Marketing information systems and marketing research

1. MARKETING INFORMATION SYSTEM [MKIS] & MARKETING RESEARCH UNIT - V

2. MARKETING INFORMATION SYSTEM [MKIS] : A marketing information system consists of people, equipment and procedures to gather sort, analyse, evaluate & distribute needed tiny and accurate information to marketing decision makers. The company’s MKIS should represent across between what managers think & they need , what managers really need and what is economically feasible. “ A structural, interacting complex of persons, machines & procedures designed to generate and orderly flow of pertinent information, collected from both intra and extra firm sources, for use as the basis for decision making in specific responsibility areas of marketing management ”.

3. KINDS / COMPONENTS OF MKIS : Marketing control system {marketing intelligence system} Marketing planning system {internal record system} Marketing research system Marketing decision support system [DSS]

4. THE ORGANISATION OF MARKETING INFORMATION SYSTEM [MKIS] : PRODUCTION SALES DEALERS MANUFACTURERS CUSTOMERS MARKETING INFORMATION SYSTEMS GOODS GOODS PROCESSED INFORMATION

5. DIFFERENCES B/W MKIS V/S MARKETING RESEARCH : MKIS : It is future oriented MKIS is continuous MKIS became popular in 1960’s MKIS uses computer The main objective is to assist decision making MKIS is wider scope

6. MARKETING RESEARCH : It is post mortem Marketing research is not continuous Marketing research became popular in 1950’s Marketing research may be or may not be. To achieve certain objective marketing research is conducted. Marketing research is a part of MKIS.

7. MARKETING RESEARCH : “ The systematic gathering, recording and analysing of data about problems relating to the marketing of goods & services ’’. Such research may be undertaken by impartial agencies or by business firms or their agencies for the solution of their marketing problems and inclusive term which embraces all research activities carried down in connection with the management of marketing work.

8. OBJECTIVES OF MARKETING RESEARCH : To define probable market for a particular product. To find out general market conditions and tendency's To assess competitive strengths and policies[SWOT analysis] To indicate the distribution methods best suited to the product & market To assess the probable volume of future sales To know customer acceptance [consumer survey]

9. FUNCTIONS OF MARKETING RESEARCH [M.R] : The production of marketable goods The distribution of marketable goods The size, nature & the organization of the sales The demand creation activities It ascertains the position of a company in specific industry It indicates the present & future trends of the industry It helps in the development & introduction of new products It offers guidance for improving the current products of the company It helps in assessing & enhancing the effectiveness of sales management It can reduce the risk involved in marketing decisions.

10. ELEMENTS OF MARKETING RESEARCH : Market research Sales research Product research Packaging research Advertising research Business economic research Export marketing research Media research Distribution research

11. ADVANTAGES OF MARKETING RESEARCH : It facilitates planned production To forecast the demand Acceptance of new products is judged It helps to remove wasteful expenditure and cost Marketing research helps to study the effectiveness of pricing policies, channels of distribution, advertising , sales promotion & other activities To understand consumer behaviour Helpful in improving relations with dealers Helpful in overcoming sales resistance

12. LIMITATIONS OF MARKETING RESEARCH : Marketing research huge amount of time & money. Small business firms cannot afford it. It is the study of human behaviour. so., it cannot be 100% accurate. It depends on the quality of research staff. Individual views of executives may give bias/ carelessness Time lag b/w research study and implementation It is very difficult to measure the effectiveness of marketing research.

13. PROCESS OF MARKETING RESEARCH : Problem formulation Decision on fact Data collection The marketing sample Data evaluation Interpreting the data Report preparation Executive report Technical report Data report Popular report Designing questionnaire Interviewing

14. CREATING A RESEARCH DESIGN : Choosing the approach Determining the types of data needed Locating the source of data Choosing a method of collecting data SOURCES OF DATA : Internal sources Product analysis Territorial analysis Customer analysis External sources Primary sources Secondary sources

15. SAMPLING SAMPLING METHODS : Law of statistical regularity Law of inertia of large numbers Qualities of a good sample It must be random It must be representative It must be proportional It must be adequate

16. TYPES OF SAMPLES : Probability or random Systematic sampling Stratified sampling Cluster & area sampling Multi stage Segmental sampling Non – probability or purposive Convenience Judgement Quota sampling

17. SOURCES OF PRIMARY DATA : METHODS : Survey method Personal interview Mail survey Telephone Questionnaire Experimental method Product testing Psychological techniques Consumer panels

18. SOURCES OF SECONDARY DATA : Government reports. Technical, economic & commercial journals Information gathered by professional organisation and associations. 4. Published or unpublished thesis. Data collected by universities, colleges & research organisation. 6. By – products of administration. 7. Data collected by different organisations.

19. MARKETING CONTROLS ANNUAL PLAN CONTROL : [e.g.: budget] Annual plan control aims to ensure that the company achieves the sales, profits and other goals established in its annual plan. It is a management by objectives. It [management] sets monthly or Quarterly goals. It monitors its performance in market place. It determines the causes of serious performance deviations. It takes corrective action to close the gaps b/w goals & performance. This control model applies to all levels of organisation. Top management sets annual sales & profit goals that become specific goals for lower levels of management.

20. THE CONTROL PROCESS : Goal setting Performance Measurement Performance diagnosis Corrective action WHAT DO WE WANT TO ACHIEVE ? WHAT IS HAPPENING ? WHY IS IT HAPPENING ? WHAT SHOULD WE DO ABOUT IT ?

21. FIVE [5] TOOLS TO CHECK PERFORMANCE OF THE PLAN : Sales analysis Market share analysis Marketing expense- to – sales Financial analysis Market based score card analysis

22. PROFITABILITY CONTROL : Companies need to measure the profitability of their products, territories, customer groups, segments, trade channels and order sizes. This information will help management to determine whether any products or marketing activities should be expanded, reduced or eliminated. PROFITABILITY ANALYSIS – STEPS : Identifying functional expenses. Assessing functional expenses to marketing entities. Preparing a P &L statement for each marketing entity. Determining corrective action. Direct v/s full costing [ABC]

23. EFFICIENCY CONTROL : More efficient ways to manage the sales force, advertising, sales promotion and distribution in connection with these marketing entities. Sales force efficiency Advertising efficiency Sales promotion efficiency Distribution efficiency

24. STRATEGIC CONTROL : From time to time, companies need to undertake a critical review of overall marketing goals and effectiveness. Each company should periodically reassess its strategic approach to the market place with marketing effectiveness reviews and marketing audits. Companies can also perform marketing excellence reviews and ethical & social responsibility reviews.

25. IMPORTANT Q’S : Explain the concept of MKIS ? What are the components of a marketing information system ? [ pg 398 in K arunakaran ] What is marketing research ? Explain the process involved in marketing research ? [ pg 89 in P hilip K otler ] Explain various marketing controls ? Analyse the market research in India giving suitable examples ?