Marketing information system

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Marketing information system
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Marketing information system – a totality of people, equipment, procedures and techniques of gathering, ordering, processing and facilitating on-time transparent and exact information for people who make important decisions, with specific consideration of marketing department workers. Marketing information system is created in some companies in order to systematize information better and to convey it precisely to proper people in an organization. Those people can be managers, marketing specialists or individuals who are engaged in marketing activities of an organization. The way of structuring marketing information system should consult costs of data sourcing and risk and uncertainty terms on the market.

The genesis of marketing information system

The stimulus that initiated a concept of marketing information system was a conception of D.E. Cox, R.E. Good and B. Montgomery, introduced in 1967 and 1970. The information was amassed by enterprises on previous occasions, but companies had not created marketing information systems before.

Elements of marketing information system

This system is based on three main actions essential to its existence:

  • internal reporting - is based on information acquired from data that is obtained inside an organization. Examples include data relating to:
    • number and value of sold goods or services,
    • levels of supplies,
    • the information contained by enterprises, for instance: profits, costs of a company, etc.

In reporting, an important role play databases and information subsystems that pass a message about current sales.

  • marketing interview - is both activity and source used by marketing department workers in order to gain an insight into the market or to reach data about marketing. Examples include blogs, specialistic books, trade reports, scientific articles, etc.
  • marketing research - is the most difficult and toilsome way of sourcing data in marketing information system. Nonetheless, it brings accurate outcomes, tailored especially for a particular enterprise.

Application of marketing information system

The information contained in marketing information system is mainly collected to:

  • reduce the uncertainty of taking decisions,
  • assess the environment in the broad sense,
  • estimate weaknesses and strengths of a company,
  • track actions of competitors,
  • monitor activity of partners.

The utilization of databases in marketing information system

Tools that support usage of marketing information system are databases. They facilitate access to information and create digital space, where data are organized. These data are divided into databases according to different categories. For instance, an organization orders its sales information on the grounds of units, consumer groups, clients; preferences, product groups etc. Due to precise data segregation, it is possible to communicate with client accurately. For example, based on the previous transaction, a company executing car services can send an e-mail with a reminder about pending date of MOT test. Owing to this, a firm can encourage a client to a purchase and offer an additional service - help for a customer to remember about MOT test. It is important to provide easy access to databases not only for marketing specialists but also for people, whose task is taking major decisions in a company. Due to this, both groups of people can notice new chances or spot neglected groups of consumers.

Automation of the data collection process with technology

Nowadays, technology helps companies to robotize the process of data collection and creating MIS, thereby decreasing required human and capital resources. Examples of automation of the data collection process employed by organizations both online and offline:

  • saving bought products’ list with a loyalty card
  • counting people who enter gym by electronic card which enables passing gates
  • following activities of users on the website through systems based on cookie files
  • counting people who enter a shop by gates that also work as an anti-theft security
  • automatic invoices in CRM system.