Marketing Research and Competitive Intelligence

Marketing Research in MIS and DSS: What Is It Good For?

The systematic and objective identification, collection, analysis, and dissemination of information for use in marketing decision-making were some of the terms we used to define marketing research earlier. This information is incorporated into the company’s marketing information system through marketing research and other methods like internal records and market intelligence (MIS).

Information for marketing decision-makers is continuously generated, analyzed, stored and disseminated using a marketing information system (MIS). MIS is defined similarly to marketing research. Besides, MIS provides information continuously rather than relying on ad hoc research studies. The design of an MIS focuses on the responsibilities, style, and information needs of each decision-maker

It is possible to gather information from various sources. Such as invoices, and present it in an easy format to make decisions. An MIS can provide more information than ad hoc marketing research projects. Still, the amount and type of information it provides and how the decision-maker can use it are limited. As a result, the data cannot be easily manipulated because of the rigid structure of the information.

Decision support systems (DSS) were created to provide decision-makers with direct access to databases and analysis models, overcoming the limitations of an MIS. Besides, Decision support systems (DSS) are integrated systems that include hardware, communications network, database, model base, software base, and the DSS user (decision maker) that collect and interpret information for making decisions. Therefore, Marketing research and marketing research process contributes data to the database, marketing models and analytical techniques to the model base, and specialized programs for analyzing marketing data to the software base.

Hence, There are numerous differences between a DSS and an MIS. An MIS’s traditional access and retrieval capabilities are supplemented by DSS modeling and analysis. However, Using a DSS in an interactive mode makes it more user-friendly and allows it to adapt to changes in the surrounding environment and one’s decision-making style. Using “what if” analysis, a DSS can improve decision-making effectiveness and enhance efficiency. Artificial intelligence techniques are used to incorporate expert judgment into DSS systems.

Characteristics of MIS:

•       Structured Problems

•       Use of Reports

•       Rigid Structure

•       Information

•       Displaying

•       Restricted

•       Can Improve Decision Making by Clarifying

•       Raw Data

Characteristics of DSS:

•       Unstructured

•       Problems

•       Use of Models

•       User-Friendly

•       Interaction

•       Adaptability

•       What-If Analysis Can Help You Make Better Decisions

Marketing Research and Competitive Intelligence

Enhancing a company’s market competitiveness by better understanding its rivals and the competitive environment is one definition of competitive intelligence (CI). This procedure is unequivocally legal and morally correct. To do this, information is gathered legally using databases and other “open sources” and ethical marketing research inquiries and then analyzed to determine competitors’ strengths, weaknesses, and intentions.

With the help of CI, senior managers in businesses of all sizes can make well-informed decisions about everything from short-term marketing tactics to long-term business strategies. To be effective, CI must be a continuous process that includes the legal and ethical collection of information, analysis that doesn’t avoid unwelcome conclusions, and controlled dissemination of actionable intelligence to decision-makers. In today’s knowledge-based economy, it is critical to have competitive intelligence. CI helps companies anticipate market changes rather than simply reacting to them.

Although marketing research is critical to collecting, analyzing, and disseminating CI data, the field has grown into its own. Members of the Society of Competitive Intelligence Professionals (SCIP) conduct CI to provide management with early warning of shifting market conditions for both large and small businesses. However, you can learn artificial intelligence and business intelligence .

Marketing Research: Choosing to Engage in It

Marketing research can be useful in various situations, but the decision to conduct research is not automatic. It is better to base this decision on several factors, such as the costs versus benefits, the resources available for research, the resources available for implementing research findings, and management’s attitude toward research itself. Marketing research should only be undertaken if the anticipated value of the information it generates outweighs the costs of conducting the marketing research project. An organization’s ability to make sound decisions is inversely proportional to the degree of uncertainty and risk it faces when deciding this magnitude. In marketing research, formal procedures exist for determining the expected value and costs of the project. However, in most cases, information is more valuable than the costs it entails; in some cases, the opposite is true. For example, a pie manufacturer wanted to know why people bought pies at convenience stores.

There is a finite amount of everything, especially time and money. Nonetheless, a project should probably not be undertaken if sufficient resources (time or money) are unavailable. Doing no formal project is preferable to undertake a project that compromises research integrity due to a lack of funding. If a company lacks the resources to put marketing research recommendations into action, this can also be problematic. If that is the case, it may not be worth the effort to conduct the research. It’s also possible that the project report will gather dust if management doesn’t have a positive attitude toward research. However, there are some exceptions to this rule.

When I worked on a project for a retail chain, the company’s management was opposed to it, but the parent company commissioned and funded the research. However, despite the objections of the store management, the parent company implemented my recommendations. This reflected negatively on the store chain.

In other cases, conducting market research may be counterproductive. As a result, the value of any information from such a project decreases dramatically. It is not recommended unless the information sought already exists within the organization or a decision has been made to conduct the research for political purposes. Moreover, For those who decide to use marketing research as a method of gathering specific data, they can also turn to market research suppliers and services.

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