Thinking carefully about your goals will help you design a research project that gets the accurate,
useful results you need. You need to be clear about your research objectives and how these will
influence the methods you use. It’s also important to identify issues such as the time frame and
budget for your project8.
When conducting research, be careful not to let your opinions and preferences, or those of your
team, affect surveys or the results. Never decide the conclusion in advance. Be prepared to find
market information that is unanticipated, as this builds a more accurate picture of your target
market and will be more useful to your business.
Establishing market research objectives
Clearly define your objectives and the outcomes you expect from your market research, as unclear
objectives lead to conflicting expectations and irrelevant data. Carefully consider and list your
objectives and keep referring back to them during your research.
Determining key objectives
List the key information you want your research to uncover. For example, you may have questions
about:
your product’s performance or reputation in the market
new markets for your business
customer reactions to price increases or product changes.
Developing a list of questions
From your set of key objectives, you can develop a list of research questions such as:
Is there a demand for my product or service?
What sales can I expect?
Who buys my products (e.g. age, gender, income, occupation, lifestyle)?
What is the best price for my products or services?
How should my products look, feel, taste, etc.?
What is the best location for my business?
Are other businesses offering similar products or services?
Is there sufficient demand for my product to make the business viable?
Identifying potential research issues
Identify the issues involved in your market research. For example:
when you need the information by – allowing your research deadlines to slip may mean your results occur too
late to effectively implement certain decisions
what your research budget is
how you want to use the information
particular problems or sensitivities you need to manage
the amount of time you can afford to invest
the size of the research project – those that become too large and time-consuming may fail to give you the
results you need in the time you need them.
8 Source: Queensland Government, Business, as at https://www.business.qld.gov.au/startingbusiness/
planning/market-customer-research/basics/goals, as on 4th September, 2017.
Understanding issues that could impact on your market research will help you set goals that are
realistic and achievable. It will help you design a market research process that suits your needs and
capacity. Considering these issues before you carry out your market research will help ensure you
get the information you need, when you need it, without stretching your budget or wasting your
time.
The more widely you consult, the more specific the answers to the questions will be and the result will be effective
research that contributes to the development of the business.
Activity 3
Think about a small business that is planning to undertake some market research. In general, who would you consult
with in the business to establish the market research needs?
Activity 3
Activity 3
Develop statement of market research needs
What is market research?
Market research involves finding out about things you need to know such as import duties, regulations, distribution
channels, market size and growth, competition, demographics and local production – so you can assess market
opportunities and the costs of capturing them. Gathering this information is usually straightforward and helps you
understand how a market operates. The most valuable element of market research is information about ‘market feel’.
How will your product or service compete in the environment where you will be doing business?
Market research involves the systematic design, collection, analysis and reporting of data relevant to a specific marketing
situation facing an organisation. It is used to:
Identify and define marketing opportunities and problems
Generate, refine and evaluate marketing actions
Monitor marketing performance
Improve understanding of the marketing process
Your statement of research needs involves a few important steps.
Preparing a perfect marketing research report depends on the research problem statement.
The more clear and comprehensible your problem statement is, the more focused and directed
your study will be. So how can you write the perfect marketing study statement of problem?9
Before telling you that, let’s see what is a marketing research problem is?
In simple words, it is to determine the preferences and buying behavior of the customers and to
study whether a particular product or service will be profitably sold or not. The problem
statement defines specific and distinct objectives behind conducting the study. Your research
hypothesis, methodology, conclusion and recommendations all depends on the problem
statement.
There are three main components to a good research problem in marketing.
1.- Background of the problem
It is important to give a little background of the problem in the problem statement to make the
reader aware of the depth and history of the issue. This will provide a basis for clear and better
understanding of the issue.
2.- The Specific Problem
9 Source: Business Insights Review, as at https://martinmeisterg.wordpress.com/2012/07/11/howto-
define-a-marketing-research-problem/, as on 4th September, 2017.
This is the main part of your problem statement. This is where you introduce your issue to the
viewers.
a.- Problem definition
In this part, you give a brief and concise overview of the problem and define specifically what
the problem is and why and when is it occurring?
Tips
If you are having trouble writing this part of the problem statement, simply go about answering
these following questions in the below mentioned sequence in one sentence answers.
