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Abdul Haseeb Ahmed M.V.Nanda Kishore Gaurav Chauhan Sarthak Kumar Patel Shantanu Khare
Learning Objectives
Recognize the importance of information in marketing decision making Appreciate the Diff b/n in rural and urban marketing research Process of marketing research and the special tools required in the rural context Know about the research business and the major research agencies in india
Evolution
Before 1980s: Thomson Rural Market Index
Developed by Hindustan Thompson Associates in 1972 Database providing info on Market Potential Value(MPV) of a particular district Determine potential on basis of demographic factors & overall agricultural potential of district Useful for segmenting RM for Agri inputs and durables Limitations Provide info upto District level not individual villages Non-agricultural activities not taken into account
Significance of Information
Types of Decisions
Strategic Decision Making - Deciding on the objectives,
resource policies and strategies of the organization Eg Introduction of a new Product Starting a new Branch Adoption of new Technology
Sources of Information
1. Gathering intelligence
Sales Force
Periodical letters, meetings, seminars
Middlemen Staff
Scanning publications Browsing internet Attending meetings, conferences, seminars and workshops
Company
Participating in industrial exhibitions, development programmes and sponsoring events
2. Internal Reporting
Sales invoices
Product type, size and pack type by territory or consumer Avg volume of sales by territory or sales person
Orders received
Extent of customer service acceptance level
Stockhodings
Ascertain stocks in line with demand
3. Marketing research
The systemic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company
Ad hoc & specific problem oriented Continuous in order to gather info about the trends
Price
Promotion
Current Mkt Territorycoverage allocation Target coverage models Sales and ad expenditure data AIDA model Promotion elasticity
Marketing Research
Market research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. -Philip Kotler
Defining Problems
A problem well defined is a problem half solved. Methods:
Funneling or narrow-down method Problem audit Background analysis Situation analysis Model development
Marketing research is conducted when EVPI is greater than the cost of obtaining it. Budget decision involves two steps
Specifying the approximate value of information. Determining the maximum amount that can be spent.
Exploratory research:
It loosely structured and the basic premise is to provide direction to subsequent, more structured method of enquiry. To gain familiarity with a phenomenon or to achieve new insights into it. Also called Formulative Research.
Descriptive research:
The main goal of this type of research is to describe the data and characteristics about what is being studied. To portray accurately the characteristics of a particular individuals, situation or a group.
Causal research:
Explores the effect of one or more variables on other variable(s), with reasonable level of certainty by controlling the impact of other influencing variables.
Exploratory Know the variables Natural learning (Class room) Small non-probability samples Subjective opinions Secondary and Primary on a small scale Hypothesis Indicative Growth directions, behavioral trends
Descriptive Describe the variables Class room Large probability and non-probability samples Subjective opinions Primary
Casual Verify and validate relationship Lab experiments, field experiments Small probability samples Objective behavior Primary
Descriptive research :
In rural markets, this kind of research is more useful for companies looking for information on consumer preferences, consumer behavior, brand loyalty. Agri-input companies selling seeds, pesticides, fertilizers, farm equipment will be interested in conducting this.
Example:
Bsnl might ask it customers to rate it over all service as Good Bad Poor Very poor
This kind of scaling technique cannot be used in rural areas as the respondents are less educated.
Qualitative Research:
No fixed set of questions The discussion happens b/n interviewer and the respondent The respondents own thoughts and feelings are determined.
Example:
HUL personnel may stop a consumer who have purchased Lux and ask him/her why he/she has chosen the soap.
Research of this sort is mostly done face-face employing one or more following techniques
Observation Interviews Group decisions Focus groups Participatory research meathod
Methods
Methods
Purchasing from other sources Scanning available databases
Contd..
Merits
Accurate first hand information
Merits
Economical and easier to obtain
Demerits
Expensive Time consuming
Demerits
Data gaps Non- availability of relevant data
Application
Consumer purchase process Brand loyalty Promotion effectiveness
Application
Trends in income, savings and consumption Demand estimation Understanding of Changing lifestyles
Sampling Methods
Random Sampling Stratified Sampling Cluster Sampling Quota Sampling Convenience Sampling Judgment Sampling Purposive Sampling Snowball Sampling
Sampling Size
Factor Time Available Accuracy Cost Population Large More High High Heterogeneous Small Less Low Low Homogeneous
Controlling
Supervising the data collection with respect to time and cost Checking the data for validation Carrying out corrections if any.
The entire research depends on the efficiency, effectiveness and ethical integrity of the investigators. Dos & Don'ts
Dos
Appearance Greetings Language and culture Rapport Investigation Overcoming limitations Dont pretend Avoid direct inquiry Dont touch Avoid suspicious behavior Dont become controversial
Donts
Participatory Approaches
Participant observation (PO) Rapid rural appraisal (RRA) Participatory rural appraisal (PRA) Participatory action research (PAR)
Drawbacks of PRA
Time deadlines Credibility Hijacking Formalism Disappointment Conflict of interest
Innovative Tools
Rural scaling techniques : Ladder Images of faces Colours Dice Carom coins/Rummy coins/Stacks Playing card Pigeon hole 3 point rating scale
Rural Vs Urban
Respondents
Urban consumers are educated and posses better comprehension and presentation skills. Rural consumers are semi or illiterate. They cannot understand sophisticated terms and tools.
Time
Urban life is very time bound. They are hard pressed for time. So they are willing to spare less time for researchers. On the contrary rural life is not hard pressed for time. They may devote time for researchers.
Accessibility
It is easy to access urban people geographically and psychologically as they know the importance of market research. Rural people are difficult to reach because of physical distances and apprehensions about researchers.
Sampling
Respondents form relatively homogeneous groups in urban markets. Income can be a criterion. Heterogeneous groups. Income and land holding to be carefully applied.
Data Collection
Respondents in comfortable with timelines. urban markets numbers, ratings are and
Rural people require simplified instruments. Respondents are comfortable with nave approaches of categorization like colours, pictures and stories.
Pradeep Kashyap Father of Rural Marketing Pradeep Lokhande Founder of rural relations R.V.Rajan Founder of RMAAI
Case Study
Q1.Evaluate the questionnaire and suggest improvements? Q2.Evaluate the research design in aspects Research Purpose Sample Scope Data Collection Quantitative versus qualitative data Primary versus secondary data