A Definitive Guide Of Marketing Information System (MIS)

This is a Definitive Guide Of Marketing Information System (MIS). In this Guide, You will Learn all About MIS. Let’s have a look at the content of the table.

Content of Table:

  1. What is Marketing Information System (MIS)?
  2. Characteristics of marketing information system.
  3. Component of marketing information system.
  4. Marketing information system process.
  5. Types of marketing decisions.
  6. Importance of marketing information system.

What Is Marketing information system(MIS)?

A marketing information system is the process of systematic technology for the collection of relevant data of the market information regards to opinions, customers views, prices, competitions, sales, promotions, and allocation of sound policies and services from both the internal and external sources.

After proper analysis and understanding of the marketing environment, this information is collected from customers, competitors, company sales force and other staff, government sources, specialized agencies, and sources.

The marketing information is necessary to make vital marketing decisions to ensure effective decisions making in the organization.

Philip Kotler( Father of Marketing) defined it- “A marketing information system consists of people, equipment, and procedures to gather short analyze, evaluate and distribute needed timely and accurate information to market decision-makers.”

The marketing information system helps the marketers find relevant information about the marketing environment, which can be valuable for them to make efficient decisions related to the marketing information, such as the development of new products, pricing, packaging, distribution, promotion, media, etc.

But now the question is that do you know? How you should apply this technology to your business. What is the process and the component of this technology? How can it be necessary for your business’s success?

If you are looking for all these answers, you can read them below and find all the valuable information about this system.

Characteristics of marketing information system

Currently, all kinds of top businesses use this marketing information system to succeed in their business and remain at the top continuously.

This system has so many relevant features so that it can help you to attain a competitive edge.

So let’s get to know what the main characteristics features of this system are.

  • Continuous system

MIS is the continuous and permanent system of collecting information. It contains the information continuously so that it can give you feedback information continually for marketing operations.

  • Computer-based system

The marketing information system is a quick and accurate process. This system uses computer devices for gathering, analyzing, storing, and supplying information. For storing the information it uses micro-films, so it is a very quick process.

  • Consistence and accurate information

MIS gives accurate information that can help the organization to maintain a relevant marketing database related to various elements of the marketing mix such as product designing, pricing, promotion, and distribution.

  • Future-oriented

The marketing information system initiates planning and strategy for future marketing operations. To manage the business well, marketing managers should be future-oriented. Therefore, MIS should be in a position to provide information to solve problems that may crop up in the future. It is must be future-oriented rather than past information.

  • Cost-effective information

There is no sense in collecting whatever information is available in the market. MIS facilitates the collection of only relevant information. Efforts are made to collect not only relevant data but also cost-effective.

  • Facilitates Decision making

MIS provides up-to-date and accurate information so it helps marketing managers to take quick and effective decisions to achieve objectives of the marketing and that of the organization.

  • Applicable at all levels of management

MIS is applicable for collecting all types of information like consumer competitions, marketing information, and government policies. This information helps marketing managers to decide on marketing strategies.

Component of marketing information system

The subsystems through which MIS collects the internal and external data are called the components of this system.

The marketing information system integrates data collection, processing, analysis, and reporting for streamlining marketing activities by using the four components. These are the following;

1. Internal Reporting System

2. Marketing research system

3. Marketing intelligence system

4. Marketing decision support system

1. Internal Reporting System

The collection of the internal records is the first component of the MIS system. The companies can collect the internal documents comprising sales data, product database, customer database, financial database, operation data, etc.

The marketing managers can collect these data from the company’s internal records, such as; billing documents, invoices, and transmit copies, which the employees prepare once they receive the goods and services from the customers.

These internal records help determine the current information about inventories, sales, costs, cash flows, payable, and accounts receivable.

The business’s current records help marketing managers manage the work levels and decide its objectives to design the future sales strategy.

2. Marketing research system

A marketing research system is used to solve the specific problem of the company.

It is done with the help of a systematic collection, analysis, organization, and interpretation of the primary and secondary data.

