relevant information or principles.
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The opening of rural market with its attendant peculiar characteristics has given rise to the need for rural market research. As the rural market is relatively new compared to its urban counterparts, there is a great need to understand rural India, its beliefs and practices. It has become almost essential for companies who want to enter rural markets to understand and conduct research before taking appropriate decisions on their rural marketing mix. There are many challenges in designing and conducting rural marketing research. So, rural research therefore needs to be seen from different perspective.
Rural marketing research means the careful and objective study of product design, markets and transfer activities such as physical distribution and warehousing, advertising and sales management in rural areas. Rural marketing research helps to know the demographics, psychographic and behavioural characteristics of the target market in rural areas.
The need for any marketing research arises on account of gaps in the existing information, based on which the problem is defined. The research leads to insights and a solution for that problem.
Seeking answers to questions and finding solutions to problems has been the basis of human progress. Research is a systematic search for an answer to a question or a solution to a problem. Managers need information about their markets, customers, competitors and government policies for making effective decisions. This information is obtained through research. Companies targeting rural markets have to understand about market dynamics in rural areas including rural lifestyles, consumer expectations, availability of distribution network, competitive scenario etc. This information can be obtained through marketing research.
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In short we can say that rural marketing research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing by the company in the rural market.
Research in rural markets presents unique challenges in view of differences in lifestyle, culture and socio-economic environment. Literacy levels are very low, rural consumers cannot complete difficult questionnaires and answer complex questions. Rural markets are widely scattered and are not easily accessible. Besides, the rural consumers are suspicious about intentions of the researcher. Further, culture, language and lifestyle differ from region to region across rural India making it difficult to make generalizations and draw ready conclusions.
Rural Marketing Research – History
Rural marketing research has always existed but has been more in the form of social research. As marketers began to identify the potential of a given region, market research began to slowly evolve in that region. In the 70’s and 80’s, the pre-reform stage, very few companies really approached the rural sector and those existing or entering could only look at the vanilla.
The prosperous belts of Punjab or AP or Maharashtra were the few belts tapped by marketers. Also, inconvenience of bad roads, limited electricity and other related infrastructure was an added plight. It was not only a problem of reaching the customer but also understanding his psyche too.
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Having made some in roads, marketers were also stuck with the proposition of what to sell. Will the customer readily buy the Liril or Lux or the Surf or Hamam just like his counterparts, or is he any different? Questions were aplenty, and the initial years were full of trial and error, wherein in addition to stripped down versions of the branded products, a large number of spurious and counterfeit products were sold.
However, most marketers had to unlearn a few things of the past to gather new information on these markets. Besides, they also realised that eventually the customers in rural markets were seeking the same values from the products like their urban counterparts in terms of value for money, quality, convenience but their environment, culture, value system had different orientation which meant consumption patterns were also different.
A rural customer also used toilet soap, but soap usage was maybe once in five occasions or exhibited usage of washing bar as against detergents or tooth powder against tooth paste. Marketers found a great diversity of language forms and cultural nuances in villages, which made wholesale extension of urban promotion impossible.
The initial research was more of commissioned research by companies taken up at regional level, based on the company’s annual plan or marketing plans to target a certain region and on which the marketer had virtually no information. However, as the rural markets began to open up with reforms and agrarian sector growth, they generated surplus funds. Besides, migrant population was also a key factor for information flow and changes in the value system.
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Gradually, as the rural markets began to expand in size and potential too, it meant larger and complex implications for the marketers. It also meant that more and more marketers approached the rural markets to find a niche for themselves. The imperative for rural marketing research become more pronounced and some trends began to emerge clearly as marketers began expanding their operations and physical areas of operations.
While there is purchasing power in the country, this is scattered across a wide geography, and marketers have to collect their sales bit by bit to achieve scale. There is no easy solution in rural market segmentation. There is beginning to be a surfeit of supply in every category of goods, and companies have to be smart in the manner in which they target and approach the market place to outsmart competitors.
The Indian market is more severe in its value orientation, more so in our rural experience, than most other markets. This keeps prices low and margins under pressure, making efficient marketing an absolute imperative.
