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INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH, VOL 1, ISSUE 1
Marketing Engineering and Making Marketing
Decisions
Mahmood Jasim Alsamydai
The concept of marketing engineering has become, today, an issue of great importance because it has helped in enabling
marketing management to gain information and analyze it by using computer devices, communication networks, software and
marketing decisions support systems, thus helping marketing management to take marketing decisions.
The term marketing engineering can be traced back to Lilien et al. in "The Age of Marketing Engineering" published in 1998. In
this article the authors defined marketing engineering as the use of computer decision models in making marketing decisions.
The definition of marketing engineering was also developed by Lilien et al. 2002, who defined marketing engineering as "the
systematic process of putting marketing data and knowledge to practical use through the planning, design, and construction of
decision aids and marketing management support systems (MMSSs)". Among the driving factors toward the development of
marketing engineering are the use of high-powered personal computers connected to LANs and WANs, the exponential growth
in the volume of data, and the reengineering of marketing functions.
other researcher also called marketing engineering "the systematic process of putting marketing data and knowledge to practical
use through the planning, design, and construction of decision aids and marketing management support systems."
Marketing management works in a variable and unstable environment, where it is requested to be flexible and interactive with
these changes in the internal and external environment of the organization. There is a tremendous flow of information, where
marketing engineering has to collect and analyze, by adopting information systems, information technology management
decision support systems. Marketing engineering played the major role in that and enabled marketing management to adapt to
and accommodate external environmental factors and take the proper marketing decisions.
The objective of this paper is to know the relation between marketing engineering and the process of making marketing
decisions and to provide the knowledge frame for marketing engineering, the supporting phrases of it, the technology used, as
well as the information technology, marketing technology, market technology and phrases used in support of marketing
engineering.
Index Terms— Communications, Development, Marketing, Marketing Decisions, Marketing Engineering, Technology, Organizational
—————————— ——————————
1 INTRODUCTION
he tremendous development in information and
communication, whether electronic or traditional, affects
business the environment, which requires more and more
research, analysis and accuracy in making marketing decisions.
Marketing decisions obey and follow up engineering process and
structure in design based on procedures of research, studies,
gathering of data and information, and using statistical methods
with modern technology in manipulating and processing these
data and information targets [1],[2].
T
Mahmood Jasim Alsamydai; Department of marketing, The
Faculty of Business, Al-Zaytoonah University, P.O box-130.
Amman, Jordan. E-mail: Mahmod_jasim2000@yahoo.com,
Phone: 0096265862982, 00962777397835.
Simulation is also required to know the market and the way to
deal with it and respond to its requirements and needs in order to
enable marketing managers to design effective marketing plans
that provide it with capabilities to achieve goals and
organizational targets [1],[2].
Marketing concept differs according to the stage or phase that it
is passing through. Some people believe that traditional
marketing represents an art; others see it as a science. As for
specialists in marketing engineering, they merge the art and the
science to solve certain problems. Engineering work is concerned
with solving problems as well as modifying processes and
procedures to enter new products or techniques or knowledge and
new methods, and this represents a solution for problems,
Solving it occurs through assigning engineers to be part of this
change, by interacting and working with marketing engineering
to enable this management to make marketing decisions and
solve the problems that it faces by adopting developed techniques
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and technology and effective communication tools so that it
becomes capable of working on enhancement of current products
and providing new products with differentially competitive
advantages. Good pricing, promotions distribution and other
marketing activities are also needed to improve marketing
decisions related how to communicate and approach the market.
All can be done by developing scientific research concerning
different marketing activities and by adopting marketing
engineering [3],[4].
The direction towards marketing engineering contributes in the
transformation from traditional methods to the most modern
techniques, statistical methods, software and depending on
internet network and statistical programs in research,
development, and meeting customers’ desires and needs. It
enables marketing managers to implement their activities with
high efficiency because statistical programs help and assist in
discovering multiple alternatives that enable marketing
administrations to differentiate among them and take the
appropriate decision by increasing awareness and improving
good practices among employees and workers in the marketing
department. Besides that, marketing engineering and their tools
provide an analytical method to determine the best marketing
strategies and assist in making marketing decisions [5].
2 MARKETING ENGINEERING CONCEPT
The marketing engineering term was introduced first by Lilien
and Arvind in 1998 [6], where they indicated that marketing
engineering is formed by using decision forms and computer to
take marketing decisions. In 2002, they indicated that marketing
engineering represents an organized method to utilize and employ
data and knowledge to drive effective marketing process to take
decisions through decision-making processes supported by
technology and model. Lilien et al. [7], define marketing
engineering as a systematic process of putting data and marketing
knowledge into practical use through planning, designing and
building assistant devices to take decisions, and the systems of
marketing decisions support; and to adopt local communication
network and computer network which contribute to enable
individuals use personal computers and share in developing and
adopting marketing engineering [7], [8].
