The rise of the computer

The major trend marketing must consider is the emergence of electronic data-processing equipment as a major tool of scientific marketing not only for reporting data but also, more importantly, for planning and control by management.

Generally speaking, I think it must be conceded that companies have dragged their feet in taking advantage of electronic data-processing analyses, online communications, and information-retrieval systems as tools to help make marketing more efficient. But the computerization of many areas of marketing is only a matter of time. Consider a few current applications of these techniques:

• A major insurance company analyzes sales performance daily, weekly, monthly, and yearly, comparing current figures with last year’s performance and this year’s goals. The input information is fed into 15 satellite computers at 15 regional headquarters. After processing the sales data (a complex task in the insurance industry, since so many pertinent details are routinely involved for every policy sold) these machines feed back the essential sales information to two master computers at headquarters. There the data are summarized and printouts are made on Friday night. By Monday morning, the reports are on the manager’s desk.
• A West Coast apparel manufacturer now adjusts the initial merchandising forecasts in light of salespeople’s bookings, then develops the cutting orders for three plants day by day in relation to inventories on hand. Salespeople and management are kept abreast of trends daily during the key selling periods and weekly thereafter. Major merchandising decisions are made on the basis of current information that was not available before the installation of electronic data processing.
• One of the largest industrial distributors in the West has set up an online?electronic data-processing?system that enables its key customers to place purchase orders for major products by using prepunched cards that bear the price and quantity information. These purchase orders are automatically transmitted to the distribution center for processing, billing, and shipping—freeing the salespeople from much routine order taking and permitting them to spend more time on individual customer problems.
• There are, of course, many other possible applications of electronic equipment as an aid to the marketing function. And in the years to come, the use of electronic equipment by marketing management will certainly increase.