Application of marketing information system by savings and loan (Kenya) limited in creating sustainable competitive advantage
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Date
2006Author
Kimani, Evah W.
Type
ThesisLanguage
en_USMetadata
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The dynamic global business environment has resulted in organizations having to change
their business strategies and processes so as to remain competitive. The competition is
always increasing especially because of a shrinking market is more conscious of the service
they receive. Finns must therefore continuously scan the macro environment to keep abreast
with the competition as well as meet the demands of the customers in a value adding manner.
Marketing Information Systems (MIS) links the firm to the environment by providing the
needed information efficiently and effectively.
This was a case study on the use of marketing information system by Savings and Loan
(Kenya) Limited and how the firm uses the information gathered from these systems to create
a sustainable competitive advantage. An open-ended questionnaire was used to collect data
from the respondents and content analysis was used to analyze the data collected. The
findings indicate that Savings and Loan (Kenya) Limited has put in place a marketing
information system in the marketing department. All the components of a marketing
information system namely internal records system, marketing research system, marketing
intelligence system and marketing decision support system have been implemented.
Further, findings show that the marketing research system and marketing intelligence
systems are the more commonly used 'components of the MIS as a form of competitive
advantage. The internal records systems are however not used to create a sustainable
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competitive advantage. This is because Savings and Loan (Kenya) Limited is not in the
business of selling property but providing financing to customers who then buy the property
from third parties. Sales orders and invoices are documents that are the most valuable
documents since they provide information on payables and receivables and are therefore not
used in Savings and Loan (Kenya) Limited. Moreover, the Marketing decision support
systems are only used to forecast the interest rates.
The findings also indicate that the information gathered using the MIS is used to develop
new products as well as improve the already existing products according to the changing
customer needs. Marketing research was specifically identified as the single most important
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function of the MIS. This is because it is through marketing research that the company
realized in the early 2005 that it was losing market share and embarked on are-branding
campaign that has seen the market share grow from 14% to 40%. The Company also won the
award of the best mortgage company of the year award by market intelligence in 2006.
Savings and Loan (Kenya) Limited therefore sees marketing information system as the heart
of the business and therefore continuously carries out the function.
It was recommended that Savings and Loan (Kenya) Ltd establish a function within the
marketing department to deal with marketing information systems and coordinate MIS
projects within the company. It was also recommended that Savings and Loan (Kenya) Ltd
automates most of the MIS functions by help of the IT department within the Organization.
This recommendation is in line with Savings and Loan (Kenya) Ltd planning as they have
already short listed a supplier to provide a complete banking solution that would have a MIS
module.
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Citation
A management research project submitted In partial fulfillment of the requirements For the award of masters of business Administration (mba) degree school of Business, university of Nairobi.Publisher
Business Administration and planning