ABSTRACT
Understand the importance of information and the concept of a marketing information system
Appreciate the role of market research Explain the techniques for forecasting future
demand Assess the importance of information systems
in meeting the challenge of change
Syllabus reference: 4.1, 4.2, 4.3, 4.6, 4.7
KEY REV IS ION PO INTS
The distinction between marketing data and marketing information
The contribution of market research to the development of strategy and planning
The role and importance of information systems to marketing decision-making
Information technologies that enhance marketing effectiveness
Methods of analysing environmental information
n Control over information provides power over competitors and the environment
n Informed and effective decisions need information
n Information is data that is collected, ordered, processed and analysed in time for relevant decisions to be taken
n An input in SWOT analysis for strategy purposes
n Fundamental to control by comparing actual to planned achievement of objectives
– right sources – sufficent for purpose – timely – cross-referenced – communicated clearly – available to appropriate decision-makers – cost-effective – concise, avoiding overload
l Recognize the importance of information
l Realize that knowledge is power
l Understand the need to manage information
l Develop the necessary information skills such as networking and the effective use of ICT
l Build a network of business environment contacts
l Use quality information to make better decisions
l Form strategies to cope with information explosion
A personal information system
– Daily scanning of news media – Review of trade press – Network of organizational and stakeholder
contacts – Personal database – Online to central database – Electronic diary – E-mail/fax/internet connection – Mobile communications – Skill in video/teleconferencing – Ability in desktop publishing
} The people, equipment and procedures to gather, sort, analyse, evaluate and distribute needed, timely and accurate information to marketing decision-makers. ~ (P. Kotler)
– a sensing/monitoring system – a classification system – a processing system – a database and retrieval system – a control system – a communication system
‘To manage a business well is to manage its future – to manage its future is to manage information’ (Harper Jr)
– distilled from stakeholders and market/competitor research
– lack of secondary sources – to identify threats and marketing opportunities – monitor effectiveness of the marketing process
An information service that is in active and continuous communication with a central system that is frequently updated — allows the marketer to access, for example, current prices, competitor data, supplier status, economic and financial context, specific product and market information
– Real time – Remote access via mobile or laptop – Interactive – Time-saving – Flexible – Sales support – Quality; information on tap – Competitive edge – Falling cost
3 Online access to the changing environment
3 Search engines facilitate access to external databases
3 Enables telecommuting and enriches sales and executive effectiveness in the field
3 Must be combined with human judgement
3 Must balance cost/avoid information overload
} The process of collecting and analysing information in order to solve marketing problems. ~
• Provides specific information not available from secondary sources
• Provides quality information when it is needed
• Helps to define the customer/their future needs
• Identifies opportunites and threats
• Calculates market potential, assesses trends, analyses competitors and feeds in to forecasts
• Prerequisite to marketing mix decisions
l Organization specific l Defines problems l Future orientated l Potential competitive edge l Tailored to providing solutions l Informs strategy and planning
} Quantitative and qualitative estimates of the future. ~
n The future is essentially unknowable, yet marketing concerns anticipating needs and wants
n The longer the time horizon the greater the uncertainty, yet future planning is essential
n Uninsurable business risk of producing in anticipation of demand
n Which are the ‘right’ forecasts? When does a pattern become a trend? When are the turning points? What is the pace of change?
