Chapter 2 Marketing Research Problem and Developing an Approach 1) 2) 3) 4) Management Decision Problem and Marketing Research Problem Identifying

g and Defining the Problem Translation of BUSINESS DECISION PROBLEM(S) to - RESEARCHABLE PROBLEM(S) Components of the Research Approach

What Decision Makers Want From Marketing Researcher 1 2 3 4 5 6 7 8 9 10 Maintains client confidentiality Is honest Is punctual Is flexible Delivers according to project specifications Provides high quality output Is responsive to the clients needs Has high quality-control standards Is customer oriented in interactions with client Keeps the client informed throughout the project

Differences Between Decision Makers and Researchers

Attribute Differences Decision Makers Researchers Discover facts and relationships Asks questions Scientific, objective

Research motivation To make symptoms disappear

Disposition toward knowledge

Orientation

Demands answers to questions Pragmatic, subjective

Responsibility
Use of research Organisational position Level of involvement Training

Make profits
Political Line / middle / top management Highly involved, emotional General decision making

Generate information
Non-political Supportive staff, specialist, project leader Detached, analytical Scientific/technique 3 oriented

A GIVEN SITUATION EXTRACTING BUSINESS DECISION PROBLEM(S) TRANSFERING TO RESEARCHABLE PROBLEM(S)

It is better to get an approximate answer to a right question than an accurate answer to a wrong question

Detecting Identifying Problems

Monitors that are helpful in Alerting Managers to Possible Problems

Monitor

Measuring Factor(s)

Sales Volume

Total units or Rupee value of units sold in a given time frame and area frame

Market share

% of total industry sale accounted for by the company's brand

Profit Dealer orders

Total profit generated by the brand Amount of goods ordered by companys dealers
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Complaints Competitors

Level of consumer complaints Actions of competition such as * Price reduction * Introduction of new products * Style changes * Expansion into new territories

Market

New theories, boredom - new Preferences, attitudes, opinion

Symptom(s) of Business Problem(s) Indicated by Measure(s) of the Monitors

Declining Sales

?
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Productivity Gradually Increasing

?
?

?
SUN
7

MON

TUE

WED

THU

FRI

SAT

How to identify that a problem exists by pin-pointing three elements

expectations of what is to happen feedback on what is happening a comparison between expectations and the level of performance indicated by the feedback

Gap Analysis to identify difference between a Problem and an Opportunity A Simple Graph Where company could be

Opportunity gap
presently is Problem gap wants to be
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How is in-depth Gap Analysis done

WHERE ~ across all products, territories, sales persons, channels of distribution, etc.. WHEN ~ * did the gap emerge, * how long been present, * any identifiable patterns of gap increasing, * any particular time when the gap had unbelievingly wide * did it appear in one territory and spread to others, * did its appearance correspond to some marketing tactic

implemented by the company or competition

WHY ~ after WHERE and WHEN are answered, this question formulates the business problem
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Broad categories of problems

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Decision Maker

The Iceberg Principle

Unhappy Customers Loss of Sales Decreased Market Share

Decision Problem Definition

Low Traffic

OBVIOUS MEASURABLE SYMPTOMS

Poor Image

Marginal Performance of Sales Force

Low Quality Products Inappropriate Delivery 11 System

Researcher
Unethical Treatment of Customers

REAL BUSINESS / DECISION PROBLEMS

1) Overt difficulties symptomatic situations form only about 10% of the entire Iceberg nothing more than some type of performance factor those which are quite apparent those which manifest themselves If omitted from Problem 2) Latent difficulties Definition and as a consequence which do not reveal themselves at first from the Research but if not duly checked would soon become evident Design, would generate non3) Unnoticed opportunities optimal, useless needs effort, expertise and futuristic vision to and futile Decision based on identify them incomplete Research 12

Problem Definition Process

Understand complete problem situation Determine the Decision Makers purpose of research

BUSINESS DECISION PROBLEM

Identify and separate out measurable symptoms

Determine the unit of analysis

Determine relevant variables

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A problem well defined is half-solved

A brief report on a recent Indo-Japanese collaboration carried the statement, Productivity in Japan is much higher than that in India. A certain electronic firm is interested in the business outcomes of this collaboration. Discussions led to the query,Why is Productivity in Japan much higher than that in India? What kind of productivity are they referring to? Which industries are categorised under this productivity ? Which time period are they referring to?

SITUATION

BUSINESS QUERY AMBIGUITY

What factors were responsible for higher labour productivity of Japans electronic industries during 1994 to 1999 as compared to the same of India?
What was the extent of this excess productivity?

BUSINESS QUERY (Clearly defined) 14

Management of Scottys Inc., a hardware dealer was concerned about the overall image of Scottys retail operations as well as about its image among known customers within the Atlanta metropolitan market. The initial question was, What marketing strategies need to be either developed or modified to increase satisfaction among our current and future segments?
After Scottys management met with consultants at Corporate Communications and Marketing, Inc., to clarify Scottys critical information needs, the consultants transposed the problem factors into the specific questions. The consultants, with assistance from management, then identified the specific attributes to be included in each key research question. For example, the specific store / operation aspects included convenient operating hours, friendly and courteous staff, and a wide assortment of products and services.

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Research question used by Scottys Inc.

1. What store / operation aspects do people deem important in selecting a retail hardware outlet? 2. How do known customers evaluate Scottys retail outlets on the basis of a prespecified set of store / operation aspects associated with Scottys? 3. What are the perceived strengths and weaknesses of Scottys retail operations? 4. How do customers and non customers alike compare Scottys to other retail hardware outlets within the Atlanta metropolitan market? 5. What is the demographic and psychographic profile of the people who patronise Scottys retail outlets within the Atlanta market?
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Miscellaneous Examples Business Problems Allocate advertisement budget among different media Research Problems Estimate readership / viewership Estimate awareness generated by each type of media Evaluate use of services on Saturdays; determine if only five weekdays will suffice Concept test through which likely acceptance and use can be assessed Simulate a test market situation so that the effect of new programme can be judged Measure current sale figures, 17 image, future use of the product

Decide as to whether Saturday should be a working day Introduce new health service? Alter marketing strategy?

Increase sale of a product?

Situations that give rise to Researchable Problems

The problem must pertain to certain clearly defined environment

There should be an individual or a group of individuals (working as a team) to whom the problem can be attributed
There must be at least two courses of action to be pursued There must be at least two possible outcomes of the course of action, of which one should be preferable to the other The courses of action available must provide different chances of obtaining the objective 18

Components of the Research Approach

1. Planning stage of a study - consists of problem, purpose, hypotheses or research questions, definitions, theoretical framework, significance for conducting the research 2. Review of literature appropriate theoretical concepts, any previous research of similar nature 3. Methodology design, hypotheses, sampling, data analysis methods, ethical concerns, possible limitations, caution about misuse 4. Results of data analysis 5. Discussion of results, conclusions, implications, recommended future studies
written after the study is completed

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