W2: Chapter 2 - Defining the Marketing Research Problem and Developing an Approach (pg. 57-72)
Objectives
Understand the importance of and the process used for defining the marketing research problem.
Describe the tasks involved in problem definition, including discussions with decision makers, interviews with industry experts, secondary data analysis, and qualitative research.
Discuss the environmental factors affecting the definition of the research problem: past information and forecasts, resources and constraints, objectives of the decision maker, buyer behavior, legal environment, economic environment, and marketing and technological skills of the firm.
Clarify the distinction between the management decision problem and the marketing research problem.
Explain the structure of a well-defined marketing research problem, including the broad statement and the specific components.
Discuss in detail the various components of the approach: objective/theoretical framework, analytical models, research questions, hypotheses, and specification of information needed.
Acquire an appreciation of the complexity involved and gain an understanding of the procedures for defining the problem and developing an approach in international marketing research.
Describe how social media can be used to identify and define the marketing research problem and aid in developing an approach.
Discuss the use of mobile marketing research in problem definition and approach development.
Understand the ethical issues and conflicts that arise in defining the problem and developing the approach.
Case Study: Harley-Davidson's Comeback Decision
Background:
Harley-Davidson made a significant comeback in the early 2000s, with a market share of about 50 percent in the heavyweight motorcycle category.
Distributors urged the company to build more motorcycles, but management was cautious about investing in new production facilities due to past challenges and declining quality.
Harley-Davidson recognized the importance of brand image and loyalty in motorcycle sales, as motorcycles were primarily used for recreation.
The decision problem was whether to invest in producing more motorcycles, and the research problem was to assess long-term customer loyalty.
Specifically, the research had to address the following questions:
Who are the customers? What are their demographic and psychographic characteristics?
Can different types of customers be distinguished? Is it possible to segment the market in a meaningful way?
How do customers feel regarding their Harleys? Are all customers motivated by the same appeal?
Are the customers loyal to Harley-Davidson? What is the extent of brand loyalty?
One of the research questions (RQs) examined and its associated hypotheses (Hs) follow:
RQ: Can motorcycle buyers be segmented based on psychographic characteristics?
H1: There are distinct segments of motorcycle buyers.
H2: Each segment is motivated to own a Harley for a different reason.
H3: Brand loyalty is high among Harley-Davidson customers in all segments.
Major Findings:
Seven customer segments were identified: adventure-loving traditionalist, sensitive pragmatist, stylish status seeker, laid-back camper, classy capitalist, cool-headed loner, and cocky misfit, supporting H1.
Despite different psychographic profiles, all customers shared a desire to own a Harley as a symbol of independence, freedom, and power, contradicting H2.
All customers exhibited high brand loyalty to Harley-Davidson, supporting H3.
Decision and Outcome:
Based on the research findings, Harley-Davidson decided to invest in increasing the number of motorcycles built in the future.
This case study illustrates how Harley-Davidson used market research to understand its customer base, leading to an informed decision to invest in expanding its motorcycle production. The findings showed that despite distinct customer segments, the appeal of Harley-Davidson as a symbol of freedom and power remained consistent across all segments. This strategic decision played a crucial role in the company's continued success.
Problem Definition in Marketing Research
Definition: Problem definition in marketing research is the process of creating a clear and specific statement of the research problem or opportunity, which is crucial for designing and conducting research effectively.
Importance of Defining the Problem:
Problem definition is the most critical step in a marketing research project.
In marketing research, problems and opportunities are used interchangeably.
Problem definition involves stating the general problem and specifying its components.
Proper problem definition is essential for designing and conducting research effectively.
Significance of Problem Definition:
In marketing research, a clear definition of the research problem is crucial for fulfilling the client's needs.
Effort, time, and resources invested in research can go to waste if the problem is poorly defined.
According to Peter Drucker, “serious mistakes are made not as a result of wrong answers but because of asking the wrong questions.”
Inadequate problem definition is a common reason for the failure of marketing research projects.
Improving communication and involvement in problem definition can enhance research usefulness.
Key Takeaways:
Problem definition is a vital step in marketing research and should not be underestimated.
Accurate problem definition helps ensure that research efforts are effective in addressing the client's needs and objectives.
The Process of Defining the Problem and Developing an Approach
Problem Definition and Approach Development Process:
It involves tasks like discussions with decision makers, interviews with industry experts, analysis of secondary data, and sometimes qualitative research.
These tasks help the researcher understand the problem's background by analyzing the environmental context.
Understanding the environmental context facilitates the identification of the management decision problem.
