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19 Nov 2021 
Claude 
In marketing, this is balancing consumer needs and wants as well as demands, with products and services offered, creating value and satisfaction leading to quality in the eyes of the consumer. Marketing management has evolved from simplified concepts such as the production concept, product concept, to more complex marketing management such as the marketing concept, which strives to be more in line with the needs and wants, to deliver desired satisfaction levels than their competitors (Armstrong, G. et al., 2013) . This shift towards the use of marketing concepts has created a necessity for marketing information systems.
This paper will illustrate the need for marketing information systems to successfully apply the marketing concept. The first section of this paper will discuss how marketing information systems are necessary for understanding the market as a whole, and learn who the target market for a given product or service should be. The section of this paper will discuss how marketing information systems are necessary for identifying consumer needs and satisfying the found needs. The final section of this paper will discuss how marketing information systems are necessary for identifying consumers’ wants and creating quality for the consumer.
To begin, marketing information systems are a necessity when using the market concepts approach, because a critical component is successfully identifying the market for the good or service that an organization sells. To be successful at marketing using the marketing concepts approach, an organization must first learn what the market for their product or service is. A market is not simply a place where consumers go to buy goods, a market in this sense is the population who is willing and able to purchase a product or service (Armstrong, G. et al., 2013). These potential buyers share a common need or want which they can satisfy
A company has generally no interest in the population who either cannot afford their goods or service, as well, an organization is not interested in the population who simply is not willing to purchase their goods or service (Armstrong, G. et al., 2013). One of the marketing information systems tools used to determine a market and help select a target market is demography. “Demography is the study of the human population in terms of size, density, location, age, gender, race, income, occupation, and many other factors” (Armstrong, G. et al., 2013).
The study of demography is used extensively in determining the target market for a new product or service because it takes into account many social-economic conditions, which could be an indicator of the potential success of a product in a given market (Armstrong, G. et al., 2013). An example of the use of demography being used to identify a target market would be how Kia the auto manufacturer has targeted Millenials and the generation z. Kia has created a product that suite this target market, as well has created successful marketing campaigns such as the Kia Soul hamster ads which have been very successful with the younger generations, because they successfully identified the market, the people who were willing and able to purchase the product being offered (Armstrong, G. et al., 2013).
In terms of the use of marketing information systems in achieving equilibrium, it is very effective in aiding in achieving equilibrium. Partial equilibrium occurs when there is equilibrium within a single market. Determining a specific target market makes achieving equilibrium much easier do to it being comprised of people who are willing and able to purchase the good or service. Overall marketing information systems are essential when using the marketing concepts approach, and aid in creating equilibrium.
To continue, the shift from less complex marketing concepts such as production concepts to more integrated concepts such as the marketing concept has created a necessity for marketing information systems, because they are a tool that helps to identify consumer needs. To understand how marketing information systems are used to identify a need, it is important to first understand what a need is. “A need is a state of felt deprivation” (Armstrong, G. et al., 2013). Needs include “physical needs, which are basic needs such as food, water, shelter, warm clothes, and safety” (Armstrong, G. et al., 2013).
Needs also encompass social needs, such as belonging and affection. Needs also take the form of individual needs, such as knowledge and self-expression (Armstrong, G. et al., 2013). Needs can take shape in any form, however, the key piece linking the different types of needs together is the feeling of felt deprivation. For a marketing information system to be successful in the strive towards equilibrium, organizations must identify what consumers’ needs are. Organizations, whether they are selling a product or service, must satisfy the needs of consumers to reach equilibrium.
A consumer-driven marketing strategy that is built around the needs and wants of the consumer is then constructed. Many needs are quite simple to identify, such as basics needs for food and shelter, they are generally understood needs, which every person in the world understands. However, some consumers have specified needs, because in some aspects of daily function there is a feeling of self-deprivation. Many products have been created to satisfy needs. For example, the calculator was created to satisfy the needs of mathematicians because complex math took too long for them to solve without one.
