marketing -problem formulation
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8/3/2019 Marketing -Problem Formulation
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MarketingMarketing --Problem FormulationProblem Formulation
Prof. Rushen Chahal
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Problem FormulationProblem Formulation
A problem well defined is a problem half solved!
Failure to properly identify where you are headed and
why will inevitably lead you to wonder where you are
and how you got there! Wren
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Management Problems vs. Research ProblemsManagement Problems vs. Research Problems
y Most marketing research problems manifest themselves as
Management Decision Problems
Situation arises, management needs to make a decision,
requires research, starts the research process
y No actionable guidance
y Simply a statement of the issue that management is
dealing with
y Must restatement in research terms.
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Management Problems vs. Research ProblemsManagement Problems vs. Research Problems
y Marketing Research Problem: a statement of the
information needed by a decision maker to help
solve a management decision problem.
y Most critical part of the mktg. research process
y Provides guidance and direction for research
processy See Ex hibit 4.1 for examples of the difference
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Tips for Accurately DefiningTips for Accurately Defining
Research ProblemsResearch Problems
y Find out why the information is being sought.
y Determine whether the information already exists.
y Determine whether the question really can/should beanswered.
y Use exploratory research to define background of theproblem
Situation analysis
The iceberg principle
y Determine relevant variables
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Definition of Research ObjectivesDefinition of Research Objectives
y Marketing Research Objectives: the specific bits of knowledge that needto be gathered to close the information gaps highlighted in theresearch problem.
Stated in action terms
Serve as a standard to evaluate the quality and value of the
research Objectives should be specific and unambiguous
y Examples:
To measure the number of college freshmen at UAH
To assess viewer recall of our ad campaign
To describe the segments of the marketplace
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Putting It AllTogetherPutting It AllTogether
y Management Problem Placement office has noticed, while major companies make annual recruiting visits to
campus for engineers, not many national or local companies are formally recruitingbusiness majors through the placement office Why? How do we address this?
y Marketing Research Problems Why are companies not taking advantage of the resources that the placement service
offers? Are companies going around the service? Are companies aware of the UAH placement service? Are companies aware of the reputation of the UAH Business School?
What kind of things might generate more recruiting activity?y Marketing Research Objectives
To determine to what extent companies are aware of the UAH placement service Determine whether companies, especially locals, are aware of the strong reputation of
the UAH Business School To determine whether a quarterly newsletter highlighting UAH business programs and
students might generate more recruiting activity.
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Another ExampleAnother Example
y Management Problem
What price should we charge for our new product?y Research Problem
What are our costs of production and marketing (COGS)?
What are our pricing objectives and position in the market?
What price does similar types of products sell for?
What is the perceived value of our product in the marketplace? Are there any norms or conventional practices in the marketplace
(e.g., customary prices, continual discounting)
y Research Objectives
To assess the costs involved in producing and selling our product
To determine corporate objectives and their implications forpricing
To examine current prices for direct and indirect competition
To determine potential customer reaction to various prices andtheir perception of the benefits of owning the product
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Practice, PracticePractice, Practice
y For the following management problems, identify the
underlying research problems and a couple of
research objectives.
´Should our retail chain offer online shopping?µ
´What advertising media should we use to reach
our market?µ
´How do we get more people to attend our
outdoor festival/event?µ ´Should we build a new warehouse to store our
excess inventory?µ
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Practice, PracticePractice, Practice (cont·d)(cont·d)
y For the following management problems,
identify the underlying research problems and
a couple of research objectives.
´How can we increase customer retention?µ
´Should the amount of in-store promotion
for an existing product line be increased?µ
´Should the compensation package bechanged to better motivate the sales force?µ