Marketing Information System
Cooperative Management Information System and Internal Control
Antiga, Monique Chelsea
De Vera, Angerica
Flores, Eisha Mitri
Ruiz, Sarah Lourene
Silvano, Chris Lois
Prof. Ireneo C. Delas Armas, Jr.
Semester, SY 2013-2014
Not to be confused for a management information system, marketing information
systems are designed specifically for managing the marketing aspects of the business. A
formal MkIS can be of great benefit to any organization whether profit making or non-
profit making, no matter what its size or the level of managerial finesse. It is true today that
in many organization an MkIS is integrated as part of a computerized system.
A marketing information system (MkIS) is intended to bring together disparate
items of data into a coherent body of information. An MkIS is, as will shortly be seen, more
than raw data or information suitable for the purposes of decision making. An MIS also
provides methods for interpreting the information the MkIS provides.
"A marketing information system is a continuing and interacting structure of people,
equipment and procedures to gather, sort, analyse, evaluate, and distribute pertinent,
timely and accurate information for use by marketing decision makers to improve their
marketing planning, implementation, and control".
Jobber (2007) defines it as a "system in which marketing data is formally gathered,
stored, analysed and distributed to managers in accordance with their informational needs
on a regular basis."
Kotler, et al. (2006) defined it more broadly as "people, equipment, and procedures
to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to
marketing decision makers."
FEATURES OF MARKETING INFORMATION SYSTEM (MkIS)
1. Continuous system : MkIS is a permanent and continuous system of collecting
information. It collects information continuously.
2. Basic objective : The basic objective of MkIS is to provide the right-information at the
right-time to the right-people to help them take right decisions.
3. Computer based system : MkIS is a computer-based system. It uses computers for
storing, analyzing and supplying information. It also uses micro-films for storing
information. Therefore, it is very quick and accurate.
4. Future-oriented : MkIS is future-oriented. It provides information for solving future
problems. It is not past-oriented.
5. Used by all levels : MkIS is used by all three levels of management, i.e. top, middle and
lower. It is used for making marketing plans, policies and strategies. This is used to
solve marketing problems and to take advantage of business opportunities.
6. Sources : MkIS collects information from both, internal and external sources. For
example, information is collected from company records, publications, etc.
7. Collects marketing information : MkIS collects all types of marketing information. It
collects information about the consumer competition, marketing environment,
government policies, etc. It supplies this information to the marketing managers.
8. Helps in decision making : MkIS supplies up-to-date and accurate information. It
helps marketing managers to take quick and right decisions.
ROLE OF MARKETING INFORMATION SYSTEM IN DECISION-MAKING
The existence of an adequate information system which would secure data
acquisition and analyses, as well as the transformation of above mentioned data into useful
information is an essential condition for a company to function effectively. Successful
companies should be flexible enough to adapt to the changes brought by intensive
alternations in business environment. The design of marketing information system has
been initiated for this particular purpose. The main task of this application is to improve
the efficiency of a company’s operations through the implementation of the research
process. Marketing information system is the fundamental precondition for the successful
realization of the research project, i.e. the means used by producers in order to collect
information about the, needs of the consumers. Marketing information system represents
efforts of the companies to provide pertinent decision-making information to marketing
managers on regular basis.
COMPONENTS OF MARKETING INFORMATION SYSTEM (MkIS)
The explanation of this model of an MkIS begins with a description of each of its four
main constituent parts: the internal reporting systems, marketing research system,
marketing intelligence system and marketing models. It is suggested that whilst the MkIS
varies in its degree of sophistication - with many in the industrialised countries being
computerised and few in the developing countries being so - a fully fledged MkIS should
have these components, the methods (and technologies) of collection, storing, retrieving
and processing data notwithstanding. The expected outputs of MkIS are Marketing
Research, Product Development, Promotion and Advertising, and Product Pricing.
A. Internal Reporting Systems
Firstly, with any business it is greatly important to keep an eye on what is going
on inside the business. A lot can be missed if the performance is not closely monitored
and then analyzed. The internal reporting systems enable a company to always
be aware of how they are performing as a team and what issues may need addressing.
Marketing managers get lots of information from the internal-records of the
company. These records provide current information about sales, costs, inventories,
cash flows and account receivable and payable. Many companies maintain their
computerized internal records. Inside records help marketing managers to gain faster
access to reliable information.
The internal records that are of immediate value to marketing decisions are:
orders received, stockholdings and sales invoices. These are but a few of the internal
records that can be used by marketing managers, but even this small set of records is
capable of generating a great deal of information.
These are information gathered from sources within the company to evaluate
marketing performances and to detect marketing problems and opportunities. Most
marketing managers use internal records and reports regularly, especially for making
day-to-day planning, implementation and control decisions. Internal records
information consists of information gathered from sources within the company to
evaluate marketing performance and to detect marketing problems and opportunities.
B. Marketing Intelligence Systems
The marketing intelligence systems are used to deal with the costs of running a
marketing department and a business as a whole. It will process all the facts and figures
delivering what needs to be spent where and what may be using too much money.
