1. Chapter 2 Problem Definition

2. Topics Importance of Problem Definition The Process of Problem Definition –Tasks Involved –Environmental Context –Management Decision Problem –Marketing Research Problem –Approach to the Problem

3. Importance of Problem Definition Foundation or starting step Potential loss of time, money, effort if faulty

4. Tasks Involved (slides 4-8) helps understand problem background uses varying points of view –decision maker –experts –customers –secondary data

5. Discussions with Decision maker Needed to identify ‘managerial decision problem’ obvious step use ‘problem audit’ methodology –history of the problem –identify underlying causes (potential) –decision maker to evaluate each cause –zero in on a few possible causes

6. Interview with Industry Experts useful for industrial products and new products prepare an interview guide, but be flexible

7. Secondary Data Analysis huge volume of data problem is in finding the source that has the information computerized data bases make the process easier companies have resources to buy data

8. Qualitative Research involves talking to customers individually - in-depth interviews in groups - focus groups can provide valuable insights into the problem

9. Environmental Context (slides 9- 15) identifies factors that have an impact on how the problem is defined

10. Past Information and Forecasts past data can help researcher understand the magnitude of the problem let us say sales are down collect information on firm sales and industry sales can evaluate whether firm sales are down relative to industry sales other areas: market share, profitability, technology, customer base, lifestyle

11. Resources and Constraints money and time constraints skill and knowledge level internal politics

12. Objectives organizational and personal communication essential to identify the latter

13. Buyer Behavior useful in understanding and predicting consumer response –number and geographical location –demographics/psychographics/behaviors –media behavior –price sensitivity/loyalty –decision process/criteria –response to marketing programs

14. Legal and Economic Environments federal laws general state of the economy

15. Marketing and Technological Skills influences potential courses of action for the firm determined by the skills and competencies of the firm is usually interpreted relative to competitors

16. Management Decision Problem define the problem in ‘action’ terms –should a new product be introduced? –Should the advertising campaign be changed? –Should the price be decreased? –Should the brand image be changed? –How should store patronage be increased?

17. Marketing Research Problem define the problem in ‘information’ terms e.g. how should store patronage be increased? –Store selection criteria –store evaluation on each criterion –store patronage for specific product categories –market share of competing stores in each product category –customer profile –importance of customer and store characterictics

18. Components of the Approach Objective/Theoretical Framework Analytical Model Research Questions Research Hypotheses