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2007Thomson South Western Allrightsreserved Chapter1TheRoleofMarketingResearch 2007Thomson South Western Allrightsreserved 1 2 LEARNINGOUTCOMES ExplainwhymarketingresearchisessentialtobusinesssuccessDefinemarketingresearchIdentifythedifferencebetweenappliedandbasicresearchExplainhowmarketingresearchisrelevanttoproduct pricing promotion anddistributiondecisionsDiscusshowmarketingresearchhelpsthefirmdevelopandimplementstrategyIdentifythesituationsthatcallformarketresearchandthosethatdon tDescribehowtechnologyandinternationalizationareaffectingthewayresearchisconductedandused Afterstudyingthischapter youshouldbeableto 2007Thomson South Western Allrightsreserved 1 3 TheNatureofMarketingResearch UnderstandingtheValueEquationCompaniesmustproducebundlesofbenefitsthatconsumerswillviewasvaluable Keyquestions Whatdowesell Howdoconsumersviewourcompany Whatdoesourcompany productmean Whatdoesourcompany productmean Marketingresearchcanhelpacompanyachievethegoalofcreatingvaluableexperiencesforcustomers 2007Thomson South Western Allrightsreserved 1 4 TheNatureofMarketingResearch Marketingresearchisoneoftheprincipaltoolsforansweringquestionsbecauseit Linkstheconsumer customer andpublictothemarketthroughinformationusedtoidentifyanddefinemarketingGenerates refines andevaluatesmarketingactionsMonitorsmarketingperformanceUnderlinestheunderstandingofmarketingasaprocess 2007Thomson South Western Allrightsreserved 1 5 MarketingResearch MarketingResearchDefinedThesystematicandobjectiveprocessofgeneratinginformationforaidinmakingmarketingdecisionsTheprocessincludes SpecifyingwhatinformationisrequiredDesigningthemethodforcollectinginformationManagingandimplementingthecollectionofdataAnalyzingtheresultsCommunicatingthefindingsandtheirimplications 2007Thomson South Western Allrightsreserved 1 6 AppliedandBasicMarketingResearch AppliedResearchResearchconductedtoaddressaspecificmarketingdecisionforaspecificfirmororganization BasicResearchResearchconductedwithoutaspecificdecisioninmindthatusuallydoesnotaddresstheneedsofaspecificorganization AttemptstoexpandthelimitsofmarketingknowledgeingeneralIsnotaimedatsolvingapragmaticproblem 2007Thomson South Western Allrightsreserved 1 7 MarketingResearchExamples AppliedResearch ShouldMcDonald saddItalianpastadinnerstoitsmenu BasicResearch Doconsumersexperiencecognitivedissonanceinlow involvementsituations 2007Thomson South Western Allrightsreserved 1 8 TheScientificMethod ScientificMethodThewayresearchersgoaboutusingknowledgeandevidencetoreachobjectiveconclusionsabouttherealworld Theanalysisandinterpretationofempiricalevidence factsfromobservationorexperimentation toconfirmordisprovepriorconceptions 2007Thomson South Western Allrightsreserved 1 9 EXHIBIT1 1ASummaryoftheScientificMethod 2007Thomson South Western Allrightsreserved 1 10 AdoptingtheMarketingConcept MarketingConcept 2007Thomson South Western Allrightsreserved 1 11 TheMarketingConcept MarketingConceptAcentralideaofmarketingthatinvolvesfocusingonhowthefirmprovidesvaluetocustomersmorethanonthephysicalproductorproductionprocessCustomer oriented decisionsaremadewithaconsciousawarenessoftheireffectontheconsumer Emphasisonlong runprofitabilityratherthanshort termprofitsorsalesvolume Cross functionalperspective marketingisintegratedacrossotherbusinessfunctions 2007Thomson South Western Allrightsreserved 1 12 BusinessOrientations Product orientedFirmAfirmthatprioritizesdecisionmakinginawaythatemphasizestechnicalsuperiorityintheproductProduction orientedFirmAfirmthatprioritizesefficiencyandeffectivenessoftheproductionprocessesinmakingdecisions 2007Thomson South Western Allrightsreserved 1 13 EXHIBIT1 2BusinessMarketingOrientations 2007Thomson South Western Allrightsreserved 1 14 EXHIBIT1 3Long RunProfitability 2007Thomson South Western Allrightsreserved 1 15 KeepingCustomersandBuildingRelationships RelationshipMarketingTheideathatamajorgoalofmarketingistobuildlong termrelationshipswiththecustomerscontributingtotheirsuccess Asalenotastheendofaprocessbutisthestartoftheorganization srelationshipwithacustomer marketerswantcustomersforlife Managingtherelationshipsthatwillbringaboutadditionalexchanges satisfiedcustomerswillreturntoacompanythathastreatedthemwell 2007Thomson South Western Allrightsreserved 1 16 MarketingResearch