Management Notes

Reference Notes for Management

Components of Marketing Information System | Marketing

Components of Marketing Information System

Components of Marketing Information System

Components of Marketing Information System

➦ 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.

➦ The structure and components of the Marketing Information System within the firm depends on how it functions within the marketing environment.

The major components of MKIS are as follows:

1. Internal Records System:

Internal Record System

➦ The basic aim of the internal Records system is to collect “result-oriented” information about the organization.

➦ Such as sales records, purchase orders, inventory levels, cash flow accounts receivable and payable, etc. This information are crucial for future forecasting which is possible only by studying and analyzing the past and present results of the organization.

➦ This information is regularly needed in high volume and is prepared by a group of specialists working in the organization, including various departments and sections.

➦ An internal records system enables an organization to be knowledgeable about the performance and issues they must address to improve it.

2. Information Processing System:

Information Processing system

➦ The basic aim of information processing system is to store efficiently and retrieve data gathered through the sub-systems of the MKIS and supply them for analysis and if not necessary, provide them to the decision-makers whenever required.

➦ To locate the information needed, marketers use multi-subject coding and indexing structures.

➦ Without multi-subject coding and indexing structures, it becomes difficult to locate necessary information whenever required.

3. Marketing Intelligence System:

Marketing Intelligence system

➦ The basic aim of Marketing Intelligence System is to collect the “happening information” about the marketing environment (external).

➦ This system is used by managers of the organization to obtain everyday information about the marketing environment.

➦ The intelligence gathering is a decentralized process and is gathered through published materials such as newspapers, books, journals, magazines, research papers, research articles, etc.

➦ Moreover, organizations also rely on salespeople, special agents, and suppliers for marketing intelligence.

4.Decision Support System/Analytical System:

Decision Support System

The basic aim of Decision Support System/Analytical System is to help the marketing managers in analyzing data gathered or supplied through the sub-systems of the MkIs and making a rational decision. Decision support system helps marketers to make decisions on the problems by telling the truth about the situations. In other words, Decision support systems allow a firm to ask, “Why did that happen?” and “What will happen if…?’ Mathematical and/or statistical tools and decision models are used to solve several marketing problems such as media selection problems to evaluate new product acceptance to weigh sales and pricing alternatives, and so forth.

➦ A Decision Support System (DSS) or Analytical System within a Marketing Information System (MIS) is a critical component that aids in making informed decisions based on collected marketing data.

➦ This system employs various analytical techniques, such as data mining, predictive modeling, and statistical analysis, to extract valuable insights from vast amounts of marketing data.

➦ By leveraging these techniques, decision-makers can identify patterns, trends, and correlations within the data, enabling them to better understand consumer behavior, market dynamics, and competitive landscapes.

➦ These insights empower marketers to make strategic decisions regarding product development, pricing strategies, promotional activities, and distribution channels, ultimately enhancing the effectiveness and efficiency of marketing efforts and maximizing return on investment.

➦ The Marketing Information System (MKIS) comprises several interconnected components crucial for effective decision-making within an organization.

➦ The Internal Records System serves as the foundation, meticulously gathering and organizing result-oriented data such as sales records, inventory levels, and cash flow.

➦ This information acts as a roadmap for future forecasting and improvement initiatives. Working in tandem with this, the Information Processing System efficiently stores and retrieves data gathered from various subsystems, employing multi-subject coding and indexing structures to ensure accessibility.

➦ Meanwhile, the Marketing Intelligence System focuses outward, collecting real-time data about the marketing environment from diverse sources like publications and field agents. This decentralized process keeps decision-makers informed about market trends and competitor activities.

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