Abstract
A marketing information system is a compilation of measures and techniques for customary scheduling, compilation, examinations, and presentation of data for use in coming up with marketing choices (Brdesee & Corbitt, 2013). As such, the research report below focuses on the effect of marketing information systems on sales performance in Saudi Arabia. It investigates the different aspects of the marketing information systems.
To achieve this, the research analyses people’s behaviors, technology, and the processes that scan and gather data from the operations within the corporations and from the field. With the help of the MIS, the decision-makers can develop specific marketing strategies to achieve the company’s aims and objectives.
In order to verify whether there is any relationship between the sales performance and Marketing information systems, a survey was conducted in two Saudi Arabian companies. A secondary search was also undertaken on the internet. The result of the survey and the studies proved that marketing information has an impact on sales performance.
Introduction
With increasing revenues from oil industries, computer usage, and internet connectivity in Saudi Arabia has significantly increased (Brdesee & Corbitt, 2013). Expansion of computer technologies in Saudi Arabia has currently changed the style of product selling and management these days. Saudi Arabian marketing managers believe that the marketing information system has high potential to cater to the needs of salespeople in eliciting sales and meeting customer satisfaction.
Marketing information system fulfills the customer’s needs while meeting the aims and objectives of an organization. The strategy involved relates to design, specification, sales promotion, pricing policy, sale outlets, service, and a hoard of other elements. As such, it is a management science applied to the marketing of a product through decision-making and implementation.
Through this, a company’s product information can reach to the customers or end-users enhancing profits and customer satisfaction. With increased effects of globalization, Saudi Arabian firms should note that competition in the field of marketing is very high and that sales performance will not improve without the support of an effective marketing information system.
The system components
The marketing information system makes use of people’s data, technology, and the processes to scan and gather data from the operations within the company and from the field (Brdesee & Corbitt, 2013). The system will filter the data. After making the proper selection, the same will be reorganized as information to be presented to the management and other decision-makers of the company. A marketing information system has four main components.
In the four components, the internal records furnish information regarding performed sales, stocks, and financial accomplishments. On the other hand, the section relating to marketing intelligence gives outside information about the market setting. The details of the sources connected with the marketing information are papers written on business topics, dailies, other periodicals, and trade journals. Marketing managers interact with consumers, partners, and suppliers.
The market research addresses the problems recorded in marketing and the ways of solving such problems. The decision support mechanisms for marketing consist of certain tools that are capable of digging out value for the given data. Such tools are categorized as computer software, computer hardware, and computer peripherals.
The idea of marketing information systems was introduced to Saudi Arabia several years ago (Brdesee & Corbitt, 2013). Previously, the systems were functioning on paper. However, the emergence of computers transformed its operations. Computer displays and other electronic devices replaced the papers. In addition, the system introduced new features that were not capable on paper. The effect of an information system is that it can enhance the performance of a salesperson.
When sales performance depends on factors such as the size of the potential market, technical knowledge of the salesperson, and skills in achieving targets, presentation, and prospect calls, marketing information will come in handy. In Saudi Arabia, marketing staffs are responsible for promoting sales in their organizations. Therefore, they must have the required information to find prospects in the selling process.
The best measure to know the compatibility of a marketing information system in Saudi Arabia is to measure its effect on the performance of the salesperson. The present advanced technology-based MIS in the country proves that it has a very positive impact on sales performance. With a finger touch, today’s marketers and decision-makers delve into large databases such as social networks, business profiles, retail market resources, trade preferences, customer trends.
Through this, they have access to useful information that can boost their sales proceeds. Marketing information systems have developed to such an extent and now are the days of “big data,” which demands the intervention of innovative tools and talents to provide value to the marketing system.
The need for marketing information system
All people need information for several reasons and in different ways. The managers of a company need the information to foretell the deviations in the matter of product demand of the customers and the subsequent sales boom. It is also required for controlling sales as well as distribution expenses. Since marketing is a continuous process, decisions are to be made at every stage of the product supply, and the outcome monitored throughout.
Field reactions of consumers and competitors to the decision of the company have to be analyzed to reassure about the applied strategy, and if any modification or deviation is required, the same needs to be done promptly. For streamlining all these procedural elements, a reliable and accurate information system is vital for the organization. Moreover, the marketing information system performs the task of finding solutions to the problems faced by the management.
A few researchers have been done on the effects of marketing information system on the sales performance in Saudi Arabia. Furthermore, the few researchers are based on similar researchers done in the western world. Therefore, the topic was worth being researched. By studying it, the research could reveal how firms could utilize the ever-expanding marketing information system.
Equally, through the study, it could be known about how the public perceives the system. For instance, the study could reveal if a marketing information system infringes on Saudi Arabians privacy rights or cultures. The findings obtained from this research may be used in tackling the challenges that hinder the effective implementation of marketing information in Saudi Arabia.