AMeansforImplementingtheMarketingConcept Marketingresearchcanhelp maximizecustomersatisfactionwithpurchaseidentityafter saleservicespreventcommercializationofproductsthatarenotconsumer orientedidentifyoptimalpricingtomaximizeprofitabilityincreasesalesefficiencythrougheffectiveuseofmarketdata 2007Thomson South Western Allrightsreserved 1 17 TheManagerialValueofMarketingResearchforStrategicDecisionMaking Developingandimplementingamarketingstrategyinvolvesfourstages IdentifyingandevaluatingmarketopportunitiesAnalyzingmarketsegmentsandselectingtargetmarketsPlanningandimplementingamarketingmixthatwillprovidevaluetocustomersandmeetorganizationalobjectivesAnalyzingfirmperformance 2007Thomson South Western Allrightsreserved 1 18 IdentifyingandEvaluatingOpportunities Monitoringthecompetitiveenvironmentforsignalsindicatingabusinessopportunity HelpsmanagersrecognizeproblemsandidentifyopportunitiesforenrichingmarketingeffortsMotivatesafirmtotakeactiontoaddressconsumerdesiresinawaythatisbeneficialtoboththecustomersandtothefirm Identifieschangesincustomerneeds uses anddemandforproducts 2007Thomson South Western Allrightsreserved 1 19 AnalyzingandSelectingTargetMarkets Geo DemographicsReferstoinformationdescribingthedemographicprofileofconsumersinaparticulargeographicregion Oncethecompanyknowsthegeo demographicsofamarketsegment itcaneffectivelycommunicatewiththosecustomersbychoosingmediathatreachthatparticularprofile Example ArchitecturalDigestmagazine 2007Thomson South Western Allrightsreserved 1 20 PlanningandImplementingaMarketingMix Marketingresearchcanbeusedtosupportspecificdecisionsaboutaspectsofthemarketingmix Itisessentialthatanoverallresearchplaninvolveallelementsofmarketingstrategy 2007Thomson South Western Allrightsreserved 1 21 TypesofMarketingMixResearch ProductResearchAllapplicationsofmarketingresearchthatseektodevelopproductattributesthatwilladdvalueforconsumers ConcepttestingBrand nameevaluationPackagetestingPricingResearchInvolvesfindingtheamountofmonetarysacrificethatbestrepresentsthevaluecustomersperceiveinaproductafterconsideringvariousmarketconstraints 2007Thomson South Western Allrightsreserved 1 22 TypesofMarketingMixResearch cont d DistributionResearchStudiesaimedatselectingretailsitesorwarehouselocationsinsupportofthedistributionchannel MarketingChannelAnetworkofinterdependentinstitutionsthatperformthelogisticsnecessaryforconsumptiontooccur SupplyChainAnothertermforachannelofdistribution meaningthelinkbetweensuppliersandcustomers 2007Thomson South Western Allrightsreserved 1 23 TypesofMarketingMixResearch cont d PromotionResearchInvestigatestheeffectivenessofadvertising premiums coupons sampling discounts publicrelations andothersalespromotions Mediaresearchhelpsbusinessesmakedecisionsaboutwhichmediaalternativesarebestsuitedtoconveytheintendedmessage Promotion thecommunicationfunctionofthefirmresponsibleforinformingandpersuadingbuyers 2007Thomson South Western Allrightsreserved 1 24 TheIntegratedMarketingMix IntegratedMarketingCommunicationConceptAllpromotionalefforts advertising publicrelations personalselling eventmarketing andsoforth arecoordinatedtocommunicateaconsistentimage IntegratedMarketingMixResearchstudiesofteninvestigatetheeffectsofvariouscombinationsofmarketingmixelementsonimportantoutcomeslikesalesandimage 2007Thomson South Western Allrightsreserved 1 25 AnalyzingMarketingPerformance TotalValueManagementTryingtomanageandmonitortheentireprocessbywhichconsumersreceivebenefitsfromacompany PerformanceMonitoringResearchResearchthatregularly sometimesroutinely providesfeedbackforevaluationandcontrolofmarketingactivity Whatwentright wrongandwhy MarketingMetricsQuantitativewaysofmonitoringandmeasuringmarketingperformance 2007Thomson South Western Allrightsreserved 1 26 WhenisMarketingResearchNeeded Thedeterminationoftheneedformarketingresearchcenterson TimeconstraintsTheavailabilityofdataThenatureofthedecisiontobemadeBenefitsversuscosts thevalueoftheresearchinformationinrelationtocosts Willthepayofforrateofreturnbeworththeinvestment Willtheinformationimprovethequalityofthemarketingdecisionenoughtowarranttheexpenditure Istheexpenditurethebestuseoftheavailablefunds 2007Thomson South Western Allrightsreserved 1 27 EXHIBIT1 4DeterminingWhentoConductMarketingResearch 2007Thomson South Wester

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