Introduction
More and more, companies are faced with the need to
control an ever larger and rapidly changing marketing
environment. The information processing requirements
of companies are expanding as their competitive
environment becomes more dynamic and volatile (Child,
1987). To handle the increasing external and internal
information flow and to improve its quality, companies
have to take advantage of the opportunities offered by
modern information technology (IT) and information
systems (IS). Managing marketing information by means
of IT has become one of the most vital elements of
effective marketing. By collecting and sharing marketing
information and by using it to promote corporate and
brand image, IS offer new ways of improving the internal
efficiency of the firm. IS allow dynamic marketing
communication between personnel in corporate planning,
accounting, advertising and sales promotion, product
management, channels of distribution and direct sales.
These systems also relate to marketing strategy,
marketing planning and the entire marketing
management process.
IS span the boundary between the organization and its
environment by connecting the customers and partners to
the firm’s warehouse, factory and management. Today
interorganizational relationships and interorganizational
information systems (IOS) have become a common form
for processing transactions and there are many examples
of IOS that create electronic linkages between firms (see
Bakos, 1991; Cash and Konsynski, 1985).
IT has a key role in new flexible organization forms such
as strategic partnerships and cross-functional networks.
New organizations will be designed around business
processes rather than functional hierarchies (Rockart and
Short, 1989) and we will face the need for new kinds of IS
in marketing. In fact, IS will be the cornerstone of new
approaches to marketing. Management and systems
designers should therefore be better aware of the avenues
available to integrate marketing and management
processes in new innovative ways.
The objectives of this empirical survey among Finnish
wholesale companies are threefold. First, we evaluate
which information included in marketing information
systems (MkIS) has been important in providing support
for the marketing management process. Second, we
analyse what improvements in marketing and sales have
been realized by implementing MkIS to support the
marketing management process. Third, we investigate, in
more detail, what operational MkIS sub-systems have
contributed to improved effectiveness for implementing
and controlling marketing efforts.
In order to answer these questions we first develop the
analytical framework, and then we describe the survey of
50 marketing organizations in Finland. Later, we present
the findings of the analyses before discussing the results
and their practical implications.
MkIS and marketing management process
The concept of MkIS
The concept of IT-based marketing information systems
(MkIS) has been with us for many years. During the last
three decades many authors have presented models for
MkIS (see literature review, Talvinen, 1995). Based on this
literature review from the early days of MkIS to the
present we reconceptualized the MkIS by dividing them
into two main groups by use and users – management
MkIS and operational MkIS. Those management MkIS
can be classified as marketing management and decision-
18 MARKETING INTELLIGENCE & PLANNING 13,1
MkIS support for the marketing
management process:
perceived improvements for marketing management
Jari M. Talvinen and Timo Saarinen
Investigates the importance of Marketing Information Systems (MkIS) in the marketing management
process
Marketing Intelligence & Planning, Vol. 13 No. 1, 1995, pp. 18-27 © MCB
University Press Limited, 0263-4503
The authors are deeply grateful to Professor Markku
Sääksjärvi of the Helsinki School of Economics and Business
Administration for his invaluable support and critique in this
endeavour.
making-oriented systems. Correspondingly, operational
MkIS can be classified as operational, sales and
marketing process-oriented systems.
The first era (1970-1980) in MkIS development was to
provide standardized reports with multiple sources of
information to multiple users within large firms (Choffray
and Lilien, 1986). MkIS were seen as tools especially for
analysing internal and external effectiveness of
marketing and for controlling marketing activities and
environment. From the marketing management point of
view, MkIS were tools for managing marketing
information, marketing research, marketing planning,
modelling marketing transactions, decision making in
marketing, budgeting, analysing different courses of
action, and for reporting and control (Higby and Farah,
1991; Li et al., 1993; Morris et al., 1989; Vandermerwe and
Carney, 1987).
