MARKETING INFORMATION SYSTEM
(MKIS)
Marketing information is basic requirement for every decision in marketing area. Success of marketing decisions depends on timely availability of information and its accuracy levels. Marketing Information decides success or failure of organisation. Success of an organisation also depends on understanding the market environment. Both internal and external variables influence the marketing decisions. Reliable information on these variables facilitate managers to make effective decisions and in turn desired results.
How does MKIS benefit organisations?
MKIS:
- •√ Helps marketing planning with reliable information.
- •√ Helps in identifying new market opportunities
- •√ Gives a clear idea about emerging market trends
- •√ Helps in identifying competitors and their strengths.
- •√ Helps in understanding consumers and producers better.
- •√ Helps in acquiring periodic information to analyse, understand market requirements, which in turn lead to the development of new products and modify existing products in consonance with changing tastes and preferences of consumers.
- •√ Provides us continuous feedback about the actions and reactions of market.
- •√ Helps in bridging the gaps between customer expectations and producer's deliverables.
- •√ Reduces the market risks and uncertainties.
To sum up MKIS Division of an organisation is guiding star of the company. It guides all market activities to ensure effective decisions.
Classification of MKIS
MKIS can be classified on two fold criteria. Firstly on the basis of purpose for which information is needed. Secondly on the basis of content of information. Former focuses on the marketing activities which includes:
MKIS can be classified on two fold criteria. Firstly on the basis of purpose for which information is needed. Secondly on the basis of content of information. Former focuses on the marketing activities which includes:
Information relating to :
- a) Marketing Planning;
- b) Marketing Decisions;
- c) Marketing Operations;
- d) Marketing Control
The later focuses more on information on various categories such as information on
- a) Products
- b) Consumers
- c) Prices
- d) Distribution
- e) Promotion
- f) Competitive environment
- g) Govt, policy etc.
Why Marketing Information System (MKIS)
Firstly we must understand what a system is all about? system is a structured process through which inputs are received, processed and results are delivered on a continuous basis. A system ensures:
- a) Collection of data on regular basis
- b) conversion of raw data into processed refined useful information
- c) Information to be used for various purposes
- d) Information is a resource . It can be used on perennial basis
HOW TO DESIGN A MARKETING INFORMATION SYSTEM?
MKis consists of people, equipment, procedures to gather, analyse, classify and disseminate relevant data regularly on time. Important steps involved in designing MKIS are:
STEP-1 : Identification of information needs
What kind of information marketers need? Is it possible and feasible to offer that kind of information that the managers ask for? It so happens that too much of information makes the managers mad and also too little information does serve the purpose. To cite an example a marketing manager needs to know crucial information on advertising budgets of the competitors to plan for brand building activities of the company. But it may not be available, Similarly information of new products that the competitors propose to introduce in future will be of greater relevance but not available. Conversely volume of data about competitors existing products are available but nay not have much of relevance. Hence the point is managers need reliable, relevant and useful data at affordable cost and benefits that accrue must be substantial over the cost of acquiring, processing, disseminating information of that kind.
What kind of information marketers need? Is it possible and feasible to offer that kind of information that the managers ask for? It so happens that too much of information makes the managers mad and also too little information does serve the purpose. To cite an example a marketing manager needs to know crucial information on advertising budgets of the competitors to plan for brand building activities of the company. But it may not be available, Similarly information of new products that the competitors propose to introduce in future will be of greater relevance but not available. Conversely volume of data about competitors existing products are available but nay not have much of relevance. Hence the point is managers need reliable, relevant and useful data at affordable cost and benefits that accrue must be substantial over the cost of acquiring, processing, disseminating information of that kind.
STEP 2 : Developing sources of Information
Information can be collected from both internal and external sources. Company collects lots of data for various purposes. Financial statements feedback from salesmen, sales reports, customer details, demographics, psychographics of customers service etc. will enrich the MR division with volumes of
data. It is the ability of MR division to process the raw data into useful information to support decisions by developing data support systems (Dss). Marketing Intelligence smoothens decision making
process. External sources of information include Government publications, journals, newspapers, intemet, etc.
Information can be collected from both internal and external sources. Company collects lots of data for various purposes. Financial statements feedback from salesmen, sales reports, customer details, demographics, psychographics of customers service etc. will enrich the MR division with volumes of
data. It is the ability of MR division to process the raw data into useful information to support decisions by developing data support systems (Dss). Marketing Intelligence smoothens decision making
process. External sources of information include Government publications, journals, newspapers, intemet, etc.
STEP-3 :: Data Analysis
Based on some criteria data can be classified. For example, on the basis of demographic and Physchographic classification, data can be analysed. Fig explains a typical structure of marketing Information System (MKIS).
Based on some criteria data can be classified. For example, on the basis of demographic and Physchographic classification, data can be analysed. Fig explains a typical structure of marketing Information System (MKIS).
STEP 4 :: Dissemination of Information
Information should reach the right destination on time so as to facilitate the decision- makers and it has to be a continuous process. Dissemination of MKIS has become more easier in the light of Information Technology, and communication revolution. Rampant use of personal computers made the process more simpler and quicker. Routine Information reports come in handy for the managers to use the information at the press of a button.
Information should reach the right destination on time so as to facilitate the decision- makers and it has to be a continuous process. Dissemination of MKIS has become more easier in the light of Information Technology, and communication revolution. Rampant use of personal computers made the process more simpler and quicker. Routine Information reports come in handy for the managers to use the information at the press of a button.
Characteristics of a oood Marketing Information
- •√ Information thould be comparable
- •√ It must help in decision making and help as a decision support system
- •√ User friendly information
- •√ Clarity in information
- •√ Accuracy
- •√ Reliability
- •√ Economy
- •√ Timeliness
- •√ Unbiased
Good MKIS must ensure all the qualities stated above.
