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John Willey & Son, Inc,1,Medical Supply CompanyInvestigatingRisk in purchasing onlinePrice of medical/hospital gownsCompetition, especially onlineTarget market behaviorDesigned Glass ManufacturerIncreasing market in East and North DallasImprove Promotional aspects of businessOther products: Stained Glass, Faux Stained Glass, and Etched Glass ,Faux Iron,Project,John Willey & Son, Inc,2,Nickname (what youd like to be called) Full Name, Major, HometownGoal for the classSchool Status: full-time or part-time, year (jr), (or hours completed)Current Job, company name and locationCareer Aspirations (CEO, president of a company, own a company and what area)Career Plans (plan to get to career aspirations)Business Background (courses or actual experience)Comments (anything pertinent that you want me to know),Introduction,Copyright 2006John Wiley & Sons, Inc.,The Role of Marketing Research in Management Decision Making,John Willey & Son, Inc,4,To define marketing researchTo understand the importance of marketing research in shaping marketing decisionsTo learn when marketing research should and should not be conductedTo learn how the Internet is changing marketing research,Learning Objectives,John Willey & Son, Inc,5,To review the marketing concept and the marketing mix.,Nature of Marketing,MarketingThe process of planning and executing the conception, pricing promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organization objectivesMarketing ConceptConsumer OrientationGoal OrientationSystems Orientation,John Willey & Son, Inc,6,To define marketing research.,Marketing Research and Decision Making,Marketing Research DefinedThe planning, collection, and analysis of data relevant to market decision making and communication of the results of this analysis to management.The Importance of Marketing Research to ManagementDescriptive functionDiagnostic functionPredictive function,John Willey & Son, Inc,7,Paramount importance of existing customersCustomer retention Marketing researchUsed to understand customers needs and to satisfy those needsLeads to customer satisfactionUnderstand the ever-changing market place,To define marketing research.,Marketing Research and Decision Making,John Willey & Son, Inc,8,To understand the importance of marketing researching shaping marketing decision.,Proactive Role of Marketing ResearchProactive management:alters the marketing mix to fit newly emerging patterns in economic, social, and competitive environmentsnew opportunitiesdevelops a long-run marketing strategyProactive managerProactive marketing strategic plan,Marketing Research and Decision Making,John Willey & Son, Inc,9,To understand the importance of marketing research.,Applied Research versus Basic ResearchApplied researchTo better understand the market.Basic research To expand the frontiers of knowledge.Nature of Applied ResearchProgrammatic researchSelective researchEvaluative research,Marketing Research and Decision Making,John Willey & Son, Inc,10,The Decision Whether to Conduct Market Research,Cost likely to be greater than benefit; e.g., eyeglasses replacement screw,Small,Possible benefits greater than cost; e.g., ultra expensive sportswear,Market Size,Small Profit Margin,Large Profit Margin,Benefits likely to be greater than costs; e.g., Stouffers frozen entries,Benefits likely to be greater than costs; e.g.,medical equipment,Large,Exhibit 1.1,John Willey & Son, Inc,11,Impact of the InternetGrowth Drivers of the InternetProvides more rapid accessImproves response time to customer needsIncreases follow-up studies and longitudinal researchCreates cost cutting opportunities,Profound Impact of the Internet on Marketing Research,To learn how the Internet is changing marketing research,John Willey & Son, Inc,12,Internet Surveys Have Several Specific AdvantagesRapid development, real-time reportingDramatically reduced costsPersonalizationHigher response ratesAbility to contact the hard-to-reach,To learn how the Internet is changing marketing research,Profound Impact of the Internet on Marketing Research,John Willey & Son, Inc,13,Internet Enhances the Research Process and Dissemination of InformationVirtually replacement of printed materialDistributions of request for proposals (RFPs) and the proposals themselvesCollaboration between effected partiesData management and online analysisPublishing and distribution of reportsOnline presentation,To learn how the Internet is changing marketing research,Profound Impact of the Internet on Marketing Research,John Willey & Son, Inc,14,Marketing Research DefinedThe importance of marketing research in shaping marketing decisionsWhen marketing research should and should not be conductedHow the Internet is changing marketing research,SUMMARY,Problem Definition and the Research Process,John Willey & Son, Inc,16,To understand the problem definition processTo learn the advantages and disadvantages of survey, observation, and experimental research techniquesTo become familiar with how the research process is initiated,Learning Objectives,John Willey & Son, Inc,17,Recognize the Problem or OpportunityOpportunity IdentificationExternal environmentMarketing mixNew opportunitiesFind Out Why the Information Is Being SoughtUse and decisions made with the informationPrioritize the questionsCreate sample datawill this answer the questions,To understand the problem definition process,Critical Importance of Correctly Defining the Problem,John Willey & Son, Inc,18,Use the Symptoms to Clarify the ProblemSymptomIceberg principle“What caused this to occur?”Translate the Management Problem Into a Marketing Research ProblemMarketing research problemManagement decision problem,Critical Importance of Correctly Defining the Problem,To understand the problem definition process,John Willey & Son, Inc,19,Determine