LAP
Leadership, Attitude, Performance
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Marketing-Information Management LAP 13
Performance Indicator: IM:282
What’s the Problem?
Marketing-Research Problems
Worth
the
cost?
What’s
What’s the
the Problem?
Problem?
Problem
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Pinpointing
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LAP-IM-013-SP
Research
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LAP-IM-013-SP ©
© 2011,
2011, MBA
MBA
Research
and Curriculum
Curriculum Center
Center®® ot/T
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What’s Your
Problem?
Allie has a sore throat and a runny nose.
She can’t stop coughing and sneezing.
She assumes she has a cold, so she goes
to the store for some cold medicine. A week
later, Allie feels no better. Frustrated, she
makes an appointment with her doctor.
After running some tests, Allie’s doctor
tells her she’s suffering from allergies and
prescribes her some allergy medication.
Allie’s solution—taking cold medicine—
didn’t solve her problem because she didn’t
know what her problem actually was! If
you think about it, no problem—whether
it’s a health problem, a school problem,
a relationship problem, etc.—can be addressed properly until you have a clear,
correct understanding of its nature. The
same goes for business problems! Managers constantly need to make decisions
and create strategies. But, they can’t do so
effectively without having a true understanding of what problems or opportunities the business is facing. Defining the
problem—the all-important first step in
the marketing-research process—helps
managers to bring these issues into focus.
Objectives
Discuss the importance of identifying
the marketing-research problem.
Describe the ways that marketers
identify marketing-research
problems/objectives.
T
he Patterson family has owned a medium-sized dry-cleaning business
for the past 15 years. Over the past year or so, profits have been declining.
Steve, the president of the company, has decided to conduct some marketing research to get to the bottom of the problem and to help the business’s
managers plan appropriate strategies to boost profits again.
Marketing research can help business managers solve existing problems as
well as seek out new opportunities.
There are many businesses out there just like Patterson Dry Cleaning.
They encounter issues such as declining profits, or they want to learn more
about their target markets to better meet their needs. Whether the business is
trying to solve an existing problem or attempting to seek out new opportunities, marketing research can provide the information managers need to
make the best decisions for the company.
How the marketing research will be conducted depends on the business’s
size and resources. Most mid-sized and big companies will use professional
researchers from outside consulting firms. A small business, however, may
not have the budget for the services of an independent marketing-research
group. The managers of these small businesses often undertake the marketing
research on their own. However, no matter who is conducting the research,
one thing is certain—defining the problem clearly and correctly is crucial to
the success of the marketing-research study.
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2011, MBA
MBA Research
Research and
and Curriculum
Curriculum Center
Center®®
What’s
What’s the
the Problem?
Problem?
For example, the first videotape recorders that were introduced
in the 1950s were so new and unusual that many customers
didn’t know what to make of them at first. Benefits also may not
outweigh costs when a business is introducing a new product
that carries little financial risk, such as an inexpensive new lip
gloss—the expense of conducting marketing-research studies
may not be justified in such a case.
the managers’ perspective) must be translated into research
problems (the problem from the researchers’ perspective).
Researchers should avoid projects for managers who have
preset ideas about what the results should be. Managers
should avoid projects that don’t make financial sense.
1. What benefits do businesses get from
marketing research?
2. How is marketing research conducted?
3. Why is it important to define the
marketing-research problem?
When launching an inventive new
product or a product that carries little
financial risk, the benefits of conducting
marketing research may not outweigh
the costs.
Summary
Marketing research provides the information businesses need
to solve problems and take advantage of opportunities. Before
beginning a marketing-research study, it is critical for managers and researchers to clearly and correctly define the problem.
This keeps businesses from wasting valuable resources studying the wrong problem. Decision problems (the problem from
4. What is a decision problem?
5. Describe the two different types of
decision problems.
6. What is a research problem?
7. What type(s) of research should
researchers avoid?
8. What type(s) of research should
managers avoid?
Mark owns an independent marketing-research firm. He recently began a marketing-research study for a large
manufacturing company, exploring the effectiveness of two new products. Managers at the company want to
decide which product to release to the market first. The study is well underway, and one of the product managers has begun pressuring Mark to “choose” her product as the one for first release. Mark could easily craft
his final report to please the product manager, but he knows that if he starts looking at the study through her
perspective, the results could be untrustworthy. What would you do if you were in Mark’s shoes? Would you
report the product manager to higher-ups in the company? Or, would you attempt to deal with her one-on-one?
It wouldn’t be illegal for Mark to draft his final report to favor her product, but would it be unethical?
What’s
What’s the
the Problem?
Problem?
LAP-IM-013-SP
LAP-IM-013-SP ©
© 2011,
2011, MBA
MBA Research
Research and
and Curriculum
Curriculum Center
Center®® The variables studied by marketing researchers are sometimes
referred to as constructs.
Stay objective
Even after all these decisions have been made, the marketing research project still isn’t quite ready for the green light. Managers
and researchers need to finalize their decisions into formal research objectives. The research objectives state exactly what
the research study will achieve, including:
•What kind of information •How much information
will be gathered
will be gathered
•How the information
will be used
In short, if the research objectives are fulfilled by the researchers, then managers will have all the information they need to make the best decisions regarding
the problem or opportunity. After agreeing on the research objectives, managers
and researchers should step back and take a look at the overall project they’ve
mapped out. They must consider if the projected benefits of pursuing the research
are worth the costs (time, money, effort, etc.) that the marketing-research study
entails. If both parties agree, the research study can begin!
Summary
Every research project is unique, but there are a few main methods that managers and researchers use to clearly and correctly
define their research problems. First, researchers help managers clarify the decision problem through questioning and/or
performing a situation analysis. Then, researchers can translate the decision problem into research problems. Managers and
researchers work together to determine what kinds of information are needed, what unit(s) of analysis to use, and what relevant
variables to study. Finally, managers and researchers must agree on solid research objectives and verify that the benefits of
conducting the study are worth the costs.
1. How do researchers help managers to
clarify their decision problem?
2. Describe the decisions that managers
and researchers must make about:
a. Secondary and primary data
b. Unit(s) of analysis
c. Relevant variables
3. Why are research objectives important?
Apply this activity to your current place of
employment. If you are not working right
now, choose a business in your town with
which you’re familiar. What current problem
or opportunity is the business facing? If you
consider this a decision problem, what are
some possible research problems that could
be explored to provide further information
on how to solve the problem or address the
opportunity?
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LAP-IM-013-SP ©
© 2011,
2011, MBA
MBA Research
Research and
and Curriculum
Curriculum Center
Center®®
What’s
What’s the
the Problem?
Problem?