What is the exact problem that needs to be solved?
Where does the problem occur?
When does the problem occur or what factors contribute to the occurrence of the
problem?
b.- Justification for the study
This is the most important part after the problem definition. This is where you will be informing
your readers why you have chosen this topic for research and present valid rationalizations for
it.
Tips
To formulate good justifications, just answer the following questions:
Why is this study necessary?
What will happen if this study is ignored?
c.- Specific methodology that will be used for the study
Here, you can define specifically the method you will be using to solve the problem.
There are basically two types of data that is used for research, primary and secondary data.
Which type of data will you be using?
Primary data is obtained by first hand observations or communication. It usually
involves questionnaires filed by the target audience, personal interviews or focus groups
arranged for a specific purpose.
Secondary data involves summary of already existing data which includes newspapers,
company journals and government statistics.
Tips
Based on the explanation above, try to understand which type of data will you need for your
marketing study? This usually depends on the kinds of variables involved in your study. If your
variable involves study of customers’ perceptions and views, then you will be conducting
primary research whereas if it involves a study of governmental or company policies, then you
will be conducting secondary research.
3.- Scope of the problem
This includes the desired outcome that you wish to see through your study.
Tips
For writing this part of your problem statement, answer the following question:
What changes would you like to see through your research?
So by clearly understanding and following the above mentioned components and tips,
formulating market research problem statements for your thesis or dissertation can be done in
no time.
Activity 4
Provide an example of a statement of market research needs.
Activity 4
Activity 4
A variety of problems can arise if research objectives are not clearly defined at the beginning
stages of the survey research project. The very first thing the researcher should do is work with the
research team or clients to clearly identify each research objective10.
Research objectives consist of general descriptions describing the types and categories of
information the researcher wants to obtain from the survey; from what target population; and an
explanation of possible comparisons. Throughout the survey project plan, the main objectives
inform and steer the research team in the right direction.
Measure: Research objectives should contain a measurement objective, specifying what your
research team is trying to measure. If your company is planning to make a large, expensive, or
risky business decision, it is quite important to quantify market data in order to minimize risk.
Categorize: Research objectives are essentially summary statements detailing the categories of
data you want to acquire. Some examples of objectives for market research purposes could
include: brand awareness, brand image, consumer perception, consumer attitudes, buyer
behaviour, product satisfaction, consumer experience (good and bad), and intent to purchase
behaviour. Objectives should be tailored to each specific project.
10 Source: Snap Surveys, as at https://www.snapsurveys.com/blog/develop-clear-researchobjectives-
for-your-survey-research-project/, as on 4th September, 2017.
Target: It is evident that you need to choose a target population that will provide the data you
need. It is possible for a survey research project to target multiple target populations in order to
acquire the necessary data for a successful project. If you are targeting multiple populations,
ensure that the survey questions are tailored to those groups. For example, if you are
administering a technology study, you don’t want to ask technical questions to a non-technical
population.
Compare: In many cases, you will want to compare data from previous years, compare certain
segments of a population to each other, or benchmark data against existing market data.
You should have a clear idea in mind of how the survey data will be used. Important business
decisions are based on the findings of the research. Defining survey research objectives at the
start of your survey project plan can serve as a guide throughout the entire research process,
making certain that the right questions are asked to the right target audience, and making certain
that your clients and stakeholders are satisfied with the overall outcomes of the survey, and more
importantly, the accuracy and validity of the data you provide.
Draft research objectives
Often the hardest, most important step in the process involves the marketing manager and research team working
together. Careful problem definition and identifying the issues at hand is essential for ensuring the right research is
carried out. Once these issues have been identified, research objectives can be set.
You must clearly understand the purpose of the research before you can start: What are you trying to achieve?
What type of research should you conduct?
What are the ‘terms of reference’ for your research?
The ‘terms of reference’ define the scope and purpose of the research, what will be included and excluded from the
research, considerations and organisational requirements of the project or process.
There are three types of research typically used in a business environment:
Descriptive research
Seeks to describe the current situation
Is often called a situation or environmental appraisal
Is usually conducted in conjunction with other research
Census research is descriptive research
Explanatory research
Seeks to explain patterns, relationships and trends that have been observed
An aim of explanatory research is often to identify the cause of actions, which is difficult to
do. Causality is difficult to establish. Just because A increases at the same time as B
decreases, does not prove a relationship between the two.
