Marketing: Market Research, the Marketing Mix and Strategy
Market research
Marketing is identifying and satisfying customer needs profitably. Market research may be primary (surveys, interviews, observation, focus groups) or secondary (published reports, government statistics, company records). Understand sampling (random, quota, stratified), questionnaire design (avoid leading questions), and the cost versus accuracy trade-off. Market segmentation divides buyers by demographics, geography, income, lifestyle or behaviour.
The marketing mix and strategy
The 4Ps - product, price, place, promotion - plus people, process and physical evidence for services. Candidates must explain product life cycle (introduction, growth, maturity, decline), branding, packaging and product differentiation, pricing strategies (penetration, skimming, cost-plus, competitive, psychological), distribution channels (direct, retailer, wholesaler) and the promotion mix (advertising, sales promotion, personal selling, public relations, sponsorship). Marketing strategy links research findings to mix decisions.
Traps to watch
- Confusing primary and secondary data.
- Recommending 'advertise more' without linking to the identified market segment.
- Mixing skimming (high launch price) with penetration (low launch price).
- Ignoring the channel of distribution when discussing price - each intermediary adds cost.
Worked example / rule of thumb
A new bakery in Francistown surveys 100 customers (primary, quota sample) and finds price sensitivity high; it launches with low prices to build share - penetration pricing. Rule of thumb: match each P to a finding from the research; an unsupported P is a lost mark.