Through research, an executive can quickly get a synopsis of the current scenario, which improves his information base for making sound decisions affecting future operations of the enterprise. The following are the major areas in which research plays a key role in making effective decisions.
Marketing Research
Marketing research is undertaken to assist the marketing function. Marketing research stimulates the flow of marketing data from the consumer and his environment to marketing information system of the enterprise.
Advertising research, packaging research, performance evaluation research, sales analysis, distribution channel, etc., may also be considered.
Research tools are applied effectively for studies involving
- Demand forecasting
- Consumer buying behavior.
- Measuring advertising effectiveness
- Media selection for advertising
- Test marketing
- Product positioning
- Product potential
Product research focuses on assessment of suitability of goods with respect to design and price. Market Characteristics Research (Qualitative) determines Who uses the product? Relationship between buyer and user, buying motive, how a product is used, analysis of consumption rates, units in which product is purchased, customs and habits affecting the use of a product, consumer attitudes, shopping habits of consumers, brand loyalty, research of special consumer groups, survey of local markets, basic economic analysis of the consumer market, etc.
Size of Market (Quantitative) research involves market potential, total sales quota, territorial sales quota, quota for individuals, concentration of sales and advertising efforts; appraisal of efficiency, etc. Sales research involves analysis of sales records. Distribution research includes channels of distribution, distribution costs. Advertising and promotion research consists of testing and evaluating, advertising and promotion
Production
Production research helps you in an enterprise to decide in the field of production on
- What to produce
- How much to produce
- When to produce
- For whom to produce
Some of the areas you can apply research are
- Product development
- Cost reduction
- Work simplification
- Profitability improvement
- Inventory control
Materials
The materials department uses research to frame suitable policies regarding:
- Where to buy
- MARKETING RESEARCH
- How much to buy
- When to buy
- At what prices to buy.
Human Resource Development
You must be aware that the Human Resource Development department uses research to study wage rates, incentive schemes, cost of living, employee turnover rates, employment trends, and performance appraisal. It also uses research effectively for its most important activity namely manpower planning.
Solving Various Operational and Planning Problem s of Business and Industry
Various types of researches, e.g., market research, operations research and motivational research, when combined together, help in solving various complex problems of business and industry in a number of ways. These techniques help in replacing intuitive business decisions by more logical and scientific decisions.
Government and Economic System
Research helps a decision maker in a number of ways, e.g., it can help in examining the consequences of each alternative and help in bringing out the effect on economic conditions. Various examples can be quoted such as’ problems of big and small industries due to various factors – up gradation of technology and its impact on lab our and supervisory deployment, effect of government’s liberal policy, WTO and its new guidance, ISO 9000/14000 standards and their impact on our exports allocation of national resources on national priority basis, etc.
Research lays the foundation for all Government Policies in our economic system:
We all are aware of the fact that research is applied for brining out union finance budget and railway budget every year. Government also uses research for economic planning and optimum utilization of resources for the development of the country. For systematic collection of information on the economic and social structure of the country you need Research. Such types of information indicate what is happening to the national economy and what changes are taking place.
Social Relationships
Research in social sciences is concerned with both – knowledge for self and knowledge for helping in solving immediate problems of human relations. It is a sort of formal training, which helps an individual in a better way, e.g.
- It helps professionals to earn their livelihood. It helps students to know how to write and report various findings.
- It helps philosophers and thinkers in their new thin kings and ideas.
- It helps in developing new styles for creative work.
- It may help researchers, in general, to generalize new theories.
