Defining the problem and setting clear objectives is the cornerstone of any successful market research project. This step ensures that the research is focused, relevant, and actionable. In this section, we will cover the following:

1. Understanding the Problem Statement
2. Setting Research Objectives
3. Aligning Objectives with Business Goals

• Problem Statement: A clear, concise description of the issue that needs to be addressed.
• Scope: The boundaries of the problem, including what is and isn't included.
• Relevance: Ensuring the problem is significant and worth investigating.

1. Identify the Issue: Determine what needs to be solved or understood.
2. Gather Background Information: Collect preliminary data to understand the context.
3. Consult Stakeholders: Engage with those who have a vested interest in the research.
4. Draft the Problem Statement: Write a clear and concise statement that outlines the issue.

Problem Statement: "The company has experienced a 20% decline in sales over the past six months. We need to understand the reasons behind this decline and identify potential strategies to reverse the trend."

• Research Objectives: Specific goals that the research aims to achieve.
• SMART Criteria: Objectives should be Specific, Measurable, Achievable, Relevant, and Time-bound.

1. Break Down the Problem: Identify specific aspects of the problem that need to be investigated.
2. Formulate Objectives: Write clear and concise objectives that address these aspects.
3. Ensure Alignment: Make sure the objectives align with the overall business goals.

Based on the problem statement above, the research objectives could be:

1. Objective 1: Identify the key factors contributing to the decline in sales.
2. Objective 2: Analyze customer feedback to understand their changing preferences.
3. Objective 3: Evaluate the effectiveness of current marketing strategies.
4. Objective 4: Recommend actionable strategies to increase sales by 10% over the next quarter.

• Business Goals: Long-term aims that the company wants to achieve.
• Alignment: Ensuring that research objectives support these broader goals.

1. Review Business Goals: Understand the company's strategic priorities.
2. Map Objectives to Goals: Ensure each research objective contributes to achieving these goals.
3. Adjust as Necessary: Refine objectives to better align with business goals.

If the company's business goal is to become the market leader in customer satisfaction, the research objectives should focus on understanding and improving customer experiences.

Scenario: A retail company has noticed a significant drop in foot traffic to its stores over the past year.

1. Identify the issue.
2. Gather background information.
3. Consult stakeholders.
4. Draft a problem statement.

Solution:

1. Issue: Decline in foot traffic.
2. Background Information: Sales data, customer feedback, market trends.
3. Stakeholders: Store managers, marketing team, customers.
4. Problem Statement: "The retail company has experienced a 30% decline in foot traffic over the past year. We need to understand the reasons behind this decline and identify strategies to attract more customers to our stores."

Scenario: Based on the problem statement above, set three research objectives.

Solution:

1. Objective 1: Identify the key factors contributing to the decline in foot traffic.
2. Objective 2: Analyze customer feedback to understand their shopping preferences.
3. Objective 3: Evaluate the effectiveness of current promotional strategies.

Defining the problem and setting clear research objectives are critical steps in the market research process. A well-defined problem statement ensures that the research is focused and relevant, while clear objectives provide a roadmap for the research activities. By aligning these objectives with business goals, companies can ensure that their research efforts contribute to their strategic priorities.