Ch-3: The Marketing

Research Process and

Defining the Problem and
Research Objectives
KAZI AHMED
The Marketing
Research
Process
(11 STEPS)
CAVEATS TO A STEP-BY-STEP PROCESS
Why 11 Steps? There is nothing sacred about 11 steps. Although we conceptualize the
research process as entailing 11 steps, others may present it in fewer or more steps.
For example, the process could be distilled into three steps: defining the problem,
collecting and analyzing data, and presenting the results. We think this short list
oversimplifies the research process.
Not All Studies Use All 11 Steps: A second caution is that not all studies follow all 11
steps. Sometimes, for example, a review of secondary research alone may allow the
researcher to achieve the research objectives
Steps Are Not Always Followed in Order: most research projects do not follow an
orderly, step-by-step process. In fact, the steps are often interrelated. Sometimes, after
beginning to gather data,
STEP 1: ESTABLISH THE NEED FOR
MARKETING RESEARCH
When managers must make decisions and they have inadequate information, this
signals the need for marketing research.
Not all decisions will require marketing research. Because research takes time
and costs money, managers must weigh the value that may possibly be derived
from conducting marketing research and having the information at hand with the
cost of obtaining that information.
Fortunately, most situations do not require research
STEP 2: DEFINE THE PROBLEM
Once a firm decides to conduct marketing research, the second step is to define
the problem.
This is the most important step, because if the problem is incorrectly defined, all
the steps that follow are wasted effort.
At this stage, a problem statement should be developed that summarizes the
problem succinctly.
STEP 3: ESTABLISH RESEARCH
OBJECTIVES
Research objectives tell the researcher exactly what information
needs to be gathered and analyzed to allow managers to make
decisions related to a problem.
Research objectives need to be very clear, since they will determine
the methods used and the content of the measurement instrument.
QUIZ-15 Min, processing in 10
min
“Researchers follow specific steps in research. But they
need to be aware about some issues. Some cautions are
there.”

Analyse the above statement with relevant theory.

Send Email: [email protected]
Email subject: MKT 502-Name
 STEP 4: DETERMINE RESEARCH DESIGN
By research design we are referring to the research approach used to meet the research objectives.
Three widely recognized research designs are exploratory, descriptive, and causal.
Exploratory research, as the name implies, is a form of casual, informal research that is undertaken
to learn more about the research problem, learn terms and definitions, or identify research priorities.
Often exploratory research is conducted early on to help clients determine the research objectives.
Descriptive research refers to research that describes the phenomena of interest. Many surveys are
undertaken to describe things: level of awareness of advertising, intentions to buy a new product,
satisfaction level with service, and so on. The final type of research approach is causal research
design.
Causal studies attempt to uncover what factor or factors cause some event.
Which web page is more likely to induce a user to put a product in their shopping
basket? Causal studies are achieved from a class of studies we call experiments.
STEP 5: IDENTIFY INFORMATION
TYPES AND SOURCES

Two types of information are primary (information collected specifically

for the problem at hand) and secondary (information already collected).
Secondary information should always be sought first, since it is much
cheaper and faster to collect than primary information and is sometimes
superior to information that an individual firm is able to collect on its own.
Much secondary information is available in published sources in the
library or online, and is either free or available for a small fee.
STEP 6: DETERMINE METHODS OF
ACCESSING DATA
Data may be accessed through a variety of methods.
Although secondary data are relatively easy to obtain, accessing primary
data is much more complex.
Some data are collected through observation of consumers.
Some data are collected by monitoring information available online.
Other data might be collected by using surveys.
Often multiple methods, called mixed methods, are used to acquire data.
 STEP 7: DESIGN DATA COLLECTION FORMS
Step 7 involves designing the form for data collection.
If we communicate with respondents (ask them questions), the form is called a questionnaire.
If we ask questions in a focus group, the form is called a focus group guide.
Questions must be phrased properly to generate answers that satisfy the research objectives and
therefore can be used to solve the problem.
The questions must be clear and unbiased. Care must also be taken to design the questionnaire to
reduce refusals to answer questions and to get as much information as desired from respondents.
Software is available to assist researchers in creating surveys, such as Qualtrics and
SurveyMonkey. Most of these programs allow users to post the surveys online and, with a
subscription service, the data are automatically downloaded into software such as Excel or SPSS
as respondents complete the surveys
 STEP 8: DETERMINE THE SAMPLE PLAN AND SIZE
A population consists of the entire group about which the researcher wishes to make
inferences based on information provided by the sample data.
A population could be “all department stores within the greater Portland, Oregon,
area,” or it could be “college students enrolled in the College of Business at XYZ
College.” Populations should be defined by the research objectives.
A sample is a subset of the population. Sample plans describe how each sample
element, or unit, is to be drawn from the total population. The objectives of the
research and the nature of the sample frame (list of the population elements or units)
determine which sample plan is to be used
Another issue is sample size. How many elements of the population should be used
to make up the sample? The size of the sample determines how accurately your
sample results reflect values in the population.
STEP 9: COLLECT DATA

Errors in collecting data may be attributed to fieldworkers or to respondents, and they

may be intentional or unintentional.
Researchers should know the sources of these errors and implement controls to
minimize them. For example, fieldworkers, the people who are collecting the data,
may cheat and make up data they report as having come from a respondent.
Researchers aim to minimize this possibility by undertaking a control referred to as
validation. Validation means that 10% (the industry standard) of all respondents in
a marketing research study are randomly selected, re-contacted, and asked if they
indeed took part in the study. Companies that specialize in data collection are referred
to as field services firms.
STEP 10: ANALYZE DATA