Importance of Discussions with Decision Makers (DM):
Decision makers need to comprehend the capabilities and limitations of research.
Research provides relevant information but not solutions, which require managerial judgment.
Researchers must understand the nature of the decision managers face and what they hope to learn from research.
Interaction with DMs is essential, although it may be complicated due to factors like access, protocols, or multiple key decision makers.
The Problem Audit:
A problem audit is a comprehensive examination of a marketing problem to understand its origin and nature.
It involves discussions with DMs on various issues.
These discussions help in identifying:
Events that led to the decision that action is needed (history of the problem).
Alternative courses of action available to the DM.
Criteria for evaluating alternative courses of action.
Potential actions based on research findings.
Information needed to answer DMs' questions.
How each piece of information will be used in decision making.
Corporate culture as it relates to decision making.
Importance of the Problem Audit:
DMs often have a vague idea of the problem, focusing on symptoms rather than causes.
Symptoms like inability to meet sales forecasts, loss of market share, and declining profits need to be addressed.
Researchers should aim to identify underlying causes to successfully tackle the problem.
Example: McDonald's Problem Audit:
McDonald's was losing market share to competitors like Burger King and Wendy's.
The problem audit included understanding the history of the problem, alternatives, criteria for evaluation, research findings, information needed, and corporate culture.
Key Takeaway:
Problem definition is a crucial step in marketing research.
It involves understanding the problem's context, interacting with decision makers, and conducting a problem audit.
Identifying the underlying causes of a problem is essential for successful resolution.
Case Study: Look Who’s Picking Levi’s Pocket
Teenage Jeans Market Shift:
Teenagers have historically favored big brand jeans (e.g., Levi’s, Lee, Wrangler) over store label jeans.
Teenagers' preference for big brand names created dominance in the $14 billion jeans industry.
Marketing Research Problem: Image Enhancement:
Store label jeans (e.g., Arizona jeans and Gap’s in-house brands) discovered their low market share was due to a poor image among teenagers.
The marketing research problem was defined as enhancing the image of store label jeans in the lucrative teenage segment.
Store Brand Image Enhancement Strategies:
Store label jeans revamped their image with "cutting-edge" advertising targeting teenagers.
Marketing campaigns featured rock bands and high-tech imagery to attract teenagers.
Promoted trendy websites to create a "cool" factor.
Gap separated its store brand jeans from the store's "uncool" image by targeting teens specifically.
Results and Market Share Shift:
Store label jeans' market share increased from 2005 to 2015, while Levi’s, the market leader, saw a drop.
These results encouraged other stores to consider introducing their own label jeans targeting the teenage market.
Problem Audit: Facilitating Problem Definition:
Problem audits involve extensive interaction between decision makers (DM) and researchers.
The interaction is fruitful when characterized by the seven Cs:
Communication: Free exchange of ideas between DM and researcher.
Cooperation: Marketing research is a collaborative team project.
Confidence: Mutual trust guides the interaction.
Candor: No hidden agendas, openness in discussions.
Closeness: Warm and close relationship between DM and researcher.
Continuity: Ongoing interaction instead of sporadic.
Creativity: Creative discussions rather than formulaic interactions.
Key Takeaways:
Store label jeans targeted image enhancement in the teenage market to compete with big brands.
Marketing campaigns included rock bands, high-tech imagery, and trendy websites.
Gap separated its store brand jeans from its "uncool" store image.
Store label jeans saw increased market share, while big brands experienced drops.
Problem audits facilitate problem definition through fruitful DM-researcher interaction.
Interviews with Industry Experts
Role of Industry Experts:
Interviews with industry experts are crucial for problem formulation in marketing research.
Experts may be individuals with extensive knowledge about the firm and the industry, both internal and external to the organization.
Expanded Definition of Experts:
Interviews with knowledgeable individuals outside the organization can be considered as an experience survey or key-informant technique.
In a technological context, the lead-user survey can be applied, involving insights from lead users of a specific technology.
Information Gathering Process:
Expert information is gathered through unstructured personal interviews, usually without a formal questionnaire.
While interviews follow a list of topics, the specific order and questions are decided during the interview to allow flexibility in capturing expert insights.
Purpose of Expert Interviews:
The primary purpose is to define the marketing research problem, not to provide definitive solutions.
Expert input is particularly valuable in industrial and technical fields, where experts are relatively easy to identify and approach.
Challenges of Expert Interviews:
Questionable Expertise: Some self-proclaimed experts may lack genuine expertise.
