Chapter Three

Marketing Information System Database

Subtopics

 Introduction to MKIS
 Computer system & Central processing unit
 Data Storage
 Database Management
Introduction
An understanding of the effective and responsible use and management of information systems is
important for managers and other business knowledge workers in today’s global information Society.
Information systems and technologies have become a vital component of successful businesses and
organizations. Information systems constitute an essential field of study in business administration and
management, as they are considered a major functional area in business operations. It encompasses a
variety of topics including system analysis and design, computer networking, information security,
database management and decision support systems.

An information system is any organized system for the collection, organization, storage and
communication of information. Information systems also can be defined as a collection of hardware,
software, data, people and procedures that work together to produce quality information. In a broad
scope, the term Information Systems is a scientific field of study that addresses the range of strategic,
managerial, and operational activities involved in the gathering, processing, storing, distributing, and use
of information and its associated technologies in society and organizations. The term information
systems is also used to describe an organizational function that applies IS knowledge in industry,
government agencies, and not-for-profit organizations. Information Systems often refers to the
interaction between algorithmic processes and technology. This interaction can occur within or across
organizational boundaries.

Marketing Information System (MkIS)

A marketing information system (MkIS) as Jobber (2007) defines it as a "system in which marketing
data is formally gathered, stored, analyzed and distributed to managers in accordance with their
informational needs on a regular basis." In addition, the online business dictionary defines Marketing
Information System (MkIS) as “a system that analyzes and assesses marketing information, gathered
continuously from sources inside and outside an organization or a store.
”Furthermore, “an overall Marketing Information System can be defined as a set structure of procedures
and methods for the regular, planned collection, analysis and presentation of information for use in
making marketing decisions.”

(Kotler, at al, 2006) Developing a MkIS system is becoming extremely important as the strength of
economies rely on services and to better understand the specific needs of customers. it more broadly as
"people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and
accurate information to marketing decision makers.”

The main benefit of MkIS systems is to integrate market-monitoring systems with strategy development
and the strategic implementation of policies and processes that help capture and act on customer
management applications with marketing decision support systems.

The six components that must come together in order to produce information systems are:
An information system (IS) can be any organized combination of people, hardware, software,
communications networks, data resources, and policies and procedures that stores, retrieves, transforms,
and disseminates information in an organization. People rely on modern information systems to
communicate with one another using a variety of physical devices (hardware) ,

Information processing instructions and procedures (software), communications channels (networks),

and stored data (data resources). Although today’s information systems are typically thought of as
having something to do with computers, we have been using information systems since the dawn of
civilization. Even today we make regular use of information systems that have nothing to do with a
computer.

1. Hardware: The term hardware refers to machinery. This category includes the computer itself,
which is often referred to as the central processing unit (CPU), and all of its support
equipment’s. Among the support equipment’s are input and output devices, storage devices and
communications devices.
2. Software: The term software refers to computer programs and the manuals (if any) that support
them. Computer programs are machine-readable instructions that direct the circuitry within the
hardware parts of the system to function in ways that produce useful information from data.
Programs are generally stored on some input / output medium, often a disk or tape.
3. Data: Data are facts that are used by programs to produce useful information. Like programs,
data are generally stored in machine-readable form on disk or tape until the computer needs
them.
 4. Procedures: Procedures are the policies that govern the operation of a computer system.
"Procedures are to people what software is to hardware" is a common analogy that is used to
illustrate the role of procedures in a system.
5. People: Every system needs people if it is to be useful. Often the most over-looked element of
the systems is the people, probably the component that most influence the success or failure of
information systems.
6. Feedback: it is another component of the IS, that defines that an IS may be provided with a
feedback (Although this component isn't necessary to function).
Advantages of Marketing Information System
If you are a marketing manager or business owner, finding effective ways to market your business is
vital. Marketing information becomes even more important if you are part of a crowded market with
many competitors or you have a product that isn't well known. If you don't have good information, such
as the data found in sales reports, you may end up wasting a lot of time and money on ineffective
marketing activities. An investment in an MkIS system is an effective way to help you organize and
prepare your marketing campaigns. One of the key benefits of an MkIS system is the insight it can
provide about what your customers want and their perceptions of your products. Its main advantages are:

 Organized data collection and a broad perspective

 The storage of important data and an avoidance of crises
 Coordinated marketing plans.
 Speed in obtaining sufficient information to make decisions.
 Data combined and kept over several time periods.
 The ability to do a cost-benefit analysis.
The disadvantages of a Marketing information system are high initial time and labor costs and the
complexity of setting up an information system. Marketers often complain that they lack

Computer system & Central processing unit

Computer is a data processing machine which consists of several interrelated components that work
together as a single unit. The computer system refers to the computer itself and all other components
interconnected to it.

