Marketing information systems are crucial tools that assist marketing managers and business owners in making product development and promotional decisions. In this post, you\u2019ll learn what a marketing information system is with examples, why they\u2019re crucial, and how firms use them in practice.<\/p>\n
A marketing information system (MIS) is a piece of software that gives data on marketing studies. It enables users to compile and evaluate data in a simple and well-organized manner. MIS systems are also useful tools for assisting users in making decisions on consumer behavior and the marketing mix, such as product placement, pricing, and promotion. The more information a management information system can supply, the more sophisticated it is.<\/p>\n
But then every marketing operation works in tandem with the conditions that exist both inside and outside the company, and as a result, there are a variety of sources (internal, marketing intelligence, and marketing research) from which relevant market information can be collected.<\/p>\n
Within an organization, a marketing information system ensures effective communication. It provides reliable and useful information to team members in order to keep all internal teams informed and focused on specific tasks and goals. Furthermore, by giving everyone the same access to shared information, it also helps eliminate misinterpretation.<\/p>\n
Using a marketing information system can also help your company\u2019s overall success. You can make smarter, more strategic decisions by studying and comprehending well-organized data. You might also discover new ways to upgrade or expand your systems in order to collect and analyze data more effectively and build a more efficient company.<\/p>\n
The following are major components of the marketing information system.<\/p>\n
For the most part, internal records include sales data, customer databases, product databases, financial data, and operations data, among other things. The following is a full explanation of the internal data sources:<\/p>\n
A marketing intelligence system delivers information about market events; i.e. information about the marketing environment outside of the firm. It contains information on changing market trends, competition pricing strategies, changes in customer tastes and preferences, new items introduced to the market, competitor promotion plans, and so on.<\/p>\n
In addition, organizations can purchase information about the marketing environment from research firms that conduct studies on all market participants.<\/p>\n
This is the systematic collecting, organization, analysis, and interpretation of primary or secondary data in order to discover solutions to marketing challenges.<\/p>\n
Several companies use statistical methods to study the marketing environment, which includes changes in client tastes and preferences, competition strategies, the breadth of new product launches, and other factors. To perform market research, data must be acquired, which can be either primary data (first-hand information) or secondary data (information obtained from other sources); second-hand data, available in books, magazines, research reports, journals, etc.<\/p>\n
The secondary data is publically available. However, for original data, you\u2019d need to obtain those from using questionnaires, personal interviews, surveys, seminars, and other means.<\/p>\n
Marketing research plays an important role in the marketing information system because it provides factual data that has been thoroughly tested by researchers.<\/p>\n
This system consists of numerous software packages that marketers can utilize to examine the data they\u2019ve gathered so far and make better marketing decisions.<\/p>\n
The introduction of computers allows marking managers to save large amounts of data in a tabular format, evaluate the data using statistical algorithms, and make decisions based on the findings.<\/p>\n
As a result, marketers must keep an eye on the marketing environment. This includes both internal (inside the company) and external (outside the organization). In the end, it helps to establish marketing policies, processes, and strategies that are appropriate.<\/p>\n
To influence decision-making, marketing information systems use a sequential process to synthesize data and discuss insights. The steps in the marketing information system process, at a glance, are as follows:<\/p>\n
Because every piece of knowledge has both potential and an actual cost, It is critical to carefully choose the subject or area that requires the use of a marketing information system, as well as the appropriate metrics to use.<\/p>\n
The relevant data is then collected according to the selected KPIs from various internal and external sources (books of accounts, sales records, sales reports, and analytics) (customer surveys, economic or financial metrics, social media insights, and competitor results).<\/p>\n
The collected data must then be structured and presented on a graph in a systematic manner to allow for comparative analysis, future prediction, and interpretation.<\/p>\n
Now you\u2019d need to distribute the graphical information to various departments so that the data may be better interpreted and analyzed. This\u2019d ensure that businesses make decisions in accordance with corporate goals.<\/p>\n
The final stage is to determine the best course of action and implement it in the business to improve marketing results.<\/p>\n
Like we\u2019ve mentioned on countless occasions, the marketing information system has made it easier for marketing managers to make decisions. It has also proven to be a beneficial tool for the strategic planning of business activities.<\/p>\n
Let\u2019s have a look at some of its other importance:<\/p>\n
Marketing information systems make global shopping and other international trade activities easier for businesses. The goal is to address their information demands while also keeping them informed about the global situation.<\/p>\n
It is a useful tool for future decision-making involving strategic, operational, and control considerations.<\/p>\n
A marketing information system evaluates market demand and potential sales to guarantee that a company plans its marketing operations effectively.<\/p>\n
MIS aids in implementing non-price competition techniques. It makes the brand image, product customization, product differentiation, public relations, supplementary services, and other things easier. This helps to keep customers without having to compete on price.<\/p>\n
It also gives data on client needs. Thus, through marketing research, creating a need for those things that the consumer\u2019s subconscious mind desires, and then satisfying those wants in reality.<\/p>\n
A marketing information system focuses on a problem area and makes the appropriate judgments to prevent wasting time, money, and effort on ineffective operations.<\/p>\n
It allows for the systematic organization of obtained data in order to provide helpful information for future marketing planning and decision-making.<\/p>\n
A marketing information system aids in the monitoring and evaluation of marketing operations and programs. It also allows for corrective action in the event that the desired results are not achieved.<\/p>\n