It collects information from external sources. It provides information about
current marketing-environment and changing conditions in the market. This
information can be easily gathered from external sources like magazines, trade journals,
commercial press, trade press, census, so on. This information cannot be collected from
the Annual Reports of the Trade Association and Chambers of Commerce, Annual
Report of Companies, etc. The salesmen’s report also contains information about
market trends. It can also gather information from Sales Force, Dealers and
Distributors, and suppliers.
The company can also learn about competitors from what others say about them
in business publications and at trade shows. Or the company can watch what
competitors do - buying and analyzing competitors' products, monitoring their sales
and checking for new patents. Companies also buy intelligence information from
outside suppliers. This is a largely informal process of observing and conversing
The information which is collected from the external sources cannot be used
directly. It must be first evaluated and arranged in a proper order. It can be then used
by the marketing manager for taking decisions and making policies about marketing.
C. Marketing Research Systems
The marketing research systems allow a company to really find out what their
customers/potential customers think of the current trends and their views on certain
items, or polices.
Marketing research can also delve into a customer's habits in the hope the
company can spot a gap in the market or service; they believe they can deliver to the
customer, which will benefit their usual routine.
Marketing Research can gather quantitative information from survey research,
telephone, mail, personal observation and experiments; and qualitative information
from projective tests and focus groups.
MR is conducted to solve specific marketing problems of the company. It collects
data about the problem. This data is tabulated, analyzed and conclusions are drawn.
Then the recommendations are given for solving the problem. Marketing research also
provides information to the marketing managers. However, this information is specific
information. It can be used only for a particular purpose. MkIS and MR are not
substitutes of each other. The scope of MkIS is very wide. It includes ‘MR’. However, the
scope of MR is very narrow.
Marketing research is a proactive search for information. That is, the enterprise
which commissions these studies does so to solve a perceived marketing problem. In
many cases, data is collected in a purposeful way to address a well-defined problem (or
a problem which can be defined and solved within the course of the study). The other
form of marketing research centers not on a specific marketing problem but is an
attempt to continuously monitor the marketing environment. These monitoring or
tracking exercises are continuous marketing research studies, often involving panels of
farmers, consumers or distributors from which the same data is collected at regular
intervals. Whilst the ad hoc study and continuous marketing research differs in the
orientation, yet they are both proactive.
D. Marketing Models
The marketing model will act as a concept or theory and a lot of campaigns will
be built with this guidance in mind. These are the tools which help the marketing
managers to analyze data and to take better marketing decisions. They include
hardware, i.e. computer and software programs. Computer helps the marketing
manager to analyze the marketing information. It also helps them to take better
decisions. In fact, today marketing managers cannot work without computers. There
are many software programs, which help the marketing manager to do market
segmentation, price fixing, advertising budgets, etc.
Within the MkIS there has to be the means of interpreting information in order
to give direction to decision. These models may be computerised or may not. Typical
Time series sales models
Brand switching models
Elasticity models (price, incomes, demand, supply, etc.)
Regression and correlation models
Analysis of Variance (ANOVA) models
Discounted cash flow
Spreadsheet 'what if models
These and similar mathematical, statistical, econometric and financial models
are the analytical subsystem of the MkIS. A relatively modest investment in a desktop
computer is enough to allow an enterprise to automate the analysis of its data. Some of
the models used are stochastic, i.e. those containing a probabilistic element whereas
others are deterministic models where chance plays no part. Brand switching models
are stochastic since these express brand choices in probabilities whereas linear
programming is deterministic in that the relationships between variables are expressed
in exact mathematical terms.
Three levels of decision making can be distinguished from one another. Again, MkIS
has to support each level.
1. Strategic decisions are characteristically one-off situations. This level of decision
making is concerned with deciding on the objectives, resources and policies of the
organisation. Strategic decisions have implications for changing the structure of an
organisation and therefore the MkIS must provide information which is precise and
accurate. This process generally involves a small group of high-level managers who
deal with very complex, non-routine problems.
2. Control decisions deal with broad policy issues. Such decisions are concerned with
how efficiently and effectively resources are utilised and how well operational units
are performing. Management control involves close interaction with those who are
carrying out the tasks of the organisation; it takes place within the context of broad
policies and objectives set out by strategic planners.
3. Operational decisions concern the management of the organisation's marketing
mix. These involve making decisions about carrying out the "specific tasks set forth
by strategic planners and management. Determining which units or individuals in
the organisation will carry out the task, establishing criteria of completion and
resource utilisation, evaluating outputs - all of these tasks involve decisions about
DISTINGUISH BETWEEN MkIS AND MARKETING RESEARCH (MR)
a. MkIS means to collect, analyze and supply relevant marketing information to the
marketing managers. The marketing managers use this information for taking
effective marketing decisions. It is a permanent and continuous process.
b. Marketing Research (MR) is a systematic process of collecting and analyzing
information to solve a specific marketing problem.
a. The main purpose of MkIS is to provide relevant information to marketing
managers and enable them to make effective marketing decisions.
