MARKETING RESEARCH PART 4 ppt

Defining the Problem & Establishing Research Objectives step-by-step approach used by marketing researchers to define the problem and establish research objectives... University Estates

Defining the Problem

and Determining

Research Objectives

The Importance of Properly

Defining the Problem

most important step in the marketing research process

the remaining steps in the marketing research process are wrong

Define the Problem

between what was supposed to happen and what did happen, i.e., failure to meet an objective

is a gap between what did happen and what could have

happened…called an opportunity.

Define the Problem

Recognizing the Problem

must be knowledgeable of objectives and actual performance

managers must have a process for

monitoring opportunities, such as

opportunity identification

The Role of Symptoms in

Problem Recognition

• “We have a problem … we are losing money”

confusing symptoms with problems

The Role of Symptoms in

Problem Recognition

some key monitor that measures the achievement of an objective

management to a problem; there is a gap between what should be

happening and what is happening

The Role of the Researcher in

Problem Definition

managers are defining the problem correctly

manager has already defined the

problem in very specific terms

additional investigations, known as a

“situation analysis,” to ensure the

Impediments to Problem

Definition

problem definition situations

suppliers efficiently with little interaction Marketing research requires a great deal of interaction and communication

Impediments to Problem

Definition

managers’ and researchers’

backgrounds

technicians and managers were trained in general decision making

aware of technical software such

as using your SPSS

The Role of ITBs and RFPs

• ITBs are Invitations to Bid

• RFPs are Requests for Proposals

management has already defined the problem

ethical problem in the marketing

research industry

Defining the Problem &

Establishing Research Objectives

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

Assess the Background and the

Manager’s Situation

understand the industry, the

competitors, and the company

manager’s unique situation…

particular objective?

operating under?

Clarify the Symptoms of the

Problem

control system and determine what symptoms are being identified by the system

Pinpoint Suspected Causes of

the Symptom

causes for a change

possible causes

causes to a small set of probable

causes

University Estates – Problem Definition & Research Objectives

Estates (which targets mainly

university students) experienced a

decline in its occupancy rate from

100% to 80%

Wait! You give it a try.

University Estates – Problem Definition & Research Objectives

University Estates’ Occupancy

Decline?

University Estates – Problem Definition & Research Objectives

University Estates – Problem Definition & Research Objectives

University Estates Occupancy Rate

Decline?

before or at the same time as the symptom(s)

• If it did not change, how could it cause the symptom?

• Probable Causes for University Estates

Occupancy Rate Decline

University Estates – Problem Definition & Research Objectives

• What can University Estates do?

Add Satellite TV

150 channels

4 Premium channelsPay-for-view

Specify Possible Solutions that May Alleviate the Symptoms

marketing action that the marketing manager thinks may solve the

problem, such as price changes,

product modification, etc

Speculate on Anticipated Consequences of the Solutions

regarding possible consequences of each marketing action being

considered

Identify Manager’s Assumptions about Solutions’ Consequences

certain conditions exist or certain

reactions will take place if considered solutions are implemented

of assumptions there is no need for

research

Identify Manager’s Assumptions about Solutions’ Consequences

research will eliminate a manager’s

uncertainty and therefore aid in

decision making

The Role of Hypotheses in

Defining the Problem

• Hypotheses are statements that are taken for true for the purposes of

argument or investigation

consequences of solutions are

hypotheses

The Role of Hypotheses in

Defining the Problem

or an assumption that he/she

believes to be true and wants

research to determine if there is

support for that statement, we call

this statement a hypothesis

Assess the Adequacy of Information on Hand

assessed

quantity and quality of evidence a manager possesses for each of his

or her assumptions

between the current information level and the desired information

Assess the Adequacy of Information on Hand

establishing research objectives

gather the specific bits of knowledge that need to be gathered in order to close the information gaps

University Estates – Problem Definition & Research Objectives

Questions) and Research Objectives

for University Estates

Information Gap/Question Research Objective(s)

How will prospective residents

react to the inclusion of the

satellite television programming

package with the base

apartment?

To what extent do prospective student residents want satellite television?

Will University Estates be more

competitive if it adds a satellite

information needed to answer the question.

management question

The Marketing Research

Proposal

proposed

and a budget

The Role of Constructs

• A construct is an abstract idea

inferred from specific instances that are thought to be related

brand loyalty, satisfaction,

preference, awareness, knowledge

the measurement of constructs

Question: Do you recall seeing an advertisement for Brand A?

Measure: Percentage who remember seeing a specific ad

Question: Indicate which of Brand A’s features you know about.

Measure: Percentage who know about each feature

Question: Are you “unfamiliar,” “somewhat familiar,” or “very familiar” with Brand A?

Measure: Percentage for each familiarity category

Question: For each product benefit statement, indicate if you agree or disagree.

Measure: Percentage who agree with each benefit

Question: Rate Brand A on a 1–5 scale, where 1 =

“poor” and 5 = “excellent”

Measure: Average rating

Question: What is the probability that you will buy Brand A the next time you purchase

this product?

Measure: Average probability

Question: Have you used Brand A in the past three months?

Measure: Percentage who have used it

Question: With your last five purchases of the product, how many times did you buy Brand A? Measure: Percentage of times

Question: Rate Brand A on a 1–5 scale, where 1 =

• A model is a logical arrangement of constructs and relationships based

on theory or experience

• Unaware-Aware-Knowledge-Liking- Intention-Purchase-Loyalty

• Importance: Performance on attributes

– Segmentation Model

• Divide up the market based on demographics, etc.

• Sum of evaluations on various attributes

Know something about your brand

Have a positive feeling about your brand

Intend to buy your brand next

Have purchased your brand in the past

RESEARCH QUESTION (University Estates Example)

What percentage of prospective student residents are unaware of satellite television?

What percentage of prospective student residents are aware of satellite television?

What percentage of prospective student residents who are aware of it know that satellite television (1) has 150 channels, (2) premium channels, and (3) pay-for-view?

What percentage of prospective student residents who know something about satellite television feel negatively, positively,

or neutral about having it in their apartment?

What percentage of prospective student residents who are positive about having satellite television in their apartment intend

to rent an apartment with it?

What percentage of the market purchased (tried) your brand in the past?

What percentage of the market has