Page 58 - DMGT408DMGT203_Marketing Management

Unit 2: Understanding the Marketplace and Consumers

situation and carefully define the problem to be addressed. There is a popular saying, “A problem Notes
well-defined is half solved.” However, the definition of marketing problem may not always be
easy because the real issue may not be apparent to decision-makers and has to be identified and
precisely defined.
Marketing departments, particularly in large organisations, maintain Marketing Information
Systems (MIS), which provide a continuous, and systematic flow of information for use in
making marketing related decisions. Firms with inadequate information often find it difficult
and time consuming to define the problem accurately and good research on the wrong problem
is a waste of money and effort.

Problem Definition

The company’s sales are declining and not producing the expected profits. Last year our market
share slipped 10 per cent in men’s jeans, and 12 per cent in men’s footwear. Studies conducted
show we are losing sales to other competitors in the same business and that customers are
confused about our position in the market. We need to decide how we position ourselves in the
future market place.

The statement clearly defines the specific and measurable problem that the research project has
to address. All the five questions help specify relevant objectives for which the research should
provide the information needed by the decision-makers to decide on a new positioning strategy
for the marketer. This would facilitate the company in developing appropriate marketing plans,
along with advertising and promotion strategies to communicate the new positioning to audiences
in the target market(s) and hopefully regain the lost market position and increase profitability.
The research objective defines what information is needed to solve the problem. To design a
promising research project, the first prerequisite is to refine a broad, indefinite problem into a
precise researchable statement. A clear definition of problem and subsequent setting of relevant
and precise objective(s) facilitates deciding what kind of basic research approach would be
appropriate.

Going by the above mentioned problem definition, we can have a definite statement of research
objective(s):

Research Objectives

We must find out: (1) Who are our customers? (2) Who are the customers of the competing
brands? (3) What do these customers like and dislike about us and the competitors? (4) How are
we currently perceived among customers? And (5) What must we do to clarify and improve the
customers’ existing perceptions?

2.7.2 Design Research Project

Marketing research design refers to the specification of methods for gathering and analysing the
data necessary to facilitate identifying or reacting to a problem or opportunity. The users of
research and those that conduct the research both should be aware why the research is being
conducted.

To achieve accuracy and gain useful information through marketing research, the research
design should be developed carefully and strict standards should be applied for collecting and
tabulating the data. The advertiser must ensure that the collected data is valid and reliable to be
useful. Validity means the research must actually measure what is being investigated.

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