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The impact of marketing information system [mis]on marketing decision making in the organizations
THE IMPACT OF MARKETING INFORMATION SYSTEM (MIS) ON MARKETING DECISION MAKING IN THE ORGANIZATIONS
MIS affects marketing decision making in the organization. This project is designed to study the Impact of Marketing Information on Marketing Decision Making in the Organization in life Flour Mill Nig Ltd Sapele. It was to find the extent to which marketing decision making depends on marketing information system and also determined ways of improving decision making process. Questionnaire were prepared and administered in the area for gathering primary data used while secondary data were sourced from textbook, journals, magazines, and works of notable researcher and scholars were necessary. Tables and figures were also used to illustrate some of the processes for clarity and the percentage/ratio for proportion i.e Chi-Square (X2) to test various hypothesis. From the study and test of various hypotheses so far, the X2c (Chi – Square calculated) is greater than the X2t (Chi – Square critical) which required greater attention. Hence the null hypothesis was rejected in favour of the alternative hypothesis (Hi). In order words, 341.33 > 11.0, the null hypothesis was rejected in favour of the alternative hypothesis, while 45.83 > 11.0 was accepted. Consequently, from the study the causes and effects of MIS was discovered and analyzed in studied area. Therefore, for the organization to be truly marketing driven by the determination to deliver a superior customer value, a working or functional MIS should be installed.
1.0 THE BACKGROUND OF THE STUDY
Increasingly, the business place is repleted with competition and business failures occasioned by poor business decision. Generally, business decision can make or mar the survival of in organization. Worst still, uniformed decision is no small measure, can lead an organization non existence. Against this back drop, it is critically important for managers and marketers to make decision based on the information available at their disposal. Put differently, to gain a competitive – edge and to become a marketing star, marketing manager must make decisions. Which much be based on information available to them.
The information bank or base from which the marketing manager must draw from in order to make strong marketing decisions is the marketing information system (MIS). The MIS be designed and installed by the marketing manager (which must be cooperate wide) to enable him sources, collect, analyze and interpret data about the marketing environment as such information involve the principal objective of assisting him/her make the information decision for the organization.
Based on the foregoing, it is evident that MIS does not only help marketing manager to make decision, but tends to suggest that MIS influences marketing decision. This is a true consequent upon the quality and quantity of information contained in the MIS, that is quality and the quantity of information influences the quality of decision made by marketing manager. Therefore the research shall seek to determine in this study the extent to which MIS tends to influences marketing managers in decision making.
1.1 DETAILS OF MARKETING INFORMATION SYSTEM (MIS)
A marketing information system (MIS) is a management information designed to support marketing decision making. Jobber (2007) defines it as a “system in which marketing data is formally gathered, stored, Analyzed and distributed to managers in accordance with their information need on a regular basis”. In addition, the online business dictionary defines marketing information system (MIS) as a system that analyzed and assesses information gathered continuously from sources inside and outside an organization. Furthermore, an overall marketing information system can be define as a set structure of procedures and methods for the regular, planned collection, and analysis and presentation of information for use in making decision (Kolter, 2006). Developing a MIS system is becoming extremely information as the strength of economics rely on services and to better understand the specific needs of customer. Kotler, et al (2006) defined it more broadly as people, Equipment, and procedure to gather, sort, analyze, evaluate, and distribute needed and timely information to marketing decision making markers.
As our economy focuses on services, marketing is becoming external important to monitor the marketing environment for changes in buyer behavior, competition, technology, economic conditions and government policies. In this sense the role of marketing is become pivotal for an organization to adapt to changes in the marketing environment (Harmon, 2003). The main benefit of marketing system is to integrate market-monitoring system with strategy development and the strategic implementation of policies and processes that help captureand help on consumer management application with marketing decision support systems. This area constitutes marketing intelligence that support customer relations and customer services with real time information and with real time application that support market based approaches.
Robert H, (2003) MKIS is system are composed on four components
- User Interface: The essential element of the MIS is the managers who will use the system and the interface they need to effectively analyze and use marketing information. The design of the system will depending on what type of decisions managers need to make.
- Application Software: These are the programs that marketing decisions makers use to collect, analyze and manage data for the purpose of developing the information necessary for marketing decisions.
- Database marketing: A marketing database is a system in which marketing data, files are organized and stored.
