THE ROLE OF MARKETING INFORMATION SYSTEM IN ENHANCING SALES PERFORMANCE OF INDUSTRIAL PRODUCTS

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ABSTRACT

This study examines the role of marketing information system in enhancing sales performance of industrial products. The objective of the study is to ascertain the influence of marketing intelligence on sales performance and to assess the significant of internal record and marketing research on sales performance. Descriptive survey research design was employed for the study. A structured questionnaire was used to source data from a sample of 120 staff of Agip Oil Company comprising marketing, administrative, production and finance department. I-tail t test was used as the research instrument, which yielded (3.5006) co-efficient. Two hypotheses were formed and tested, using Pearson correlation product moment co-efficient. Findings show that marketing information system influence sales performance of Agip Industrial products(crude oil) through the following variables: marketing intelligence, internal record and marketing research. It was recommended that Agip Oil Company must work tomake the MKIS unit, administratively and financially separate and independent from marketing department and give it a prominent place in the organizational structure to be able to perform its function without association with themarketing management or other administration in the company.

CHAPTER ONE

1.0     INTRODUCTION

1.1     BACKGROUND OF THE STUDY

For any organisation to survive, be it profit making or non-profit making organisation, it requires information. Information serves as the bedrock of any organisation. This is because every organization needs information to keep its activities going. Every organisation with properly stated objectives needs timely relevant and accurate information so as to aid them in making necessary decisions and implementing them to avoid social and administrative disruptions or conflicts. It is the responsibility and obvious role of the Marketing Information System (MKIS) to provide the needed information.

Information system had become one of the important means used in marketing nowadays; it is the most effective tool in marketing through helping in the sales of organizations’ products, decision-making as well solving all marketing problems. Information systems can link the organizations. Policy and organize them in order to facilitate the marketing decision towards products or customer (Pride 1989).

The success of marketing administration in planning and identifying marketing opportunities is based highly on the availability of internal and external information. Therefore, every organisation must organize and distribute the flow of information for marketing management and study their needs to provide them with the needed information (Wober, 2006). Today, it is necessary to obtain successful marketing information systems to be able to execute many marketing activities such as attracting customers, evaluating services as well as advertisement and promotion (Abu-qahf, 2002).

Marketing information system is a “system in which marketing data is formally gathered, stored, analyzed and distributed to managers in accordance with their informational needs on a regular basis” (Kotler and Keller, 2006). The online business dictionary defines marketing information system as “a system that analyzes and assesses marketing information, gathered continuously from sources inside and outside an organisation (Pride, 1989).

Marketing information system plays an important role in raising the efficiency of organization’s sales performance in highly competitive markets, through providing the necessary information for the various administrative levels. Therefore, the success of marketing process depends to a large extent on the marketing information system and the success in each elements of this system. Some marketing managers fails in their dealings in the areas of implementation of accurate information interpretation of data, recruitment of professional sales force, proper scanning of business environment and the ability to define alternatives. Computer database has become the major source of marketing information in many organizations today. Therefore, marketing managers must be fast in adopting this new trend in order to gather adequate information about both potential and current customers.

1.2     STATEMENT OF THE PROBLEM

There are many challenges facing the role of marketing information system in enhancing sales performance of industrial products. They are as follows:

  1. Poor implementation of marketing information: Some marketing managers implements information that will not improve sales performance of an organization.
  2. Marketing managers of some organization find it difficult to interpret data that will increase sale of such organization. Sometimes they misinterpret adequate data to be another thing which frustrate sales department of the organization.

iii.      Recruitment of unprofessional sales people: It is obvious that some sales people are not professional in carrying out their obligations. For instance, some could not be able to give proper information about the company’s product as well as the image of the organization.

  1. Inability to scan the market/business environment: Some marketing managers and the entire organisation believe in production orientation instead of sales orientation and marketing orientation. This discourages customers and negatively affect the enhancement of sales performance in an organization.
  2. Computer illiterate: Some marketing personnels are still computer illiterate preventing them from using information technology (database) to generate adequate and current information about customers.
  3. Cost of gathering information: The cost of gathering marketing information is very expensive for most of the organizations.

1.3     OBJECTIVE OF THE STUDY

  1. To evaluate the role of marketing information system in enhancing sales performance of industrial product.
  2. To properly assess marketing information in a business organization before implementation.

iii.      To increase sales volume through the recruitment of professional sales force.

  1. To increase firm’s market share through proper scanning of business environment with the help of information technology.

1.4     RESEARCH QUESTIONS

  1. What are the roles of marketing information system in enhancing sales performance of industrial product?
  2. What are the effect of proper implementation of marketing information system in an organization?

iii.      Does proper scanning of business environment increase firm’s market share with the help of marketing information system?

1.5     RESEARCH HYPOTHESES

H0: Marketing information system does not enhance sales performance of industrial products.

H1: Marketing information system enhances sales performance of industrial products.

1.6     SIGNIFICANCE OF THE STUDY

The study is of great benefit to all business organizations, be it profit or non-profit oriented business organization, to keep the activities of its business organization moving on because every business organization needs timely, relevant and accurate information, so as to avoid them in making necessary decision and implementing them to avoid social and administrative disruptions or conflicts. It is of a great significant to marketing managers, to aid them carry out its marketing functions effectively. It is also beneficialto every individual since marketing involves human activities directed at satisfying needs and wants through exchange process (Kotler, P. 1980). Therefore, every human being need accurate and vital marketing information to achieve its stated objectives. Government of all levels needs vital and accurate marketing information for proper budget making economic growth and fight against inflation as well as economic recession. The study is relevant to scholars who research on similar topics.

1.7     SCOPE OF THE STUDY

This study centres on the staff of Agip Oil Company in Port Harcourt. Its primary focus is on the role of marketing information in enhancing sales performance of industrial product, such as crude oil in Agip Oil Company. The study also covers marketing information that enhance marketing activities.

1.8     LIMITATION OF THE STUDY

Below are the limitations of the study:

Finance, time factor and the inability of some relevant business organizations to release vital information.

Finance: The researcher was not having enough money to carryout the study.

Time Factor: Time frame was another major constrain of the study. The researcher was too occupied with some other school activities, such as class assignments, tutorial classes, class test and examination preparatory classes which did not give much time to carry out the study.

Inability of Firms to Release Relevant Information: Different business organizations find it difficult to release vital information to the researcher, which …….challenges in completing the questionnaire at the required time.

1.9     DEFINITION OF TERMS

ROLE: The function position that somebody as or expected to have in an organization, in society or in a relationship.

MARKETING: Marketing is human activities directed at satisfying needs and wants through exchange process.

INFORMATION: This is facts or details about somebody something.

MARKETING INFORMATION SYSTEM: This is a system in which marketing data is formally gathered, stored analysed and distributed to managers in accordance with their informational needs on a regular basis.

SYSTEM: An organized set of  ideas or theories or a particular way of doing something.

ENHANCE: Something to increase or further improve good quality, value or status of somebody or something.

SALES: An act or the process of selling something.

PERFORMANCE:The act of performing a play, concert or some other form of entertainment.

INDUSTRIAL PRODUCTS: Are goods sold primarily for use in producing other goods or rendering services or running of a business.

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