RESEARCH METHODOLOGY RELEVANCE OF RESEARCH IN DECISION MAKING IN VARIOUS FUNCTIONAL AREAS OF BUSINESS SUBMITTED BY: DEEPTI(0918111) KRITHIKA (0918119) NAMRATA (0918124) NITA (0918129) NIDHI(091812) SHYAMALA (0918154) RELEVANCE OF RESEACH IN BUSINESS While many business ideas blossom into successful businesses, there are many others that did not move beyond the business plan or offering memorandum. And among those that get funded and started, many fail eventually. While there can be many reasons for business failures, often these were due to flaws in the business concept or the business odel that rendered them vulnerable to the difficulties encountered. Recognizing the relevance of research in business planning has become even more crucial in the current economic scenario with funding getting difficult as banks, other financial institutions and venture capitalists are bound to put business propositions through a most rigorous assessment process. Research indicates that many ventures fail on account of market and industry factors. Yet,very often we come across ambitious entrepreneurs starting ventures without having researched the market and industry to determine the viability and sustainability of the business concept.
The significance of research stems from the fact the success of a business does not depend only on the entrepreneur’s perspective on the service or product offered. It also depends greatly on what the customers want or need. Here arises the need of research. Various major functional areas in business: 1. Marketing 2. Finance and Accounts 3. Human resource 4. Production/operation MARKETING Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit he organization and its stockholders. Marketing managers attempt to get the right goods or services to the right people at the right place at the right time at the right price, using the right promotion technique. This may be accomplished by following the marketing concept, which is based on consumer orientation, goal orientation, and systems orientation. The marketing manager must work within an internal environment of the organization and understand the external environment over which he or she has little, if any, control. The primary variables over which the marketing manager has control are distribution, rice, promotion, and product/service decisions. The unique combination of these four variables is called the marketing mix. Marketing research plays a key part in providing the information for managers to shape the marketing mix. Marketing research has grown in importance because of management’s focus on customer satisfaction and retention. It also is a key tool in proactive management. Marketing research should be undertaken only when the perceived benefits are greater than the costs. A marketing research study can be described as programmatic, selective, or evaluative.
Programmatic research is done to develop marketing options through market segmentation, market opportunity analysis, or consumer attitude and product usage studies. Selective research is used to test decisional alternatives. Evaluative research is done to assess program performance. The Internet has had a major impact on the marketing research industry. The use of Internet surveys has increased dramatically because they can be quickly deployed, cost significantly less, are readily personalized, have high response rates, and provide the ability to contact the hard-to-reach respondent.
Most importantly, as Internet participation by households has increased, identical online and offline surveys have been shown to produce the same business decisions. Marketing research has also found other uses for the Internet. It serves as a major information source, aids in the distribution of RFPs and proposals, facilitates collaboration between the client and the research supplier in the management of a research project, provides data management and online analysis, and allows for the publication and distribution of reports and the viewing of oral presentations by a widely scattered audience.
The Internet represents the present and the future of marketing research. MARKETING RESEARCH AND DECISION MAKING Marketing research plays two key roles in the marketing system. First, as part of the marketing intelligence feedback process, marketing research provides decision makers with data on the effectiveness of the current marketing mix and offers insights into necessary changes. Second, marketing research is the primary tool for exploring new opportunities in the marketplace. Segmentation research and new product research help identify the most lucrative opportunities for a firm.