Basically the computer system is categorized into two components:

 Hardware component
 Software component
Computer Hardware
The computer hardware is the physical part of the computer system, which we can touch and see. It
includes electronic devices, which have the potential for performing the task of solving problems.
 The computer hardware is composed of three main components namely:
Central Processing Unit (CPU)
Memory unit (Storage devices)
Input /Output devices
Central Processing Unit (CPU)
The CPU may be a single chip or a series of chips that performs Arithmetic and Logical operations and
controls the operations of the other elements of the system. The CPU follows the instructions of the
software to manipulate data into information. CPU also called as microprocessor, executes program
instructions and performs the computer's processing activity.

In general the CPU has two major functions

 Performing arithmetic and logical operation and
 Controlling every activity of the computer like:
o Controlling internal and external devices
o Controlling memory usage for storing data and instruction.
o Controlling sequence of operation.
The CPU has three major components
 The Control Unit
 The Arithmetic/Logic Unit (ALU)
 Register
Arithmetic/Logic Unit (ALU)
Is the component of the CPU which contains the electronic circuitry that executes arithmetic and logical
operations, that underline all computing capabilities and controls the speed of those operations.

 Arithmetic unit:- perform actual computing and calculations based on Fundamental mathematical
operations: addition, subtraction, multiplication, and division
 Logical unit: - based on the instruction provided to it, perform logical comparison between data
items. The comparison determines whether one information is greater than, less than or equal to
the other. That is, A = B, A > B, A < B, A>=B, A<=B

Control unit
The control unit is like the human brain and it controls all of the activities of computer. It directs the
entire computer system to carry out every activity. That is, regulates the operations of the entire
computer system, reads instruction from a memory and translates it into an activity; and regulates the
amount of CPU time that each operation may consume.
  All computer activities are carried out according to instructions that the control unit receives.
 Fetches and store data and instruction from memory to register and vise verse.
 It receives an instruction, decodes/ interprets and passes it to the ALU for execution.
 The control unit does not actually execute the instructions (just as the brain does not do the
walking or the talking); rather it instructs or directs other processing elements to do so.
 The control unit tells the rest of the computer system how to carry out a program's instructions.
 It directs the movement of electronic signals between:
o Main memory and the arithmetic/logic unit
o Main memory and the input and output devices
Registers
Registers are special high-speed circuitry areas that temporarily hold data, keep track instructions, and
hold the location and results of operations under the control of CU.

 Are thought of as the CPU's working memory.

