Marketing Information System

It refers to a SET of PROCEDURES & METHODS for the planned & regular collection & dissemination of Information for use in marketing decision-making

It is the aggregate of interacting and interdependent elements of people, machines and procedures designed to generate an orderly flow of pertinent information, collected from various sources for the use in decision making in specific areas of marketing.

It is a system designed to GENERATE, STORE, DISSEMINATE and RETRIEVE an orderly flow of pertinent and timely information to marketing managers.

A system that consists of people, equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision maker - Kotler

Significance of information goes up as knowledge management becomes the bed rock of business success.

DataInformationKnowledge

When information is discriminated, classified, processed and assembled in an appropriate manner, it becomes knowledge.

A firm needs knowledge of its business operations, value chain, customers, suppliers, competitors, technology trends.

Knowledge management gains an added significance in marketing as it is the strategic function of business. It aligns the firm with the environment.

Marketing Information may be classified based on

End Use/Purpose of the information like information needed for marketing planning, operation, control

Subject Matter of the information product, consumer, pricing, distribution channels, promotion, sales force, competition, sales methods, internal operation of the firm, external environment of the firm.

There is a need for a system to handle marketing information.

Assistance in MARKETING PLANNING, IMPLEMENTATION and CONTROLImproves DATA CAPTURE processSmoothens the operations by systematically : >gathering, processing and transmitting data > facilitates timely communication of information to decision makers in a DECISION-READY FORM. Tailors information outputs to suit needs of executives. Helps using same information several times and for different purposes.Creates customer insight out of transaction data to help know their tastes and preferences, identify new segments, etc. Monitors and sorts out irrelevant information.

Benefits of Marketing Information SystemRequisites on efficient MKIS Must be a unified system Should be capable of aiding decision making Must be compatible with firms needs User-friendly Economical Must keep a check on flow of irrelevant information Fast/quick Flexible/ adaptable.

Marketing Management Decisions

Product

Price

Place

Promotion

Packaging

People

Process

Physical EvidenceMarketing Information System

Internal Records

Marketing Intelligence

Marketing Research

Analysis of InformationMarketing Environment

Target Markets

Competitors

Channels

Macro EnvironmentMarketing Information System

MARKETING RESEARCH- INTRODUCTION

Marketing research- aid to gather information

To operate effectively in the dynamic marketing environment, it is essential to obtain adequate information before and after making decisions.

Right information at the right time about marketing variables and environment keeps the firm dynamic, responsive, proactive, adaptive and flexible.

It is information about environment that reduces UNCERTAINTY & helps constructing, implementing & revising a firms marketing plans more effectively.

Information acts as a base to CONTROL marketing activities & develop more fruitful marketing mix

Even the modern marketing philosophy of customer-orientation can be implemented better when adequate information about customers is available.

Marketing information helps firms avoid the assumptions & misunderstanding that could lead to poor marketing results.

So, the FOCAL POINT is RIGHT INFORMATION AT THE RIGHT TIME.

This is possible if firms employ a STRUCTURED & OBJECTIVE way of gathering, recording and analyzing data related to marketing environment- MARKETING RESEARCH

DEFINTIONS OF MARKETING RESEARCH

Marketing research is the systematic and objective search for and analysis of information relevant to the identification and solution of any problems in the field of marketing - Green and Tull

The systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services. Such research maybe undertaken by impartial agencies or by business firms or their agencies for the solution of their marketing problems and the inclusive term which embraces all research activities carried on in connection with the management of marketing work. American Marketing Association

The systematic, objective and exhaustive search for and study of the facts relevant to any problem in the field of marketing. Richard Crisp

An effective marketing research should be

Systematically carried out Considered as one involving a series of steps or process Based on data made available from different sources Applied to any aspect of marketing that requires information to aid decision making.

Objectives

To define the probable market for a particular product and to find out general market conditions and tendenciesTo assess competitive strength and policiesTo estimate potential buying powerTo indicate the distribution methods best suited to the product and marketTo assess the probable volume of future salesTo know customer acceptance

Functions

Production and distribution of marketable goodsSize, nature and organization of the salesThe demand creation activitiesIt ascertains the position of a company in a specific industryIt indicates the present and future trends of the industry and thus points out how the companys affairs are to be managed.It helps in the development and introduction of new products.Offers guidance for improving the current products of the company.Helps in assessing and enhancing the effectiveness of sales managementIt can reduce the risk involved in marketing decisions

Elements of Marketing Research

Market ResearchSales ResearchProduct ResearchPackaging ResearchAdvertising ResearchBusiness Economic ResearchExport Marketing Research

Advantages

Facilitates planned productionHelpful in judging the acceptance of new productsProvides valuable information about the market placeUsed to understand consumer behavior and discover new markets and new lines of production Helps in diagnosing the reduction in sales and finding remedies

Problem DefinitionDevelopment of an approach to the problemResearch Design formulation

Data collectionDataPreparation & AnalysisResearchPreparation andPresentationMarketing Research Process

Process of Marketing Research

Problem Definition

2. Development of an Approach to the problem

3. Research Design FormulationDefinition of the information neededSecondary data AnalysisQualitative researchMethods of collecting quantitative datameasurement and scaling procedureQuestionnaire designSampling process and sample sizePlan of data analysis

4. Data Collection/Fieldwork

5. Data Preparation and analysis

6. Report preparation and presentation

Sources of DataInternalExternalPrimary DataSecondary DataSurvey MethodExperimental MethodPersonal Interview SurveyMail SurveyTelephone SurveyProduct TestingPsychological techniquesConsumer Panels

Sampling

Probability or Random Sampling

Simple Random SamplingSystematic SamplingStratified SamplingCluster SamplingSequential SamplingNon-Probability or Purposive Sampling

ConvenienceJudgmentQuotaSnowball