The accelerating growth in the volume of data, information and
the efforts to restructure or reengineer marketing engineering
businesses require the following:
-Efficiency in implementing marketing engineering
-The comparison between offer and demand along with
the properties of system design for marketing decisions
support
-The nature and features of an implementation process
that depends widely on differences between end user
systems and the developed systems of marketing
decisions support system
-Employees training on using programs and
communication network
The style and method that marketing engineering relies and
depends on are restricted and available only to managers in large
organizations who have a strong motive to adopt them in addition
to huge budgets and computers connected to networks with
programs that are easy to use in implementing and confirming
marketing engineering methods. But the development of the
communication process and the modern trends among employees,
consumers and organizations to use the available communication
tools like computers, network connection and mobiles play a role
in increasing implementation efficiency of marketing
engineering. For sure, it contributes in supporting marketing
management to make and support marketing decisions in a way
that it satisfies the best results when implementing these
decisions on the practical side because marketing engineering is
involved in following accelerated developments in the external
and internal environment based on data analysis and its
manipulation by statistical methods and by using statistical
programs developed in this process, which contributed to gaining
accurate information and took part in making the right decisions.
The main job of marketing management depends on
environmental analysis for the target of defining the factors of the
external environment that affect an organization’s business,
achieving its goals and targets, and at the same time marketing
management objectives and targets, which represent part of the
organization’s objectives [9].
Also, marketing management usually works to identify the
internal environment through available information by using
records of organization and marketing department along with
internal reports in order to determine and identify the weak and
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strong points of the organization. It will help much to describe
the surrounding circumstances of the organization accurately and
specifically and identify market directions by using market
technology so that it will enable management to issue effective,
efficient and successful marketing strategies [10].
From this, the role that marketing engineering plays becomes
clear, as the process and operation through which information is
put in a usable sequence by using analysis, computer and the
proper statistical programs.
As a matter of fact, there are four main reasons that make
marketing engineering the future of marketing:
-Marketing is a technical job where marketers of today
are using complicated technology, increasingly, to
communicate with clients and customers. They must
understand, for example, search engine logarithms and
procedures, data analysis, marketing automation
systems, popups’ filters, and email marketing
regulations, using applications of the programs,
browsers and features of the browser across many [11],
[12],[13],[14],[15],[16],[17].
-More experience is required when a marketing team
develops marketing tools or mobile applications.
-Marketing authorities can also run campaigns
management through social media using supervising
programs and fixed assets management tools, which
focus on dataware houses identical to what management
systems of engineering products and operations are
doing currently [11],[12],[13],[14],[15],[16],[17].
-Major marketing supervisors can now spend easily on
technology more than their colleagues in information technology
or technology control. Digital marketing is the field that is the
fastest in growing towards marketing expenditure and gaining
talents in different fields [11],[12],[13],[14],[15],[16],[17], [18].
-3 Technology and Marketing Engineering
The foundation for marketing engineering success is the
employment and use of technology, which is considered as the
key to this success, especially in the current days. Marketing
management receives tremendous volumes of data and
information by adopting marketing information system which
includes marketing researches, marketing intelligence, internal
reports and work to process and manipulate data through
marketing decisions support system. This system provides
information about market directions, competitors, consumption
attitudes for targeted markets, indicators for awareness,
experience and predictions of sales, demand estimation, how far
the effectiveness of the marketing mix is. It also follows
variations in the external environment. All these made marketing
management face huge volumes of data that require the use of
modern technology to gain and gather data and information, then
process and analyze them to reach positive results when used
properly. For that, marketing engineering locates data and
information in a usable sequence for the sake of reaching
effective and successful marketing decisions [19].
The concept of technology, as stated by Alsamydai and Rudaina
[20], expresses the real potentials to implement scientific
knowledge for practical purposes. It includes the usage of
methods, systems and devices that are produced from scientific
knowledge used for practical purposes that lead to accumulated
knowledge, experience, creation and invention for the sake of
providing more developed techniques than the previous period,
and these techniques are a result of technology. The technique for
that represents a method to accomplish business through the use
of developed devices, programs, software, and communication
tools as well as reliance on mathematical or statistical equation to
process and analyze data.