 Registers are contained in the processor and hold data to be processed immediately.
 Used to temporarily store data and instruction that relate to the process being executed
 Data and program instructions are loaded from main memory into the registers just before
processing
Memory unit
Computer systems need to store data and instruction internally or external to the system. Memory is a
location that holds data and instruction in a computer and is located on the motherboard inside system
unit.
There are two categories of memories:
 Primary memory/storage
 Secondary memory/storage
Primary memory (Main /Internal Memory)
Main memory is part of the computer that holds data and instruction for processing. It is an internal
storage area which is physically located close to the CPU, to decrease access time. The CPU interacts
closely with memory referring to it both for instructions, data and information. Memory provides the
CPU with a working storage area for program instructions and data.
In general Memory can be used:
 To hold data and instruction temporarily receiving from input devices and sending them to output
devices during processing
 To store data necessary while execution
 To provide additional space for programs in execution.
 To hold the computers operating system program
 To hold instructions of application software. E.g. Word processing, spreadsheet, etc.
Main Memory is divided into two
 Random Access Memory (RAM).
 Read Only Memory (ROM)
1) Random-Access Memory (RAM)
 Volatile.
 Both read and write memory.
 Power dependent.
 Holds instructions that frequently required by CPU
 The computer memory working parts.
 Upgradable.
2) Read-Only Memory (ROM)
 None-Volatile.
 Only read memory.
 Power Independent.
 Holds instructions that used to boot and configure the system
 Non-Upgradable.
Secondary memory (External/Auxiliary memory)
Secondary memories are a kind of memory which are external to the main circuit board and connected
through a cable. They have high capacity than primary memory. Unlike RAM, is a part of the computer
that retains data permanently after the power is turned off. Unlike ROM, it is possible to write to the
secondary storage anytime. Secondary storage's can be categorized as:
 Magnetic storage and
 Optical storage
Magnetic storage devices
These are storage devices which are made up of iron oxide particle mixed with a binding agent. They
use a magnetic technology to read and write data from and to the surface of storage area. The most
common types of secondary storage are:
 Magnetic tap
 Magnetic disc
Magnetic tape
 These are a kind of storage device which resemble with a video tape (VHS). Magnetic tape is
approximately one half inch wide is made of magnetized plastic film. Data are stored on a magnetic tape
by running the tape over the electromagnetic read/write head known as tape dive or streamer, which
magnetizes small spots on the tape. It stores data sequentially. And also the data accessing mechanism is
sequential. So to get to the data you are looking for, a computer must read every record (data) preceding
it, for this reason it has slows access time. It is mostly used as a backup (to keep data) in different
organization.
Magnetic disk
These devices store data as charges on a magnetically sensitive medium such as a disk coated with a fine
layer of metallic particles. Magnetic disks allow to store and access information randomly and overcome
the slow access time commonly found in tape files. The most common magnetic disk is hard disks.
The Hard Disk: it is mass storage media found mostly inside the system unit. It uses a spinning
magnetic platter(s), to store bits. Hard disks can store enormous amounts of data, but it HAS lower
access time than RAM. But accessing data from hard disk is faster than accessing data from floppy disk.
They also don't lose their content when the power is turned off.
Optical disk/storage
Optical storage devices use the principle of light (laser technology) to store information. The data is
actually recorded by burning on a tiny hole which is called pitch to store 0’s /1’s.
The common types are: CD, CD-R, DVD, and DVD-R
Compact disk (CD)
CD is a form of data storage device that uses optical material rather than magnetic material. The term
compact disk is used because it use exactly the same format as the audio compact disc. Have three
variation, these are:-
 CD-R (CD Recordable, record/write once but read many times).
 CD-RW (CD rewritable, read/write many times).
 CD-ROM (CD read only memory).
Digital Video Disk (DVD)
 A DVD (stands for Digital Versatile Disc) disc looks just like a CD-ROM, but it can store more than 4
Gigabytes (GB) of information—as much as seven CDs. There are even rumored to be future DVD discs
that can hold up to 17 Gigabytes. Thus, DVDs are often used to store full-length movies and other
multimedia content that requires large amounts of storage space. It requires appropriate DVD deriver to
read/write this type of media. Below here are some variations of DVDs,
 DVD-ROM: stands for a DVD Read-Only Memory. This means you can only read information from a
DVD; you can’t add new information.
 DVD+R: (DVD Recordable) disc. The information you write or burn to a DVD+R is permanent and
can’t be changed or erased.
 DVD+RW (Rewritable) discs, can be re-written to up to 1,000 times. You can also modify and erase
information on a DVD+RW disc. It uses DVD+RW drives which can also write to DVD+R discs.
 DVD-RAM: are rewritable DVD format that can be re-written too many times. DVD-RAM discs are
beginning to look like an orphan format, since they won’t work in most DVD players.
Input/ Output Devices
Input/ Output (I/O) devices are the part of the hardware through which the users communicate with the
machine.
Input devices
Input device are electro mechanical devices that use to feed information to the computer. These devices
enable a computer user to enter data, commands, and program instruction into the computer system.
Examples of common input devices include: Keyboard, Pointing devices, Mice, trackballs, joysticks,
and touch pads, Light pens, microphones, Scanning devices, Digital cameras, Optical data reader.
i. Keyboard
Is the most common input device which used to enter data and instruction? It consists a set of
typewriter-like keys that enable one to enter data into a computer. Consists four types of keys: Typing
keys: include Letters and numbers Function key: found just above the typing key (F1 to F10/F12)
Special purpose keys: arrow keys, caps lock, delete, insert, home etc. Numeric keypad: ( 0to 9, +,- *, /)
ii. Pointing Devices
Theses use to the screen pointer on the screen. The principal pointing tools used with microcomputers
are the mouse, the trackball, the joystick, and the touch pad, all of which have variations.
a. Mouse
Mouse is a hand-operated device that controls the movement of the cursor or pointer on a display screen.
It is a small object that can be rolled along a rough flat surface so that the movement of the device is
translated on to a screen pointer.
b. Joystick
A joystick is a pointing device that consists of a vertical handle, like a gearshift lever, mounted on a base
with one or two buttons. Joysticks are principally used in video games, in some computer-aided
design systems, and in computerized robot systems. Special joysticks do exist for people who are unable
to use a mouse or trackball.
c. Touch pad
Touch pads let you control the cursor/pointer with your finger. Touch pads are flat, rectangular devices
that use a very weak electrical field to sense your touch. As you move your fingertip, the cursor follows
the movement. Touch pads most found on many portable computer keyboards and on a system with a
built- in screen sensor.
iii. Scanners
Are input devices that can read text or illustrations printed on paper and translate the information into a
form that a computer can use. It uses to translate a visual data in to digital data.
iv. Optical data reader
This includes a different variation of input devices read and input data using light. One example is Bar
code scanners, which used read computer readable code (bar code).
v. microphone
These use to capture and enter voice or sounds in to computer system for processing. Converts a person's
(speech) input into digital form. Often used in multimedia systems.
B. Output Devices
Are devices which used to convert a machine readable code in to human readable by processing
(converting) in to graphical, alphanumeric, or audiovisual form. In general they are a kind of peripheral
device that enables a computer to communicate (send out) information to the user. Common types of
output devices are: Monitor (visual displaying unit), Printer, and speaker
Example Monitor, LCD (liquid crystal display), Printer, Plotters, speaker
Programs: In Charge of the Hardware
Software, instructions that tell a computer what to do. Software comprises the entire set of programs,
procedures, and routines associated with the operation of a computer system. The term was coined
to differentiate these instructions from hardware i.e., the physical components of a computer system. A
set of instructions that directs a computer’s hardware to perform a task is called a program, or software
program.
Based on the goal, computer software can be divided into:
 System software
 Application software
System software: - consists several programs which are directly responsible for controlling,
integrating, and managing the individual hardware component of the computer system. System
software is a generic term for referring to any computer program whose purpose is to help the user to
run the computer and able to make the computer functional. They usually interact either with the
hardware or the application. In general, system software is classified in to:
 Operating system
 Device driver
 Utility