Every marketer has to work with finite and limited resources, in terms of both money and manpower. It is a simple truism that the more focused the application of these research resources in the most fertile of target areas, the better the results will be.
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The initial lack of information led to trial and error kind of decisions regarding the market, some of which were costly and made way for need for focused information and hence market research began to evolve. Agencies and organisations with urban market fortes started making efforts and the age of the commissioned study gave way to more of policy research.
ORG Retail Audit, one of the most successful market research report providers, began compiling information with substantive inputs on both urban and rural markets. Advertising agencies, media buying houses and corporates rely heavily today on this data, which has a virtual monopoly in the market in the area of information generated from the rural audit.
Today, there are many published data on the rural markets, which help the marketers unravel the dynamics of the rural market. The R.K. Swamy/BSLDO guide to market planning incorporating media coverage at the district level is another excellent source of data. Published first in 1986, it was the first time ever that the traditional rural-urban divide was broken, and the district was viewed as the composite unit for market planning.
Today, most research is structured and detailed, giving figures right up to the District or Tehsil level, making the reports informative and usable. There are reports today on the readership patterns of the rural audience, viewership patterns and also their usage habits of durables and non- durables. The behavioural details resulting in such usage, though, are currently lacking, while there is substantial data on the demographic profiles.
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Unfortunately most of the behavioural study is usually commissioned and is limited in nature, undertaken by organisations on a limited basis. Such studies are usually qualitative in nature and give specific solutions to imminent problems that the marketer might face. Applicability of such behavioural research to the general context of rural buyer behaviour is, therefore, limited.
Overall, in the context of the rural markets, most studies are quantitative in approach and give more of a situational analysis. As urban markets are more evolved and complex, more and more qualitative studies are being undertaken to assess the market. There is also a large segmentation of historical data available on behavioural issues in urban markets, as research has had a longer history there.
Rural market research is currently involved in more of demographic data analysis. Psychographic data pertaining to rural markets are still not available and this is one area where marketers rely on commissioned studies, usually region specific, for solving their current marketing problems.
Data on rural lifestyle or on reliable income sources are also a problem and marketers use occupational or land ownership as variables to segment the market. Lifestyle analysis models like P: SNAP (Pathfinders), SRI VALS might be too, early to implement in the rural settings, however, it won’t be long before marketers look for related data on rural lifestyles.
Rural Marketing Research – Scope
Rural marketing research covers different aspects of marketing of goods, services and ideas.
Rural marketing research include following areas:
1. Product Research:
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Product research is associated with the conversion of rural customer needs into tangible product offer. This includes development and testing of new products, improving the existing products and a tab on the changing customer preferences, habits, tastes etc. Product research also includes product packaging, branding and labeling decisions.
Under product research following activities are included:
i. Determining customer acceptance of proposed new products.
ii. Evaluating new products concepts.
iii. Determining current and new uses of existing products.
iv. Market testing of proposed new products or services.
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v. Simplifying product lines.
vi. Making packaging and design studies.
vii. Brand preference etc.
2. Customer Research:
This research includes investigation of rural customer buying behaviour. Rural marketing research also study the economic, social, cultural, personal and psychological influences on rural consumer buying behaviour.
Following are the activities that are included in customer research:
i. To know the demographic, psychological and behavioural aspect of rural consumers.
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ii. To study the preferences and taste of the customers.
iii. Estimating demand for the product.
iv. Determining sources of customer dissatisfaction with products.
3. Sales Research:
Sales research involves decision regarding selection of store location, channels, territories, sales force motivation, compensation etc. The purpose is to reach the target customer more effectively, efficiently and timely.
Following areas are covered under sales research:
i. Establishing sales territories.
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ii. Evaluating present and proposed sales methods.
iii. Analysing salesman’s effectiveness.
iv. Setting sales quotas and developing salesman’s standards.
v. Establishing salesman’s compensation plans.
4. Promotional Research:
Promotional research includes all efforts by the marketers to communicate the company’s offer to the rural customers. This includes advertising, public relations, publicity, sales promotion.
Following areas or activities are included in promotional research:
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i. Evaluating advertising effectiveness.
ii. Analysis competitive advertising and selling practices.
iii. Selecting advertising media.
iv. Motivational studies like motion study etc.
