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Chapter 4 Defining the Problem and Determining Research Objectives Differences Between Managers and Researchers • Marketing managers and researchers see the world differently because they have different jobs to perform and their backgrounds differ markedly. Differences Between Managers and Researchers Define the Marketing Manager’s Problem: Questions Researchers Should Ask Discussions often take place between managers and researchers to determine the problem. Researchers should ask questions relating to: • Symptoms of the problem? • Manager’s situation (history, products, mission, customer information, manager’s objectives, etc.)? • Suspected causes of the problem? Define the Marketing Manager’s Problem…Questions cont. • Possible solutions to the problem? • Anticipated consequences of tentative solutions? • Manager’s assumptions about existing conditions and what will take place if solution is carried out? • Adequacy of info on hand to specify research objectives (quantity, quality of info) Decide When Marketing Research Is Warranted • Four conditions when marketing research should likely be undertaken: • If it clarifies problems or investigates changes in the marketplace that can directly impact your product responsibility • If it resolves your selection of alternative courses of marketing action to achieve key marketing objectives Decide When Marketing Research Is Warranted…cont. • If it helps you gain a meaningful competitive advantage • If it allows you to stay abreast of your markets Online Research and Problem Definition • Managers sometimes must act fast, Online research could help • Positive Outcome: Online systems aid in the process because information systems speed information delivery • Negative Outcomes: 1. Information Overload or 2. Online environment also means that competitors and customers have better information Define the Marketing Management Problem and Research Objectives • Marketing Management Problem: • Symptoms of failure to achieve an objective are present. What should be done? • Symptoms of the likelihood of achieving an objective are present (opportunity identification). What should be done? • Marketing Research Objectives: • Providing relevant, accurate, and unbiased information that managers can use to solve their marketing management problems Defining the Marketing Management Problem • Assess Manager’s Situation Background of the product/service; company history, overall mission, marketing plans, managers objectives and her/his resources, etc. • Clarify Symptoms Symptoms are changes in the level of key indicators of company success. Examples include changes in sales volume, market share, profits, or dealer orders, also complaints and/or competitor actions could be indicators Define the Marketing Manager’s Problem…cont. • Pinpoint suspected causes of the problem. • Eliminating a symptom does not solve the problem. • For every problem, an underlying cause can be found. • A probable cause differs from a possible cause. Important to list all possibilities first. • Specify actions that may alleviate the problem. • Solutions include any marketing action that may resolve the problem. Define the Marketing Manager’s Problem…cont. • Speculate on anticipated consequences of the action. • What will be the impact not only on the problem at hand but also throughout the marketing program if a specific marketing action is implemented? • What additional problems will be created if a proposed solution to the current problem is implemented? Define the Marketing Manager’s Problem…cont. • Identify the manager’s assumptions about the consequences. • Assumptions are beliefs that certain conditions exist or that certain reactions will take place if the considered actions are implemented. • Assumptions are the glue that holds the decision problem parts together. • Research may help eliminate or lessen a manager’s uncertainty. Define the Marketing Manager’s Problem…cont. • Assess the adequacy of information on hand to specify research objectives. • Information State: quantity and quality of evidence a manager possesses for each assumption • Information Gaps: discrepancies between the current information level and the desired level of information at which a manager feels comfortable resolving the problem at hand • Manager and researcher come to agree on research objectives based on the information gaps. The Invitation to Bid and the Marketing Research Proposal • A marketing research proposal flows from an “invitation to bid” (ITB) or “request for proposal” ( RFP) • Both define the marketing management problem • Both specify the research objectives • The bid details the research method proposed by the researcher to accomplish the research objectives The Invitation to Bid and the Marketing Research Proposal • The problem statement for both identifies: • the company, division, or principals involved • the symptoms • the possible causes of the symptoms • the anticipated uses of the research information • The research proposal ensures that the researcher and the manager see the problem in the same way. The Invitation to Bid and the Marketing Research Proposal: • The proposal itemizes the information objectives agreed to by the manager and researcher. • Constructs and operational definitions are specified. • A construct is a marketing term or concept that is involved in the marketing management problem (e.g. brand awareness, product knowledge, attitude, loyalty, satisfaction). • An operational definition describes how the researcher will measure a construct. Formulate the Marketing Research Proposal: Translate the Research Objectives to Be Researchable…cont. • Relationships are identified. • A relationship is a meaningful link believed to exist between two constructs (lower price is related to greater sales, higher exposure is related to greater awareness, etc.). • A model is decided. • A model connects constructs with understandable logic The Invitation to Bid and the Marketing Research Proposal: • The proposed research method identifies data collection mode, questionnaire design, sample plan, and other aspects of the anticipated marketing research.