The iceberg principle illustrates that in many marketing problem situations, the marketing manager only understands 20 per cent of the actual problem, while 80 per cent remains submerged.

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In discussing the iceberg principle within marketing problem solving, we start by framing what the principle claims about visibility and understanding.
Option True: The statement asserts that only 20 percent of the actual problem is understood while 80 percent remains submerged. This aligns with the classic metaphor, where the visible part (the 20%) represents what managers can observe, while the submerged 80% consists of underlying causes, assumptions, and interdependencies that are not immediately apparent. Interpreting it this way emphasizes the common pitfall: managers may focus on surface symptoms rather than root causes, leading to incomplete problem framing.
Option False: If one argued that the iceberg principle means managers understand the full scope of the problem but only 20% is visible, that would contradict the core idea of the metaphor. The principle emphasizes limited visibility and incomplete understanding, not comprehensive awareness behind the surface. However, some misinterpretations might claim the submerged portion is negligible or that the visible portion fully captures the issue; both would misstate the intent of the iceberg analogy by downplaying the significance of the hidden factors.
Option True (alternative angle): Another way to interpret the statement is to recognize that marketing problems often have large portions that are not immediately observable but critically influence outcomes. Affirming 20% visibility and 80% hidden reinforces the need for deeper diagnostic techniques, data collection, and inquiry. This supports why the statement is considered true in many textbook explanations.
Option False (alternative critique): A counterpoint might be that in some cases, managers can achieve a more balanced understanding due to rich market data or structured problem-solving methods, which could reduce the submerged portion. Yet this does not negate the fundamental intuition of the iceberg principle; it merely acknowledges that the ratio can vary with context, cautions, and tools. Nevertheless, the standard teaching keeps the 20/80 split as the guiding metaphor, making a blanket false claim about universal applicability inaccurate.

MKTG1047 Chapter 2

The iceberg principle illustrates that in many marketing problem situations, the marketing manager only understands 20 per cent of the actual problem, while 80 per cent remains submerged.

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