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The Research Process Outlets–the Place Decision 2 Chapter Objectives Define market research. Explain how businesses use market research. Identify the steps used in the research process. Explain how businesses make the place decision as part of the marketing mix. Discuss direct and indirect channels of distribution. 3 Research and the Marketing Concept Market research is a way for companies to get to know their customers. Large companies use surveys and focus groups as part of their market research. market research the process of systematically collecting, recording, analyzing, and presenting data related to marketing goods and services 4 Steps in the Research Process The five steps in the research process are: 1. Identify the problem. 2. Conduct secondary research. 3. Select and design primary research. – Observation method continued secondary research published data that have been collected for some other purpose primary research original research conducted for a specific marketing situation observation method research technique that involves watching actual behavior and recording it 5 Steps in the Research Process 4. Collect data. – Census – Sample – Data mining 5. Report and analyze. census a study that counts everyone in the research population sample a number of people who are representative of a study’s population – Qualitative-research data – Quantitative-research data 6 1. Name the five steps in the research process. 2. What is the difference between secondary and primary research? 3. What are the three types of primary research methods? 7 Place Decision Place decisions involve how you get your product into the hands of your customer. Reaching each type of customer (business customer or ultimate customer) requires a different channel of distribution. 8 Channels of Distribution Direct Channels: Direct marketing – Telephone sales – Print – Television – E-mail and the Internet direct channel the path a product takes without the help of any intermediaries between the producer and consumer direct marketing marketing activities to sell products directly to customers through the use of a customer database 9 Channels of Distribution Indirect Channels: Agents Wholesalers Retailers indirect channel the path a product takes using intermediaries between the producer and the consumer Multiple Channels: Involves more than one type of distribution channel to reach customers 10 Channels of Distribution Direct Channel Manufacturer Consumer Indirect Channel Manufacturer Wholesaler Retailer Consumer Web Site Multiple Channels Wholesaler Consumer Manufacturer Retailer 11 Weaving a Ticketweb Venues both large and small offer Operating an e-tail business on an electronic channel—the ticketing, or use services Web—can be costly,electronic due to design, delivery, returns, and operating expenses.such as Ticketmaster or Ticketweb to offer tickets. When you order online, pay acompanies convenience fee—but you Though Many largeryou dot-com crashed in the 1990’s, small stores like You Harris never have to wait in line. canCyclery chooseoftoWest haveNewton, paper Massachusetts, actually sales using basicnot, Web tickets shipped to you for aincrease price. But more oftena than site. Today, Harris’s bicycle business rides people in on people decideatothird useofthe “Will Call” option that allows to get hard-to-find and personal service. to the pickWeb up tickets at the time ofparts the event. Describe an e-business’s home page to your class after For more information on sports and entertainment marketing, one through marketingseries.glencoe.com. goviewing to marketingseries.glencoe.com. 12 1. What does the place decision involve? 2. List several different distribution methods. 3. What are three basic types of intermediaries in an indirect channel of distribution? 13 Checking Concepts 1. Define market research. 2. Explain how businesses use market research. 3. List the steps used in the market-research process. 4. Explain the three primary research methods and when each should be used. continued useful 1. Experiment 2. 3. 4. Defining They Identify use the aitis for when you need to draw marketing product problem, conduct problem conclusions from the and development, secondary systematically interaction of variables; collecting pricing, research, promotional select and observation is useful analyzing activities, and design data primary so because it allows freedom for collect recommendations distribution, research, and interpretation; can bereport customer data, madesurveys and to enable the marketer to improve satisfaction. analyze data. a correlate information business. about purchases to demographic data. 14 Checking Concepts 5. Describe how primary research data are collected, reported, and analyzed. 6. Identify how businesses make the place decision as part of the marketing mix. research data 5. Primary 6. The place decision are collected must focus through on the census, sample, or target market, so data mining; qualitative businesses must data are reported in be awareform, of and paragraph only inferences whether they can arebe drawn, not conclusions; marketing to quantitative data are business reported with graphs or customers or charts with analysis ultimate written in accompanying consumers. paragraphs. continued 15 Checking Concepts 7. Explain the appropriate channels of distribution for a product. Critical Thinking 8. Explain why a city government would conduct market research before bringing in a minor league baseball team. 7. There 8. The city are must direct channels ofif there determine distribution were enough if the company interest and wants to sell its product financial resources without to support such a intermediaries and team. indirect channels which use agents, wholesalers, and retailers. 16 17 End of