Operating systems
Which are essential collections of software that manage resources and provide common services for
other software that runs "on top" of them. Supervisory programs, boot loaders, shells and window
systems are core parts of operating systems. In practice, an operating system comes bundled with
additional software (including application software) so that a user can potentially do some work with a
computer that only has one operating system.
Operating system is the first layer of software loaded in to the computer working memory. It's a
program that acts as an interface between the user, the computer software and the hardware resources.
It provides a software platform on top of which other program can run. basic function of the operating
system are
 Process management
 Memory management
 Devise management
 File management
 Security management
 User interfacing
 Coordination of communication on the network.
Device drivers
Which operate or control a particular type of device that is attached to a computer? Each device needs
at least one corresponding device driver; because a computer typically has at minimum at least one
input device and at least one output device, a computer typically needs more than one device driver.
Utilities
Which are computer programs designed to assist users in the maintenance and care of their computers?
Utilities are used to protect computer from destructive and malicious software or malware
Malicious software or malware
Which is software that is developed to harm and disrupt computers? As such, malware is undesirable.
Malware is closely associated with computer-related crimes, though some malicious programs may
have been designed as practical jokes. Software is a generic term given for an organized collection of
computer data and instruction. It is a finite set of instructions (steps) that the computer follow to
perform a given job. The set of instruction is also known as programs. Software is a collection of
programs and routines that support the operations of performing a task using a computer. Software also
includes documentations, rules and operational procedures. Software makes the interface between the
user and the electronic components of the computer.
Application Software
Software that uses the computer system to perform special functions or provide entertainment
functions beyond the basic operation of the computer itself. There are many different types of
application software, because the range of tasks that can be performed with a modern computer is so
large—see list of software
Application software is software that is designed to perform tasks in specific areas. It is developed
using language software and includes a set of related programs designed to carry certain task. It usually
called as an application packages as they may include a number of programs along with operating
instruction, documentation and so forth. Depending on their function or task they are categorized in to
the following.
1. Word Processors/ Word processing: is a computerized typewriter that permits the electronic creation,
editing, formatting, filing and printing text. Is the most common application of microcomputers?
Example: WordStar, WordPerfect, Microsoft word
2. Spreadsheet: is an electronic worksheet display on the VDU, which is manly used for accounting
purpose, such as preparing payroll, financial analysis and other mathematical calculation. You can
quickly create a model of a situation on a spreadsheet by entering labels, numbers & formulas. Example:
Example: Lotus 1-2-3, Microsoft Excel
3. Database management system: allow you to store information on a computer, retrieve it when you
need it and update it when necessary. You can do this with index cards, but database management
programs do them more quickly and easily. Example: You can store large mailing list, inventory record
or billing and collect information in lists stored in files and manipulate this information, one file at a
time, with database management program. Example: SQL, Oracle, and Microsoft Access.
What is a database
A database is a large collection of data typically stored in computer systems. This data is organized in a
way that makes it possible to quickly find and manage desired pieces of information. Databases are the
backbone of modern information systems, providing the foundation for managing and organizing vast
amounts of data in various industries.
They are commonly used in business environments to store customer information, financial records,
and inventory data. Educational institutions use databases to manage student records and academic
data. eCommerce platforms utilize databases to store product details, order history, and customer
profiles. Furthermore, databases are vital in scientific research, healthcare systems, government
operations, and many other fields.From small-scale applications to enterprise-level systems, databases
play a pivotal role in real-life scenarios, powering critical operations and driving innovation