Expert Availability: Locating and obtaining assistance from external experts can be challenging.
Applicability of Expert Interviews:
Expert interviews are especially useful in industrial research and for technically complex products.
They are valuable when little information is available from other sources, such as with entirely new products.
The internet can be a valuable resource for finding external industry experts by searching industry websites, forums, and newsgroups.
Key Definitions
Experience Survey: An interview with people very knowledgeable about the general topic being investigated.
Key-Informant Technique: Another name for conducting an experience survey (i.e., an interview with people very knowledgeable about the general topic being investigated).
Lead-User Survey: Interview with lead users of the technology.
Secondary Data: Data collected for some purpose other than the problem at hand.
Key Takeaways:
Interviews with industry experts play a critical role in defining marketing research problems.
The definition of experts extends to knowledgeable individuals both within and outside the organization.
The lead-user survey is a variation of expert interviews focused on technology users.
The main purpose of expert interviews is to formulate research problems rather than providing solutions.
Challenges include the need to ensure the expertise of those being interviewed and the availability of external experts.
Expert interviews are particularly valuable in industrial and technical contexts and when limited information is available from other sources.
Case Study: Cherry Picking: The Repositioning of Diet Cherry Coke
Coca-Cola and Diet Cherry Coke:
As of 2018, Coca-Cola was the leading global manufacturer and distributor of nonalcoholic beverages in over 200 countries.
Diet Cherry Coke sales had been declining, with the distribution being cut back by Coke system bottlers.
The challenge was to identify the reasons for this decline and rectify the situation.
Consulting Industry Experts:
Industry experts were consulted to understand the root of the problem.
They highlighted the significance of brand image in soft drink sales.
Diet Cherry Coke was perceived as outdated and conventional, inconsistent with Cherry Coke's image.
Defining the Marketing Research Problem:
The marketing research problem was identified as assessing the image and positioning of Diet Cherry Coke.
Research Findings and Repositioning:
The research confirmed the experts' diagnosis and provided valuable insights.
Diet Cherry Coke was repositioned to align better with Cherry Coke's image, with a focus on appealing to a younger audience.
Packaging was redesigned to match Cherry Coke's branding, using bold and edgy graphics to attract a youthful demographic.
Diet Cherry Coke was associated with Cherry Coke in teen-targeted promotional giveaways.
Results and Turnaround:
Repositioning Diet Cherry Coke as a youthful soft drink and targeting teenagers led to increased sales.
Sales showed an upward trend, illustrating the effectiveness of addressing the real problem identified by industry experts.
Key Takeaways:
Coca-Cola, a global beverage leader, faced declining sales of Diet Cherry Coke.
Industry experts were consulted to diagnose the issue, highlighting the importance of brand image.
The marketing research problem was defined as assessing Diet Cherry Coke's image and positioning.
Repositioning, with a focus on youth appeal and alignment with Cherry Coke's image, led to increased sales.
The repositioning effort was effective in addressing the issue identified with the help of industry experts.
Secondary Data Analysis and Qualitative Research in Problem Definition
Introduction:
Secondary data are data collected for purposes other than the current research problem, while primary data are collected specifically for addressing the research problem.
Secondary data sources include business and government data, commercial marketing research firms, and computerized databases.
Importance of Secondary Data Analysis:
Secondary data serve as an economical and quick source of background information.
Analyzing relevant secondary data is a crucial step in problem definition, preventing the collection of primary data until secondary data have been fully examined.
Qualitative Research:
Qualitative research is often necessary when decision makers, industry experts, and secondary data alone are insufficient to define the research problem.
Qualitative research is unstructured, exploratory, based on small samples, and may involve techniques like focus groups, word association, and depth interviews.
Exploratory Research Techniques:
Pilot surveys, a type of exploratory research, are less structured than large-scale surveys and include more open-ended questions with smaller sample sizes.
Case studies, another exploratory method, involve an intensive examination of selected cases (e.g., customers, stores) to gain insights.
Role of Qualitative Research:
While informal, research at this stage can provide valuable insights into the problem.
Industry experts and focus groups helped Harley-Davidson identify brand loyalty as an essential factor in the problem definition.
Qualitative research techniques, secondary data, and expert input guided the definition of the problem: "Determining if customers would be loyal buyers of Harley-Davidson in the long term."
Conclusion:
Secondary data analysis and qualitative research are critical components of the problem definition process.
They help ensure that primary data collection is based on a thorough understanding of the research problem.
