The term “marketing information system” refers to a collection of procedures and methods for the systematic and planned gathering, processing, and display of data to make marketing choices.
As a collection of procedures and methods, marketing information systems provide the timely gathering and dissemination of objective, trustworthy, and correct information to marketing managers consistently in order for them to make educated decisions. A marketing information system is a complex system comprised of several subsystems that a business uses to gather, analyse, and store data as required by marketing managers periodically.
The marketing information system is designed to collect pertinent information regularly from the external marketing environment and distribute it to marketing managers after necessary editing and processing to assist in their planning, organisation, and control activities.
Marketing choices made by firm leaders and action plans produced by an organisation in light of gathered data are quickly communicated to other market participants. All of this information becomes a part of the broader marketing environment. Other businesses learn about these competitive acts and other market developments through their marketing information systems and adapt their marketing policies and plans accordingly.
As with the initial business, the decisions and actions performed by rivals quickly become part of the wider environment and become known to other market participants. Thus, the process continues in a cyclical fashion, enabling each firm to understand what is occurring in the market and how it should adapt to the changing environment via its marketing information system.
Structure of Marketing Information System
MIS systems comprise four components: user interfaces, application software, databases, and system support. The following is a breakdown of each of these elements:
1) User interfaces: User Interfaces are a number important part of marketing information systems. The most important component of the system is the managers who will utilise the MAkINAS and the interface they require to evaluate and apply marketing data successfully. The system’s architecture will be determined by the sort of choice that managers must make.
2) Software for applications: These are the programmes used by marketing decision-makers to gather, analyse, and manage data in order to produce the information needed to make marketing decisions.
3) Marketing to databases: A marketing database is a method for organising and storing marketing data files.
4) Support for the system – System managers manage and maintain system assets, such as software and hardware networks, as well as monitor their actions and verify compliance with corporate regulations.
MIS systems also include Marketing Decision Support Systems (MDSS), which rely on basic data collection tools like Microsoft Excel, SPSS, and online analytical tools. A data warehouse, basically a data repository system that helps store and further process data obtained internally and externally, is where data generated for analysis is kept and processed.
Advantages in Marketing Information System
“With a more competitive and developing market, the quantity of information required every day by a business is substantial,” according to Bhasin. As a result, they’ll need to set up a marketing information system. Marketing information systems have a number of advantages.
Organise Data Collection – MkIS can assist managers in organising large amounts of data gathered from the market, resulting in increased productivity.
A wide view — With a proper MkIS in place, the organisation can be followed and separate processes can be analysed. This aids in the development of a larger viewpoint, allowing us to determine which activities may be done to support improvement.
Storage of Critical Data – The storage of critical data is critical in execution, demonstrating once again that MkIS is necessary not only for information but also for execution.
Crisis Avoidance – The best approach to evaluate a stock (stock market) is to look at its prior performance. Moneycontrol and other top websites survive on MIS. MIS also aids in the tracking of margins and earnings. With a great information system in place, an organisation’s course can be assessed and potential crises may be avoided before they occur.
Coordination – Consumer Durables and Fast-Moving Consumer Goods (FMCG) firms have a large number of processes that must be coordinated. These businesses rely entirely on MIS to keep their operations functioning smoothly.
MIS plays a critical part in the planning process, as the planning technique necessitates the gathering of information. The organisation’s strengths must come first in planning, followed by the business environment, and lastly, competitive analysis. All of these are included by default in a functioning MkIS and are updated on a regular basis. As a result, MkIS is critical for planning and analysis.
Risk in Marketing Information System
“However, because of the quick changes in the external market, marketing data should be collected on a frequent basis.” According to Bhasin, the following are some of the potential dangers that the company might face if they do not follow the rules:
- It’s possible that opportunities may be missed.
- It’s possible that employees aren’t aware of environmental changes or rivals’ conduct.
- Data collected over a long period of time may be challenging to analyse.
- It’s possible that marketing strategy and judgments aren’t thoroughly scrutinised.
It’s possible that data collection will be discontinuous.
- Previous research may not be saved in an easily accessible format.
- If new research is necessary, there may be a time lag.
- Actions might be reactive rather than proactive.
One of the key impediments to marketing information systems is maintenance, complexity, and setting up a MIS. Furthermore, incorrect data being input into MkIS might be inconvenient, necessitating the establishment of suitable filters.
“Both primary and secondary researches give lots of the data and information needed for marketers,” Kotler and Philip write, “whereas secondary data sources are significantly superior in providing data quickly and at a reduced cost.” Simultaneously, a company may not be able to find all of the data necessary on its own, but it may be possible to do it with the support of secondary research.
However, in order to ensure accuracy, updates, and fairness, researchers must examine data obtained from both primary and secondary data sources. Each of the three basic data gathering methods—observational, survey, and experimental—has benefits and drawbacks. Similarly, each research contact technique — mail, phone, human interview, and internet – has its own set of benefits and cons.