Whether the Information Already ExistCan save time and moneyDetermine Whether the Question Can Be AnsweredIdentify the following:You know the information exists or can be obtainedBased on similar prior experience the information can be gatheredTrying this is new and there is a risk of drawing a blank,Critical Importance of Correctly Defining the Problem,To understand the problem definition process,John Willey & Son, Inc,20,State the Research ObjectivesStated in terms of precise information necessary to address the problem/opportunityRoad mapAvoid the Nice-to-Know SyndromeManagement Decisions and Research ObjectivesWould be a restatement, in research terms, of what management needs to know to make a decision,To learn the steps involved in the marketing research process,Critical Importance of Correctly Defining the Problem,John Willey & Son, Inc,21,Research objectives as HypothesesHypothesisstatement about a relationship between or or more variables that can be tested with empirical dataShould contain clear implications for testing stated relationshipsDevelopment of the research hypothesis sets the stage for creating the research design,Critical Importance of Correctly Defining the Problem,To understand the problem definition process,John Willey & Son, Inc,22,To learn the advantages and disadvantages of survey, observation, and experimental research,Choosing a Basic Method of ResearchSurvey: an interviewer and questionnaireObservation: to monitor respondents actions without direct interactionExperiments: to measure causality Selecting a Sampling ProcedureProbability sample-known representativenessNonprobability sample-unknown representation,The Marketing Research Process,John Willey & Son, Inc,23,Collecting the DataMarketing research field serviceAnalyzing the DataTo interpret and draw conclusionsWriting and Presenting the ReportJudging the quality of a reportFollow-upDetermine whether the recommendations were followed,The Marketing Research Process,To learn the steps involved in the marketing research process.,John Willey & Son, Inc,24,What motivated Decision Makers to Use Research Information?The determinants of whether or not a manager uses research data are:Conformity to prior expectationsClarity of presentationResearch qualityPolitical acceptability within the firmLack of challenge to the status quo,To become familiar with how the research process is initiated,Managing the Research Process,John Willey & Son, Inc,25,SUMMARY,Understand the problem definition processOpportunity come many ways, remember the Iceberg principleQuestionnaires are more accepted but other options can be more causalTo become familiar with how the research process is initiatedExternal environmentMarketing mixNew opportunities,John Willey & Son, Inc,26,Medical Supply CompanyInvestigatingRisk in purchasing onlinePrice of medical/hospital gownsCompetition, especially onlineTarget market behavior,Project,John Willey & Son, Inc,28,To understand how to create an internal database.To become familiar with the types of databasesTo Become familiar with data mining.To understand the advantages and disadvantages of using secondary data.,Learning Objectives,John Willey & Son, Inc,29,The Nature of Secondary Data,To understand the advantages and disadvantages of secondary data.,Secondary Data: Data that have previously been gathered and that might be relevant to the problem at hand.Primary Data:New data collected to solve a particular problem.Internal: Information originating within the companyExternal: Outside sources of secondary information,John Willey & Son, Inc,30,The Nature of Secondary Data,To understand the advantages and disadvantages of secondary data.,Advantages of Secondary DataClarify the problem.May provide a solution.May provide primary data research method alternatives.May alert the marketing researcher to potential problems or difficultiesMay provide necessary background information and build credibility for the research report,John Willey & Son, Inc,31,The Nature of Secondary Data,To understand the advantages and disadvantages of secondary data.,Limitations of Secondary Data Lack of Availability Lack of Relevance Insufficiency InaccuracyWho gathered the data?What was the purpose of the study?What and when was the information collected?How was the information collectedIs the information consistent with other information?,John Willey & Son, Inc,32,To understand how firms create an internal database.,Internal Data Bases,Internal Databasea collection of related information developed from data already within the organization.Creating an Internal DatabaseSalesperson “call report”Sales resultsCustomer preferences,John Willey & Son, Inc,33,To learn about building a database from Web site visitors.,Creating Databases From a Web Site -A Marketers DreamCustomers link to an online store is a two-way electronic linkAllows online merchant to gather information about the customerCookiesText file place on a users computer in order to identify the user when there is a return visit to the Web site,Internal Data Bases,John Willey & Son, Inc,34,To learn about building a database from Web site visitors.,Data MiningNeural networkData mining The use of statistical and other advanced software to discover non-obvious patterns hidden in a databasePotential Uses of Data Mining in Marketing:Customer acquisitionCustomer retentionCustomer abandonmentMarket basket analysis,Internal Data Bases,John Willey & Son, Inc,35,There are 70 federal agencies that publish data Statistical Universe or through LEXIS-NEXIS STATIS FEDSTATS White House Briefing R/WH/html/briefroom.htmlEconomic /fsbr/esbr.html Social /fsbr/ssbr.html,To understand the role of the Internet in obtaining secondary data.,Finding Secondary Data on the Internet,John Willey & Son, Inc,36,Information ManagementDevelopment of a system for