Marketing research is the planning, collection, and analysis of data relevant to marketing decision making and the communication of the results of this analysis to management. IMPORTANCE OF MARKETING RESEARCH TO MANAGEMENT Marketing research can be viewed as playing three functional roles: descriptive, diagnostic, and predictive. Its descriptive function includes gathering and presenting statements of fact. What is the historic sales trend in the industry? What are consumers’ attitudes and beliefs toward a product? Opening a pack of bacon is a messy job. Bacon lovers have o reach into the package, and if they only pull out a few slices, there’s no easy way to store the remainder. Oscar Mayer marketing researchers hear plenty from consumers about what they disliked about its former bacon packaging. So marketers figured the best solution would be a packaging innovation that eliminated the chore of placing the opened pack in a resealable plastic bag or wrapping it in plastic or foil. This unwanted task was done so that the last piece of bacon would be as fresh as the first. Recently, Oscar Mayer Center Cut Bacon was introduced in a new “Stay-Fresh Reclosable Tray. The flip top lid allows easy access to the bacon inside. The top snaps closed, making it readily resealable. The flat tray makes for simplified storage in the refrigerator. 5 The second role of research is the diagnostic function, wherein data and/or actions are explained. For example, what was the impact on sales when the Oscar Mayer package design was changed? How can product/service offerings be altered to better serve customers and potential customers? Since kids eat over 5 billion ounces of ketchup each year, Heinz decided that the heavy users (kids) should have a lot to say (via marketing esearch) about how to make ketchup fun. Heinz listened and watched children using ketchup, which resulted in a new bottle design, name selection, and color. The true ketchup connoisseurs helped create Heinz EZ Squirt green ketchup! More than 10 million bottle were sold in the first seven months! This was followed up a year later with “Funky purple” ketchup. The final role of research is the predictive function. How can the firm best take advantage of opportunities as they arise in the ever-changing marketplace? Kraft Foods noticed that consumers were flocking to “low-carb” diets.
The company used marketing research to determine if this was a fad or long-term trend. Determining that “low carb” was more than a fad, it entered into an alliance with Arthur Agatston, the creator of The South Beach Diet. The result was certain Kraft products being labeled “South Beach Diet Recommended. ” Further marketing research led to a broad line of products entitled “The South Beach Diet” brand. Products include cereal, meal replacement and cereal bars, refrigerated sandwich wraps, frozen entrees, and frozen pizza. INFORMATION PROVIDED BY MARKET RESEARCH
Market research should provide marketing managers a clear picture of the market, including: 1. Customer information, such as their locations, age, gender, buying behavior and motivation 2. Competitor information, such as their identity, marketing network, customer focus and scale of operations 3. Product information, such as how customers talk about it, and likely impact of technology developments 4. Industry information, such as volumes of demand and supply, trend of sales, seasonal demand patterns 5. Competitive opportunities, such as under-served consumer segments and unmet consumer needs
FINANCE AND ACCOUNTS Financial Benchmarking & Analysis Methodology It leverages industry expertise, exhaustive primary and secondary research sources, and significant Wall Street experience to enable clients to make better investment decisions. The financial research analysts combine sector and company research, fundamental, and quantitative analysis to their benchmarking and scorecard approach. The financial research group conducts interviews with leading global companies in the major market sectors, such as aerospace, water, chemicals, software, auto ID & security, energy, and medical devices.
Growth Consulting Methodology The Business & Financial Services consulting team also conducts customized research projects that are tailored to the client’s needs, objectives, and budget, and provides innovative, practical solutions for pressing business challenges. By leveraging the expert knowledge of the industry and the in-house market data, it could provide an interactive analysis of client capabilities and market opportunities to develop custom consulting projects that provide a well-rounded, comprehensive view of the marketplace. The main Research topics in Finance area are: . Business Cycle Analysis 2. Business Plan Validation 3. Competitive Analysis & Profiling 4. Customer Identification, Segmentation, & Profiling 5. Due Diligence 6. End-User Research 7. Financial Analysis 8. Funding Support 9. Growth Opportunities & Capabilities Analysis 10. Idea Generation 11. Industry Economics 12. Industry Trends and Fundamentals 13. Market Entry Strategy 14. Market Monitoring 15. Market Opportunity Analysis 16. Market Research & Analysis 17. Marketing Strategy Analysis 18. Mergers & Acquisitions 19. Portfolio Analysis 20. Proprietary Investment Idea Generation