Case Study: P&G's Innovative Approach to Consumer Insights
Introduction:
P&G, a global consumer goods manufacturer, is using a unique approach to gain consumer insights.
The company sends video crews and cameras into about 80 households worldwide to capture daily routines and procedures on tape.
The aim is to obtain deeper insights into consumer behavior compared to more traditional research methods.
Challenges with Traditional Methods:
Traditional methods like focus groups, interviews, and home visits may yield biased or inaccurate information.
People tend to have selective memories and may not fully reveal their habits or behaviors to market researchers.
Video Ethnography Approach:
P&G's video ethnography approach involves sending one or two ethnographer-filmmakers to participating households.
Filming begins in the morning when the alarm clock rings and continues throughout the day for about four days.
To minimize intrusion, the camera is occasionally left in a room with the subjects, or they are allowed to film themselves.
Ground rules include informing friends about the filming, and certain private activities are excluded from recording.
Application of Insights:
P&G uses the information obtained from this research to develop innovative products that cater to market needs.
For example, insights revealed the challenges faced by working mothers during hectic mornings.
P&G identified the need for multipurpose products to simplify routines, leading to the launch of products like a CoverGirl cosmetic that combines moisturizer, foundation, and sunscreen.
Conclusion:
P&G's video ethnography approach provides a more comprehensive understanding of consumer behavior.
This innovative method helps P&G tailor its products to better meet consumer needs and preferences.
Environmental Context of the Problem
environmental context of the problem The set of factors having an impact on the definition of the marketing research problem, including past information and forecasts, resources and constraints of the firm, objectives of the decision maker, buyer behavior, legal environment, economic environment, and marketing and technological skills of the firm.
To define a marketing research problem effectively, one must consider the environmental context surrounding it.
The environmental context includes various factors that influence the problem definition process.
Factors in the Environmental Context:
Past Information and Forecasts:
Analyzing historical data and forecasts is crucial to understanding the problem.
Information about sales, market share, profitability, demographics, and technological trends is relevant.
This analysis should be conducted at both industry and firm levels.
Resources and Constraints of the Firm:
The firm's available resources and constraints, such as budget limitations, personnel, and technology, can impact the research problem.
Objectives of the Decision Maker:
Understanding the goals and objectives of the decision maker is essential.
The research problem should align with the decision maker's aims.
Buyer Behavior:
Understanding how consumers behave, including their preferences and buying habits, is crucial.
This knowledge informs the research problem, especially in terms of consumer needs and wants.
Legal Environment:
Legal factors such as regulations and compliance requirements can influence the marketing research problem.
Researchers must consider the legal framework within which the firm operates.
Economic Environment:
Economic conditions, such as inflation, recession, or economic growth, can impact the problem's definition.
Economic factors may influence consumer behavior and market dynamics.
Marketing and Technological Skills of the Firm:
The capabilities and skills of the firm in marketing and technology play a significant role.
These skills affect the firm's ability to address the research problem effectively.
Importance of Environmental Context:
Analyzing these factors helps ensure that the marketing research problem is well-defined and considers the wider context.
A comprehensive understanding of the environment enables researchers to tailor research projects to the specific needs and constraints of the firm.
Case Study: Smarte Carte's Becomes Smart with Marketing Research
Smarte Carte, Inc., a global leader in baggage carts, lockers, and stroller services, sought to expand into new markets with a new "smart" locker technology.
They partnered with Emerge Marketing to identify ideal markets for their product.
Market Expansion Objectives:
Smarte Carte aimed to find markets with growth potential, low entry barriers, and favorable competitive landscapes for their new locker technology.
Research Approach:
Emerge Marketing utilized both qualitative and secondary data research methods.
Qualitative research included focus groups and depth interviews to gather insights.
Secondary data sources like Census Bureau information and Nielsen ratings provided additional data.
Identification of Ideal Markets:
The research narrowed down potential market segments based on key requirements.
Amusement parks, ski areas, and water parks emerged as suitable markets for the new locker technology.
These markets had specific needs that aligned with the product's features.
Problem Definition:
The research problem evolved into assessing the demand potential for the new technology in the selected segments.
Smarte Carte needed to quantify the market and plan for product development, manufacturing, and budgets accordingly.
Tailoring Products for Markets:
Smarte Carte made product adjustments based on market-specific requirements.
For water parks, keyless electronic storage lockers were developed to enhance visitor convenience and security.
Conclusion:
Through comprehensive marketing research, Smarte Carte identified and tailored their new locker technology to amusement parks, ski areas, and water parks.
