Marketing 2A

COMKA2
Chapter 5
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 Eduvos and the Flipped Classroom

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Before this lecturer-led session During this lecturer-led session After this lecturer-led session

At home, in your self-study time, you During your lecturer-led session(s), you will Depending on how difficult this lecturer-led
worked through myLMS content to prepare engage with your peers and lecturer in session is, your lecturer may recommend
you for this lecturer-led session. You have active learning. I.e. you will have an some concepts to revise for this week's
completed any practice activities and opportunity to ask your questions, to learning opportunities. Then you will focus
prepared any questions you may still have debate topics and to practice working on the following learning opportunities on
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not be a traditional lecture. learnt at home. You will be exposed to for the next lecturer-led session(s).
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lecturer will guide you on what to prepare
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3
 Thank you for preparing for this lecture

Let’s recap the myLMS learning activities that helped you prepare for this lecture
What will be covered in the rest of today’s session?

What will be covered in the lecture-led session:

Marketing research

Marketing research process

Measuring market demand

The scope of marketing research
Definition:

Marketing research is the function that links the consumer, customer and public to the
marketer through information—

• information used to identify and define marketing opportunities and problems;

• generate, refine and evaluate marketing actions;
• monitor marketing performance;
• and improve understanding of marketing as a process.

Marketing research specifies the information required to address these issues, designs
the method for collecting information, manages and implements the data collection
process, analyses the results and communicates the findings and their implications
(Kotler et.al; 2022: 125).
Basics of marketing research

“Common sense of an experienced businessman is as good as, if

not better than, findings from marketing research.”.

Discuss this statement – do you agree/disagree? Motivate your

answer
Basics of marketing research

A successful business requires both experience and data-driven

insights.

While an experienced businessperson's intuition is valuable,

marketing research provides objective data on consumer
behaviour, market trends and competition.

✅ Agree: Experience helps make quick decisions, spot

opportunities and understand customers based on past
interactions.

❌ Disagree: Marketing research reduces risk, validates

assumptions and provides insights that personal experience alone
might miss.

Balanced view: The best approach combines business intuition

with market research to make informed, strategic decisions.
Steps in doing marketing research
Step 1: Define the problem,
Step 2: Develop the research plan
Step 3 Collect data
Step 4: Analyse data
Step 5: Make the decision

Source: Villegas, F. n.d. Research process Steps: What they are + How to Follow. [Online] Available at:
https://www.questionpro.com/blog/research-process-steps/ [Accessed: 8 February 2024]
Steps in doing marketing research
In your groups, apply the marketing research steps to the development of
a new alcoholic Coca-Cola sub-brand with whiskey and Coca-Cola zero.

Step 1: Define the problem,

Step 2: Develop the research plan
Step 3 Collect data
Step 4: Analyse data
Step 5: Make the decision
 Steps in doing marketing research
11️⃣Define the problem – Coca-Cola must determine if there is demand for a low-sugar whiskey and Coca-Cola
mix. Key questions: Do consumers want an alcoholic Coke? Who is the target market?

2️⃣Develop the research plan – Use surveys, focus groups and taste tests to gather insights. Analyse
competitor products and market trends in SA’s alcoholic beverage industry.

3️⃣Collect data – Conduct taste-testing events at bars and liquor stores, use social media polls and analyse
sales data of similar whiskey-based drinks.

4️⃣Analyse data – Identify trends: Which age groups prefer it? Do urban or suburban consumers show more
interest? Measure demand and consumer taste preferences.

5️⃣Make the decision – If research shows strong demand, Coca-Cola can launch with bold branding, digital
ads and influencer marketing targeting millennials and Gen Z.
 Steps in doing marketing research
In the previous answer, we mentioned Focus Groups – what is a focus group and how do
marketers use focus groups? Watch this video to learn more:

TED-Ed (2017). How do focus groups work? - Hector Lanz. YouTube.

Available at: https://www.youtube.com/watch?v=3TwgVQIZPsw
[Accessed 4 February 2025].
‌

After watching the video, give your own definition of a focus group and
identify one example of a company who you think uses focus groups.
Steps in doing marketing research
Focus group – A small, diverse group discusses a product or service, guided by a
moderator. Helps marketers understand consumer perceptions, preferences and
behaviour.