Rural Marketing Research – Objectives
Rural marketing research is conducted to achieve the following objectives:
1. To Know the Demographics and Psychographics of Rural Customers – Rural marketing research tries to reveal the number of facts who buy why they buy, when they buy, the frequency to their buying and the sources of their buying. Rural marketing research helps to find out the social status and the regional location of the rural customers.
2. To find out the impact of Promotional Efforts – Rural marketing research helps in finding out the effectiveness of advertising, pricing policies and other promotional tools on the rural customers. It facilitates appraising and improving the methods of sales promotion.
3. To Forecast Sales -Rural marketing research helps in sales forecasting and market planning in rural India. The researchers make sale forecast on the basis of the response from the rural customers and the distribution media.
4. To Know Rural Customer Response to a New Product – Rural marketing research is frequently used to know the opinion of the rural customers about the satisfaction given by a new product. This helps in knowing the desired improvements in quality, size, design, pricing, distribution method etc. This is also known as product testing.
5. To Anticipate Competition Moves – Rural marketing research helps the marketers to continuously monitor the competitor and judge about the right actions that might be acquired.
6. To Probe ‘What Went Wrong’ – This happens when the product is having some special problems. Marketing research help in knowing what problems the product of company is facing by conducting survey and hence, company can take immediate action against that problem. For example, Johnson & Johnson probed into the poisoning of their capsules and found that the customers felt very bad about the company.
The company launched advertising campaign whereby it offered to replace all the capsules, it owed its responsibility for any injury caused to the customers and that poisoning happened outside their factors. The company regained its image and the market share. This was possible because marketing research found the right media and message which could change customer attitude in favour of Johnson & Johnson.
Rural Marketing Research – Precautions taken while Conducting Rural Marketing Research
A marketer should consider the precautions related to rural marketing research.
The precautions that must be taken while conducting marketing research are as follows:
Precaution # 1. Based on Forecasting:
Marketing research is always based on forecasting. This is its main limitation because forecasting is based on future and future is uncertain. It means that future activities cannot be evaluated properly at present. So, at the time of marketing research, a marketer should not only consider the future activities but also the past and the present activities.
Precaution # 2. Arrangement of Adequate Funds:
At the time of marketing research, a marketing manager should also consider the funds or finance related factors because he will have to face many difficulties in the absence of money. The deficiency of money minimizes the size of samples determined for marketing research. As a result, the fewer consumers are contracted. Besides it, the doubt always remains about the accuracy of the inferences which are taken on the basis of small samples. So, the researcher should arrange sufficient money for marketing research so that the sample can be taken in adequate quantity.
Precaution # 3. Adequate Time:
A researcher requires the various types of information and facts during the time of marketing research which requires adequate time. But due to shortage of time, the marketing manager becomes impatient to obtain the report of research and he insists the researcher to give the report as soon as possible. As a result, the incomplete report is given to the marketing manager on the basis of which he takes the decision which may be harmful in the future. So, a researcher should be given adequate time for market research so that the proper report can be provided to marketing manager.
Precaution # 4. Availability of Efficient and Experienced Market Researchers:
The efficient and experiences market researchers are required for effective marketing research. A marketer may have to face various difficulties in their absence because every researcher uses the techniques and the principles of research differently. As a result the inferences derived from them can be different which create the illusionary situation for the marketer. A researcher should be efficient, experienced and skilled. He should understand that which fact is useful and which is not.
Precaution # 5. Removing the Concept of Considering as Wasteful:
In India, the marketing research is considered as wasteful activity due to which an organization does not allot its resources for the purpose of research. As a result, the work of market research discourages the researcher for giving his best. So, it should be accepted in India as a useful activity for success of market research.
Precaution # 6. Sensitivity of Rural People:
Being sensitive to the feelings of the rural people is extremely vital for conducting research in the rural market. The researchers should avoid phrases and gestures that can hurt the sensitivity of the rural people. Respondents from rural area should not feel that the researchers is highlighting their ignorance and showing his superiority over them. Acceptance or reselection of the hospitality of respondents needs to be handled with extreme tact.
