Marketing: market research, the marketing mix and marketing strategy
Domain 4: Marketing: market research, the marketing mix and marketing strategy
The exam tests how businesses identify customer needs, collect and use market information, and combine the marketing mix to reach a target market.
Core rules
- Market research reduces risk. Primary research collects new data (surveys, interviews, observation, focus groups). Secondary research uses existing data (statistics, reports, competitor websites).
- A sample must be representative; bias arises if only friends or one location are asked. Larger samples cost more but usually improve reliability.
- Market segmentation divides customers by age, income, location, lifestyle or use. A target market is the segment chosen.
- The marketing mix (4Ps): Product (features, branding, packaging, life cycle), Price (skimming, penetration, cost-plus, competitive), Place (distribution channel, retailer, online), Promotion (advertising, sales promotion, public relations, personal selling).
- Product life cycle: development, introduction, growth, maturity, decline. Strategy changes at each stage.
- A USP (unique selling point) helps a brand differ from competitors.
Worked example
A small Windhoek firm develops a new soap. It runs a questionnaire with 200 randomly selected shoppers and two focus groups (primary research). It finds customers want a low-cost family soap. Because the soap is new and competition is strong, it uses penetration pricing - a low introductory price - and sells through local supermarkets and social media. This mix matches the target segment: price-sensitive families. Later, when repeat sales are established, it may raise the price.
Traps
Do not call a focus group secondary research. Do not confuse a sample with the whole population. Do not treat promotion as the whole marketing mix. Do not recommend penetration pricing for a luxury brand without reasoning.