Final answer:
Smith's Foods collects internal data such as sales records and external data like market trends for its marketing information system, which helps in making informed business decisions and staying competitive.
Step-by-step explanation:
Smith's Foods uses its marketing information system to collect both internal and external data. Internal data includes sales records, financial information, and customer feedback which is collected from within the organization itself. External data encompasses market trends, competitor analysis, and demographic information which is gathered from sources outside of the organization.
This data enables Smith's Foods to make informed decisions, address changing market conditions, and adjust marketing strategies effectively to stay competitive. For instance, if a major food manufacturer notices a decline in sales for a product like skinny french fries, it may conduct a feasibility study using this collected data to understand if there is a relationship between the sales of different types of fries and the regions they are sold in. Additionally, accessing detailed data streams can help in maximizing production efficiently, which can be crucial for profitability and sustainability in the competitive food market.