Reading: The Importance of Marketing Information and Research

Effective marketing begins with a deep understanding of customers: who they are, what they want, and how they make decisions. Organizations that consistently generate insights into customer needs gain an advantage by being able to serve them better than competitors. The most reliable way to obtain these insights is through marketing information—data collected, analyzed, and interpreted to guide decisions.

Marketing information may come from many sources inside and outside an organization, including sales records, customer interactions, competitive analysis, and structured marketing research. Together, these sources form the foundation of effective decision-making.

Marketing Information and Research

Marketing research is the systematic process of collecting and analyzing data to identify opportunities and solve problems. Its purpose is to generate insights that reduce uncertainty and help managers make informed choices. To succeed, research must be well-designed and carefully executed so that results are reliable and relevant.

A marketing information system integrates people, processes, and technologies to manage data, oversee research projects, and use insights to inform strategy. These systems often draw on a blend of internal data, competitive intelligence, and market research.

Knowledge as a Competitive Advantage

In today’s hypercompetitive environment, consumers can easily compare brands and alternatives with a quick search. Companies, in turn, have the tools to track competitors and entice customers with targeted offers. Fresh insights about customers and markets are critical to staying ahead.

For example, before launching OnStar, General Motors used research to test which services drivers valued most and what they were willing to pay. Insights from this work guided pricing and product design, leading to strong early adoption.^[1] More recently, companies such as Netflix and Spotify have used real-time customer data to refine recommendation systems, directly tying marketing information to customer retention and growth.^[2]

What Should Marketers Investigate?

There is virtually no aspect of marketing that cannot be informed by data. Key questions include:

• Who is the customer?

• What problems are they trying to solve?

• How do they evaluate and choose among alternatives?

• Where and when do they buy?

• Why do they purchase—or not purchase?

Beyond customer behavior, organizations use marketing information to forecast sales, analyze profitability, and evaluate campaign effectiveness. Reliable data helps managers plan programs that achieve results efficiently and sustainably.

When to Use Marketing Research

Not every decision requires formal research. Sometimes managers act on experience, intuition, or urgency when data is unavailable or too costly to collect. However, in most cases, systematic information gathering improves outcomes. A good rule of thumb is that if the value of the insight exceeds the cost of research, it is worth pursuing.

Research is especially important when organizations face multiple options, when stakeholders disagree on direction, or when risk is high. High-performing firms use research not just occasionally but continuously, embedding it into their decision-making processes.

The Role of Customer Relationship Management (CRM)

Modern organizations increasingly rely on Customer Relationship Management (CRM) systems to manage customer data. CRM systems consolidate interactions across channels, track customer lifetime value, and provide insights into preferences and behaviors. When used effectively, CRM tools help marketers personalize offerings and strengthen relationships, turning raw data into actionable strategy.^[3]

Marketing Research and Performance

Studies show that top-performing organizations consistently invest in understanding customer needs. McKinsey research found that companies which regularly test and validate customer preferences are more likely to develop successful products and sustain growth.^[4]

The underlying theme is clear: success comes from aligning strategy with customer insights. Marketing information—whether drawn from sales data, competitive analysis, or research studies—provides the facts that guide better decisions and reduce risk.

Creation note: This content was updated with the assistance of ChatGPT, a language model developed by OpenAI, and was subsequently reviewed and edited by the author for clarity and accuracy.