McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
CHAPTER 3
Problem Definition, Exploratory Research, and the Research Process
LEARNING OBJECTIVES
1. To understand the problem definition process.
3. To understand the components of the research request.
5. To become familiar with how the marketing research process is initiated.
KEY TERMS
Opportunity identification Situation analysis
Exploratory research Pilot studies
Experience surveys Case analysis
Research proposal
CHAPTER SCAN
This chapter outlines the marketing research process. The first and most important step in the
process is the problem/opportunity identification process. If the problem/opportunity is not
McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
understood distinctly, the value of the entire project may be in question. The second step is
creating the research design. This is the plan to be followed in the research project. Step three
involves choosing one of three basic methods of research, surveys, observations or experiments.
In the fourth step the sampling procedure will be chosen then the data is actually collected in step
five. The data must be analyzed, then communicated through a written and often oral report,
CHAPTER OUTLINE
1. Critical Importance of Correctly Defining the Problem
I. Study Results of a Packaged Goods Company
II. Recognize the Problem or Opportunity
A. Opportunity Identification
III. Find Out Why the Information is Being Sought
A. Helpful Activities
IV. Understand the Decision-Making Environment with Exploratory Research
A. Situation Analysis
McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
H. Using Intranets for Exploratory Research
I. Completing Exploratory Research
V. Use the Symptoms to Help Clarify the Problem
A. Symptom
B. “What caused this to occur?”
VI. Translate the Management Problem into a Marketing Research Problem
A. Marketing Research Problem
2. The Marketing Research Process
I. Creating the Research Design
A. Research Design
B. Descriptive Studies
B. Nonprobability Sample
McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
3. Managing the Research Process
I. The Research Request
A. Research Request
4. The Marketing Research Proposal
I. Research Proposal
II. What to Look for in a Marketing Research Supplier
A. Desirable Qualities in Marketing Researcher
5. What Motivates Decision Makers to Use Research Information?
6. Summary
CHAPTER SUMMARY
Conducting marketing research involves a series of logical steps beginning with problem
definition and research objectives. These steps are the focus of this chapter.
1. CRITICAL IMPORTANCE OF CORRECTLY DEFINING THE PROBLEM
See Exhibit 3.1Problem Definition Process (p 58) (This is an excellent tool to show the
McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
students that the ultimate goal is to develop clear, concise, and meaningful marketing research
objectives.)
I. Study Results of a Package Goods Company
II. Recognize the Problem or Opportunity
A. Opportunity Identification
1. External environment
3. New opportunities
III. Find Out Why the Information Is Being Sought
A. Helpful Activities
1. Discuss what the information will be used for and what decisions might be made as a result of
the research.
3. Rephrase the questions in several slightly different forms, and discuss the differences
5. Remember that the more clear-cut you think the questions are and the more quickly you come
to feel that the questions are straightforward, the more you should doubt that you have
understood the real need
IV. Understand the Decision-Making Environment with Exploratory Analysis
Once the motivation for conducting research, they often need additional background information
A. Situation Analysis–studying the decision-making environment within which the marketing
research will take place
B. Exploratory Research–conducted to obtain greater understanding of a concept or to help
crystallize the definition of a problem
3. Takes several forms: pilot studies, experience surveys, secondary data analysis, case analysis,
focus groups, using the Intranets
McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
C. Pilot studies–use a limited number of respondents and less rigorous sampling techniques
D. Experience surveys–interviewing knowledgeable individuals, both inside and outside of the
organization
E. Secondary data–data that has been gathered for some other purpose than the problem at hand
F. Case analysis–reviewing information from situations that are similar to the current one
1) Internet–research can use online search engines to find information needed–faster than going
to the library plus allows access to information that cannot be found in a library
I. Completing Exploratory Research–when the researcher is convinced that he or she has
1. Iceberg principle–focusing on the symptoms and not the true problem
B. “What caused this to occur?”–when this question can no longer be answered, the true
problem has been found
See Practicing Marketing Research: Driving Action-Producing Research (p 72)
Corporate researchers ultimately are responsible for the research-yielding action. This role
shouldn’t be relegated to marketers (who aren’t as well versed in research) or research suppliers
(who are less familiar with the business as “outsiders,” and don’t know how the research fits into
a larger research and business plan). Therefore, to design actionable research, researchers must
play both marketing and market research roles. If you ran the business, then what would you
need to know to make it successful? Starting with this question—and knowing how to answer
McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
others.