In modern marketing thinking, MkIS are not regarded
simply as systems limited to management. Moriarty and
Swartz (1989) also included operational use and sales
activities into the concept of MkIS (they used the term
marketing and sales productivity tools, MSP) and have
proposed four tasks typical for sales productivity
systems: salesperson productivity tools, sales and
marketing management, direct mail (or database
marketing, DBM) and telemarketing. Salespersons use
these productivity tools for planning and reporting of
sales activities, reporting of expenses, checking
inventory and order status, managing distributors and
accounts, and tracking leads. In addition, information
gathering is considered to be an essential function of the
entire marketing organization. Sales representatives
especially may get access to customer information that
would not be available from any other source (Crace and
Pointon, 1980). Correspondingly sales and marketing
management use these systems for sales reporting,
designing and managing sales territories, analysing
marketing and sales programmes.
Shaw and Stone (1988) have defined database marketing
(DBM) as “an interactive approach to marketing, which
uses individually addressable marketing media and
channels (such as mail, telephone, and the salesforce) to
extend help to a company’s target audience, to stimulate
demand, to stay close to them by recording and keeping
an electronic database of customer, prospects and all
communication and commercial contacts, to help improve
all future contacts and to ensure more realistic planning
of all marketing”. With DBM, the MkIS database can be
used to segment a company’s markets and to record
responses and reactions of customers and prospects to
company initiatives (see literature review on DBM,
Petrison et al., 1993). In some companies, telemarketing (a
version of DBM, in which the marketing channel is the
telephone) has become an essential part of the marketing
campaign process and companies’ MkIS.
MkIS and the marketing management process
The objective in MkIS development has been to
implement MkIS which cover almost all management
activities in the sales and marketing functions, and to
produce timely and accurate information to be used in
decision making. According to Martell (1988), MkIS can
be seen as a part of the so-called management
information systems (MIS) concept, which deals in
particular with marketing strategy and operations. This
MIS approach is suitable for traditional bureaucratic
hierarchical organizations which, however, will be
complemented increasingly by new flexible organization
forms, such as strategic partnerships and networks.
The MIS approach can be misleading, since with this kind
of thinking, developers may omit important issues –
company strategy, and business and marketing
processes. Business processes consist of a set of logically
related tasks performed to achieve a defined business
outcome (Davenport and Short, 1990). The marketing
management process is defined by Kotler (1994) as a
process, which “consists of analysing market
opportunities, researching and selecting target markets,
developing marketing strategies, planning marketing
tactics, and implementing and controlling the marketing
effort”.
The traditional organizational principles of functional
hierarchies and the Tayloristic principle of task
specialization have led to many islands of optimized
activities that are hardly linked. “Each organizational
sub-unit within the process had optimized its own IT
application, but no single sub-unit has looked at (or was
responsible for) the entire process” (Davenport and Short,
1990).
Earlier it was believed that achieving maximum
efficiency in single activities would improve the whole
process. However, this is not necessarily true – while the
efficiency of a specific task may be improved, the overall
effectiveness of the process may suffer (Wilkinson, 1991).
Therefore, the whole process with all its activities and its
linkages needs to be considered.
Based on this fact the basis for most marketing and
management-related IS development, subject to
management needs, should be company strategy and
redesigned management processes, particularly the
marketing management process with the help of
sophisticated IS. MkIS offer an effective way to coordinate
the vertical process of marketing management
and control between several user groups. The
hierarchical division of tasks can be restructured with the
help of effective MkIS, and by providing at the same time,
sophisticated new ways to transfer marketing
information between different vested interests, e.g. all
levels of management and sales personnel.
19MKIS SUPPORT FOR THE MARKETING MANAGEMENT PROCESS
Improvements of MkIS usage
The objective of this section is to summarize the results of
prior studies concerning improvements of MkIS usage
and above all to relate the authors’ research ideas to
earlier studies (Talvinen, 1993). Expectations of typical
potential improvements derived from marketing
literature are summarized in Table I.
