Page 107 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes Self Assessment

Fill in the blanks:
13. …………….method of survey is most economical but the response is generally poor.
14. In a survey ………………. represents a group of population.

5.7 Marketing Information System

Some firms have developed marketing information systems that provide management with
rapid and incredible detail about buyer wants, preferences and behaviour.
Every firm must organise and distribute a continuous flow of information to its marketing
managers. Companies study their managers’ information needs and design Marketing
Information Systems (MIS) to meet these needs. A Marketing Information System (MIS) consists
of people, equipment, and procedures to gather, sort, analyse, evaluate, and distribute needed,
timely, and accurate information to marketing decision-makers.

Internal Records System

Marketing managers rely on internal reports on orders, sales, prices, costs, inventory levels,
receivable payables, and so on. By analysing this information, they can spot important
opportunities and problems.

The Order-to-payment Cycle

The heart of the internal records system is the order-to-payment cycle. Sales representative’s
dealers and customers dispatch orders to the firm. The sales department prepares invoices and
transmits copies to various departments. Out-of-stock items are back orders. Shipped items are
accompanied by shipping and billing documents that are sent to various departments.

Sales Information Systems

Marketing managers need timely and accurate reports on current sales. Wal-Mart, for example,
knows the sales of each product by store and total each evening. This enables it to transmit
nightly orders to suppliers for new shipments of replacement stock.
Here are two companies that are using computer technology to design fast and comprehensive
sales reporting systems.
Ascom Timeplex, Inc.: Before heading out on a call, sales reps at this telecommunications
equipment company use their laptop, computers to dial into the company’s worldwide data
network. They can retrieve the latest price lists, engineering and configuration notes, status
reports on previous orders, and e-mail from anywhere in the company, and when deals are
struck, the laptop computers record each order, double-check the order for errors, and send it
electronically to Timeplax headquarters in Woodcliff New Jersey.

Montgomery Security: In 1996, San Francisco-based Montgomery Security was in a bind. To
remain competitive in the financial sector, this Nations Bank subsidiary had to find a way for
more than 400 finance, research, and sales or trading employees to share information about
companies whose stock they were considering taking public. The company solved the problem
with Sales Enterprise Software from Siebel Systems. With a common database format, everyone
could share information and keep confidential information secure.

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