Chapter 3- Marketing Information System.pdf

Marketing informatino sysytem is tbe best

1. Marketing
Information System
OSHADI RUPASINGHE
BBA (SEUSL), PGDIP (SLIM)

2. Learning Outcomes:
Define Marketing Information Systems
(MIS)
Identify components of a modern Marketing
Information System
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3. Marketing Information System
A marketing information system (MKIS) consists
of people, equipment and procedures to gather,
sort, analysis, evaluate, and distribute needed,
timely and accurate information to marketing
decision makers
Kotler & Armstrong
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4. Marketing Information System
A marketing information system is a set of
procedures and methods for the regular, planned
collection, analysis and presentation of
information for use in marketing decisions.
American Marketing Association
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7. Why MKIS
Competitive advantage
Execute better marketing plan
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8. Importance of Marketing
Information System
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AnticipationOfCustomerDemand-Everymarketerneedsup-to-dateknowledgeabout
consumerneedsandwants.
SystematicApproach-Expandingmarketsandcompetitivemarketingenvironment
requireadequatemarketintelligencesystem.
Economicindicator-Marketersmusthavelatestinformationonthechangingtrendsof
supply,demandandprices
SignificanceofAnalyzingCompetition-Marketercannotsurvivewithouthaving
informationregardingnature,characterandsizeofcompetitiontobemet.
DevelopmentofTechnology-Marketersmusthavelatestinformationregarding
technologicaldevelopment.
UnderstandingtheConsumer-Informationsystemcanestablishpropertwowayflow
ofinformationandunderstandingbetweenmarketersandconsumer.
MarketingPlanning-Marketingplansandprogramsarebaseduponinformation
suppliedbyeconomicforecastsandmarketresearch.

9. Components of MKIS
Internal record system
Marketing intelligence
Decision support system
Marketing research
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11. Components of MKIS
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12. Internal Record System
Internal databases are electronic collections of
information obtained from data sources within the
company.
Kotler & Armstrong
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13. Internal Record System
Marketing managers rely on data from internal
reports about orders, sales, prices, costs, inventory
levels, receivables, payables and so on.
The heart of the internal record system is the
order-to-payment cycle.
Sales representatives, dealers, and customers
dispatch orders to the firm.
The sales department prepares invoices and
transmits copies to various departments, Out-of-
stock items are back ordered.
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14. Internal Record System
Shipped items are accompanied by shipping and
billing documents that are sent to various
departments
Companies need to perform these steps quickly
and accurately, because customers favor firms that
can promise timely delivery.
Today many companies organize information in
databases-customer databases, product databases,
salesperson databases and so forth-and then
combine data from the different databases.
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15. Internal Record System
The customer database will contain every
customer’s name, address, past transactions, and
even demographics and psychographics (activities,
interests and opinions) in some instances.
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16. Marketing Intelligence System
A marketing intelligence system is a set of
procedures and sources managers use to obtain
everyday information about developments in the
marketing environment.
Kotler & Armstrong
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17. Sources of Marketing Intelligence
Marketing Managers
Sales Forces
Middlemen
Specialists
Outsourcing
Marketing information section
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18. Marketing Decision Support
System
Marketing decision support system (MDSS) is a
coordinated collection of data, systems, tools, and
techniques with supporting software and hardware
by which and organization gathers and interprets
information from business and the environment
and turns it into a basis for marketing action.
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19. Marketing Decision Support
System
A decision support system is a procedure that
allows a manager to interact with data and
methods of analysis to gather, analyze, and
interpret information.”
---Stanton
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20. Components of MDSS
Data Bank-A data bank is a store of data that
stores different kinds of data and information
received form different sources.
Methods Bank –It is a statistical tools bank
Model Bank-It consists of different
programs/models and optimization routines
developed by the organization.
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21. Marketing Research
Marketing research as the systematic design,
collection, analysis and reporting of data and
findings that are relevant to a specific marketing
situation facing the company.
Most large companies have their own marketing
research departments.
Some small companies can hire the services of a
marketing research firm or conduct research in
creative and affordable ways.
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22. Features of Marketing Research
Systematic
Problem oriented
Objective
Decision making
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23. Areas of Marketing Research
Product research
Advertising research
Consumer research
Sales research
Corporate research
Competitor research
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24. Steps in the Marketing Research
Process

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Step 1: Defining the problem and
research objectives
The manager and the researcher must work
together.
These objectives guide the entire process.
Exploratory, descriptive, and causal
research each fulfill different objectives.

