Chapter 2: Defining the Marketing Research problem and developing an approach

Prepared By: Mir Hossain Ekram ID # 0030152

Defining the Marketing Research problem

Defining the market research problem is the most important step in a research project. It is a difficult project. step, because frequently manage and it has not determined the actual problem. problem. The researchers role is to help management identify and isolate the problem

Importance and the process of defining the problem & Developing an approach


Only when the marketing research problem has been clearly defined then research can be designed and conducted properly. All effort, time and money spent will be wasted if the problem is misunderstood. Inadequate problem definition is a leading cause of failure of marketing research projects. Better communication and more involvement in problem definition are the most frequently mentioned ways of improving the usefulness of research.

The Problem Definition and Approach Development Process

Tasks Involved
Discussions with Decision Makers Interviews with Experts Secondary Data Analysis Qualitative Research

Environmental Context of the Problem Step 1: Problem Definition Management Decision Problem Marketing Research Problem Step 2: Approach to the Problem
Analytical Framework and Models Research Questions and Hypotheses Specification of Information Needed

Step 3: Research Design

Tasks Involved
Discussions with Decision Makers: Problem Audit: A comprehensive examination of a marketing problem to understand its origin and nature.


Problem Audit involves discussions with the DM on the following issues. The events that led to the decision that action is needed: Competitors (of Walton 's) such as Transcom was grabbing market share as they launched new models of TV and aggressive promotional campaigns.

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The Alternative course of action available to the DM. Introducing new DM. models, reducing prices, opening more distributor, launching special promotions, and increasing advertising. The criteria that will be used to evaluate the alternative course of action: new products offerings might be evaluated on the basis of sales, market share, profitability etc. The potential actions that are likely to be suggested based on research findings: Strategic marketing response. Information needed to answer DMs questions: comparison will competitors products on all the elements of product mix. Manner in which DM will use each item of information in making the decision: Based on research findings and judgements. The corporate culture as it related to decision making: In some firms the decision making process is dominant, in others the personality of DM is more important.

The Seven Cs of Interaction:

The interaction between the DM and the researcher should be characterized by the seven Cs: Cs: Communication Cooperation Confidence Candor (frankness) Closeness Continuity Creativity

      

Interviews with Industry experts



These can be both inside and out side the firm. Unstructured personal interview. Two potential problems may arise while seeking experts advice. Some individuals who claim to be knowledgeable are ready to participate may not have expertise. It may be difficult to locate and obtain the help from experts who are outside the client organisation.

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Secondary Data Analysis and Qualitative Research



Secondary data: Data collected for data: purpose other than the problem at hand. hand.

some

Primary data: Data originated by the researcher data: specifically to address the research problem. problem. Qualitative research: research: An unstructured, exploratory research methodology based on small samples intended to provide insight and understanding of the problem setting. setting.

Environmental Context of the Problem

1. 2. 3. 4. 5. 6. 7.

Past information and forecasts Resources and Constraints Objectives Buyer behaviour Legal environment Economic Environment Marketing and Technological Skills

Problem definition: Management decision problem and marketing research problem



Manage Management decision problem: The problem face the decision maker. It asks what the decision maker needs to do.

Management decision problem

Marketing research problem

Asks what the decision maker needs to do Action oriented

Asks what information is needed and how it should be obtained Information oriented

Marketing research problem: A problem that involve determining what information is needed and how it can be obtained in the most feasible way.

Focuses on symptoms

Focuses on the underlying causes

Management decision problem

Marketing research problem

Should a new product be introduced?

To determine consumer preferences and purchase intentions for the proposed new product To determine the effectiveness of the current advertising campaign To determine the price elasticity of demand and the impact on sales and profits of various level of price changes.

Should the advertising campaign be changed? Should the price of the brand be increased?

Defining the marketing research problem

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Allow a researcher to obtain all the information needed to address the management decision problem Guide the researcher in proceeding with the project. project.

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Researcher makes two errors. First when the research problem errors. is defined too broadly. Secondly when it is defined too broadly. narrowly. narrowly.

Common Errors

Problem Definition is too Broad Does Not Provide Guidelines for Subsequent Steps e.g., Improving the Companys Image

Problem Definition is too Narrow May Miss Some Important Components of the Problem e.g. Changing Prices in Response to a Competitors Price Change.

Components of an approach
Objective / Theoretical Framework


In general research should be based on objective evidence and supported by theory. Theory: A conceptual scheme based on foundational statements that are assumed to be true. Objective evidence: Unbiased evidence that is supported by empirical findings. It is gathered by compiling relevant findings from secondary sources.

Analytical model


Analytical model: An explicit specification of a set of variables and their interrelationships designed to represent some real system or process in whole or in part. Verbal models: Analytical models that provide a written representation of the relationships between variables. Graphical models: Analytical models that provide a visual picture of the relationships between variables. Mathematical models: analytical models that clearly describe the relationships between variables, usually in equation form.

Research Questions


Research questions are refined statements of the specific components of the problem. Each component may have to be broken down into subcomponents or research questions. Information required with respect to the problem component. Theoretical framework and the analytical model play a significant role in the operationalization and measurement of variables specified by the research question.

Hypothesis


An unproven statement. Often, a hypothesis is a possible answer to the research question. They go beyond research questions because they are statements or relationships or propositions rather than merely questions to which answers are required. Important role is to suggest variables to be included in the research design.

Example
Walton : Management decision problems was: Should Walton invest more to produce more TV?

Marketing Research problems was : Determine if customers would be loyal buyers of Walton in the long term.

Example
The research had to address the following components:
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Who are the customers? What are their demographic and psychographic characteristics? Can different type of customers be distinguished? Is it possible to segment the market in a meaningful way? How do customers feel regarding their Walton TV? TV? Are all customers motivated by the same appeal? Are the customers loyal to Walton TV? What is the TV? extent of brand loyalty?

Example


One of the research question (RQs) examined and the (RQs) associated hypothesis (Hs) were: RQ: RQ: Can the TV buyers be segmented based on psychographic characteristics? H1: There are different segments of TV buyers. H2: Each segment is motivated to own a Walton TV for a different reason. H3: Brand loyalty is high among Walton customers in all segments

International marketing research



Precise definition of the marketing research is more difficult in international marketing research rather than in domestic market research. Unfamiliarity with the environmental factors of the country where the research is being conducted

Ethics in marketing research



Ethical issues arise if the process of defining the problem and developing an approach is compromised by the personal agendas of clients. Researcher is ethically bound to define the problem so as to further the best interest of the client, rather than the interest of the research firm.

Internet and computer application



Discussions with decision makers: email secure chat rooms. Interviews with industry experts: search engines to locate industry experts. Secondary data analysis and qualitative research: again search engines.. Also chat rooms in providing exploratory data . Environmental context of the problem: past information and forecasts of trends can be found using search engines. Company home page for specific information. There have many website to download the reports of a public company. Like www.freeedgar.com

 

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