Using the Logistic Regression model in supporting decisions of establishing marketing strategies

• Author: Constantin C.
• Pages: 43-50

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 8 (57) No. 2 - 2015

Using the Logistic Regression model in supporting

decisions of establishing marketing strategies

Cristinel CONSTANTIN1

Abstract: This paper is about an instrumental research regarding the using of Logistic

Regression model for data analysis in marketing research. The decision makers inside

different organisation need relevant information to support their decisions regarding the

marketing strategies. The data provided by marketing research could be computed in various

ways but the multivariate data analysis models can enhance the utility of the information.

Among these models we can find the Logistic Regression model, which is used for

dichotomous variables. Our research is based on explanation the utility of this model and

interpretation of the resulted information in order to help practitioners and researchers to

use it in their future investigations.

Key-words: marketing strategies, multivariate data analysis, logistic regression,

information, statistical significance

1. Introduction

Every company needs to establish goals on short, medium and long term, which

guide its overall activity toward success. While goals indicate what a business unit

wants to achieve, the strategy design the ways for achieving these goals (Kotler &

Keller 2006, 56). The marketing strategies establish the main actions that a company

should put in practice on medium and long terms in order to achieve some specific

goals like: market share, sales volume, profit ratio etc. (Florescu et al. 2003, 669).

The marketing strategies are meant to reduce the risks in the market activity and to

serve better the target segments taking into account the needs of these segments’

members (Lefter et al. 2006, 687).

In establishing marketing strategies the managers have to define those groups

and needs that the market offerings are intended to satisfy and then to establish

specific actions to assure purchasing, manufacturing, sales, finance, and human

resources meant to support the goals’ achieving (Kotler & Keller 2006, 60).

Strategic marketing also includes functions like: analysis of internal and external

environment of the company, setting goals and marketing strategies, target markets,

1 Transilvania University of Braşov, cristinel.constantin@unitbv.ro