Author: Jim Riley Last updated: Sunday 23 September, 2012
Data and information come from many sources - both internal (inside the
business) and external. This revision note summarises the main sources:
Business data and information comes from multiple sources. The challenge
for a business is to capture and use information that is relevant and reliable.
The main sources are:
Accounting records are a prime source of internal information. They detail
the transactions of the business in the past - which may be used as the basis
for planning for the future (e.g. preparing a financial budget or forecast).
The accounting records are primarily used to record what happens to the
financial resources of a business. For example, how cash is obtained and
spent; what assets are acquired; what profits or losses are made on the activities
of the business.
However, accounting records can provide much more than financial information.
For example, details of the products manufactured and delivered from a factory
can provide useful information about whether quality standards are being
met. Data analysed from customer sales invoices provides a profile of what
and to whom products are being sold.
A lot of internal information is connected to accounting systems - but is
not directly part of them. for example:
Records of the people employed by the business
(personal details; what they get paid; skills and experience; training
Data on the costs associated with business processes
(e.g. costings for contracts entered into by the business)
Data from the production department (e.g. number of
machines; capacity; repair record)
Data from activities in direct contact with the customer
(e.g. analysis of calls received and missed in a call centre)
A lot of internal information is also provided informally. For example, regular
meetings of staff and management will result in the communication of relevant
As the term implies, this is information that is obtained from outside the
There are several categories of external information:
- Information relating to way a business should undertake its activities
E.g. businesses need to keep records so that they can collect taxes on behalf
of the government. So a business needs to obtain regular information about
the taxation system (e.g. PAYE, VAT, Corporation Tax) and what actions it
needs to take. Increasingly this kind of information (and the return forms
a business needs to send) is provided in digital format.
Similarly, a business needs to be aware of key legal areas (e.g. environmental
legislation; health & safety regulation; employment law). There is a whole
publishing industry devoted to selling this kind of information to businesses.
- Information about the markets in which a business operates
This kind of external information is critically important to a business.
It is often referred to as "market" or "competitive intelligence".
Most of the external information that a business needs can be obtained from
Marketing research can help a business do one or more of the following:
Gain a more detailed understanding of consumers’ needs – marketing
research can help firms to discover consumers’ opinions on a huge range
of issues, e.g., views on products’ prices, packaging, recent advertising
2. Reduce the risk of product/business failure – there is
no guarantee that any new idea will be a commercial success, but accurate
information on the market can help a business make informed decisions, hopefully
leading to products that consumers want in sufficient numbers to achieve
3. Forecast future trends – marketing research can
not only provide information regarding the current state of the market but
it can also be
used to anticipate customer needs future customer needs. Firms can then make
the necessary adjustments to their product portfolios and levels of output
in order to remain successful.
The information for marketing research tends to come from three main sources:
Company Information – e.g. sales, orders, customer profiles,
stocks, customer service reports
Marketing intelligence – this is a
catch-all term to include all the everyday information about developments
in the market that helps a business
prepare and adjust its marketing plans. It can be obtained from many sources,
including suppliers, customers and distributors. It is also possible to buy
intelligence information from outside suppliers (e.g. Mintel, Dun and Bradstreet)
who will produce commercial intelligence reports that can be sold profitably
to any interested organisation.
Market Research – existing data from
internal sources may not provide sufficient detail. Similarly, published
reports from market intelligence
organisations cannot always be relied upon to provide the up-to-date, relevant
information required. In these circumstances, a business may need to commission
specific studies in order to acquire the data required to support their marketing