Defining the Problem and Research Objectives

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Defining the Problem and Research Objectives
Marketing managers and researchers must work closely together to define the problem and agree on research objectives. The manager best understands the decision for which information is needed; the researcher best understands marketing research and how to obtain the information. Defining the problem and research objectives is often the hardest step in the research process. The manager may know that something is wrong, without knowing the specific causes.
 

After the problem has been defined carefully, the manager and the researcher must set the research objectives. Amarketing research project might have one of three types of objectives. The objective of exploratory research is to gather preliminary information that will help define the problem and suggest hypotheses. The objective of descriptive research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. The objective of causal research is to test hypotheses about cause-and-effect relationships. For example, would a 10 percent decrease in tuition at a private college result in an enrollment increase sufficient to offset the reduced tuition? Managers often start with exploratory research and later follow with descriptive or causal research.

The statement of the problem and research objectives guides the entire research process. The manager and the researcher should put the statement in writing to be certain that they agree on the purpose and expected results of the research

Developing the Research Plan
Once the research problem and objectives have been defined, researchers must determine the exact information needed, develop a plan for gathering it efficiently, and present the plan to management. The research plan outlines sources of existing data and spells out the specific research approaches, contact methods, sampling plans, and instruments that researchers will use to gather new data

Research objectives must be translated into specific information needs. For example, suppose that Red Bull wants to conduct research on how consumers would react to a proposed new vitamin-enhanced water drink in several flavors sold under the Red Bull name. Red Bull currently dominates the worldwide energy drink market. However, in an effort to expand beyond its energy drink niche, the company recently introduced Red Bull Cola (“Why not?” asks the company; it’s strong and natural, just like the original Red Bull energy drink). A new line of enhanced waters akin to Glacéau’s VitaminWater might help Red Bull leverage its strong brand position even further. The proposed research might call for the following specific information:
 

• The demographic, economic, and lifestyle characteristics of current Red Bull customers. (Do current customers also consume enhanced-water products? Are such products consistent with their lifestyles? Or would Red Bull need to target a new segment of consumers?
•  The characteristics and usage patterns of the broader population of enhanced-water users: What do they need and expect from such products, where do they buy them, when and how do they use them, and what existing brands and price points are most popular? (The new Red Bull product would need strong, relevant positioning in the crowded enhanced-water marke
•  Retailer reactions to the proposed new product line: Would they stock and support it? Where would they display it? (Failure to get retailer support would hurt sales of the new drink.)
• Forecasts of sales of both the new and current Red Bull products. (Will the new enhanced waters create new sales or simply take sales away from current Red Bull products? Will the new product increase Red Bull’s overall profits?) Red Bull’s marketers will need these and many other types of information to decide whether and how to introduce the new product. The research plan should be presented in a written proposal. Awritten proposal is especially important when the research project is large and complex or when an outside firm carries it out. The proposal should cover the management problems addressed, the research objectives, the information to be obtained, and how the results will help management decision making. The proposal also should include estimated research costs. To meet the manager’s information needs, the research plan can call for gathering secondary data, primary data, or both. Secondary data consist of information that already exists somewhere, having been collected for another purpose. Primary data consist of information collected for the specific purpose at hand

Gathering Secondary Data
Researchers usually start by gathering secondary data. The company’s internal database provides a good starting point. However, the company can also tap into a wide assortment of external information sources, including commercial data services and government sources

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