Introduction
Marketing information systems refers to the integrated system of storing and processing marketing data and information that is targeted for use in enhancing marketing planning and operations. In that respect, this analysis seeks to demonstrate application of information system in enhancing marketing functions by analyzing a product that faces a problem in the market and describing the type of secondary data that could be available in the business information system. Further, the analysis describes two types of proprietary information that the business may collect for its information system as well as how it can use the available information to solve the problem facing the product.
Discussion
- Pepsi marketing problem
Pepsi is a product by PepsiCo which is a business in the soft drink industry. However the industry has been dominated by the Coca Cola brands hence Pepsi facing stiff competition from the well known Coca Cola brands. In that respect, there is a need to devise suitable strategies in order to enhance market share growth through appropriate product positioning, pricing, distribution and promotion relative to the competitor’s brand. (PepsiCo, 2012)
- Secondary information sources
The secondary information in the business marketing information system is the information that already exists and which has been collected in the course of the business and marketing operations. Such information is useful to the business and varies with the type of marketing data that the system stores and/or processes. Three types of secondary data sources in the system would include:
- Customer database: This source contains information about the business’ customers that may include the customers’ attributes like names, contacts, location, transactions as well as buying records.
- Marketing and operational records: The source may include the point of sale data as well as market operations’ data that relates to the marketing activities.
- Financial records for the business also present important information regarding the marketing results in-terms of market size and sales revenue generated. (Kotler, 1988)
- Necessary proprietary and corporate information
Proprietary and corporate information refers to crucial business information that is secret and which has a competitive edge for a brand hence a need to be protected for the purpose of maintaining trade secrets. However, increased information sharing within the supply chain increases access to such information although the secrets are protected through secrecy agreements in which the involved parties act responsibly in keeping the confidential without disclosing of using it for own benefit. However, such information can be accessed including the competitors’ customer list and their products information. That information is of proprietary nature because customer list defines a business’ accessible target market while products information and specification has the secret of the brand’s differentiation that creates a competitive edge in the market. (Kotler, 1988)
- How information could help solve the problem for Pepsi brand
In a bid to develop a competitive edge over the competitors in order to be increase market share, Pepsi needs to identify suitable market target that it can serve with its differentiated product. In that respect, the PepsiCo would require identification of customer segments depending on several aspects and then chose the suitable target to sell Pepsi product to. In that respect, the business can utilize the customer database to gain customer insights through identification of customer preferences as well as their buying behavior that is reflected in their transaction’s records. (Marshall, 1996)
Further the business can utilize the marketing operation reports to understand the market for the purpose of forecasting the Pepsi’s demand and sales as well as for the purpose of segmenting the market. The operational reports can also be utilized for the purposes of budgeting in order to establish the costs and estimates of marketing the product. Market size identification is also necessary in guiding marketing planning hence the operational reports can be utilized to estimate potential market size for Pepsi. In addition, PepsiCo can get more information about the market through primary sources like conducting a research in the market with application of methods like questionnaires and interviews through which they could identify different customer tastes and preferences. (Marshall, 1996)
With use of the database information in relating to transactions, the business can identify the suitable pricing for Pepsi brand depending on the demand at different prices. Further, product intelligence would require collection of more information including competitors’ products information in order to identify suitable product development and design necessary for capturing of different customer preferences. Finally, the information relating to the product’s distributors as well as sales transactions also acts as a guide in determining suitable promotion strategies that can be used to inform customers about the product and persuade them to buy. (Marshall, 1996)
Conclusion
In light of the discussion, it is clear that marketing information system plays a great role in enhancing marketing planning and operations with businesses having access to key data that can be useful in forecasting and budgeting for marketing purposes as well as act as a guide in product intelligence.
References
Kotler, P. (1988) Marketing Management: Analysis Planning and Control. New York:
Prentice-Hall
Marshall, K. (1996). Marketing Information Systems: Creating Competitive Edge in the
Information age. New York: Fraser Publishing Company.
PepsiCo. (2012). 2012 Sustainability Report. Retrieved from
http://www.pepsico.com/Assets/Download/PEP_CSR12_2011-2012_Sustainability_Report.pdf