Rural Marketing Research – Steps involved in the Process
Rural marketing research is carried out in a systematic and scientific manner to make it more effective and useful for marketers. The need for any marketing research areas on account of gaps in the existing information, based on which the problem is designed. The research leads to insight and a solution for that problem. There are sequential steps that apply to any research – Industrial, Commercial, Public utilities etc.
These steps are explained below:
Step # 1. Defining a Research Problem and Objectives:
The starting point for rural marketing research is the recognition of a management problem and defining business and research objectives. The foremost task in the problem discovery stage is to transform the management problem into a marketing research problem by looking at the context of the problem, the observation of the management and the exploration of the problem by putting a ‘Why to the original problem’.
Problem can also be studied in terms of business objectives and research objectives.
i. Business Objectives:
Business objectives state the purpose for which the marketer is conducting the research. Normally it is stated in terms of a tangible benefit. For Example – “To design a new product catering to rural consumers.” To design a new distribution channel for a specific product for rural markets of India.
ii. Research Objectives:
Research objectives state the expected research output, which help in taking decisions to achieve business objectives. Framing the research objectives calls for a clear understanding of the kind of information required to facilitate the decision making process. For example – To map the buying behaviour of rural consumers for sub-35hp tractors”, “To identify and profile the segments existing among rural consumer mass.
Step # 2. Determining the Research Budget:
Most marketing research project involves a certain amount of cost incurred for collecting information and analysis data. Budget decisions depend on the research approach to be used for a particular study.
Taking a budget decisions involves two major steps:
i. Specifying the approximate value of the information to be collected.
ii. Determining the maximum amount that can be spent on the study.
Once the budget is finalized, the research is designed accordingly.
Step # 3. Designing the Marketing Research Design:
The third stage of marketing research involves developing an effective design for gathering the required information which includes a decision on the research approach. The problem discovery and the consequent marketing problem definition is an incomplete process if it is done without looking at the broad dimensions of the marketing research design.
Using these three criteria, research can be classified as:
i. Purpose – Exploratory, descriptive and casual.
ii. Nature of data – Quantitative and qualitative.
iii. Sources of data – Primary and secondary.
For instance, if a company is interested in marketing its products in the rural market for the first time and the marketing manager is interested in knowing whether rural markets are attractive, they prefer a small scale survey – a sort of pilot study to assess the attractiveness of the rural market.
If the results are positive, they will go for descriptive research – a large scale survey to assess the market potential and identify strategic options. In the final stage, they may undertake experimental research to test – market the product in a few select villages to predict its success. If the result is positive, they will implement this marketing plan for the entire rural market.
Exploring Research:
When a manager is unaware of a phenomenon, they may initiate an exploratory research to gain a basic understanding of it.
Descriptive Research:
Marketers may take up descriptive research to obtain through and analytical view of it. They may opt for examination before making huge investments on it.
Quantitative Research:
Quantitative research is number driven and involves the use of structured interview questionnaires or other tools for data collection. The data thus gathered in the form of numbers. It is analyzed through various statistical techniques such as frequency and cross tabulation.
Qualitative Research:
The research does not involves any fixed format or set of questions to be answered by the respondent, instead of, the emphasis is on a free flowing interview or discussion to aid an in- depth exploration of various issues or problems. The questions asked are open-ended and unstructured. For example, “What problems do you face in the paddy cropping, describe”, “To whom do you consult when taking decisions on which type of seeds to purchase and why?”
Step # 4. Selection of Research Methods:
Next step in conducting marketing research is to decide the research methods; the marketer is to decide from where to collect data, either from primary sources or from secondary sources.
i. Primary Source of Data (Primary Research):
Primary source of data refer to the first hand original data collected by the investigators through observation, experimentation and field survey. It is not a published source of data, but has to be collected by the researcher. This data can be collected at a huge cost, but it is useful as it is collected for a specific objectives. The information may be collected directly from the customers, dealers and salesman.
ii. Secondary Source of Data (Secondary Research):
Primary data are in the shape of raw materials to which statistical methods are applied for the purpose of analysis and interpretation. But secondary data are usually in the shape of finished products as it has already been treated statistically. The significance of secondary data lies in the fact that it is available at a very low cost. It can be collected within a short period of time.