Research questions
- a. What are the effects of a marketing information system on sales performance in Saudi Arabia?
- b. What are the major hindrances affecting the implementation of a marketing information system in Saudi Arabia?
Hypothesis
Just like any other research process, this research contains research and null hypotheses. Research hypothesis presumes that a relation the marketing information and sales performance in Saudi Arabia exist. The research’s null hypotheses state that there is no relationship between the marketing information and sales performance in Saudi Arabia.
To ascertain on the hypotheses, the research carried out numerous investigations in the Saudi Arabian market. On looking at the several factors that influence the sale outcomes of an organization, it is assumed that marketing information systems will have an effect on the sales performance, directly or indirectly.
Literature review
A number of literature reviews have been documented on the effect of a marketing information system on sales performance in Saudi Arabia. In this literature review, four kinds of literature have been identified.
One of the literature focuses on the tourism industry in Saudi Arabia (Brdesee & Corbitt, 2013). The authors assert that millions of tourists travel to the region every year. In the literature, the researchers investigated the effects of adopting marketing information systems to the number of external pilgrims arriving in the country. In the study, inspiration and confrontations of using the marketing information system are highlighted (Brdesee & Corbitt, 2013).
The result indicated that although the government and competitive markets were in the forefront championing for the use of the system to increase the number of sales in the tourism industry, a number of challenges were preventing the industry from utilizing the benefits of the system. The challenges comprised of exterior factors such as inadequate support from the IT industry and access to IT resources (Brdesee & Corbitt, 2013).
Similarly, some internal factors, such as the inadequate commitment by the industry’s IT experts, contributed to the challenges. In their conclusion, the authors note that the number of sales in the Saudi Arabia tourist industry can be increased if the above challenges are tackled so that the firms can fully utilize the available marketing information system (Brdesee & Corbitt, 2013).
Another literature focusing on the topic asserts that a number of Saudi Arabia’s youths are embracing eCommerce (The Oxford Business Group, 2008). Through this, the literature urges the marketing information system experts to exploit the e-commerce platform to increase their sales. The literature indicates that with increasing revenues from oil industries, internet connectivity in Saudi Arabia has significantly increased (The Oxford Business Group, 2008).
As a result, an ideal environment has been created for commerce to thrive. The literature illustrated that there are major commercial opportunities in the country that both global and regional players should seize (The Oxford Business Group, 2008).
Similarly, the authors illustrate how markets can exploit growth. In the future, eCommerce in Saudi Arabia is expected to challenge the conventional means of shopping. In this regard, the author urges marketers to come up with ingenious methods through which they can increase the sales of their firms by exploiting on the technology (The Oxford Business Group, 2008).
Other researchers have made a huge contribution to the marketing information system in Saudi Arabia. One research done by Alotaibi studies the existence and significance of the detailed issues that are perceived to foretell the growth of customer trust in online shopping in Saudi Arabia (Alotaibi, 2013). An examination was carried out with the help of existing authenticated measurement tools that focused on several major constructs categorized in the writings as probable trust predictors.
The outcomes offered confirmed clients in Saudi Arabia trust in online shopping due to some specific factors. One of these factors recounts to the clients’ third-party recognition. Another factor is associated with the legal framework.
The research was based on a study done in Europe by Regina Connolly and Frank Bannister because no other similar research had been conducted in the region (Alotaibi, 2013). In their findings, the researchers confirmed that the marketing information system could be utilized appropriately to increase sales. The research outcomes are valuable to online marketers who want to venture in to Saudi Arabian markets (Alotaibi, 2013).
Methodology
In this research, independent variables are of measures and techniques for customary scheduling, compilation, examinations, and presentation of data for use in coming up with marketing choices. On the other hand, the dependent variables are the sales performance affected by the marketing choices stipulated.
To measure the effects of the marketing information system on sales, the success of its facets should be evaluated. Equally, the sales performance can be evaluated by looking at the sales records of the firms selected for the research. When information is required from human subjects, questionnaires and surveys are employed. In the questionnaire, the citizens and the marketers were asked to detail their perceptions about marketing information systems put in place.
On the other part of the questionnaire, several questions measured on a five-point Linker scale were included. Linker scale is a variable measuring tool with strongly agree, agree, undecided, disagree, and strongly disagree with options. The scale is very effective because it indicated the extent to which the public perceive marketing information systems put in place.
