Marketing Information Systems

1. Marketing Information Systems Presented By Manjeet Singh

2. 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.

3. 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

4. Evolution of the Marketing Information System Concept • Marketing intelligence -- informationthat flows into the firm from the environment. • Internal marketing information -Informationthat is gathered within the firm. • Marketing communications --Informationthat flows from the firm outward to the environment

5. 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.

6. 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.

7. Accounting Information System • Marketing plays a role in the firm's AISby 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.

8. Data for Preparation of Periodic Reports • Aclassic example of how marketing information can be provided by the AISissales analysis:- • Sales analysis is thestudy 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.

9. 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.

10. 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.

11. 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.

12. 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.