Marketing researchers transfer data from the data collection forms and enter the data
into software packages that aid them in analyzing the data.
The objective of data analysis is to use statistical tools to present data in a form that
fulfills the research objectives.
If the research objective is to determine if there are differences in intention to purchase
a new product between four levels of income groups, data analysis would be used to
determine if there are any differences in intention to purchase among the income
groups in the sample, and to determine if these differences actually exist in the
population.
STEP 11: COMMUNICATE
THE INSIGHTS
The final step in the research process is to communicate the insights.
Traditionally, the form that this communication process has taken is for the
researchers to present a written research report, plus an oral presentation, to the
client and staff.
However, insights are being communicated in increasingly customized and interactive
ways, using tools such as dashboards, videos, and infographics.
Regardless of the reporting method, the most important criterion for communicating
insights is to clearly communicate the research findings and their strategic
implications to the client.
Defining the Problem
Defining the problem properly is the most important step in the marketing research process.
The success of a marketing research project depends on properly pinpointing a problem to
formulate the problem statement.
If the problem is defined incorrectly, the rest of the steps in the research process will be
fundamentally flawed.
Problems are situations that call for managers to make choices among various alternatives.
When managers make decisions, they do so to solve a problem. Sometimes these decisions are
so routine and so easily made based on past experience that we don’t think of them as
“problems.”
The marketing research process begins when a managerial problem or opportunity exists that
demands action, but there is not enough information to know how to respond to the problem.
This sets into motion a series of tasks that ultimately leads to establishing research objectives.
As Figure 3.2 shows, there are four tasks to defining a marketing research problem.
Figure 3.2
 1. RECOGNIZE THE PROBLEM
A manager encounters a problem when he or she encounters a situation that is potentially negative or positive for
the organization. These two sources of problems can be stated as either the failure to meet an objective or the
identification of an opportunity.
Failure to Meet an Objective A problem occurs when there is a gap between what was supposed to happen and what
did happen—in other words, management has failed to meet an objective.
Examples of failing to meet an objective might include a retailer that experiences a decrease in sales revenue over
time, a website yielding fewer conversions, or an advertising campaign not resulting in a higher level of brand
awareness. Faced with a problem, management must determine what the best course of action is to try to close the
gap between the objective and actual performance.
Identification of an Opportunity An opportunity occurs when there is a gap between what did happen and what
could have happened. This situation represents a failure to realize a “favorable circumstance or chance for progress
or advancement.”6 Examples of opportunities might include a new use for a product that is identified on social
media, or delivering a service to the door of a desirable target market.
A marketing opportunity is defined as a potentially favorable circumstance in which a company can perform
successfully.
 2. UNDERSTAND THE BACKGROUND
OF THE PROBLEM
Managers often consult researchers when they realize that something is wrong and they need help in
diagnosing the situation.

Managers may be aware of a symptom, or an observable sign that indicates that a problem exists (for
example, “our measure of customer satisfaction has fallen 10% in each of the past two months”). But
that does not mean that the manager knows what the problem is. As a result, managers may not be sure
what decision they should make, if any.

For example, the airline JetBlue noted that its Philadelphia customers consistently gave it low ratings.
Since the company found no problems with on time flights in Philadelphia, it was puzzled about what
was causing this discontent. Rather than just concluding that Philadelphia had grumpy passengers
however, JetBlue dug deeper. It turned out that many JetBlue flights in Philadelphia were scheduled
early in the morning, before airport coffee shops were open. JetBlue worked with the coffee shops to get
them to open earlier. With that adjustment, JetBlue’s ratings in Philadelphia rose almost immediately to
average levels.
Sometimes managers have already defined what they think the problem is and the decision that must be
made to resolve it. Even so, the researcher has an obligation to be sure that the problem is defined correctly.

To understand the background of a problem, the researcher must conduct a situation analysis, clarify the
symptoms of the problem, and determine the probable causes of those symptoms.
3. DETERMINE
THE DECISION ALTERNATIVES
Decision alternatives are all the marketing actions that the manager thinks may resolve the
problem.

Common examples are price changes, product modification or improvement, new promotional
campaigns, and adjustments in channels of distribution.

During this phase, the researcher’s marketing education and knowledge come fully into play.
Often, the manager and researcher brainstorm possible decision alternatives that may serve as
solutions.

It is important for the manager to specify as many decision alternatives as possible that might
address the probable cause of the symptom.
4. FORMULATE THE PROBLEM STATEMENT
Having gone through all of the tasks previously outlined, the researcher should be ready for the final phase of
problem definition: developing a problem statement.

The problem statement is a concise description of the problem or opportunity that management is
facing that requires research to make a decision.
The following are examples of problem statements:

■■ An apartment manager wants to increase the proportion of occupancies per year at his

apartment complex.

■■ A snack manufacturer seeks to increase sales by offering biodegradable packaging.

■■ An app developer hopes to increase the number of downloads of her app.

■■ A retailer wants to understand the consequences of an increase in sales to baby boomers

and a decrease in sales to millennials during the past 12 months.

Task-5 Min
Evaly is getting more negative comments in facebook from customers. Customers sending agry
messages saying they are not happy about the service.

What will be the “Problem Statement”?