Problem Formulation and Categorization: An Empirical Study of Marketing Problems in an Organization

Abstract

The ability relating to problem identification and problem solving play an important role in the thinking process of managers. An important part of this process is problem formulation, which involves problem categorization. How the problem is classified and defined is crucial to the solution of the problem as it guides further action by the manager. This study reports a ranking of problems perceived as important by different levels of managers in an organization, which are then categorized along the strategic-operational and internal-external dimensions. The hypothesis that strategic problems are perceived to be more important than operational problems by higher-level managers is empirically tested. The results partially supported the hypothesis and suggested an internal and operational focus in the organization. There seems to be a lack of marketing orientation. The paper also creates insight into how problems are defined and labeled by managers and staff of an organization. The focus of this study is on marketing problems of a Fertilizer Co-operative of India operating at all India level and involved in complete value chain of fertilizer product category but which has been facing declining sales in the past two years.