Transcript Marketing Information Systems

Marketing Information Systems
Presented By
Manjeet Singh
Introduction
 Marketing was the first functional area to exhibit an interest in
MIS. Shortly after the MIS concept originated, marketers tailored
it to their area and called it the MKIS.
 The model structure that we will use in this consists of input
subsystems that gather data and information from inside the firm
and from its environment, a database where the data is kept, and
output subsystems that transform the data into information.
 The MKIS consists of three input subsystems: AIS, marketing
research, and marketing intelligence. The output subsystems
address the information needs of the four ingredients of the
marketing mix (product, place, promotion, and price), plus an
integration of the four.
Functional Information Systems
 Marketing Principles : marketing consists of
individual and organizational activities that facilitate and
expedite satisfying exchange relationships in a dynamic
environment through the creation, distribution,
promotion, and pricing of goods, services, and ideas.
 Marketing Mix Marketing managers have a variety of
resources with which to work. The objective is to
develop strategies that apply these resources to market
the firm's goods, services, and ideas
Evolution of the Marketing Information
System Concept
 Marketing intelligence -- information that flows into the
firm from the environment.
 Internal marketing information -Information that is
gathered within the firm.
 Marketing communications --Information that flows
from the firm outward to the environment
Marketing Information System Model
 It consists of a combination of input and output subsystems
connected by a database.
 Output Subsystems : The product subsystem provides
information about the firm's products. The place subsystem
provides information about the firm's distribution network. The
promotion subsystem provides information about the firm's
advertising and personal selling activities. The price subsystem
helps the manager make pricing decisions. In addition, there is a
fifth subsystem, the integrated-mix subsystem, which enables
the manager to develop strategies that consider the combined
effects of the ingredients.
Contd…
 Database The data that is used by the output subsystems come
from the database. Some of the data in the database is unique to
the marketing function, but much is shared with other functional
areas.
 Input Subsystems The accounting information system
gathers data describing the firm's marketing transactions. The
marketing intelligence subsystem gathers information from
the firm's environment that has a bearing on marketing operations.
The marketing research subsystem conducts special studies
of marketing operations for the purpose of learning customer
needs and improving marketing efficiency.
Accounting Information System
 Marketing plays a role in the firm's AIS by providing sales order data.
 Perhaps the sales representatives enter the data from customer offices, using
laptops. Or sales order personnel at headquarters may take order data over the
phone or by mail and enter it into keyboard terminals.
 In some cases customers enter order data directly into the firm's computer,
perhaps using the Internet. The data is used to prepare information in the form
of periodic and special reports.
 The data also provides the input for mathematical models and knowledge-based
systems.
Data for Preparation of Periodic
Reports
 A classic example of how marketing information can be provided
by the AIS is sales analysis:-
 Sales analysis is the study of the firm's sales activity in terms of
which products are being sold, which customers are buying the
products, and which sales representatives are selling them.
 By listing the highest-selling products first, managers can easily
single them out and formulate strategies to make their sales
even more successful.
Data for Preparation of Special Reports
 The vast majority of data that is used to respond to managers'
database queries likely comes from data provided by the AIS.
An example is the sales analysis report.
Data for Mathematical Models and
Knowledge-Based Systems
 When we discussed the Decision Support Systems, we described
how the firm's executives could use a pricing model to gauge the
effects of price changes on profit.
 Much of the output information from the pricing model was
produced from data provided by the AIS.
 The key point is that if a firm does not have a good AIS, it cannot
expect to provide its problem solvers with good information.
Marketing Intelligence Subsystem
 Marketing has primary responsibility for the customers and competitors. Like
the other functional areas, marketing also has responsibilities in terms of the
government and the global community.
 The AIS gathers customer data, and the marketing intelligence subsystem
gathers competitor data. Marketing has no responsibility for establishing an
outgoing flow to the competitors, but it must establish an incoming flow.
 The term marketing intelligence may bring to mind visions of one firm spying
on another -- industrial espionage. A certain amount of such undercover
work goes on in the competitive world of business, but few instances have been
publicized. Firms are hesitant to report thefts of proprietary information for
fear of damaging their corporate image. Also, such violations are difficult for
authorities to prosecute.
Marketing Intelligence Subsystem
 Each functional area has a responsibility to interface the firm with particular
elements in the environment. Marketing has primary responsibility for the
customers and competitors. Like the other functional areas, marketing also has
responsibilities in terms of the government and the global community.
 The AIS gathers customer data, and the marketing intelligence subsystem
gathers competitor data. Marketing has no responsibility for establishing an
outgoing flow to the competitors, but it must establish an incoming flow.
 The term marketing intelligence may bring to mind visions of one firm spying
on another -- industrial espionage. A certain amount of such undercover
work goes on in the competitive world of business, but few instances have been
publicized. Firms are hesitant to report thefts of proprietary information for
fear of damaging their corporate image. Also, such violations are difficult for
authorities to prosecute.