RESEARCH AND THE MARKETING CONCEPT Successful Business = Knowing your customer!!!!
RESEARCH AND THE MARKETING CONCEPT Market Research the process of systematically collecting, recording, analyzing, and presenting data related to marketing goods and services. Market Research Benefits: Product Development Pricing Promotional Activities Distribution Customer Satisfaction
STEPS IN THE RESEARCH PROCESS Identify the problem Conduct Secondary Research Select and design primary research Collect data Report and analyze data
STEP 1: IDENTIFY THE PROBLEM ASK QUESTIONS!!!! Asking a question that research can help answer. See pg. 123 in textbook.
STEP 2: CONDUCT SECONDARY RESEARCH Secondary Research: Published data that have been collected for some other purpose. Internal Data- sales reports/reports on merchandise returns and complaints. External Data- books, magazine articles, Internet Secondary research is done before primary research because secondary research answers all or part of research problem or question.
STEP 3: SELECT AND DESIGN PRIMARY RESEARCH Primary Research: Original research conducted for a specific marketing situation. Research Methods: Experiment Survey Observation
STEP 3: SELECT AND DESIGN PRIMARY RESEARCH Experiment Changing ticket price to a minor league baseball game to see if ticket sales increase Independent Variable being manipulated or changed Ticket Price Dependent Variable Affected by change made by the independent variable Ticket Sales
STEP 3: SELECT AND DESIGN PRIMARY RESEARCH Observation Method Research technique that involves watching actual behavior and recording it. See pg. 125
STEP 3: SELECT AND DESIGN PRIMARY RESEARCH Survey Asking questions of participants in a study. Focus Group- panel of 6 to 10 people who are brought together to discuss their feelings, reactions, and attitudes regarding a product, promotion, or some other topic. Questionnaires- written surveys that can be administered in person, by telephone, fax, mail, or online.
Collect Data Depends on the survey tool and characteristics and needs of the population being surveyed. Research Methods Advantages & Disadvantages: Mail/Fax- return rate Online Surveys- duplication of responses by one participant (inaccurate results) Census- study that counts everyone in the research population. Sample- number of people who are represented in a study’s population. Data Mining- used to find out and predict information such as: Market Segmentation Customer or client profiling. Fraud detection Success or failure of promotions. Credit risk or acceptability STEP 4: COLLECT DATA
STEP 5: REPORT AND ANALYZE DATA Reporting Qualitative Research Data (Subjective) Research data reported in paragraph format. No conclusions can be drawn, only inferences—an interception drawn from the facts. Reporting Quantitative Research Data (Objective) Data can be reported in graphs and charts with analysis or interpretation, written in accompanying paragraphs of text. Link the report information to the objectives of the study.
RESEARCH AND INTERPRETATION All the data, observations, and analyses that are recorded and reported can be used to help make decisions about how to satisfy the needs and wants of customers.
PLACE DECISION Place decision = how to get your product to your customer.
CHANNELS OF DISTRIBUTION The path a product takes from the producer or manufacturer to the customer.
CHANNELS OF DISTRIBUTION Direct Channel- the path the product takes without the help of any intermediaries between the producer and consumer. Example: Business products with high value are marketed directly from the producer to the business user. Distributing Services: Services Customers Fantasy Football Games Direct Marketing- marketing activities to sell products directly to customers through the use of a customer database or list of current/potential customers.
CHANNELS OF DISTRIBUTION Direct Marketing Continued…. Telephone Sales- selling activities in which a live person or recording calls a number in the database to inform the potential customer about a product or service. Print- catalogs, advertising magazines. Television- infomercials, Home Shopping Network Email and the Internet- obtain information without leaving home. Purchase products with access from a computer.
CHANNELS OF DISTRIBUTION Indirect Channel- the path a product takes using intermediaries, or people or services in the middle of a transaction, between the producer and consumer. Example: Manufacturer sells sporting goods to retailers who turns around and sells those products to customers. Agents, wholesalers, and retailers are all intermediaries. Agents: do not take ownership of the goods they sell. Bring sellers and buyers together for a fee. Wholesalers : resellers who buy goods, store them, sell them in smaller quantities to retailers or sports organizations. Retailers- sell goods directly to customers. Sells products to customers for their personal use.
CHANNELS OF DISTRIBUTION Multiple Channels The use of multiple channels involves more than one type of distribution channel to reach customers. Example: Nike is an athletic shoe and apparel company that uses multiple channels to sell its products to customers. Website, retail store, commercials, sells products to retailers such as Foot Locker.
CHANNELS OF DISTRIBUTION Manufacturers /Producers Agents Wholesalers Retailers Consumers Direct Indirect
CHANNELS OF DISTRIBUTION Trying It Out: Many businesses will start with one distribution channel and experiment with others until they find the mix that lets their business grow.