Chapter 3 Marketing Decision Making and Case Analysis

1. Chapter 3Marketing Decision Making and Case Analysis

2. Decision Making • Define the Problem • Enumerate the Decision Factors • Consider Relevant Information • Identify the Best Alternative • Develop a Plan for Implementing the Chosen Alternative • Evaluate the Decision and the Decision Process

3. Define the Problem A well-defined problem outlines the framework within which a solution can be derived, including: • objectives of the decision maker • constraints • success measure or goal for assessing progress towards solving the problem

4. Enumerate the Decision Factors • alternative courses of action (controllable) • uncertainties in the competitive environment (uncontrollable) Two factors must be enumerated:

5. Consider the Relevant Information • characteristics of the industry or competitive environment • characteristics of the organization • characteristics of the alternatives A Situation Analysis has been completed at the end of this step.

6. Develop a Plan for Implementing the Chosen Alternative • resource allocation and timing • strategy formulation • strategy implementation

7. Evaluate the Decision and the Decision Process • Did I define the problem accurately ? • Did I identify all pertinent alternatives and uncertainties? Were my assumptions realistic ? • Did I consider all information relevant to the decision ? • Did I recommend the appropriate course of action ? • Did I consider how my recommendation could be implemented ?

8. Case Analysis Approaching the Case • Don’t rush to a conclusion • Don’t work the numbers until you understand their meaning • Don’t confuse supposition with fact

9. Case Analysis Formulating the Analysis • nature of the industry, market, and buying behavior • the organization • a plan of action • potential outcomes

10. Case Analysis Communicating the Analysis • class discussion • group presentation