Sunday, June 24, 2012

Group: Business Leaders - Blanca Lopez - "Should Top Management Get Involved in Market Information Collection Efforts"

In the article, “Should Top Management Get Involved in Market Information Collection Efforts,” the authors argue that top management teams should be involved in market information collection efforts.  They validated this idea off of a sampling of 95 companies in Israel.  In this study, a standardized interview was given to one manager per company.  They found that the more involved in marketing information collection the top management was the stronger the firm’s innovativeness was.  Based on these results, the authors believe that top management teams should be involved in market information collection, instead of leaving this task solely in the hands of regular employees.

Market information collection is important because it aids companies in assessing their customers, analyzing competitor environments, and making key decisions.  It is understandable that the study found that top management teams should be involved in the marketing aspect of the firm. Market information collection is essential to a firm because the information collected provides companies the knowledge needed to understand how to improve customer satisfaction and gain a completive advantage among their competitors.  The more knowledge the company has about the customer target market, demographics, and customers needs and wants, the more successful a company will be. In my opinion, top management teams need to be personally involved in this process because they are the ones finalizing decisions.  Customer loyalty is dependent on a company’s reach and satisfaction.  As the authors of the article had hypothesized and confirmed with their studies, top management team involvement results in superior decisions and improved success.

As the article states, “Market information can provide the basis for shared values and beliefs in market-oriented firms, determine employee behavior and help them better understand their environment and their organization” (Harmancioglu, et. all, p.47). The authors of the article found that market information was more important for small sized firms that were in high-tech environments.  This makes sense because the more complicated a business is the more information that is needed to make decisions.  

As the authors stated, top management teams must start getting involved in market collection and by doing so they will be able to make better decision that will help improve success in the company.  By making better informed decisions based on this research, business performance will increase as well as communication between the firm and their customers. 




Work Cited:
Harmancioglu, Nukhet, Amir Grinstein, and Arieh Goldman. "Should Top Management Get         Involved In Market Information Collection Efforts?." Gfk-Marketing Intelligence           Review 3.2 (2011): 45-49.  Business Source Complete. Web. 24 June 2012.




2 comments:

  1. I agree with your opinion management should be involved no matter the size of the firm. In order for them to make clear and accurate decisions they have to understand and be involved in the information market.

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  2. At first glance the idea of top management being involved in the information collecting process would seem obvious. However when you think about it top management does tend to delegate such task to lower level employees and think to themselves I will be responsible for analyzing the information that is turned in to me. It makes sense that if top management is involved from the beginning the results will be better understood and beneficial to the company.

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