The secondary data include facts and figures which are already collected by other individuals and institutions. The sources of secondary data include publications of Government, private institutions like Trade Association and Chambers of commerce, International institutions like IMF, World Bank and data collected by other research agencies etc.
Step # 5. Selection of Sample Design:
It is a rare phenomenon that total population is taken for the purposes of analysts. The use of sample (a sub set of population) is commonly occurrence. In selection of sample design, two important decisions are taken. One is to choose the sampling method and second is to decide the sample size.
Step # 6. Designing the Research Instrument:
The research instrument can be of two types – discussion guide in the case of qualitative research and questionnaire in the case of quantitative research. A discussion guide is an unstructured measurement from that permits a range of possible responses. It includes an open-ended questions with a lot of prints for probing a particular area.
On the other hand, a questionnaire is a more structured research instrument. It involves close-ended questions and seeks definitive responses in a particular format. For example, how satisfied are you with the usage of the new tractor? Please rate your satisfaction on the following scale – completely satisfied, somewhat satisfied, neither satisfied nor dissatisfied etc.
Step # 7. Organising the Field and Collecting the Data:
Once the research instrument is decided, data must be collected from the respondent member of the sample. In qualitative research, the researcher uses discussions guides to conduct focus groups in-depth interviews. Interviews in qualitative research in rural areas are always held within the natural setting of the villages, rather than at a location that is central for the researcher and the respondent.
Interactions with respondents are mostly audio recorded for the purpose of analysis. Focus groups are conducted at caste-neutral and common village points. As far as possible, in depth interviews are conducted at the respondent’s house or at an isolated place as villagers tend to crowd around stranger.
In rural quantitative research, data is collected using a structured questionnaire. Quality control measures are important in quantitative research since it is normally conducted by the field investigators from field research agencies, who may not have clear understanding about the product category or the brand. In such a case, it is necessary to ensure that investigators involved in the field work have prior experience of conducting the research in rural areas.
Step # 8. Data Analysis:
In the case of qualitative research, the data collected in the form of notes, audio recordings is transcribed and collected in a set format. Further, content analysis is done using filters and specific colour codes to find similarities and variations in the data.
In quantitative research, data input frames are prepared in excel or SPSS software where the data captured in the questionnaires is transferred for analysis.
Broadly, three types of quantitative analysis can be done on the number of variables involved:
(1) Uni-Variate Analysis – This analysis is done using one variable at a time. For example, frequency calculation for nominal variable in terms of percentage.
(2) Bi-Variate Analysis – This analysis is done using two variables at a time. For example, cross-tabulation as well as bivariate regression can be done between two variables to ascertain the association.
(3) Multi-Variate Analysis – When three or more variables are studied at a time, we have to adopt a multi variate technique. For example, factor analysis and cluster analysis can be done with multiple variables for measuring the inter-dependence level.
Step # 9. Interpretation of Findings:
The selection of an appropriate statistical tool helps in carrying out interpretation of findings. Interpretation provides specific meaning to the data and helps convert into information. The information so generated is used to relate the findings with the work/studies that already exist. The interpretation should take place in the light of research objectives, limitations of the samples etc.
Step # 10. Reporting the Findings:
As the last step in the marketing research process, the researcher presents the findings relevant to the marketing decision to the rural marketer.
The report of the findings is prepared around the research objective of the study:
i. The executive summary provides the snapshot and key highlights of the research findings.
ii. The objective provides business and research objectives.
iii. The research methodology describes the methodology used to conduct the research study.
iv. The findings provide the detailed findings of the research.
v. The conclusion and recommendations sum up the findings and provide the way forward.
vi. Appendices provide important, additional and detailed information used in the analysis.
Rural Marketing Research – Top 5 Methods
1. Survey Method:
The survey is non-experimental, descriptive research method. Surveys can be useful when researcher wants to collect data on phenomena that cannot directly observe. Surveys are used extensively in marketing research. Data are usually collected through the use of questionnaire, although sometimes researchers directly interview subjects. With concise and straight forward questionnaire market researchers can analyze a sample group that represents their target market. The larger the sample, the more reliable their results.
