Contents This chapter focuses on the first two steps of the six-step marketing research process: Defining the Marketing Research Problem Developing an Approach to the Problem Emphasizes that defining the problem is the most critical step in the research process, as proper identification ensures the research is conducted effectively. Highlights how problem definition determines the direction and success of the entire research project. Explores the complexities involved in problem definition, including factors to consider and tasks to be performed. Provides guidelines to define the marketing research problem effectively and avoid common errors.
Importance of Problem Definition Defining the problem is the most important step , because only when a problem has been clearly and accurately identified can a research project be conducted properly. Defining the marketing research problem sets the course of the entire project.
This Stage Involves : Identifying the factors to be considered. Outlining the tasks involved. Avoiding common errors in problem definition. Includes objectives, theoretical framework, analytical models, research questions, hypotheses, and information specification. International considerations and ethical issues are part of this stage.
Real Research Example Example: Harley-Davidson needed specific customer information. Restaurant study: Research analyst collected data for a restaurant chain but lacked a clear problem definition. Without defining the problem, much of the data was irrelevant, making the study a waste of resources .
Six Steps in Identifying the Research Problem Ascertain your objectives. Understand the problem background. Isolate/identify the problem, not the symptoms. Determine the unit of analysis. Determine relevant things to ask about. Translate the marketing problem into researchable objectives.
Ascertain Your Objectives Goals may be short-term (sales/profits) or long-term (business growth). Objectives must be measurable. Weak objective: "Improve customer attitudes." Strong objective: "Increase profits by 20% in the next 24 months."
Understand Problem Background Avoid the “iceberg problem” by gathering informal background information about the environment in which the business operates. Most business analysis looks at neat, logged data — sales reports, contracts, invoices . For example: Hidden quality issues (mix-ups, repackaging). Inspect samples, visit production sites, ask frontline staff.
Isolate Problem, Not Symptoms Symptoms can be misleading. Example: Poor sales of a new smartphone were assumed to be caused by competitors’ low prices. Actual problem: distributors’ lack of knowledge and inability to explain product value.
Unit of Analysis & Questions Unit could be individuals, households, spouses, or organizations. Consumption studies → households. Large purchases (car, house) → spouses’ joint decision-making. Focus on measurable, quantifiable issues. Identify dependent and independent variables.
From Problem to Research Questions Translate the marketing problem into rigorous objectives (hypotheses). Exploratory research may be needed before hypothesis-building: review secondary data, pilot studies, in-depth interviews, case studies.
Examples: Problems into Objectives
Elements in Converting Managerial Dilemmas Decision-making environment. Objectives of the decision-maker. Alternative courses of action. Consequences of alternative actions. Researchers often need to uncover hidden objectives and alternatives.
What Marketing Research Cannot Do It cannot provide decisions — it gathers and organizes data to assist decision-making but does not make decisions itself. It cannot guarantee success — research only improves the odds of making correct decisions. Real value: better long-term decision-making and improved overall performance.
End / Notes Ensure clear researchable objectives before data collection. Check feasibility, measurement, and ethical issues early.