Page 121 - DMGT509_RURAL MARKETING

Rural Marketing

Notes 3. Multiple methods: To increase credibility marketing people use several methods together.
4. Value and cost of information: Marketing persons have to find out the cost to value ratio
of the MR. For example, if the MR is to find the extra sale on decreasing the price to some
extent, and it is found that the cost of research outweighs the profit benefit, such MR
should not be undertaken. For example, if the increase in sales is likely to bring extra
profits of rupees ten lacs, and the research is going to cost twelve lacs, it is not worthwhile
to conduct the MR.

5. MR Managers must take a close look at the assumptions made by the marketing personnel,
as they may be lopsided.
6. MR should not use the survey, to sell the product.

Managers are sparsely using Marketing Research because of the following reasons:
1. When marketing team has a problem with some options and Market Research cannot pin
point a solution it makes MR of not much use. Only with a well-defined problem can the
MR provide the right answers.
2. When MR personnel are not fully qualified to do the job, they will not be able to get the
right answers.
3. MR takes time to be complete in all respects to give valuable market insight. When time
is not enough MR may not give correct results.

4. Market research reports sometimes give only indications, trends and not concrete facts,
which is not appreciated by the marketing team.
Students should plan Market Research objectives in view of the above and develop a questionnaire
for the same.

6.6 Discussions in a Tractor Firm

Given below is an imaginary discussion between the Managing Director and Marketing Manager
of a tractor manufacturing company, who are scanning the Indian market to enter the same after
achieving big success in the western markets like Europe and the USA.

MM, “We have seen the growth of Indian’s tractor market. In the last three years it has been
growing at a steady rate of five per cent, which is much better than the growth of negative two
percent in the developed world. However, like us, a number of MNC’s are in the field. Now we
have to plan our strategy for entering this growing yet difficult market. What are your ideas on
the matter.”
MD, “I believe there is still big room for players like us who believe in their product and
customized service which no one can provide. You should be trying for at least seven per cent
market share in the second year of our operation.”
MM, “I would like to organize a market survey to know what the market wants and who would
buy our rather higher priced products.”

MD, “By all means get your market information updated, keep me informed and let us plan our
marketing strategies based on your information. Please organize MR, and send your
recommendations within a period of three months, covering the North Indian markets.”
The MR report says:
1. Tractor manufacturers, are coming out with latest innovations and they try to educate the
buyers about the same. Most of the time the customers are unaware of the benefits the

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