Marketing Information Systems PDF

Marketing information systems Dr. Hayel Ababneh Dept. of Business Management Al al-Bayt University  Ch.1 Business Information Systems and Marketing Technology Content Business Information Systems marketing technology Types...

Marketing information systems Dr. Hayel Ababneh Dept. of Business Management Al al-Bayt University  Ch.1 Business Information Systems and Marketing Technology Content Business Information Systems marketing technology Types of marketing technology What are the benefits of using marketing technology? Marketing technology tips Web Analytics Marketing Technology Challenges To Be a Marketing Technologist HAYEL ABABNEH – Al al-Bayt University  What is a System? A system is a structure which implements an ongoing process. The structure may be formed by many diverse parts, but the parts work together toward a common objective. The word system connotes order, a plan, a method, or arrangement. A system has interacting, interrelated components, concerned with the same function, or in other words 'a set of connected things or parts... an assemblage of objects united by some form of interaction or interdependencies'. For example, in the channel of distribution the components are consumers and those who influence them - retailers, suppliers – and those who provide services like advertising, delivery and so on. HAYEL ABABNEH – Al al-Bayt University  Management Information Systems MIS is seen as 'a system which provides each manager in the organisation with the information he needs in order to take decisions, plan and control within his particular area of responsibility‘. MIS is based on the concepts of: (a) information - representations of events and objects; (b) humans as information processors - which imposes limitations on systems in development and operation; (c) systems theory – to understand the complexity of information sources, processing and uses; (d) organisation and management - because the MIS exists in an organisation and is designed to support management tasks in strategy, tactics and routine operations; (e) decision making - because the rational approach to decisions relies on information; and (e) the value of information - because if the decisions made with the information change outcomes, then the information has a value which can be estimated in various ways. HAYEL ABABNEH – Al al-Bayt University  It is very important to acknowledge that due to constantly and rapid changes in the market environment decision makers should possess at the right time the right information in order to arrive at the most appropriate decisions. Today's market conditions forces decision-makers to become more competitive through the improvement of their decisions (Kotler, 1994). Moreover, the need for effective decision- making is the factor that maximizes the importance of the need for information. Inadequate or inaccurate information may lead to improper decisions and consequently to other substantial damages for the company (waste of time, waste of money, increase of cost, etc). In general, the information available to the decision makers exhibits a number of problems and obstacles. According to Kotler (1966; 1994) the most common and significant problems involve: 1. Validity of the acquired information. 2. Non-existence of adequate information. 3. Existence of redundant information. 4. Concealing of information from various company employees due to the existence of mistakes. 5. Important information usually arrives too late. This fact directs the companies to the necessity to develop and operate an information system.  The use of management information systems results in the improvement of the information quality, thus aiding the decision makers in: The control and assessment of the planned activities and decisions, which they can compare with those actually made, because of the application of the marketing information systems. The marketing planning process. In the decision making process with the provision of forecasting models of the application results of the possible alternative decisions, in order to choose the most applicable among them.  Evolution of Information Systems After the first generation of Data Processing Systems, a new generation of information systems appeared in the 60's. Such systems were named "Management Information Systems (MIS)", and they are primarily characterized by their capability to produce periodical reports, such as daily lists of workers and work hours, weekly sales reports of the products, monthly expenditure reports, etc. These were systems that specified, organized, summarized and reported information in regard to the decisions in operational areas. HAYEL ABABNEH – Al al-Bayt University  Initially, Management Information Systems had a historical accession; they described events once they had occurred. Later MIS were used in order to forecast trends and to support ordinary decisions. In the beginning, MIS were typically used by middle level managers, yet their use soon expanded even further with the course of time. HAYEL ABABNEH – Al al-Bayt University  In the beginning of 70's, Decision Support Systems, appeared almost at the same time. The main goal of DSSs is to support managers in the decision-making process of complex ill-structured or unstructured problems. In the middle of 80's appeared the first commercial applications of systems that employed Artificial Intelligence techniques. Among them the so-called Expert Systems (ES) were of particular interest. Expert Systems use knowledge in order to identify problems, to suggest solutions, or train personnel. Executive Information Systems that appeared in the late 80's were designed to support the special information needs of executives. HAYEL ABABNEH – Al al-Bayt University  Roles of information systems The most significant role of information systems is to support the organizations in their effort to: Increase of productivity (reduction of cost, increase of effectiveness). Quality improvement. Formation of competitive advantages. Structure and formation of the company's strategy. Reorganize and recreation of the company mechanically. Reach better and more effective decisions. Respond directly to the customers' demands and to changes within the company or its environment. Receive a large volume of data. Creativity improvement and innovation promotion. HAYEL ABABNEH – Al al-Bayt