You can store information in the database in different ways, known as database models. The relational
database model is the most widely used database model. It uses relations and sets to store the data. In
practice, this looks like data is organized in tables. To access information from a database, you typically
need a database management system.
Database management system(DBMS)
A database management system is a software designed to allow you to create, update, analyze, retrieve
and store data in a computer system. There are many different types of database systems.
A database management system (DBMS) is system software for creating and managing databases. A
DBMS makes it possible for end users to create, protect, read, update and delete data in a database. The
most prevalent type of data management platform, the DBMS essentially serves as an interface between
databases and users or application programs, ensuring that data is consistently organized and remains
easily accessible.

Database use in business

You can use business databases to help organize and manage your customers, your business inventory
and employees. Databases can streamline your:
 customer management processes
 inventory tracking
 employee database
 productivity reporting
 financial reporting
 data analysis
The secret to successfully using database tools and technology is the way in which information is
structured to enable efficient processing, and to help you store and manage data.
Data Storage
Every piece of information you gather in your business is potentially important. Whether it’s a database
of customer accounts and their purchase histories, human resources records for every employee,
financial information such as payroll or accounts receivable, or intellectual property such as
 specifications for your products, that information needs to be stored somewhere so you can access it as
needed to operate your business.
Today, most businesses store that information digitally on computers. The days of endless file cabinets
and paper file folders are swiftly disappearing as modern organizations work toward digital
transformation
Forms of data storage
There are three types of data storage:

1. File storage

Also referred to as file-level or file-based storage, this type is presented as files that are stored in folders
and subfolders in a directory. If you’ve used a PC and saved a document to the hard drive, for instance,
you have experienced file storage. Files are accessible through a path that users must know. File storage
is the most common type of storage on computer hard drives and network-attached storage (NAS)
devices.

2. Block storage

Rather than storing data in a complete file, block storage breaks apart data and stores it in blocks that
can hold 256 KB up to 4 MB. The blocks are then placed randomly on the storage device – which
doesn’t hinder access speeds because each block is tagged with a unique identifier. When a user or
application needs a file, the computer queries the block storage system, which rapidly identifies and
collects all the needed blocks and reassembles them into a complete file. Block storage is ultra-efficient
because it doesn’t use metadata, which takes up room on the storage device. Because it’s so fast,
businesses tend to use block storage when they want to scale up quickly and when read/write
performance is a critical priority.

