Management Decision Problem & Marketing Research Problem

Defining the problem is the most important step, because only when a problem has been clearly and accurately identified can a research project be conducted properly.

• Defining the marketing research problem sets the course of the entire project

Problem definition involves stating the general marketing research problem and identifying its specific components.

• Only when marketing research problem has been clearly defined can research be designed and conducted properly.

• Inadequate problem definition is a leading cause of failure of marketing research project.

• Better communication and more involvement in problem definition are the most frequently mentioned ways of improving the usefulness of research.

Management Decision Problem

The management decision problem asks what the DM needs to do, whereas the marketing research problem ask what information is needed and how it can best be obtained.

• Research can provide the necessary information to make a sound decision.

• The management decision problem is action oriented.

It is concerned with the possible actions the DM could take.

• How should the loss of market share be arrested?

• Should the market be segmented differently?

Marketing Research Problem

The marketing research problem is information oriented. It wants to determine what information is needed to make the best decision.

• It involves determining what information is needed and how that information can be obtained effectively and efficiently.

• Whereas the management decision problem focuses on symptoms, the marketing research problem focuses on underlying causes.

Management decision problem	Marketing research problem
• Asks what the decision maker needs to do • Action oriented • Focuses on symptoms	• Asks what information is needed and how it should be obtained • Information oriented • Focuses on the underlying causes