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 Market research is a way for companies to get to know their customers. market research the process of systematically collecting, recording, analyzing, and presenting data related to marketing goods and services 4 Large companies use surveys and focus groups as part of their market research.

Steps in the Research Process The five steps in the research process are: secondary research published data that have been collected for some other purpose 5 primary research original research conducted for a specific marketing situation 1.Identify the problem. observation method research technique that involves watching actual behavior and recording it secondary research 2.Conduct secondary research. primary research 3.Select and design primary research. –Observation method continued

Steps in the Research Process census a study that counts everyone in the research population 6 sample a number of people who are representative of a study’s population 4.Collect data. –Census –Sample –Data mining 5.Report and analyze. –Qualitative-research data –Quantitative-research data

Name the five steps in the research process. What is the difference between secondary and primary research? What are the three types of primary research methods?

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 Channels: 9 direct channel the path a product takes without the help of any intermediaries between the producer and consumer Direct marketing direct marketing marketing activities to sell products directly to customers through the use of a customer database –Telephone sales –Print –Television – and the Internet

Channels of Distribution Indirect Channels Indirect Channels: 10 indirect channel the path a product takes using intermediaries between the producer and the consumer Agents Wholesalers Retailers Multiple Channels: Involves more than one type of distribution channel to reach customers

Channels of Distribution 11 Manufacturer Consumer Direct Channel Manufacturer Indirect Channel WholesalerRetailer Consumer Manufacturer Multiple Channels Web Site Retailer Wholesaler Consumer

Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.marketingseries.glencoe.com Weaving a Ticketweb 12 never have to wait in line. You can choose to have paper tickets shipped to you for a price. But more often than not, people decide to use the “Will Call” option that allows people to pick up tickets at the time of the event. For more information on sports and entertainment marketing, go to marketingseries.glencoe.com.marketingseries.glencoe.com Venues both large and small offer electronic ticketing, or use services such as Ticketmaster or Ticketweb to offer tickets. When you order online, you pay a convenience fee—but you

What does the place decision involve? List several different distribution methods. What are three basic types of intermediaries in an indirect channel of distribution?

Define market research. 14 Explain how businesses use market research. Defining a marketing problem and systematically collecting and analyzing data so recommendations can be made to improve a business. 1.They use it for product development, pricing, promotional activities, distribution, and customer satisfaction. 2. List the steps used in the market-research process. Identify the problem, conduct secondary research, select and design primary research, collect data, report and analyze data. 3. Explain the three primary research methods and when each should be used. Experiment is useful when you need to draw conclusions from the interaction of variables; observation is useful because it allows freedom for interpretation; surveys enable the marketer to correlate information about purchases to demographic data. 4. Checking Concepts continued

Describe how primary research data are collected, reported, and analyzed. 15 Identify how businesses make the place decision as part of the marketing mix. Primary research data are collected through census, sample, or data mining; qualitative data are reported in paragraph form, and only inferences can be drawn, not conclusions; quantitative data are reported with graphs or charts with analysis written in accompanying paragraphs. 5. The place decision must focus on the target market, so businesses must be aware of whether they are marketing to business customers or ultimate consumers. 6. Checking Concepts continued

There are direct channels of distribution if the company wants to sell its product without intermediaries and indirect channels which use agents, wholesalers, and retailers. 7. Explain why a city government would conduct market research before bringing in a minor league baseball team. 16 Critical Thinking Explain the appropriate channels of distribution for a product. The city must determine if there were enough interest and financial resources to support such a team. 8. Checking Concepts 7. 8.

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