- System Support: This components consistent of system managers and maintain the system assets including software and hardware network, monitor its activities and ensure compliance with organizational policies.
Along with these components, in MIS system include marketing decision support system (MDSS), which in term rely on simple systems such as Microsoft excel, SPSS, and online analytical tools that help collect data. Data compiled for analysis is stored and processed from a data warehouse, which simply a data respository systems that helps store and further process data collected internally and externally (Harmon 2005).
1.2 DECISION MAKING IN MARKETING
Robert Harmon (2003) marketing personal must make decision whenever they perform any of the marketing functions. Marketers must continuously decide what is to be done, who is to do it, how is to be done, and where are the best time and place to do it.
How to make Decision
Step 1: define idea or problem to be acted upon
Before seeking answers, you need to identify the real problem. The first step in decision making is to find out what the problem really is, only them should work toward solution and answer. Defining the problem is snot in easy task in most cases. What appears to be problem might at best be merely a symptom that shows on the surface.
Step 2: Collect, interpret and evaluate relevant information about the problem.
Usually there are many sources from which to gather information affecting a decisions. Sometimes standing orders, policies, procedures, rules, and regulations provide relevant information. Other sources of information include your own experience, company records and reports, discussion with individuals and personal observation.
Step 3: Develop Possible Alternative Solutions
The next step is to developed alternative ways of solving the problem or taking advantages of the opportunity. Alternatives and possible courses of action that can satisfy need or solve problem. Usually several choices are available to the decision maker if he or she is able to identify or develop them.
Step 4: Select the Preferred or Best Alternative
You have reached a point where you make a decision. You should logically and rationally price the alternative you think is most desirable for all concerned from an objective, ethical and practical point of view. Sometimes the preferred alternatives involves cost / benefits analysis and risk analysis.
Cost / Benefits Analysis: You estimate what each alternative will cost in terms of human, physical and financial resources. Then you estimate the expected benefits, finally, you compare the two estimates and select the one with greatest “payoff” where the ratio to benefits cost is more favourable.
Risk Analysis: Risk, which is the possibility of defect, disadvantage, injury, or loss is inherent in decisions making. Trying to minimize the risk involved by effectively forecasting outcomes and considering all variables involved.
Step 5: Implement the decision
Effective decision making doesn’t stop when you choose from among alternative solutions. The decision must be put into operations.
Step 6: Follow-up evaluate and makes change if needed
Follow-up and the evaluation of the outcome of a decision is part of the process of decision making. Follow – up and evaluation of decision can take many forms depending on the nature of the decision, timing, costs, standards expected, personal and other factors.
Decision making in marketing are al about series of decisions involve in making marketing decision.
1.3 SOMETHING ABOUT MARKETING
(Philip Kotler) Marketing is all about identifying and meeting human and social needs.
The American Marketing Association say that is the activities, set of institutions and process of creating, communicating, delivering and exchange offerings that have values for customers, clients, partner and society at large.
Based on this research, Marketing is all about range of activities involved in making sure that you are continuing to meet the needs of your customers and are getting appropriate value in return. Far often many organizations has misunderstood what marketing is all about their try to develop a product to meet customer needs with ever really verifying what the customer wanted in the first place. Instead, those organizations make a strenuous effort to sell the products through rigorous, ongoing advertising, promotions, and publicity. These organization may have built a beautiful ladder – but it may be entirely on the wrong roof.
We have inbound marketing, which simply mean market research to find out some certain things which are the following:
- What specific groups of potential customers/clients (markets)
- How does this needs might be met for each groups (or target market) which suggest how a products might be designed ot meet the needs (non profits may think in terms of outcomes, or changes to accomplish among the groups of clients in order to meet the needs.)
- How each of the target market might choose to access the products, etc (its packaging)
- How much the customer (clients might be willing pay and how (pricing analysis)
- How the competitors are (competitors Analysis)\
- How to design and describe the products such that customer / clients will buy from the organization, rather than from its competitors (its unique value proposition).
- How the product should be identified – its personality – to be most be identifiable (its naming and branding).
