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.

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

2. Conduct secondary

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?

1.

2.

3.

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:

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

– E-mail and the

Internet

Channels of Distribution

Indirect Channels:

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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

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Manufacturer Consumer

Direct Channel

Manufacturer

Indirect Channel

Wholesaler Retailer 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.

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.

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?

1.

2.

3.

13

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

1.

2.

3.

4.

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

5.

6.

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.

17

End of