Defining the Problem and Determining Research Objectives Ch 4 2 The Importance of Properly Defining the Problem • Properly defining the problem is the most important step in the marketing research process. • If the wrong problem is defined, all the remaining steps in the marketing research process are wrong. Ch 4 3 Define the Problem • Two sources of problems: –A problem exists when a gap exists between what was supposed to happen and what did happen, i.e., failure to meet an objective. –An opportunity occurs when there is a gap between what did happen and what could have happened…called an opportunity. Ch 4 4 Define the Problem Ch 4 5 Recognizing the Problem • To recognize a problem, managers must be knowledgeable of objectives and actual performance. • To be aware of opportunities, managers must have a process for monitoring opportunities, such as opportunity identification. Ch 4 6 The Role of Symptoms in Problem Recognition • “We have a problem … we are losing money” –Managers must be careful to avoid confusing symptoms with problems. Ch 4 7 The Role of Symptoms in Problem Recognition • Symptoms are changes in the level of some key monitor that measures the achievement of an objective. • The role of the symptom is to alert management to a problem; there is a gap between what should be happening and what is happening. Ch 4 8 The Role of the Researcher in Problem Definition • Researchers should ensure managers are defining the problem correctly. • This is particularly true when the manager has already defined the problem in very specific terms. • Researchers sometimes take additional investigations, known as a “situation analysis,” to ensure the problem is adequately defined. Ch 4 9 Impediments to Problem Definition • Failure to change behavior for problem definition situations –Managers deal with outside suppliers efficiently with little interaction. Marketing research requires a great deal of interaction and communication. Ch 4 10 Impediments to Problem Definition • There are differences between managers’ and researchers’ backgrounds. –Traditionally researchers were technicians and managers were trained in general decision making. –Today managers are much more aware of technical software such as using your SPSS. [...]... the marketing research industry Ch 4 11 Defining the Problem & Establishing Research Objectives • A Process: – There is no universally accepted, step-by-step approach used by marketing researchers to define the problem and establish research objectives • “Defining problems accurately is more an art than a science.” – Lawrence D Gibson Ch 4 12 Assess the Background and the Manager’s Situation • The researcher... the competitors, and the company • The researcher must understand the manager’s unique situation… – Does the manager have a particular objective? – What constraints is the manager operating under? Ch 4 13 Clarify the Symptoms of the Problem • The researcher must understand the control system and determine what symptoms are being identified by the system Ch 4 14 Pinpoint Suspected Causes of the Symptom... Estates – Problem Definition & Research Objectives • What can University Estates do? Add Satellite TV 150 channels 4 Premium channels Pay-for-view Ch 4 21 Specify Possible Solutions that May Alleviate the Symptoms • Possible solutions include any marketing action that the marketing manager thinks may solve the problem, such as price changes, product modification, etc Ch 4 22 Speculate on Anticipated... and the desired information Ch 4 28 level Assess the Adequacy of Information on Hand • To specify research objectives – Information gaps are the basis for establishing research objectives – Research objectives are set to gather the specific bits of knowledge that need to be gathered in order to close the information gaps Ch 4 29 University Estates – Problem Definition & Research Objectives • Information... be more attractive than competing apartment complexes if it has the satellite television programming package? 30 Review! • How to get research objectives from management questions – State the marketing management question – List the specific pieces of information needed to answer the question – Do this for each and every management question Ch 4 31 The Marketing Research Proposal • Three functions:... regarding possible consequences of each marketing action being considered Ch 4 23 Identify Manager’s Assumptions about Solutions’ Consequences • Assumptions are assertions that certain conditions exist or certain reactions will take place if considered solutions are implemented • If the manager is completely certain of assumptions there is no need for research Ch 4 24 Identify Manager’s Assumptions about... of POSSIBLE CAUSES Wait! You give it a try Ch 4 16 University Estates – Problem Definition & Research Objectives • What are some possible cases for University Estates’ Occupancy Decline? Ch 4 17 University Estates – Problem Definition & Research Objectives Ch 4 18 University Estates – Problem Definition & Research Objectives • What is/are the probable cause(s) for University Estates Occupancy Rate... possible causes • Researchers should narrow possible causes to a small set of probable causes Ch 4 15 University Estates – Problem Definition & Research Objectives • Situation: Last year, University Estates (which targets mainly university students) experienced a decline in its occupancy rate from 100% to 80% • Manager & Researcher brainstorm a list of POSSIBLE CAUSES Wait! You give it a try Ch 4 16 University... every management question Ch 4 31 The Marketing Research Proposal • Three functions: – It states the problem – It specifies the research objectives – It details the research method proposed • Proposals also contain a timetable and a budget Ch 4 32 Research Objectives • • • • Ch 4 Precise Detailed Clear Operational – Operational definitions describe the operations to be carried out in order for constructs... could it cause the symptom? Ch 4 19 University Estates – Problem Definition & Research Objectives • Probable Causes for University Estates Occupancy Rate Decline 1 Competitor’s Actions Basic Cable TV 2 Consumers (Current and Prospective Student Renters) No change Probable Cause Probable Cause Probable Cause 3 University Estates Itself No change 4 The Environment No change Ch 4 Probable Cause 20 University . the marketing research industry. Ch 4 12 Defining the Problem & Establishing Research Objectives • A Process: –There is no universally accepted, step-by-step approach used by marketing researchers. and what is happening. Ch 4 8 The Role of the Researcher in Problem Definition • Researchers should ensure managers are defining the problem correctly. • This is particularly true when the. interaction. Marketing research requires a great deal of interaction and communication. Ch 4 10 Impediments to Problem Definition • There are differences between managers’ and researchers’