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The bene ts of a functioning marketing information system are obvious to the user A well-designed practical marketing information system controls the distortion and loss of information in data and provides faster, more complete and less expensive information extraction to serve management decisions A good system allows the organization to simultaneously monitor a variety of activities in the marketplace Four sets of factors in uence market potential and the organization requires information on each: market access; market size and growth; the price structure; and competitive environments (Figure 52) Under market size and sales growth concern rests in establishing levels and trends in consumption, geographic patterns and the impact of segmentation For industrial products it is also necessary to measure the extent of derived demand for the product or service as trends in nal markets dictate demand in industrial markets Under this heading the organization will also need to quantify other broader factors which affect demand Among the more important of these factors are social and cultural trends, economic development and
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Figure [52] Factors in uencing market potential
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the physical environment Under market size and growth it is necessary to have information on: Demand in uences economic, geographic, climatic Imports volume, value, sources, trends Consumption volume and growth, segmentation, derived demand Access through distribution channels to potential customers must be determined Blocked channels may make it virtually impossible to reach customers thereby forcing the organization to seek an alternative channel or even developing its own independent channel Understanding the key dimensions of market access involves compiling information on: currency and tax regulations licensing requirements health and safety regulations tariffs and quotas currency restrictions political, social and cultural issues The third set of factors to be examined is the competitive structure of the market In evaluating competition it is necessary to examine production levels, volume and growth trends Examining market structures means identifying major competitors, estimating their market shares, knowing where their plants are located and their capacity If possible, information on future plans especially regarding capacity additions and technology changes should be
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Obtaining customer information [81]
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obtained The organization must also attempt to measure the strength of competitors which means obtaining information on their size and other special advantages such as the possession of valuable patents and trademarks There may be other factors which determine success levels among competitors that should be identi ed such as the marketing knowledge and skills of the competitor s staff During this analysis the organization also has an opportunity to identify gaps in product lines Evaluating the competitive environment requires information on: Production volume and growth Structure market share, location, capacity Strength size, technology, product lines, trademarks and patents Related to the above factors but requiring separate treatment is the price structure in the market The organization should determine the prices to end users and, if it is a consumer product or service, the price points involved Other factors in uencing prices and costs should also be evaluated such as ex-factory prices, trade mark-ups, and transport costs, if the organization is considering exporting A number of aspects of the price structure must be examined: customer prices trade mark-ups transport costs price ex-premises Regulations, which include health and safety regulations and those designed to protect the environment, must also be considered In recent years the growth of regulations on packaging, advertising and ingredients, in food and beverages especially, has given organizations great cause for concern These are regulations which change periodically and keeping abreast of them requires considerable attention on the part of the organization
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In determining product information requirements, four sets of factors dominate the consideration: the core product itself; its transport and storage; associated information; and promotion (Figure 53) Regarding the product itself, issues such as colour, taste, size, design and styling and materials used must be considered Other product factors include the performance characteristics of the product, technical speci cations and advertising and
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