To measure sales performance, the researchers collected data from a number of corporations. The data indicated the current and past sale statistics. The scale of measurement was an ordinal scale. Reviewing sales records from the time the system was not in place at the time the system was in operation enabled the researchers to gauge the success of the system
Data collection methods
For this study, most of the data were collected through field research. The method entailed acquiring data from secure and reliable corporations, face-to-face interviews, and questionnaires. Corporations provided the researchers with crucial information such as the present and the past sale reports. The above sources were very efficient since they were bias-free. The face-to-face interview required researchers to question the participants in person to collect their personal views.
During the interview, the contributors were asked to detail their perspectives. The questions used during the interviews were open-ended. Equally, questionnaires were appropriate for collecting private information from the participants.
As such, two companies in Riyadh, Saudi Arabia were visited to collect relevant data from the sample population. Two questionnaires were issued to this population consisting of 50 salespersons and five managers. The questions were open-ended so that the answers will bring unambiguous results. The first questionnaire contained five questions. The second questionnaire had eight questions.
This sampling technique was relevant to the study because the samples of the population were judged based on a typical representation of the population. The first questionnaire was designed to collect the data regarding the impressions of Saudi Arabia’s salespersons on the marketing information systems. The second questionnaire was prepared to find out the Manager’s observation about the MIS system, the sales performance of the marketers, and attainment of the objectives of the company due to the MIS used.
The questions were formulated put in such a way that the managers needed to mark only ticks to express their appreciations or observations in the respective columns. The use of questionnaires was suitable for this study as the sample population was large in number, and answers to the questions would bring obvious results.
In addition, secondary researches were also conducted on related studies with the help of internet databases and online contents. Two study samples were selected from this random search, and their methods of study and the findings were analyzed.
When the interviews were being carried out, participants’ privacy was upheld to ensure that the research did not harm them. Before we commenced our research, we acknowledged that the major issues that we were to encounter were going to be related to participants’ privacy.
In this regard, before the data collection process was undertaken in our research, permission for the study was requested from the organization and the Institute of Research Board. Equally, the research followed the directives of the established code of ethics. As such, the research caused no harm to the participants, safeguarded the participants’ privacy, and was voluntary. During the research, participants were informed of what was required of them before the start of the project, the length of the project benefits accrued from the project, possible risk associated with the research, and who to consult.
Research design
A research design is a methodical plan to investigate a research problem. There are five types of research design that can be utilized in research. They are co-relational, field (survey), experimental, qualitative, and meta-analysis. For this type of research, field or survey research and qualitative research designs are going to be utilized. As such, field research encompasses of compilations of data outside the formal set up. The means and processes used in the fieldwork differ across researches.
For research, this information was obtained through face-to-face interviewing and questionnaires. The questions were directed at individuals in natural environments. Usually, fieldwork entails a variety of distinct or inconsistent methods. The methods included casual meetings, direct inspection, and group discussions. Even though the process usually is usually categorized as qualitative research, it should be noted that at times the method might comprise of quantitative dimensions.
The researchers also utilized a qualitative research design. Through this research design, the researchers collected comprehensive information relating to Saudi Arabian’s behaviors and perceptions in relation to the use of a marketing information system.
Quantitative analysis method enabled the researchers to find out how far the MIS benefits the marketing department of the companies and the effect of MIS on the promotion of sales in Saudi Arabia. Similarly, the qualitative technique allowed the researchers to examine how Saudi Arabian sales persons utilize information from the marketing information systems.
Sampling methods
The study was conducted using systematic random sampling techniques. Systematic random sampling technique operates using the same approach as the conventional random sampling. As such, the p variables and confidence variables are evaluated using the same approach. Nevertheless, systematic random sampling excludes detached random selection of each sample. The technique was appropriate for the study because it enabled the researchers to choose a few samples from several firms in Saudi Arabia.
Fifty salespersons and five managers were selected using the criteria. A systematic sampling of five data points was used within the population whereby every second data point was observed. During the sampling process, certain steps were adhered to for accurate outcomes. The researchers evaluated the sampling interval, decided on a random start between unity and sampling interval, and continually summed up the sampling interval to choose subsequent samples.
Findings
In order to find the effects of marketing information systems on sales performance in Saudi Arabia, the answers to the questionnaires and surveys were analyzed. Because the answers the researchers received were all affirmative, it was found that the MIS has an effect on sales performance in Saudi Arabia just as it does in other countries where similar researches have been carried out.
Likewise, answers given by the five managers engaged in the study confirmed that the MIS has an influence on sales performance and decision-making. In addition to these, the two studies selected as a part of the secondary research were assessed.
The studies and the findings establish that there is an explicit relationship between the components of the marketing information system and decision-making mechanisms. The management takes decisions based on the information provided by the MIS. Sales strategy is also conceived with the help of MIS.
The salespersons are at the far end of the organization set up, and they are responsible for carrying out their obligations to the company in terms of sales outcome, which is fulfilled because of MIS’s assistance. The above means marketing information has a direct impact on the salesperson in achieving the target and increasing the outcome of the sale.
