Concept of Marketing Information System (MkIS)
A marketing information system (MkIS) is a management information system designed to support marketing decision-making consisting of people, equipment, and procedures to gather decisions, sort analyze and evaluate which helps an organization to make fruitful decisions. Nowadays the modern-day market is expanding incredibly and competition is increasing. A marketing information system (MIS) provides decision-makers with all the necessary data and information regarding marketing-related issues.
There is a regular flow of information about goods or services, prices, advertisements, sales, competitions, etc. Marketing information systems are essential to scan and monitor external environmental components. This is why they are also called the lifeblood of marketing. By gathering information from different sources, analyzing it, and providing it to decision-makers, helps in making a decision.
We live in an era of the information revolution. Marketing managers must be continuously informed about what customers need and want. In addition, information is necessary to identify the competition’s strengths and weaknesses and to make distribution more effective. Management relies on information for everything it does. If you don’t have information, you can’t make decisions. The use of marketing information systems in business organizations is vital to rational and effective decision-making. The use of marketing information systems is a regular practice. We never stop using them.
As a marketing manager, this is very important. With its help, he/she develops plans, programs, policies, strategies, etc. An integrated marketing information system incorporates human activities, technology, machines, and so on. These are used in an organized manner to make marketing decisions. The relevance of marketing information is profound.
Role of Marketing Information System (MkIS)
Some of the relevance of the Marketing Information System (MKS) are as follows:
A) Facilitation of marketing planning and control
Marketing organizations need planning and control in many marketing aspects such as product development pricing, promotion, and distribution as we know that the recipe of every successful planning and control mechanism is proper information.Such planning and control will be successful only when the organization has relevant information in abundance.
Marketing information systems (MKS) collect, analyze, and disseminate data to support decision-making and marketing management. Marketing information is used to provide managers with relevant information for making informed decisions, developing marketing strategies, and tracking marketing programs’ effectiveness.
By providing relevant data and insights, the MKS facilitates marketing planning and control through the following activities:
- The MKS should be designed to enable managers to segment their target market according to demographics, psychographics, and behavior.
- Product Development, Pricing Strategies, Distribution Channels, and Promotions: MKS provides data that can be used to develop and optimize an organization’s marketing mix, including product development, pricing strategies, distribution channels, and promotions.
- Managers can monitor the performance of their marketing programs and make adjustments as necessary using MKS’s real-time data and analytics.
- Using the MKS, managers can gain a deeper understanding of their competitors’ strengths and weaknesses by analyzing their activities and performance.
By providing data, insights, and analytics necessary to make informed decisions, develop effective strategies, and monitor marketing performance, Marketing Information Systems (MKS) facilitate marketing planning and control.
B) Helps to recognize the changing dynamics of an environment
The marketing environment is synonymous to change. These changes are related to different aspects of product price, place, promotion etc. MkIS helps a manager to understand these changes so that they can respond quickly.To provide a comprehensive view of the market, MKS integrates data sources, such as sales data, market research, customer feedback, and social media analytics, to analyze trends, patterns, and consumer behavior.
It enables organizations to develop targeted marketing campaigns that target the right audiences, at the right time and with the right message by providing insight into consumer preferences and trends.In addition to monitoring and evaluating the effectiveness of marketing efforts, MKS allows organizations to track their progress in real-time and make data-driven decisions. By doing so, you reduce the risk of making ineffective marketing investments and you optimize your marketing spend.
As a result, marketing information systems play an important role in keeping organizations on top of the competition and making informed decisions. A data-driven decision-making process can help organizations remain agile and respond effectively to changing market conditions in real-time.
C) Quick supply of information
Information is of no use if it is delayed. It is so because an organization must take a quick decision in today’s ultra-competitive environment. Hence, a properly designed, MkIS that provides a quick flow of information is so important. In an organization, the Marketing Information System (MKS) provides real-time data and analytics that help companies make informed decisions based on market trends and customer preferences. The system helps businesses keep track of sales, customer preferences, and market trends, which in turn helps them to improve customer service and product offerings.
As well as streamlining communication between departments, MKS ensures that the right information is shared with the right people at the right time so that the right information gets to the right people. As a result, companies can work together more efficiently and effectively, leading to higher sales, customer satisfaction, and market share.
Furthermore, MKS can be tailored to meet the specific needs of a business, enabling an organization to make informed decisions based on the information it receives. In order to provide a comprehensive view of the business, this system can be integrated with other technologies, like Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP).