It monitors any changes in the economic, political, technological, and competitive settings on a regular basis. It aids in seizing fresh chances and preparing for future obstacles.<\/p>\n
The management of corporate activities has become a lot easier than it was before, thanks to technological advancements and modernization. With just a single click, we can now stay up with current events and recent developments on our computers.<\/p>\n
In a marketing information system, there are various types of data. The following categories are the most common:<\/p>\n
Storage of large volumes of marketing and sales data, as well as client information, often go into specific databases. And certain organizations may be able to gain access to these databases for little or no expense.<\/p>\n
Businesses can use the data they buy to help them make better, more informed decisions by entering it into their marketing information system. Companies that specialize in gathering data on business trends, consumer behavior, and business trends, for example, and developing reports to sell are available. Similarly, businesses can buy data from government databases to learn about the demographics and economics of firms, groups, or specific individuals.<\/p>\n
Internal company data can be turned into valuable insights using marketing information systems. You could, for example, use data from marketing activities or sales to generate reports. You can also use your marketing information system to acquire information about specific individuals, departments, or business units by integrating it with an internal company communications network or intranet.<\/p>\n
You can use marketing information systems to acquire insights from the marketing intelligence data you collect about your target market. Consider gathering marketing intelligence data from your competitors\u2019 websites or industry trade journals, for example. You might also look into less automatic and more manual solutions like speaking with distributors, making observations, attending trade events, or testing products.<\/p>\n
Market research and data from custom and syndicated research reports, as well as primary and secondary research, can be integrated using marketing information systems. It\u2019s critical to gather as much specific and unique data as possible, particularly about your customers, competitors, and overall business environment. This will enable you to gain more useful information and make better decisions.<\/p>\n
The amount of information required by a business on a daily basis is enormous in today\u2019s increasingly competitive and developing industry. As a result, they must set up a Marketing Information System. Marketing information systems have a number of advantages and disadvantages too.<\/p>\n
The market can provide a wealth of information. However, the keyword here is \u201corganized.\u201d Data organization is critical; else, the data is worthless. As a result, MIS aids in the organization of your database, resulting in increased productivity.<\/p>\n
With the right MIS in place, you can track the entire organization, which can be used to analyze independent processes. This aids in the development of a broader viewpoint, allowing us to determine which activities can be taken to support improvement.<\/p>\n
In the pharmaceutical industry, it is not uncommon for data from a previous drug to be required when a new drug is being developed. Photographs are archived in the same way in the media. This significant data storage is critical for execution, demonstrating that a Marketing Information System, in these examples, is vital not just for information but also for execution.<\/p>\n
The best approach to evaluate a stock in the stock market is to look at its prior performance. MIS aids in the tracking of margins and earnings. With a great information system in place, you\u2019ll be able to see where your company is headed and possibly avoid a catastrophe before it occurs. Ignoring hints from MIS reports is a bad idea.<\/p>\n
Consumer durables and fast-moving consumer goods (FMCG) organizations have a large number of processes that must be coordinated. These businesses rely entirely on MIS to keep their operations functioning smoothly. In such firms, there are people who are solely responsible for marketing information systems. This is primarily due to the speed with which information must be accessed and implemented.<\/p>\n
Like we mentioned earlier management information systems (MIS) are essential for planning. You can\u2019t plan without knowing what you\u2019re doing. The capabilities of the organization must come first in planning, then the business environment, and finally competitor analysis. All of these are present by default in a good MIS which undergoes updates on a regular basis. As a result, MIS is critical for planning and analysis.<\/p>\n
Just as MIS can assist in a crisis, it can also assist in normal times, providing some sort of control. This is achievable by providing information about the various processes in progress and what is happening throughout the company. As a result, it gives you a sense of control.<\/p>\n
However, marketing information systems have a number of drawbacks, including maintenance, complexity, and setting up the systems. Furthermore, incorrect data being fed into MIS can be inconvenient, necessitating the establishment of appropriate filters.<\/p>\n
The high initial time and labor costs, as well as the complexity of setting up an information system, are disadvantages of a Marketing information system. Marketers often claim that they don\u2019t have enough or the correct kind of marketing information, or that they have too much of the wrong kind.<\/p>\n
\u201cBecause of the rapid changes in the external market, marketing data should be collected on a frequent basis.\u201d According to Bhasin, the following are some of the potential risks that the company could face if they do not follow the rules:<\/p>\n
Overall, the key impediments to marketing information systems are maintenance, complexity, and setting up an MIS. Furthermore, incorrect data being input into MIS can be inconvenient, necessitating the establishment of appropriate filters.<\/p>\n
\u201cBoth primary and secondary types of research give lots of the data and information needed for marketers,\u201d Kotler and Philip write, \u201cwhereas secondary data sources are significantly superior in providing data quickly and at a reduced cost.\u201d<\/p>\n
Simultaneously, a company may not be able to find all of the data required on its own, but it may be possible to do it with the support of secondary research. However, in order to ensure accuracy, updates, and fairness, researchers must examine data collected from both primary and secondary data sources. Each of the three basic data gathering methods \u2013 observational, survey, and experimental \u2013 has benefits and drawbacks. Similarly, each research contact technique \u2014 mail, phone, human interview, and online \u2013 has its own set of benefits and cons. All of which will affect the end result of what an MIS has to offer.<\/p>\n
As the following two examples demonstrate, the marketing information system is evolving.<\/p>\n