Concept of Marketing Information

System
 Information is the lifeblood of the organization. It emphasizes the critical role
that information plays in the functioning and success of a business or any
organized entity.

 It is the essence for analyzing marketing opportunities and threats.

 The market information is refers to the information related to the various

aspects of the market.

 A Marketing Information System (MIS) is a systematic approach used by

businesses to gather, analyze, and interpret relevant information about their
market environment. The primary purpose of an MIS is to support decision-
making in marketing by providing timely, accurate, and actionable
information.
 Marketing Information System (MKIS) is a structured interacting complex
of people , equipment and procedures to gather, sort and analyze ,
evaluate and distribute pertinent , timely and accurate information for
use by marketing decision makers to improve their marketing planning,
implementation and control.

 By implementing a Marketing Information System, organizations can

enhance their ability to respond to market changes, identify
opportunities, and make data-driven decisions, ultimately improving
their overall marketing effectiveness.

 It is instrumental in helping organizations stay competitive, adapt to

changes, and make well-informed decisions in the dynamic and complex
field of marketing. It is a valuable tool for achieving marketing objectives
and contributing to the overall success of the business.
 The Marketing Information System (MKIS) plays a crucial role in the overall
success and effectiveness of a company's marketing efforts. Here are several
reasons highlighting the importance of a Marketing Information System:

 Informed Decision-Making:
 MIS provides timely and relevant information to decision-makers within the
organization.
 Enables data-driven decision-making, reducing reliance on intuition or guesswork.
 Helps in evaluating the potential impact of various marketing strategies before
implementation.

 Understanding the Market Environment:

 Assists in monitoring and understanding the dynamic marketing environment.
 Provides insights into market trends, customer preferences, and competitive
activities.

 Competitive Advantage:
 Gives organizations a competitive edge by providing information that competitors
may not have.
 Enables quicker responses to market changes and opportunities.
 Resource Allocation:
 Facilitates efficient allocation of resources by identifying areas of high potential and
areas requiring improvement.
 Helps in optimizing marketing budgets based on the most effective strategies.

 Customer Insights:
 Aids in understanding customer behavior, preferences, and expectations.
 Supports the development of targeted marketing campaigns and personalized
customer experiences.

 Product Development and Innovation:

 Provides information on market gaps and opportunities for new product development.
 Facilitates innovation by identifying emerging trends and technologies.

 Risk Management:
 Helps in identifying and assessing potential risks in the market.
 Enables proactive measures to mitigate risks and respond to challenges.
 Marketing Planning and Strategy:
 Forms the foundation for effective marketing planning and strategy development.
 Assists in setting realistic and achievable marketing objectives.

 Performance Evaluation:
 Allows for the evaluation of the effectiveness of marketing activities and
campaigns.
 Facilitates the measurement of key performance indicators (KPIs) to assess the
success of marketing initiatives.

 Adaptation to Change:
 Supports organizations in adapting to changes in the market, industry, or
regulatory environment.
 Enhances flexibility and agility in responding to unforeseen challenges.

 Communication and Coordination:

 Improves communication and coordination among different departments within
the organization.
 Ensures that marketing activities align with overall business goals and objectives.
Components of Marketing
Information System (MIS)
 The subparts or subsystems of MIS are termed as its components.
Generally, there are 4 types of interrelated and interdependent components
of marketing information system
 Internal System related to Records or
Reports
 Internal record or report system is a source of information that is easily
accessible. It includes all marketing operations related reports or records that
are available in an organization.

 The main functioning of this system includes the collection of required

information from records of different internal departments of the organization
and further analyzing, interpreting, and disseminating the collected
information.

 The internal record system takes care of the regular circulation of information
within the organization at fewer efforts and costs.

