Marketing Research

Defining the Problem and Determining Research Objectives

Why is Properly Defining the Problem Important?

• Properly defining the problem is the most important step in the research process • If the problem is not properly defined then all the remaining steps in the process will be wrong

Two Sources of Problem

• Gap – exists between what was supposed to happen and what happened (e.g. sales calls below target, sales volume below quota, etc.) • Opportunity – a gap between what happened and what could have happened (e.g. increase in sales if product features are improved, increase in profits due to expansion, etc.)

Some Impediments to Problem Recognition

• Marketing managers and researchers see the world differently because they have different jobs to perform and their backgrounds differ markedly.

The Role of the Researcher in Defining the Problem

• Several discussions usually take place for managers and researchers to determine the problem. Researchers should ask questions:

• Symptoms of the problem? • Manager’s situation? • Information the manager has about the situation? • Suspected causes of the problem?

The Role of the Researcher in Defining the Problem contd.

• The researcher must first understand the industry, competitors and the company • He/she must understand the manager’s unique situation • He/she must understand the control system and determine what symptoms are being identified in the system

Defining the Marketing Manager’s Problem

• Assess Manager’s Situation Background of the product/service; company history, overall mission, marketing plans, managers objectives and her/his resources, etc. • Clarify Symptoms Symptoms are changes in the level of a key monitor that measures the achievement of an objective and their causes. Sales volume, market share, profit, dealer orders, complaints, and competitors’ actions

Defining the Marketing Manager’s Problem contd.

• Pinpoint suspected causes of the problem. • Eliminating a...