Market Research and Marketing the Venture
This domain tests the research process and how a venture turns findings into a marketing mix. Expect questions on primary and secondary data, sampling, questionnaire design, segmentation, targeting, positioning and the marketing mix.
Core rules and concepts
- The research process: define the problem, choose data sources, design the instrument, collect, analyse and report.
- Primary data is collected for the problem; secondary data already exists. Secondary data is cheaper but may be dated or mismatched.
- Quantitative research measures numbers; qualitative research explores reasons. A sample must represent the target population.
- Avoid leading, double-barrelled and vague questionnaire items.
- STP: segment the market, target attractive segments, then position the offer against competitors.
- The marketing mix is product, price, place, promotion, people, process and physical evidence. Promotion should communicate benefits, not only features.
Worked example
A bakery considers gluten-free bread. Secondary data shows rising health awareness, but no local sales figures exist. A survey of 60 customers finds 40% would buy weekly at N$45, but only 15% at N$60. Reasoning: the survey is a convenience sample, so results are indicative, not representative. The bakery should test a small batch at N$45, promote through in-store sampling, and track repeat purchases before buying a dedicated oven.
Traps that cost marks
- Asking leading questions such as 'Don't you agree our bread is better?'
- Treating a small convenience sample as the whole market.
- Confusing features with customer benefits.
- Choosing promotion before defining the target segment and position.