2. Focus Group Method:
A focus group is a form of qualitative research in which people of a group are asked about their perceptions, opinions beliefs and attitude towards a product service, concept, advertisement idea, or packaging. Companies use focus group as a qualitative marketing research methodology to understand how people make decisions about their use of products or services. Focus group method of marketing research is more reliable for exploring new product or service ideas, understanding an organization’s brand image testing effectiveness of advertising etc.
3. Personal Interview:
Personal interviews include unstructured open ended questions. They usually last for about an hour and are typically recorded. Personal interview is normally conducted as a preliminary step in the research process to generate ideas about the subject being investigated so that these might be tested later in the survey proper. Such interviews are entirely informal and are not controlled by a specific set of detailed questions. Rather the interviewer is guided by a pre-defined list of issues. These interviews amount to an informal conversation about the subject.
4. Observation:
Observation forms another class of techniques that are particularly well suited to the rural market. It involves human or mechanical observation of what people actually do or what events take place during a buying or consumption situation. Popular forms of observational techniques include the mystery shopper or mystery customer technique to test quality of the customers experience or quality of customer service.
Others included the disposable camera technique, where respondents are asked to take the snapshots of their friends behaving naturally interacting with products being researchers.
5. Field Trial Method:
Field trial method is a kind of experimental research. Placing a new product in selected stores to customer’s response under real life selling conditions can help company to make product modifications, adjust prices or improving packaging. For example, in a sales test a new product might be tried in one store, city, state, and region. While the marketing mix was held constant elsewhere. If a sales change take place in all territories, only the net changes in the trial territory will be attributed to the new factor.
Rural Marketing Research – Some Leading Consulting Organisation
Rural market research are still in a developing stage and not much explored by corporates due to the above mentioned reasons. Some of the consultancy firms have taken initiative to create awareness about rural markets for the benefits of corporates.
Rural network alliance between the four leading marketing agencies namely- Anugrah- Madison (Chennai), MART (Delhi), Rural relations (Pune) and Sampark (Mumbai) guided and try to help companies by giving them distinctiveness of villages, so that they can develop national strategies for rural market and execute it in different regions.
Rural network which has been transformed into an industry body called Rural Marketing Agencies Association of India focuses to promote the cause of rural marketing in India.
Some of the leading rural marketing research consulting organizations are:
1. Anugrah – Madison Advertising, Chennai – with over 15 years of experience in southern India and a gross billing of Rs. 60 million, it is a sister concern of Sam Balsara’s Madison Communications.
2. Marketing & Research Team (MART), New Delhi – MART is led by the well-known rural researcher Pradeep Kashyap. MART implemented project shakti for HLL, in the Nalgonda district of Andhra Pradesh in 2001.
3. O&M Rural Communication Network, New Delhi.
4. Rural Communication & Marketing (RC&M), New Delhi.
5. Rural relations, Pune.
6. Sampark Marketing & Advertising Solutions, Hyderabad.
7. ORG-MARG.
8. NCAER.
Besides these agencies, all the leading advertising companies such as – Lintas’ linter land, Grey World wide’s Mediacom and WPP’s Broad mind, also have their separate rural marketing divisions for providing rural marketing solutions. These companies have hired creative people from small towns, who understand the psyche of the particular region.
Companies often need huge resources to invest in market research and a strong technological base to develop appropriate new products specially designed for rural markets. The large MNCs may have edge over Indian companies in this regard.
Rural Marketing Research – Difference between Rural and Urban Market Research (With Examples)
Market research in rural markets is considerably different from the urban market research. Issues like literacy level, civic amenities and infrastructure support are some key factors that affect rural market research.
Some broad differences in rural and urban market research are illustrated as follows:
Differences in Urban-Rural Market Research:
Urban:
Aspect:
1. Respondents:
Literate, brand aware, individuals respond individually.
2. Time:
Willing to respond. Have time pressures. Spare little or virtually no time to field staff.
3. Accessibility:
Easy to access, though many suffer from research fatigue.
4. Secondary Data Source:
Internal data, syndicated research, published media. Many sources and large data.
5. Primary Data Source:
Large no. of middlemen, experts, sales force, consumers and opinion leaders.
6. Sampling:
Respondents form relatively homogeneous group. Income can be criteria.
7. Data Collection:
Use of sophisticated instrument, style and administration. Respondents, comfortable with numbers, ratings and timelines.
