Marketing Information System

                                

Marketing Information System (MIS) collects, analyses, and supplies a lot of relevant information to the marketing managers. It is a valuable tool for planning, implementing and controlling the marketing activities.
The role of MIS is to identify (find out) what sort of information is required by the marketing managers. It then collects and analyzes the information. It supplies this information to the marketing manager at the right time. MIS collects the information through its subsystems. These subsystems are called components.
The four main components of Marketing Information System (MIS) are:
·        Internal Records,
·        Marketing Intelligence,
·        Marketing Research (MR), and
·        Marketing Decision Support System.

The basic components of MIS are depicted and explained below.
Internal records :
The first component of MIS is ‘Internal Record’. Marketing managers get lots of information from the internal-records of the company. These records provide current information about sales, costs, inventories, cash flows and account receivable and payable. Many companies maintain their computerized internal records. Inside records help marketing managers to gain faster access to reliable information.

Marketing intelligence :
The second component of MIS is ‘Marketing Intelligence’. It collects information from external sources. It provides information about current marketing-environment and changing conditions in the market. This information can be easily gathered from external sources like; magazines, trade journals, commercial press, so on. This information cannot be collected from the Annual Reports of the Trade Association and Chambers of Commerce, Annual Report of Companies, etc. The salesmen’s report also contains information about market trends. The information which is collected from the external sources cannot be used directly. It must be first evaluated and arranged in a proper order. It can be then used by the marketing manager for taking decisions and making policies about marketing. So, marketing intelligence is an important component of MIS.

Marketing research :
The third important component of MIS is ‘Marketing Research’. MR is conducted to solve specific marketing problems of the company. It collects data about the problem. This data is tabulated, analyzed and conclusions are drawn. Then the recommendations are given for solving the problem. Marketing research also provides information to the marketing managers. However, this information is specific information. It can be used only for a particular purpose. MIS and MR are not substitutes of each other. The scope of MIS is very wide. It includes ‘MR’. However, the scope of MR is very narrow.

Marketing decision support system :
The fourth component of MIS is ‘Marketing Decision Support System’. These are the tools which help the marketing managers to analyze data and to take better marketing decisions. They include hardware, i.e. computer and software programs. Computer helps the marketing manager to analyze the marketing information. It also helps them to take better decisions. In fact, today marketing managers cannot work without computers. There are many software programs, which help the marketing manager to do market segmentation, price fixing, budgets, etc.

                   Features of Marketing Information System MIS
            
                  The main characteristics or features of Marketing Information System (MIS):

  1. Continuous system : MIS is a permanent and continuous system of collecting information. It collects information continuously.
  2. Basic objective : The basic objective of MIS is to provide the right-information at the right-time to the right-people to help them take right decisions.
  3. Computer based system : MIS is a computer-based system. It uses computers for storing, analyzing      and supplying information. It also uses micro-films for storing information. Therefore, it is very quick and accurate.
  4. Future-oriented : MIS is future-oriented. It provides information for solving future problems. It is not      past-oriented.
  5. Used by all levels : MIS is used by all three levels of management, i.e. top, middle and lower. It is used for making marketing plans, policies and strategies. This is used to solve marketing problems and to take advantage of business opportunities.
  6. Sources : MIS collects information from both, internal and external sources. For example, information is collected from company records, publications, etc.
  7. Collects marketing information : MIS collects all types of marketing information. It collects information about the consumer competition, marketing environment, government policies, etc. It supplies this information to the marketing managers.
  8. Helps in decision making : MIS supplies up-to-date and accurate information. It helps marketing managers to take quick and right decisions.
                     Difference between MIS vs MR

