Marketing information system

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marketing information system ( MkIS ) is a management information system (MIS) designed to support marketing decision making . 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 evaluates marketing information, [1]Furthermore, “an overall Marketing Information System can be defined as a set of procedures and methods for the regular, planned collection, analysis and presentation of information for use in making marketing decisions.” (Kotler, at al, 2006)

Overview

Reid and Bojanic (2010), “The term market research is relatively new to the market information system (MkIS), which is one of the most important sources of information . major objective is a one-time use. ” [2]

“A marketing information system, which continuously collects the initial, routine and systematic data, is not only used for the purpose of monitoring the success of marketing success.” [2]

Importance

Developing a MkIS system is becoming extremely important as the strength of economies rely on services. Kotler, et al. (2006) Defined, “Evaluate, Evaluate, Evaluate, Evaluate, Evaluate, Evaluate, Evaluate.” [3]

Insofar as an economy focuses on services, marketing is important to “monitor the marketing environment for changes in buyer behavior competition, technology, economic conditions, and government policies.” [4] In this sense, the role of marketing is becoming pivotal for an organization to “adapt to changes in the market environment.” (Harmon, 2003)

As an economy subsequently assembled on the acquisition of knowledge, MKIS systems are Necessary to be reliable and to define Differentiate the value proposition That One organization Provides with respect to Reviews another, as well as to define Their competitive advantage . (Harmon, 2003)

The main benefit of MKIS systems is to integrate market-monitoring systems with strategy development and the implementation of strategic policies and processes That help capture and act is customer management applications with marketing decision support systems . This area consists of marketing intelligence that supports the analysis and market based activities that support customer relations and customer service with real time.

Relevance of MkIS

the development of the markets and the growth of the competition and the importance of adoption and implementation by the competitors and the response of the consumers towards them. Analyzing the needs for MkIS from a third person’s perspective, the information explosion, increasing the complexity of decision-making and the development. “[5]

Marketing Research (MR) and MkIS

In addition, the information provided in the marketplace may be generated by studies, which is The following are some of the aspects of MkIS and MR that are presented in Table 5.1 as shown below:

Table 5.1 Showing contrasting characteristic of MR and MkIS

Marketing Research Marketing Information System
1.Emphasis is on handling external information 1.It handles both internal and external data.
2.It is concerned with solving problems. 2. It is concerned with preventing and solving problems.
3.It operates in a fragmented fashion – we have project-to-project basis. 3.It does not work without a system.
4.It tends to focus on past information. 4.It tends to be future oriented.
5.It is a source of input for marketing information system. 5.It includes other subsystems besides marketing research.

The business function of marketing is concerned with the planning, promotion and sale of products in existing markets and the development of new products and new markets. A successful business function in the operation of a business enterprise. Business firms Who turned to computers-have-been reliable to perform vital marketing function Effectively for organisms’ growth in the face of global competition. ” [5]

Main Structure

According to Robert Jamon (2003), MkIS systems are decomposed on four components: (1) user interfaces, (2) application software, (3) databases, and (4) system support. The following is a description of each one of these components.

  1. User interfaces. The essential element of the MAKINAS is the managers who will use the system and the interface they need to effectively analyze and use marketing information. The design of the system will depend on what type of decision makers need to make.
  2. Software application. These are the programs that make decision makers use to collect, analyze, and manage data for the purpose of developing the information necessary for marketing decisions.
  3. Database marketing. A marketing database is a system in which marketing data files are organized and stored.
  4. System support. This component consists of system managers who manage and maintain the system assets including software and hardware network, monitor its activities and ensure compliance with organizational policies.

MkIS systems include Marketing Decision Support Systems (MDSS), which in turn rely on such systems as Microsoft Excel , SPSS , and on-line analytical tools that help collect data. Data compiled for analysis is stored and processed from a data warehouse , which is simply a data repository system that helps the data store and further processes data collected internally and externally. (Harmon, 2003)

Databases

From Pride and Ferrell (2010), “Internal database is a part of the most marketing information systems.” In addition, it is relatively convenient for access and retrieval of information. : corporate sales reports, news articles, government news reports, bibliographies, and more, often accessed through a computer system. ” [6]

Internal Data

In with Birn (2004), “Internal data is a part of the data that is needed to be collected and handled by the marketing information system. The following is essential:

  • Sales data, presented in a graphic format, may provide regular sales information.
  • Price information by product line, compare with competitors, can monitor market trends; analyzed by customer type.
  • Supply and distribution of information in the marketplace or supply of information.
  • Market support information, coordinating the effects of marketing promotions, through advertising, direct marketing, trade incentives, consumer competitions and so on.
  • Competitive information, which can be competitive, can improve competitiveness and improve market targeting. ” [7]

Environmental scanning

Sandhusen (2000), which is an environmental scanning of the nature of MIS processed. “It gives assistance to the marketers to develop the strategies, policies, plans and to make programs and budgets through dealing with the ongoing information on trends.” [8]

Kotler’s Model

According to Philip Kotler, the four components that comprise the MkIS system are Internal Reports (Records) System, Marketing Research System, Marketing Intelligence System, and Marketing Decision Support System.

1.Internal Reports System: It records various data from different departments of a company, which is considered as a major source of information.

