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
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and
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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