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TheMarketingResearchIndustryCopyright©2002South-Western/ThomsonLearningCHAPTERtwoLearningObjectives1.Toappreciatethestructureofthemarketingresearchindustry.2.Tocomprehendthenatureofcorporatemarketingresearchdepartments.3.Tolearnthevarioustypesoffirmsandtheirresearchfunctionsinthemarketresearchindustry.4.TounderstandtheimpactoftheInternetonthemarketingresearchindustry.5.Tolearnwhousesmarketingresearch.6.Tounderstandthegrowingimportanceofstrategicpartnering.7.Toappreciatethetrendsinglobalmarketingresearch.Level1.PrimaryInformationUsers(CorporateMarketingDepartments)TheultimateusersofmarketingresearchMarketingresearchdataisneededto:1.Determinehowtargetswillreacttoalternativemarketingmixes.2.Evaluatesuccessofoperationalmarketingstrategies.3.Assesschangesintheexternalenvironment.Tolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch.TheEvolvingStructureTolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch.TheEvolvingStructureCorporateMarketingResearchDepartmentsTheMarketingResearchIndustryTheInternetImpactUsersofMarketingResearchStrategicPartneringandGlobalResearchGeneralCategoriesofInstitutionsInvolvedinMarketingResearchKraftGeneralFoodsInstitutionActivities,Functions,andServicesLevel1.CorporatemarketingdepartmentsTable2.1Level2.AdagenciesLevel3.SyndicatedservicefirmsCustomoradhocresearchfirmsLevel4.FieldservicefirmsSpecializedfirmsOthersJ.WalterThompsonACNeilsonMarketFactssubcontractspecializedsupportservicesgovernment,universitiesCorporateClientACorporateClientBCustomResearchFirmACustomResearchFirmBSyndicatedResearchFirmXSyndicatedResearchFirmYAdAgencyFieldOfficeXFieldServiceFirmXFieldOfficeYFieldServiceFirmYRRRRRRInterviewerInterviewerInterviewerInterviewerInterviewerLevel1Level2Level3Level4InformationUsersResearchDesignersandSuppliersDataCollectorsRespondentsFigure2.1RRRRTheStructureoftheMarketingResearchIndustry4.Identifynewtargetmarkets.5.Createnewmarketingmixesfornewtargetmarkets.Level2:InformationUsers(AdAgencies)•servescorporateclients•maybeultimateusersofresearchdata•mainbusiness:thedevelopmentandexecutionofadcampaigns.Tolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch.TheEvolvingStructureLevel3:ResearchDesignersandSuppliers•sellresearchservices•designresearchstudies•analyzeresults•makerecommendationstoclient•theydesignresearch,manageitsexecution,andbuydatacollectionfromotherfirmsTolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch.TheEvolvingStructureLevel4:DataCollectorsFieldservicefirmscollectdatafor:•syndicatedresearchfirms•customresearchfirms•adagencies•corporationsTolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch.TheEvolvingStructureOnly15percentofservicecompaniessuchasFederalExpressandDeltaAirlineshavemarketingdepartmentswithmorethat10employees.Companiesareconductinglessresearchinternally.Ourattentionwillbedevotedtomarketingdepartmentsfoundinthemoresophisticated,largercompanies.Tolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch.CorporateMarketingResearchDepartmentsLevel3:TheBigMarketingResearchCompaniesFourlargestfirmsintheindustry:•A.C.NielsenCorporationretailmeasurementservices•IMSHealthIncorporatedpharmacyandhospitalauditsTolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch.TheMarketingResearchIndustry•InformationResourcesIncorporatesTracksweeklysalesandpriceformassmerchandisers•NielsenMediaResearchTelevisionindustryTolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch.TheMarketingResearchIndustryLevel3:CustomorAdHocResearchFirmsOne-of-a-kindmarketingresearchprojectsLevel3:SyndicatedServiceFirmsCollectandsellthesamemarketingresearchtomanyfirmsLevel4:FieldServiceFirmsDatacollectionspecialistsonasubcontractbasisforcorporatemarketingresearchdepartmentsTolearnaboutthevarioustypesoffirmsandtheirfunctionsinresearch.TheMarketingResearchIndustryCybermarketingResearchFirmsGreenfieldOnline-claimstohavetheworld’slargestInternet-basedmarketingresearchpanel.Vividence-evaluatestheeffectivenessofwebsites.MediaMetrix-tracksthepopularityofwebsites.RelevantKnowledge,NetRatingsNielsonMediaResearchTheInternetImpactTounderstandtheimpactoftheinternetonthemarketingresearchindustry.CyberSupportFirmsToprovidesupportinconductingInternetsurveys.WebSurveyorCyberdata:TheInternetisChangingtheWayOld-LineMarketingResearchSupportOrganizationsDeliverTheirProductSurveySamplingIncorporated(SSI)ClaritasTounderstandtheimpactoftheinternetonthemarketingresearchindustryTheInternetImpactOtherOrganizationsandIndividualsSpecialcontributionstomarketingresearch•governmentagencies•universitybureaus•professorsTounderstandtheimpactoftheInternetonthemarketingresearchindustry.TheInternetImpactTolearnwhousesmarketingresearch.ExternalClients•Vendors•FranchiseesInternalClientsNewproductdevelopment,pricingTopManagement’sUseofResearchOtherUsersofMarketingResearchUsersofMarketingResearchFigure2.3MarketingResearchCustomersLogisticsSalesAdvertisingandPromotionNewProductDev.BrandManagersPricingCommitteeProductEngineersFinanceManufac-turingLegalH.R.Mgmt.OtherDept.SeniorMgmt.Mar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