Marketing Principles

L.Ingram

2014-205

CHAPTER 6: SPORTS MARKET RESEARCH & OUTLETS

DISCUSSION STARTER:

• Do you think sports and entertainment marketer researchers are different from tangible-goods researchers?

SECTION 1: THE RESEARCH PROCESS

RESEARCH AND THE MARKETING CONCEPT

• Successful Business = Knowing your customer!!!!

RESEARCH

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 VariableAffected 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.

SECTION 2: OUTLETS—THE PLACE DECISION

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

DirectIndirect

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.