MARKETING

INFORMATION SYSTEM
 Is 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.
 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)
CHARACTERISTIC OFMARKETING INFORMATION SYSTEM
1. It handles both internal and external data.
2. It is concerned with preventing as well as
solving problems.
3. It operates continuously as a system.
4. It tends to be future oriented.
5. It includes other subsystems besides marketing
research.
COMPONENTS OF MARKETING INFORMATION
SYSTEM

1. Internal Reports (Records) System

2. Marketing Research System

3. Marketing Intelligence System

4. Marketing Decision Support System

COMPONENTS OF MARKETING INFORMATION
SYSTEM

1. Internal Reports (Records) System

2. Marketing Research System

3. Marketing Intelligence System

4. Marketing Decision Support System

 Internal Reports (Records) System

It records various data from different department of a

company, which is regarded as a major source of
information.
It is supported by transaction processing systems(TPS)
which consists of computer hardware and software hosting
a transaction-oriented application that performs the
routine transactions necessary to conduct business.
Examples include systems that manage sales order entry,
airline reservations, payroll, employee records,
manufacturing, student registration and shipping
Internal Reports System cont…
Example of TPS is ATM (or the Automated
teller machine)'s purpose is that of allowing
the user to partake in financial transactions.
This Transaction Processing system is a real
time processing system
Processing types: Batch processing, Real-
time processing ,Transaction processing,
Performance, Data integrity, etc.
 Marketing Intelligence System
It is a main source used by managers for gaining
daily information of the external environment, hence
assists the managers to react to the changing rapidly
Market intelligence includes the process of
gathering data from company's external
environment like online sources - news websites,
company websites, secondary data sources, social
media, whereas the business intelligence process is
based primarily on internal recorded events – such
as sales
 Marketing Intelligence System Cont…
Many marketing problems and opportunities
can be solved by gathering information from
a company’s daily operations and analyzing it.
Market intelligence involves gathering
information on a regular, ongoing basis to
stay in touch with what’s happening in the
marketplace
Marketing Research System

It is used to collect primary and secondary data,

and displays the results in forms of reports.
 It relates to information and data collection
methods which provide a coherent representation
of a need and its potential solutions. The system
may be used for ongoing monitoring of the
marketplace or on a step by step evaluation of a
product concept
 Marketing Research Cont…
Marketing research is what a company
has to resort to if it can’t answer a
question by using any of the types of
information such as market intelligence,
internal company data, or analytics
software applied to data. Marketing
research is generally used to answer
specific questions
 Marketing Decision Support System
A decision support system (DSS) is a computerized
program used to support determinations, judgments,
and courses of action in an organization or a business.
Are a class of computerized information system that
support decision-making activities.
DSS are interactive computer-based systems and
subsystems intended to help decision makers use
communications technologies, data, documents,
knowledge and/or models to complete decision
process tasks
Marketing Decision Support System cont..
Typical information that a decision support
application might gather and present includes:
inventories of information assets (including
legacy and relational data sources, data
warehouses, and data marts),comparative sales
figures between one period and the next,
projected revenue figures based on product
sales assumptions
 Characteristics of DSS

1. Organize information intended for use in

decision making.
2. Allows decision maker to interact with it in a
natural manner.
3. Supports decisions involving complex problems
that are formulated as semi structured.
4. Supports the decision process that leads to a
solution
 DSS focus on :
Descriptive analytics: Metrics such as sales results,
inventory turnover and revenue growth.
Diagnostic analytics: Diagnostic information that digs a bit
deeper to reveal results and explains reasons for past
performance as measured by descriptive analytics.
Business intelligence (BI): Although largely based on
historical data, BI solutions allow users to develop and run
queries that are used to guide and support decision-
making.
ERP dashboards: User-configurable dashboards that allow
WAYS OF IMPROVING MARKETING INTELLIGENCE SYSTEM