 The main sources of this type of information include different sales and
purchase records, sales force related reporting system, inventory
stock information, debits and credits, marketing personnel, past
research data and other reports of an organization.
 Different other internal records like orders received, sales
invoices, and stockholdings are also key information resources for
marketing decisions. Different types of information like product type,
size, sales volume, etc. can be derived from the sales invoice.
 Few organizations manage internal record system through MIS committee
who is responsible for:
 Determining different information sources required to collect and analyze
information.
 Taking requests from managers for information required by them.
 Grievance handling of employees.
 Internal Data Bases
1. Customer Relationship Management (CRM) Database
2. Inventory Database
3. Sales Database
4. Financial Database
5. Marketing Database
6. Product Database
7. Top level management decisions
 Internal databases refer to collections of data and information that are
generated, stored, and managed within an organization. These
databases are specific to the internal operations and functions of the
organization. Here are some common types of internal databases:
 Customer Relationship Management (CRM) Database:
 Contains information about customers, including their contact details,
purchase history, preferences, and interactions with the company. Customers
orders and complaints/ CRM databases help organizations manage and
enhance their relationships with customers.
 Inventory Database:
 Manages information related to the organization's inventory, including stock
levels, product descriptions, supplier details, and order history.
 Sales Database:
 Tracks sales transactions, including details such as product/service sold,
salesperson, date, and customer information. This data helps in analyzing
sales performance and trends.
 Financial Database:
 Contains financial data such as income, expenses, profits, and losses.
Financial databases are crucial for budgeting, forecasting, and financial
analysis.
 Marketing Database:
 Stores data related to marketing activities, including campaign performance,
customer responses, and market research findings. This data helps marketers
make informed decisions and optimize their strategies.
 Product Database:
 Manages information about the organization's products or services, including
specifications, pricing, and lifecycle data.
 Top level management decisions:
 Decisions of top level management is a major source of information.
Marketers can use such type of information for taking marketing decisions.
 The structure and content of these databases can vary widely based on
the nature of the organization and its specific needs. Internal databases
are essential for streamlining internal processes, improving decision-
making, and maintaining efficient operations within an organization.
Marketing Intelligence-Based
System
Unlike the Internal Record and Report System, Marketing
Intelligence System facilitates organizations with information
related to the external marketing environment.

 Marketing intelligence involves the systematic gathering,

analysis, and interpretation of data related to market trends,
customer behavior, and competitive activities.

 By utilizing advanced technologies and data analytics, a

Marketing Intelligence-Based System aims to provide
actionable insights and support strategic decision-making in
marketing efforts.
 This system includes processes and sources that managers use to acquire
regular information related to the external marketing environment. Different
methods can be used by managers to obtain different external market
information i.e.
 Print media like newspapers, and other publications
 Television, radio, and Internet
 Conversation with customers, suppliers, etc.
 Information purchased from professional sources
If a marketing intelligence-based system is effective then it can help
managers to:
 Customer Intelligence:
1. Understand customer behavior, preferences, and buying patterns
competitors, customer’s preference changes, sorting out supplier’s
issues,
2. Segment customers based on demographics, psychographics, and
purchasing history.

 Market Trends Analysis:

1. Identify and analyze emerging trends in the industry that could
impact marketing strategies.
2. Stay updated on technological advancements, cultural shifts, and
economic factors influencing the market.
 Real-time Monitoring:
1. Implement real-time monitoring tools to track social media,
online reviews, and other channels for immediate feedback
and sentiment analysis.

 Reporting and Visualization:

1. Present insights in a clear and visual manner through
dashboards, reports, and interactive tools.
2. Facilitate easy interpretation of data by marketing
professionals and decision-makers.

 Decision Support:
1. Provide decision support tools that assist marketing teams in
making informed decisions based on the intelligence gathered.
System Related to Marketing
Research
The Marketing Research System of MIS is not only the most powerful component, but it
is an independent component as well.

 Various systems and tools are employed to collect, analyze, and interpret data to aid
decision-making. These systems play a crucial role in helping businesses understand
market dynamics, customer behavior, and competitive landscapes.

 Detailed information is required by managers in some circumstances to address

specific issues of a particular marketing area. So, this system includes a formal study
related to issues or opportunities. Its main purpose is to sort out different specific
issues.

 Philip Kotler has defined marketing research as a systematic design for collecting,
analyzing, and reporting of data that is relevant to particular marketing circumstances
of an organization.