The improvements are classified into three groups:
improvements in marketing, improvements in sales and
overall organizational improvements. Marketing
literature abounds with examples of successful MkIS
implementations. According to earlier research the
impact of MkIS usage is remarkable. For example a
Harvard Business Review article by Moriarty and Swartz
(1989) covered several examples of well-known early
adopters of MkIS that had achieved 10 to 30 per cent
increases in sales and return on investment often
exceeding 100 per cent. They maintained that these
systems could automate the work of a single salesperson,
a single marketing activity like direct mail, or a
company’s entire marketing and sales operations.
However, even if the concept of MkIS is mature and well
known, there is little systematic empirical knowledge
available of the realized improvements of MkIS usage.
The above research findings, however, present individual
success stories but what is the reality of perceived
20 MARKETING INTELLIGENCE & PLANNING 13,1
Table I. The potential improvements of MkIS usage according to earlier research
Improvements of MkIS usage Authors
Marketing
Cost savings from marketing programmes Bovitz and Dunn (1987), Burns and Ross (1991), Graham (1987),
Fletcher (1982), Moriarty and Swartz (1989), Mayros and Dolan (1988)
Management of marketing programmes Moriarty and Swartz (1989), Townend (1989)
Improved decision making Fletcher (1982), Jobber and Watts (1988), Moriarty and Swartz (1989),
Morris et al. (1989), Townend (1989)
Improved targeting of marketing activities Moriarty and Swartz (1989), Bovitz and Dunn (1987), Townend (1989),
Burns and Ross (1991)
Improved analysing of marketing activities Graham (1987), Mayros and Dolan (1988), Bovitz and Dunn (1987),
Townend (1989)
On time marketing records Graham (1987), Morris et al. (1989)
Improved marketing planning Mayros and Dolan (1988)
Sales
Cost savings from sales programmes Bovitz and Dunn (1987), Burns and Ross (1991), Graham (1987),
Fletcher (1982), Mayros and Dolan (1988), Moriarty and Swartz (1989)
Improved sales Graham (1987), Ferreira and Treacy (1988), Moriarty and Schwartz (1989)
More efficient sales time Graham (1987)
Improved forecasting and follow-up of sales Graham (1987), Ferreira and Treacy (1988), Fletcher (1982),
Mayros and Dolan (1988), Morris et al. (1989)
Better prepared sales visits Bertrand (1988)
Improved sales sensitivity Bovitz and Dunn (1987), Mayros and Dolan (1988), Morris et al. (1989)
Organizational improvements
Improved internal information volume and Ferreira and Treacy (1988), Fletcher (1982), Jobber and Watts (1988),
communication Mayros and Dolan (1988), Morris et al. (1989)
Improved customer information Ferreira and Treacy (1988), Moriarty and Swartz (1989)
Improved customer satisfaction Graham (1987)
Organizational time savings Jobber and Watts (1988)
Reduced working pressure Jobber and Watts (1988)
Reduced paper work, reporting Bertrand (1988)
improvements of MkIS usage overall? For example, what,
if any, are the improvements for marketing management
of MkIS usage in the sales and marketing functions?
Research framework
Based on the above discussion we constructed a two-stage
framework for analysing MkIS information content, its
support for five complementary steps in the marketing
management process and the perceived improvements of
MkIS usage. The overall framework (Figure 1) is focused on
studying information content relevant to each step of the
marketing management process. It also makes it possible to
relate MkIS support for the marketing management process
to the perceived improvements in marketing and sales.
A second, more detailed framework concentrates on
operational MkIS sub-systems which would be important
for improving effectiveness of the fifth step in the
marketing management process, implementing and
controlling marketing efforts, and subsequently yielding
improvements for the organization (Figure 2). We have split
operational MkIS into the four sub-systems presented by
Moriarty and Swartz (1989) and referred to earlier. The fifth
step consists of tasks like developing a marketing
organization, staffing it, assigning responsibilities for
implementing all the activities in the plan, monitoring the
plan’s performance, and taking corrective action when it is
warranted (Kotler, 1994).
