In order for a producer of goods or services to be able to work productively, he needs, among other things, distribution channels for products. That is, it is not enough to produce a product, it must be made what the consumer wants to see and for which he agrees to pay money. The marketing information system is designed to determine the wishes and preferences of consumers, take into account their demand and wishes for quality, price, appearance and so on.
The marketing information system is:
- Internal reporting. As a result of the analysis of the internal activity of the enterprise (stocks of products, movement of goods, advertising costs, etc.), conclusions can be drawn about the profitability of a particular product or service, sales dynamics, distribution channels, and the like.
- Observation of the environment. This is an analysis of changes in the situation in the country, population incomes, actions of competitors, changes in production technologies and others. All this makes it possible to make timely adjustments to the company.
- A marketing information system is also an analysis of one-time measures. For example, how did the increase / decrease in the price of a product or the expansion of the line of one product reflect.
These measures, taken in a comprehensive manner, illuminate events taking place within the company and, of course, in the external environment. This allows you to analyze and identify weaknesses of the enterprise, as well as identify threats that can harm production.
The marketing information system provides a wide opportunity to take into account the needs and requirements of potential buyers, to expand the market and its territory, the transition to non- price competition. Marketing researchers solve the following typical tasks:
- study the characteristics of the market;
- determine its potential capabilities;
- analyze the distribution of market shares among different companies;
- study business activity;
- analyze competitors' products, their advantages and disadvantages.
The tasks of marketing research also include short-term forecasting, as well as a detailed study of price policies and consumer reactions to new products, market opportunities relative to this product and the company's competitive potential. It is necessary to find out who the final consumer of the product under study is and to find out the sales channels for it.
Market research should answer the question: who will buy this product or service, in what quantity and at what price. Companies whose activity is the study of this issue are doing the following work for the customer:
- Find out the preferences of buyers by conducting surveys and interviews;
- the level of demand by consumer segments and by region;
- determination of the most profitable sales markets;
- price analysis: wholesale, retail, contractual;
- recommendations for increasing sales;
- analysis of competitive products;
- study the assortment of similar goods on the market, pricing policy;
- systematize all data and provide recommendations based on the results of these studies.
A detailed analysis of market conditions makes it possible to study the situation from two sides - the general economic and specific goods, their position in the market. And the main goal of this activity is to determine the prospects for the development of the market in the near future, to understand how it is possible to satisfy the constantly changing needs of customers and more efficiently use the capabilities of the enterprise.
Market research provides an opportunity to understand the market situation, the level of market activity, supply and demand, prices and estimated possible sales volumes. All this allows the production to take the most appropriate measures in time to promote the product and combat competition in the market of goods and services.