Business organizations can utilize the Marketing Information System (MKS) to make informed decisions, improve their offerings, and become more competitive on the market by accessing the necessary data and insights.
D) Quality of decision making
For an organization the need for a correct and quick decision is immense. One wrong decision and you are doomed. MkIS through prompt supply of relevant and reliable information aids to the quality of decision-making. By obtaining relevant and up-to-date information through an MKS, decision-makers are able to make informed decisions. This is one of the key benefits of an MKS. In order to make effective marketing decisions, it provides an in-depth view of the market and customer behavior, competitor analysis, market trends, and other relevant information.
Furthermore, the MKS provides insights into consumer behavior that can assist in tailoring marketing strategies more effectively and identifies opportunities and potential threats in the market. A marketing decision can be made more confidently and with fewer risks, if it is based on accurate and relevant information. The MKS plays a vital role in supporting effective marketing decision-making and helps reduce market risks and uncertainties by providing the necessary data and information.
E) Information integration
Information is scattered everywhere from departments to branches. The integration of that information is crucial for the integration of decision-making. MkIS makes the integration of information possible. By providing a centralized platform for managing, analyzing, and utilizing marketing data, the Marketing Information System (MKS) helps in information integration. To provide an overall view of the company’s marketing performance, the system integrates data from a variety of sources, including customer, market, and sales data.
Characteristics of Marketing Information System (MKS):
- Data collection: MKS involves the collection of data from internal and external sources.
- Integrated data: This system analyzes market trends and customer preferences by integrating data from multiple sources.
- Data analysis: The system identifies trends, patterns, and insights in order to support decision making.
- Data storage: MKS maintains a centralized database for easy access and analysis.
- Decision support: Information is provided to support decision-making in various areas of marketing, such as product development, pricing, and promotions.
Advantages of MKS:
- Informed decision-making: MKS provides relevant information to support informed decisions.
- Enhanced efficiency: Many manual processes can be automated, reducing the amount of effort and time required to gather data.
- Identifying customer preferences and trends: MKS helps companies identify customer preferences and trends by providing a comprehensive view of the market.
- Competitive advantage: MKS allows companies to respond quickly to market changes and stay ahead of their competitors.
Disadvantages of MKS:
- Implementing and maintaining an MKS can be costly.
- MKS collects and analyzes data based on the sources used and the accuracy of the information.
- It may be difficult for companies to obtain the technical expertise necessary to implement and use MKS.
- Due to the changes MKS may bring to employees’ work processes, some employees may resist its implementation.
Limitations of MKS:
- MKS collects a large amount of data that can make identifying relevant information difficult.
- There may be a time lag between the data collected by MKS and the current market situation because the data is not up-to-date.
- Individual biases and subjective factors can influence how data is interpreted.
Examples of MKS:
- Customer Relationship Management (CRM) systems
- Market Research software
- Data Warehouses
- Business Intelligence tools
Applications of MKS:
- Analyzing customer behavior, preferences, and buying patterns is a key function of MKS.
- Companies are able to target specific groups of customers using MKS information to support market segmentation.
- Developing products that meet customer needs: MKS provides insight into consumer preferences.
- MKS assists companies with determining the optimal pricing strategy by providing market trends and competitor prices.
Marketing Information System Quiz | Multiple Choice Questions (MCQs)
Which of the following are the inputs of Marketing Information System?
i) Marketing research data
ii) Marketing intelligence data
iii) External environment data
iv) strategic plan
A) Only I, ii, and iii.
B) Only ii, iii and iv.
C) Only i, iii and iv.
D) All I, ii, iii and iv.
Correct Answer : D) All I, ii, iii and iv.
The marketing information system begins and ends with ……………. .?
A. Marketing managers
B. Marketing intelligence
C. Information technology
Answer» A. Marketing managers
A marketing information system (MIS) caters to the needs of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A. Marketing decision
Answer» A. Marketing decision
Marketing information system gathers information from internal sources like marketing intelligence and marketing research to help the manager in.
A. Assessing the information needs.
B. Developing the needed information.
C. Distributing the information.
D. All of the above
Answer» D. All of the above
This step of MIS (marketing information system) development involves the investigationof all users’ needs.
A. System analysis
B. System design
C. System implementation
D. System investigation
Answer» A. System analysis