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Running head: USE OF THE INFORMATION SYSTEMIN MARKETING 1

Use of Information System in Marketing

Name

Institutional Affiliation

ADOPTION OF THE IS IN MARKETING 2

Abstract

In the contemporary world, marketing has become one of the most challenging fields. The

marketers face significant challenges, including managing their websites, identifying the target

customers, identifying the right technologies, generating traffic and leads, and several other

problems.Even though the adoption of information system (IS) in marketing is an effective

intervention to these challenges, marketers have remained hesitant to their approval due to

difficulties of costs, resistance, complexity, and maintenance. To increase acquisition of IS by

marketers, the problems can be solved through educating employees, gradual implementation of

IS, and preparing employees adequately for the adoption of the new technology.

ADOPTION OF THE IS IN MARKETING 3

Use of Information System in Marketing

In the present age of industrialization, the integration of the information system has

become an essential part of every organization operations. Information System (IS) refers to the

inclusion of activities of people and information technology in an organization, which ultimately

enhances the effectiveness of people and productivity (Kim& Solomon, 2016). Some examples

of mostly utilized IS are accounting information systems, data processing systems, and

marketing information system. The IS usually offers effective solutions to problems facing

various organizations department. Marketing is one of the fields that has significantly increased

the adoption of IS because of its numerous benefits, including enhanced decision making.

Although marketersfacevarious challenges in trying to adopt and implement information

systems, they should find ways of overcoming them, as the systems will help in performing their

operations more effectively. Implementation of IS gives a marketer a higher competitive

advantage; hence, it must be executed under any circumstances.

Issues and Challenges Facing Marketing in Implementing IS

High Cost of IS Implementation

Information systems usually have a significant effect on marketers and their operations.

Implementation of IS becomes difficult due to various factors. For example, the cost of

implementing the systems is high such that it is impossible for small sized marketing companies

to afford (Laudon & Laudon, 2016). Implementation of IS might require activities such as the

purchase of network infrastructure, internet installation, and acquisition of server computer,

which is quite expensive. Due to these expenses, the marketing manager’s feel that implementing

and upgrading their existing IS may leave their organizations at a huge debt, since they must

borrow some money to finance their execution (Laudon & Laudon, 2016). Moreover,

ADOPTION OF THE IS IN MARKETING 4

implementation or upgrading of information systems is associated with other costs. For example,

employees in the marketingorganization need the trainingto are able to work with the upgraded

systems. Additionally, its execution might require the organization to expand its infrastructures

to accommodate it (Laudon& Laudon, 2016). For instance, if a company wants to implement an

information system in its marketing departments, they must incur additional cost when paying

for system host and training the marketing personnel to manage the system. Therefore,

considering the cost factors, it is difficult for organizations to implement and integrate IS into

their operations.

Fear for Change (Employees Resistance)

Despite the advantages realized from the implementation of IS in an organization

particularly the marketing department, it poses a more significant threat to the employees. The

execution and its upgrade may lead to unemployment (Goldzweig, Towfigh, Maglione, &

Shekelle, 2009). For instance, some employees might not have adequate knowledge to operate

the new IS. Therefore, when organizations implement these systems, such employees are either

forced to improve their skills or quit their jobs. The employees doing manual operations in the

organization are at high risk of losing jobs when these systems are implemented. For example,

traditionally, organizations performed most of their marketing operations, including advertising

and delivery manually, and several people were employed to perform these tasks. However, in

the present days, much transformation has taken place since most organizations use digital media

and information systems to do most of their marketing operations. Consequently, a significant

number of people have lost their jobs. Therefore, employees do not support the implementation

of information systems, and it is difficult for organizations to convince them about their

significance.

ADOPTION OF THE IS IN MARKETING 5

Maintenance

Maintenance remains one of the critical challenges facing the implementation of IS in

marketing departments. The data in information systems require regular updates, a complicated

process. The company generates a lot of data, including customers, employees, and ticket sales.

If it integrates IS, it means that they are ready to protect data such as customers information, as

in recent times the world has experienced an increase in hacker activities (Galliers & Leidner,

2014). Therefore, as such, it is the role of the company’s IS planners to ensure the data stored in

their system is fully secured. Most organizations marketing team lack experts who can safeguard

the data stored in the informationsystem, thus remaining hesitant towards implementation of a

complex system, which they might be unable to manage and maintain.

Use

Usability is another key challenge facing marketing departments in the implementation

and management of IS. In most instances, its user interface is very complicated, which makes the

marketing managers fear to use it in their organizations (Cassidy, 2016).Moreover, they worry

that it might end up risking or losing significant data. Due to the sophisticated user interface, the

results of IS are mostly not in a simple form when generated, and it might be difficult for a

manager or employee to interpret them. People want a system that is easier for them to use and

manage without sophisticated knowledge of IT or Information System.

