Introduction to Marketing Information Systems (MkIS)

Marketing Information Systems (MkIS) - Background

• Marketing Information Systems (MkIS) are systems for collecting, analyzing, and distributing marketing data to aid decision-making.
• MkIS support operational functions like marketing, manufacturing, finance, and human resources.
• Components of MkIS include people, technology, and procedures.
• MkIS transform raw data into useful information for decision-makers.

What is Marketing Information Systems (MkIS)?

• MkIS is a system encompassing various information types to support marketing functions.
• It includes MIS, DSS, or ES subsystems based on user needs, ranging from simple reporting to complex analyses.
• MkIS acts as a tool for converting raw data into helpful marketing insights.
• It's a collection of procedures and methods for the analysis and presentation of information for informed decision-making.

Marketing Information System (MKIS)

• A system for collecting, analyzing, and distributing marketing information to support better decisions.
• MKIS involves people, technology, and processes for data gathering, analysis, and distribution.
• MKIS input focuses on collecting internal and external data relevant to the business.
• MKIS output delivers findings and analysis to crucial internal stakeholders like marketing managers.
• MKIS helps marketers make better decisions to boost business success.

A Marketing Information System

• A MkIS consists of people, equipment, procedures that gather, sort, analyze, evaluate, and disseminate needed information to marketing decision-makers.
• The MkIS should accurately reflect management needs and be economically feasible.
• The system is complex, encompassing people, machines, and procedures for a coordinated flow of pertinent data from internal and external sources.

Marketing Information System (MIS)

• MkIS gathers, analyzes, and supplies relevant information to marketing managers.
• It's a crucial tool for planning, implementing, and controlling marketing activities.
• MkIS delivers information promptly to marketing managers.

Business Function of Marketing

• This function involves planning, promoting, and selling products in existing markets; as well as developing new products and markets.
• MkIS integrates information flow required for various marketing activities.
• MkIS involves people, equipment, and procedures for the timely collection, analysis, and distribution of accurate information.
• MkIS is a continuous and permanent process.

Marketing Information System (MkIS)

• MkIS includes facts, estimates, opinions, guidelines, policies, other data necessary for marketing decisions.
• This information is obtained from internal and external sources (customers, competitors, company staff, government sources).
• The gathered data is analyzed, then provided to marketing managers who use it for decision-making.
• MkIS evaluates and stores information, employing modern technology for collection, analysis, storage, and dissemination.

MkIS Providing Information

• Internet/intranet services enable interactive customer engagement.
• Sales force automation utilizes mobile technology for streamlined sales activities.
• MkIS supports product planning, pricing, advertising, sales promotion, and market research.
• Control reporting systems support efficient product and service sales and distribution.
• Analytic reports compare actual performance to planned marketing objectives.

Characteristics/Features of MkIS

• A continuous system constantly collecting information.
• Its core objective is to provide the right information at the right time.
• It is computer-based, utilizing computers and microfilms for storage and processing.
• It is future-oriented, focusing on future problems, not just past data.
• Utilized by all management levels for planning, strategy, and problem-solving.
• It gathers information from both internal and external sources.
• Collects all kinds of marketing data, from customer preferences and competitor information to industry trends and government policies.
• Helps managers make quick, informed decisions.

Other Characteristics of MKIS

• Analyzes advertisement campaign effectiveness.
• Identifies customer segments.
• Aids in determining appropriate product pricing.
• Provides insights for sales trend analysis.

Marketing Decisions

• Marketing plans, based on elements like product, price, promotion, and placement, are pivotal for successful implementation.
• Manipulation of these four 'Ps' allows effective marketing strategies.

Different Types of Marketing Decisions

• Marketing managers make critical decisions to run day-to-day business operations.
• These decisions aim to achieve pre-defined marketing objectives.
• Four areas encompass the essential aspects of marketing planning across various product/service scenarios: product, price, placement (distribution), and promotion.

Elements of Marketing Mix

• Activities like product planning, branding, pricing, distribution, packaging, sales promotions, advertising, physical handling, display, personal selling, and market analysis constitute pivotal marketing mix elements.

Product Decisions

• Products, both tangible (goods) and intangible (services), satisfy consumer needs.
• Decisions like brand name, quality, functionality, warranty, styling, packaging, and support (after-sales) are product-related choices.

Price Decisions

• Pricing encompasses both the economical cost of production and the perceived customer value.
• Pricing strategies like suggested retail price, penetration pricing, bundling, seasonal pricing, price discrimination, and price flexibility are pivotal marketing decisions.

