Marketing Information Systems Overview

Marketing Information Systems

• Marketing information systems are crucial for making informed decisions and understanding the impact of marketing decisions.

Structuring a Marketing Information System

• Goal Analysis: Plan for successful marketing campaigns by defining clear goals at the beginning, such as understanding the effectiveness of campaigns, or the process of product development.
• Metrics Analysis: Determine the data points to include in the system, based on the established goals. This involves considering internal and external data sources. Internal metrics could be clickstream data, email open rates, and sales records. External factors might include competitor research or economic forecasts.
• Marketing Department Coordination: Establish responsibility for maintaining and using the collected data within the marketing team and possibly also other related departments.
• Tool Identification: Choose the appropriate marketing decision support tools based on the volume and type of data you're dealing with. This could range from spreadsheets to more sophisticated data visualization tools and dashboards.
• Implementation and Deployment: Implement the chosen tools and processes, including collecting necessary data, ensuring functionality, conducting thorough testing and quality assurance (QA), and training users. Implementing thorough testing and proper user training will help to ensure a smooth launch.

Setting up a Marketing Information System Function

• Step 1: Goal Analysis: Plan for successful marketing campaigns by defining specific goals at the beginning.

• Step 2: Metrics Analysis: Determine the data points to include based on the goals. Consider internal (e.g., sales records) and external data (e.g., market research).

What is a Marketing Dashboard?

• A digital console that visually represents marketing data, including key performance indicators (KPIs) and other important metrics.

• It provides a snapshot of business performance and helps monitor the impact of marketing strategy.

• Examples may include sales volume, revenue, etc.

What are Marketing Models?

• Computer-generated estimations of what might happen if certain variables in a marketing approach are changed.

• For example, they might predict what would happen if a price of a product increased by a dollar.

• These models can estimate the impact of a particular marketing decision.

• Models often calculate or portray possible outcomes, and how these change, as related to possible changes in the market, or variable inputs.

How Data is Used in Marketing Research

• Secondary Data: Data that is already collected by others, such as through the internet, company records, or public records.

• Primary Data: Data that is collected specifically for a particular research purpose.

• A business might collect information directly from customers to get a feel for customer opinion or behavior.

How Data is Gathered

• Surveys: Gathering specific data from a customer base on their thoughts, opinions, etc.
• Checkout Scanners: Data collected when customers purchase items at checkout.
• Observational Data: Real-time insights based on observation of actions or customer behavior.

Information Resource Acquisition & Incorporation

• Determining which data to include in a marketing information system can be challenging. Too much data might be difficult to manage.

• Understand the implications of the data and associated costs relative to the company.

Information Resource Acquisition & Incorporation (Enterprise Size)

• Company size and available resources will affect how a system is developed and implemented.
• Small companies might rely on simpler solutions, while larger companies may have access to more comprehensive tools and datasets.

Information Resource Acquisition & Incorporation (Campaign and Communications Data)

• Company Website: Information such as site traffic (unique visitors, pageviews), usage behavior (clickstream patterns) and how long customers are on different pages can provide insights.
• Email Campaigns: Key insights can be gathered from metrics like open rates, click-through rates, bounce rates, and unsubscribes.
• Social Media Data: Information can be gathered from monitoring social media engagement (likes, comments, shares). Social listening tools can be helpful too.

Information Resource Acquisition & Incorporation (Sales Data)

• Sales data, such as tracking relationships with customers, can help determine ROI and understand the sales process.

• Loyalty programs can help track individual customer behavior.

Information Resource Acquisition & Incorporation (Customer Support Data)

• Analyzing customer support data can help pinpoint areas needing improvement (e.g, product enhancements, better messaging)

• High volumes of support calls regarding a specific product or issue might suggest a problem with the product.

What is Web Tracking?

• Web tracking collects and stores visitor activity to understand online behavior and preferences.
• Cookies are commonly used for tracking.

What are Cookies?

• Cookies are a primary method for web tracking, storing online activity to understand user behavior.

• Search engines, specifically Google, contribute to this activity to track user behavior.

Using Data from Web Tracking

• Web tracking is used to identify product and brand preferences.

• By tracking user behavior, companies target ads and marketing efforts more efficiently.

Information Resource Acquisition & Incorporation (For Profit Companies)

• Media & Publications: Stay up-to-date with industry news, journals, newsletters, and blogs for current insights.
• Search Engines: Keyword searches can reveal relevant insights and information.
• Marketing Agencies: Collaborate with agencies to leverage sector-specific knowledge.
• Market Research Firms: Consult market research firms for sales data and industry analyses.

Information Resource Acquisition & Incorporation (Non-Profit Organizations)

• Government Agencies: Public data (e.g. from Census Bureau, Bureau of Labor Statistics) can provide demographic and economic information.
• Non-Governmental Organizations (NGOs): NGOs might have sector-specific studies.
• Trade Associations: Trade associations offer sector-specific market data & competitive analyses.

Marketing Information System IT Structure and Tools

• User Interface: An intuitive user interface is essential for easy access and use of the system.
• System Support: Ongoing support through system managers is crucial for maintaining and troubleshooting the system.

Marketing Data Support System Models

• Reporting: Generate reports that understand trends, aiding informed decision-making.

• Standardization: Standardized reporting ensures consistent insight and enables better analysis across datasets.

• Customization: Tailor reports to specific target audiences for personalized data insights.

Marketing Data Support System Models (Specific Models)

• Time Series: Use historical data to forecast future sales.
• Brand Switching: Important for understanding customer preferences.
• Linear Programming: This model helps with predicting potential profit or revenue.
• Elasticity: Analyze how factors like price influence output.
• Regression/Correlation: Establish relationships between variables to analyze data relationships.
• ANOVA: Useful to compare groups (e.g. different customer segments).
• Sensitivity: Explore scenarios where a particular factor is changed to understand effect.
• Discounted Cash Flow: Estimating worth over time.
• What-If: Spreadsheet models for estimating impact when specific factors are adjusted (like launching a new product).

This quiz delves into the fundamentals of marketing information systems, highlighting their importance in making informed marketing decisions. It covers aspects such as goal analysis, metrics determination, and the coordination within marketing departments. Test your knowledge on how to effectively structure a marketing information system.