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Chapter 3 Marketing Decision Making and Case Analysis. 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.
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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
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
Enumerate the Decision Factors • alternative courses of action (controllable) • uncertainties in the competitive environment (uncontrollable) Two factors must be enumerated:
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.
Develop a Plan for Implementing the Chosen Alternative • resource allocation and timing • strategy formulation • strategy implementation
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 ?
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
Case Analysis Formulating the Analysis • nature of the industry, market, and buying behavior • the organization • a plan of action • potential outcomes
Case Analysis Communicating the Analysis • class discussion • group presentation