The Research Process Outlets–the Place Decision 2

Chapter Objectives Define ____________ _____________. Explain how businesses use market research. Identify the steps used in the ____________ process. Explain how businesses make the place decision as part of the marketing ____. Discuss direct and indirect channels of ______________. 3

Research and the Marketing Concept Market research Market research is a way for companies to get to know their customers. market research: 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: 5 primary research: 1.Identify the problem. observation method: secondary research 2.Conduct secondary research. primary research 3.Select and design primary research. –Observation method continued

Steps in the Research Process Census: 6 Sample: 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: Direct marketing direct marketing: –Telephone sales –Print –Television – and the Internet

Channels of Distribution Indirect Channels Indirect Channels: 10 indirect channel: 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. List the steps used in the market-research process. Explain the three primary research methods and when each should be used. 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. Checking Concepts continued

Explain why a city government would conduct market research before bringing in a minor league baseball team. 16 Explain the appropriate channels of distribution for a product. Checking Concepts 7. 8.