University  Levels of Information Systems A number of practical levels of information systems in organisations: (a) data storage and retrieval systems, which make it simpler to use information by making it readily available. Such a system might involve keying information requests into a visual display unit or other computer terminal to access a magnetic disc file of information, or something much simpler like a card index of research reports, files or sales statistics or a bibliography of publications. (b) Monitoring systems, which check progress and may alert management to variations, such as sales or market share falling below target. (c) analytical information systems, which are designed to answer such questions as why something happened, what is likely to happen next, and 'what if' queries, such as what will happen if we reduce prices or if we increase advertising. HAYEL ABABNEH – Al al-Bayt University  What is Marketing Information Means all and any information (whether or not recorded in documentary form or on computer disk or tape) relating to the marketing or sales of any past present or future product or service of the company. It includes: sales targets and statistics, market share and pricing statistics, marketing surveys and plans, market research reports, sales techniques, price lists, discount structures, advertising and promotional material, the names, addresses, telephone numbers, contact names and identities of customers and potential customers of and suppliers and potential suppliers to the Company, HAYEL ABABNEH – Al al-Bayt University  Value of Marketing Information Increasingly, business leaders are viewing market information not only as an input for making better decisions but also as an important strategic asset. Marketing Information may prove to a business’s chief competitive advantage in many business sectors. Competitors can copy each other’s products, processes, procedures, and technologies, but they cannot duplicate the marketing information and intellectual capital. HAYEL ABABNEH – Al al-Bayt University Information System (IS) “Information systems (IS) is the study of complementary networks of hardware and software that people and organizations use to collect, filter, process, create, and distribute data.” In other words, Information systems are interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization of information in an organization. Almost all IS are software applications that takes data as input and produces meaningful information as input. Business Information System The term business information systems issued to describe a variety of types of information systems (transaction processing, information reporting, decision support, etc.) that support the functions of business such as accounting, finance, marketing, or human resource management Business Information System Business firms are turning to Internet technologies to integrate the flow of information among their internal business functions and their customers and suppliers. Companies are using the World Wide Web and their intranets and extranets as the technology platform for their cross-functional and inter organizational information systems. Business Information System Applications of such information systems in the functional areas of business include: 1. Marketing IS 2. Financial |S 3. Accounting IS 4. Production/Operations |S 5. Human Resource Management IS Business Information System In addition, many companies have moved from functional mainframe legacy systems to cross functional client/server network applications. This typically has involved installing enterprise resource planning (ERP) or supply chain management (SCM) software. Instead of focusing on the information processing requirements of business functions, ERP software focuses on supporting the supply chain processes involved in the operations of a business.  What is marketing technology? Marketing technology, or MarTech, is a broad term that includes any technological tools that help digital or physical marketing teams complete their work. MarTech often overlaps with advertising technology, or AdTech, which can automate or increase the reach of digital advertisement. Adtech, or ad technology, is a broad term used to refer to the set of technology tools and platforms used to manage, serve and measure digital advertising campaigns. Adtech platforms typically include services for ad serving, targeting and retargeting, analytics, and optimization. Ad tech is essential for digital marketing teams to reach and engage the right audiences. The collection of marketing technology tools a company uses is called its marketing technology stack. HAYEL ABABNEH – Al al-Bayt University  Marketing technology is integral to many parts of the customer buying process. Here are some ways these two intersect: Awareness: As customers use social media, they may come across ads targeted to appeal to people with their demographics or interests. Interest: When a customer searches for a product, the top results in their web browser are often determined by which a company has the most effective SEO software. Desire: When a customer reaches out to a business for information, that company may track them with lead management software. Action: If the customer decides to make a purchase, the company would then track the relationship with customer relationship management (CRM) software.  Types of marketing technology 1. Analytics Analytic tools help marketers understand the effects of marketing campaigns by providing data on the ROI for those initiatives. Different types of analytics technology can help you improve the effectiveness of your ad targeting, the customization of your site and apps and the customer response to your website. HAYEL ABABNEH – Al al-Bayt University 2. Advertising Digital ad technology helps companies advertise their products and services more effectively. This might mean using social media or internet search to reach a larger audience or targeting ads toward people in a certain demographic or group. HAYEL ABABNEH – Al al-Bayt University 3. Customer relationship management CRM tech helps businesses build better relationships with current customers by tracking communication, processes, payment and orders in one application. It allows companies to provide better service, make more sales to each customer and retain their customers for a longer amount of time. Marketing departments may also use lead management software. This type of marketing technology is similar to CRM but helps when managing leads or potential customers who haven't made a purchase yet. HAYEL ABABNEH – Al al-Bayt University  What lead management stands for? Lead management is the process of identifying, nurturing, and converting potential customers into paying customers. It involves tracking leads from the moment they enter the sales funnel, to the moment when the lead is converted into a sale. It is an essential part of any successful marketing and sales strategy.  