Chapter 4 of BEM314, Problem definition is the starting point of any scientific research process. The marketing problem is the basis of any investigation, and so it is necessary to obtain a clear insight into the nature, scope, and intensity of the problem before formulating the research problem.
Chapter 4: Problem Definition and Research Objectives
1. Introduction
Problem definition is the most important step in a research project, and often more important than its
solution.
Two steps of marketing research process:
- Problem definition
- Research objectives
The first step is to identify and define the nature and scope of the marketing problem – also referred to as the
decision-making problem or marketing opportunity.
Based on the research problem, the research questions and objectives are developed.
2. The Marketing Problem:
The initial stage, the decision-maker does not know precisely what the problem is, what the opportunity
involves, or what has to be decided.
The decision maker is only aware that something is wrong with the marketing activities of the enterprise.
Decision makers usually become aware of a problem or opportunity when conflicting fragments of information,
reports, opinions and symptoms come to their attention.
The steps of marketing problem:
a. Identify the decision-making situation
b. Define the marketing problem
a. Identify the decision-making situation:
- A decision-making situation arises when the decision maker has to choose between two alternative
courses of action to achieve a particular objective and is nit sure of the outcome of that decision.
- A decision is required in situations that involve the problem and opportunities.
- A decision-making situation is characterized by a:
Symptom – a particular condition that indicates the presence of a problem or an opportunity.
- It is a sign to the marketing manager that a problem or opportunity requiring decisions is
about to arise
- The Iceberg principle
The true cause of the “visible” symptom- the underlying problem/ opportunity must be
investigated by analyzing environmental factors and marketing strategy. Enterprise’s
behavioural response & performance standards usually indicate the symptom. Underlying
problem/ opportunity can be found in the marketing mix & situational variables.
Problem – indicates that something is wrong and needs attention.
- It refers to those independent variables that prevent conformity between the
performance standards and planned objectives of enterprise.
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