capturing, processing, and storing data so that it can be readily found and retrieved when needed for management decision makingGeographic Information System (GIS)Includes a demographic database, digitized maps, and software that enables the user to add corporate data to the mixSpatial QueryingDecision Support Systems (DSS)Designed to support the needs and styles of individual decision makers,To learn about types of information management systems,Information Management,John Willey & Son, Inc,37,internal database company datatypes of databases - endlessdata mining searching data for interesting, relevant groups and causalitysecondary data already available and may give clues to your research,SUMMARY,Qualitative Research,John Willey & Son, Inc,39,To define qualitative researchTo explore the popularity of qualitative researchTo understand why qualitative research is not held in high esteem by some practitioners and academiciansTo learn about focus groups and their tremendous popularityTo gain insight into conducting and analyzing a focus groupTo understand the controversy regarding online focus groupsTo understand the growing popularity of Internet focus groupsTo learn about other forms of qualitative research,Learning Objectives,John Willey & Son, Inc,40,Qualitative Research Defined Findings not subject to quantification. To examine attitudes, feelings, and motivationsQuantitative Research DefinedTo find statistically significant differences The Qualitative versus Quantitative ControversySee Exhibit 4.1 (next slide)Popularity of Qualitative ResearchLess expensive, ability to better understand motivations, improved efficiency,To define qualitative research.,The Nature of Qualitative Research,John Willey & Son, Inc,41,Comparative Dimension,Qualitative Research,Quantitative Research,Exhibit 4.1 Qualitative versus Quantitative Research,John Willey & Son, Inc,42,Popularity of Qualitative ResearchMuch cheaper than quantitative researchBetter at understanding the in-depth motivations and feeling of consumersImproves the efficiency of quantitative researchBecoming common to combine qualitative and quantitative research,The Nature of Qualitative Research,To explore the popularity of qualitative research,John Willey & Son, Inc,43,To understand why qualitative research is not held in high esteem.,Limitations on Qualitative ResearchDoes not distinguish small differences in a marketing mix.Not necessarily representative of the population of interestNo certification body in marketing research,The Nature of Qualitative Research,John Willey & Son, Inc,44,To gain insight into conducting and analyzing a focus group,The Growing Role of Focus Groups,Focus Groups DefinedConsists of 8 to 12 participants Led by moderatorIn-depth discussion on one topicGoal: To learn and understand what people have to say,John Willey & Son, Inc,45,Popularity of Focus GroupsFocus groups but on aspect of qualitative research but it is overwhelming the most popularHow Popular?Marketing Research firms, advertising agencies and consumer good manufacturers use themMost research expenditures for qualitative research are for focus groupsFocus groups allow the researcher to experience the emotional framework in which the product is being usedUsed by consumer goods companies more than by industrial goods organizations,To learn about focus groups and their tremendous popularity,The Growing Role of Focus Groups,John Willey & Son, Inc,46,Exhibit 4.2 Steps in Conducting a Focus Group,John Willey & Son, Inc,47,To gain insight into conducting and analyzing a focus group.,Preparing for a Focus GroupThe Setting: focus group facility often in a conference style roomThe Participants Mall intercept Telephone Combining psychographics and demographics to recruit group participantsGo to where the target market is to find qualified respondentsStrive to avoid repeat or “professional” respondents,Why do people agree to participate in focus groups?MoneyTopic is interestingIt was a convenient timeFocus groups are funRespondent knows a lot about the productCuriosityFocus groups offer an opportunity to express opinions,The Growing Role of Focus Groups,John Willey & Son, Inc,48,To gain insight into conducting and analyzing a focus group.,Selecting the Moderator Genuine interest in peopleAcceptance and appreciation for the differences in peopleGood listening skillsGood observation skillsInterest in a wide range of topicsGood oral and written skillsObjectivityKnowledge of marketing and researchFlexibility Good attention to detail,The Growing Role of Focus Groups,John Willey & Son, Inc,49,To gain insight into conducting and analyzing a focus group.,Rapport: Techniques for building rapportAsk personal questions during warm-upInclude personal information about yourself (moderator)Ask respondents for assistanceLighten things up with humorClientfocused skillsKnow clients businessProvide the strategic leadershipProvide feedback to clientBe reliable, responsive, trustworthy, independentPersonal style to match client,The Growing Role of Focus Groups,John Willey & Son, Inc,50,To gain insight into conducting and analyzing a focus group.,Discussion GuideAn outline of the topics to be coveredThree stages:Rapport is establishedProvoke intense discussionSummarize significant conclusions,The Growing Role of Focus Groups,John Willey & Son, Inc,51,To gain insight into conducting and analyzing a focus group.,Focus Group ReportInstant analysisModerator debriefingAdvantages of instant analysisDisadvantages of instant analysisFormal reportusually a PowerPoint presentation (copies are distributed),The Growing Role of Focus Groups,John Willey & Son, Inc,52,To gain insight into conducting and analyzing a focus group.,Benefits and Drawbacks of Focus GroupsAdvantagesInteraction among respondentsOffers oppo

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