2.Marketing Intelligence System: It is a handbook used by managers to gain insight into the future.

3.Marketing Research System: It is used to collect primary and secondary data, and displays the results in forms of reports.

4.Marketing Decision Support System: Compared to the supply of the data by the three previous systems, it focuses on the data processing. [9]

Advantages, Limitations & Possible Risks

Advantages

Bhasin stated that, “With an increasing competitive and expanding market, the amount of information needed by the organization is profound.” They have to establish a marketing information system.

  • Organized Data Collection – MkIS can help the managers to organize their data collection from the market, thus results in an increment in the productivity.
  • A broad perspective – With a proper MkIS in place, the organization can be tracked which can be used to analyze independent processes. This helps in establishing a perspective perspective which helps us make progress.
  • Storage of Important Data – The storage of important data is essential for the implementation of this data.
  • Avoidance of Crisis – The best way to analyze a stock (share market) is to see its past performance. Top websites like moneycontrol thrive on MIS. Similarly, MIS helps you keep track of margins and profits. With an amazing information system established, organizations can be analyzed and probably crises averted before they place.
  • Co-ordination – Sustainable Consumer and FMCG companies co-ordinated. These companies depend completely on the proper running of the organization.
  • Analysis and Planning – MkIS plays a crucial role in planning, considering the planning procedure requires information. For planning, the first thing which is needed is the organizational capabilities, then the business environment and finallycompetitor analysis. In a proper MkIS, all these are present by default and are continually updated. Therefore, MkIS is very important for planning and analysis.
  • Control – Just like MkIS can help in a crisis, in normal times it provides control of the various processes going on and what is happening across the company. ” [10]

Possible risks

“Nevertheless, the collection of marketing information should be subject to a high-frequency manner in the external market.” The possible risks the business may face if they are disobey the way to Bhasin are: [11]

  • Opportunities may be missed.
  • There may be a lack of awareness of environmental changes and competitors’ actions.
  • Data collection can be difficult to analyze over several time periods.
  • Marketing plans and decisions may not be properly reviewed.
  • Data collection may be disjointed.
  • Previous studies can not be stored in an easy to use format.
  • Time lags may result if a new study is required.
  • Actions may be reactionary rather than anticipatory.

MkIS is one of the major hindrances to marketing information systems. Furthermore, wrong information being fed into MkIS can become cumbersome and appropriate filters need to be established. [10]

Limitations

Kotler and Philip have said that “both primary and secondary market researches are more relevant to the marketplace, and that they are more likely to be able to use the same data. The primary data collection method – observational, survey, but not necessarily required, and similar – each of the various research methods – email, telephone, personal interview, and online – also has its own advantages and drawbacks. ” [12]

Rural Marketing Information System (RuMIS)

A RuMIS is necessary not only for corporate products and services for rural areas. RuMIS is required by the agriculturists and farmers who have enormous decis ion-making to do. [13]

References

  1. Jump up^ Marketing information system, Business Dictionary
  2. ^ Jump up to:b Reid, Robert D .; Bojanic, David C. (2010). Hospitality Marketing Management (5th ed.). New Jersey: John Wiley & Sons, Inc. p. 209. ISBN  9780470088586 .
  3. Jump up^ Kotler, Philip ; Keller, Kevin Lane (2006). Marketing Management (12 ed.). Pearson Education.
  4. Jump up^ Robert R. Harmon. (2003). Marketing Information Systems. Encyclopedia of Information Systems, Vol. 3. Elsevier Science (USA), 137-151.
  5. ^ Jump up to:b Shajahan, S .; Priyadharshini, R. (2004). Management Information Systems . India: New Page International (P) Ltd. p. 99. ISBN  8122415490 .
  6. Jump up^ Pride, William M .; Ferrell, OC (2010). Marketing . Canada: Cengage Learning, Inc. p. 148. ISBN  9780547167473 .
  7. Jump up^ Birn, Robin (2004). The Effective Use of Market Research: How to Drive and Focus Better Business Decisions (4th ed.). Great Britain: Kogan Page Limited. p. 22. ISBN  074944200X .
  8. Jump up^ Sandhusen, Richard L. (2000). Marketing (3rd ed.). Canada: Barron’s Educational Series. p. 165. ISBN  9780764112775 .
  9. Jump up^ Jaideep, S. (2015). “MIS: Marketing Information System (With Diagram)”. YourArticleLibrary . Retrieved 1 Nov 2015 .
  10. ^ Jump up to:b Bhasin, Hitesh (23 October 2015). “8 Advantages of Marketing Information Systems” . Marketing 91 . Retrieved 23 Oct 2015 .
  11. Jump up^ Bhasin, Hitesh (23 Oct 2015). “MIS – Marketing information system” . Marketing 91 . Retrieved 23 Oct 2015 .
  12. Jump up^ Kotler, Philip; Armstrong, Gary (2010). Principles of Marketing (13th ed.). United States of America: Pearson Education, Inc. p. 153. ISBN  9780137006694 .
  13. Jump up^ Singh, Awadhesh Kumar; Pandey, Satyaprakash (2005). Rural Marketing: Indian Perspective . India: New Age International (P) Ltd. p. 114. ISBN  8122416837 .