The purpose of establishing causality is to predict actions or behaviours. Evaluative
research
Seeks to determine the success or effectiveness of policies, practices, strategies, products
This will often include exploratory research
Examples include surveys, interviews, focus groups and process mapping
Research areas of interest to business include:
Clients and potential clients
Staffing and performance
Competitors and pricing strategies
Products and sales performance
Trends in business affecting strategy
Information technology
Researchers need a clear idea of what the objective is. Is it to solve a problem, or even to determine if there is, or has
been a problem?
Defining market research problems11
Every research project should have a defined and explicit objective which clearly states why the
research is being carried out. All other aspects of planning and carrying out the research flow
from this objective; in other words, if they do not contribute towards achieving this objective
they almost certainly should not be undertaken. The objective should relate to the marketing
decision which will have to be made or the problem that needs a solution (and decision).
Key point
Most research projects that go wrong do so because the fundamental problem that has lead to
the research has not been fully understood or defined.
Getting the client to spell out what their issue and identify the heart of the problem, is half the
battle when running a research project.
A problem defined is a problem half solved! Three questions that determine if the research
needs to take place:
• What research exists already
• What research is needed?
• Can the research readily be undertaken?
The objectives of research can range from helping a company improve its satisfaction rating
amongst customers, to finding new markets for its products through to helping with the launch
of new products. Let’s take an example of a company that is suffering with stagnant sales. The
objective of the research is to find out the cause of the stagnant sales and how to get them
moving upwards.
Where the starting point for the research is a problem (or potential problem/opportunity)
rather than a clear-cut decision to be made, an effective approach is to think of and list as
many objectives as possible for the research. In other words develop alternate hypotheses. This
may be done by the researcher but better still at a “brainstorming” of all the key staff involved.
The researcher may make a specific contribution to this process based on the results of
previous research in related areas. He or she may also usefully act as a facilitator at that
meeting.
Possible reasons for the company’s stagnant sales could be:
- The market is declining.
- The prices of the company’s products are too high relative to the competition.
- The benefits that the company is offering in terms of its products and services relative to the
competition are too low.
11 Source: B2B International, as at https://www.b2binternational.com/files/market-researchchap02.
pdf, as on 4th September, 2017. - The company is losing customers because of a failure in its products or services.
- The people who are buying the company’s products are old and retiring. New buyers do not
know of the company. - The company’s image is tired and old fashioned.
- The company’s sales force is not active.
With only a little effort, the list of hypotheses generated is likely to be quite extensive and
probably more than can be sensibly covered in any one research project. This would mean that
some selection will have to be made of the hypotheses which are to be covered in the research
project. This is likely to be based on a judgement of which is the more likely explanation of the
problem; evidence that is already available – including from previous research as well as from
more informal sources – may enable some hypotheses to be confidently discounted. For
example, in the above listing, if there haven’t been any complaints, it could reasonably be
assumed that hypothesis number 4 is not valid. However, the sales force could be constantly
reporting that the prices are too high against the benefits that are being offered. This could
point to the hypotheses which do seem worth researching and will be the basis of a valid
research objective.
To write out clear objectives you need information about the background of a problem. You
might find this in internal records like sales reports, complaint statistics and customer service
feedback forms. Usually though, you must get this by talking to the client and asking lots of
questions. What really lies at the root of the problem which the client is describing? In many
cases, the client may not have identified the root of the problem correctly. The researcher
therefore needs to get as much background information as possible about the client’s
organisation and their market. What is the background to the market, or to the issue? and What
factors led to the current problem?
A useful framework for identifying the links between a problem and a research objective is
shown in Figure 2.2. Write down a high level question that you think your company or
organisation would like to answer. Then think through all the factors that could be causing this
question to arise for your company or organisation. Finally, think through all the information
that you need to fully understand the problem and the level of knowledge that your company
holds on the subject.
Worksheet for identifying links between a problem and research objective
Think about
In your market, what do you think drives people to use your company/organisation? Is it the
quality of your products or services, your prices, the ease with which you do business with them,
your delivery etc? Make a list of all the possible factors. Now assign a weight to these factors to
indicate how important they are to the customer. Do so by spending points out of 100 across
the different factors – you can spend the points how you like but you must spend all 100. What
would be the implications to your company if you are wrong in this assessment? How easy or
difficult would it be to ask customers why they choose (or don’t choose) your company and to
get an honest and useful answer?