Sultan and Christian [21], indicated that adoption of
communications and information technology by organizations
and marketing management was of positive effect on marketing
strategy, selection of targeted sectors, market division,
understanding consumer behavior, marketing campaigns
management and understanding the market.
Avramovi ć [22], added that the business of successful companies
demanded that these companies be interactive and flexible with
the dynamic changes in the surrounding environment and in the
market, which lead to the continuous, fast and accurate flow of
possible and potential information through information systems
and technology. The continuous development of technology of
information and communication had a serious effect on
businesses and their functions like sales, marketing, purchases,
funding, accounting, research and development.
According to Brady [23], technology had encouraged the
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development of marketing relations, which improved the relation
between the consumer and the company by improving marketing
mixture and managing the relation with customers.
Communications process and technology development played an
effective role in supporting marketing management to connect
with current and potential customers, and at the same time, it
enables the organization and marketing management to search for
information concerning consumers, markets, competitors,
suppliers and other factors that affect their business by using the
internet, personal computers and mobiles. Also, they played a
significant role in enabling marketing management to select and
choose targeted markets through market analysis and market
division along with understanding consumer behavior and
advertising about product value for the customer.
As a social point of view, marketing is the binding between the
physical requirements of the society and its economic patterns
[22].
This change in marketing management businesses, the
technological environment, communication tools and external
environment pushed and motivated market departments to
reengineer their business and to adopt modern technology,
develop communication methods and go towards marketing
engineering because it realized the importance of marketing
engineering in achieving targeted goals.
The rise of developed technology and electronic communication
methods contributed to getting new customers. Also, it
contributes to decision making. Technology development has a
major role in internet appearance which shares effectively in
enabling the organization and marketing management to products
marketing on the level of local and global markets and directs
their activities towards the targeted market.
Esha and Ashank [24], on the same subject, indicated that
marketers believe that technology brings new customers and
helps in following up automation. Also, it helps in making
decisions. Marketers devoted their efforts, continuously and
seriously, to present new ideas to market their products. This
technology development shared in the development of marketing
concept and directed them towards digital marketing, customer
relation management, business automation and marketing
engineering.
Modern technology, a development that took place in
communication tools and methods, and the rise of the marketing
information system as a marketing job, all contribute to
performance enhancement of marketing management. The use of
information technology in planning and implementation of
marketing activities, including traditional ones, become the basis
of the formulation of marketing strategies due to positive
implications for the use of this technology in raising the
efficiency of the marketing performance of various organizations.
The importance of the concept of technology and its reflection on
marketing decision making performance in business
organizations still hold the interest of many current researchers
including [25], [14], [26], [27], [28] , [29], [30], [31], [32], [33],
[34], [35], [36], [38] have turned their attention to information
technology and its competitive advantage.
4 MARKETING TECHNOLOGY AND MARKETING
ENGINEERING
Technology and its rapid developments had an impact upon
finding devices, equipment, internet network, fast communication
methods and social media methods, which took part in increasing
the capability of organizations and marketing departments to
manage and process marketing activities and reach or approach
consumers. In the dynamic world of today, where globalization
processes and the rapid development in technology have brought
about huge and tremendous changes in the market; the creation is
considered an important, critical and crucial factor to deliver new
products that are capable of following up with developments
occurring in consumption patterns. These products enabled
organizations to create a valuable and lasting competitive
advantage in a complicated and changing market. For sure,
creative organizations will be more successful in producing,
developing and dealing with the changing environment. They will
simply own new capabilities that allow them to achieve high
performance at all levels [27].
Technology development in the field of marketing activities
played a major role in enabling organizations to create and
develop products and all related fields, to develop strategies for
all marketing activities. At the same time it shares in enabling
organizations to reserve their competitive positions in the market
within a rapidly changing environment. For that, creation and
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development became a significant sign of success for these
organizations to achieve a lasting competitive advantage.
Marketing technology is an expression that is synonymous with
technology expression in the field of marketing. The technology
development shares in finding devices and communication
methods for all organizations and departments that belong to it. It
founded and established, at the same time, devices, instruments
and communication methods that played a basic role in the
success of marketing activities. Because of that, marketing
technology is represented in knowledge and experiences that
contribute in formulating and executing marketing strategies by
using techniques from devices, instruments, tools,
communication methods and information that contribute in the
development of marketing activities and the fulfillment of market
needs. It facilitated and enabled the way marketing departments
proceed with research and studies and collect information with
the required accuracy and speed through the use of software,
programs, and computer devices. It relies on marketing
information systems and supports marketing decisions [18], [17],
[10].
