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RunningHead: MARKETING RESEARCH ON INFORMATION SYSTEMS 1

MARKETING RESEARCH ON INFORMATION SYSTEMS 3

Marketing Research on Information Systems

Name

Institution

Table of Contents

Abstract………………………………………………………………………….. 3

Statement of the Problem…………………………………………………….. 4

Significance of the Study……………………………………………………. 4

Study Hypothesis………………………………………………………………. 5

Study Questions……………………………………………………………….. 5

Literature Review……………………………………………………………… 5

Use of Information System…………………………………………………. 6

Computer-based Information Systems……………………………………. 7

i. Transaction Information System (TIS) ……………………….. 7

ii. Management Information Systems (MIS)…………………….. 8

iii. Office Automation Systems (OAS)……………………………… 8

iv. Decision Management Systems (DMS)……………………….. 9

v. Expert Systems………………………………………………………… 9

Customer Relationship Management……………………………………… 9

Types of CRM Systems…………………………………………………………. 11

Methodology……………………………………………………………………….. 11

Data Collection…………………………………………………………………….. 12

Data Analysis…………………………………………………………………………. 12

Conclusion……………………………………………………………………………. 12

Marketing Research and Information systems

Abstract

Marketing research can be defined as the orderly way of gathering and organizing information regarding the customers to market the goods to. Marketing research also entails identifying the problems in the market and researching for their solutions. The aim of this research is to identify how information systems can be used to ensure superior customer relationship management (CRM) (Sharp, 2003). The main intention of any marketer is to ensure that customers are served in a justifiable manner. Customer Relationship Management is a strategy that involves collecting information from the customers and using the collected information to fulfil the needs of the customers and thus enhance sales (Sharp, 2003). Information systems are used to bring together the raw data collected analyse and evaluate and later on assist in decision-making.

How to use information systems in Marketing

Statement of the problem

Marketing is a strategy that must be used by any business to improve the sales and in the long run proper. Determining the best method to us when marketing the products becomes hectic when proper information systems are not in place. The aim of a Marketing Information System (MIS) is to coordinate different items of raw data into a consistent body of ideas (Sharp, 2003). The system is more suitable when it comes to decision making and provides different methods of interpreting the data provided. When proper strategies are applied in the field of marketing, sales are improved since consumers get quality goods that satisfy their needs. The management also finds it easier to deal with the feedback they get from the consumers.

Significance of the study

This study was done with the main aim of identifying why information systems are important to any business when it comes to marketing the goods and services produced. The study results are of great importance to any company that wishes to market its products through information systems. The management of the company will have the knowledge to identify and conclude on the best type of information system to use when reaching the clients, employees and other companies producing the same goods and services.

Consumers determine whether a company will grow or fall. They are the main determiners when it comes to any form of business. Any company that wishes to prosper must ensure that there is a good connection between the management and the consumers and that any feedback from the consumers is agreed upon.

Study Hypothesis

In modern technology, there are different ways that a company or a business can use to connect with their potential customers. Different types of management systems are used to process data collected from the field (Sharp, 2003). After the data is processed, the information is used to lead to a solution. Questions are directed to the respondents and their answers are the used as raw data. The use of information systems has been reliable in different companies and business but it sorely depends on the management. This study will focus on the different types of information systems and their impact to a business or organisation when it comes to marketing.

Study Questions

1. What is the use of an information system?

2. What are the different types of information systems?

3. What is Customer Relationship Management?

Literature Review

Studies have shown that when it comes to the field of marketing and the strategies to use when marketing, it is very difficult for any type of business to come out with the perfect one. This is sorely because when marketing, you have to reach the customers whether directly or indirectly. You also have to get feedback from the customers either directly or indirectly. Finally, you have to communicate to the customers that their worries and problems regarding the commodities have been solved still directly or indirectly.

Most of the problems regarding to marketing arise when you do not have direct contact with the customers. This is because you will never get the 100% perfect queries as raised by the customer. Members of the company in the field will give you an all okay look and give excuses for their low sales but the problem strictly remains that there is a gap between the consumer and the management. To breach this gap, the management should search for the best marketing strategy that will offer valid information to both sides, to be precise the management and the customer (Sharp, 2003).

Use of information systems

The materialization and transformation of businesses and the global market make information systems necessary in any organisation today. Nowadays, for any business to prosper economically, a good information system must be put in place. Business information systems assist a business in improving its operations and hence intensify its profits (Rajaraman, 2004). To realize higher levels of output and competence, the managers require information systems in their businesses.

