Defining the Problem in Marketing Research: A Comprehensive Guide
STEP 1: PROBLEM DEFINITION
IMPORTANCE OF DEFINING THE PROBLEM
The initial stages of problem definition involve discussions with decision-makers, interviews with industry experts and knowledgeable individuals, analysis of existing data, and sometimes qualitative research. These activities help researchers understand the problem’s background by analyzing the environmental context. This understanding facilitates the translation of the management decision problem into a marketing research problem.
Key Terms:
- Problem definition: A broad statement of the general problem and identification of the specific components of the marketing research problem.
- Experience survey: Interviews with people very knowledgeable about the general topic being investigated.
- Key informant technique: Another name for experience surveys.
- Secondary Data: Data collected for some purpose other than the problem at hand.
- Primary Data: Data originated by the researcher specifically to address the research problem.
- Qualitative research: An unstructured, exploratory research methodology based on small samples intended to provide insight and understanding of the problem setting.
- Environmental context of the problem: Factors that impact the definition of the marketing research problem, including past information and forecasts, resources and constraints of the firm, objectives of the decision market, buyer behavior, legal environment, economic environment, and marketing and technological skills of the firm.
Problem definition is the most crucial step in a marketing research project. It involves stating the general problem and identifying the specific components of the marketing research problem. Only with a clearly defined problem can research be designed and conducted properly. Peter Drucker emphasizes the importance of asking the right questions, as inadequate problem definition is a leading cause of failure in marketing research projects. Improved communication and involvement in problem definition are frequently cited as ways to enhance research usefulness.
MANAGEMENT DECISION PROBLEM AND MARKETING RESEARCH PROBLEM
- Management decision problem: The problem confronting the decision maker. It asks what the decision maker needs to do (action-oriented).
- Marketing research problem: A problem that entails determining what information is needed and how it can be obtained in the most feasible way (information-oriented).
The management decision problem focuses on symptoms, while the marketing research problem focuses on underlying causes.
Examples:
| Management Decision Problem | Marketing Research Problem |
|---|---|
| Should a new product be introduced? | To determine consumer preferences and purchase intentions for the proposed new product. |
| Should the advertising campaign be changed? | To determine the effectiveness of the current advertising campaign. |
| Should the price of the brand be increased? | To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes. |
| What can BMW Ireland do to expand its market share? | To determine the various needs of motorists and the extent to which those needs are being satisfied by the current product offering. |
RESEARCH PROBLEM
The general rule for defining the marketing research problem is that the definition should:
- Allow the researcher to obtain all the information needed to address the management decision problem.
- Guide the researcher in proceeding with the project.
Common Errors in Problem Definition:
A. Defining the research problem too broadly: This lacks clear guidelines for subsequent project steps. Examples include:
- Develop a marketing strategy for the brand.
- Improve the competitive position of the firm.
- Improve the company’s image.
B. Defining the research problem too narrowly: This may exclude consideration of some courses of action, particularly innovative ones. It may also prevent addressing important components of the management decision problem.
Best Practice:
State the marketing research problem in broad, general terms and identify its specific components. The broad statement provides perspective and safeguards against overlooking important aspects. The specific components focus on key aspects and provide clear guidelines for proceeding, reducing the likelihood of errors.