Transcript Marketing Information System (MKiS)

Marketing Information System
(MKiS)
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• What ?
– Comprises all computer and non-computer systems which
assist the marketing function to operate effectively.
– Therefore, Mkis include many systems which are not
generally thought of in marketing system (such as Ledger,
accounts receivable, production-planning systems).
– Def: A formal system designed with the objective of
creating an organised, regular flow of relevant information
for use and analysis by marketing decision makers.
Marketing Information System
(MKiS)
• Built up from several different systems,
each with its own purpose which may or
may not be marketing related.
• The design can rely on existing systems
within organisation and are likely to end-up
as bespoke, compromise solutions which
are unique to each company.
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Marketing Information System
(MKiS)
• The concept of Mkis is not
limited to the computer hardware
and software alone. The
emphasizes is on the provision of
relevant information rather than
the technology itself.
• The system:
– should not be developed as
isolated neither as an ad-hoc
system.
– Should involve many aspects
of management.
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– Draw data from many different
sources
– Organise it so regular and
useful information can be
provided to marketing
managers.
– Requires other integral parts
which serve as tools that will
allow marketing people to
analyse and manipulate data to
make decision. E.g. DSS,
Data Warehousing and Data
Mining
Marketing Information System
(MKiS)
• The Information
must be relevant to
marketing decisions.
• High-level marketing
decision makers must
be included in
planning the
information
requirements
• Marketing managers
are expected to carry
out further analyses of
the information
provided by the
system.
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Marketing Information System
(MKiS) - Users
• MKiS is accessed by many different groups
with different objectives and different types
of information.
• Mainly they are divided into 3 groups:
– Senior Marketing Management
(concerning on the overall strategic positioning
of brands and resource allocation between
brands. They decide which one should be milk
for cash and which should be invested for
growth.)
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Marketing Information System
(MKiS) - Users
– Middle Marketing Management
(This level will process information and summarise it in report
form to submit to Senior Marketing Managers)
– Information is needed for day-to-day marketing activities:
• Marketing planning
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-- Monitoring Competitors’ marketing
initiatives
Marketing Research
-- Product Management
Marketing Segmentation -- Performance management
Media Selection
-- New Product Development
Sales Promotions
-- Measuring ADS effectiveness
Decision Support System (DSS)
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• Def: A Subset of the broader category of MIS used by people in
managerial and executive positions.
• An Integrated Information System and Complex Database and
Decision System.
• It is a support tool that help managers deal with problems where
computer-based analysis is used to complement the manager’s own
judgement. Allowing the application of realistic decision rules to
market simulations, such as ‘what if’ questions.
• Allows direct interaction between the decision-maker and the
information base.
Decision Support System (DSS)
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• Examples of DSS :
– Excel, Lotus 1-2-3, Data Mining and Neural Networks.
– Data Mining: Used to find further sub-segments instead of focusing on
standard category. Integral of Data Warehouse (Database) and OLAP
(on-line analytical processing)
– Neural Network (a.k.a. AI) - The fundamental concept is that a computer
can be ‘trained’ to solve problem in a similar fashion to human brain, by
recognizing familiar patterns. E.g Micro-marketing, risk management
and fraud detection systems.
Information For Marketers
• To implement the marketing concept
effectively, information is required
especially on the characteristics, needs and
wants of the customers.
• Why? Due to intense competition, high cost
of advertising and new product
development. Thus marketers are required
to well research and plan their marketing
strategies. For this, they need effective
information.
Information For Marketers
• Accurate and timely information can
prevent firms from building campaigns on
mistaken assumptions.
• MKiS can produce reliable, accurate and
timely information.