There were two major reasons to concentrate on this
specific step of the marketing management process. First
there is a lack of empirical knowledge on the relationship
between the marketing management process in general but
especially between this step and the perceived impact of the
operational MkIS usage. Second, not even the best plans
work without efficient implementation, monitoring and
corrective actions when needed. Implementing and
controlling marketing efforts is a most critical step in this
process – a moment of truth.
Empirical survey
Research methodology
This article is part of a larger and cumulative research
project on IS in marketing at the Helsinki School of
Economics – other reports from the project include
Talvinen (1993, 1995) and Sääksjärvi and Talvinen, 1993).
The aim has been to obtain an overall picture of MkIS
usage in Finland and to gain new insights on the efficient
use of MkIS in practice. We first conducted a mail survey
in Finnish wholesale companies followed by in-depth
case studies in two organizations. In the mail survey our
unit of analysis was senior marketing management and
in the case studies the entire marketing organization.
The business sector chosen for our empirical studies is
wholesale companies, since according to earlier research
in Finland, wholesale companies have invested much
more to build up MkIS than other sectors. It is also more
likely that within the same business sector, systems are
more likely to be similar. By standardizing and by
focusing the study only to one business sector, the results
are likely to be meaningful and reliable.
This article is based on data collected in a mail survey.
These analyses of empirical data are based on simple
statistical techniques and original questionnaire items. We
wanted to avoid the shortcomings of using constructed
variables and sophisticated multivariate techniques
inherent in this study due to the relatively small sample
size. We conducted the same analyses using constructed
variables and sophisticated multivariate techniques and
the results were the same as reported here.
21MKIS SUPPORT FOR THE MARKETING MANAGEMENT PROCESS
Analysing market
structure
and behaviour
Researching and
selecting market
opportunities
Developing
marketing
strategies
Planning
marketing
tactics
Implementing
and controlling
marketing efforts
q Overall
q Sales
q Marketing
q Organizational
Information
contents
Perceived
improvements
of MkIS usageMkIS
Marketing management process
Figure 1. Overall framework of the study
Salesperson
productivity system
Direct mail and
fulfilment system
Telemarketing
system
Sales and marketing
management system
Implementing
and controlling
marketing efforts
Operational MkIS
Figure 2. Detailed framework of the study
The questionnaire
A seven-page questionnaire was designed to gather
information on existing MkIS and the marketing
managers’ perceptions of the improvements of MkIS
usage. The questionnaire consisted almost entirely of
forced choice, seven-point scaled questions. Only the
extreme points of each scale were labelled. Increments of
these scales can thus be regarded as being equal. After
test interviews the questionnaire was sent to 156 senior
marketing managers in Finnish wholesale companies. To
improve the response rate, companies were guaranteed
anonymity. Respondents were also offered an executive
summary of the results. A total of 56 usable
questionnaires was returned within one month resulting
in a 32.2 per cent response rate. Six of the responses had
to be dropped from the survey, since the companies did
not use any MkIS. Thus we had 50 usable cases for our
analyses. This was felt to be acceptable.
Variables used
Information content of MkIS. Empirical studies of the
information content of MkIS are scarce. However, based
on our prior studies and other studies that have discussed
MkIS use (see Higby and Farah, 1991; Li et al., 1993;
McLeod and Rogers, 1982, 1985; Moriarty and Swartz,
1989; Morris et al., 1989; Vandermerwe and Carney, 1987),
we derived potential variables describing MkIS
information content. After test interviews and on the
basis of the literature review, our final instrument
consisted of 12 categories of different types of
information that can be included in a MkIS.
Correspondingly in our mail survey, we asked what
information components of those 12 categories are
included in their own MkIS. The variables with means
and standard deviations are shown in Table II.