This research-driven strategy allowed them to expand into markets with strong growth potential and a competitive advantage.
Objectives
Understand the importance of and the process used for defining the marketing research problem.
Describe the tasks involved in problem definition, including discussions with decision makers, interviews with industry experts, secondary data analysis, and qualitative research.
Discuss the environmental factors affecting the definition of the research problem: past information and forecasts, resources and constraints, objectives of the decision maker, buyer behavior, legal environment, economic environment, and marketing and technological skills of the firm.
Clarify the distinction between the management decision problem and the marketing research problem.
Explain the structure of a well-defined marketing research problem, including the broad statement and the specific components.
Discuss in detail the various components of the approach: objective/theoretical framework, analytical models, research questions, hypotheses, and specification of information needed.
Acquire an appreciation of the complexity involved and gain an understanding of the procedures for defining the problem and developing an approach in international marketing research.
Describe how social media can be used to identify and define the marketing research problem and aid in developing an approach.
Discuss the use of mobile marketing research in problem definition and approach development.
Understand the ethical issues and conflicts that arise in defining the problem and developing the approach.
Case Study: Harley-Davidson's Comeback Decision
Background:
Harley-Davidson made a significant comeback in the early 2000s, with a market share of about 50 percent in the heavyweight motorcycle category.
Distributors urged the company to build more motorcycles, but management was cautious about investing in new production facilities due to past challenges and declining quality.
Harley-Davidson recognized the importance of brand image and loyalty in motorcycle sales, as motorcycles were primarily used for recreation.
The decision problem was whether to invest in producing more motorcycles, and the research problem was to assess long-term customer loyalty.
Specifically, the research had to address the following questions:
Who are the customers? What are their demographic and psychographic characteristics?
Can different types of customers be distinguished? Is it possible to segment the market in a meaningful way?
How do customers feel regarding their Harleys? Are all customers motivated by the same appeal?
Are the customers loyal to Harley-Davidson? What is the extent of brand loyalty?
One of the research questions (RQs) examined and its associated hypotheses (Hs) follow:
RQ: Can motorcycle buyers be segmented based on psychographic characteristics?
H1: There are distinct segments of motorcycle buyers.
H2: Each segment is motivated to own a Harley for a different reason.
H3: Brand loyalty is high among Harley-Davidson customers in all segments.
Major Findings:
Seven customer segments were identified: adventure-loving traditionalist, sensitive pragmatist, stylish status seeker, laid-back camper, classy capitalist, cool-headed loner, and cocky misfit, supporting H1.
Despite different psychographic profiles, all customers shared a desire to own a Harley as a symbol of independence, freedom, and power, contradicting H2.
All customers exhibited high brand loyalty to Harley-Davidson, supporting H3.
Decision and Outcome:
Based on the research findings, Harley-Davidson decided to invest in increasing the number of motorcycles built in the future.
This case study illustrates how Harley-Davidson used market research to understand its customer base, leading to an informed decision to invest in expanding its motorcycle production. The findings showed that despite distinct customer segments, the appeal of Harley-Davidson as a symbol of freedom and power remained consistent across all segments. This strategic decision played a crucial role in the company's continued success.
Problem Definition in Marketing Research
Definition: Problem definition in marketing research is the process of creating a clear and specific statement of the research problem or opportunity, which is crucial for designing and conducting research effectively.
Importance of Defining the Problem:
Problem definition is the most critical step in a marketing research project.
In marketing research, problems and opportunities are used interchangeably.
Problem definition involves stating the general problem and specifying its components.
Proper problem definition is essential for designing and conducting research effectively.
Significance of Problem Definition:
In marketing research, a clear definition of the research problem is crucial for fulfilling the client's needs.
Effort, time, and resources invested in research can go to waste if the problem is poorly defined.
According to Peter Drucker, “serious mistakes are made not as a result of wrong answers but because of asking the wrong questions.”
Inadequate problem definition is a common reason for the failure of marketing research projects.
Improving communication and involvement in problem definition can enhance research usefulness.
Key Takeaways:
Problem definition is a vital step in marketing research and should not be underestimated.
Accurate problem definition helps ensure that research efforts are effective in addressing the client's needs and objectives.
The Process of Defining the Problem and Developing an Approach
Problem Definition and Approach Development Process:
It involves tasks like discussions with decision makers, interviews with industry experts, analysis of secondary data, and sometimes qualitative research.
These tasks help the researcher understand the problem's background by analyzing the environmental context.
Understanding the environmental context facilitates the identification of the management decision problem.