How Information Systems offers Marketers Competitive Advantages

No distinct way of defining competitive advantage since it can be realized in marketing in

several ways. Different aspects of an organization are utilized to measure its competitive edge

against the competitors. For instance, it is possible to measure organizations competitive

advantage through various approaches, including the greater return of investments, brand

reputation, and higher profit margin (Jannesson, Nilsson, & Rapp, 2016). One of the competitive

ADOPTION OF THE IS IN MARKETING 6

advantages that make marketing effective and thrive in the market is its low pricing strategy

(Pearlson, Saunders, & Galletta, 2016). Traditionally, most organizations priced their

commodities high because of various costs incurred during marketing operations. However,

despite this shortcoming, the implementation of IS might offer the company a solution that will

help it to lower its commodity prices (Carlson et al., 2016). If the marketing department

implements it in their operations, the cost will reduce since they would not incur the costs of

activities like advertising manually or paying mass media to advertise their products.

The implementation of IS in marketing operations offers the benefit of increased speed of

operations and efficiency in an organization. Information system increases the convenience of

customers by reducing congestion and booking delays (Jannesson et al., 2016). Instead of

booking for products manually, they can perform these operations online through the

organization’s IS. For example, in the transport industry, information system makes it possible

for travelers to book their tickets at the comfort of their homes. Besides, people from diverse

parts can make inquiries about the train without going to the stations. Additionally, the customers

are capable of giving their suggestions regarding the improvement of the train services. Using an

information system is an intelligent way of running the business and making it realize a

significant profit (Jannesson et al., 2016). The organization that implements the IS system in its

marketing operations has typically minimal chances of failure, which gives it a greater

competitive advantage over others.

Information systems normally reduce the chances of failure in marketing since the

marketing decisions are based on proper data analysis by this system. Based on Hemmatfar,

Salehi, and Bayat (2010) findings, it is evident that IS rate of failure is very minimal, which

significantly increases convenience in the marketing operations. These researches assert that

ADOPTION OF THE IS IN MARKETING 7

organizations which implement information systems have high chances of success. According to

West, Ford, and Ibrahim (2015),if the systems are well developed and integrated into an

organization, the chances of organization success increases by over 60%. By use of IS, a

company can track its financial records, retrieve employees data quickly, and perform many

other tasks efficiently. These operations would cost an organization a significant amount of

money if it hired a person to execute them. Therefore, considering the numerous benefits

anticipated from implementation of IS systems, organizations must not hesitate to adopt them.

Companies use the information system as a differentiation strategy. Integration of

information system in marketing increasesthe effectiveness of their operations (West et al.,

2015). Marketing mix helps in differentiating a company's product from the competitors and IS

can help the marketer to perform this operation. In instances where multiple firms produce a

similar commodity, they have to create a strategy for attracting customers towards their product.

By use of an information system, a firm can analyze the competitors marketing strategies such as

higher pricing or poor promotion strategy and create a policy that gives it a higher competitive

advantage. A business might encounter various challenges such as economic recession and

disaster strikes. A good company should adequately respond to such problems through the

implementation of proper strategies. For a firm to respond well to such difficulties, it must be

dynamic, which means that it must correctly understand its price, promotions, people, and

products. The information system will guide the marketers in making the right decisions

regarding the challenges encountered.

Although adoption of information system is very expensive, its long term benefits are

outstanding. Research shows that IS system development projects are one of the most difficult

and expensive plans to implement (West et al., 2015). However, with the proper execution of

ADOPTION OF THE IS IN MARKETING 8

fundamental changes into the marketing operations, the organization will have dealt with the

complexity of these projects and sustain competitive advantage in the industry. Researchers have

devised some methods of helping an organization maintain its competitive advantage (West et

al., 2015). One of the proposed ways is a regular update of the organizations marketing IS to

ensure that the customer’s needs are fully met. The second method of reducing complexity of

adopting IS involves developing simple user interface that enables the end users to interact with

the system easily.

The adoption of information system helps the marketers in dealing with legal matters.

Communication integration between marketing IS and the system of legacy enhances an

organization able to deal with legal issues (Galliers& Leidner, 2014). Therefore, if it has an

information system, it will be easier to comply with the law as compared with organizations

without it.