Train and Motivate Sales Force: A company's sales

force can be an excellent source of information
about the current trends in the market. They are
the "intelligence gatherers" for the company. The
acquired facts can be regarding the company's
market offerings, whether any improvements are
required or not or is there any opportunity for new
products, etc. It can also provide a credible source
to know about competitor activities, consumers,
distributors, and retailers
WAYS OF IMPROVING CONT…
Motivate Distributors, retailers, and other
intermediaries to pass along important
intelligence: Specialists are hired by companies to
gather marketing intelligence. In order to measure
the quality of production, the way the employees
are behaving with customers, quality of facilities
being provided; retailers and service providers
send mystery shoppers. Firms can also assess the
quality of customer experience with the shops
with the use of mystery shoppers
 WAYS OF IMPROVING CONT…
Network Externally: Every firm must keep a tab
on its competitors. Competitive intelligence
describes the broader discipline of researching,
analyzing and formulating data and information
from the entire competitive environment of any
organization. This can be done by purchasing the
competitor's products, checking the advertising
campaigns, the press media coverage, reading
their published reports, etc. Competitive
intelligence must be legal and ethical
 WAYS OF IMPROVING CONT…
Set up a customer advisory panel: Companies
can set up panels consisting of customers. They
can be the company's largest customers or
representatives of customers or the most
outspoken customers. Many business schools set
up panels consisting of alumni who provide their
knowledge and expertise and help in
constituting the course curriculum.
 WAYS OF IMPROVING CONT…
Optimal usage of Government data resources:
Governments of almost all countries publish
reports regarding the population trends,
demographic characteristics, agricultural
production and a lot of other such data. All this
data must be or can be referred to as base data.
It can help in planning and formulating policies
for the companies.
 WAYS OF IMPROVING CONT…
Information bought from external suppliers:
Certain agencies sell data that can be useful
to other companies. For example, television
channels will require information on the
number of viewership, ratings of TV
programs, etc. An agency that calculates this
information and generates this data will
provide it to companies that need it.
 WAYS OF IMPROVING CONT…
Collect Competitive Intelligence through online
customer feedback: The customer's view of a product is
essential for any company. Ultimately it's the customer
who's buying the product. Hence customer feedback
must be taken. Online platforms like chat rooms, blogs,
discussion forums, customer review boards can be used
to generate customer feedback. This enables the firm to
understand customer experiences and impressions. It
becomes easier for companies to apply a structured
system to do so as it can then scan out the relevant
messages without much of a trouble
 Benefits of Marketing Information System (MIS)

1. Prediction of Consumer Demand

2. Identification of Marketing Complexity
3. Facilitates up-to-date Economic Information
4. Up-to-date Information on Technology
5. Proper flow of Information for better
Customer Service
6. Facilitates Marketing Planning Activities
 FUNCTIONS OF MARKETING
INFORMATION SYSTEM
1. Assembling of marketing data.
2. Processing, i.e., editing, tabulating and summarizing
the data.
3. Analyzing the data, i.e., filling out percentage, ratios,
test of significance, etc.
4. Storage and retrieval, i.e., filing and indexing.
5. Evaluating regarding accuracy and reliability of data.
6. Dissemination or distribution of relevant and
wanted information to decision makers
STEPS OF DEVELOPING MARKETING INFORMATION SYSTEM
1. Look at what systems the company already has in
place
2. Determine what useful marketing information can
be extracted from those systems
3. Identify the information marketers need that they
are not getting from existing systems,
4. Create, or find, additional systems to provide the
needed marketing information
5. Integrate these systems with companywide
enterprise systems (if possible and not too costly)
MARKETING RESEARCH PROCESS
1. Problem definition
2. Development of an approach to the problem
3. Research design formulation
4. Data collection
5. Data preparation and analysis
6. Report preparation and presentation
 PROCESS CONT…..

• Identifying the Problem: If you cannot define a

problem properly, it is impossible to find an
appropriate solution. Unfortunately, a problem may
not be obvious,
• Ascertain your objectives: For example, you may be
more interested in growing your business, whereas
your associates may want immediate increases in sales
or profits. Clearly, the goals and types of marketing
research projects may vary based on whether a short-
term or a long-term increase is sought
 PROCESS PROCESS CONT…..
• Identify the problem, not the symptom scan be confusing:
Good marketing research can help to understand the true
problem. Consider the following example. A new cell phone
with basic computing and Internet capabilities is selling
poorly. Distributors claim competitors' lower prices for
similar products are causing poor sales. Based on the
distributors’ beliefs, the company conducts a detailed
analysis of competitors' products, attending especially to
pricing. In fact, the analysis reveals the true problem is the
distributors’ lack of product knowledge and concomitant
inability to explain the product's value to potential
customers
 PROCESS CONT…..
• Understand the problem background: An informal
gathering of background information about the
environment in which your business operates should
help in that regard
• Determine the unit of analysis: Depending on the
research problem the appropriate unit of analysis
could be persons, households, spouses, or
organizations. Without identifying the appropriate
unit of analysis, you cannot draw a suitable sample
or perform suitable data analyses.
 PROCESS CONT…..
• Determine relevant things to ask about: Although you
may want to learn about non-quantifiable matters,
relevant issues typically are quantifiable. this step of the
process entails determining what to measure and how
to measure it.
• Translate the marketing problem into researchable
objectives: Because researchers must create
researchable objectives concordant with their problem
definition, often they want to express those objectives in
the most rigorous terms—something called a hypothesis
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