1. Marketing Information system
Unit 3
Marketing Information system

2. Few terminologies
Data refers to the raw facts and figure that have no meaning on their own. It includes texts, numbers, symbols, graphs, pictures etc.
When a set of data is processed within a certain context to give meaning, it is termed as information.

3. Market Information
Information is like a mirror, which demonstrates the realities of the organization, makes aware of the threats, and helps indentifying the right track or road to move. Market information refers to the information related to the various aspect of market. It includes information related to marketing environment, marketing mix etc. Market information provides detailed information related to internal, micro and macro environments to the marketers and helps to analyze the marketing components so that one can assess the opportunity and threat available in the market.

4. Marketing Information System(MIS)
“A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate marketing decision makers”. – Philip Kotler A MIS is a structured interacting complex of persons, machines, and procedures designed to generate an orderly flow of pertinent information collected from both inter- and extra-firm sources, for use as the bases for decision making in specified responsible areas of marketing management.

5. Input/Source Processing Output
Marketing Environment
Economic
Political
Legal
Socio-Cultural
Technology
Nature
Competition
Demography
Collection of Data
Sorting
Retrieving
Organizing
Analyzing
Interpreting
Use of information by decision makers for:
Planning
Organizing
Implementing
Supervising
Directing
Controlling marketing performances
Feedback System

6. Importance/Benefits of marketing information system
Monitoring the environment
Implementation of the marketing concept
Better market segmentation
Helps demand assessment
Evaluation of marketing decision variables
Provides up-to-date information
Upgrades management’s performance

7. Components of MIS
Internal records system: It consists of sales records, purchase orders, inventory levels, cash flows, accounts receivable and payable etc. Internal records are more reliable and result oriented. It could be of different forms:
Customer related records: Consists of customers’ profile, orders payment cycle, bills, invoices, inventory record, and shipment of papers.
Sales related records: It consists of total sales, sales returns, discount, commission, market segment, sales trend, sales return trend etc.
Other records: It consists of special report, annual report, audit report, financial report etc.

8. 2. Marketing Intelligence System
The marketing intelligence system is the way by which company executives are kept informed about current and changing conditions in the marketing environment. In other words, the basic aim of this system is to collect the ‘happening information’ about the marketing environment (external). The intelligence is gathered through the formal sources like salespersons, Intermediaries, Marketing information center, Specialist, Private agency, and the informal sources like Reading newspapers, journals, magazines, Having interaction with functional managers, and Having interaction with customers, intermediaries and others.

9. 3. Marketing Research System
It is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. The main purpose of marketing research is to provide reliable, complete, and up-to-date information for decision making. The major features of marketing research are:
Systematic
Objectivity
Informative
Problem-based
Decision

10. 4. Decision support system or analytical system
Analytical system is a set of statistical or mathematical tools and decision models that help the marketing managers in analyzing data gathered or supplied through the sub-systems of the MIS and making rational decision. Analytical system helps marketers to make decisions on the problems by telling the truth about the situations. The components of marketing DSS are:
Data bank: A data bank is a store of data that stores different kinds of data and information received from different sources.
Method bank: It is a statistical tools bank.
Model bank: It consists of different programs/models and optimization routines developed by the organization.

11. Process of Marketing Research
Defining the problem and establishing the objective
Developing the research plan: It constitutes the decisions on the:
Sources of Data: Primary sources and secondary sources
Research approaches: It includes:
Observational research: On the spot observation and gaining experiences about the facts or events.
Focus group research: A focus group of 6-10 skilled persons is gathered to discuss a project.
Survey research: Studying a large and small population or universe by selecting and studying samples choices.
Experimental research: Capturing cause-and-effect relationships by eliminating competing explanations of the observed findings.

12. Research instrument: It includes questionnaire and mechanical instruments (eye cameras, calculators, audiometers, cassette players, telescopes, etc.)
Sampling plan: It includes:
Sampling unit: target population to be sampled
Sample size: number of population to be surveyed
Sampling procedure: preparing certain class intervals
Contact method: using telephone, mail questionnaire or personal interviews

13. Collecting the information
Prepare a list of population to be interviewed or contacted
Make arrangement for travel to the identified areas
Contact the target group population and start interviewing or distribute questionnaire
Check whether the information collected are relevant and adequate
If data are relevant, proceed for tabulation
Analyzing the information
Select the information needed and avoid unnecessary information
Tabulate the information
Classify the information as per objective
Use statistical or mathematical tools or models
Presentation of the findings and submission of the report

14. Areas of Marketing Research
Advertising research:
Motivation research
Copy research
Media research
Studies of advertising effectiveness
Business economics and corporate research:
Short-range forecasting
Long-range forecasting
Studies of business trend
Pricing studies
Plant and warehouse location studies

15. Corporate responsibility research:
Consumer’s right-to-know studies
Ecological impact studies
Study of legal constraints
Social values and policies study
Product research:
New product acceptance and potential studies
Competitive product studies
Testing of existing products
Packing research – Design or physical characteristics

16. Sales and market research:
Measurement of market potentials
Market share analysis
Determination of market characteristics
Sales analysis
Establishment of sales quota, territories
Distribution channels studies
Test markets, store audits
Consumer panel operations
Sales compensation studies
Promotional studies of premiums, coupons, sampling and so on