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Step 1: Defining the Problem & Research
Objectives
Exploratory
Research
Descriptive
Research
Causal
Research
•Test cause-and-effect
relationships.
•Tests hypotheses about cause-
and-effect relationships.
•Sheds light on problem -suggest
solutions ornew ideas.
•Gathers preliminary information
that will help define the problem
and suggest hypotheses
•Ascertain magnitudes
•Describes things as market
potential for a product or the
demographics and consumers’
attitudes.

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Step 2: Developing the Research
Plan
Research plan is a written document which
outlines the type of problem, objectives, data
needed, and the usefulness of the results.
Includes:
Secondary data: Information collected for another
purpose which already exists
Primary data: Information collected for the
specific purpose at hand

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Secondary Data
Secondary data sources:
Government information
Internal, commercial, and online databases
Publications
Advantages:
Obtained quickly
Less expensive than primary data
Disadvantages:
Information may not exist or may not be usable

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Data that were
collected for another
purpose, and already
exist somewhere
(+)Obtained morequikcly
/ at lower cost
(-)Might not be
usable data.
Developing the Research Plan:
Data Sources
both mustbe:
Relevant
Accurate
Current
Impartial
Data gathered for
a specific purpose
or for a specific
research project

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Evaluate the Following
when Judging Data Quality
Relevance
Accuracy
Currency
Impartiality

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Primary Data
Primary research decisions:
Research approaches
Contact methods
Sampling plan
Research instruments

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Primary Data
Observation research
using people or machines
Discovers behavior but
not motivations
Survey research
Effective for descriptive
information
Experimental research
investigates cause and
effect relationships
Research Approach
Contact Method
Sampling Plan
Research Instrument
Decisions

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Research Approaches
Survey
Asking individuals about attitudes,
preferences or buying behaviors
(Descriptive)
Experimental
Using groups of people to determine
cause-and-effectrelationships
(Causal)
Observational
Gathering data by observing people,actions
and situations (Exploratory)

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Primary Data
Key Contact Methods
include:
Mail surveys
Telephone surveys
Personal interviewing:
Individual or focus group
Online research
Research Approach
Contact Method
Sampling Plan
Research Instrument
Decisions

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Strengths and Weaknesses of Contact
Methods Relate to:
Flexibility
Sample control
Data quantity
Cost
Interviewer effects
Speed of data
collection
Response rate

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Primary Data
Sample: subgroup of
population from whom
information will be collected
Sampling Plan Decisions:
Sampling unit
Sample size
Sampling procedure:
Probability samples
Non-probability samples
Research Approach
Contact Method
Sampling Plan
Research Instrument
Decisions

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Sampling Plan
Probability Sampling
Simple random sampleevery member of the population has
an equal chance of selection
Stratified random samplethe population is divided into
groups, random samples are drawn from each group
Cluster (area) samplee.g. groups such as blocks
Nonprobability Sampling
Convenience sampleThe most accessible population
members are selected to obtain information
Judgement sampleThe researcher uses judgement to select
population members who are good prospects for accurate
information
Quota samplefinds and interviews a prescribed number of
people in each of several categories

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Primary Data
Questionnaires
Include open-ended
and closed-ended
questions
Phrasing and question
order are key
Mechanical instruments
Nielsen’s people meters
Checkout scanners
Eye cameras
Research Approach
Contact Method
Sampling Plan
Research
Instrument
Decisions

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Step 3: Implementing the Research
Plan
Data is collected by the company or an
outside firm
The data is then processed and checked for
accuracy and completeness and coded for
analysis
Finally the data is analyzed by a variety of
statistical methods

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Step 4: Interpreting and Reporting
the Findings
The research interprets the finding, draws
conclusions and reports to management
Managers and researchers must work
together to interpret results for useful decision
making

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Analyzing Marketing Information
Statisticalanalysisandanalyticalmodelsareoften
used
Customerrelationshipmanagement(CRM)software
helpsmanageinformationbyintegratingcustomer
datafromallsourceswithinacompany.
CRMsoftwareoffersmanybenefitsandcanhelpa
firmgainacompetitiveadvantagewhenusedaspart
oftotalCRMstrategy.

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Distributing and Using Marketing
Information
Information Must be Distributed
to the Right Managersat the Right Time.
Distributes Nonroutine
Information for Special
Situations
Distributes Routine
Information for
Decision Making
Intranets&extranets

43. Conclusion
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•Marketinginformationsystemisanimportantfactorina
growingbusinesstodaywithincreasedcompetitionand
environmentalchangesaffectingtheconsumerworld.
•Itisthemarketinginformationsystemthatmakesor
unmakesanyorganizationintheperspectiveofmarketing
strategy.
•Marketinginformationsystemcalledaslifebloodof
marketing.