Overcoming Barriers Related to Implementation of IS

Due to the challenges that marketers might encounter in trying to implement or adapt

information systems, the management needs to apply some strategies to prevent resistance. After

implementation, the organization experiences a variety of changes, including a shift from manual

to automated systems and evolution of operations. Therefore, one way of protecting the system

from repulsion by the employees is by preparing them adequately for the adoption of new

technology or change (Avgerou & Walsham, 2017).It will make them ready to face and

experiment with the new system. They will not fear losing jobs since they will be equipped with

skills to manage automated information systems. Secondly, organizations must not implement

the system at once but instead through a series of processes and activities, which would enable

the employees to familiarize themselves with it slowly (Avgerou & Walsham, 2017). Moreover,

ADOPTION OF THE IS IN MARKETING 9

through the gradual implementation of an information system, it is easier for employees to

understand its functioning correctly when it is implemented in phases rather than once. Thirdly,

benchmarking is another method for overcoming challenges of IS execution. As a way of

defeating fear, the organization might send its employees to another with similar technology for

training and education (Henke, Fäth, Hutschenreuter, & Wuttke, 2018). It will eliminate the

employee’s fear of losing a job since they will become conversant with the system before it is

implemented in their organization. A company can also shift the employees in other fields of

operations after implementation of new IS instead of dismissing them from work. Fourthly, it can

give them anearly notice regarding the implementation of a marketing information system so that

they can be prepared to quit the job when the system becomes functional. Lastly, before

deployment, an organization must first evaluate whether the information system is necessary for

their operations (Arvidsson, Holmström, & Lyytinen, 2014). It can create a dynamic model that

will assist them in knowing whether the level of desired success is attainable through IS

implementation. The success prediction model or instrument act as a way of facilitating the

expertise in the preparation of marketing information system plans. Since a relationship has been

created between the characteristics desired of the organization and the success level, the

managers can make the right decisions by the help of an information system.

How Information System Adds Value to Marketing Operations

Businesses that use information system have higher value than businesses without

information systems. Information systems that are expert based are ones that are intensive in

their software systems, combining the expertise of more than one expert in providing advice that

is specific to solve a problem and assists in marketing decision-making strategy (Peppard &

Ward, 2016). Therefore, from this perspective, IS significantly adds value to the business. When

ADOPTION OF THE IS IN MARKETING 10

an organization uses information system correctly, realize a series of significant advantages and

benefits can. The values include an increase in speed of operations, reduced inconveniences, and

minimal chances of error. The contemporary world is full of hackers who greatlyput at risk the

data stored in the organizations' information systems. A firm has to adequately secure the data

installed in their systems to prevent any attacks. The customers feel confident in organizations

that implement a secure system for protecting their data. They develop greater loyalty towards

them. Therefore, IS can also be viewed as a means of increasing customer retention for the

organization. Moreover, it improves employees’ retention since it makes it easy for managers to

perform their appraisal without bias.

Conclusion

The implementation of an information system in marketing operations is a complex

process due to various barriers, including high implementation cost, employee's resistance, costly

maintenance, and sophisticated user interface. However, despite these challenges, marketers

must not hesitate to implement information systems as they offer many benefits, including

decreased cost of operations, reduced errors, high returns, reduced inconveniences, and reduced

frauds, which ultimately gives marketers greater competitive advantages over other

organizations. Marketers can adopt various measures to reduce IS implementation

challenges,namelypreparing employees adequately for the adoption of new technology,

implementing information systems gradually rather than instantly, extensive employees training,

and evaluating the significance of IS before implementation.

ADOPTION OF THE IS IN MARKETING 11

References

Arvidsson, V., Holmström, J., & Lyytinen, K. (2014). Information systems use as strategy

practice: A multi-dimensional view of strategic information system implementation and

use. The Journal of Strategic Information Systems, 23(1), 45-61.

Avgerou, C., & Walsham, G. (Eds.). (2017). Information technology in context: Studies from the

perspective of developing countries.Routledge.

Carlson, J. R., Zivnuska, S., Harris, R. B., Harris, K. J., & Carlson, D. S. (2016). Social media

use in the workplace: A study of dual effects. Journal of Organizational and End User

Computing (JOEUC), 28(1), 15-31.

Cassidy, A. (2016). A practical guide to information systems strategic planning. CRC press.

Galliers, R. D., & Leidner, D. E. (2014). Strategic information management: challenges and

strategies in managing information systems. Routledge.

Goldzweig, C. L., Towfigh, A., Maglione, M., & Shekelle, P. G. (2009). Costs and benefits of

health information technology: New trends from the literature. Health Affairs, 28(2).

Hemmatfar, M., Salehi, M., & Bayat, M. (2010). Competitive advantages and

strategicinformation systems. International Journal of Business and Management, 5(7),

158-169.

Henke, K., Fäth, T., Hutschenreuter, R., & Wuttke, H. D. (2018). GIFT-an integrated

development and training system for finite state machine based approaches. In Online

Engineering & Internet of Things (pp. 743-757). Springer, Cham.

Jannesson, E., Nilsson, F., & Rapp, B. (2016). Strategy, control and competitive advantage.

Springer.

ADOPTION OF THE IS IN MARKETING 12

Kim, D., & Solomon, M. G. (2016). Fundamentals of information systems security. Jones

&Bartlett Learning.

Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education

India.

Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2016). Managing and using information

systems, binder-ready version: A strategic approach. John Wiley & Sons.

Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a

digital strategy. John Wiley & Sons.

West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic marketing: Creating a

competitiveadvantage. Oxford University Press, USA.

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