Importance of Discussions with Decision Makers (DM):
Decision makers need to comprehend the capabilities and limitations of research.
Research provides relevant information but not solutions, which require managerial judgment.
Researchers must understand the nature of the decision managers face and what they hope to learn from research.
Interaction with DMs is essential, although it may be complicated due to factors like access, protocols, or multiple key decision makers.
The Problem Audit:
A problem audit is a comprehensive examination of a marketing problem to understand its origin and nature.
It involves discussions with DMs on various issues.
These discussions help in identifying:
Events that led to the decision that action is needed (history of the problem).
Alternative courses of action available to the DM.
Criteria for evaluating alternative courses of action.
Potential actions based on research findings.
Information needed to answer DMs' questions.
How each piece of information will be used in decision making.
Corporate culture as it relates to decision making.
Importance of the Problem Audit:
DMs often have a vague idea of the problem, focusing on symptoms rather than causes.
Symptoms like inability to meet sales forecasts, loss of market share, and declining profits need to be addressed.
Researchers should aim to identify underlying causes to successfully tackle the problem.
Example: McDonald's Problem Audit:
McDonald's was losing market share to competitors like Burger King and Wendy's.
The problem audit included understanding the history of the problem, alternatives, criteria for evaluation, research findings, information needed, and corporate culture.
Key Takeaway:
Problem definition is a crucial step in marketing research.
It involves understanding the problem's context, interacting with decision makers, and conducting a problem audit.
Identifying the underlying causes of a problem is essential for successful resolution.
Case Study: Look Who’s Picking Levi’s Pocket
Teenage Jeans Market Shift:
Teenagers have historically favored big brand jeans (e.g., Levi’s, Lee, Wrangler) over store label jeans.
Teenagers' preference for big brand names created dominance in the $14 billion jeans industry.
Marketing Research Problem: Image Enhancement:
Store label jeans (e.g., Arizona jeans and Gap’s in-house brands) discovered their low market share was due to a poor image among teenagers.
The marketing research problem was defined as enhancing the image of store label jeans in the lucrative teenage segment.
Store Brand Image Enhancement Strategies:
Store label jeans revamped their image with "cutting-edge" advertising targeting teenagers.
Marketing campaigns featured rock bands and high-tech imagery to attract teenagers.
Promoted trendy websites to create a "cool" factor.
Gap separated its store brand jeans from the store's "uncool" image by targeting teens specifically.
Results and Market Share Shift:
Store label jeans' market share increased from 2005 to 2015, while Levi’s, the market leader, saw a drop.
These results encouraged other stores to consider introducing their own label jeans targeting the teenage market.
Problem Audit: Facilitating Problem Definition:
Problem audits involve extensive interaction between decision makers (DM) and researchers.
The interaction is fruitful when characterized by the seven Cs:
Communication: Free exchange of ideas between DM and researcher.
Cooperation: Marketing research is a collaborative team project.
Confidence: Mutual trust guides the interaction.
Candor: No hidden agendas, openness in discussions.
Closeness: Warm and close relationship between DM and researcher.
Continuity: Ongoing interaction instead of sporadic.
Creativity: Creative discussions rather than formulaic interactions.
Key Takeaways:
Store label jeans targeted image enhancement in the teenage market to compete with big brands.
Marketing campaigns included rock bands, high-tech imagery, and trendy websites.
Gap separated its store brand jeans from its "uncool" store image.
Store label jeans saw increased market share, while big brands experienced drops.
Problem audits facilitate problem definition through fruitful DM-researcher interaction.
Interviews with Industry Experts
Role of Industry Experts:
Interviews with industry experts are crucial for problem formulation in marketing research.
Experts may be individuals with extensive knowledge about the firm and the industry, both internal and external to the organization.
Expanded Definition of Experts:
Interviews with knowledgeable individuals outside the organization can be considered as an experience survey or key-informant technique.
In a technological context, the lead-user survey can be applied, involving insights from lead users of a specific technology.
Information Gathering Process:
Expert information is gathered through unstructured personal interviews, usually without a formal questionnaire.
While interviews follow a list of topics, the specific order and questions are decided during the interview to allow flexibility in capturing expert insights.
Purpose of Expert Interviews:
The primary purpose is to define the marketing research problem, not to provide definitive solutions.
Expert input is particularly valuable in industrial and technical fields, where experts are relatively easy to identify and approach.
Challenges of Expert Interviews:
Questionable Expertise: Some self-proclaimed experts may lack genuine expertise.
Expert Availability: Locating and obtaining assistance from external experts can be challenging.