Example: McDonald’s SA uses focus groups to test new burger flavours before adding
them to the menu.
Steps in doing marketing research
What is ethnographic research and why is it important?

• Ethnographic research – A qualitative method where researchers

observe and interact with people in their natural environment to
understand behaviours, cultures and preferences.

• Why is it important? – Provides deep consumer insights, helps

brands improve product design, marketing strategies and customer
experiences.

• Example: Pick n Pay observes shoppers in-store to optimise aisle

layouts and promotions for better customer flow.
Steps in doing marketing research
Watch the video that gives a good summary of the research
process.
Source: Professor Wolters. 2020. The Basics of the Marketing Research Process.
[Online] Available at:
https://www.youtube.com/watch?v=b4us4bNwAsc&ab_channel=ProfessorWolters
[Accessed: 4 February 2025]
Measuring market demand

One of the factors we can define in

marketing research is market demand.

What is market demand and why is it

important?
 Measuring market demand
📈 Market demand – The total quantity of a product or service that
consumers are willing and able to buy at a set price over a specific time.

💡 Why is it important? – Helps businesses forecast sales, plan production

and allocate resources efficiently.

📌 Example: The rising demand for solar panels in South Africa as more
households seek alternative energy solutions. ☀️

Understanding the marketing environment and conducting marketing research can

help to identify marketing opportunities. The company must then measure and
forecast the size, growth and profit potential of each new opportunity.

Refer to Kotler et.al 2022: 136 for further study

 Activity
Kotler, Keller, Chernev (2022) p136 - 137 list the key concepts in demand
measurement as follows:
In your groups, choose a brand or product of your choice and in your own words,
explain how this McDonald’s would address each of these terms.

• Market demand
• Company demand
• Market forecast
• Company sales forecast
• Market potential
• Company sales potential

Kotler, Keller, Chernev (2022) pp 136 – 137, Marketing Management, 16 ed, Pearson, United
Kingdom
 Activity: Answer
📈 Market demand – Total demand for a product/service in a market.
Example: McDonald's offers affordable fast food to meet global demand. 🍔

🏢 Company demand – The share of market demand a company can capture.

Example: McDonald's analyses brand strength, competition and sales data to set targets. 📊

🔮 Market forecast – Predicting future demand based on trends.

Example: McDonald's uses trend analysis and customer surveys to adjust its menu and
marketing. 📉

📊 Company sales forecast – Estimating future sales using internal and external factors. Example:
McDonald's considers historical sales, promotions and seasonal trends. 💰

🌍 Market potential – Maximum demand under ideal conditions. Example: McDonald's assesses
demographics and purchasing power to identify expansion opportunities. 🚀

🎯 Company sales potential – Maximum sales volume based on resources.

Example: McDonald's evaluates brand strength, operations and distribution to optimise sales.
 What Happens Next?
• Please work through the content for Week 2,
Lesson 5.

• Do the activities within Week 2, Lesson 5.

• It is important to have a thorough understanding of
the following:

• Managing customer retention acquisition and retention

• Managing customer satisfaction and loyalty

• Customer relationships and lifetime value

Bibliography
Kotler, P. and Armstrong, G. 2016. Principles of Marketing: Global and Southern African
Perspectives. 2nd Edition. Cape Town: Pearson Holdings
‌ rofessor Wolters. 2020. The Basics of the Marketing Research Process. [Online] Available at:
P
https://www.youtube.com/watch?v=b4us4bNwAsc [Accessed 4 February 2025]
Professor Wolters. 2019. Basics of Marketing Research. [Online] Available at: https://
www.youtube.com/watch?v=xdh0H0qvUNc [Accessed 4 February 2025]
TED-Ed (2017). How do focus groups work? - Hector Lanz. YouTube. Available at:
https://www.youtube.com/watch?v=3TwgVQIZPsw [Accessed 4 February 2025].
Villegas, F. n.d. Research process Steps: What they are + How to Follow. [Online] Available at:
https://www.questionpro.com/blog/research-process-steps/ [Accessed 4 February 2025]