Iceberg Theory: Identification of the Marketing Research Problem
Helen Strong
Iceberg Theory in Marketing Research: Purpose
The management issue or problem is usually obvious. Sales are falling; market share is dropping; a new product has not achieved the sales targets that were budgeted. What is not so obvious are the causes of a management problem. Shipham’s (2010) Iceberg Theory as applied to marketing research provides a great model to uncover the correct research problem and survey objectives.
Iceberg Theory in Marketing Research: Structure and Description
The theory behind the model (see Figure 20.1) is that one only sees the symptoms of a problem and that the underlying causes are like an iceberg; 80 percent below the surface. The importance of the model is that one cannot jump to conclusions as to the root cause of a problem. Critical reflection and additional investigation need to be completed to uncover the real reasons for a marketing problem or the problem that needs to be taken to market research to find the solutions.
Shipham postulates that there are four levels of complexity, which need to be interrogated to find the correct problem statement for research.
Level 1: Consists of identifying the obvious symptoms of the problem.
Level 2: Uses brainstorming, mind-mapping, and other expansion techniques to hypothesize as to all the possible causes of the visible problem. This activity defines the problem in context.
Level 3: Develops the problem review by testing those hypotheses and develops the business case for research through critical reflection and application of management models.
Level 4: Uncovers the academic basis for the issues and in the final analysis gives academic direction when determining the research problem statement.
Figure 20.1 Iceberg Theory
Iceberg Theory in Marketing Research: Strategic Considerations
The major benefit of applying this model is that the researcher will arrive at the correct problem statement, which needs investigation via market research.
Without a thorough analysis of the possible causes for a problem, it is possible that the incorrect assumption would be made as to the underlying issues. In turn this would lead to a wasted effort in investigating irrelevant information, with consequent incorrect recommendations for the marketing actions.
Iceberg Theory in Marketing Research: Implementation
As with all market research, one requires an accurate brief as to the visible symptoms that have generated a call for information. What exactly is going wrong within the environment? What signals are being received that there is an issue in the marketplace?
Level 1: At this stage, the researcher will also complete some secondary research to uncover market conditions and consumer trends that could have led to the observed problem. Clear articulation of the observed problems is necessary to provide a basis for the rest of the investigation.
Level 2: Problem in context: The researcher will undertake brainstorming sessions and mind-mapping exercises with stakeholders who are familiar with the product and its marketing mix.
One is looking for every possible change or issue that could have resulted in the observed problems. What has been happening in the environment? What issues could possibly affect the product?
For example, a drop in sales is not necessarily due to incompetence of sales consultants. It could be due to competitive activity; an economic downturn so that consumers do not have disposable income; fall away of the need for a product due to a change in behavior; a change in operational policies. It is dangerous to assume the cause of a problem.
Level 3: Problem review: At this level, the researcher applies his or her mind to see if there is a logical relationship between any of the issues defined at Level 2. Using management models and constructs, the researcher defines all the possible variables that could be tested in market research. Relevant models will define relationships between variables and bring into consideration issues that would otherwise be neglected.
Selection of relevant models is important. If the issue is to find a pathway to growth, then one would look for models that will help formulate growth strategies. If the issue is consumer acceptance of a product, then the model will be one in which product attributes are challenged in relation to consumer preferences.
Level 4: The problems that have been refined in the problem review are taken through a literature review where the findings of other researchers are used to evaluate the salience of the problems. One gains an appreciation of the type of research that has been conducted before, and of the outcomes that could be relevant to the current problem.
Using the critical reflection applied at all the above levels, the researcher will be in a position to define the research problem with a degree of certainty. Due consideration of all the possible causes and elimination of spurious ones will define the research statement and give direction for the research objectives that will be applied in the market research.
Iceberg for Marketing Research: Conclusions
Research that is based on incorrect assumptions is a costly and time-wasting effort. The Iceberg approach gives the researcher a good chance to isolate the correct research objectives and determine the right questions for investigation.
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