The marketing management process. To study MkIS
support (service) for the marketing management process
we divided this process into complementary steps as
presented by Kotler (1994). As described above, he
distinguishes five integrated steps in the marketing
management process: analysing market opportunities,
researching and selecting target markets, developing
marketing strategies, planning marketing tactics, and
implementing and controlling the marketing effort. By
using these five integrated steps we asked senior
marketing managers in our mail survey, how MkIS
support them in the different steps in the marketing
planning process. We used the Finnish word for
“planning” because in test interviews the Finnish term
“management process” was not clearly understood as a
process from strategic level analyses to implementation
and control – the “planning process” carried the right
meaning. Correspondingly these variables with means
and standard deviations are shown in Table III.
MkIS sub-systems in implementing and controlling
marketing efforts. In order to study what operational
MkIS sub-systems have contributed to improved
effectiveness of the fifth step in the marketing
management process, implementing and controlling
marketing efforts, we divided operational MkIS into four
sub-systems i.e. salesperson productivity tools, sales and
marketing management systems, direct mail and
telemarketing systems proposed by Moriarty and Swartz
(1989) referred to in Figure 2. We asked for the marketing
managers’ perceptions of the overall usage of these four
sub-systems within their marketing organizations.
Operationalized variables with means and standard
deviations are shown in Table IV.
Perceived improvements of MkIS usage. We based our
evaluation on the marketing managers’ perceptions. We
measured them by two types of variables. First we
measured the overall perceived improvements in
marketing management of MkIS usage. In addition, we
divided the improvements into three categories:
22 MARKETING INTELLIGENCE & PLANNING 13,1
Table II. Variables measuring information content of the
MkIS (scale 1 = no information available; 7= a lot of
information available)
Standard
MkIS information content Mean deviation
Customer (end-user) information 4.96 2.07
Potential customer (prospect) information 3.44 1.92
Distributor/dealer information 4.26 2.12
Product information 4.94 2.06
Intelligence/market research information 3.62 1.86
Marketing planning information 4.62 1.58
Sales follow-up information 5.98 1.33
Overall marketing effectiveness information 2.82 1.60
Sales leads management information 2.74 1.85
Market information analysis 4.12 1.89
Distribution information 4.30 1.89
Competitor information 2.84 1.94
Table III. Variables measuring perceived support of MkIS in
the marketing management process (scale 1 = supported very
badly, 7 = supported very well)
MkIS support for the marketing Standard
management process Mean deviation
Analysing market structure and behaviour 3.90 1.64
Researching and selecting
market opportunities 3.78 1.75
Developing marketing strategies 4.22 1.66
Planning marketing tactics 4.64 1.64
Implementing and controlling
marketing efforts 4.58 1.65
improvements for marketing, improvements for sales and
organizational improvements. This measurement
instrument made it possible for us to test all the potential
improvements of MkIS usage presented in Table I. These
variables with means and standard deviations are shown
in Table V.
Research findings
The average number of personnel in the studied
companies was 1,597 ranging from 35 to over 24,000
employees. On average 170 people (11.5 per cent) worked
in marketing and sales functions and about 18 (1.1 per
cent) in the IS departments. The average annual net sales
of the companies was US$768 million per year ranging
from 7.3 to over US$8,477 million. From the 50 final
respondents, 22 were marketing managers and 28 were
marketing directors.
First, we report the results analysing the overall
framework of the study followed by the analyses of the
more detailed framework.
The overall framework of the study
Information content of MkIS. Table II gives descriptive
statistics of the variables measuring the information
content of the MkIS. As the means show, the MkIS
studied usually contained rather more sales follow-up,
product, customer (end-user, consumer) and marketing
planning information. However, information on tracking
and forwarding sales leads, competitors and overall
marketing effectiveness available through MkIS was
limited.
The marketing management process. Table III gives
descriptive statistics of the variables measuring the
perceived support of MkIS usage in the marketing
management process. The means indicate that MkIS
support all five steps in the marketing management
process and that it increases slightly with each step
towards implementation and controlling of the marketing
efforts.
