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 Topics for learning
ï Process of rural marketing
ï Primary data collection focusing on data collection methods,
measurement and scaling methods, questionnaire design and
sampling.
ï Rural realities to arrive at do¶s and don¶ts for researchers
ï Major players in rural research business

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Introduction
ï The rural market is still a great mystery.
ï Urban marketers have knowledge of urban markets and since
they do not have knowledge of rural markets they apply the same
marketing strategies for the rural markets also.
ï Just like Foreigners had a stereotyped image of India as a land of
snake charmers, marketers too have stereotyped image of rural
people.
ï However just like the urban India has changed, similarly rural
India has also drastically changed.
ï The need of the hour is to understand those changes by
conduction some primary research and then suitably formulate
out marketing strategies.

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Introduction
ï Rural India has witnessed lot of socio, cultural, economical,
demographic and technological changes in environment.
ï The consumer behaviour has changed a lot in past few decades.
ï Whatever data we have today is from secondary sources hence
for our specific requirements it may not be very useful.
ï Conduction rural research is therefore advisable, if not with a
large sample, at least a small sample, instead of only depending
on secondary data for research.
ï There are difficulties however in conducting rural marketing
research as rural areas may not be fully accessible, they are not
literate so questionnaires have to be simple and easy to
understand.

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Research Objectives and design
ï Since only recently companies have started to enter rural markets
so research objectives should be kept simple.

ï The study should be exploratory and investigative in nature.

ï Keep the sample size small.

ï Customer satisfaction,brand tracking or market share

measurement studies are presently not the subject of research as
companies are still looking for a road map to enter rural India.

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Types / Topics of rural research
ï 4A¶s of rural marketing - Acceptability, Awareness, Availability,
Affordability.

ï U & A (Usage and Attitudes) or KAP (Knowledge, Attitude and

Practices)

ï Feasibility

ï Mapping Distribution, Promotion and communcation Channels

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Secondary Data Research
ï There are several secondary sources for rural data, but most
of them are centered around demography and are not product
related and hence not usable by markets.

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Primary Data Colection
ï Normally in depth interviews and focus group discussions are
used to collect data in rural areas
ï The rural people don¶t quite understand and appreciate the
value of market research.
ï Therefore the researcher should make the purpose of his visit
clear and explain how it could benefit villagers in the long
run.
ï This will reduce the suspicion rural people have when urban
strangers knock at their doors or enter their homes
unannounced.

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Primary Data Colection
ï 2 techniques are used for primary data collection.
ï 1. Participatory Rural Appraisal (PRA)- a participatory tool
that gets the participants of the research process (respondents)
to be actively involved in research. PRA is a set of
approaches and methods to enable rural people to share,
enhance and analyse their knowledge of life and conditions,
to plan and, to act. Therefore, it arouse the curiosity and
interest of people and they voluntarily and eagerly get
involved in the process and they enjoy sharing and analysing
about themselves.
ï 2. Focus Group Discussion (FGD)

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Measurement and scaling methods
ï The tolls and techniques should be simple and easy to
understand

ï Make use of visual and colours

ï Ensure involvement of respondents

ï Empower the respondents

ï Do not use complex rating scales instead use faces for rating,
wheel with different colours

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Šuestionnaire Design
ï Šuestions should be simple and direct

Why do you think you don¶t need to use a mobile phone?

(indirect)
Why would you consider using a mobile phone? (direct)
Šuestions should be self explanatory

Šuestions should not be ambiguous

Šuestions should have logical flow.

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Sampling
ï Sampling is mostly convenience sampling
ï One has to keep into mind several factors such as
ï population spread,
ï scattered and remote location,
ï population of the village,
ï occupation profile,
ï religion ± Hindu dominated or Muslim dominated villages
ï tribal population ± tribal or non tribal
ï income category

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Do¶s and Don¶ts in rural market research
ï 1. Village people are simple so were simple clothes. Address
them as Ram Ram or local greeting

ï 2. The researcher should be familiar with local languages and

dialect

ï 3. Establish a rapport by discussing an issue of importance to

them but not related to the study.

ï 4. Build conversation gradually towards the topic.

ï 5. Explain the purpose of the study very clearly.

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Do¶s and Don¶ts in rural market research
ï 6. Tell the respondent that his responses will help the
company in brining out better products for the village people

ï 7. Listen actively to his concerns.

ï 8. Occasional physical contact with males can be done only

after a rapport has been built but certainly not with a woman.

ï 9. Issues sensitive to respondents should be carefully handled

Ex-while asking about their literacy level, the interviewer
instead of asking ³Aap padhe likhe hain kya´/
Should ask ³Aap kitna padhe huye hain?´

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Do¶s and Don¶ts in rural market research
ï 10. Male researchers should always interview females in
houses in which males are present.
ï 11. Rapid fire questions should not be asked, take breaks in
between
ï 12. Interviewers should request people gathered in groups not
to prompt the respondents.
ï 13. Interviewers should not get very friendly with
respondents.
ï 14. The Researcher should always carry water, food and a
first aid kit with himself while going to rural areas.

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Places suitable for Conducting research
ï Retail shop

ï STD booth

ï Tea stall

ï Playground

ï Chaupal

ï Haat

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai

 Rural Market research players
ï NCAER ± It conducts large scale national sample surveys on
demographics, consumer durables and non durables both in
urban and rural
ï IMRB(SRI) The social and rural research Institute was set up
in 1990 with the objective of conducting social research of
and for rural markets.
ï AC Nielson ORG-MARG-The ORG centre for Social
Research has emerged as one of the largest social research
consultancy organizations, offering its services in almost all
fields of development planning and management, from
conceptualization to final implementation.
ï MART ± was set up in 1993 as a specialist rural markeitng
and livelihoods promotion agency.

Rural Vs Urban Markets, Neeraj Dixit, IES Mumbai