Concept of Market Information
Globalization has brought rapid changes in the business environment. Competition, sociocultural changes, demographic profiles are rapidly changing. Marketers are therefore facing difficulties to satisfy consumer needs and wants properly. As companies expand their geographical market coverage, their managers need more information more quickly. As incomes improve, buyers become more selective in their choices of goods. To predict buyers’ responses to different features, styles and other attributes sellers must turn to marketing research. As sellers increase their use of branding, product differentiation, advertising, and sales promotion, they require information on the effectiveness of these marketing tools. Product must carry necessary attributes that are desired by consumers. Technological advancement further puts challenges to marketers. Nowadays, marketing is like technological war. Technological environment is most rapidly changing.
These changes have created lots of complexity in marketing decision making. To plan, formulate and implement the marketing program effectively, knowledge regarding environmental forces is compulsory. All marketing decisions are based on information. Factual presentation of changes occur in market is called market information. Marketing managers need information to respond to environmental changes.
The marketing environment is changing at an accelerating rate. The shifts are dramatic from local to national to global marketing, from buyer needs to buyer wants, from way of competition to product distribution. Marketers are growing and expanding every time. They need more information more quickly. any numerical facts, records, documents related to past and present which can be used in future decision making that is related to market is known as market information.
Meaning of Data
Data are raw information which needs further processing for analysis and use in business decision. It is the Input part of the information. It is the combination of facts, estimates, and opinions. Data are facts expressed in the form of symbols such as text, number alphabets, symbols, diagrams, videotapes, photographs, audio, etc. that can be collected. Data can rarely be used for the end purpose. It represents the status of elements in the environment or may describe the event. Without data no research can be done, no methodology can be utilized to bring the conclusion.
Meaning of Information
Information is processed data. It is the knowledge derived from the processing and analysis of data. The knowledge extracted from the data after sorting, classifying, calculating, evaluating, and summarizing the data is called information. Information is a sequence of symbols that can be interpreted as a message. Information is the raw material for decision-making. Information is the most useful form of data since it relates especially to the need of managers or marketers.
The processed data are known as information. The process of converting data into information involves data collection, sorting, classifying, computation and summarization.
Data and information are highly interrelated. Data is not usable for decision making if it is not processed into information and information becomes applicable to decision making only if it is based on real-time information.
Need of Market Information
Information is power. It is essentially required to formulate marketing mix planning. Market information delivers information about the internal and external environment of the organization. Information of internal environment highlights strength and weakness and information of external environment highlights opportunities and threats of the organization, Information provides a clear and concise picture of the market which helps to forecast the future is present.
To implement the planning human, technical, logistic, and financial resources should be well allocated. To allocate those resources effectively, tactful data and information are required So, without data and information no planning can be implemented properly.
A marketer or producer has to keep on monitoring and evaluating the performance Of marketing programs. Since marketing is a dynamic field, it keeps on changing. It doesn’t always give the result as we plan so, monitoring and evaluation of marketing performance are essential. According to the conclusion of monitoring and evaluation, necessary adjustments should be made. Monitoring evaluation and adjustment, i.e. controls are the results Of data and information. Thus, data and information are essential for controlling marketing activities.
4. Environmental adaptation
Environmental adaptation is getting fit in the environment. The market consists of several factors, which keep changing. For success in the market, a marketer should bring changes in the marketing activities according to the changes in the marketing environment. If a marketer is not capable to bring changes, the marketer will face losses. Thus, the marketer should have an adequate amount of data and information to cope with changing environment.
5. Helps in market segmentation
The primary step in the market segmentation process is a survey. Only after the survey, the further step of market segmentation can be performed and a survey is conducted for data and information. Thus, we can say that data and information are essentially required for market segmentation.
6. Increase efficiency
An adequate amount of data and information help to allocate resources properly. If the resources are properly allocated, there will be less wastage of physical, mental, financial, and human resources. It helps to increase organizations’ productivity and efficiency.
7. Decision making
Information and data provide standards for decision-making. Decision-making is the correct choice among alternatives. The information helps to evaluate the alternatives. It assists decision-makers by providing alternatives and making the good evaluations. All these activities are carried out within the framework of information.