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

• Symptoms of the problem• Manager’s situation• Information the manager has about the situation• Suspected causes of the problem

Define the Marketing Manager’s Problem…cont.

• Possible solutions to the problem• Anticipated consequences of the problem• Manager’s assumptions about any of the prior

categories

Decide When Marketing Research Is Warranted

• Marketing Research should 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.

• Marketing Research should be undertaken:• If it helps you gain a meaningful competitive

advantage• If it allows you to stay abreast of your markets

Define the Marketing Management and Research Problems

• Marketing Management Problem:• Symptoms of failure to achieve an objective

are present.• Symptoms of the likelihood of achieving an

objective are present (opportunity identification).

• Marketing Research Problem:• Providing relevant, accurate, and unbiased

information that managers can use to solve their marketing management problems

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.• 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.

• Speculate on anticipated consequences of the action.• Assumptions are assertions 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 together.

• Research will help eliminate 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.

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

Formulate the Marketing Research Proposal:

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 research proposal ensures that the

researcher and the manager see the problem in the same way.

Formulate the Marketing Research Proposal:

Translate the Research Objectives to Be Researchable

• 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.

• An operational definition related to 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.• A model is decided.• A model connects constructs with

understandable logic.

Formulate the Marketing Research Proposal:

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.

Case 4.1 Segway HT

• Please read the Case 4.1 in p. 113-114.

• Discuss and answer Questions 1, and 2.

CASE 4.2 The Hobbits’ Choice Restaurant

• Please read Case 4.2 in p. 115.

• Discuss and answer Questions 1 and 2.