Rural Marketing Research

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.
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
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:
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.
12. Inaccessible Roads:
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.