Defining the Marketing

Research Problem
Kamal K. Gupta
Assistant Professor
AKGIM
Ghaziabad
 The Marketing Research
Process
Research Process - Key Questions
1. Why should we do research?
Management Decision Problem Research Purpose
2. What research should be done?
Research Objective
3. Is it worth doing the project ?
Value of Information

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 Key Questions (cont.)....

4. How should research be conducted?

Research Design
5. How should data be collected?
Sampling and Data Collection
6. What will we do with the data?
Data Analysis and Interpretation
7. How do we communicate the results?
Report Writing and Presentation

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 Problem/Opportunity
Identification
The research process begins with the
recognition of a marketing problem or
opportunity
As changes occur in the firm’s
external environment, marketing
managers are faced with the
fundamental questions, “Should we
change the current marketing mix?”
and, “If so, how?”
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 Problem Definition
Translating the Management Decision
Problem into Research Objectives

Management Decision Problem

Manager’s version of the problem for which
decisions is to be made. The management
decision problem is action oriented.
e.g., How can I increase sales? What product
features should I add? Should I increase my
advertising? Who should I target for coupon
distribution?
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 Role of the Marketing
Researcher
Once a problem or opportunity has been
identified, the marketing researcher comes
into the picture.
The first responsibility of the researcher is
to work with the marketing manager to
clearly articulate the management decision
problem(s) whose symptoms have been
observed and then to precisely define the
marketing research problem.

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 Definition of Research
Objectives
The culmination of the problem/ opportunity
formulation process is a statement of research
objectives
These objectives are stated in terms of the
precise information necessary to address the
marketing research problem
Objectives must be as specific and unambiguous
as possible. All subsequent efforts will be geared
toward achieving the research objectives

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 Some wrong formulations …
Symptoms vs. Problems
(the Iceberg Principle)
Management Decision Problem
Sales were falling below quotas.
What should we do?
Research Objective
Find ways to motivate salesforce

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 Some wrong formulations

Management Decision Problem

A major soft drink competitor is gaining market
share.
In blind tests, this competitor’s product is
considered better by majority of consumers.

Research Objective
Determine whether new product formulations are
preferred to the competitor’s product.

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 Research Objectives

Research objectives can be stated as

Ø Questions
Ø Researchable statements
Ø Hypotheses
A hypothesis is a conjectural statement
about a relationship between two or
more variables that can be tested with
empirical data.
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 Example of Problem
Formulation –
Ford SUV
A recent report suggests that middle-class
families with children are taking more
frequent and longer road trips for
vacations. Ford wants to exploit this
opportunity and add features to their next-
generation sport utility vehicle (SUV) in
order to make it more attractive to
potential buyers.

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Management Decision Problem
-
Ford SUV
How to increase SUV sales?

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Marketing Research Problem

To identify and analyse potential

buyers’ preferences in the SUV
segment, in particular, regarding the
following features:
built-in TV/Video system, food
warmer, and refrigerator.

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 Research Objectives – Question
Form
Ford SUV
Consider the following research
objectives:
• What is the likely consumer demand for an
SUV with an in-built refrigerator?
• With a built-in refrigerator, would consumers
need additional cup holders in the SUV? If
so, what locations in the vehicle would be
most convenient?
• What is the likely consumer demand for an
SUV with Video/TV system at different price
points: (i) $1500, (ii) $2000 or (iii) $2500.
• What are the characteristics of consumers
who would buy the video system?
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• …
 Research Objectives – Statement
Form
Ford SUV
Consider the following research objectives:
Estimate consumer demand for an SUV with an in-built
refrigerator.
Determine whether, with a built-in refrigerator in the SUV,
consumers would need additional cup holders; if so,
identify the most convenient locations in the vehicle.
Estimate consumer demand for an SUV with Video/TV
system at different price points: (i) $1500, (ii) $2000 or
(iii) $2500.
Identify the characteristics of consumers who would buy
the video system.
…

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 Research Objectives – Hypothesis
Form
Ford SUV
Consider the following research
objectives:
• Demand for SUVs with built-in refrigerators
will be higher in Sun Belt states (e.g.,
Florida, Texas) than in other states.
• Customers who would buy an SUV with a
built-in refrigerator would also prefer that
the vehicle have more cupholders.
• Demand for SUVs with video/TV systems will
be highest among families with young
children 1-6 years of age, compared to
families with older children or no children. 1616
•
Thank You!

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