Prakash SharmaAsst. Business Development OfficerIndiaReportMetrix Web Services (P) Ltd.

In 2005, Harley had about 50% market share in the heavyweight category

Wondering whether to invest in new production facilities and become the unquestioned market leader

Element of high risk

Spoke to industry experts Analyzed secondary data Conducted focus groups Studied forecasts Analyzed its resources and

technological and marketing skills to achieve its objective of being the dominant motorcycle brand

Experts: Brand loyalty, an important factor influencing sales and repeat sales

Secondary data: Vast majority of motorcycle owners also owned automobiles

Focus groups showed motorcycles are used for recreation and brand loyalty is important

Forecasts called for an increase in consumer spending on recreation and entertainment

Should Harley Davidson invest to produce more motorcycles?

Would customers be loyal in the long run? (Broad statement)

Specific components: Who are the customers? Demographics

and psychographics Can different types of customers be

distinguished? Is it possible to segment the market in a meaningful way?

How do customers feel regarding their Harley? Are all customers motivated by the same appeal?

Are the customers loyal to Harley? What is the extent of brand loyalty?

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

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

Tasks involved:

Discussions with DM Interviews with Experts Secondary Data Analysis Qualitative Research

Environmental context of the Problem

Step 1: Problem definitionManagement decision problemMarketing Research Problem

Step 2: Approach to the Problem

Theoretical Foundation Analytical Model Research Questions Hypotheses Specifications of Information

Step 3: Research Design

Problem audit is a comprehensive examination of a marketing problem with the purpose of understanding its origin and nature

History of the problem; alternative courses of action available; information needed to answer the DM’s questions, etc.

Required 7Cs: - Communication- Cooperation- Confidence- Candor- Closeness- Continuity- Creativity

Inside and outside the firm Unstructured personal interviews Without formal questionnaire List of topics as a discussion guide The purpose is to define the marketing

research problem rather than to develop a conclusive solution

Secondary data Primary data Primary data should not be collected

until the secondary data have been fully analyzed

Qualitative: Unstructured, exploratory, based on small samples, focus groups, word association, in-depth interviews

Pilot surveys: Exploratory research technique; less structured; more open-ended questions and the sample size is much smaller

Case studies

Wrt: sales, market share, profitability, technology, population, demographics and lifestyle

Money and research skills Cost and time Find ways to reduce scope e.g.

research key markets instead of a national basis

Goals of the organization and of the decision maker must be considered

Number and geographical location Demographic and psychological

characteristics Product consumption habits Media consumption and response to

promotions Price sensitivityCDM (Cricket & Meetha) is a good example

Legal environment can have a bearing on the marketing research problem

Restrictions on sale of cigarettes and alcohol to underage customers

Government not allowing entry of MNCs in Retail (multiple brands)

Comprises purchasing power, disposable income, general economic conditions, etc.

Due to inflation in India people are flying less/eating out less

Affect the nature and scope of the marketing research project

Microsoft

MDP Asks what the decision

maker needs to do

Action-oriented Focuses on symptoms

e.g. Should a new product be introduced?

e.g. Should the ad campaign be changed?

MRP Asks what information is

needed and how it should be obtained

Information-oriented Focuses on the underlying

causes Determine consumer

preference and purchase intention

Determine effectiveness of current campaign

Marketing Research Problem

Broad statement

Specific components

Component 2Component 1 Component 3

Objective/Theoretical framework: In general, research should be based on objective evidence and supported by theory

Harley Davidson example, the underlying theory was that brand loyalty is the result of positive beliefs, attitude, affect, and experience with the brand

Analytical model: A set of variables and their interrelationships designed to represent, in whole or in part, some real system or process

Forms: Verbal, Graphical, Mathematical - e.g. Harley

Beliefs Attitudes Purchase Experience Repeat Purchase Loyalty

Affect

Research Questions: Refined statements of the specific components of the problem

RQ: Can the motorcycle buyers be segmented based on psychographic characteristics?

Hypotheses: Unproved statement or proposition about a factor or phenomenon that is of interest to the researcher. Often a hypothesis is a possible answer to the research question

H1: There are distinct segments of motorcycle buyers

H2: Each segment is motivated to own a Harley for a different reason

Specification of information needed

Thanx