We still have one called outbound marketing which includes
- Advertising and promotions (focused on the products)
- Public and media relations (focused on the entire organization)
- Customer services
- Customer satisfaction
1.4 BRIEF HISTORY OF LIFE FLOUR MILL LIMITED NIGERIA
Life Flour Mill Limited came to Nigeria in June 1968 and started operation in Sapele 1968, and is located plot 354Ogorode industrial Estate. Life flour mill limited company own by Seaboard Company in American. The company are into production of flour, wheats, and the company is a subsidiary of Delta Pack, Topfeeds, and total of two other firms of 1968 company law the indigenization decree of 1972 had put controlling shares in the hand of Nigerians.
Life flour mills mission is to continue to remain the number of flour company in Nigeria. Providing the best flour market at competitive prices. Life flour mill flour mills manufactures under is trade name top feeds. It has a complete range of products covering all aspect of animal feeds in measurement in Nigerian and neighboring countries. Constant and efficient and safe supply of products to is customer is a major concern. Life flour mill and top feeds philosophy is simple, fair pricing, for the best possible results for its customer in their respective business.
1.5 THE PROBLEM OF THE STUDY
As stated in the background of the study, it is noted that decision can make or destroy the very existence of a company. Many companies have folded consequent upon poor decision made.
To say the least, market shares are lost and unnecessary marketing are rocking some companies due to the quality or otherwise of the decision made.
Therefore, the problem that have occasioned this study is the clear absence of marketing information system in most companies, which one way or the other has led to poor marketing decision. Another problem by the researcher is the fact that where MIS is put in place, marketing decision marker, hardly consult it when making decisions.
1.6 OBJECTIVES OF THE STUDY
- To determine if a functional marketing information system (MIS) is actually put in place.
- To ascertain the application or use of marketing information system (MIS) in marketing decision making process.
- To establish whether information supplied from marketing information system (MIS) profitably impact the decision made by the marketing managers.
- To find out the relevance of information contained in the marketing information system (MIS) in decision making.
- To determine the existence (if any) of the adverse or negative impact of marketing information (MIS) on marketing decision making.
1.7 RESEARCH QUESTIONS
They are questions that lie at the heart of the study, the questions are:
- Why do companies install a marketing information system?
- What types of information are contained in a company’s marketing information.
- Why is marketing information system (MIS) important in marketing decision making.
- Do marketing contained in the marketing information system (MIS) when making marketing decisions?
- Is the information content of the marketing information (MIS) relevant in the decision usually made?
1.8 RESEARCH HYPOTHESES
The hypotheses formulated for this study are as follows:
Ho: Some companies marketing information system are not effective
Hi: Some companies marketing information system are effective
Ho: Marketing information system (MIS) does not influence marketing manager decision making process.
Hi: Marketing information system (MIS) influences marketing manager decision making process.
1.9 SCOPE OF THE STUDY
To investigate the problem of this study as a whole will be too much for the requirement of this study in view of the short time and small financial resources available at my disposal. Rather the researcher shall make use of limit the investigation mainly on marketing information system, hence no attempt shall be made to look at the management information as a whole. Also the attempt shall be made to develop into the technicalities and models of managerial decision making process as these areas are not within the scope of this study. Also and importantly, the researcher shall also limit the study of the life Flour Mill Nigeria ltd.
Hence, finding made shall be used as basis for generalization.
1.10 SIGNIFICANCE OF THE STUDY
This study is expected to benefits a whole range of institutions and people.
- Firstly for companies that do not have a marketing information system (MIS) in place, this study is expected to satisfy stimulate, inspire, and redirect their thinking towards actually installing a workable MIS.
- Secondly, and in the same vein, for companies that have an unfunctional MIS, this study is expected to serve as a tool to guide and refurbish their MIS in order to make it function.
- Thirdly, this study shall form an addition to the pool of knowledge and materials on MIS from where students draw.
In addition, this study shall engender among students, a mentality and cultures of MIS to enable them become better manager in the future.
1.11 THE LIMITATIONS OF THE STUDY
Limitations under this heading deal with those constraints, which the researcher must encounter during the course of this study. In a research work like this, it is always difficult to complete the work without going through a number of factors, which constitute impediment. This are:
- As a final year student I had limited time to invest in this study, as a result of other academic activities.
- Attitude of the people interviewed Nigeria are very reserved because of the level of corruption in the societies. Thus they are very restrictive in given information.
- Financial Constrain, As a student I had limited finance resources to meet in this study.
1.12 DEFINITION OF MAJOR TERMS
I am defining the terms because, some of the terms use here may not be familiar by other reader or other people from any other discipline.