Objectives of the research process may include:
Situational analysis
Comparative analysis
Hypothesis testing
Identification of trends
Process mapping
Situational analysis – involves obtaining information about the organisation and its business environment. It allows you to
study an event or situation in detail to place it in its wider context and determine how to change or improve it. This kind
of information can be gained by:
Interviewing internal staff
Analysing the company, its market, its competition and the industry in general
Situation analyses or diagnoses can be represented in a number of ways.
A matrix form
Overlapping circle chart (Venn Diagram)
Relational mind map
Matrix
Venn diagram – Shows the relationship between the various elements represented. Qualitative methods of presenting
and analysing information.
Mind maps were popularised by author and consultant, Tony Buzan. They use a two-dimensional structure, instead of a
list format conventionally used to take notes. Mind maps are more compact than conventional notes. They help you
make associations easily, and generate new ideas. If you find out more information after drawing a mind map you can
easily integrate it with little disruption. More than this, mind mapping helps you break large projects or topics down into
manageable chunks, so you can plan effectively without becoming overwhelmed or forgetting something important. A
good mind map shows the ‘shape’ of the subject, the relative importance of individual points, and the way in which facts
relate to one another. This means that they’re very quick to review, as you can often refresh information in your mind
just by glancing at one. In this way, they can be effective mnemonics – remembering the shape and structure of a mind
map can give you the cues you need to remember the information within it.
Comparative analysis – The process of analysing separate items, situations or events and then comparing them with each
other.
People do this all the time when they shop, for example, for food or clothes. They look at two bottles of fruit juice and
compare them before making a decision about which one to buy. For instance, are they the same size; is one sugar-free;
what price are they?
Hypothesis testing
A hypothesis can be defined as an assumption or proposition that a researcher makes about some characteristic of the
population being investigated. The researcher needs to determine whether research results are significant enough to
conclude something about the population under investigation.
Marketing hypothesis testing process
A hypothesis is a statement, belief or assumption. It may or may not be true. For example if your business want to begin
to import women’s shoes for work. You may decide that your research hypothesis is:
‘Women don’t want to wear imported shoes to work because they are not readily available.’
Through your research you may decide that the research problem (or question to be answered) is: Why don’t shoes
businesses stock imported shoes for work.
There are several stages for testing a hypothesis. Very simply they revolve around:
When considering the example above our research objectives could include:
What women will make up our target market for work shoes
What advertising will reach them, why are the competition failing?
What message will appeal to our audience and compel them to act?
Do the existing shoes have problems for Australian women?
Has there been a change in overall shoe buying habits?
How does price affect our customers?
Are the products available in the wrong place?
Identification of trends
Trends can be defined as patterns or general directions, courses or tendencies. For example:
The population of koalas in a newly established National Park has been monitored and found to be steadily increasing
since the Park’s creation.
Sometimes, based on past trends, it may be possible to attempt to predict (forecast) future trends. Redirecting or
forecasting trends in the marketplace requires the collection of solid research data.
We could take our example of the women’s shoes and track the trends in women’s shoe sales over the past five years we
may notice a change in buying patterns.
Identification of trends example
Process mapping
To map a process you need to identify and record all the separate parts of the particular process, creating a map (or
outline) that shows you how the process happens. Process mapping is useful when you need to understand how or why
something happens so that you can change or improve the process. An example of a process map could be this one for
developing a new product:
When you define your research objectives, make sure that:
You clearly understand what you are trying to achieve
They are realistic and achievable
You have discussed them with your manager or other colleagues, if required
Your manager or other colleagues agrees with them
They are consistent with organisational requirements for conducting research
They are linked to expected improvements to the business
In terms of project management it is important to manage the research of our market (and the questions we need
answered) in a systematic way. In the appendix we have a Project Plan template that may help you with your planning.
We now need to have our market research questions answered in a way that helps us. The research objectives need to
be stated very clearly. We will have done this in previous steps. Now, continue to plan your research. Different marketing
problems (questions to be answered) need different information and research outcomes to answer the questions. It is
not a one size fits all approach.