Marketing engineering provides many opportunities to use
techniques and information to reengineer marketing decisions
and to support new business opportunities. Also, it provides a
common analytical foundation for marketing decisions that
include the most recent ideas and practices related to marketing
decisions industry (like markets division, products development,
distribution, and connection with current and potential
consumers, promotion and other activities). For all of that,
marketing technology is considered to be the foundation and the
base of marketing engineering. Marketing technology is the main
reason for its existence and longevity [39].
It shows, based on all previous facts, that marketing engineering
is a result of adopting the principle of reengineering by marketing
departments and their employees. Their activities and business
involve using the technology developed, as well as information
and experience, to enhance marketing decisions and respond to a
market that is blustered (stormed) by rapid changes.
5 MARKETING ENGINEERING AND MARKETING
INFORMATION SYSTEMS
The development that took place in external and internal
environments contributed to pushing marketing management to
reengineer its business and find a special department to manage
marketing information systems, considering it the foundation in
supporting marketing management by data and information that
enable it to achieve the goals efficiently. Marketing information
system (MIS) is composed of people, devices, instruments and
procedures to collect, classify, analyze, evaluate and distribute
critical and important information properly and provide it to
decision makers in marketing. Data and information collection is
usually done through marketing research and marketing
intelligence where analysis is carried by using mathematical and
statistical methods in the marketing decisions support system [9].
This system provides information about the market, company,
managers, external partners like suppliers, distributors, marketing
services agencies and other issues. However, this system cannot
be implemented efficiently nowadays without relying on devices
and instruments like computers, communication methods and
tools, in addition to the availability of experience and information
in using these devices, instruments and the proper mathematical
and statistical methods [40]. Here, the relation appears between
marketing engineering and marketing information system.
beckoned that marketing information department realized the
need to create a department that supported it to gather
information in a form that is scientific, organized, and based on
modern technology, devices and methods, which enabled it to
establish a marketing information system [41], [29].
the marketing information system is considered an efficient tool
that supports decision making. Almost all organizations are aware
of the important role played by information in identifying the
factors that affect organizational performance, and this role gains
more efficiency by adopting modern technology. Montotoya and
Ottum and Moore focused on the relation between three
functions: research and development, production and marketing,
integration and coordination between these functions which will
share in the development, support creation processes and produce
products with competitive advantage that plays a role in the
success of marketing management [42].
Since all information and its processing and analysis contribute in
developing marketing concepts and the tools used, they
contribute in finding marketing engineering, which direct
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marketing departments towards the automation of their various
activities depending on technology and techniques of high
efficiency like computers, software, programs, statistical and
mathematical models and modern communication methods.
Berend and Gerrit define marketing decisions support system as
"Any device that combines information technology, analytical
capabilities, marketing data and marketing knowledge, where it is
made available by marketing decision makers in order to enhance
the quality of marketing department by depending on marketing
models, marketing experts systems and marketing neural
networks.” [43].
Adapting the concept of marketing engineering and marketing
activities has an important and effective role in developing
marketing activities as a result of knowledge, experience and
techniques used in the marketing field that considered
formulating marketing decision as the first step in adopting
marketing engineering. Migley pointed out that “marketing
engineering has an important role, not only in making and
supporting marketing decisions, but also in creating and
identifying four purposes codifying marketing knowledge and
marketing experience [44], [45]:
-Facilitating the progress of marketing as a science
-Promoting the discipline within its institutional and
professional environments
-Better educating and improving the credential of the
potential manager
-Providing competitive advantage to the firm
6 MARKETING ENGINEERING AS ASSISTANT TOOL IN
MAKING MARKETING DECISIONS
Adopting marketing engineering has contributed to the increasing
role and efficiency of marketing management decisions support
systems effectively. It has assisted marketing managers to be
more effective in making decisions concerning marketing mixture
factors, especially in the electronic marketing field. Marketing
engineering became a companion associated with the fast and
enormous development in information technology and provided,
to marketing managers, an enormous volume of data that enabled
them to process, manipulate and transform data to information
used as support and stanchion in making marketing decisions.
Marketing information system focuses on manipulating and
processing this data by using programming technology, statistical
programs (like SPSS), proper statistical methods (like correlation
coefficient, simple linear regression, multiple regression, produce
T-Test value) and other models that match the objective nature of
data processing to provide marketing management with
information, knowledge and experience according to the adoption
of marketing engineering concept.
