Capturing marketing insight is essential for each and every company before developing the
marketing programs. Marketing managers must understand what is happening inside and outside
the company. Company can gain the information regarding the marketing environment through
the following methods.
i) Marketing information system (MIS)
ii) Marketing intelligence system
iii) Marketing research
iv) Consumer research
v) Decision support system.
i) A marketing information system consists of people and procedures for assessing
informational
needs, developing the needed information, and helping decision makers to use the
information to generate and validate actionable customer and market insights.
A MIS consists of people, equipment and procedures to gather, sort, evaluate needed,
timely and accurate information and disseminate the information to the decision makers
on an ongoing basis.
ii) | Marketing intelligence system: Marketing intelligence is the
systematic collection and analysis of publicly available information
about consumers, competitors and developments in the marketplace.
The goal of marketing intelligence is to improve strategic decision
making by understanding the consumer environment, assessing and
tracking competitors’ actions and providing early warnings of
opportunities and threats. Good intelligence can help marketers to
gain insights into how consumers talk about and connect with their
brands. Many companies send out teams of trained observers to mix
and mingle with customers as they use and talk about the company’s
products. The internal records system supplies results data, but the
marketing intelligence system supplies happening data. A marketing
intelligence system is a set of procedures and sources managers use
to obtain everyday information about developments in the marketing
environment. Marketing managers collect marketing intelligence by
reading books, newspapers and trade publications; talking to
customers, suppliers and distributors and meeting with other
company managers.iii) | Marketing research: In addition to marketing intelligence
information about general
consumer, competitor and marketplace happenings, marketers often need formal studies that
provide customer and market insights for specific marketing situations and decisions. Marketing
research is the systematic and objective identification, collection, analysis, dissemination and use
of information for the purpose of assisting management in decision making related to the
identification and solution of problems in marketing.
Some large companies have their own research departments that work with marketing managers
on marketing research projects. Sometimes firms simply purchase data collected by outside
firms to aid in their decision making.
The marketing research process consists of six steps.
i) Problem definition
ii) Development of an approach to the problem
iii) Research design formulation
iv) Field work or data collection
v) Data analysis and data preparation
vi) Report preparation and presentationiv) Consumer research:
Consumer research is a part of marketing research. Consumer research just passes through the
process. By studying the consumers, we are able to understand the consumers. Marketing
managers are able to collect information by conducting the consumer research.
The consumer research process
\
v) Decision support system (DSS):
There are some limitations of MIS, a new system arises. Developed to overcome the limitations
of an MIS, decision support system enables decision makers to interact directly with databases
and analysis models. Decision support system are integrated system including hardware,
communication network, database, model base, software base. and the DSS user that collect and
interpret information for decision making. Marketing research contributes research data to
programs for analyzing marketing data to the software base. A DSS differs from an MIS in
various ways. A DSS combines the use of models or analytical techniques with the traditional
access and retrieval functions of an MIS. A DSS is easier to use in an interactive mode and can
adapt to changes in the environment as well as to the decision-making approach of the user. In
addition to improving efficiency, a DSS can also enhance decision making effectiveness by using
what if analysis. DSS have been further developed to expert systems that utilize artificial
intelligence procedures to incorporate expert judgment.