Chapter-2
Defining the Marketing
Research Problem and
Developing an Approach
Dr. Tamgid Ahmed Chowdhury
Chapter Outline
1) Overview
2) Importance of Defining a Problem
3) The Process of Defining a Problem and
Developing an Approach
4) Tasks involved in Problem Definition
5) Environmental Context of the Problem
6) Management Decision Problem and Marketing Research
Problem
7) Defining the Marketing Research Problem
8) Components of an Approach
9) International Marketing Research
Importance of defining the problem
Problem definition: A broad statement of the general problem
and identification of the specific components of the marketing
research problem.
Example: Your friend said over phone that his company’s sales
has gone down by 10% in 2011 and 15% by 2012. He wants to
explore the reason(s).
A general probable problem statement: Sales is declining due to
poor marketing efforts.
Is that really true?
If yes, what are the specific reasons?
If no, what may be the other reasons?
Finding specific answers to these questions will give us a
definition of the problem.
The
Problem
Definition
Process
Symptom(s)
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
Characteristics/
Factors
Influencing
Research
Design
DISCUSSION WITH THE DECISION MAKERS
Problem audit: A comprehensive examination
of a marketing problem to understand its origin.
Case of SMC, Bangladesh: Why consumers of the
remotest corner of the country could not get
SMC products?
Decision maker said: They wanted to revamp the
distribution system.
Question: Would that really work?

SEVEN C’S WITH DECISION MAKERS
Communication: Free exchange of ideas
 Cooperation: Team work with DM
 Confidence: Work with mutual trust
 Candor: Open agendas and ideas
 Closeness: Help anytime
 Continuity: Continuous interactions
 Creativity: Finding solutions in new and better
way

INTERVIEWS WITH INDUSTRY EXPERTS
Experience survey: Interview with the most
knowledgeable people of the industry. Also
known as key-informant technique
Case: Tajrin Garments: Before getting a final
report, investigators talked to engineers,
planners and fire brigade officers.
 Lead user survey: Interviews with the lead
users (For example, asking the frequent buyers
about the product)

SECONDARY DATA ANALYSIS
Data collected from other reasons and not for the problem in
hands.
Case: Can microcredit disbursement make a sea-change in
poverty reduction rate?
Secondary data: Microcredit disbursement (NGOAB, 2010) by
NGOs had increased by $1069.19 million between 1991/92
and 1995/96 while rural poverty increased from 52.9% to
56.7%. On the other hand, between 1995/96 and 2000,
microcredit disbursement decreased by $514.405 million,
but at that time the rural poverty situation had improved with
poverty reducing from 56.7% to 53.1%.
One possible answer: Thus more credit disbursement will
reduce more poverty may not be really true.

QUALITATIVE RESEARCH
An unstructured, exploratory research method
based on small samples intended to provide
insights and understanding of the problem.
1. Pilot study: Administering an unstructured
questionnaire in a small sample. It contains
more open-ended questionnaires
2. Case studies: Intensive examination of few
selected cases with similar types of problem

Environmental Context of the Problem
PAST INFORMATION AND FORECASTS
RESOURCES AND CONSTRAINTS
OBJECTIVES
BUYER BEHAVIOR
LEGAL ENVIROMENT
ECONOMIC ENVIROMENT
MARKETING AND TECHNOLOGICAL
SKILLS
Past information and forecast: More working
couple family structure has created a market for
packet spices (Radhuni) and frozen foods
 Resources and constraints: Budget for the
research and manpower availability
 Objectives: Goals of the organization and of the
decision makers needs to be considered.
 Buyer behavior: Predicting consumer’s reaction on
recommendations.
 Legal environment: Government laws, pressure
group opinion etc. should be considered
 Economic environment: Income, price savings etc.
 Marketing and technological skills.

DEFINING THE PROBLEM
DM: People living in the remotest corner do not get SMC
products
R: How do you know that?
DM: Our donors found that and reported to us
R: What may be the possible reasons for that? Did donors say
anything?
DM: NO, donors said nothing and they wish to know why? We
feel we need to revamp the distribution channel.
R: Why do you think that it is the reason?
DM: Our own experts say so.
R: Do the customers said so?
DM: No idea about consumer’s perceptions.
FINALIZING PROBLEMS
Management’s decision problem: What to do to
revamp the distribution system?
 Marketing research problem: Explore the
strengths and weaknesses of the existing
distribution channel. Investigate the responses
of the customers and other stakeholders.

FEW EXAMPLES:
MGT decision problem
Should a new product be
introduced
Marketing research problem
Determine the consumer
preferences and purchase
intention towards the proposed
product
Should the advertising
Determine the effectiveness of
campaign be changed
the current advertising campaign
Should we change the price of Calculate price elasticity of
the brand
demand and investigate
customer’s perception towards
pricing of other competing
brands.
PROPER DEFINITION OF THE RESEARCH PROBLEM
Broad statement: initial statement of the problem
that provides an appropriate perspective. Such as:
What may be the appropriate distribution channel
for SMC, Bangladesh to reach to the remotest
part.
 Specific components: 1) Is existing system really
bad? What the stakeholders say about that? 2)
How many intermediaries should they use? 3)
What type of commission is required for that? 4)
will that have an impact on total reach and total
cost structures?

ONE MORE EXAMPLE: PROBLEM DEFINITION
Broad definition: Comparing relative
effectiveness of microcredit-driven GO and NGO
projects in Bangladesh.
 Specific definitions:
1) Comparing effectiveness with respect to
service delivery mechanism
2) Comparison with respect to their contribution
in uplifting the living standard of the poor.

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
Characteristics/
Factors
Influencing
Research
Design
APPROACH TO THE PROBLEM




Objective or theoretical framework: Unbiased evidence
is required that is supported by empirical findings. For
example, literatures suggest a common myth of NGO
domination over GO in effectiveness comparison.
However, that is not universally acceptable.
Analytical model: A set of variables and their
interrelationships designed to represent some real
system. Such as, a function.
Graphical models: Analytical model that provides visual
pictures of the relationships.
Mathematical model: Relationship is shown in
mathematical format. Such as, regression equations
APPROACH TO THE PROBELM
Research question: These are refined statements.
What the determinants of effectiveness
measurement? Or Between GO and NGO, who is
more effective in delivering services to the poor?
Who is more effective in enhancing living standard
of the poor?
 Hypothesis: Statement that is testable. Such as,
H0: GO and NGO projects are equally effective in
delivering services to the poor. HA: they are
differences in service delivery effectiveness
between GO and NGOs.

LET’S TRY ONE CASE



Your company (class mates are the BOG members) is unsure
whether they should do corporate alliance with GP or
Banglalink.
Marketing research problem: Broad: Compare the relative
performance of GP and B.link. Specific-1: Investigate the
strengths and weaknesses of GP and B.link based on the
opinion of the users.
Specific-2: Explore the offers of GP and B.link for corporate
clients. Specific-3: Cost comparison between GP and BL.
Objective: Literature suggests that GP has unparallel
network but Blink has fast growing customer base, more
service points. There are confusion about the pricing of GP
and Blink.
GP AND BANGLALINK CASE
Research questions: What are the determinants of
performance evaluation between GP and Blink? If you want
to chose a broad and available criteria, who is performing
better on those issues?
 Hypothesis: H0: There is no difference in performance
between GP and Blink with respect to network coverage,
connection cost, features, roaming facilities, call cost, SMS
cost, social responsibilities, corporate relationship
maintaining, image in the market, after sales customer
service etc.
HA: There are differences between GP and Blink on the
stated issues.
Approach: Mathematical model or simple descriptive research.
Put weight on every item or equal weight to all.