In the research’s literature review, it was found that some hurdles restricted the private firms from using the advantages of IS. It was also found that the IT industry failed to support them as the firms had no commitment to IT expertise. Our research confirmed the above claims. In the two organizations, it was realized that lack of support from the IT experts was a major challenge for Saudi Arabian firms who want to exploit the marketing information system to increase their sales performance.
On looking at the several factors that influence the sale outcomes of an organization, it was found that people purchase goods based on quality, pricing, and service. If service were not provided promptly, the customer satisfaction diminished. The reactions of the customer were usually based on different cultural factors and psychological variables.
Social status and friends also influenced the customer’s buying decisions. It was identified that in the present times of advanced technology and information explosion, social status and persuasion of friends are no longer a major element of influence for buying products. It needs other external factors and elements initiated from the company’s side.
That means the development of a strategic approach of the companies to influence the customers by implementing their marketing tool is just like any other advertisement campaign. In addition to it, marketing strategies are originated through the company’s decision-makers and managers by utilizing the information from the marketing information systems. Sales strategies that have evolved with the help of MIS are eventually carried over to the end of the sale. Through this, sales can be promoted.
Therefore, it was established that marketing information system helps the promotion of sales performance in Saudi Arabia. However, culture and personal factors such as age, income, profession, self-esteem, and loyalty also promoted the buying tendencies of Saudi Arabians customers.
To assess customer loyalty, information like types, and frequency of purchase relating to the customer was analyzed. All these should come from the marketing information systems. It was discovered that through this, marketers could implement their marketing strategies. With the help of MIS, the customer buying frequencies could be tracked, and strategies could be developed to retain the customer, thereby enhancing the sales.
Conclusion
In conclusion, it should be noted that marketing information systems comprise of a collection of measures and techniques for customary scheduling, compilation, examinations, and presentation of data for use in coming up with marketing choices. In the report, the effects of marketing information systems on sales performance in Saudi Arabia have been highlighted.
The report researched on the different features of marketing information systems. To achieve this, the research assessed people’s behaviors, technology, and the processes used to scan and gather data from the operations within the selected corporations and from the field.
The aim of this report was to study the effect of the Marketing information system on sales performance. On analyzing the data relating to the various studies included in the literature, it was concluded that the marketing information system is proactive in its basic characteristics. Without the help of the information system, a company’s management could not work effectively.
It is because almost every function of the management team is intended to achieve the aims and objectives of the company and the subordinates are working for attaining those objectives. For this, the managers should develop certain strategies with the help of MIS.
The benefits of the Marketing information systems are enjoyed by every individual of the company, that is, from the management level to the salespersons. Since the salespersons work according to the information provided by the MIS, every product sold by them is accountable as the performance of the marketing information system. As such, it is evident that MIS has its effect on promoting sales in Saudi Arabia.
Recommendation
Given that the applications of information technology are fast developing, no business can improve without adopting them. Therefore, it was suggested that the marketing information systems of an organization should adopt the latest technologies for improving their sales performance as well as the management functions.
Similarly, it was noted that a few researchers had been done on the effects of marketing information system on the sales performance in Saudi Arabia. Furthermore, the few researchers are based on similar researchers done in the western world. Therefore, firms should allocate more resources and personnel to investigate the topic.
Similarly, the researchers noted that most of the marketing information systems were not developed locally. Therefore, there are more opportunities for Saudi Arabian system developers to come up with local systems.
Systems designed locally will serve the users appropriately because the developers understand the Saudi Arabian market, unlike the foreign developers. With the help of locally developed MIS, marketing the decision-makers in Saudi Arabia can develop specific and accurate marketing strategies to achieve their companies’ aims and objectives.
During the research, it was noted that regardless of the enhanced government intervention in championing for the use of marketing information system in Saudi Arabia, a number of challenges were preventing the firms from utilizing the benefits of the system. The challenges comprised of exterior factors such as inadequate support from the IT industry and access to IT resources.
Similarly, some internal factors, such as the inadequate commitment by the industry’s IT experts, contributed to the challenges. Therefore, in the future, firms should try to tackle these challenges for them to exploit the systems to their full potential.
References
Alotaibi, M. B. (2013). E-Commerce Adoption in Saudi Arabia: an Assessment of International, Regional and Domestic Web Presence. International Journal of Information Technology and Computer Science, 5(2), 42-56.
Brdesee, H., & Corbitt, B. (2013). Barriers and motivations affecting Information Systems usage by Hajj–Umrah religious tourism operators in Saudi Arabia. Australasian Journal of Information Systems, 18(1), 11-16
The Oxford Business Group (2008). The Report: Saudi Arabia 2008. London: Oxford Press.