How lead management software works? Lead management software is designed to help businesses capture leads and manage them through the sales process. It helps to streamline the process of capturing and managing leads, from the initial contact to when the lead is closed as a customer. It can also be used to track the interactions between a business and its leads. Lead management software can capture leads from a variety of sources, including website forms, email campaigns, and social media. Once captured, the leads can be managed in one central location. It allows sales teams to easily view and analyze lead data, and to assign leads to the appropriate sales reps. The software can also be used to track lead progress, including emails sent, calls made, and meetings held. It can also be used to keep leads engaged until they are ready to become customers. Finally, lead management software can also be used to generate reports, allowing sales teams to measure their performance and identify areas for improvement. 4. Search engine optimization SEO SEO software helps companies optimize their search strategy to help their products and sites potentially appear higher in customer search engine results. SEO tech can analyze which keywords are currently performing well in your industry and help you create targeted content aimed at increasing web traffic. HAYEL ABABNEH – Al al-Bayt University 5. Email marketing Specific services can make it easier to launch and optimize email marketing campaigns. Services offer automation of email sequences for new customers, templates for creating emails, and management of customers' email addresses and preferences. Email marketing technology tools also offer analysis tools including monthly reports, A/B testing and incorporation with push notifications and social media. HAYEL ABABNEH – Al al-Bayt University 6. Customer experience software This MarTech can help companies maximize the effectiveness of their marketing strategies by testing the effectiveness of company websites, interfaces and applications. Many customer experience applications offer A/B testing and personalization for different website visitors. Customer experience software is used to help businesses track and manage customer interactions, including customer service inquiries, sales inquiries, and feedback surveys. It allows businesses to better understand their customers’ needs, preferences, and behaviors, and to provide more personalized and efficient customer service. It can also help businesses identify and address customer pain points, optimize customer service processes, and increase customer loyalty. HAYEL ABABNEH – Al al-Bayt University 7. Content management Content management tools are software applications used to create and manage digital content. They enable users to organize, store, and publish content in an efficient manner. Content management tools can help companies manage their marketing and website content, or owned media, by making it easier to search, update, tag, create, review and edit that content. Companies can use content management to track the performance of their content, including engagement metrics such as likes, shares, and comments. This helps them measure the success of their content marketing efforts and make adjustments as needed. Examples of content management tools include WordPress. HAYEL ABABNEH – Al al-Bayt University 8. Content creation A marketing department may also use marketing technology tools designed more broadly for the creation of content. Software for graphic design, video and audio production, video marketing platforms and podcast distribution apps may all be necessary at different stages of advertising and marketing. You may purchase these for just part of your team, especially if you have team members who focus on producing video, audio or graphic content. HAYEL ABABNEH – Al al-Bayt University 9. Social media Specific marketing technology can make posting, responding and managing social media accounts more efficient. Some social media tools also offer prompts for making content that appeals to your customer and profiling systems to understand who your followers are and how they interact with your brand. HAYEL ABABNEH – Al al-Bayt University  What are the benefits of using marketing technology? Here are some benefits of using marketing technology: Increased efficiency: Marketing technology can automate some repetitive tasks, like sending customer emails and purchasing ad space, which can give marketers more time to spend on other tasks. Better customer relationships: Marketing technology can make it easier to create relationships with your customers by helping you keep all their correspondence records centrally organized and remotely accessible, create email campaigns and incorporate customer preferences into your sales process. HAYEL ABABNEH – Al al-Bayt University  Better data analysis: MarTech tools can help companies understand their return on investment (ROI) more thoroughly, spend advertising money more efficiently and make more sales. More agility: Marketing tech tools can decrease the time it takes to see and measure specific results. This means companies can more quickly decide to cut or end ineffective campaigns, invest in useful advertising techniques and reduce financial loss.  