3. Object storage

This type of data storage separates information into distinct objects with unique identifiers and
metadata. It doesn’t form a hierarchy like file storage and is considered “flat.” Metadata is a critical
component of object storage and each object can have quite a bit of metadata, such as information
about the creator of the data and keywords, as well as policies for security, privacy, and access. Object
storage works well with APIs so it’s simple to use with existing software and systems. It also scales
very well. It could be spread across hundreds or thousands of devices and locations and still be super
speedy because all the data is stored in one namespace. It’s the storage type of choice for public cloud
providers, such as AWS, and organizations that deal with a lot of unstructured data such as video files,
emails, IoT sensor data, social media content, and more.
Types of data storage solutions
There are two main types of digital data storage: Direct-attached storage and network-based storage.
Each type can accommodate a range of devices, so we’ll look at the general types first and then delve
more into specific data storage devices.
1. Direct-attached storage (DAS): Advantages and disadvantages
Sometimes referred to as direct-area storage, DAS is storage that is attached directly to a specific
computer. It can mean the storage space on your computer’s installed hard drive or solid-state drive, or
it can be a removable portable storage medium, such as an external hard drive, CD or DVD, USB drive,
or flash drive.
Advantages of DAS include high availability, easy accessibility, easy backups and recovery, and no
need for network equipment or setup. Scalability is also a breeze, as it simply requires getting a device
with larger capacity. Downsides, however, are that it’s difficult to share data with another user. It
requires physically giving someone else the storage drive. So, data is only accessible by one user at a
time. Sharing among groups is virtually impossible, which means data is siloed.
2. Network-based storage: NAS and SAN
The other main type of data storage is network-based. That means it is a centralized repository of
information that can be accessed by users on networked computers or other networked devices. Instead
of being stored on media directly attached to a single computer, this data is usually stored on servers in
a datacenter.
Network-based storage was created to solve the issue of multiple users accessing the data from remote
locations. These storage types allow for easy data sharing and collaboration, and because they can be
off-site, they are better than DAS for backups and disaster-recovery protection.
Within this type of data storage, there are two common setups: Network-attached storage (NAS) and
storage-area network (SAN).

 NAS

NAS is a single computer or server composed of redundant storage containers or a redundant array of
inexpensive disks (RAID) – such as multiple hard drives – that make data accessible to users over an
internet connection. It’s usually inexpensive and simple to setup and deploy.
This type of data storage offers flexibility and easy scalability. Increasing capacity means simply
adding another hard drive to the existing computer. But because NAS is usually a single machine,
scalability isn’t infinite. NAS creates a single volume of stored data in a centralized location, so users
can access it from anywhere if they can connect to the network.
Advantages of NAS include its relatively low cost, self-contained nature and administrative simplicity.
Data is available anytime and resiliency is high because of the fault-tolerant multiple drives. If one
drive fails, the rest of the system stays up and running.
Disadvantages have mostly to do with performance and scalability. The more users trying to access
data, the slower the system will be. Because it runs over Ethernet, there could also be issues with in-
transit packet loss or mis-ordering, which also slows performance because data isn’t available until all
packets arrive and are reassembled correctly within the system. These performance issues aren’t
typically a problem when files are small. But a user working with very large files, such as video
footage, could see significant slowdowns and disruptions in production.

 SAN

A SAN is made up of a network of multiple devices, such as solid-state drives (SSDs), flash storage
and cloud storage. It’s usually costlier and more complex to setup than NAS. The SAN uses Fibre
Channel instead of Ethernet to network servers and storage devices, which can be an array of
interconnected components. To users, SAN storage looks like local drives on their computers or other
devices.
The advantages of SAN storage are that it’s designed for many more users than NAS. It tends to deliver
faster speeds and lower latency than NAS systems and it’s highly scalable with a variety of device
options and configurations to choose from.
Disadvantages are as mentioned above: It’s more expensive than NAS and more difficult to setup and
manage.