Rural:
Aspect:
1. Respondents:
Semiliterate or illiterate, brand knowledge low. Difficult to get individual responses. Generally group response.
2. Time:
Willing to respond. Have time pressures. Spare little or virtually no time to field staff.-Hesitant initially, but once opens up, devotes time.
3. Accessibility:
Tough to access; geographical distances and psychological apprehensions are barriers. Do not speak easily to outsiders.
4. Secondary Data Source:
Very few sources and less data.
5. Primary Data Source:
Less no. of all categories.
6. Sampling:
Heterogeneous groups. Income and land holding to be carefully applied.
7. Data Collection:
Requires simplified instruments. Respondents comfortable with colours, picture and stories.
The broad differences in the rural and urban research and how the distinct differences are critical while developing a suitable research design for researching in respective markets. However, in the context of rural markets the research process is critical for two prime reasons-
i. The marketer has a limited understanding of the rural consumer; and
ii. The marketer who is urban oriented may find it useful to unlearn consumer response to decision variables in the urban market. This requires the use of research methodology that is sensitive to social processes in rural marketing.
What is important to understand is that rural markets are not as evolved as urban markets and hence it might not be appropriate to use the tools and techniques used in the urban markets. For instance, the VALE-Lifestyle Analysis model would be difficult to implement locally owing to the respondent’s lack of awareness about several issues which are usually covered in the VALS classification.
A more stripped down qualitative research will be a more feasible option. In depth interviews, observational study or open-ended questionnaire will be easy to implement.
ORG-MARG has a rural consumer panel referred to as the R panel comprising 20,000 households whose purchasing and consumption habits are monitored every day. The study covers 16 state clusters over 1000 villages and 32 FMCG product categories.
Initiative Media, the AP Lintas media buying arm developed Lin-Quest- a software package that provides marketers with data on rural India and this package helps in using the census data in an interactive manner.
MICA has also developed a report referred to as the MICA Rural Market Ratings, covering aspects of:
A. Digital Maps:
Covering all the districts in the country including those of Jammu and Kashmir is included in the maps.
These cover:
i. Boundaries of districts
ii. Location of Tehsil headquarters
iii. National highways
iv. State highways
v. Metaled roads
vi. Railway lines along with railway stations.
B. Rural Socio-Economic Indicators:
A total of 42 socioeconomic indicators are given for all the districts in the country except the 14 districts of Jammu and Kashmir.
For each district the socioeconomic indicators are classified in the following categories:
i. Demographics
ii. Major occupations
iii. Communication methods
iv. Education profile
v. Shops and other establishments
vi. Commercial banks
vii. Agriculture data
viii. Medical facilities
ix. Major crops of the district.
C. Names and Population of All Villages in India:
The data covers each of the 6,31,307 villages in the country.
Rural Marketing Research – 7 Main Benefits
Marketing is one of the most important areas of any business enterprise. Making of right type of decisions in this area determines the success of the enterprise. Correct and sound marketing decision can be made only if right type of information is available to the management. The required information can be made available by conducting marketing research. The importance of marketing research has increased because of severe competition in the market, frequent technological changes and the emergence of buyer’s market.
A business enterprise can derive the following benefits by conducting the rural marketing research:
Benefit # 1. Help in Implementation of Marketing Concept in Rural Areas:
Rural marketing research is the corner stone of the marketing concept. No business enterprises can claim to be customer centred without the performance of the marketing research function. Rural marketing research is a valuable tool of management to implement the marketing concept in rural areas and to take various decisions to satisfy the demands of rural customers.
Benefit # 2. Help in Assessing Product Acceptance:
Rural marketing research helps in knowing the probability of acceptance of product in rural areas. Such type of research may lead to alterations in design, colour and other features of the product to make it more acceptable to the rural consumers.
Benefit # 3. Help in Understanding New Markets:
Rural marketing research helps in discovering new markets or areas in rural India and also help in understanding the behaviour of various types of rural consumers.
Benefit # 4. Help in Forecasting Demand:
Rural marketing research helps in forecasting of demand for the products of the firm. As in rural markets or areas most of income of people is seasonal. So, it is very difficult to forecast demand in rural areas. But, rural marketing research helps in forecasting demand and adjusting the production schedules accordingly in rural areas.
