MARKETING DECISIONS

Definition
Decision making is the selection based on some criteria from
two or more possible alternatives.
A decision may be defined as a conscious choice among
alternative course of action.
Thus, it is clear from the above definitions that if there is only one
course of action, the question of decision making does not arise.
It is possible when more than one course of action are open
before us then the selection of best alternative is called decision
making.

Steps Involved In Marketing Decision Making

1. Define the problem & objectives: The first step towards
the decision making involves the study of the nature of the
marketing problem. Based on this the objectives of
resolving the problem should be specified in order to reach
the correct decision. For eg. If the sale of a company is
decreasing and the decision to be taken is to increase the
sales then the nature of the marketing problem would be
decline of sales and the objective will be to increase the
sales.
2. Analysing the problem: It involves appraisal
(assessment) of several factors such as (a) who should take
the particular decision? (b) Whether some specialist has to
be consulted? (c) What information would be required to
take decisions? (d) How can the required information be
obtained? If facts and information are not fully available
they must be estimated to the best of information available.
3. Development of Alternative Solution: After defining and
analysing the problem it is necessary to develop alternative
solution. For eg. If the decision to be taken is to push the
sales then alternate course of action may be spending more
on advertisement and promotion activities or appointing
more salesperson or improving the quality of the product or

making the packaging more attractive or reducing the price

etc. It is not possible to implement all alternatives but the
management should not depend on one solution alone
because if that fails under a particular situation the other
might be taken in its place. It is therefore important to
consider all possible course of action.
4. Deciding upon the best solution: Among the various
alternatives the best one is selected by considering several
factors such as (a) the ratio of advantage and disadvantage
in each solution (b) the amount of effort and risk involved
with each course of action (c) financial constraints of the
organisation etc. Now-a-days operation research technique
is being used in selecting the best alternative. Each
alternative is quantitatively evaluated and the one which
can not be evaluated quantitatively is evaluated on the
basis of experience and knowledge.
5. Converting the decision into effective action: Once the
best alternative is selected the next task is to implement it.
If decision no matter however important is not put into
action it can serve no purpose whatsoever. It is therefore
necessary that the decision must reach to the hands of
subordinates and concerned employees for whom it is
meant. The language of the decision should be simple and
understandable.
6. Follow-up the decisions: The decisions should be
followed up carefully and any shortcoming in the decisions
should be made up by taking corrective actions. Thus,
follow-up action is a must for decision making process.

Nature of Marketing Decisions

1. Marketing decisions are complex in nature because
marketing problems are mainly human based problems i.e.
they are related to human behaviour of the consumer,
retailer, wholesaler etc.
2. Marketing decisions have extensive effects. Any marketing
decision taken not only affects the marketing department

but also affects other departments of the organisation such

as production, finance, human resource, R&D etc.
3. Marketing decisions give rise to new decisions. For e.g. the
decision related to new product will lead to decision related
to its quality, price, packaging, promotion, distribution etc.
4. Marketing decisions are rational (based on logic) in nature.
It is so because the decisions are based on some data and
quantitative facts. They are made after a great deal of
deliberations (planning).
5. Marketing decisions are selective in nature and involve
careful evaluation and analysis of all the possible
alternatives.
6. Marketing decision making is a continious process which
goes on throughout the life of an organization.
7. Marketing decisions may be positive to do a certain thing or
negative not to do a certain thing.
8. Marketing decision making involves uncertainty and risk.
The decision may be correct or wrong during the course of
action.