Marketing Decision Definition, Marketing Decision Types, Factors, Process, Problems

"Marketing decisions" is an important task for every marketing manager to successfully implement the marketing plan of the firm. Marketing managers play a vital role in taking marketing decisions of a firm. 

In general marketing decisions made by organizations are based on what is called a “marketing mix” which influence the development of a given marketing program. The most lasted marketing mix framework was introduced by E. Jerome McCarthy, who developed the acronym “the four P’s,” which stands for product, price, promotion, and placement. By manipulating and responding to the these elements that make up this marketing mix, or, in other words, by making marketing decisions based upon the four P’s, organizations can develop increasingly successful marketing strategies.


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Marketing Decision Definition



Marketing Decision Definition

Marketing decisions, a popular Marketing term, include decisions which are important elements of the marketing mix in which different aspects of marketing communication included. 
Marketing decisions are those decisions that are taken by a marketing manager to achieve the ultimate marketing objectives of the organization.

Different Types of Marketing Decisions

A marketing manager has to take many marketing decisions to operate the day-to-day activities of a business organization. The purpose of these marketing decisions is to achieve the pre-determined marketing objectives of an organization. There are four areas or  aspects, which always kept in mind, when a marketing manager intends to make different sorts of marketing plans for different products and services. Includes:

  1. Product
  2. Price
  3. Place (Distribution)
  4. Promotion
In the 60's, the terminology “marketing mix” became more familiarize. There are certain activities that are included as the elements of marketing mix like product planning, branding, pricing, distribution channel, packaging, promotions, advertising, physical handling, display, personal selling, servicing and fact finding & analysis and many more.


The Marketing Mix

When a marketing manager take marketing decisions they basically consider the 4Ps of marketing keeping in view internal & external shortcomings of marketing environment. The marketing decisions is taken by considering marketing mix decision and surrounding these decisions other vital marketing decisions are also taken.

These decisions includes:
  1. Product decisions
  2. Price decisions
  3. Place (Distribution) decisions
  4. Promotion decisions

Product decisions:
The product can be considered the "goods" that satisfies one or more consumer demands.
Product is related to tangible, physical products as well as services. There are certain decisions that are related to the product. like- 

Brand Name
Quality
Functionality
Warranty
Safety
Styling
Packaging
Accessories & services
Repairs & support

Price Decisions:

The price represents both the economic cost of producing a product or service and the value of a product or service and as perceived by the customers.

Marketing decisions include price decisions which are elements of the marketing mix in which different aspects of marketing communication occurs.

Following are some of the most important Marketing Decisions related to pricing.
Suggested retail price.
Pricing Strategy (penetration, skim etc)
Bundling
Seasonal pricing
Price discrimination
Cash & early payment discounts
Volume discounts & wholesale pricing
Place (Distribution) 
Decisions
Price flexibility


Distribution decisions:

Placement is also referred to as "distribution," and often refers to where a given product will be delivered. Marketing decisions include Distribution decisions which are elements of the marketing mix in which different aspects of marketing communication occurs.Following are some of the most important Marketing Decisions related to Distribution decisions.
Distribution channels
Market coverage (Exclusive, inclusive or selective distribution)
Specific channel members
Warehousing
Reverse 
logistics
Inventory management
Transportation
Order processing
Distribution centers


Promotion Decisions:

Promotion refers to the communication techniques that are used to bring the public’s attention to a given product or service.Marketing decisions include promotion decisions which are elements of the marketing mix in which different aspects of marketing communication occurs. The information about the product is communicated with an objective to produce positive customer response. Following are some of the important promotion decisions.
Promotional strategy (pull, push etc)
Advertising
Sales promotion
Personal selling & sales force
Marketing communication budget
Public relations & publicity

Marketing Decisions Factors

Internal Environment Factors in Marketing Decisions Making


  • This refers to factors existing within a marketing firm. 
  • They are also called controllable factors, because the company has control over these factors. 
  • Each department in an organization can affect marketing. 
  • Internal factors have a direct bearing on marketing efficiency and are important for product introduction
Which includes-
Company Image & Brand Equity,
 Finance & Accounting,
 Manufacturing,
 Purchasing,
 Research & Development,
Top management.


  • A good image can help a company sell a product whereas a bad image can cause consumers to leave. 
  • This impacts the ability to raise finances, form joint ventures and when launching new products to the public. 
  • It can also impact entering purchase or sales contracts 


External Environment Factors in Marketing Decisions Making: 
External factors are beyond the control of a firm, its success depends to a large extent on its adaptability to the environment 6 Micro Environment: The environmental factors that are in its proximity The factors influence the company’s non-capacity to produce and serve the market Macro Environment: These act external to the company and are uncontrollable These factors do not affect their marketing ability directly but they influence marketing decisions indirectly .

The external marketing environment consists of:


Micro-Environment Macro-Environment
the environmental factors that are in its proximity.



the factors influence the company's non-capacity to produce and serve the market.                                                                                                                                                

these act external to the company and uncontrollable .

these factors do not affect their marketing ability directly but they influence the marketing decisions indirectly.


Micro-Environment: 
Customers,
Market Intermediaries, 
Suppliers. 

Macro-Environment: 
Demographic Forces, 
Economic Factors, 
Political & Legal Forces,
Physical Factors, 
Social & Cultural Forces, 
Technological Factors.

External Environment Factors: Micro Environment

The Customers May be Classified as: 
Ultimate Customers, 
Industrial Customers, 
Re-sellers, 
Government and Other Non-profit Customers, 
International Customers, 
Competitors, 
Public.

The Marketing Decision Making Process

Marketing is  much about making decisions that are inter-related, and there seems to be four factors which influence success of a marketing strategy.


Clearly, it is important to set up a hierarchy of decision making which puts each decision area in an appropriate order, and this is the marketing decision process.


BUSINESS MISSION


THE MARKET


MARKET SEGMENTS


THE TARGET


THE CORE STRATEGY


EXTERNAL INFLUENCES


COMPETITIVE ADVANTAGE


MARKETING MIX DECISIONS


IMPLEMENTATION


CONTROL


The process is composed by the marketing mix:

  • PRODUCT
  • PRICE
  • PROMOTION
  • PLACE


Objectives should be translated into annual targets and, consequently, business planning. To meet the master plan it is important for the firm to match its strengths to opportunities in the market place.

To structure the decision making, marketers use marketing audit systems which provide a thorough examination of a business’s marketing environment, objectives, strategies and activities with a view to identifying key strategic issues, problem areas, and opportunities. As such, the marketing audit provides answers to the questions:

Where are we now?

How did we get there?

Where are we heading?

Answers to the questions can be found both internally in the firm but is also a consequence of external factors. The auditing process is therefore divided into internal and external auditing.

Marketing Decision Problems

Marketing Decision Problems In order for a company''s marketing objectives to become strategies, decisions must be made. These decisions frequently involve the allocation of significant resources. Important decisions should be informed decisions. 

In our upcoming topic we will cover the marketing management decisions, marketing decision support system and many other related topic of marketing and other subjects.

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