Marketing Research-
Decision Making
Perspective
Dr. Sanjay Jain
Decision
A decision is a judgment or choice between
two or more alternatives and arises in an
infinite number of situations from the
resolution of a problem to the implementation
of course of actions.
“efficient decision-making involves a series of
steps that require the input of information at
different stages of the process, as well as a
process for feedback”. (Baker et al 2001)
Decisions
•Made up of a composite of information,
data, facts and belief.
•Data by itself does not constitute useful
information unless it is analyzed and
processed.
Types of Decisions
Programmed and non-programmed decision
Strategic and operational
Routine and emergency
Decision Making Process
1. Investigate the situation
2. Frame the issue properly
3. Create a context for success
4. Generate alternatives
5. Evaluate alternatives
6. Choose the best alternative
Rational Decision
Complete Lack of
Knowledge Knowledge
Certainty Uncertainty
• Simplest form • Multiple states of
nature; may be
• One state of
known or unknown
nature
• Probabilities are
• Known
unknown
consequences
What is Marketing?
Meeting customers’ needs profitably
Marketing Philosophy
Customer orientation
Profit Orientation
Holistic Marketing
Relationship Marketing
Internal Marketing
Integrated Marketing (Marketing Mix)
Societal Marketing
Marketing Process
Consists of
1. Analyzing Marketing Opportunities
(Situation analysis )
2. Developing Marketing Strategies
3. Planning Marketing Programs, and
4. Managing the Marketing Efforts
(Implementation).
Marketing Process
1. Situation Analysis
Market environment
Market characteristics
Consumer behavior
2. Marketing Strategies: Three Critical Decisions
What business should we be in?
What are the objectives for the business?
How to compete, where to compete, and when to
compete?
Marketing Process
3. Marketing Programs
Marketing Budget (expenditure)
Marketing Mix
Allocation of Marketing Budget
4. Managing Marketing Efforts
Starts with decision to proceed to a new program or strategy
Commitment to objectives, budgets and timetables
Specific measurable objectives must be set for all elements of
marketing program
“Did the elements achieve their objectives?”
“Should the marketing program be continued, discontinued,
revised or expanded?”
Marketing Process
Understand the environment and the market
Situation Identify threats and opportunities
Analysis Assess the competitive position
Define the business scope and served market
Strategy segments
Development Establish competitive advantages
Set performance objectives.
Product and channel decision
Marketing
Communication decisions
Program
Pricing
Development Personal selling decisions
Performance monitoring
Implementation Refining strategies and program
Marketing Information System
Marketing Information System
Marketing
Marketing Environ-
Developing Information -ment
Managers
Assessing Internal Marketing Target
Analysis Info needs Intelligence Markets
Records
Planning Compe-
-titors
Impleme-
Ntation Macro-Env
Distributing Marketing Marketing
Information Dec. Support Research Public
Control System
Suppliers
Marketing Decisions
Marketing Information System
A continuing and interacting structure of people,
equipment and procedures designed to gather, sort,
analyze, evaluate, and distribute pertinent, timely
and accurate information to marketing decision
making.
A formalized set of procedures for generating,
analyzing, storing, and distributing information to
marketing decision makers on an ongoing basis.
Components of MIS
Internal Records System
Marketing Intelligence System is a set of procedures and
sources used by managers to obtain everyday information about
developments in the marketing environment.
Marketing Research System
Marketing Decision Support System is a coordinated collection
of data, systems, tools and techniques with supporting software
and hardware by which an organization gathers and interprets
relevant information from business and environment and turns
it into a basis for marketing action.
Role of Marketing Research
Customer Groups
• Consumers
• Employees
• Shareholders
• Suppliers
Uncontrollable
Controllable Environmental
Marketing Factors
Variables
Marketing • Economy
• Product
• Pricing
Research • Technology
• Laws & Regulations
• Promotion
• Distribution • Social & Cultural
Factors
Assessing Providing Marketing
Information Decision • Political Factors
Information
Needs Making
Marketing Managers
• Market Segmentation
•Target Market Selection
• Marketing Programs
• Performance & Control
MARKETING
RESEARCH
Marketing Research
The function that links the consumer, the
customer, and public to the marketer
through INFORMATION.