Firms and organisations create new goods and services using information systems and end up realizing fresh business labels. The business labels are used to illustrate how an organisation manufactures, distributes and sells its goods and services. Information systems create a supplier/consumer relationship. If a suppler supplies the consumer with high quality and satisfactory products, the consumer will always go back and purchase more. The more the consumer buys the products, the more the business realises improved profits. Major hotels always keep details of their visitors in the computers to ensure they know their preferences i.e. room temperature, preferred television channels and their favourite diets. The information systems assist the managers in their decision-making. Lack of proper decisions raises costs and the business ends up losing potential customers. (Rajaraman, 2004)

Information systems assist the business in gaining competitive advantage. When businesses realize new goods and services, they gain more trust from their customers. This raises their sales and thus they realise higher profits. Charging less for these goods and services and providing quality products to the consumers will see the business performing better than its competitors do thus higher profits.

Information systems lay the foundation for any business. Without use of IT in business, prospering and making profits is inconceivable. The incorporation of computer technology into a company or business is known as use of information systems. The size of an information system depends on the size of the business or organisation. The automation of any business depends on how the raw data received will be used in decision making, produce quality goods and services and further develop a software for logistical purposes. Information systems can also be designed according to the ranks in an organisation.

Computer-based Information Systems

In this type of information system, the computer is sorely used in determining all the business applications. An analyst develops the computer system depending on the type of business and its size. Computer Based Information Systems can be subdivided into Management Information Systems, Transaction Information Systems, Office Automation System and Decision Support Systems.

i. Transaction Information Systems (TIS)

This is the most fundamental system in any form of business. A transaction can be defined as any activity or occurrence that influences the whole business. This system helps in recording, capturing, storing, updating, maintaining and retrieving all the business transactions that take place in any given time (Champlain, 2003). Its main aim is to develop the regular business actions. The common transactions in any business are hiring employees, placing orders, invoicing the customers and lastly receiving the payments. These transactions may vary from one business to the other depending on the size of business, types of business and the mode of payment that the business allows either in form of cash or cheques. Transaction information system is designed depending on the nature of business to follow the set guidelines and the result is accuracy attained at a favourable speed.

ii. Management Information Systems (MIS)

Management Information Systems are extra concerned about how the different levels of management in a company or organisation deal with information collected to ensure the smooth running of the organisation. Mostly computers were used for the usual transactions but managers realized that they could be used for data assessment and executing quicker calculations.

This system evolved from the Transaction Processing System (Champlain, 2003). The system has been designed since it has been noted that processing data by the use of a computer has been found to be more effective than using the manual method. It is also very quick and efficient to process data related to accounts using this type of information system. The information entered into the system should be timely, complete, relevant and accurate to enable us get the expected result.

iii. Office Automation System (OAS)

Office Automation Systems are the new systems being designed to check on the efficiency of all employees in an organisation to increase their production. Employees have been made to sign performance contracts but they have proven to be slow when it comes to the evaluation of every employee in a company. These systems are expected to improve the efficiency when it comes to determining the output of each employee.

iv. Decision Support Systems (DSS)

Decision Support Systems are used to offer information that is not easy to predict. They are not commonly used in businesses and are not used to produce reports. The managers use these information systems to make unstructured decisions regarding a range of requests made by customers.

v. Expert Systems

An expert system confines and stores the intellect of individual specialists and then emulates individual way of thinking and decision-making progression where there is minimized expertise. The systems are comprised of a knowledge base that has the experience of the individual experts and the inference rules that are set depending on the reasonable judgements and the information described to the expert system. These systems are a part of the thrilling division of computers known as artificial intelligence. Human intelligence is loaded into a computer and it can sense suppositions and behaviours to complete a task.

Customer Relationship Management

Customer Relationship Management (CRM) entails all the affiliation and interaction that an organisation enjoys with its consumers/customers. CRM is a business strategy used by organisations and companies to ensure they maintain their customers, understand them and reduce their costs and to attract new consumers (Rajola, 2003). If a suppler supplies the consumer with high quality and satisfactory products, the consumer will always go back and purchase more. The more the consumer buys the products, the more the business realises improved profits.

