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

•Market Share Research
•Market Characteristics Research
•Sales Analysis Research
•Forecasting Research
•Business Trends Research
•Segmentation Research
•Product Research
•Pricing Research
•Promotion 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