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TheRoleofMarketingResearchinManagementDecisionMaking ChapterOne Copyright 2002South WesternCollegePublishingCo LearningObjectives 1 Toreviewthemarketingconceptandthemarketingmix 2 Tocomprehendthemarketingenvironmentwithinwhichmanagersmustmakedecisions 3 Todefinemarketingresearch 4 Tounderstandtheimportanceofmarketingresearchinshapingmarketingdecisions 5 Tolearnwhenmarketingresearchshouldandshouldnotbeconducted LearningObjectives 6 Tounderstandthehistoryofmarketingresearch 7 Toexaminecareeropportunitiesinmarketingresearch Toreviewthemarketingconceptandthemarketingmix Marketing Theprocessofplanningandexecutingtheconception pricing promotion anddistributionofideas goods andservices TheMarketingConcept 1 aconsumerorientation 2 agoalorientation 3 asystemsorientation TheNatureofMarketing DecidingWhethertoConductMarketResearch TheHistoryandFutureofMarketingResearch TheRoleofMarketResearchinDecisionMaking TheProfoundImpactoftheInternet Tocomprehendthemarketingenvironment IdentifyingTargetMarketsandResearchingtheMarketingMix TheOpportunisticNatureofMarketingResearch Amarketingmix Theuniqueblendofproduct service pricing promotion anddistributionstrategiesdesignedtoreachaspecifictargetmarket TheNatureofMarketing TheHistoryandFutureofMarketingResearch TheRoleofMarketResearchinDecisionMaking TheProfoundImpactoftheInternet TheExternalMarketingEnvironment Alteringthemarketingmixbecauseofchanges DecidingWhethertoConductMarketResearch Todefinemarketingresearch MarketingResearchDefined Theplanning collection andanalysisofdatarelevanttomarketdecisionmakingandcommunicationoftheresultsofthisanalysistomanagement TheImportanceofMarketingResearchtoManagement descriptivefunctiondiagnosticfunctionpredictivefunction TheNatureofMarketing TheHistoryandFutureofMarketingResearch TheRoleofMarketResearchinDecisionMaking TheProfoundImpactoftheInternet DecidingWhethertoConductMarketResearch Tounderstandtheimportanceofmarketingresearch TheParamountImportanceofKeepingExistingCustomers ManagersMustUnderstandtheEver ChangingMarketplace TheNatureofMarketing TheHistoryandFutureofMarketingResearch TheRoleofMarketResearchinDecisionMaking TheProfoundImpactoftheInternet TheUnrelentingdriveforQualityandCustomerSatisfaction DecidingWhethertoConductMarketResearch Tounderstandtheimportanceofmarketingresearch TheProactiveRoleofMarketingResearch Aproactivemanagement altersthemarketingmixtofitnewlyemergingpatternsineconomic social andcompetitiveenvironmentsnewopportunitiesdevelopsalong runmarketingstrategy TheNatureofMarketing TheHistoryandFutureofMarketingResearch TheRoleofMarketResearchinDecisionMaking TheProfoundImpactoftheInternet DecidingWhethertoConductMarketResearch AppliedResearchversusBasicResearch AppliedresearchTobetterunderstandthemarket BasicresearchToexpandthefrontiersofknowledge Tounderstandtheimportanceofmarketingresearch TheNatureofMarketing TheHistoryandFutureofMarketingResearch TheRoleofMarketResearchinDecisionMaking TheProfoundImpactoftheInternet DecidingWhethertoConductMarketResearch TheNatureoftheAppliedResearchDependsontheTypeofResearchConducted ProgrammaticresearchTobetterunderstandthemarket SelectiveresearchToexpandthefrontiersofknowledge EvaluativeresearchToassessprogramperformance Tounderstandtheimportanceofmarketingresearch TheNatureofMarketing TheHistoryandFutureofMarketingResearch TheRoleofMarketResearchinDecisionMaking TheProfoundImpactoftheInternet DecidingWhethertoConductMarketResearch AdvantagesofInternetSurveys RapidDevelopment RealTimeReportingDramaticallyReducedCostsReadilyPersonalizedEaseandConvenienceEncourageRespondentParticipationContacttheHard to Reach Tounderstandtheimportanceofmarketingresearch