Perceived improvements of MkIS usage. Table V shows
the variables measuring the perceived organizational
improvements of the MkIS and their means and standard
deviations. On average, the most significant perceived
improvements of MkIS usage in marketing are related to
improved marketing planning and decision making. In
sales the perceived improvements were related to better
sales performance and improved forecast and follow-up
of sales. Means of increased volume of information,
improved customer knowledge and timesaving were
rather high.
Information content and perceived support of MkIS in the
marketing management process. The correlations
between information content and perceived support of
MkIS in the marketing management process are
presented in Table VI. Many of the correlations are
significant, but it seems that information content of the
studied MkIS is focused mainly on improving
effectiveness of marketing planning, not so much
implementation and controlling of the marketing efforts,
i.e. operational marketing and sales activities.
23MKIS SUPPORT FOR THE MARKETING MANAGEMENT PROCESS
Table V. Variables measuring the perceived improvements of
MkIS usage (scale 1 = no improvement; 7= a lot of
improvement)
Standard
Perceived improvements of MkIS usage Mean deviation
Overall improvements 4.98 1.36
Marketing
Cost savings from marketing programmes 3.14 1.59
Management of marketing programmes 4.04 1.68
Improved decision making 4.41 1.80
Improved targeting of marketing activities 4.30 1.92
Improved analysing of marketing activities 4.08 1.89
On-time marketing records 4.32 2.07
Improved marketing planning 4.57 1.93
Sales
Cost savings from sales programmes 3.40 1.61
Improved sales 4.30 1.53
More efficient sales time 3.71 1.63
Improved forecasting and follow-up of sales 4.12 1.73
Better prepared sales visits 3.60 1.71
Improved sales sensitivity 3.86 1.88
Organizational improvements
Improved internal information volume
and communication 4.85 1.58
Improved customer information 4.36 1.92
Improved customer satisfaction 4.19 1.66
Organizational time savings 4.35 1.65
Reduced working pressure 3.61 1.64
Decreased paperwork, reporting 4.10 1.72
Table IV. Variables measuring use of operational MkIS subsystems
for implementing and controlling marketing efforts
(scale 1= no use; 7= a lot of use).
Standard
Use of operational MkIS sub-systems Mean deviation
Operational, salesperson productivity system 5.92 1.54
Direct mail and fulfilment system 3.79 2.32
Telemarketing system 2.30 1.63
Sales and marketing management system 5.88 1.02
Furthermore, some information included in the MkIS,
product information and distribution information, does
not correlate significantly with perceived support of
MkIS in the marketing management process. We should
bear in mind the sector chosen for our empirical studies
was wholesale companies, which sell to retailers, other
selected wholesalers, and industrial users but do not sell
in significant terms to ultimate consumers. Therefore
correlations (e.g. between customer (end-user, consumer)
or potential customer (prospect) information and
perceived support of MkIS in the marketing management
process) were very weak.
Perceived improvements and support of MkIS in the
marketing management process. Table VII contains
correlations between perceived improvements and
support of MkIS in the marketing management process.
There are lots of significant correlations implying that, if
marketing managers perceive support in the marketing
management process of MkIS usage, they see many
improvements realized in sales and organizational levels
but especially in marketing.
However, it is striking to observe that perceived support
in the implementing and controlling of marketing efforts
did not have higher correlations with the perceived
improvements in sales activities. This may be partly
because the information content of the studied MkIS did
not yield high improvements in these sales tasks (Table
V). By comparing Tables II, VI, and VII there seems to be
insufficient information, especially concerning sales
leads management information and overall marketing
effectiveness information, needed to achieve improvements
in this step of the process.
This finding, however, requires a more detailed analysis
of the operational MkIS sub-systems supporting
implementation and controlling of the marketing efforts.
We have to note that our unit of analysis was senior
marketing managers. Normally they do not themselves
use these operational MkIS sub-systems and therefore we
should keep this in mind when analysing the results.
However they do have, as team leaders, a very good
insight into operational sales and marketing tasks.
