Defining the Marketing Research Problem and Developing an Approach

The Marketing Research Process

1 • Defining the problem and research objectives:– Helps to know what you are looking for!– Can be the most difficult step in the process– Need to distinguish between symptoms and

problems

• Process begins with the recognition of a marketing problem or opportunity:– Marketing Problem: Set of circumstances in

a market and/or in the company that requires modified or new marketing strategy to respond in a way that will maintain or improve performance.

– Market Opportunity: Set of circumstances in a market that defines a situation in which a company can improve performance by creating modified or new marketing strategy.

Defining the Problem and Objectives

Step 1: Define the problem and the research objectives

Marketing researcher must be careful not to define the problem too broadly or too narrowly for the marketing research.

Defining the Research Problem

•Problem definition is a broad statement of the general marketing research problem and identification of its specific components.

This process involves the following steps:

The Problem Definition Process

DiscussionwithDecision Maker(s)

Interviewswith Experts

SecondaryData Analysis

QualitativeResearch

Management Decision Problem

Marketing Research Problem

Tasks Involved

Environmental Context of the Problem

Step I: Problem Definition

Step II: Approach to the Problem

Objective/ Theoretical

Foundations

ResearchQuestions

Hypotheses

Step III: Research Design

Analytical Model: Verbal, Graphical, Mathematical

SpecificationofInformationNeeded

Process of defining the problem

Tasks Involved:

•Discussion with decision makers

•Interviews with experts

•Analysis of secondary data

•Qualitative research

Problem Definition: Task Involved1-Discussion with decision makers:

The researcher needs to understand the

nature of what decision managers face-the

management problem- and what they hope

to learn from the research.

The Problem AuditThe problem audit is a comprehensive examination of a marketing problem with the purpose of understanding its origin and nature.1. The events that led to the decision that action is needed, or the history of the problem. 2. The alternative courses of action available to the DM. 3. The criteria that will be used to evaluate the

alternative courses of action.4. The potential actions that are likely to be suggested based on the research findings. 5. The information that is needed to answer the DM's questions. 6. The manner in which the DM will use each item of information in making the decision.

7. The corporate culture as it relates to decision making.

Problem Definition: Task Involved•2- Interviews with Industry Experts:Interviews with industry experts,

individuals knowledgeable about the firm and the industry, may help formulate the marketing research problem.

•They can be found inside or outside the firm.

Problem Definition: Task Involved•3- Secondary data analysis:•Secondary data are data collected for

some purpose other than the problem in hand.

•They include information made available by business and government sources, commercial marketing research firms and computerized databases.

•Analysis of available secondary data is an essential step in the problem definition process

Problem Definition: Task Involved4- Qualitative research•It is an unstructured, exploratory

research methodology based on small samples intended to provide insight and understanding of the problem setting and may utilize popular qualitative techniques such as focus groups and depth interviews.

Management decision problem and marketing research problem

•The management decision problem is action oriented.

•It is concerned with the possible actions the decision-maker can take.

•How should the loss of market share be arrested?

•Should the market be segmented differently?• Should a new product be introduced?

Management decision problem and marketing research problem

•The marketing research problem is information oriented.

•It involves determining what information is needed and how that information can be obtained effectively and efficiently.

• for example, the loss of market share for a particular product line. The management decision problem is how to recover this loss.

•Alternative courses of action include: •modifying existing products•introducing new products•changing other elements in the marketing

mix.

Management decision problem and marketing research problem

•Suppose the decision-maker and the researcher believe that the problem is caused by inappropriate segmentation of the market and wanted research to provide information on this issue.

•The research problem would then become the identification and evaluation of an alternative basis for segmenting the market.

Management Decision Problem Versus the Marketing Research Problem

Management Decision Problem

Marketing Research Problem

Asks what the decision maker needs to do

Asks what information is needed and how it should be obtained

Action orientedInformation oriented

Focuses on symptomsFocuses on the underlying causes

Management Decision Problem Vs. Marketing Research Problem

Management Decision Problem Marketing Research Problem

 Should a new product be To determine consumer

preferencesIntroduced in Foreign market? and purchase intentions for

theproposed new product.

 Should the advertising To determine the effectivenesscampaign be changed in foreign market? of the current

advertisingcampaign.

 Should the price of the To determine the price

elasticitybrand be increased in Middle East? of demand and the impact on

salesand profits of various levels of price changes.

Defining the marketing research problem

The general rule to be followed in defining the research problem is that the definition should:

•Allow the researcher to obtain all the information needed to address the management decision problem

•Guide the researcher in proceeding with the project.

Proper Definition of the Research Problem

Marketing Research Problem

Broad Statement

Specific Components

Developing an Approach

Objective Analytical Model Research Questions Specification of the Information

Needed

Models

An analytical model is a set of variables and their interrelationships designed to represent, in whole or in part, some real system or process.

In verbal models, the variables and their relationships are stated in prose form. Such models may be mere restatements of the main tenets of a theory.

ModelsExample: Verbal model:•A consumer first becomes aware of a our

agents. That person then gains an understanding of the product by evaluating the product in terms of the factors making up the choice criteria. Based on the evaluation, the consumer forms a degree of preference for the product. If preference is strong enough, the consumer will take a decision.

Graphical ModelsGraphical models are visual. They are used toisolate variables and to suggest directions ofrelationships but are not designed to providenumerical results.

Preference

Understanding/ evaluation

Awareness

Mathematical ModelsMathematical models explicitly specify

therelationships among variables, usually inequation form.

Wherey = degree of preference

= model parameters to be estimated statistically

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Research Questions

•Research questions (RQs) are refined

statements of the specific components of

the problem.