Defining the Problem and Determining Research Objectives Chapter 4 Defining the Problem and Determining Research Objectives

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

Differences Between Managers and Researchers

Define the Marketing Manager’s Problem: Questions Researchers Should Ask Discussions often take place between managers and researchers to determine the problem. Researchers should ask questions relating to: Symptoms of the problem? Manager’s situation (history, products, mission, customer information, manager’s objectives, etc.)? Suspected causes of the problem?

Define the Marketing Manager’s Problem…Questions cont. Possible solutions to the problem? Anticipated consequences of tentative solutions? Manager’s assumptions about existing conditions and what will take place if solution is carried out? Adequacy of info on hand to specify research objectives (quantity, quality of info)

Decide When Marketing Research Is Warranted Four conditions when marketing research should likely be undertaken: If it clarifies problems or investigates changes in the marketplace that can directly impact your product responsibility If it resolves your selection of alternative courses of marketing action to achieve key marketing objectives

Decide When Marketing Research Is Warranted…cont. If it helps you gain a meaningful competitive advantage If it allows you to stay abreast of your markets

Online Research and Problem Definition Managers sometimes must act fast, Online research could help Positive Outcome: Online systems aid in the process because information systems speed information delivery Negative Outcomes: 1. Information Overload or 2. Online environment also means that competitors and customers have better information

Define the Marketing Management Problem and Research Objectives Symptoms of failure to achieve an objective are present. What should be done? Symptoms of the likelihood of achieving an objective are present (opportunity identification). What should be done? Marketing Research Objectives: Providing relevant, accurate, and unbiased information that managers can use to solve their marketing management problems

Defining the Marketing Management 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 key indicators of company success. Examples include changes in sales volume, market share, profits, or dealer orders, also complaints and/or competitor actions could be indicators

Define the Marketing Manager’s Problem…cont. Pinpoint suspected causes of the problem. Eliminating a symptom does not solve the problem. For every problem, an underlying cause can be found. A probable cause differs from a possible cause. Important to list all possibilities first. Specify actions that may alleviate the problem. Solutions include any marketing action that may resolve the problem.

Define the Marketing Manager’s Problem…cont. Speculate on anticipated consequences of the action. What will be the impact not only on the problem at hand but also throughout the marketing program if a specific marketing action is implemented? What additional problems will be created if a proposed solution to the current problem is implemented?

Define the Marketing Manager’s Problem…cont. Identify the manager’s assumptions about the consequences. Assumptions are beliefs that certain conditions exist or that certain reactions will take place if the considered actions are implemented. Assumptions are the glue that holds the decision problem parts together. Research may help eliminate or lessen a manager’s uncertainty.

Define the Marketing Manager’s Problem…cont. Assess the adequacy of information on hand to specify research objectives. Information State: quantity and quality of evidence a manager possesses for each assumption Information Gaps: discrepancies between the current information level and the desired level of information at which a manager feels comfortable resolving the problem at hand Manager and researcher come to agree on research objectives based on the information gaps.

The Invitation to Bid and the Marketing Research Proposal A marketing research proposal flows from an “invitation to bid” (ITB) or “request for proposal” ( RFP) Both define the marketing management problem Both specify the research objectives The bid details the research method proposed by the researcher to accomplish the research objectives

The Invitation to Bid and the Marketing Research Proposal The problem statement for both identifies: the company, division, or principals involved the symptoms the possible causes of the symptoms the anticipated uses of the research information The research proposal ensures that the researcher and the manager see the problem in the same way.

The Invitation to Bid and the Marketing Research Proposal: The proposal itemizes the information objectives agreed to by the manager and researcher. Constructs and operational definitions are specified. A construct is a marketing term or concept that is involved in the marketing management problem (e.g. brand awareness, product knowledge, attitude, loyalty, satisfaction). An operational definition describes how the researcher will measure a construct.

Formulate the Marketing Research Proposal: Translate the Research Objectives to Be Researchable…cont. Relationships are identified. A relationship is a meaningful link believed to exist between two constructs (lower price is related to greater sales, higher exposure is related to greater awareness, etc.). A model is decided. A model connects constructs with understandable logic

The Invitation to Bid and the Marketing Research Proposal: The proposed research method identifies data collection mode, questionnaire design, sample plan, and other aspects of the anticipated marketing research.