Research in particularly important in the decision makingprocess of various business organizations. Research incommon context refers to a search for knowledge. It can also bedefined as a scientific and systematic search for gaininginformation and knowledge on a specific topic or phenomena.DefinitionSome of the definitions of Research are:Redman and Mory define research as a “systematized effort togain new knowledge”.Some people consider research as a movement, a movementfrom known to unknown.Research refers to the systematic method consisting of· Enunciating the problem,· Formulating a hypothesis,· Collecting the fact or data,· Analyzing the facts and· Reaching certain conclusionsCharacteristics of Researcha. Systematic ApproachEach step must of your investigation be so planned that it leadsto the next step. Planning and organization are part of thisapproach. A planned and organized research saves your timeand money.b. ObjectivityIt implies that True Research should attempt to find an unbiasedanswer to the decision-making problem.c. ReproducibleA reproducible research procedure is one, which an equallycompetent researcher could duplicate, and from it deduces
approximately the same results. Precise information regardingsamples-methods, collection etc., should be specified.d. RelevancyIt furnishes three important tasks:· It avoids collection of irrelevant information and saves time andmoney.· It compares the information to be collected with researcher’scriteria for action· It enables to see whether the research is proceeding in theright direction.e. Control:Research is not only affected by the factors, which one isinvestigating but some other extraneous factors also. It isimpossible to control all the factors. All the factors that we thinkmay affect the study have to be controlled and accounted for.Structure of ResearchMost research projects share the same general structure. Itstructure can be thing as the shape of an hourglass.
Importance of Research in Management DecisionThe role of research has greatly increased in the field ofbusiness and economy as a whole. The study of researchmethods provides you with the knowledge and skills you needto solve the problems and meet the challenges of today’smodern pace of development. Three factors stimulate theinterest in a scientific research to decision making.i. The manager’s increased need for more and betterinformation.ii. The availability of improved techniques and tools to meet thisneed.iii. The resulting information overloadThe usefulness and contribution of research in assistingmarketing decisions is so crucial that it has given rise to theopening of a new field altogether called ‘marketing research’.Market research is basically the systematic gathering, recordingand analyzing of the facts about business problems with a view
to investigate the structure and development of a market for thepurpose of formulating efficient policies for purchasing,production and sales. Research with regard to demand andmarket factors has great utility in business. Market analysis hasbecome an integral tool of business policy. Once salesforecasting is done, the Master Production Schedule (MPS) andMaterial Requirement Planning (MRP) can be efficiently donewithin the limits of the projected capacity based on the MPSBudgetary control can be made more efficient, thus replacingsubjective business decisions with more logical and scientificdecisions.Modern industry with its large-scale operations tends to create agulf between the customer and the manufacturer. Particularlywhen business is too big and operations are too far-flung, onecannot depend upon casual contacts and personal impressions.Research methodology has been developed as the tool by whichbusiness executives keep in touch with their customers. If anentrepreneur has to make sound decisions, he must know whoare his customers are and what they want. To a certain extent herelies on his salesmen and his dealers to supply him with marketinformation but in recent years, more and more firms/executiveshave turned to research methodology as a medium ofcommunication between the customer and the company.Marketing research is the link between the manufacturer and theconsumer and the means of providing consumer-orientation inall aspects of the marketing function. It is the instrument ofobtaining the knowledge about the market and consumerthrough objective methods, which guard against themanufacturer’s subjective bias. Many Researchers definemarketing research as gathering, recording and analyzing of allfacts about problems relating to the transfer and sale of goodsand services from producer to consumer. Researchmethodology is an essential prerequisite for consumer orientedmarketing. It is necessary for developing the marketing strategywhere in factors under the control of the organization, viz.,product distribution system, advertising, promotion and pricecan be utilized so as to obtain maximum results in the context ofthe factors outside the control of the organization viz., economicenvironment, competitor and laws of land.
Example:-P&G shows how marketing research is used to identify newopportunities in the marketplace. The company was getting a lotof data on Vicks- Vaporub. The analysis of such data revealedthat the most common symptom of cold was a headache andthat majority of adults typically take a pill to cure it. Thisdisclosed an opportunity for a product that can treat theheadache as well as the other symptoms. The company thuslaunched Action 500. It not only treated headache but also gaverelief from blocked nose. Marketing research can therefore leadto the development of a new product.Marketing research is undertaken to assist the marketing function.Marketing research stimulates the flow of marketing data from theconsumer and his environment to marketing information system of theenterprise. Market research involves the process of• Systematic collection• Compilation• Analysis• Interpretation of relevant data for marketing decisionsThis information goes to the executive in the form of data. On the basisof this data the executive develop plans and programmers. Advertisingresearch, packaging research, performance evaluation research, salesanalysis, distribution channel, etc., may also be considered inmanagement research.Research tools are applied effectively for studiesinvolving:1. Demand forecasting2. Consumer buying behavior3. Measuring advertising effectiveness4. Media selection for advertising5. Test marketing6. Product positioning7. Product potential
Marketing Researchi. Product Research: Assessment of suitability of goods with respect todesign and price.ii. Market Characteristics Research (Qualitative): Who uses the product?Relationship between buyer and user, buying motive, how a product isused, analysis of consumption rates, units in which product ispurchased, customs and habits affecting the use of a product, consumerattitudes, shopping habits of consumers, brand loyalty, research ofspecial consumer groups, survey of local markets, basic economicanalysis of the consumer market, etc.iii. Size of Market (Quantitative): Market potential, total sales quota,territorial sales quota, quota for individuals, concentration of sales andadvertising efforts; appraisal of efficiency, etc.iv. Competitive position and Trends Researchv. Sales Research: Analysis of sales records.vi. Distribution Research: Channels of distribution, distribution costs.vii. Advertising and Promotion Research: Testing and evaluating,advertising and promotion.viii. New product launching and Product Positioning.