Chapter 14 Channel Information Systems

I. Definition:

CIS is the orderly / organized flow of pertinent / relevant operational data both internally and between
channel members, for use as a basis of decision making in specified responsibility areas of channel
management

Purpose:

To collect and analyze data about the operation of the channels in order to assess the performance and
take timely corrective action continuously improve performance.

Advantages:

1. Useful in marketing planning – helps improve quality of marketing decisions

2. Can help tap market opportunities
3. Provides an alert against competition
4. Helps develop action plans for growth
5. Gives feedback on consumer needs

Classification of Information:

1. Based on the use made of it by marketing – planning, operations, decision making or control
2. Based on subjects – consumers, products, competition, channels, promotions, pricing, sales
volume, value etc
3. Operations data – facts and figures
4. Also based on assumptions, anticipated occurrences – forecasts relating to the channel system

Information Process

The information system uses methods and resources to collect, process and used the pertinent
information for decision making relating to the channel.

The process involves four steps:

1. Collection –acquiring and placing raw data – monthly sales by each territory. Ex. Monthly sales
by each territory
2. Processing –analyzing data to get meaning out of it – arranging, modifying and interpreting the
data by the user – comparison of sales between periods
3. Storage –keeping the information together till it is needed
4. Use –application of information for management decision making – sales data of the last 6
months to forecast the sales of the next month.
Development of CIS

Decide what information is required

Organize information in a manner suitable for interpretation and action

Decide who will use the information when and for what purpose

Use of Information
Planning: sales forecasts
Control: expenses against budget
• There is always a cost of collecting information.
• If data collector is not properly, the data provider will hesitate to
give the information.
• The channel MIS works at the sales operational level.