The capability of marketing management to make successful
decisions depends on the level of success of the marketing
information system, the development in information technology,
model methodology, marketing knowledge, marketing through
the internet and the reliance on electronic companies' sites and
social media sites [45]. All these have led to an advanced and
important position in marketing management support systems
and the marketing decisions in the organization structure of the
marketing department. As a matter of fact, the practical situation
for this management (administration) is the marketing decisions
support system, which is considered as a part of marketing
information system that includes marketing research, marketing
intelligence and internal reports.
Marketing decision support systems play the major role in
making marketing decisions because they concentrate on data
collection and process data by depending on methods developed
in the analysis. These methods identify the effective factors in
making marketing decisions including internal and external
factors that contributed to push and drive marketing management
to reengineer marketing activities and adopt the marketing
engineering concept to be capable of adjusting with the
marketing environment and making the right decisions [43].
Workers in the field of marketing engineering are aware of the
important role that marketing engineering plays in achieving
organizational objectives by recognizing the nature of products
desired by consumers and also the nature of products that are
provided by competitors. It works side by side with products
engineering to produce a product capable of meeting and sharing
in making a decision as to product features and specifications
through determining effective factors in products marketing,
choosing the proper distribution points, delivering products of
good quality at the right time and place and for a good price. To
achieve this by marketing management, its reliance on marketing
engineering plays an effective and crucial role in market
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reengineering or restructuring so that it can be a way to
accomplish an exchange process [35], [23], [33].
Market engineering includes an organized, systematic, theoretical
and practical procedure to analyze, design, enter and guarantee
markets quality, in addition to its legal and canonical frame
concerning market procedures, delivery and circulation rules,
systems, means and intermediary, media and their business
models, all at the same time. [37], [46], [47].
For Weinhardt et al.[48] market engineering depends on
concepts, methods, styles, procedures and techniques from the
economy, especially concepts of game theory and mechanism
design. But also it borrows concepts from finance, information
systems and operations research to enable marketing managers
make decisions and produce successful sales strategies that leave
workers in the sales department in a position to do their jobs and
duties with high efficiency.
The workers in market engineering work within the legal and
economic environment, and this has an effect on all the business
of the sales department and the organization because they deal
directly with market components like partial market structure,
information technology infrastructure and business infrastructure
[48]
Market engineering is also concerned with determining the
factors that influence products marketing, choosing the proper
distribution points, delivering products in the proper quality, time
and place and for a suitable price. The objective of market
engineering is to restructure the market to be a channel to achieve
and accomplish the exchange process. Another objective for
market engineering is to make the market work as efficiently as
possible, from the design to the commercial exchange process.
Dealing with the market concept is very useful in implementing
new policies and proposing rules that reserve company style and
objectives by identifying factors or elements that are most
efficient in the market so that marketers can accomplish the
exchange process successfully according to market engineering
objectives [48], [49], [50], 51].
We include the following market engineering objectives:
-Analyzing and designing commercial deals elements,
market divisions, infrastructure and business structure in
markets
-Determining implementation fields where coordination,
based on the market, is an effective and efficient way or
channel or coordination
-Producing new ways, methods, channels, tools and
knowledge to markets engineering; also determining
implementation fields or sectors for coordination that is
based on the market
-Contributing and sharing in making decisions taken by
marketing management concerning marketing activities
-Contributing and sharing in making decisions that are
concerned with products and services that are produced
by the organization
Lilien [5], have adopted a model that concentrated on the role of
marketing engineering in making marketing decisions. The model
includes five phases, started by Data and ended by
Implementation, combined with the marketing environment, as
explained in Figure (1).
7 CONCLUSION
The trend and attitude towards marketing engineering contribute
to transforming from using traditional methods to using the most
modern techniques, statistical methods, and programs as well as
depending on internet network and statistical programs in
research, development, and meeting customers’ desires and
needs. It enables marketing managers to implement their
activities with high efficiency because statistical programs help
and assist in discovering multiple alternatives that enable
marketing management to differentiate among them and take the
proper decision by increasing awareness and improving practices
of employees and workers in marketing management. Besides
that, marketing engineering and their tools provide an analytical
method to determine the best marketing strategies and assist in
making marketing decisions. (In this paper we produced many
concepts related to marketing engineering and its role in making
marketing decisions. Technology and information technology are
considered the foundation and the key to marketing engineering.
The term marketing technology is complementary, integral and
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synonymous to marketing engineering and its role in making
marketing decisions. In addition, market technology helps and
assists marketing engineering to know the markets, consumers
and the environmental factors that affect them, which can be
considered their foundation and base, by using marketing
engineering in designing marketing strategies and making various
marketing decisions efficiently and successfully.
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et al., 2013)
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