The detailed framework of the study
Use of operational MkIS sub-systems for implementing
and controlling marketing efforts. Table IV gives
descriptive statistics of the variables measuring the use of
MkIS sub-systems for implementing and controlling
marketing efforts. As the means show, operational,
salesperson productivity tools, and sales and marketing
management systems were extensively used. But direct
mail and telemarketing systems were not so common.
Use of operational MkIS sub-systems for implementing
and controlling marketing efforts and the consequent
perceived support in this step of the process. Table VIII
gives the correlations between use of operational MkIS
sub-systems for implementing and controlling marketing
efforts and the consequent perceived support in this step.
The correlation between direct mail and fulfilment
systems and perceived support in implementing and
24 MARKETING INTELLIGENCE & PLANNING 13,1
Table VI. Correlations between information content and perceived support of MkIS in the marketing management process
Analysing Researching Implementing
market and selecting Developing Planning and controlling
structure and market marketing marketing marketing
MkIS information content behaviour opportunities strategies tactics efforts
Customer (end-user) information 0.25* 0.26* 0.29* 0.18 0.07
Potential customer (prospect) information 0.14 0.20* 0.10 –0.08 0.09
Distributor/dealer information –0.01 0.06 –0.07 0.02 0.37**
Product information –0.01 0.01 –0.14 0.04 0.15
Intelligence/market research information 0.33* 0.23 0.52** 0.28* 0.29*
Marketing planning information 0.38** 0.44** 0.55** 0.48** 0.56**
Sales follow-up information 0.29* 0.08 0.41** 0.34* 0.15
Overall marketing effectiveness information 0.24* 0.28** 0.19 0.12 0.27*
Sales leads management information 0.13 0.39** 0.21 0.05 0.35**
Market information analysis 0.62** 0.34** 0.58** 0.51** –0.01
Distribution information 0.12 –0.17 0.22 0.14 0.16
Competitor information 0.22 0.30 0.22 0.05 0.16
Note: Significance level ** = 0.01, * = 0.05
controlling marketing efforts was rather high, but other
correlations were insignificant. This indicates that these
types of systems could be used to gain improvements in
marketing but also in sales activities.
Discussion
The objectives of this empirical survey among Finnish
wholesale companies were as follows. First, we evaluated
which information contained in Marketing Information
Systems (MkIS) has been important in supporting the
marketing management process. Second, we analysed
what improvements in marketing and sales have been
realized by implementing MkIS supporting the
marketing management process. Third, we investigated,
in more detail, which operational MkIS sub-systems have
25MKIS SUPPORT FOR THE MARKETING MANAGEMENT PROCESS
Table VII. Correlations between perceived improvements and support of MkIS in the marketing management process
Analysing Researching Implementing
market and selecting Developing Planning and controlling
structure and market marketing marketing marketing
Perceived improvements of MkIS usage behaviour opportunities strategies tactics efforts
Overall improvements of MkIS usage 0.59** 0.40** 0.59** 0.54** 0.24**
Marketing
Cost savings from marketing programmes 0.23 0.45** 0.15 0.20 0.14
Management of marketing programmes 0.71** 0.51** 0.57** 0.58** 0.27*
Improved decision making 0.73** 0.28* 0.64** 0.72** 0.26*
Improved targeting of marketing activities 0.58** 0.52** 0.57** 0.60** 0.34*
Improved analysing of marketing activities 0.50** 0.45** 0.32* 0.38** 0.35**
On time marketing records 0.35** 0.28* 0.33* 0.43** 0.20
Improved marketing planning 0.60** 0.23 0.60** 0.74** 0.28*
Sales
Cost savings from sales programmes 0.33* 0.28* 0.33* 0.21 0.14
Improved sales 0.36** 0.38** 0.39** 0.40** 0.20
More efficient sales time 0.39** 0.32* 0.28* 0.28* 0.32*
Improved forecasting and follow-up of sales 0.69** 0.31* 0.66** 0.64** 0.28*
Better prepared sales visits 0.43** 0.44** 0.32 0.35** 0.28*
Improved sales sensitivity 0.41** 0.45** 0.39** 0.21 0.28
Organizational improvements
Improved internal information volume and
communication 0.55** 0.56** 0.63** 0.49** 0.44**
Improved customer information 0.27* 0.60** 0.37** 0.35** 0.28*
Improved customer satisfaction 0.33* 0.47** 0.43** 0.39** 0.34*
Organizational time savings 0.41** 0.31* 0.50** 0.53** 0.30*
