RELEVANCE OF RESEARCH IN DECISION MAKING IN VARIOUS FUNCTIONAL AREAS OF BUSINESS
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
model 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:
2. Finance and Accounts
3. Human resource
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
the 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,
price, 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
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...