CHAPTER 8:

MARKET RESEARCH AND INFORMATION

SYSTEMS IN CHANNELS
PREPARED BY:
NORAISHAH BINTI KAMAROLZAMAN

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 Learning Outcome

To understand market research and information needs in distribution channels.

To evaluate the use of information systems in channel strategies.
To determine the type of information systems typical in channel relationships.
To study the benefits of market research and information systems in enhancing
channel effectiveness.

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 Marketing Research and Information Needs in
Channels

⦿ Marketing research is a systematic process of

gathering, recording and analyzing relevant data for
the purpose of decision making.
⦿ Information such as end-users, channel environment
and channel members as inputs for decision making.
⦿ Information in channels research is inter-
organizational based on long term understanding
about all channel members that are involved in the
distribution channels.

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❑Channel information also relates to cooperative relationships

among channel members that allow data to be shared.
❑The kinds of information relate to downstream and upstream
and internal information.
❑ Downstream information is the information flow between
channel members and their customers.
❑Upstream information is the information flow between channel
members and the suppliers or manufacturers.
❑Internal information is the information flow between those
within the same firm.

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 Marketing Research Process
❖Marketing research in channels will involve a systematic process
of identifying the problem, reviewing secondary data, making a
decision on research design, data gathering, data analysis and
generating the findings to formulate recommendations.
1. Identifying problems require inputs from all channel members.
2. Gathering of secondary data include financial reports, economic
reports, annual reports and all other published and unpublished
data that relevant to the problem.
3. Decision on research design is either quantitative or qualitative
research.

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4. Execution of primary data involve downstream and upstream
channel members.
❖The responsibility of collecting the primary and secondary data
depends with the channel manager or the channel captain.
5. Analyzing the data will depend on whether a quantitative or
qualitative study is carried out.
6. Recommendation and implementation come after the analysis
of the data.
7. Control activities are done to determine the effectiveness of
recommendations.

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The Channel Research Process

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 Information systems in distribution channels

Information systems are interactive, computer based system of

information that can be used as inputs for management decision.
The categories of channel information as follows:
a.First generation information systems refer to computerized
information from a single source (stand alone).
b.Second generation information systems refer to combine data
from commercial research firms with internal secondary data.
c.Third generation information systems extend the second
generation information.

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➢Physical structure of a channel information system consists of a

database, display, model and analysis.
➢Database are come from internal and external secondary data
on a continuous basis.
➢MIS in distribution channels accumulate data on market, the
market needs, consumer information, environmental
information, information on competitors and others that relevant
and useful for channel management.

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Benefits and drawbacks of marketing research and information
system in channels.

Benefits Drawbacks
Enhance channel efficiency through use of Mistakes introduced during scanning may
scanned data result in profound channel problems

Inventory management is facilitated High one-time investment in putting the

through established information systems information system in place

Productivity can be improved Probable problem with security

Broad application of database information

Examination of data can be done

collectively
Accumulation of pertinent data as inputs
for decision making
Lower transaction costs through sharing
of information
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 Past Semester Questions

Marketing research and information systems are

necessary for channel management because the
utilization of information from these two sources can be
used effectively for making better decisions and
formulating channel strategies. Discuss any five (5)
benefits of marketing research and information systems
in channel management to the retailers (DEC 2013, 15
marks;JAN2012, 25 marks)

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Thank You
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