Now let's distinguish MIS and Marketing Research (MR) on above points.
  1. Meaning :
    1. MIS means to collect, analyze and supply relevant marketing information to the marketing managers. The marketing managers use this information for taking effective marketing decisions. It is a permanent and continuous process.
    2. Marketing Research (MR) is a systematic process of collecting and analyzing information to solve a specific marketing problem.
  2. Purpose :
    1. The main purpose of MIS is to provide relevant information to marketing managers and enable them to make effective marketing decisions.
    2. However, the main purpose of Marketing Research (MR) is to solve a specific marketing problem.
  3. Scope :
    1. The scope of MIS is wide. Marketing Research (MR) is one of its component. It is not only used to solve problems but also helps to prevent problems in the future.
    2. The scope of Marketing Research (MR) is narrow. It is one small part of MIS. It solves a specific present marketing problem.
  4. Nature :
    1. MIS is more nonspecific or general in nature. It can solve many types of marketing problems.
    2. Marketing Research (MR) is more specific or particular in nature. At one time, it can only solve a single type of marketing problem.
  5. Reports :
    1. MIS gives four types of reports namely, plan-reports, periodic-reports, triggered-reports and demand reports.
    2. Marketing Research (MR) provides only one report called as ‘MR Report.’
  6. Orientation :
    1. Orientation of MIS is more future-oriented when compared to MR.
    2. However, the orientation of Marketing Research (MR) is more past and present one when compared to MIS. It concentrates more on earlier and latest information. It uses this information to solve a current marketing problem.
  7. Problems :
    1. MIS deals with and attempts to solve many different marketing problems at one time. For this, it collects, stores, analyze and supply relevant market information to the marketing managers.
    2. Marketing Research (MR) only deals with a single marketing problem at one time. It doesn't solve multiple marketing problems simultaneously.
  8. Data :
    1. In MIS, the data is collected more frequently, usually almost daily. This is a must for every company.
    2. In Marketing Research (MR), the data is not collected as frequently as MIS. It is collected on a required basis.
  9. Operation :
    1. MIS is a permanent and continuous system. Here, the inflow of market information never stops. Data is constantly collected and stored for further analysis. It is properly analyzed, studied and well-organized before supplying to the marketing managers. MIS has a starting but no ending point.
    2. Marketing Research (MR) is not a continuous system. Here, data is collected only when a company faces a specific marketing problem. It has a starting and ending point.
  10. Computers :
    1. MIS is heavily based on the use of computers. Here, computing technologies are widely used to ease and facilitate data collection, its storage, analysis, retrieval and supply of relevant information to marketing managers of the company.
    2. Unlike MIS, Marketing Research (MR) hardly makes use of computers. It uses computers only for analyzing some information and is not entirely based on computing technologies.
            Now let's discuss and find out, “How a good MIS must be?”

Unified and centralized :
 MIS must be unified and centralized. It collects and stores different types of market information. All of this information must be unified and centralized. That is, all the marketing information must be brought together (unified) and kept at one central place (centralized). So, it must be at the central-office. This will result in easy access and quick reference. The managers will be able to find all the required information at one place.

Facilitate decision making :
 MIS must facilitate decision making. That is, it must guide the marketing managers in decision making. It must provide required information to the managers to help in taking decisions. This information must be of a good quality. That is, it must be relevant, reliable, and up-to-date. This will result in an accurate decision-making process. So, it must not only be a data bank. It must play a positive role in the decision-making process.

Quick and accurate information :
MIS must provide quick and accurate information. Today, managers have to take quick-decisions because the marketing is moving very fast. If they don't take quickest decisions, then they will lose many marketing opportunities. Therefore, it must provide quick information to the managers. This information must also be accurate, regular and continuous. It must be a user-oriented one. It must collect, classify, verify, store and supply information quickly and accurately.

Economical :
MIS must be economical. That is, it must not be very costly. The expenditure on it must be minimum. It must not exceed its value. It must give maximum benefits to the company at a minimum cost. It will be economical only if it is selective. It must be particular in collecting, analyzing, storing and supplying information. It must use a minimum number of employees in its operation. It must be economical because it is not directly productive. It is a service and support function.

Selective :
MIS must be selective. That is, it must not collect all the market information. It must only collect relevant information. It must collect information, which is very essential and useful for decision making. If it is not selective there will be a waste of time, energy, storage space and money.

Future oriented : 
MIS must be forward looking i.e. future-oriented. It must not be a past-oriented one. It must give more importance to future-oriented information. It must provide information for solving problems, which may come up in the future. The company will be successful if their marketing managers are future-oriented. The marketing managers can be so only if the MIS is also future oriented.

Supply information regularly : 
MIS must supply information regularly. The business environment is changing constantly. So, the marketing managers have to take marketing decisions continuously. Therefore, they require a regular and continuous flow of market information. This information must be provided by MIS. So, it must supply information regularly to the marketing managers.

Use new techniques :
MIS must use new techniques for collecting, analyzing, storing and supplying information. It must use computers and micro-films. It must use new communication techniques. It must also make the use of the Internet and latest software programs. These newer techniques will increase the efficiency and accuracy of MIS. MIS will also become more economical by using new techniques.



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