Reduced working pressure 0.36** 0.33* 0.52** 0.41** 0.36**
Decreased paperwork, reporting 0.42** 0.44** 0.52** 0.45** 0.37**
Note: Significance level ** = 0.01, * = 0.05
Table VIII. Correlations between use of operational MkIS
sub-systems for implementing and controlling marketing
efforts and the perceived support in this step of the marketing
management process
Implementing
Use of operational MkIS sub-systems and controlling
marketing efforts
Operational, salesperson productivity system 0.08
Direct mail and fulfilment system 0.45**
Telemarketing system 0.26*
Sales and marketing management system 0.19
Note: Significance levels **=0.01, *=0.0.5
contributed to improved effectiveness in implementing
and controlling marketing efforts.
According to our findings the correlations between
information content and perceived improvements for
senior marketing management in marketing and in sales
tasks were correlated partly with different information
components. Based on our earlier studies, MkIS is often
implemented as a “compromise” between these two
purposes. As a consequence, information content of MkIS
and usability is inadequate for specific tasks both in
marketing and in sales. In addition to this, information
which is perceived as being useful for different steps of
the marketing management process varies. Due to these
different kinds of need it might be better if, instead of one
MkIS, separate systems for these purposes were
developed. MkIS should provide, of course, an efficient
marketing and management systems totality, but merely
based on separate integrated systems. The normative
goal of this integration should be functional integration,
i.e. redesigned marketing activities, functions and
processes in addition to technical integration, i.e. data
transfer from one component of the IS to another
(Sääksjärvi and Talvinen, 1993).
The findings of this study indicated that in order to
achieve improvements in the fifth step of the marketing
management process, i.e. implementing and controlling
marketing efforts, an operational MkIS should be used for
telemarketing and especially for direct mailing. In our
sample of Finnish wholesale companies the usage of
these systems was, however, on a very low level. One may
ask why? One sound reason is that the traditional
functionally organized wholesale companies are not
acquainted with the new IT and its outcomes yet. Their
approach to MkIS seems to be the more traditional
management controlling and reporting systems
supporting managerial needs. As a consequence the
information content of MkIS is also focused on
supporting these needs. In direct mail and telemarketing
activities, different and more specific information is
however, needed. In order to be able to track, qualify and
forward sales leads, rank prospects, generate “picking
lists” and overall to manage customer relationships much
more systematically, the gathered information, especially
on potential (prospects) and existing customers,
competitors and overall information on external
influences on the marketing environment is essential.
This information is required to improve the effectiveness
especially of the sales process and the link between the
four Ps in the marketing mix approach (product, price,
place, promotion), which reduces the likelihood of the
customer being neglected.
Systematic use of operational MkIS, particularly for
direct marketing, could help a marketer gain superior
competitive advantage (Moriarty and Swartz, 1989; Shaw
and Stone, 1987; 1988). However, salesforce automation is
one of the most high-risk, high-visibility projects that a
company can undertake and in addition sales
representatives are a particularly difficult group to
include in MkIS development and daily use (Ferreira and
Treacy, 1988). Therefore, close contact between endusers,
managers and designers is needed to build up an
effective, functionally and technically integrated MkIS
wholeness if competitive advantage is to be achieved.
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27MKIS SUPPORT FOR THE MARKETING MANAGEMENT PROCESS
Jari M. Talvinen is Senior Lecturer and Timo Saarinen is Associate Professor at the Department of Business Information
Systems, Helsinki School of Economics and Business Administration, Helsinki, Finland.