marketing information system-chapter one
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Marketing information systems (MkIS) are designed to provide relevant information to marketing managers to help them make effective decisions. MkIS integrate internal records, external market data sources, and analytical tools to supply timely information. Effective MkIS are computer-based, future-oriented, used by all levels of management, and collect marketing data on customers, competitors and the business environment to support strategic and operational decision-making. Regular, accurate and selective information from a unified MkIS allows firms to recognize trends, develop strategies, coordinate activities and tap new opportunities.
marketing information system-chapter one
- 1. Chapter one Introduction to Marketing Information System By: hailemariam kebede/PhD/
- 2. • A marketing informationsystem (MkIS) is: • Designed specifically for managingthe marketing aspectsofabusiness • Intended to bring together disparate items of data into a coherent body of information Marketing Information System
- 3. • A marketing information system (MkIS) is a continuing and interacting structure of people, equipment and procedures to gather, sort, analyze, evaluate and distribute needed,timely and accurate information for use by marketing decision makers toimprove their marketing planning, implementation, andcontrol. Marketing Information System
- 4. Marketing Information System • Assess the informationneeds • Develop neededinformation • Analyze information • Distribute information
- 5. • Continuous System • Permanent and continuous systemof collecting information • Basic Objective • To provide the right informationat the right time to the right people to help them take rightdecisions Featuresof Marketing InformationSystem
- 6. • Computer-Based System • Uses computer, so is up-to-date and accurate • Future-Oriented • Provides information for solvingfuture problems Featuresof Marketing InformationSystem
- 7. • Used by alllevels • Usedby all three levels of management • Sources • Collects information from bothinternal and externalsources Featuresof Marketing InformationSystem
- 8. • Collects Marketing Information • Information about consumer competition, marketing environment,etc. • Helps in Decision-Making • Supplies up-to-date and accurate information that helps take quickand right decisions Featuresof Marketing InformationSystem
- 16. A. Internal Reporting System The internal reporting systems enable a company to always be aware of how they are performing as a team and what issues may need addressing.
- 17. Marketing managers get lots of information from the internal-records of the company. These records provide current information about sales, costs, inventories, cash flows and account receivable and payable. Many companies maintain their computerized internal records.
- 18. The internal records that are of immediate value to marketing decisions are: orders received, stockholdings and sales invoices. Most marketing managers use internal records and reports regularly, especially for making day-to-day planning, implementation and control decisions.
- 19. Internal records information consists of information gathered from sources within the company to evaluate marketing performance and to detect marketing problems and opportunities.
- 20. B. Marketing Intelligence System The marketing intelligence systems are used to deal with the costs of running a marketing department and a business as a whole. It will process all the facts and figures delivering what needs to be spent where and what may be using too much money.
- 21. It collects information from external sources. It provides information about current marketing-environment and changing conditions in the market. This information can be easily gathered from external sources like magazines, trade journals, commercial press, trade press, census, so on.
- 22. This information cannot be collected from the Annual Reports of the Trade Association and Chambers of Commerce, Annual Report of Companies, etc. The salesmen’s report also contains information about market trends. It can also gather information from Sales Force, Dealers and Distributors, and suppliers.
- 23. The information which is collected from the external sources cannot be used directly. It must be first evaluated and arranged in a proper order. It can be then used by the marketing manager for taking decisions and making policies about marketing.
- 25. • systems allow a company to really find out what their customers/potential customers think of the current trends and their views on certain items, or polices. • can also delve into a customer's habits in the hope the company can spot a gap in the market orservice
- 26. • can gather quantitative andqualitative information • provides information to themarketing managers • conducted to solve specificmarketing problems of thecompany • a proactive search forinformation
- 28. • act as a concept or theory and a lot of campaigns will be built with this guidance inmarketing • tools which help the marketingmanagers to analyze data and to take better marketing decisions
- 29. These toolsare: • Time series salesmodels • Brand switching models • Linear programming • Elasticity models (price, incomes, demand, supply,etc.) • Regression and correlationmodels • Analysis of Variance (ANOVA)models • Sensitivity analysis • Discounted cashflow • Spreadsheet 'what ifmodels
- 30. Three levels of decisionmaking: 1. Strategic decisions are characteristically one-off situations. This level of decision making is concerned with deciding on the objectives, resources and policies of the organisation.
- 31. 2.Control decisions deal with broadpolicy issues. Such decisions are concerned with how efficiently and effectively resources are utilised and how well operational units areperforming.
- 32. 3.Operational decisions concern the management of the organisation's marketing mix.These involve making decisions about carrying outthe "specific tasks set forth by strategic planners and management.
- 34. Marketing Information System Marketing Research Meaning to collect, analyze and supply relevant marketing information to the marketing managers systematic process of collecting and analyzing information to solve a specific marketing problem Purpose to provide relevant information to marketing managers and enable them to make effective marketing decisions to solve a specific marketing problem. Scope Wide Narrow
- 35. Marketing Information System Marketing Research Reports gives four types of reports namely, plan-reports, periodic-reports, triggered-reports and demand reports provides only one report called as ‘MR Report’ Orientation Future Oriented Past & Present Oriented Problems solve many different marketing problems at one time only deals with a single marketing problem at one time
- 36. Marketing Information System Marketing Research Data collected more frequently, usually almost daily not collected frequently Operation permanent and continuous system not a continuous system. Computers heavily based on the use of computers hardly makes use of computers
- 38. MkIS helps managers to recognize marketing trends. The changing trends may be in respect of prices, product design, packaging, promotion schemes, etc.
- 39. MkIS provides the information necessary to develop marketing strategy. Provides the foundation for the development information system-dependent e-commerce strategies.
- 40. Effective market planning is required in terms of product planning, pricing, promotion and distribution.
- 41. A firm has to take quick decision for this purpose; it requires fast flow of information which is facilitated by a properly designed MkIS.
- 42. In every aspect of marketing, there is need to make constant and correct decisions. A properly designed marketing information system promptly supplies reliable and relevant information.
- 43. MkIS makes it possible to tap business opportunities as it can supply required and reliable data.
- 44. Marketing intelligence refers to information of the events that are happening in the external environment, i.e., changes in customer tastes, expectations, competitor’s strategies, gov’t. policies, international environment, etc. with the help of MkIS specialists, it is possible to collect marketing intelligence which is vital to make effective marketing decisions.
- 45. A firm which is well equipped with MkIS will be able to realize the need to change the line of business.
- 46. Firms, which are largely decentralized can gather information which is scattered at many centers or departments and integrate it for effective decision making.
- 47. MkIS provides support for product launches, enables the coordination of marketing strategies, and is an integral part of sales force automation (SFA), customer relationship management (CRM), and customer service systems implementations.
- 48. MkIS brings together many different kinds of data, people, equipment, and procedures to help an organization make better decisions.
- 49. MkIS can organize data collection and store these important data for over several time periods.
- 50. ESSENTIAL REQUISITES OF A GOOD MKIS
- 51. Unified and centralized: MkIS must be unified and centralized. Facilitate decision making: MkIS must facilitate decision making. Quick and accurate information: MkIS must provide quick and accurate information. Economical: MkIS must be economical.
- 52. Selective: MkIS must be selective. Future-oriented: MkIS must be forward looking i.e. future- oriented. Supply information regularly: MkIS must supply information regularly. Use new techniques: MkIS must use new techniques for collecting, analyzing, storing and supplying information.
- 53. End of chapter one