Web Analytics Web analytics is the process of collecting and analyzing website data. That includes how users find your site and what they do while there. That information can drive decisions about how to develop, meet and measure your goals. From there, you can determine if your strategy for user experience is a success. HAYEL ABABNEH – Al al-Bayt University  The Importance of Web Analytics Web analytics is crucial for any business with a digital presence. By developing effective analysis, you can measure the success of your key performance indicators (KPIs). It's a data-driven way to make sure your customers are having the experience you want, and that your business is growing the way that you hope. You'll be able to tell if they're engaging with the content you offer, or if it would be more effective to guide users through your site in a different way. HAYEL ABABNEH – Al al-Bayt University  Types of Web Analytics and Their Uses 1. Click-through, scroll-tracking and heat maps These are all methods of analyzing exactly how users are interacting with your site. Click-through reports tell you the ratio of users who click on a specific link to the total number of viewers. Scroll-tracking measures how far users are scrolling down a page. Heat maps give you a visual look at the most popular and unpopular areas of your webpage based on how users interact with them. All of these reports combine to give you a fuller understanding of how your site is being used and where there might be areas for improvement. HAYEL ABABNEH – Al al-Bayt University 2. A/B and multivariate testing These are both methods of testing how changes to your page design might impact results. With A/B testing, you create two or more separate versions of your landing page. They can have subtle or significant differences. The data you get allows you to see which version is the most effective for your KPIs. Multivariate testing only alters specific sections of a page, but the goal is the same, to see which variation has the greatest impact on the user experience. HAYEL ABABNEH – Al al-Bayt University 3. Usability testing This involves direct observation of a user's experience on your site. You can do usability testing using either experts in your field or complete strangers. Usability testing can show you if users can successfully complete a task and how long it takes. It's a good idea to conduct this testing before a public release so you can catch any issues early. HAYEL ABABNEH – Al al-Bayt University 4. Customer satisfaction surveys Internal testing can tell you a lot about your site. But it's also important to get feedback directly from your customers. By developing a survey, you can learn how they felt about their experience and how likely they are to return to your site. Keeping these surveys brief can increase the likelihood that users agree to complete them. Helpful questions can include the purpose for their visit if they were able to fulfill that purpose and how they would rate their overall experience. HAYEL ABABNEH – Al al-Bayt University 5. Keyword/SEO research If customers can't find your site easily, you're starting at a disadvantage. That's why your search engine ranking is so important. Making sure you have the right keywords plays a big role in keeping you near the top. Researching keywords and search engine optimization strategies helps you identify which terms are seeing the highest volume of searches. That allows you to target the most popular topics for your content, increasing your visibility. Keyword and SEO research is important to do regularly because results frequently change. HAYEL ABABNEH – Al al-Bayt University 6. Social media analysis It's not just your main website that matters to your user experience. Your social media presence is also a big part of how customers find and interact with your company. Tracking how users are interacting with you on Facebook, Twitter and other social media platforms can tell you a lot about your audience demographics and their interests. You'll also learn how effective your messaging is at bringing users to your website. Metrics that you can track include clicks, comments, shares and video views. Combined with the other analytics reports, you get a better understanding of the most effective ways to meet your goals. HAYEL ABABNEH – Al al-Bayt University 7. Competitive analysis It's important not to focus too narrowly on your own site, but also to be aware of how your competitors are performing. A thorough competitive analysis helps you identify where you're already providing value and where there might be an opportunity for growth. When developing your analysis, look for gaps in the market and identify any trends. Looking at direct competitors can give you the best results. You can examine how they market their products or services and check to compare your pricing, including shipping. From there, you'll be able to do a deeper dive into their content strategy, technology and how their customers are responding. HAYEL ABABNEH – Al al-Bayt University  Marketing Technology Challenges Implementing, maintaining, and optimizing your organization’s martech is not a simple, streamlined process. Rather, organizations should prepare to overcome a few key challenges before they can fully realize the benefits of marketing technology. 1. Selecting the Right MarTech Platform Choosing the right platform is difficult since selecting a platform is more than finding the right technology - it extends into finding the right partner. Integrating a new system is often a challenge, and the process of working with internal and external stakeholders to roll out technology can create unexpected hiccups. HAYEL ABABNEH – Al al-Bayt University 2. Changing Company Culture For many organizations, changing the way marketing functions can be a big challenge. Working with colleagues to get them trained on new platforms and workflows provides a hindrance to day-to-day activities. As Peter Drucker said, “culture eats strategy for breakfast.” Unfortunately, changing the company culture to utilize martech can often be a formidable obstacle for companies. HAYEL ABABNEH – Al al-Bayt University  To Be a Marketing Technologist Good marketing technologists do the following: Use data to help their teams draft better campaigns and better creative Analyze software capabilities within the needs of the organization Function as the hybrid of marketing and IT Develop legacy organizational systems as needed Investments in Martech will become increasingly important as the consumer landscape evolves. With this in mind, marketing teams must ensure they are building out their martech stacks with solutions that offer ROI to the organization, while minimizing roadblocks around deployment or onboarding that can lengthen time to value. HAYEL ABABNEH – Al al-Bayt University  Thank you Dr. Hayel Ababneh HAYEL ABABNEH – Al al-Bayt University