Marketing information system

Marketing information system
See also
Media house Productize Marketing research Service bureau Bricks and clicks model Areas of marketing Call system Knowledge tree Market metrics

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.

Examples of Marketing information system

• Customer Relationship Management (CRM) – CRM is a type of marketing information system that helps to collect, store and analyze customer data. It can be used to track customer interactions with a company, analyze customer behavior and preferences, and ultimately provide personalized experiences for customers.
• Market Intelligence System (MIS) – MIS is a type of marketing information system that collects and analyzes data from external sources to help businesses gain a better understanding of the market. This type of system allows businesses to identify trends, anticipate customer needs, track competitors’ moves and measure the success of their own marketing activities.
• Market Research System (MRS) – MRS is a type of marketing information system that helps businesses gather, analyze and interpret data from primary and secondary sources. This type of system can help businesses understand customer needs, identify new opportunities, measure customer satisfaction and track market trends.
• Advertising and Promotion System (APS) – APS is a type of marketing information system that helps businesses plan, measure and optimize their advertising and promotion activities. This type of system can help businesses identify the most effective advertising channels, ensure their message is reaching the right audience and measure the success of their campaigns.

Advantages of Marketing information system

Marketing information system provides a number of advantages to organizations. These advantages include:

• Access to timely and accurate data - Marketing information system provides managers with quick access to accurate and up-to-date customer data. This data can be used to help create and execute effective marketing strategies.
• Improved decision-making abilities - With access to timely customer data, managers can make more informed decisions about their marketing plans and strategies.
• Cost savings - By using a marketing information system, organizations can reduce the costs associated with collecting and processing customer data.
• Increased customer satisfaction - By having access to timely and accurate customer data, organizations can develop more effective customer relations and increase customer satisfaction.
• Increased efficiency - By using a marketing information system, organizations can streamline their processes and increase overall efficiency.

Limitations of Marketing information system

• Cost of data sourcing – The cost of data sourcing for marketing information system can be expensive and difficult to manage, especially for smaller companies with limited resources and budgets.
• Risk and uncertainty terms on the market – The risk and uncertainty terms on the market can be difficult to evaluate accurately, making it difficult to make decisions based on the information obtained from the marketing information system.
• Data accuracy – The accuracy of the data obtained from the marketing information system can be unreliable and difficult to verify, making it difficult to make decisions based on the information obtained.
• Complexity of system – The complexity of the marketing information system can make it difficult to use, especially for those without technical knowledge.
• Data security – The security of the data obtained from the marketing information system can be vulnerable to cyber attacks and other malicious threats.
• Maintenance – The maintenance of the marketing information system can be time consuming and costly, requiring regular updates and upgrades.

Other approaches related to Marketing information system

To ensure efficient marketing activities and effective decision making, there are several approaches related to the marketing information system. These include:

• Data collection – this involves gathering information from different sources such as surveys, literature reviews, interviews and focus groups. This helps in obtaining the data needed for the creation of a marketing information system.
• Data analysis – this involves the use of techniques such as descriptive statistics, regression analysis and data mining to analyze the data collected. This allows for insights into the trends, patterns and correlations that exist in the data.
• Data storage – this involves the use of databases and other storage systems to store the data collected. This ensures that the data is securely stored and accessible when needed.
• Data interpretation – this involves the use of tools such as text analytics and predictive analytics to interpret the data. This helps in understanding the meaning behind the data and deriving insights from it.
• Data sharing – this involves the use of technologies such as cloud computing and web-based applications to share the data with other stakeholders. This helps in ensuring that all stakeholders have access to the same information.

In summary, the marketing information system involves a variety of approaches that help in collecting, analyzing, storing, interpreting and sharing the data needed for effective decision making and successful marketing activities.

References

• Ritchie, R. J., & Ritchie, J. B. (2002). A framework for an industry supported destination marketing information system. Tourism Management, 23(5), 439-454.
• Evans, K. R., & Schlacter, J. L. (1985). The role of sales managers and salespeople in a marketing information system. Journal of Personal Selling & Sales Management, 5(2), 49-58.
• Hess, R. L., Rubin, R. S., & West Jr, L. A. (2004). Geographic information systems as a marketing information system technology. Decision Support Systems, 38(2), 197-212.