This information is used by the marketing managers for solving all the problems, and take help to decision making for the positive objective of the company.

Primary data (first-hand data) can be collected by our researchers by certain methods such as personal interviews, seminars, surveys, and questioners.

Secondary data (second-hand data) can be found through magazines, journals, books, research reports, etc.

Both types of data provide complete information about the marketing environment to the marketing managers, help them analyze customers’ tastes and preferences, competitor’s strategies, the scope of the launch of new products, etc.

3. Marketing intelligence system

This component of the marketing information system collects current information of the marketing environment, changes, and market happenings from external sources to the organization.

The marketing intelligence system keeps the organization aware of the daily update of the market.

This data includes information about the customers’ pricing strategy, changing market trends, changing in the customer’s tastes and preferences, promotion strategy of the competitors, and new products launched in the market.

This information can be collected from external sources such as; trades, commercial press, and journals.

With the help o this efficient marketing information system, the companies can work aggressively to improve the business level, prepare for upcoming challenges and plan for future business opportunities.

4. Marketing decision support system

In the marketing Decisions system, the marketing managers use various mathematical and economical software to analyze to make efficient marketing decisions.

They collected the raw data after analyzing and obtaining marketing information to support decision-making- activities.

The managers can save this vast data with the help of computers for an extended period and use it for future organization planning.

So, all the markets need to keep an eye on both the internal and external information with the help of all these marketing information system components.

This information helps the marketers to make positive decisions for company objectives.

Marketing information system process

Getting to know how the marketing information system proceeds are vital to get positive results. The sequential steps are given below; you can go with all these steps.

1. Establish a suitable marketing metric

2. Collect relevant data from internal and external sources

3. Plot data on graphs to visualize changing trades

4. Communicate the information to relevant departments

5. Decide best possible courses of action

First of all, you need to establish suitable marketing metrics. After that, you should collect the relevant data from the appropriate internal and external sources.

Then you can draw the graphs of raw data for relevant changes in upcoming trades. You can distribute this information to all your departments to make the changes from time to time in the marketing environment and decide the possible changes at the right time.

Types of marketing decisions

The concept of a marketing information system is all about taking the right decision at the right time according to the collected data by the marketing managers for the objectives of the company.

Here you will find three efficient types for making decisions with the help of a marketing information system.

1.  Strategic decision

These decisions are related to the objectives of the whole organization. These decisions are done by higher-level managers because these are all about using policies and services.

Ex. Decisions related to global marketing

2. Control Decision

These decisions are done by middle-level managers in case of any deviation in the marketing. It is done by the proper evaluation and monitoring of the strategic plans given by higher-level managers for vital implementation of the organization.

Ex. making a proper marketing strategy

3. Operational decisions

Operational decisions are those decisions that are taken by both the higher and middle-level managers for day by day activities of the company.

These activities include proper utilization of resources essential for adequate implementation of the strategic plans made for daily activities.

Ex. efforts of the sales team towards the successful application of the marketing strategy.

Importance of marketing information system

The marketing information system provides a simplified way to make strategic decisions for the marketing managers for business activities.

With this benefit, there are so many other benefits also of this system;

  • 1. This system fills the information gap by giving information on worldwide scenarios regards to global marketing.
  • 2. It Is facilitates decisions making to the operational decisions (daily activities), control decisions (work on strategic plan), and strategic decisions s(implementation of policies and services on marketing).
  • 3. The marketing information system help to do the marketing planning to ensure effective marketing operations.
  • 4. MIS is a computer-based system to it easy to find out information easily and keep it safe as a record for upcoming challenges. So this system saves our time and costs.
  • 5. In case of taking corrective actions for acquiring the desired outcomes marketing information system helps to evaluate and monitor the marketing programs and operations so that it is helpful for better evaluation and control.

Nowadays, everything has become modern, so that today the activities of business have become more accessible in the comparisons of last time. With the help of this system, you can quickly get the upcoming trades, policies, and services.

So that, by keep recording this data, you can plan your future strategy, and you can also make changes from time to time in your business activities to get the desired outcome.

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