Applicability of Expert Interviews:
Expert interviews are especially useful in industrial research and for technically complex products.
They are valuable when little information is available from other sources, such as with entirely new products.
The internet can be a valuable resource for finding external industry experts by searching industry websites, forums, and newsgroups.
Key Definitions
Experience Survey: An interview with people very knowledgeable about the general topic being investigated.
Key-Informant Technique: Another name for conducting an experience survey (i.e., an interview with people very knowledgeable about the general topic being investigated).
Lead-User Survey: Interview with lead users of the technology.
Secondary Data: Data collected for some purpose other than the problem at hand.
Key Takeaways:
Interviews with industry experts play a critical role in defining marketing research problems.
The definition of experts extends to knowledgeable individuals both within and outside the organization.
The lead-user survey is a variation of expert interviews focused on technology users.
The main purpose of expert interviews is to formulate research problems rather than providing solutions.
Challenges include the need to ensure the expertise of those being interviewed and the availability of external experts.
Expert interviews are particularly valuable in industrial and technical contexts and when limited information is available from other sources.
Case Study: Cherry Picking: The Repositioning of Diet Cherry Coke
Coca-Cola and Diet Cherry Coke:
As of 2018, Coca-Cola was the leading global manufacturer and distributor of nonalcoholic beverages in over 200 countries.
Diet Cherry Coke sales had been declining, with the distribution being cut back by Coke system bottlers.
The challenge was to identify the reasons for this decline and rectify the situation.
Consulting Industry Experts:
Industry experts were consulted to understand the root of the problem.
They highlighted the significance of brand image in soft drink sales.
Diet Cherry Coke was perceived as outdated and conventional, inconsistent with Cherry Coke's image.
Defining the Marketing Research Problem:
The marketing research problem was identified as assessing the image and positioning of Diet Cherry Coke.
Research Findings and Repositioning:
The research confirmed the experts' diagnosis and provided valuable insights.
Diet Cherry Coke was repositioned to align better with Cherry Coke's image, with a focus on appealing to a younger audience.
Packaging was redesigned to match Cherry Coke's branding, using bold and edgy graphics to attract a youthful demographic.
Diet Cherry Coke was associated with Cherry Coke in teen-targeted promotional giveaways.
Results and Turnaround:
Repositioning Diet Cherry Coke as a youthful soft drink and targeting teenagers led to increased sales.
Sales showed an upward trend, illustrating the effectiveness of addressing the real problem identified by industry experts.
Key Takeaways:
Coca-Cola, a global beverage leader, faced declining sales of Diet Cherry Coke.
Industry experts were consulted to diagnose the issue, highlighting the importance of brand image.
The marketing research problem was defined as assessing Diet Cherry Coke's image and positioning.
Repositioning, with a focus on youth appeal and alignment with Cherry Coke's image, led to increased sales.
The repositioning effort was effective in addressing the issue identified with the help of industry experts.
Secondary Data Analysis and Qualitative Research in Problem Definition
Introduction:
Secondary data are data collected for purposes other than the current research problem, while primary data are collected specifically for addressing the research problem.
Secondary data sources include business and government data, commercial marketing research firms, and computerized databases.
Importance of Secondary Data Analysis:
Secondary data serve as an economical and quick source of background information.
Analyzing relevant secondary data is a crucial step in problem definition, preventing the collection of primary data until secondary data have been fully examined.
Qualitative Research:
Qualitative research is often necessary when decision makers, industry experts, and secondary data alone are insufficient to define the research problem.
Qualitative research is unstructured, exploratory, based on small samples, and may involve techniques like focus groups, word association, and depth interviews.
Exploratory Research Techniques:
Pilot surveys, a type of exploratory research, are less structured than large-scale surveys and include more open-ended questions with smaller sample sizes.
Case studies, another exploratory method, involve an intensive examination of selected cases (e.g., customers, stores) to gain insights.
Role of Qualitative Research:
While informal, research at this stage can provide valuable insights into the problem.
Industry experts and focus groups helped Harley-Davidson identify brand loyalty as an essential factor in the problem definition.
Qualitative research techniques, secondary data, and expert input guided the definition of the problem: "Determining if customers would be loyal buyers of Harley-Davidson in the long term."
Conclusion:
Secondary data analysis and qualitative research are critical components of the problem definition process.
They help ensure that primary data collection is based on a thorough understanding of the research problem.
Case Study: P&G's Innovative Approach to Consumer Insights
Introduction:
P&G, a global consumer goods manufacturer, is using a unique approach to gain consumer insights.
