Marketing Information Systems Overview

Marketing Information Systems (MkIS) Background

• MkIS is a system for collecting, analyzing, and distributing marketing data. This aids marketers in making informed decisions.

• MkIS involves the collection, analysis, and presentation of marketing data. Its primary use is by marketing decision-makers to improve planning, implementation, and monitoring.

• Marketing Information Systems are made up of people, technology, equipment, and processes.

• Input to MkIS involves collecting both internal and external data relevant to analysis and interpretation. Output involves distributing findings to essential marketing team members and managers.

• An MkIS is a set of procedures and methods for analyzing and presenting information used in decision making.

Components of Marketing Information Systems

• MkIS gathers, sorts, analyzes, evaluates, and distributes needed data to marketing decision-makers.

• MkIS represents a bridge between what managers think the company needs and the economically feasible solutions.

• A MkIS is a complex system of people, machines, and procedures designed for an orderly flow of pertinent information from both internal and external sources. The information is used in marketing management decisions.

• It collects various types of information to support different marketing functions.

• A MkIS continuously collects information from multiple sources (internal and external).

Marketing Information System (MkIS) Characteristics

• Permanent and continuous system for collecting marketing information.

• Basic objective of supplying the right information to the right people at the right time to aid in making decisions.

• Based on a computer system with tools for data storage, analysis, and distribution. It also utilizes microfilms for storage.

• Future-oriented, providing information to address future problems and not just past data.

• Used by all levels of management (top, middle, lower).

• Collects internal and external information about consumers, competition, marketing environment, government policies, etc.

• Aids in quick and accurate decision-making for marketing managers.

• MkIS assists in analyzing the effectiveness of advertising campaigns, finding customer clusters, assisting in setting pricing of products, and analyzing sales trends.

Marketing Decisions

• "Marketing decisions" are crucial tasks for successful marketing plan implementation.

• Marketing decisions are based on a marketing mix, or "four P's" (product, price, place, promotion).

• Organizations can develop increasingly successful marketing strategies by manipulating and responding to these elements.

Different Types of Marketing Decisions

• Marketing decisions are essential for the daily operations of an organization.

• The intent behind these decisions is to achieve the pre-determined marketing objectives.

• These decisions are categorized into four areas: product, price, placement, and promotion.

Elements of the Marketing Mix

• Product decisions relate to goods and services meeting consumer needs (brand name, quality, functionality, warranty, styling, packaging, and after-sales support).

• Pricing decisions relate to the perceived value as both the cost of production and the worth as seen by the consumers.

• Placement (distribution) decisions relate to where the product will be delivered (distribution channels, places of stocking/sale to the customer, specific channel members, etc.)

• Promotion decisions refer to techniques that attract customers to a product or service promoting positive customer response. (promotion strategies, advertising, sales promotion, personal selling, marketing communication budget, and public relations).

Purpose of Marketing Information Systems

• MkIS assists marketing decision-makers in making more informed and better decisions.

• MkIS allows for impactful outcomes for the business.

• MkIS helps businesses understand customers' needs and perceptions of the product, service, and the company itself.

Examples of Marketing Information Systems

• Loyalty cards at grocery stores track purchase history, location, time, frequency and use data to make decisions about targeting marketing efforts at individual segments.
• Airlines use data from customer loyalty cards, online data, flight record data, and other industry sources to make decisions about pricing, route changes, etc.
• Hotel reservation services track demand to set rates accordingly and offer discounts during the off-season.
• Electric Vehicle (EV) companies would use information on customer preferences, pricing, and distribution aspects, to inform business decisions.

Advantages of MkIS

• Organized Data Collection: MkIS help organize vast data from various sources, increasing productivity.
• Broad Perspective: MkIS enables the tracking and analysis of all organizational processes, enhancing a broader outlook for improved decision making.
• Data Storage of Important Data: MkIS facilitates storage of historical data such as past drug data for pharmaceutical companies to benefit new developments.
• Avoidance of Crisis: MkIS helps to analyze trends and potential problems early through market share analysis allowing for avoidance.
• Co-operation: MkIS facilitates the coordination of a multitude of complex processes within the company.
• Analysis and Planning: Provides critical information for the planning and analysis of the operations of a business including business environment and competitor analysis.
• Control: MkIS helps understand business processes across the company through the provision of crucial information and controls.

Disadvantages of MkIS

• Maintenance, Complexity and Setup: Implementing and maintaining MkIS can be complex and expensive.
• Adoption Issues and Resistance: Resistance from staff can occur when information collected by the system is not what was expected leading to possible trust issues and adoption problems.
• System Errors: Incorrectly weighted data or skewed results can occur when the data is inaccurate, leading to false insights.

Benefits of Marketing Information Management

• Understanding your business better
• Gain important guidance for designing successful products
• Improving company operations

Roles of MkIS

• Marketing decision-makers need information about market evolution, goals, channels, competitors to perform analyses, planning, integration, and control.
• The management of marketing information through information systems is critical for effective marketing.
• MkIS facilitates multiple types of marketing decisions: control, operations, and strategic decisions which aid companies in decision making and corrective actions.

Types of Data in an MkIS

• Acquired databases: Large amounts of data from various sources (marketing, sales, customer information) purchased from companies specializing in data collection.
• Internal company data: Internal data from marketing activities, sales, and other company information from company records, personnel data or communication network to understand better employees, departments, or business units.
• Marketing intelligence: Data from competitors, marketplaces, and publications (websites, presentations, industry publications, and direct conversations) used to learn about current trends and market opportunities.
• Marketing research: Data acquired from custom and syndicated research (reports or forms) that help businesses learn about their customers, competitors, and business environment to gain valuable insights.

Marketing Information System Process

• Establish appropriate marketing metrics (CAC, CR, ROI, CLV, etc.).
• Gather data from internal and external sources.
• Visualize data trends through graphing.
• Distribute to relevant departments for consideration.
• Determine courses of action based on data insights.

This quiz explores the fundamentals of Marketing Information Systems (MkIS), focusing on their components, functions, and importance in decision-making. It covers topics like data collection, analysis, and dissemination in a marketing context. Test your knowledge of MkIS and its role in effective marketing strategies.