The 8 steps of the problem definition process
- Recognise the problem or opportunity
- Find out why the information is being sought
- Understand the decision-making environment (the industry, company, products and target market)
- Use the symptoms to help clarify the problem
- Translate the management problem into a marketing research problem
- Determine whether the information already exists
- Determine whether the question really can be answered
- State the research objectives
- Recognise the problem or opportunity
Can the problem become opportunity?
- Marketing research may be used to evaluate products and services, promotion, distribution, and pricing alternatives.
- In addition, it may be used to find and evaluate new opportunities, in a process
called opportunity identification.
Example: Hummus sales- east coast vs west coast
- Find out why the information is being sought
What decisions will be made from research?
- discuss what the information will be used for and what decisions might be made as a result of the research
- try to get the client or manager to prioritise their questions
- rephrase the questions and discuss the differences
- create sample data and ask if such data would help answer the questions
the more clear-cut the questions and the more quickly u come to feel the questions are straightforward, the more u should doubt that u have understood the real need
- Understand the decision-making environment (the industry, company, products and target market)
Exploratory research
Once researchers understand the motivation for conducting the research, often they need additional background information to fully comprehend the problem. This may mean sim- ply talkingtobrand managers or new product managers, doing some research online, read- ing company reports, visiting production facilities and retail stores, and perhaps talking with suppliers.
- doing a situation analysis to understand properly
- Use the symptoms to help clarify the problem
Determine cause & effect relationships
For example, managers often talk about the problem of poor sales, declining profits, increased customer complaints, or defecting customers. Each of these is a symptom of a deeper problem. That is something is causing a company’s customers to leave. Is it lower prices offered by the competition? Or isitbetter service? Focusing on the symptoms and not the true problem is often referred to as the iceberg principle.
- Translate the management problem into a marketing research problem
What information is needed?
The marketing research problem specifies what information is needed to solve the problem and how that information can be obtained efficiently and effectively. The marketing research objective, then, isthe goal statement, defining the specific information needed to solve the marketing research problem.
- Determine whether the information already exists
Have you researched other research?
Using existing data can save time and money
- Determine whether the question really can be answered
What data exists? How hard to collect new data?
When researchers promise more than they can deliver, they hurt the credibility of marketing research. Itisextremely important for researchers to avoid being impelled—either by over- eagerness to please or by managerial machismo—into an effort that they know has a limited probability ofsuccess.
- State the research objectives
Be clear, specific! Roadmap for the team.
The culmination ofthe problem definition process is a statement ofthe research objectives. These objectives are stated in terms of the precise information necessary to address the marketing research problem/opportunity. Well-formulated objectives serve as a road map in pursuing the research project.
Different methods of exploratory research:
Exploratory research can take several forms:
1) pilot studies,
2) experience surveys
3) secondary data analysis
4) case analysis
5) focus groups
Exploratory research definition
Exploratory research is preliminary research, not the definitive research that isused to determine a course of action.
Pilot studies
Surveys using a limited number of respondents and often employing less rigorous sampling techniques than are employed in large, quantitative studies.
Example: Nickelodeon and their research regarding the baby boom and children’s attitude towards television
Experience survey analysis
Experience surveys involve talking with knowledgeable individuals, both inside and outside the organization, who may provide insights into the problem. Rarely do experience surveys include a formal questionnaire.
Example:
If JetBlue is redesigning the interior of its aircraft, it may use experience surveys to speak with interior designers, frequent flyers, flight attendants, and pilots.
Secondary data analysis:
Secondary data are data that have been gathered for some purpose other than the one at hand. Researchers normally use the Internet to access countless sources of secondary data quickly and at minimal expense.
Case analysis:
The purpose of case analysis is to review information from a few other situations those are similar to the current research problem.
For example, electric utilities across the United States are scrambling to become more customer-oriented; these utilities are conducting market segmentation research, customer satisfaction studies, and customer loyalty surveys. To better understand the deregulation of the electric utility industry, researchers are examining case studies on the deregulation of the airline industry.
Focus groups
Focus groups are in-depth discussions, usually consisting of 8 to 12 participants, which are led by a moderator and are generally limited to one particular concept, idea, or theme. The general idea is to have what one person says generate thoughts and comments by others, therefore creating group dynamics.
PESTEL
Macro-environmental analysis:
Political
Economic
Sociodemographic
Technological
Environmental
Legal
3 Cs:
Company, customers and competitors
5 forces
Studying the industry attractiveness:
1) Threat of new entrants
2) Power of buyers
3) Threat of substitution
4) Power of suppliers
5) Rivalry among existing competition
Know your industry!!
- metrics
- dynamics
- trends
- size, growth, life cycle,
Gain general information
Secondary data
Define terms
Case analyses
Develop hypotheses
Focus groups
Clarify problems
Depth interviews
