CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In carrying out Marketing Analysis, Evaluation and Distribution, Marketing Managers need timely and accurate information about customers, competitions, dealers and other forces in the market place.  Marion Herper says  that “to manage a business well is to manage its future and to manage the future is to manage information”. (Kolter G. 1988).

During the past century, most companies were small and knew their customers first hand, managers pick up marketing information by starting around people observing them and asking them questions.  In this present century, many factors have increased the need for more and better information management.  As companies expend into national and international markets, they need more information on large and more distant markets.

As income increase and customers become more selective, managers need better information about how customers behave to different products.  Marketing managers need information on the effectiveness of their marketing tools.  In today’s rapidly changing environments, managers need much better up- to date information to make timely decision.

Marketing Information System (MIS) begins and ends with the marketing managers to assess their information needs and also develop the needed information from internal company records, marketing intelligence activities and marketing research process.  In addition, the marketing information system distributes information to managers in the right form and at the right time to help them in marketing planning, implementation and control (Lancaster, k. 1993).

By accessing information needs, a good marketing information system balances the information managers would like to have against what they really need and what is feasible to offer. Sometimes MIS cannot supply all the information managers are requesting for. MIS must therefore, watch the marketing environment and provide decision makers with information they should have to make key marketing decisions.  More so, developing information is required for making day to day planning, implementation and control decision.  The development of information is subdivided into three (3): Internal Records system (Report), Marketing Intelligence and Marketing Research and marketing support system.

Most companies are faced with the problem of declining level of sales; marketing information system as related to industrial products is intended to improve the level of awareness of industrial product. The study seeks to examine the relationship between marketing information system and sales performance of industrial products in Rivers State.

1.2 Statement of the Problem

Good marketing information system provides accurate information on controllable and non controllable factors and consumers, which enhances the effectiveness of decisions made by marketing managers. Unfortunately greater number of Nigerian companies which are struggling to survive in the rapidly changing turbulent global business environment at present, have not realized the value of Marketing Information Systems which provides the holistic view of business strategies.

Absence of relevant marketing information system could cause consumers‟ response to particular marketing programs difficult to predict accurately. Many organizations fail to realize that the survival of their products in the competitive market is a function of their commitment to building and maintaining reliable marketing information system that is all encompassing and all embracing. Thus this study examines the marketing information system on sales performance of industrial products. 

Despite the agreement that marketing research information is a key for business success, there have been few empirical studies that examine the link between marketing information system and sales performance of industrial products. Thus, the current study examined whether or not adoption of MIS has significant impact on sales performance of industrial products in Rivers State.

1.3 Objectives of the Study

The main objective of the study was to examine the effect of marketing information system and sales performance of selected industrial products producers in Rivers State. The specific objectives are as follows:

1.       To examine the extent to which internal records system associate with sales performance of industrial products in Rivers State.

2.       To examine the extent to which marketing intelligence system associate with sales performance of industrial products in Rivers State.

3.       To examine the extent to which marketing decision support system associate -with sales performance of industrial products in Rivers State.

4.       To examine the extent to which marketing research system associate with sales performance of industrial products in Rivers State.

1.4 Research Question

Based on the objectives of the study, the following research questions shall be used to guide the study.

1.       To what extent does internal records system associate with sales performance of industrial products in Rivers State?

2.       To what extent does marketing intelligence system associate with sales performance of industrial products in Rivers State?

3.       To what extent does marketing decision system associate with sales performance of industrial products in Rivers State?

4.       To what extent does marketing research system associate with sales performance of industrial products in Rivers State?

1.5 Research Hypothesis

The following hypotheses were postulated to guide the study.

HO1: There is no significant relationship between internal records system and sales performance of industrial products in Rivers State.

HO2: There is no significant relationship between marketing intelligence system and sales performance of industrial products in Rivers State.

HO3: There is no significant relationship between marketing decision system and sales performance of industrial products in Rivers State.

HO4: There is no significant relationship between marketing research system and sales performance of industrial products in Rivers State.

1.6 Significance of the Study

The significance of this study cannot be over emphasized as it will assist manufacturing organization embarking on marketing information system in establishing a well rooted company through the improvement of sales.

Secondly, other companies would make diligent reference to this work and it will enable them to meet up with contemporary marketing information system that will improve their level of sales.

1.7 Scope of the Study

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

Content Scope: The content scope of this study involves an investigation to ascertain the relationship between marketing information system and sales performance of industrial products. The dependent variable is sales performance, measured by increase sales, market share and profitability. While independent variable is marketing information system measured by internal record system, marketing intelligence system, marketing decision system and marketing research system.

Geographical Scope: The geographical scope of the study is limited to selected producers of industrials products in Port Harcourt which include Cakasa Nigeria Company Limited, D-line producers of oil well Nussle, DTS Global Concept Limited Trans-woji Road, producers and suppliers of Spare-Parts for industrial equipments and Oco Industrial Services Limited, Trans Amadi, specialists in fabrication and installation; civil works; facility maintenance; corrosion control, all in Port Harcourt.

Unit of Analysis: The unit of analysis in this research involves both senior and junior staff of the selected firms at the time of the study. Hence, it is a micro level study.

1.8 Limitation of the Study

The study was limited by the following:

The level of frankness in response to questions by the respondents is quite doubtful.

Finance: Accessing fund for the research work was difficult and this to a great extent limited the quality of research activity.

Time: The time allocated to the research work was not sufficient to give room for further intensive work on the field of study.

Organization Policy: Policies of the organization limited the level of information received. The personnel of the firms were not willing to give information, stating that it was against the organization’s policy.

1.9 Definition of Terms

The researcher took the pains in giving the definitions of some uncommon terms used in this study; this is done in order to make it possible for the project work to have the full knowledge of marketing information system.

The following are some of the related terms used in the study:

Marketing: Marketing is a set of activities that facilitates the exchange of transaction involving “Economic goods and services,” for the ultimate purpose of satisfying human needs.

Information: Information is an acquired knowledge that has meaning.  In most cases, information elicited some sort of reaction or responses on the part of the receiver.

Marketing Research: This may be defined as the objective and systematic collection, recording, analysing interpretation and reporting of information about existing or potential market, marketing strategies and tactics, and the interaction between market, marketing methods and current or potential products or services.

Insurance Policy: In insurance, the insurance policy is a contract (generally a standard form of contract). This contract is between two parties (The insured and the Insurer), The insured also known as the policy holder, which determines the claims which the insurer is legally required to pay, in exchange for payment, known as the premium the insurer  pays for damages to the insured which are caused by covered perils under the policy language.

Marketing Information System (MIS): Is the structure of people, equipment, and procedure to gather, sort, analyse, evaluate and distribute too needed, timely and accurate information to marketing decision makers.