Data can lead to confusion or clarity. As the market becomes
more versatile companies will need betters ways of measuring. Research by Homburg et. al. (2012) delves into
what makes successful marketing data management and what doesn’t. They use a
more complex contingency-based model that studies the association between
market performance and data through the concepts of breadth, strategy fit, and
cause & affect.
There are many examples of data systems that include
dashboards and balanced score cards. The right kind of data can lead to
conclusions about cause and effect and this can have great benefits for
organizations seeking a path to navigate. Data management is a method of
drawing key measurements from the environment and aligning organizational
activities for greater market performance.
The greatest benefits of data appear to be from those who
seek to create a differentiation strategy. This means that the firm is selling products
that compete within certain demographics. They are showing themselves to be
different than others because of X or Y. Market differentiation is a common
strategy among companies that desire to set themselves apart in competitive
markets.
Data management works well when market complexity and
dynamism are higher. It helps to create more clarity that encourages alignment
with new market trends. When markets are constantly changing data provides a
target that may not be available to other firms. Proper systems help to
clarify, develop strategies, and focus energy toward specific targets.
They found through 201 marketing responses empirical support for performance outcomes
depending on the strategy, complexity and dynamisms of the market. Faster
changing environments need better information that can guide decision-makers
into making stronger strategic choices. The biggest pay offs are for those
firms that differentiate themselves from others. When markets are larger and
across different continents breadth helps to ensure you are capturing the right
data. Secondly, the data must fit within the strategy of the organization and
help them focus on what is important. Third, cause and effect information helps
firms adjust their processes to create greater impact in the market.
Comment: Data for data sake is not beneficial. The type
of data collected should be based upon the strategic needs of the organization.
This data is then organized in a way that encourages useful conclusions. Since
data organized improperly can mislead decisions it is important to regularly
revisit the type of data being collected and how it is being organized.
Homburg, et. al. (2012). Marketing performance measurement
systems: Does comprehensiveness really improve performance? Journal of Marketing, 76.
