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 has become very crucial in taking sound marketing decisions. Marketing research involves the process of
- Systematic collection
- Interpretation of relevant data for marketing decisions
Research tools are applied effectively for studies involving demand forecasting, consumer buying behavior, measuring advertising effectiveness, media selection, test marketing, product positioning, and new product potential.
Marketing research stimulates the flow of marketing data from the consumer and his environment to marketing information system of the enterprise. This information goes to the executive in the form of data. On the basis of this data the executive develop plans and programmers.
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
Research enables an organization to decide on
- What to produce
- How much to produce
- When to produce
- For whom to produce
Research tools are also of immense help in quality control, and setting up optimum inventory level. Some of the areas where you can apply research are:
- Product development
- Cost reduction
- Work simplification
- Profitability improvement
- Inventory Control
Banking institutions have found it useful to setup research departments for the purpose of gathering and analyzing information both for their internal operations and for making in-depth studies on economic conditions of business. Reserve Bank of India has setup an excellent research department for planning and management reporting.
The materials department uses research to frame suitable policies regarding
- Where to buy
- How much to buy
- When to buy
- What price to buy
Human resource development
The human-resource development department uses research to study wage fates, 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.
Research lays the foundation for all government policies in our economic system. For example, research is applied for evolving the union finance budget and railway budget every year. Research is used for economic planning and optimum utilisation of resources for the development of the nation. Research is also needed for systematic collection of information on the economic and social structure of the nation. Such information indicates what is happening to the economy and what changes are taking place.