1. Marketing: A social and managerial process by which individual and groups obtain what they need and want through creating and exchanging product and values with other. Marketing is an exciting dynamic and contemporary field of human endeavour. It affects us each day in our roles as providers of goods and service (i.e producer) and as consumers.
Marketing is embracing all of the activities involved in anticipating. Managing and satisfying demand through the exchange process. Such activities include environmental (Situation) analysis and marketing research, consumer analysis, product planning, marketing programming, and marketing management.
Philip Kotler defines marketing as satisfying needs and wants through and exchange process. Customer will only undertake the exchange, if they feels that their needs are being satisfied, clearly the transactional value cannot be more than the amount customers are prepared to pay to satisfy their need.
Marketing is not about providing products or service it is essentially about providing changing benefits to changing needs and demands of customer (P. Tailor).
In a brief, marketing is communicating the value of a products, services or brand to customers for the purpose of promoting or selling that products, service or brand.
2. Marketing Information System: A marketing information system is a management information system designed to support marketing decision making. Jobber (2007) defines it as a system in which marketing data is formally gathered, stored, analysed and distributed to managers in academic with their informational needs on a regular basis. In addition, the online business dictionary defines marketing information system (MKIS) as a system that analyze and assesses marketing information gathered continuously from sources inside and outside the organization. Furthermore, “an overall marketing information system can be defined as a set structure of procedures and methods for the regular, planned collection, analysis and presentation of information for use in making marketing decisions”. (Kotler 2006) developing a marketing system is becoming extremely important as the strength of economies rely on service and to better understand the specific needs of customers. Kotler (2006) defined it more broadly as people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision markers.
As our economy focuses on services, marketing is becoming extremely important to “monitor the marketing environment for changes in buyer behaviour competition, technology, economic conditions, and government policies”. In this sense, the role of marketing is becoming pivotal for an organization to adapt to changes in the market environment (Harmon 2003).
3. Information: This refers to processed data or facts or details about something/somebody that are useful for decision making.
4. Decision: This is the choice between two or more alternatives to be executed.
5. System: This refers to a whole network of interacting components, aims at converting on input (resources) into an output (result).
6. Communication: This a two way process of reaching mutual understating, in which participants not only exchange (encode – decode) information, news, ideas, and feelings, but also create and share meaning. In general, communication is a means of connecting people or places. In business, it is a key function of management an organization cannot operate without communication between levels, departments and employees.
7. Marketing Research: We can say marketing research is a systematic method of collecting, recording and analyzing of data, which is used to solve marketing problems. American Marketing Association (AMA) Defines Marketing research as a systematic gathering, recording and analyzing of data about problems relating to the marketing of good and services.
David Luck, Donald Taylor and Hugh Wales Defines Marketing Research as the application of scientific methods in the solution of marketing problems.
8. Marketing Intelligence: Is external data collected and analyzed by a business about markets that it anticipates, participating in with the intention of using it in making decisions. Marketing intelligence can be assess market entry opportunities and to formulate market development plans and penetration strategies.
Everyday information about developments in the marketing environment that help managers prepare and adjust marketing plans. The marketing intelligence systems determine what information is needed, collects it by watering and searching the environment, and delivers it to marketing managers who need it. Defensive marketing intelligence helps avoid surprises that threaten present or future marketing plans and actions. Offensive intelligence information on trends in the social environment might suggest new positioning strategies or advertising initiatives that can be put in place to trace advantage of these trends.
9. Marketing Concept: The marketing concept of management philosophy according to which a firm goals can be best achieved through identification and satisfaction of the customers stated and unstated needs and wants.
The marketing concepts is about marketing a company capabilities with customer wants. This matching process takes place in what is called the marketing environment.
Businesses do not undertake marketing activities alone. They face threat for competitors and changes in the political, economic, social and technological environment. All these factors have to be taken into account as a business tries to match its capabilities with the needs and wants of its target customers.
An organization that adopts the marketing concept accepts the needs of potential customers as the basis for its operations. Success is dependent on satisfying customer needs.
10. Organization: An organization is a social unit of people that is structured and managed to mat a need or to pursue collective goals. All organizations have a management structure that determines relationship between the different activities and the members and subdivides and assigns roles, responsibilities and authority to carry out different tasks.