marketing -problem formulation

8/3/2019 Marketing -Problem Formulation

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MarketingMarketing --Problem FormulationProblem Formulation

Prof. Rushen Chahal



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



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.



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



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



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



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.



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



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



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

marketing -problem formulation

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