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EXAMINATION : MARKETING RESEARCH (MR)

MARKETING RESEARCH: THEORY 3
(MRT301)

DATE : 24 OCTOBER 2013

TIME ALLOWED : 3 HOURS
TOTAL MARKS : 100
MATERIAL SUPPLIED : DSTV RIDES THE WAVE

INSTRUCTIONS TO CANDIDATES:

1. Please refer to the examination rules and regulations as found in the

examination answer book.

2. Answer ALL the questions.

3. Read each question carefully to determine exactly what is required before

attempting the answer.

4. Set your answers out in a systematic way under appropriate headings and
sub-headings.

5. Number your answers clearly.

6. IMPORTANT: Indicate the questions attempted by drawing a circle around the

question number on the front cover of the answer book.

NOTE:

• Examination answer books are the property of the IMM GSM and may not be
removed from the examination hall.

• Answers to examination questions should not include appendices in the form

of personal notes to the examining panel.

© IMM Graduate School of Marketing

October 2013 Examination MR/MRT301
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Answer ALL the questions

QUESTION 1 [45]

You are employed as a marketing assistant at a company that imports computer

games for distribution through retailers in South Africa. Your manager wants to
import a new computer game that is very successful in China, but has asked for your
input on conducting some market research prior to launching the product.

1.1 Identify the steps in the marketing research process for your manager.
Explain briefly what is involved in each step. (25)

1.2 Explain the advantages and disadvantages when choosing between internal or
external research. (10)

1.3 What factors should be considered when deciding to use an external research
supplier? (10)

QUESTION 2 [35]

2.1 Problem definition is the most important step in a research project. Distinguish
between identifying and defining the marketing problem versus the research
problem. (10)

Read the attached case study entitled ‘DStv Rides the Wave’ and answer the
following questions:

2.2 Identify the marketing problem facing DStv. Translate this into the research
problem. (6)

2.3 Outline two (2) of the key research objectives that a market research agency
would have to answer to DStv. (4)

2.4 What basic research design should be taken to provide insights into these
research objectives? Motivate your answer. (5)

2.5 Suggest appropriate methods of primary data collection, and motivate your
answer. (10)

QUESTION 3 [20]

3.1 What is meant by ‘descriptive statistics’? (4)

3.2 Discuss the difference between measures of central tendency and measures
of dispersion. List three (3) of each measure, and illustrate the differences by
using diagram(s). (16)

EXAM TOTAL: 100

© IMM Graduate School of Marketing
October 2013 Examination MR/MRT301
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‘DStv Rides the Wave’ case study

DStv was voted the Coolest SA Company for 2013 by Generation Next, in the annual 8 – 23
year old youth brand survey, and as reported in the Sunday Times in June 2013. It displaced
BMW, which had held the top spot for several years.

The vote in favour of DStv was hugely swayed by the techno-savvy kids and pre-teens
interviewed, as opposed to the older teen or young adult vote, as kids see DStv as a highly
visible brand, a great employer and community brand, home to many of their favourite
characters and shows.

According to Simon Camerer, Chief Marketing and Sales Officer for Multi-Choice, which
markets and distributes the DStv offering: “As a company that provides entertainment, our
mandate is to make sure that we entertain – and we aim to do that across the board. We are
providing genre-based entertainment, be it movies or kiddies’ cartoons or celebrity-type
content, that appeals to youthful viewers, and we are programming it in a way that is
appealing and relevant to them.”

DStv is transmitted via digital satellite, and can be consumed on multiple digital devices,
including tablets and smartphones, and is also very active in the social media space – it
enables ‘content discovery’, to help customers to see and experience the array of content on
offer.

However, while DStv is the dominant subscription service in South Africa, there are some
potential threats to its dominance. The first is changing consumer behaviour, driven by
technology innovations: media consumption habits are changing. The concept of a family
sitting around the TV in the evening, passively consuming broadcast content, is dying. In its
place, people are watching video from a number of online sources, from YouTube to Hulu
and from iTunes to Netflix, and they’re not doing it only on big-screen TVs but also on
laptops, tablets and smartphones. In addition, as the country moves from analogue to digital
terrestrial television (e.g. SABC 1, 2, and 3 and e-tv), this will promote a greater number of
channels on offer, as well as making fast Internet access in remoter regions of the country
more affordable using next-generation mobile broadband services (this phenomenon is
known as the ‘digital dividend’).

Furthermore, there is the threat of competition. While TopTV, launched in May 2010 as a
competitor in the pay-TV subscription market, has been struggling to gain subscribers, with
only 140 000 subscribers versus the over 3,9m of DStv, there is the prospect that ICASA (the
Independent Communications Authority of SA that regulates the industry), could issue more
licences, and lift the 20% limitation on foreign ownership, which could bring in some
international players with large marketing and financial muscle. So far DStv has managed to
counter the competition by sewing up much of the sport coverage, particularly PSL soccer,
and with their Lite bouquet for the lower-income customers which was launched at around
the same time as TopTV’s commercial launch. However, there is also the threat of growth in
the online piracy market, despite the poorer quality. Could DStv continue to ride the wave of
dominance, or would subscribers switch to other providers, either subscription service
providers or other media providers?

(Sources: Financial Mail, Sunday Times)

© IMM Graduate School of Marketing

October 2013 Examination MR/MRT301