CHAPTER 4 DEFINING THE PROBLEM AND DETERMINING RESEARCH OBJECTIVES MIKKO JOHN BARROGA MARKETING RESEARCH MARKETING MANAGER’S PROBLEM •Symptoms of the problem •Manager’s situation •Information the manager has about the situation •Suspected cause of the problem 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. KEY QUESTION THE RESEARCHER SHOULD ASK THE MANAGER Discussions often take place between managers and researcher to determine the problem. Researcher should ask the question relating to: Symptoms of the problem? Manager’s situation (history, products mission, customer information, manager’s objective etc)? Suspected causes of the problem? Decide when marketing research is warranted 4 condition when marketing research should likely be undertaken: If clarifies problems or investigates changes in the marketplace that can directly impact your product responsibility If it resolves your selection of alternatives courses of marketing action to achieve key marketing objectives. If it helps you gain a meaningful competitive advantage. If it allows you to stay abreast of your market. DEFINE THE MARKETING MANAGEMENT PROBLEM AND RESEARCH OBJECTIVES Marketing management problem: Symptoms of failure to achieve an objective are present. What should be done? Symptoms of the likelihood of achieving an objectives 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 PROBLEMS Asses 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. Example include changes in sale volume, market share, profits, or dealer orders, also complaints and/ or competitor actions could be indicators. 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 as possible cause. Important to list all possibilities first. DEFINING THE MARKETING MANAGEMENT PROBLEMS Specify actions that may alleviate the problem Solutions include any marketing action that may resolve the problem. 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 implemented. What additional problems will be created if as proposed solution to the current problem is implemented? DEFINING THE MARKETING MANAGEMENT PROBLEMS Identify the manager’s assumptions about the consequences. Assumptions are belief that certain conditions exist or that certain reaction 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 uncertainly. DEFINING THE MARKETING MANAGEMENT PROBLEMS Assess the adequacy of information on hand to specify research objectives: Information State: quantity or 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. FORMULATE THE MARKETING RESEARCH PROPOSAL A MARKETING RESEARCH PROPOSAL Defines the marketing management problem Specifies the research objectives Details the research method proposed by the researcher to accomplish the research objectives DEFINE THE MARKETING MANAGEMENT PROBLEM The problem statement identifies; The company, division, or principals involved. The symptoms. The possible causes of the symptoms. The anticipated uses of the research information The researcher proposal ensures that the researcher and the manager see the problem in the same way TRANSALATE THE RESEARCHOBJECTIVES TO BE RESEARCHERBALE The proposal itemize 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 involved in the marketing problem. An operational definition related to how the researcher will measure a construct. Relationship are identified. A relationship is a meaningful link believed to exist between two constructs. A model is decided. A model connects constructs with understandable logic DETAIL THE PROPOSED RESEARCH METHOD The proposed research method identifies data collection mode, questionnaire design, sample plan, and other aspects of the anticipated marketing research.