This process involves identifying possible sources of information, methods of collecting the information and considering
legal and ethical issues. Assess the scope of the work involved when the research request is received. Consider various
factors including whether the request is part of your normal workload, or a new initiative. If you are unfamiliar with the
subject matter, you may need extra time and this must be factored into the timeline. ‘Terms of reference’ – always plan
your research within the boundaries of your organisational requirements.
These may include:
Quality assurance and/or procedure manuals
Security and confidentiality requirements
Legal and organisational policy, guidelines and requirements
Codes of conduct and ethics
WHS procedures
Business and performance plans
When we refer to ‘scope’ we refer to the extent or range of view, application, or operation. The scope for the market
research project refers to the operation of our organisation and the context of our research objectives.
Now we need to define the terms of reference or the scope of the project. Before we can do this we need to
understand:
What resources are required?
External market research required if any?
Possible research locations or methodologies?
Sample sizes and nature of samples?
Time constraints and availability for research?
Resources refer to the human, physical and financial resources. How many hours need to be dedicated to the process? Is
the benefit worth the investment? What financial cost will be attached to the process? At this stage the cost benefit
analysis comes into its own.
When you define your research objectives, make sure that:
You clearly understand what you are trying to achieve
They are realistic and achievable
You have discussed them with your manager or other colleagues, if required
Your manager or other colleagues agrees with them
They are consistent with your organisation’s requirements for conducting research
They are linked to expected improvements to the business
There are software applications which help management with these processes; the need for this depends on the size of
the organisation and the specific requirements for the research. Smaller organisations may choose to employ or
outsource this research from a time point of view. They may not have time or expertise to complete the research within
their own organisation.
How to conduct research? The process for conducting research is:
Where will I find the information?
How will I access it?
What technology will I need to use?
How much and what sort of information do I need?
Additional questions you could consider to help to structure your research could be:
Do I need to establish the facts and or include background information?
Do I need specialist information such as statistical or scientific data?
Do I need to provide expert opinion?
Do I need to explain an issue or area, such as a legal requirement?
Now determine your research strategy. What sources of information you should choose and how you should conduct
your research? Consider:
The time you have available
The type of data required
The expectations of interested parties
The resources you have available
The overall research objectives
Defining a research objective
To meet the defined objective, a range of information will be required and will in turn be an input into the decisions
which will be eventually made. For a given objective the information list, with only a little thought, will soon be quite long;
possibly too long. For example, in the case of the company with the stagnant sales, the information objectives could be
as follows: Establish the reasons for stagnant sales and suggest means by which sales can be increased. • The
demographics of who is buying the product at the present compared to the demographics of people buying
competitors’ products
• Satisfaction of customers and potential customers with the products they are buying
•Attitudes of customers and potential customers towards the value for money of the products from different suppliers
• Features about the product that customers would like to see improved
• The awareness amongst potential customers of product
• Factors that would prompt potential customers to buy from the company.
This list is by no means exhaustive and other information headings may also be considered important. There is no such
thing as an absolutely right or wrong coverage although the effectiveness of the research will be shaped by what is
included or left out. Often the problem is not so much that headings are left out but that the coverage is too broad in
relation to the research resources that are available (in particular the budget and the timetable). The initial “wish list” of
headings may, therefore, need pruning or separating into what is absolutely vital to know and what is of lesser
importance. Taking time and effort in defining the coverage of the research is essential if the results are to truly assist the
decision making process. In addition, however, a well defined research coverage is of practical value in latter stages of
the project and particularly at the questionnaire design stage. With the coverage defined and listed much of the work
involved in developing a questionnaire is already done.
Undertake preliminary project scoping
How do you determine what you will include with this market research? In the same way as you manage any other
project, it is important to determine what you will and will not include in the scope of this specific market research
process. To effectively deliver the outcomes of the research on time and to budget, it’s possible to treat market research
as a project. Key project management principles to be included in market research planning are:
Consultation and stakeholder involvement – important at every stage of your research
project, plan your consultation and engagement strategy early, stakeholders can make
significant contributions when formulating research objectives, project scope and
identifying good sources of valid and reliable data relevant to your project
Resources and development of time lines, budgets and other implementation plans
Gaining of approvals
Needs analyses
Scoping practices
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