State the marketing research problems for each of the following management-decision problems

State the marketing research problems for each of the following management-decision problems.

a. Should a new product be introduced?

b. Should an advertising campaign, which has run for 3 years, be changed?

c. Should the in-store promotion for an existing product line be increased?

d. What pricing strategy should be adopted for a new product?

e. Should the compensation package be changed to motivate the sales force better?

The Correct Answer and Explanation is :

Marketing Research Problems and Explanation:

a. Should a new product be introduced?
Marketing Research Problem:

  • Identify potential customer demand for the new product.
  • Assess competitive market conditions and gaps.
  • Understand consumer preferences, pricing expectations, and potential adoption barriers.

b. Should an advertising campaign, which has run for 3 years, be changed?
Marketing Research Problem:

  • Evaluate the effectiveness of the current campaign in achieving brand awareness, sales, and engagement goals.
  • Explore consumer perception and attitudes toward the campaign.
  • Identify alternative messaging or platforms that may improve results.

c. Should the in-store promotion for an existing product line be increased?
Marketing Research Problem:

  • Assess the impact of current in-store promotions on sales and foot traffic.
  • Understand customer responsiveness to promotions in this product category.
  • Evaluate potential ROI of increasing promotion levels.

d. What pricing strategy should be adopted for a new product?
Marketing Research Problem:

  • Determine the price sensitivity of the target market.
  • Analyze competitors’ pricing strategies and market positioning.
  • Assess perceived value and willingness to pay for the product features.

e. Should the compensation package be changed to motivate the sales force better?
Marketing Research Problem:

  • Understand the sales force’s satisfaction with the current compensation structure.
  • Identify motivational factors that drive better performance.
  • Analyze the relationship between compensation changes and sales outcomes in similar settings.

Explanation:

Marketing research problems focus on understanding the specific informational gaps that must be addressed to make informed management decisions. While management-decision problems address what should be done (e.g., introduce a product, change compensation), marketing research problems clarify how to gather the necessary data and insights to support these decisions.

For example, if a new product launch is being considered, the research problem is to gauge market readiness and demand to minimize risks. Similarly, changing an advertising campaign requires understanding if its current effectiveness has diminished or if emerging media platforms offer better engagement opportunities. For pricing strategies, understanding price elasticity and competitor benchmarks ensures optimal positioning in the market. By identifying these precise research problems, businesses can focus their efforts on acquiring actionable insights, reducing uncertainty, and increasing the likelihood of successful outcomes.

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