Placement Decisions

• Placement, also known as distribution, relates to where goods are delivered.
• Crucial aspects involve distribution channels (exclusive, inclusive, or selective), channel partners, warehousing, logistics, inventory, transportation, order processing, and distribution centers.

Promotion Decisions

• Promotion involves communication techniques designed to attract public attention to products or services.
• Promotional strategies include advertising, sales promotions, personal selling, and marketing communication budgets, along with public relations and publicity.

Purpose of Marketing Information Systems

• MkIS ultimately aims to help marketing decision-makers make informed and better choices.
• These applications impact business outcomes significantly.
• MkIS assists in understanding customer needs, preferences, and brand perception, as well as the overall organization's image.

What Purpose Do Marketing Information Systems Serve?

• MkIS allows companies to make informed decisions; product development, strategic direction, and product positioning are vital areas for MkIS applications.
• The feedback gained impacts the chosen pricing and distribution strategies.
• MkIS enables product positioning by providing feedback to better target customers and to avoid wasted resources.
• Improved partnership strategies result from better comprehension of customers.

Examples of Marketing Information Systems

• Loyalty programs collect transaction data, enabling tailored offers and improved sales.
• Airline MkIS gathers data from loyalty cards, online booking, and feedback to enhance routes, and services, and marketing.
• Hotel reservation services adjust rates according to demand and offer loyalty discounts.
• Electric Vehicle (EV) companies utilize MkIS to understand market preferences, competitor offerings, and potential customer demand before introducing new models.

Advantages of Marketing Information Systems (MkIS)

• Organized Data Collection: MkIS organizes vast amounts of market data for improved productivity and decision-making.
• Broad Perspective: MkIS aids in the analysis of independent processes and establishes a broader organizational perspective, which facilitates improvement.
• Storage of Important Data: MkIS stores essential data, including historical data, for critical decisions, such as product lifecycle management.
• Avoidance of Crisis: Analyzing historical performance using MkIS helps anticipate market changes and potential business crises.
• Coordination: MkIS facilitates the coordination of many processes within a company.
• Analysis and Planning: MkIS supports planning by providing comprehensive analysis of business capabilities, environment, and competitors.
• Control: MkIS provides a comprehensive view of processes and company-wide status and decisions, enabling proactive control measures.

Advantages of Marketing Information Systems

• Aides in Decision Making: MkIS save money and resources by targeting campaigns towards the right audiences; it allows changes in perception of a company in the market and assists in crucial decisions.
• Valuable Source of Information: MkIS provides a historical perspective on challenges and opportunities; it provides the most efficient approach to gain profit.
• More Consumer Relevant Marketing: MkIS enhances the relevance of marketing campaigns and products based on consumer insights.

Disadvantages of Marketing Information Systems (MkIS)

• Maintenance, Complexity and Setup: Setting up and maintaining a complex MkIS is a major challenge.
• System Errors: Errors in collecting or processing data can yield misleading outcomes.
• Requires Time, Money and Expertise: Implementing good MkIS requires significant upfront investment.
• Adoption Issues and Resistance: Organizational resistance can hinder effective MkIS adoption and implementation.

Why Do You Need Marketing Information Management?

• MkIS enhances business understanding, guides product design, and improves operational efficiency to drive growth.

The Roles of MkIS

• MkIS supports decision-making across different levels (control, operational, and strategic).
• MkIS provides information about market evolution for analyses and control, planning, and integration.

Types of Data in a Marketing Information System

• Acquired Databases: External data sources, including customer and sales data, are valuable for decision-making.
• Internal Company Data: Internal data on marketing activities, sales, and employees offer crucial insights.
• Marketing Intelligence: Gathering information from competitors, industry publications, and trade shows provides valuable insights into industry trends.
• Marketing Research: Incorporating custom and syndicated research reports improves MkIS's understanding of customers, competitors, and the market.

Marketing Information System Process

• Defining key metrics like CAC, ROI, CLTV, and CTR.
• Collecting data from external and internal sources.
• Presenting collected data graphically.
• Implementing insights in decision-making in respective departments.
• Determining and implementing action based upon insights gained.

This quiz covers the basics of Marketing Information Systems (MkIS) including their components, functions, and importance in decision-making. You will learn how MkIS integrates data analysis and reporting to support various operational marketing functions. Test your understanding of how MkIS transforms data into actionable insights!