Low Cost Marketing Analysis: An Alternative Technology

Abstract

Introduction This paper attempts to define and illustrate an approach to marketing analysis which reflects the needs, capabilities and resources of decision makers in organisations where no sophisticated, explicit marketing information systems exist, and where no advanced marketing research or model‐building is feasible. Typically, this is likely to include small and medium sized manufacturers operating in national and export marketing, rather than the large public corporations and multi‐national marketing companies. This is described as an alternative technology, an analogy drawn from popular usage, where the “technology” and sophistication of marketing research methods used, and the complexity of results produced, should be matched not only with the decision maker's needs for information, but also his resources and ability to handle information. The argument put forward is that we can distinguish between companies in terms of their economic development, in a similar way to the more familiar distinctions made between countries, and that this differentiation has important implications for the “technology” of marketing management information which is most appropriate. This viewpoint is justified in the first part of the paper, in terms of its relationship with marketing theory and management practice. Once the rationale of the alternative technology approach has been established, we can continue by looking at some of the practical applications of the concept. The approach is illustrated firstly, by looking at the use of basic sales data and some of the possibilities for creative analysis to isolate trends and to understand changes in the components making up total sales performance. Secondly, the alternative technology concept is illustrated by examining some of the qualitative and semi‐qualitative methods available for development to provide data on markets and their structure and trends, and the potential for co‐operative research in some markets. It is stressed throughout that these approaches can offer the decision maker useful data, but that it is important to validate these data before they are used. While this paper examines some of the main issues briefly, it is hoped that it will be seen as part of moves to give more rigorous attention to the marketing analysis and research needs of the less sophisticated firm and its marketing information system, which may be quite different in the real world to the needs of the larger organisation.

Citation

Piercy, N. (1978), "Low Cost Marketing Analysis: An Alternative Technology", Management Decision, Vol. 16 No. 7, pp. 371-398. https://doi.org/10.1108/eb001169