TheNatureofMarketing TheHistoryandFutureofMarketingResearch TheRoleofMarketResearchinDecisionMaking TheProfoundImpactoftheInternet DecidingWhethertoConductMarketResearch OtherUsesoftheInternetbyMarketingResearchers ReplacementoflibrariesandprintedmaterialsDistributionofrequestsforproposalsandproposalsCollaborationbetweentheclientandtheresearchsupplierDatamanagementandon lineanalysisOralpresentationsofmarketingsurveys Tounderstandtheimportanceofmarketingresearch TheNatureofMarketing TheHistoryandFutureofMarketingResearch TheRoleofMarketResearchinDecisionMaking TheProfoundImpactoftheInternet DecidingWhethertoConductMarketResearch Tolearnwhenmarketingresearchshouldandshouldnotbeconducted Inanumberofsituationsitisbestnottoconductmarketresearch TheNatureofMarketing DecidingWhethertoConductMarketResearch TheHistoryandFutureofMarketingResearch TheRoleofMarketResearchinDecisionMaking TheProfoundImpactoftheInternet ALackofResourceslackoffundsinsufficientfundstoimplementdecisionsfromresearchResearchResultsWouldNotBeUsefulClientsmaybehard pressedtousetheinformation Tolearnwhenmarketingresearchshouldandshouldnotbeconducted TheNatureofMarketing DecidingWhethertoConductMarketResearch TheHistoryandFutureofMarketingResearch TheRoleofMarketResearchinDecisionMaking TheProfoundImpactoftheInternet PoorTimingintheMarketplaceMarketingresearchshouldnotbeundertakeniftheopportunityforsuccessfulentryintoamarkethaspassed TheDecisionHasAlreadyBeenMadeMarketingresearchmaybeusedimproperly Tolearnwhenmarketingresearchshouldandshouldnotbeconducted TheNatureofMarketing DecidingWhethertoConductMarketResearch TheHistoryandFutureofMarketingResearch TheRoleofMarketResearchinDecisionMaking TheProfoundImpactoftheInternet WhenManagersCannotAgreeonWhatTheyNeedtoKnowtoMakeaDecisionThewrongphenomenamightbestudiedWhenDecision MakingAlreadyExistsFurtherresearchmayberedundantandcostlyWhentheCostsofConductingResearchOutweightheBenefitsPotentialnewproductswithlargeprofitmarginsmayhaveagreaterpotential Tounderstandthehistoryofmarketingresearch TheNatureofMarketing DecidingWhethertoConductMarketResearch TheHistoryandFutureofMarketingResearch TheRoleofMarketResearchinDecisionMaking TheProfoundImpactoftheInternet TheDevelopmentofMarketResearchTheInception Pre 1900EarlyGrowth 1900 1920TheAdolescentYears 1920 1950TheMaturingofMarketingResearch 1950toPresent TheDecisionWhethertoConductMarketResearch Costlikelytobegreaterthanbenefit e g eyeglassesreplacementscrew Small Possiblebenefitsgreaterthancost e g ultraexpensivesportswear MarketSize SmallProfitMargin LargeProfitMargin Benefitslikelytobegreaterthancosts e g Stouffersfrozenentries Benefitslikelytobegreaterthancosts e g medicalequipment Large Table1 2 TheEnd Copyright 2002South WesternCollegePublishingCo TheMarketingResearchIndustry Copyright 2002South Western ThomsonLearning CHAPTERtwo LearningObjectives 1 Toappreciatethestructureofthemarketingresearchindustry 2 Tocomprehendthenatureofcorporatemarketingresearchdepartments 3 Tolearnthevarioustypesoffirmsandtheirresearchfunctionsinthemarketresearchindustry 4 TounderstandtheimpactoftheInternetonthemarketingresearchindustry 5 Tolearnwhousesmarketingresearch 6 Tounderstandthegrowingimportanceofstrategicpartnering 7 Toappreciatethetrendsinglobalmarketingresearch Level1 PrimaryInformationUsers CorporateMarketingDepartments TheultimateusersofmarketingresearchMarketingresearchdataisneededto 1 Determinehowtargetswillreacttoalternativemarketingmixes 2 Evaluatesuccessofoperationalmarketingstrategies 3 Assesschangesintheexternalenvironment Tolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch TheEvolvingStructure Tolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch TheEvolvingStructure CorporateMarketingResearchDepartments TheMarketingResearchIndustry TheInternetImpact UsersofMarketingResearch StrategicPartneringandGlobalResearch GeneralCategoriesofInstitutionsInvolvedinMarketingResearch KraftGeneralFoods Institution Activities Functions andServices Level1 Corporatemarketingdepartments Table2 1 Level2 Adagencies Level3 Syndicatedservicefirms Customoradhocresearchfirms Level4 Fieldservicefirms Specializedfirms Others J WalterThompson ACNeilson MarketFacts subcontract specializedsupportservices government universities Level1 Level2 Level3 Level4 InformationUsers ResearchDesignersandSuppliers DataCollectors Respondents Figure2 1 TheStructureoftheMarketingResearchIndustry 4 Identifynewtargetmarkets 5 Createnewmarketingmixesfornewtargetmarkets Level2 InformationUsers AdAgencies servescorporateclientsmaybeultimateusersofresearchdatamainbusiness thedevelopmentandexecutionofadcampaigns Tolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch TheEvolvingStructure Level3 ResearchDesignersandSuppliers sellresearchservicesdesignresearchstudiesanalyzeresultsmakerecommendationstoclienttheydesignresearch manageitsexecution andbuydatacollectionfromotherfirms Tolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch TheEvolvingStructure Level4 DataCollectors Fieldservicefirmscollectdatafor syndicatedresearchfirmscustomresearchfirmsadagenciescorporations Tolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch TheEvolvingStructure Only15percentofservicecompaniessuchasFederalExpressandDeltaAirlineshavemarketingdepartmentswithmorethat10employees Companiesareconductinglessresearchinternally Ourattentionwillbedevotedtomarketingdepartmentsfoundinthemoresophisticated largercompanies Tolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch CorporateMarketingResearchDepartments Level3 TheBigMarketingResearchCompanies Fourlargestfirmsintheindustry A C NielsenCorporationretailmeasurementservicesIMSHealthIncorporatedpharmacyandhospitalaudits Tolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch TheMarketingResearchIndustry InformationResourcesIncorporatesTracksweeklysalesandpriceformassmerchandisersNielsenMediaResearch Televisionindustry Tolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch TheMarketingResearchIndustry Level3 CustomorAdHocResearchFirms One of a kindmarketingresearchprojects Level3 SyndicatedServiceFirms Collectandsellthesamemarketingresearchtomanyfirms Level4 FieldServiceFirms Datacollectionspecialistsonasubcontractbasisforcorporatemarketingresearchdepartments Tolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch TheMarketingResearchIndustry CybermarketingResearchFirms GreenfieldOnline claimstohavetheworld slargestInternet basedmarketingresearchpanel Vividence evaluatestheeffectivenessofwebsites MediaMetrix tracksthepopularityofwebsites RelevantKnowledge NetRatingsNielsonMediaResearch TheInternetImpact Tounderstandtheimpactoftheinternetonthemarketingresearchindustry CyberSupportFirms ToprovidesupportinconductingInternetsurveys WebSurveyorCyberdata TheInternetisChangingtheWayOld LineMarketingResearchSupportOrganizationsDeliverTheirProductSurveySamplingIncorporated SSI Claritas Tounderstandtheimpactoftheinternetonthemarketingresearchindustry TheInternetImpact OtherOrganizationsandIndividuals Specialcontributionstomarketingresearchgovernmentagenciesuniversitybureausprofessors TounderstandtheimpactoftheInternetonthemarketingresearchindustry TheInternetImpact Tolearnwhousesmarketingresearch ExternalClients VendorsFranchisees InternalClients Newproductdevelopment pricingTopManagement sUseofResearchOtherUsersofMarketingRese
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