Transcript Defining the marketing research problem

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
Defining the Problem and Objectives
• 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.
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
Tasks Involved
Discussion
with
Decision Maker(s)
Interviews
with
Experts
Secondary
Data
Analysis
Qualitative
Research
Environmental Context of the Problem
Step I: Problem Definition
Management Decision Problem
Marketing Research Problem
Step II: Approach to the Problem
Objective/
Theoretical
Foundations
Analytical
Model: Verbal,
Graphical,
Mathematical
Research
Questions
Hypotheses
Step III: Research Design
Specification
of
Information
Needed
Process of defining the problem
Tasks Involved:
• Discussion with decision makers
• Interviews with experts
• Analysis of secondary data
• Qualitative research
Problem Definition: Task Involved
 1-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 Audit
The 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 Involved
4- 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
Problem
Decision Marketing
Problem
Research
Asks what the decision Asks what information is
maker needs to do
needed and how it should
be obtained
Action oriented
Information oriented
Focuses on symptoms
Focuses on the underlying
causes
Management Decision Problem Vs.
Marketing Research Problem
Management Decision Problem
Problem
Should a new product be
Introduced in Foreign market?
Marketing Research
To determine consumer preferences
and purchase intentions for the
proposed new product.
Should the advertising
To determine the effectiveness
campaign be changed in foreign market? of the current advertising
campaign.
Should the price of the
brand be increased in Middle East?
sales
To determine the price elasticity
of demand and the impact on
and 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.
Models
Example: 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 Models
Graphical models are visual. They are used to
isolate variables and to suggest directions of
relationships but are not designed to provide
numerical results.
Preference
Understanding/ evaluation
Awareness
Mathematical Models
Mathematical models explicitly specify the
relationships among variables, usually in
equation form.
n
y  a0   ai xi
i 1
Where
y
= degree of preference
a=, amodel parameters to be estimated
0
i
statistically
Research Questions
• Research questions (RQs) are refined statements
of the specific components of the problem.