Marketing Research 1 Zaiga Oborenko, assoc professor

DECISION MAKING PROCESS

What is necessary for decision making?

WHAT IS MARKETING RESEARCH?

What is marketing?
What does it mean - research?
Why to research?

Need for Marketing Research

• A manager takes decisions
• His responsibility is to reduce risk of failure in decision making
• Risk arises due to lack of relevant information
• A manager always seeks information to improve quality of decision making
• Information can be collected through Marketing Research
• Marketing Research is an important tool for managerial decision making

Definition of Marketing Research

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.

Marketing Research & Marketing Decisions

• For Production, Finance, Personnel
• Most of the required info are available within the organization; easy to collect & analyze
• Formal procedures are used to improve quality
• For Marketing – information mostly exist outside the organization
• In consumer behavior, perception, minds
• In competitive moves
• In new government rules & regulations
• In social & political changes

When Research Should be Avoided

• When information cannot be applied to a critical managerial decision
• When managerial decision involves little risk
• When management has insufficient resources to conduct a study
• When the cost of the study outweighs the level of risk of the decision

Identification of Information Needed