Market information

Market information is every content, message transmitted from the market or on the market, it is order, description, need or decision of market participant. Marketing information is driving force of marketing process, because no marketing decision will be taken in case of market information deficiency. Many internal and external environmental variables influence marketing decisions, hence a marketer needs a lot of information associated with those variables in order to take rational market decisions in conditions of insecurity, connected with marketing management.

Sources of market information

• secondary sources - retrieved from former, past events, direct or secondary measurements usually already used for specified purposes.
• original sources - acquired from direct measurements of market processes or consumer behaviour.

There is another division of information sources, according to extraction place criterion:

• internal sources of information - utilise diverse data contained in books, reports, accounts that were prepared in form of electronic record.
• external sources of information - include surroundings monitoring and marketing research.

Surroundings monitoring - here a crucial matter is careful monitoring and gathering of data about perceived phenomena, such as competitors' actions, new trends, behaviour and tastes of consumers.

Marketing research - consist in gathering of information but it concerns resolving, explaining a specific research problem or obtaining an answer for a posed question.

Marketing Information System in an enterprise

Marketing Information System (MIS) consists of people, objects and integrated procedures that serve administration of accurate and regulated information related to marketing, associated with market environment of an organization. It helps marketers in creation of strategies and marketing plans. MIS plays a vital role in enhancing economic efficiency of an enterprise on very competitive markets by providing essential information for different administrative levels of the enterprise. Marketing Information System consists of:

• internal company documents - information about activity scale of an organization, current sales results, financial flows, etc.
• market intelligence - way of immediate familiarizing with novelties of company's environment (for example by mass media),
• market research - process of search and interpretation of valuable market data

Market information obtained by MIS

• competitor analysis - system should integrate and provide information regularly collected from all types of competitors. All categories of competitors have to be constantly analysed and input to databases. Analysis of such elements as product assortment of competitors, competitive intensity or customer's willingness to brand change - is one of the main tasks of marketer.
• analysis of macroeconomic environment - marketer has to have at his disposal information about factors he cannot control: demographic rends, socio-economic trends, ecological trends, technological and political factors.
• analysis of market, on which company operates - analysis of expected demand on enterprise's products
• consumer behaviour - potential client has to be described according to following criteria: age, social status, income, influence of his family on his purchase decisions, etc.
• financial state of an enterprise - although it is not essential information for a marketer, general review of financial data is necessary for making strategic decisions and appraisal of company's sales activities.

Methods of gaining new information

• Survey - one of the most frequently used method used to get information. This is kind of dialogue with consumer, but interviewee gives a written answer on a question posed by a researcher.
• Interview - an conversation between respondent and pollster. The task of interviewer is to record answer on a previously posed question and observation of respondent and his behaviour, attitude, motions, because it provides additional information as well. In this case, examples of interviews are: direct interview, telephone interview, in-depth interview, focus interview. The most frequently employed interview is so called "face to face" interview - direct interview.
• Observation - a method consisting in making observations by an observer. The objects of an observation can be both people and their behaviour and items.
• Projection methods - measurement of consumer's features by attitude and behaviour appraisal

Principles of market information questionnaire construction

Questionnaire is a list of questions on the one or more subjects, substantively and graphically organized, usually printed. It is direct and very important metrological tool, applied in direct information gathering. Questionnaire includes different types of questions that can be formulated in various ways. The most important purpose is to obtain and to collect necessary information, that will be used in the future.

Market information — recommended articles

Marketing research — Business concept — Promotional plan — International marketing research — Relevant information — Depth interview — Functions of research — Sales analysis — Information needs

References

• Ottum B. D., Moore W.L., (2003) The Role of Market Information in New Product Success/Failure The Journal of Product Innovation Management, Vol.14, No. 4. p. 258-273.
• Sinkula J. M., (1994) Market Information Processing and Organizational Learning Journal of Marketing, Vol. 58, No. 1, p. 35-45.
• Chen F., (2000) Salesforce Incentives, Market Information, and Production/Inventory Planning p. 60-75.
• Troy, L.C., Szymanski, D.M., Varadarajan, P.R. (2001)Generating new product ideas: An initial investigation of the role of market information and organizational characteristics Journal of the Academy of Marketing Science, Vol. 29, No. 89.