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The management process: 1. Planning 2. Organization 3. Implementation- Execution 4. Coordination 5. Control and evaluation
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MARKETING INFORMATION SYSTEM Internal information system: e.g. Accounting, sales reports etc. Multimedia data Data warehouses Decision support systems
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MARKETING RESEARCH Define the problem Analyze the situation Gather problem specifc data Interpret the data Solve the problem
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Three distinct types of information are generally supplied to marketing managers for decision making purposes; 1. Recurrent information, 2. Monitoring information and 3. Requested information
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Recurrent information is information that is provided on a periodic basis from periodic reports. Market or customer shares, advertisement watch rates, product or service ratings, price fluctuations, exchange rates, customer complains on product basis are some examples of this kind of information that managers receive on a weekly, monthly, quarterly or annual basis.
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Monitoring information is derived from the regular scanning of certain sources. For example, a marketing manager may desire a summary of articles on competition for a specific industry or may want to learn about new product launches. Market trends, life style changes are good examples of monitored information.
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Market is an aggregate of people who, as individuals or organizations, have needs for products in a product class and who have the ability, willingness, and authority for such product. Despite the unbearable desire to buy a Ferrari, a young university student cannot find a place in Ferrari market since he/she has no economic power to buy it.
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A market segment consists of a group of customers who have similar set of needs and wants. For car market, small sized, low cost, basic transportation automobiles may create a segment for students who are willing to buy such a car.
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The commercial interaction between the firm and its customers may offer a great deal of information including (Lancester and Massingam, 2011): Total sales or sales volume over time, Regional sales, Sales volume by market segment, Sales by trade category, Sales volume by type of channel of distribution, Pricing information, Communication mix information, Sales representatives’ records and reports, Inquiries or complaints received.
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Research aimed at solving a specific, pragmatic problem is called as applied marketing research.
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Effective marketing research involves five steps; 1. Defining the problem, 2. Developing a research plan, 3. Collecting problem specific data, 4. Interpreting the data and solving the problem, 5. Decision making.
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In some occasions, big data is defined as such: massive data files that can be obtained from both structured and unstructured databases. Big data entails: • Technology: e.g., storage, computation power, • Analysis: e.g., pattern identification for commercial, economic, social, technical claims, and • Mythology: the widespread belief that ‘big data’ offers a higher level of generating valuable insights
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There are some shortcomings of using external data for decision making purposes such as; 1. The necessary data may not be available, or it may need some transformations. 2. The integration with existing company data sources or information systems may be problematic. 3. Importing data can be time-consuming. 4. It may be hard to ensure data compatibility. 5. It may require manual work-flow and data processing. 6. It may be difficult to validate data formats
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Customer insights are fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships.
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A brief and comprehensive definition of CRM is defined as “A systematic process to manage customer relationship initiation, maintenance, and termination across all customer contact points in order to maximize the value of the relationship”
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Point of Sale (POS) systems is a system for processing customer orders at a point where the product is physically delivered to customers. Here are the other terms used for payments, delivery and transactions; Transaction Processing Systems (TPS) Electronic Cash Registers (ECRs) Electronic Point of Sales (EPOS)
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one copy is sent to the vendor, one copy for the accounting process, one copy for the warehouse for receiving the materials, and the last copy is for the purchasing department’s files.
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The purposes of payroll processing system are to calculate the pay due employees, and to maintain cumulative earnings records.
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Accounting is an information system that collects, records, classifies, and summarizes financial transactions of a business according to generally accepted accounting principles and analyses and reports them to the information users.
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Accounting information system deals with financial transactions which affect the assets, liabilities and owners’ equity of a business and preparing financial statements and reports related to the business where finance information system deals with funding the assets, finding appropriate resources for the assets.
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• Analysing inventories • Preparing purchase orders • Receiving goods • Making the payments • Purchase returns and allowances • Preparing reports
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It shows the parties(buyer and seller) involved in the transaction. It shows the date of the transaction. It shows the subject(for example the company sold laptop computers) of the transaction. It shows the amount(for example, 15 laptop computers) of the transaction It shows the amount(15x3.000T=45.000T + VAT) of the transaction.
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Preparation of the bill shows a sale transaction has occured.
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This happens because of two reasons(Boockholdt, 1999, p.689): • Payroll processing systemwithhold amounts for deductions and taxes and summarize these in cumulative earning reports. These withholding and reportings are unnecessary when processing purchases transactions in expenditure cycle. • Payroll processing system produces payrolls for the employees. Establishing a separate system for payrolls allows greater control over these transactions.
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The common events that take place in revenue cycle are: • Receiving customer order • Analysing the credit approval for the customer • Viewing inventories • Accepting order • Preparing products for shipment • Billing • Recording and monitoring receivables • Collecting cash • Sales allowances and sales returns • Preparing reports
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