Benefit # 5. Help in Rightful Promotion:
Rural marketing research reduces wasteful expenditure on production and advertisement. It tells in advance about the product and services which are required by the customer.
Benefit # 6. Help in Determining Suitability of Channels and Assessment of Middleman:
Rural marketing research can be used to study the effectiveness of existing channel of distribution, advertising, sales promotion activities and other marketing activities in rural areas. Marketing research also helps in knowing the reaction of the middlemen in regard to the company’s marketing policies. This may lead to the discovery of new lines of production which can be taken up along with the existing product lines.
Benefit # 7. To Reduce Uncertainty by Providing Information that Facilitates Decision Making by Marketers:
This is done by defining the problem and looking at it in terms of strengths, weakness, opportunities and threats. It helps to know the company’s capabilities and shortcoming and the way out in terms of alternative solutions. Marketing research is useless unless it is carried by taking customer requirements into account. The managerial value of marketing research is that it gives reading available field assistance in achieving the organisational objectives.
Rural Marketing Research – Limitations
Conducting research in the rural market is not as simple as it might be in the case of urban markets.
The challenges that are likely to be faced by the researchers and the limitations that have been observed in conducting rural marketing research are as follows:
1. Nature of Rural Market:
Rural market is widely scattered, highly heterogeneous and geographically, a very large territory. Therefore, conducting a rural market research is a costly and time consumption proposition.
2. Low Literacy Levels:
The low level of literacy in rural India makes it difficult for villagers to understand questions or respond to western ratings and rankling tools. This calls for continuous innovation in questionnaire design scales.
3. Paucity of Rural Marketing Research Budget:
The budget assigned for marketing research is usually very limited and within that too, the share of amount allocated for conducting research in rural market is quite inadequate.
4. Local Language Communication:
There are 22 official languages in India, each with multiple dialects, making communication extremely difficult for researchers. It also means that a questionnaire needs multiple translations and accordingly, separate training seasons for field investigations.
5. Lack of Uniformity in Secondary Data:
There is great variation in the data that is made available or published about the rural market in secondary sources. This makes it difficult for the decision makers to decide which one of them is correct and which is not. Different reputed organizations like National Sample Survey (NSS), National Council of Applied Economic Research (NCAER) etc. Sometimes come out with very different figures about the rural market potential.
6. Lack of Facilities in Rural Areas:
It might again be somewhat difficult and tough for investigators from urban centers to conduct research in rural areas which do not have the facilities, comfort, convenience and infrastructure of urban areas. Thus investigators might not conduct research in an appropriate manner in the hurry to get back to their comfortable environment, to which they are used to.
7. Difficulty in Interacting with Woman Respondents:
Women in some part of the country like Rajasthan and parts of UP remain behind urban. If the respondents include women, it makes the job more difficult for the male researchers.
8. Interview Timing:
Normally men to go work in fields or other areas in the morning and return only in the evening. Women are busy in the morning and evening with looking and other household work. Researchers need to plan their day as per the availability of the respondents.
9. Comprehension of Research Tools:
On account of the lack of literacy, many of the rural people may not be in position to articulate their views in an immaculate manner. Therefore, the typical 5 or 7 points scales that are effective in urban areas, may not be that useful in rural areas. Researchers need to employ tools and symbols that the rural people are more familiar with, rather than use the conventional tools.
10. Rule out Revalidation of Data:
Validation of data over the telephone in rural areas is difficult due to the poor network coverage in the remote villages of India. Also physical validation is not feasible as it is expensive to travel again to far flung and scattered villages.
11. Sensitivity of Rural People:
Being sensitive to the feelings of the rural people is extremely vital for conducting research in the rural market. The researchers should avoid phrases and gestures that can hurt the sensitivity of the rural people. Respondents from rural area should not feel that the researchers is highlighting their ignorance and showing his superiority over them. Acceptance or reselection of the hospitality of respondents needs to be handled with extreme tact.
Sampling, remote, scatters and tiny village is a really painful task for researchers. This also requires long durations of travel by the researcher and overnight stays. Getting access to a varied cross-section of the rural population for conducting research is very challenging in rural areas.