Three basic objectives and corresponding strategies can gain volume, depending on the
business’s nature.
• Increase penetration: Grow awareness and trial of new or existing low-penetration
products.
Discussion Questions:
1. Is it the sole responsibility of marketing researchers to define the management problem? Why?
2. What happens if the management problem is defined incorrectly?
VI. Translate the Management Problem Into a Marketing Research Problem
A. Marketing Research Problem–specifies information needed to solve the problem and how
that information can be obtained efficiently and effectively
1. Developing new information rather than delving through old reports and data files is more
interesting
3. However, using existing data can save managers time and money if such data can answer the
1. After the development of the research objectives–check with the committee or individual in
McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
charge and determine if this is really the information needed to solve the problem or reach their
1. Instances in which you know for certain that information of the type required exists or can be
readily obtained
3. Cases in which you know that you are trying something quite new and there is a real risk of
drawing a complete blank
See Practicing Marketing Research: The Importance of Top Management’s Definition of
the Management Problem (p 65)
The researcher needs to have direct interaction with the final decision maker when determining
what information is being sought through this study. Example: Mid-level manager said that the
research was being conducted to learn about the market. The senior manager really wanted to
Discussion Questions:
1. Should top management always be involved in defining the management problem?
2. What tactics might marketing researchers use to get top management involved in problem
definition?
1. Road Map–well-formulated objectives provide the direction in pursuing the research project
McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
2. Serve as a standard that later will enable managers to evaluate the quality and value of the
work
B. Research Objectives as Hypotheses
1. Hypothesis–conjectural statement about a relationship between two or more variables that can
be tested with empirical data
2. Should contain clear implications for testing stated relationships
2. MARKETING RESEARCH PROCESS
See Exhibit 3.2 Marketing Research Process (p 67)
I. Creating the Research Design
A. Research Design–the plan to be followed to answer the research objectives or hypothesis
1. Research design can lead to an array of choices with advantages and disadvantages. There are
trade-offs involved such as:
1. Variable–a symbol or concept that can assume any one of a set of values
2. Descriptive research can shed light on associations or relationships; it helps the research select
variables for a causal study
C. Causal Studies–investigate whether one variable causes or determines the value of another
1. Dependent variable–to be predicted or explained
2. Independent variable–the variable that affects or causes the dependent variable–can be
manipulated, changed, or altered
4. Concomitant variation–the degree to which a presumed cause and a presumed effect occur
together or vary together
5. Spurious association–variables are actually causing changes in the dependent variable
II. Choosing a Basic Method of Research
McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
2. To control factors that might influence the dependent variable is to use a laboratory
experiment
III. Selecting the Sampling Procedure
A. Probability sample–subset of a population that can be assumed to be a representative cross-
1. Does the report meet the objectives established in the proposal?
2. Has the methodology outlined in the proposal been followed?
3. Are the conclusions based on logical deductions from the data analysis?
4. Do the recommendations seem prudent, given the conclusions?
1. Publishing report on the Web has a number of advantages
a. The reports become immediately accessible to managers and other authorized and interested
parties worldwide
3. MANAGING THE RESEARCH PROCESS
I. The Research Request
A. Research Request–used as the basis for determining which projects will be funded. An
internal document used by large organizations that describes a potential research project, its
B. Components:
1. Action–describes the action to be taken on the basis of the research
3. Information–list the questions that need to have been answered to take action
4. Use–explain how each piece of information will be used to help make the actual decision
5. Target groups and subgroups–describe those from whom information must be gathered to
address the research problem
7. Comments-other comments relevant to the research project must be stated
II. Request for Proposal (RFP)–solicitation sent to marketing research suppliers inviting them
to submit a formal proposal, including a bid
A. Information provided by a RFP:
1. Background data on why a study is to be conducted
3. Describes a methodology
5. Detailed cost breakdown
7. References
see Exhibit 3.3 Benefits of a Good Proposal (p 74)