Market research is used to identify the needs of specific groups of people, to satisfy their needs. An example of this in action is the use of focus groups and questionnaires. When initially developing the Power Mac, the predecessor to the Mac Pro, Apple used extensive market research primarily in the forms of questionnaires and focus groups to identify the needs of professional users (Levy, S., 2018). Apple understood that through the questionnaires it was possible to identify the basic needs of professional users, such as what programs they used, what type of speed was required for their professional consumers, and what would make their product more function for their professional consumers (Levy, S., 2018).
Through the focus groups, Apple was able to identify whether or not the proposed new product was able to satisfy the needs of the professional consumer. The questionnaires gave apple a broad idea of what the professional consumers needed in a new product, the focus groups allowed apple to determine if the needs of the professional consumers were satisfied by the new product line. Overall the shift towards the utilization of the marketing concept has created a necessity for a fully integrated marketing information system when striving towards equilibrium because marketing information systems identify consumer needs, and evaluate whether or not the needs of the consumer are being satisfied.
To continue, the shift from less complex marketing concepts such as production concepts to more integrated concepts such as the marketing concept has created a necessity for a fully integrated marketing information system, when striving towards equilibrium, because marketing information systems are used to identify consumer wants. To fully understand how marketing information systems help to identify consumer wants, it is important to understand what a want is. “A want is the form human needs take when they are shaped by culture and individual personality” (Armstrong, G. et al, 2013).
An example would be if a farmer needs to purchase a tractor, the culture of the community and the individual personality of the farmer could incline the farmer to want a John Deere tractor. If that farmer was to purchase a new John Deere tractor, this would be an example of consumer demand, which simply put, is when wants are backed by purchasing power (Armstrong, G. et al., 2013).
People’s demands for products and services are shaped by which product or service would give the person the most value and highest level of satisfaction (Armstrong, G. et al., 2013). Organizations use marketing information systems to determine consumer wants, to be able to achieve the most value to the consumer, as well to achieve the highest level of consumer satisfaction. Wants can be difficult for organizations to determine because wants are so individually oriented, wants are shaped by individuals’ experience and interaction with the surrounding society and societal values (Armstrong, G. et al., 2013).
Organizations extensively use marketing information systems to determine wants. One tool organizations use to track societal consumer trends to better understand consumer wants is observational research. Observational research is “the gathering of primary data by observing relevant people, actions and situations” (Armstrong, G. et al., 2013). This allows organizations to better understand the societal and personal values of potential consumers, to be better able to satisfy their wants.
One form of observational research that is becoming consistently more prominent is ethnographic research, which “allows trained observers to watch and interact with consumers in their natural environment” (Armstrong, G. et al., 2013). This better allows the organizations to understand their consumer in the real worlds, and view first hand the societal and personal forces which shape consumer wants. The use of observational research also allows organizations to observe whether or not consumers wants are backed by purchasing power, determining if there is a demand for products or services (Armstrong, G. et al., 2013).
Overall, when striving towards equilibrium, marketing concepts requires a strong understanding of what consumers want, and whether or not their wants are backed by purchasing power. When organizations can understand what consumers want, it then becomes possible for the organization to create value for the consumer, and to create consumer satisfaction.
To conclude, the shift towards the use of marketing concepts has created a necessity for marketing information systems when striving towards equilibrium. Equilibrium simply put is a point where there is no waste, where supply is equal to the demand. In marketing, this is balancing consumer needs and wants as well as demands, with products and services offered, creating value and satisfaction leading to quality in the eyes of the consumer.
Marketing concepts necessitates a fully integrated marketing information system because marketing information systems use a variety of tools to determine the market as a whole, including determining a target market, it also allows organizations to determine consumer needs and whether or not the product or service being offered satisfies these needs, and finally, it allows organizations to determine what consumers want are, and whether or not these wants are backed with purchasing power. Overall marketing information systems are necessary when applying marketing concepts striving towards equilibrium.