-American Marketing Association (AMA)
Marketing Research
Used to identify and
define market
opportunities and
problems
Generate, refine, and
evaluate marketing
actions
Monitor marketing
performance
Improve understanding
of marketing as a
process
Marketing Research - Definition
Marketing research is the systematic and objective
identification
collection
analysis
dissemination
and use of information
For the purpose of improving decision making related to the
identification and
solution of problems and opportunities in marketing.
Classification of Marketing Research
Problem-Identification Research
To identify problems/opportunities which are not apparent
on the surface and yet exist and are likely to arise in the
future
e.g. : market potential, market share, image, market
characteristics, sales analysis, forecasting, and trends
research.
Problem-Solving Research
To solve marketing problems
e.g. : segmentation, product, pricing, promotion, and
distribution research.
Marketing Research- Classification
Marketing Research
Problem Problem-Solving
Identification Research Research
•Market Potential Research
•Segmentation Research
•Market Share Research
•Market Characteristics Research •Product Research
•Sales Analysis Research •Pricing Research
•Forecasting Research •Promotion Research
•Business Trends Research
•Distribution Research
Problem-Solving Research
SEGMENTATION RESEARCH
Determine the basis of segmentation
Establish market potential and responsiveness for various
segments
Select target markets
Create lifestyle profiles: demography, media, and product
image characteristics
PRODUCT RESEARCH
Test concept
Determine optimal product design
Package tests
Product modification
Brand positioning and repositioning
Test marketing
Problem-Solving Research
PROMOTIONAL RESEARCH
Optimal promotional budget
Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Evaluation of advertising effectiveness
PRICING RESEARCH
Pricing policies
Importance of price in brand selection
Product line pricing
Price elasticity of demand
Initiating and responding to price changes
Problem-Solving Research
DISTRIBUTION RESEARCH
Types of distribution
Attitudes of channel members
Intensity of wholesale & resale coverage
Channel margins
Location of retail and wholesale outlets
Marketing Research-
Classification
Programmatic Research
Develops market options through market segmentation,
market opportunity analysis, or consumer attitude and
product usage studies
Selective Research
Tests different decision alternatives such as new product
testing, advertising copy testing, pre-test marketing, and
test marketing
Evaluative Research
Evaluation of performance of programs
Criteria of Good
Marketing Research
1. Purpose Clearly Defined
• Statement of the research problem
2. Research Process (Plan) Detailed
• Procedure of research used; e.g. sources of data,
means by which they obtained
3. Research Design Thoroughly Planned
• Objectives are clearly identified
• Sample unit is clearly described along with sampling
methodology
• Literature review should be thorough and complete
• Data collection procedures are selected and
designed
Cont…..Good Research
4. Ethical Standards
• Citation and references (acknowledgement)
• Recommendations do not exceed the scope of
the study
• Concern for accuracy
5. Limitations Frankly Revealed
• Desired procedure is compared with actual
procedure
• Desired sample is compared with actual sample
• Impact on findings and conclusion is discussed
Cont…..Good Research
6. Adequate Analysis
7. Findings Presented Unambiguously
• Clearly presented in words, tables and graphs
• Comprehensive & easy to understood
• Logically organized
• Executive summary of conclusions
8. Conclusions Justified
• Matched with findings
Marketing Research Suppliers
MR
Suppliers
Corporate In- External
house Supplier Supplier
Structured Unstructured
(Independent (one or more
Department MR employees)
Customized Standardize Field Branded
Services d Services Services Product/Services
Syndicated Selective
Services Services
MR - Suppliers
RESEARCH
INTERNAL EXTERNAL
SUPPLIERS
FULL SERVICE LIMITED SERVICE
Field Branded
Syndicate Internet Products
Services
Services Services and Services
Standardized Customized Coding and
Data Entry Data
Services Services
Services Analytical Analysis
Services Services
External Suppliers-
Classification
Customized
Work with individual clients
Syndicated
Routinely collect information on several different issues and provide it to
firms that subscribe to their services
Standardized
Projects conducted in standard, pre-specified manner and supplied to
several different clients.
Field
Suppliers concentrate only on collecting data for research projects
Selective
Specialize in just one or two aspects of marketing research, mainly
concerning data, coding data, editing or data analysis
Branded products / services
Develop specialized data collection and analyses procedures to address
specific of research problems that they market as branded products
