Concept of Marketing Information System and its Components

Marketing Information System (MIS)

A marketing information system (MIS) is a collection of techniques and procedures created to regularly or continuously produce, assess, and retain information about anticipated marketing decisions. Various parts of marketing could use an information system operationally, managerially, and strategically.

We all understand that no marketing activity can be carried out in a vacuum. When we say something doesn't work in a vacuum, we mean that it is being influenced by a number of external and internal, controlled and uncontrollable variables. As a result, in order to understand the forces at play and their effects, marketers must collect data and information using their own resources. In terms of marketing, we can say that this individual is attempting to gather market information or some other type of marketing information system (MIS).

If the marketing choice includes a robust information system that gives the business a competitive edge, its efficacy is demonstrated. Approaching marketing information in an erratic way is not advised. When conducting research in this manner, a corporation runs the following risks:

• Opportunities are sometimes lost.
• It's possible that rivals' behavior and environmental changes go unnoticed.
• It might be challenging to examine data collected over time.
• Plans and decisions for marketing may not have been thoroughly assessed.
• Data gathering may be fragmented.
• It's possible that old studies aren't stored in an accessible way.
• If a new study is needed, there may be time delays.
• Actions could be reactive rather than proactive.

Labor expenditures, a lengthy setup process, and the complexity of setting up an information system are the drawbacks of a marketing information system. Marketers frequently lament their lack of sufficient marketing data, their excess of inaccurate data, or both. A strong marketing information system will assist in resolving those issues.

The primary function of MIS is to determine the type of information needed by marketing managers. The information is then gathered and examined. The marketing manager receives this information from it at the appropriate moment. The information is gathered by MIS using its subsystems. Components are what we term these subsystems.

Components of Marketing Information System MIS

The Marketing Information System (MIS) is made up of four primary parts:

• Internal Records
• Marketing Intelligence
• Marketing Research(MR)
• Marketing Decision Support System.

The following diagram and explanation show the fundamental elements of MIS.

Internal Records: 

Internal Record is the first part of the marketing information system. The internal records of the company can provide marketing managers with a wealth of information. Current data on sales, costs, cash flows, inventory, accounts receivable, and accounts payable is available from these records. Many businesses keep their internal digital records up to date. Marketing managers benefit from faster access to reliable information thanks to internal records. Internal records are information that has been gathered from sources within the company to assess marketing performance and identify possibilities and concerns.

For daily planning, implementation, and control decisions, the majority of marketing managers frequently consult internal records and reports. While getting information from internal records is typically quicker and less expensive than getting it from any other source, there are certain drawbacks. Because internal data was collected for other purposes, it may be inaccurate or incomplete when used to guide marketing decisions.

Marketing Intelligence:

"Marketing Intelligence" makes up the second component of MIS. It gathers data from outside sources. This information can be easily obtained from outside sources such as magazines, trade journals, the commercial press, etc. This information cannot be obtained from annual reports of trade associations and chambers of commerce, annual reports of companies, etc. It provides information about the current marketing environment and the changing situation in the market. Market trends are also covered in the salesmen's report.

Information gathered from outside sources couldn't be used right away. It needs to be assessed first, then ordered properly. The manager can utilize it to inform decision-making and the development of various marketing programs and policies. So, a key element of MIS is marketing intelligence.

The total information requirement of the marketing department can be satisfied and specified through a marketing intelligence network. The marketing intelligence system determines the intelligence requirement, collects it by the marketing managers who require it by searching the surroundings and delivering it to them. The sources of marketing intelligence are numerous. The employees of the company, including the executives, scientists, engineers, buyers, and salespeople, are a major source of intelligence. However, the staff members of the company are frequently busy and neglect to convey important information. The corporation needs to "sell" its employees on the value of their work as intelligence gatherers, provide them the skills to recognize emerging trends, and encourage them to alert the company to any intelligence breaches.

Additionally, the company needs to encourage vendors, distributors, and clients to share crucial information. The company may also learn about rivals via what other people are saying about them at trade shows and in business periodicals. Or the company might observe what rivals do, including purchasing and examining rivals' products, keeping tabs on their sales, and scanning for new patents. The company also purchases intelligence data from independent vendors.

Marketing research:

Marketing research is the third of MIS's key components. A proactive search for information is marketing research (MR). In other words, the company that commissions these research does so to address a deemed marketing issue. Data and information are occasionally purposefully gathered to address a clearly defined issue (or problem that could be defined and solved within the course of the study). In order to address specific marketing issues facing the company, marketing research is carried out. It gathers information on the issue. Conclusions are reached after tabulating, analyzing, and reviewing the data. Following that, solutions to the problem are suggested. The marketing managers can learn something from marketing research as well. However, this information is specific information. It can be used only for a specific purpose. MIS and MR are not substituted for each other. The scope of MIS is very broad. It includes ‘MR’. However, the scope of MR is very narrow.

Marketing decision support system:

The "Marketing Decision Support System" is the fourth element of the marketing information system. These are the resources that aid in the analysis of gathered data and the improvement of marketing decisions by marketing managers. They consist of computer hardware and software applications. The marketing manager uses the computer to examine and assess the marketing data. Additionally, it enables individuals to make wiser selections. In reality, marketing managers today would be unable to function without computers. Numerous software tools are available to assist the marketing manager with tasks such as market segmentation, advertising, budgeting, price fixing, etc.

Reference

http://www.fao.org/docrep/W3241E/w3241e0a.html

http://kalyan-city.blogspot.com/2013/01/4-main-components-of-marketing.html