Principles of Marketing

(C. Jardin) #1

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Step 1: Define the Problem (or Opportunity)

There’s a saying in marketing research that a problem half defined is a problem half solved. Defining the
“problem” of the research sounds simple, doesn’t it? Suppose your product is tutoring other students in a
subject you’re a whiz at. You have been tutoring for a while, and people have begun to realize you’re
darned good at it. Then, suddenly, your business drops off. Or it explodes, and you can’t cope with the
number of students you’re being asked help. If the business has exploded, should you try to expand your
services? Perhaps you should subcontract with some other “whiz” students. You would send them
students to be tutored, and they would give you a cut of their pay for each student you referred to them.


Both of these scenarios would be a problem for you, wouldn’t they? They are problems insofar as they
cause you headaches. But are they really the problem? Or are they the symptoms of something bigger? For
example, maybe your business has dropped off because your school is experiencing financial trouble and
has lowered the number of scholarships given to incoming freshmen. Consequently, there are fewer total
students on campus who need your services. Conversely, if you’re swamped with people who want you to
tutor them, perhaps your school awarded more scholarships than usual, so there are a greater number of

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