Customer relationship management is used to describe the relationship between a customer and an organisation. The CRM also helps the organisation to recognize their paramount clients and produce quality guides for the marketing and the sales sections. The system also assists in optimizing the data shared by the workers in order to modernize existing procedures.

For this to happen there must be CRM systems to assist in the management of clients, sales and contacts. CRM systems provide the organisation with the data of the customers and in so doing help the business provide them with goods and services that they require, offer quality service to the customer and in so doing retain the customers and improve sales and profit margins.

Because of the advancement in technology, Company Relationship Management schemes have changed. This development in technology has also brought about change in the purchasing behaviour of consumers. Companies have found new way to reach their clients and accumulate their data (Rajola, 2003). The client relationship is being administered electronically by use of smart phones and through the internet through social media sites. Most of the aspects of the Customer Relationship Management system rely on technology.

A preferred CRM system is one that links and manages all the clients’ data with the sole aim of effective marketing of the products.CRM systems help the organisation to obtain a better understanding of their customers and the products that they are purchasing on a regular basis. They supply the requirements of small traders as well as large organisations. Different types of CRM systems have the main goal of creating opportunities by the use of technology and thus improve the services an organisation provides to the potential customers.

Types of CRM Systems

Operational systems

The operational systems in CRM centre on the software functions that incorporate detached information sets in the organisation. These systems have an advantage in that they have the ability to allow employees to offer direct and rapid feedback to the clients without the use of a single software function. Thus, in so doing the clients’ service procedure is streamlined (Rajola, 2003).

Analytical Systems

Analytical systems centre on gathering feedbacks regarding to customers from the available data in the organisation. These systems vary from others in the technique they use the gathered information. The data gathered is scrutinized using specific software appliances to search for guides and styles (Dua, Sahni & Goyal, 2011). The analyzed data improves the consumer provision by focusing on extensive problems that might not be apparent in each person so that they are tackled by the organisation prior to getting worse. Through this advancement to consumer services, the company’s costs are decreased.

Collaborative systems

The collaborative systems go the exterior of a business to integrate the exterior contacts of the organisation. Data is made accessible to the clients through a particular website and extra data is included into the customer services through the system (Dua, Sahni & Goyal, 2011). These systems facilitate the clients to work closely with an organisation and thus develop the services offered to them. When businesses realize new goods and services, they gain more trust from their customers. This raises their sales and thus they realise higher profits.

Methodology

The study was developed by scrutinizing different companies in how they deal with their clients and how they collect their data. The researcher targeted the companies that used CRM systems. The study was an empirical study developed by the use of questionnaires. Study questions were developed and they were used to obtain information from the organisations. Ratings were rated depending on the different types of information systems used by different companies.

Data Collection

Data was collected by the use of study questions delivered to the companies. Personnel had been trained by the researcher on how to collect information and fill in the questionnaires. A period of one week was set for the data collection. The duly filled-in questionnaires were collected at the end of the week, checked for errors and ambiguity and used to derive information.

Data Analysis

Useful data was obtained by the end of the one week in the questionnaires provided. Data analysis tools were utilised. They included computer-based software like databases and spreadsheets. The analysis techniques utilised were correlations, regressions and comparisons for the different data obtained from the organisations. Presentations, tables, statements and graphs were used to present the data collected.

Conclusion

From the information collected from the companies, it is evident that information systems used in these companies are different depending on the size and customer base in the organisations. Those organisations with a huge customer fraternity use more improved systems than the smaller ones. This development in technology has also brought about change in the purchasing behaviour of consumers. Companies have found new way to reach their clients and accumulate their data. The client relationship is being administered electronically by use of smart phones and through the internet through social media sites.

From this research, it is also evident that well managed information systems assist the management in reaching their clients and in so doing provide quality goods and services. This improves their sales and the profit margins rise due to improved customer support and timely feedbacks.

References

Champlain, J.J. (2003). Auditing Information Systems. Hoboken, NJ: John Wiley & Sons

Dua, S., Sahni, S. & Goyal, D.P. (2011). Information Intelligence, Systems, Technology and Management. New York, NY: Springer

Rajaraman, V. (2004). Analysis And Design Of Information Systems 2Nd Ed. New Delhi, India: PHI Learning Pvt. Ltd

Rajola, F. (2003) Customer Relationship Management:Organizational and Technological Perspectives. New York, NY: Springer

Sharp, D.E. (2003). Customer Relationship Management Systems Handbook. Boca Raton, Fl: Auerbach