The company sends video crews and cameras into about 80 households worldwide to capture daily routines and procedures on tape.
The aim is to obtain deeper insights into consumer behavior compared to more traditional research methods.
Challenges with Traditional Methods:
Traditional methods like focus groups, interviews, and home visits may yield biased or inaccurate information.
People tend to have selective memories and may not fully reveal their habits or behaviors to market researchers.
Video Ethnography Approach:
P&G's video ethnography approach involves sending one or two ethnographer-filmmakers to participating households.
Filming begins in the morning when the alarm clock rings and continues throughout the day for about four days.
To minimize intrusion, the camera is occasionally left in a room with the subjects, or they are allowed to film themselves.
Ground rules include informing friends about the filming, and certain private activities are excluded from recording.
Application of Insights:
P&G uses the information obtained from this research to develop innovative products that cater to market needs.
For example, insights revealed the challenges faced by working mothers during hectic mornings.
P&G identified the need for multipurpose products to simplify routines, leading to the launch of products like a CoverGirl cosmetic that combines moisturizer, foundation, and sunscreen.
Conclusion:
P&G's video ethnography approach provides a more comprehensive understanding of consumer behavior.
This innovative method helps P&G tailor its products to better meet consumer needs and preferences.
Environmental Context of the Problem
environmental context of the problem The set of factors having an impact on the definition of the marketing research problem, including past information and forecasts, resources and constraints of the firm, objectives of the decision maker, buyer behavior, legal environment, economic environment, and marketing and technological skills of the firm.
To define a marketing research problem effectively, one must consider the environmental context surrounding it.
The environmental context includes various factors that influence the problem definition process.
Factors in the Environmental Context:
Past Information and Forecasts:
Analyzing historical data and forecasts is crucial to understanding the problem.
Information about sales, market share, profitability, demographics, and technological trends is relevant.
This analysis should be conducted at both industry and firm levels.
Resources and Constraints of the Firm:
The firm's available resources and constraints, such as budget limitations, personnel, and technology, can impact the research problem.
Objectives of the Decision Maker:
Understanding the goals and objectives of the decision maker is essential.
The research problem should align with the decision maker's aims.
Buyer Behavior:
Understanding how consumers behave, including their preferences and buying habits, is crucial.
This knowledge informs the research problem, especially in terms of consumer needs and wants.
Legal Environment:
Legal factors such as regulations and compliance requirements can influence the marketing research problem.
Researchers must consider the legal framework within which the firm operates.
Economic Environment:
Economic conditions, such as inflation, recession, or economic growth, can impact the problem's definition.
Economic factors may influence consumer behavior and market dynamics.
Marketing and Technological Skills of the Firm:
The capabilities and skills of the firm in marketing and technology play a significant role.
These skills affect the firm's ability to address the research problem effectively.
Importance of Environmental Context:
Analyzing these factors helps ensure that the marketing research problem is well-defined and considers the wider context.
A comprehensive understanding of the environment enables researchers to tailor research projects to the specific needs and constraints of the firm.
Case Study: Smarte Carte's Becomes Smart with Marketing Research
Smarte Carte, Inc., a global leader in baggage carts, lockers, and stroller services, sought to expand into new markets with a new "smart" locker technology.
They partnered with Emerge Marketing to identify ideal markets for their product.
Market Expansion Objectives:
Smarte Carte aimed to find markets with growth potential, low entry barriers, and favorable competitive landscapes for their new locker technology.
Research Approach:
Emerge Marketing utilized both qualitative and secondary data research methods.
Qualitative research included focus groups and depth interviews to gather insights.
Secondary data sources like Census Bureau information and Nielsen ratings provided additional data.
Identification of Ideal Markets:
The research narrowed down potential market segments based on key requirements.
Amusement parks, ski areas, and water parks emerged as suitable markets for the new locker technology.
These markets had specific needs that aligned with the product's features.
Problem Definition:
The research problem evolved into assessing the demand potential for the new technology in the selected segments.
Smarte Carte needed to quantify the market and plan for product development, manufacturing, and budgets accordingly.
Tailoring Products for Markets:
Smarte Carte made product adjustments based on market-specific requirements.
For water parks, keyless electronic storage lockers were developed to enhance visitor convenience and security.
Conclusion:
Through comprehensive marketing research, Smarte Carte identified and tailored their new locker technology to amusement parks, ski areas, and water parks.
This research-driven strategy allowed them to expand into markets with strong growth potential and a competitive advantage.
