Page 137 - Foundations of Marketing

104 Part 2 | Marketing Research and Target Markets

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claiming to be unbiased customers. Thus, as with any other resource, firms must manage
digital resources with caution to maintain a high level of consumer trust and satisfaction.
Finally, companies of all sizes have unprecedented access to industry forecasts, business
trends, and customer buying behavior—which improves communication, understanding of
the marketing environment, and marketing research capabilities. Many firms use marketing
information systems, CRM technologies, and cloud computing to network technologies and
organize the marketing data available to them. In this section, we look at marketing infor-
mation systems and specific technologies that are helping marketing researchers obtain and
manage marketing research data.

Marketing Information Systems

A marketing information system (MIS) is a framework for the day-to-day management and
structuring of information gathered regularly from sources both inside and outside the organi-
zation. As such, an MIS provides a continuous flow of information about prices, advertising
expenditures, sales, competition, and distribution expenses and can be an important asset for
developing effective marketing strategies. The main focuses of an MIS are on data storage
and retrieval, as well as on computer capabilities and management’s information require-
ments. MIS can help with producing regular sales reports by product or market categories,
data on inventory levels, and records of salespeople’s activities, which can all help in market-
ing decision making.
An effective MIS starts by determining the objective of the information—that is, by iden-
tifying decision needs that require certain information. The firm then specifies an informa-
tion system for continuous monitoring to provide regular, pertinent information on both the
external and internal environment. Shipping companies such as FedEx have interactive mar-
keting information systems that provide instantaneous communication between the company
marketing information system
(MIS) A framework for manag- and customers. Customers can track their packages via the Internet and receive immediate
ing and structuring informa- feedback concerning delivery. The company’s website provides researchers with information
tion gathered regularly from about customer usage and allows customers to convey opinions on company services. The
sources inside and outside the evolving telecommunications and computer technologies allow marketers to use information
organization systems to cultivate one-to-one relationships with customers.

Emerging Trends

The Billboard of the Future

Traditionally, when a person looks at a billboard, informa- recognize gestures and facial expressions of consum-
tion goes one way: from billboard to consumer. However, ers. This data can determine whether the consumer
new marketing research technology now allows informa- is actually looking at the display. For marketers, the
tion to go two ways. The consumer collects information technology can help them understand who is attracted
from the billboard’s message, and the billboard in turn to their messages and perhaps create customized
collects information about the consumer. messages for each consumer based upon this data
In Japan, digital billboards have been invented that esti- collection. However, privacy advocates are wary of this
mate a consumer’s age and gender. Based on the estimated technology. They fear that it can be misused to identify
age and gender, the display then creates advertising tailored people, a violation of individual privacy. So far there is
to the appropriate demographic. An East Japan Railway sub- little regulation to limit how marketers will use infor-
sidiary introduced vending machines with this technology that mation collected from billboards. As this technology
use information gleaned from consumers to suggest drinks. becomes more popular, clearer laws will be needed to
Similar billboards are appearing across the world. In allow marketers to gather information without abusing
the United States, marketers are creating displays that consumer privacy. c

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