 The marketing research system includes both primary and secondary data collection
using different tools and methods for a certain time period. It also consists of data
analyzing and further representing the findings in a report form.
Marketing Decision Support
System
 (MDSS)
Unlike the above 3 components of the marketing information system which are
more related to the supply of data or information; the marketing decision support
system (MDSS) is related to processing and analysis of data that is available
through the above 3 components.
 A Marketing Decision Support System (MDSS) is an information system designed
to assist marketing managers in making informed and timely decisions.
 It integrates data, models, and analytical tools to provide support for various
marketing activities and strategies.
 The primary goal of an MDSS is to enhance decision-making processes by
providing relevant information and analysis to address marketing challenges and
opportunities.
 This component of MIS can be helpful in the improvement of efficiency and
utilization of the entire MIS.
 This system is beneficial for managers to make better decisions. MDSS is related
to data collection and analysis, techniques and procedures that also includes
related software and hardware which an organization uses to collect and interpret
required information from the environment and utilize that information for
marketing decisions.
 By providing marketing managers with relevant information and
analytical tools, a Marketing Decision Support System helps improve the
quality and speed of decision-making, contributing to the overall
effectiveness of marketing strategies and campaigns.
 MDSS consists of different tools and techniques that are useful for the
purpose of:
1. Collection of data
2. Analysis of data
3. Results interpretation
 As a support tool in managerial decisions , MDSS is viewed as an
extension of the other 3 components rather than a separate identity.
Different software or statistical tools are useful for marketing managers
in the smooth functioning of their operations i.e. analyzing, planning,
and controlling. There are two sub-components of the MDSS i.e.
a) The Statistical Bank
 It includes quantitative tools that help in the marketing decision-
making process. It is also termed as Operations Research.
 Different statistical tools that are used for analyzing data are:
1. Simple statistical methods like averages, median, mode, etc.
2. Regression-multiple regression analysis
3. Discriminate analysis
4. Factor analysis
5. Correlation analysis
6. Cluster analysis
7. Conjoint analysis
8. Input-output analysis
9. Multidimensional scaling, etc.
 b) The Model Bank
 This subcomponent consists of models to support decisions. These
models and software help managers to take effective marketing
decisions. Different models that are used often include:
1. The Markov-Process Analysis
2. Queuing Model
3. New Product Pretest Models
4. Sales Response Model
5. Discrete Choice Model
6. Differential Calculus
7. Mathematical Programming
8. Statistical Decision Theory
9. Game theory, etc.
Marketing Research Process
 Strong market research helps in a successful marketing strategy.
 The marketing research process is a systematic and organized series of
steps that businesses and organizations follow to gather, analyze, and
interpret information about a market, its potential customers, and the
competitive landscape.
 An effective marketing process requires the firm support of research and
data. The goal is to make informed decisions based on data and insights.
 Here are five steps in the marketing research process:
 1. Define the Problem
Determining the problem is the foundation, so it is important to identify
the objective of your research clearly and what problem it will be
addressing.
 Clearly articulate the problem or opportunity that requires research.
 Establish specific objectives and goals for the research.
Consider the question, “Why are sales declining?” In this scenario, the
study might look into whether the product being offered is losing its
attractiveness to customers as a result of increased competitors or issues
such as outmoded capabilities.
 2. Develop your Research Plan
Once the problem is determined, the next phase is to formulate and
design the research plan. In this phase, you have to decide what type of
research you will be conducting and from which sources.
 Determine the type of research needed (exploratory, descriptive, or
causal).
 Identify the target audience or participants.
 Choose the research methods (qualitative or quantitative).
 Decide on the data collection techniques (surveys, interviews,
observations, etc.).
 Develop a sampling plan if applicable
3. Conduct Research
In this step, you have to collect valid and unbiased data. Implement the
research plan and collect relevant data. The researcher must collect the
necessary information according to the objectives and design of the
research.
 Use primary data (collected for the specific purpose) or secondary
data (existing data from various sources).
 Ensure the reliability and validity of the data collected.
 4. Interpret Data and Report
Findings
 After gathering all the relevant customer and marketing data, it has to
be analyzed to determine what it all means and what trends are
distinguishable from the information.
 Analysis of the information or data involves presenting them in a
summarized form (form of tables, graphs, average, percentage
etc.)comparing the differences and examining the relationships between
the variables.
 Draw conclusions based on the data analysis.
 Relate the findings to the initial problem or opportunity.
 Assess the implications of the results for the business or organization.
5.Take Action and Solve
Problems
 This is the last phase is to come out with results or findings in clear
terms i.e where your research is complete, and the owner can use the
results to apply to their business’s marketing plans.
 This is when a company would start a marketing campaign. When
done successfully, your research will prove very helpful in developing
business strategies as well as improving your company’s services by
solving problems that customers have.
 Some people may break this marketing process into additional steps,
but these five basic steps mentioned above are all you need to make a
good start.