Meaning of Marketing Information System
A marketing information system (MIS) is designed to bring diverse pieces of data together to build a cohesive body of knowledge. As will be demonstrated momentarily, an MIS is more than raw data or information useful for decision making.
Additionally, an MIS provides tools for understanding the data it collects. Additionally, as Kotler defines an MIS, it is more than a data collecting system or a collection of information technologies.
“A marketing information system is a continuing and interacting structure of people, equipment and procedures to gather, sort, analyse, evaluate, and distribute pertinent, timely and accurate information for use by marketing decision makers to improve their marketing planning, implementation, and control”.
An MIS commences with a breakdown of its four primary components: internal reporting systems, marketing research systems, marketing intelligence systems, and marketing models.
While MISs vary in sophistication – with many in developed nations being computerised and few in underdeveloped ones – a fully-fledged MIS should have these components, regardless of the techniques (and technologies) for collecting, storing, retrieving, and processing data.
Components of Marketing Information System
There are four components of a Marketing Information System (MIS) as mentioned below:
- Internal Records,
- Marketing Intelligence,
- Marketing Research (MR), and
- Marketing Decision Support System.
Now let’s discuss them in detail:
The ‘Internal Record’ is the initial component of MIS. Marketing managers obtain a wealth of information from the company’s internal records. These records keep track of current sales, expenses, inventory, cash flows, and accounts receivable and payable.
Numerous businesses retain electronic internal records. Internal records enable marketing managers to obtain trustworthy information more quickly.
All businesses with a long history have a ton of information. It is typically underused because it is compartmentalised, either by an individual entrepreneur or by bigger company units. That is, information is frequently classified by kinds, such as financial, production, personnel, marketing, stockholding, and logistical data.
Often, the entrepreneur or employees in the functional units holding the data do not recognise how it may benefit other decision-makers. Similarly, decision-makers may overlook the value of information from other functional areas and neglect to seek it.
Marketing research is a proactive search for information. That is, the firm that commissions these studies does so to solve a perceived marketing problem. In many circumstances, data is gathered in a planned fashion to address a well-defined problem (or a problem that may be identified and solved within the course of the research) (or a problem that can be defined and solved within the course of the study). The third sort of marketing research is not around a specific marketing problem but rather an endeavour to continuously analyse the marketing environment.
These monitoring or tracking operations are ongoing marketing research studies, generally including panels of farmers, customers or distributors from whom the same data is collected at regular intervals. Whilst the ad hoc study and ongoing marketing research vary in the orientation, however, they are both proactive.
Marketing Decision Support System
‘Marketing Decision Support System’ is the fourth component of MIS. These are the tools that allow the marketing managers to examine data and to make better marketing decisions. They include hardware, i.e. computer and software applications. The computer assists the marketing manager to examine the marketing information.
It also allows them to make better judgments. In reality, modern marketing managers cannot operate without computers. There are several software packages, which assist the marketing manager to conduct market segmentation, pricing fixing, advertising budgeting, etc.