b. However, the main purpose of Marketing Research (MR) is to solve a specific
a. The scope of MkIS is wide. Marketing Research (MR) is one of its component. It is
not only used to solve problems but also helps to prevent problems in the future.
b. The scope of Marketing Research (MR) is narrow. It is one small part of MkIS. It
solves a specific present marketing problem.
a. MkIS is more nonspecific or general in nature. It can solve many types of
b. Marketing Research (MR) is more specific or particular in nature. At one time, it
can only solve a single type of marketing problem.
a. MkIS gives four types of reports namely, plan-reports, periodic-reports, triggered-
reports and demand reports.
b. Marketing Research (MR) provides only one report called as ‘MR Report.’
a. Orientation of MkIS is more future-oriented when compared to MR.
b. However, the orientation of Marketing Research (MR) is more past and present
one when compared to MIS. It concentrates more on earlier and latest information.
It uses this information to solve a current marketing problem.
a. MkIS deals with and attempts to solve many different marketing problems at one
time. For this, it collects, stores, analyze and supply relevant market information
to the marketing managers.
b. Marketing Research (MR) only deals with a single marketing problem at one time.
It doesn't solve multiple marketing problems simultaneously.
a. In MkIS, the data is collected more frequently, usually almost daily. This is a must
for every company.
b. In Marketing Research (MR), the data is not collected as frequently as MkIS. It is
collected on a required basis.
a. MkIS is a permanent and continuous system. Here, the inflow of market
information never stops. Data is constantly collected and stored for further
analysis. It is properly analyzed, studied and well-organized before supplying to
the marketing managers. MkIS has a starting but no ending point.
b. Marketing Research (MR) is not a continuous system. Here, data is collected only
when a company faces a specific marketing problem. It has a starting and ending
a. MkIS is heavily based on the use of computers. Here, computing technologies are
widely used to ease and facilitate data collection, its storage, analysis, retrieval and
supply of relevant information to marketing managers of the company.
b. Unlike MkIS, Marketing Research (MR) hardly makes use of computers. It uses
computers only for analyzing some information and is not entirely based on
IMPORTANCE OF MARKETING INFORMATION SYSTEM
Marketing information includes all the data, in terms of facts, opinions, views,
guidelines and policies, which are necessary to make vital marketing decisions. The data is
collected from customers, competitors, company sales force and other staff, government
sources, specialized agencies and sources.
MkIS provides relevant, reliable and required information in respect of business
environment-both internal and external environments. Such information is vital for
successful decision making.
ADVANTAGES OF MKIS
1. Market Monitoring: MkIS helps managers to recognize marketing trends. The changing
trends may be in respect of prices, product design, packaging, promotion schemes, etc.
managers can take effective decisions in respect of prices, product designs, etc., in
response to changing trends in the environment.
2. Strategy Development: The MkIS provides the information necessary to develop
marketing strategy. It supports strategy development for new products, product
positioning, marketing communications (advertising, public relations, and sales
promotion), pricing, personal selling, distribution, customer service and partnerships
and alliances. The MkIS provides the foundation for the development information
system-dependent e-commerce strategies.
3. Facilitates Marketing Planning and Control: Effective market planning is required in
terms of product planning, pricing, promotion and distribution. Such planning will be
possible only f the company is possessing adequate and relevant information.
4. Quick supply of information: A firm has to take quick decision for this purpose; it
requires fast flow of information which is facilitated by a properly designed MkIS. Due
to timely supply of marketing information, the marketing managers can make quick and
5. Quality of decision-making: In every aspect of marketing, there is need to make
constant and correct decisions. A properly designed marketing information system
promptly supplies reliable and relevant information. With the help of computers and
other data processing equipments, the marketing managers can make the right
decisions at the right time.
6. Tapping of business opportunities: There are number of business opportunities which
have remained untapped for various reasons are due to unavailability of sufficient
information. MkIS makes it possible to tap business opportunities as it can supply
required and reliable data.
7. Provides Marketing Intelligence: Marketing intelligence refers to information of the
events that are happening in the external environment, i.e., changes in customer tastes,
expectations, competitors’ strategies, government policies, international environment,
etc. with the help of MkIS specialists, it is possible to collect marketing intelligence
which is vital to make effective marketing decisions.
8. Help managers to recognize change: A business firm may be handling or marketing a
wrong line of products. As such the company will not be able to make profits. And if it is
does, profits may not be adequate. A firm which is well equipped with MkIS will be able
to realize the need to change the line of business.
9. Integration of Information and Functional Integration: Firms, which are largely
decentralized can gather information which is scattered at many centers or
departments and integrate it for effective decision making. It also enables the
coordination of activities within the marketing department and between marketing and
other organizational functions such as engineering, production, product management,
finance, manufacturing, logistics, and customer service.Such integration is possible if
there is a centralized MkIS.
10. Strategy Implementation: The MkIS provides support for product launches, enables
the coordination of marketing strategies, and is an integral part of sales force
automation (SFA), customer relationship management (CRM), and customer service
systems implementations. The MkIS enables decisionmakers to more effectively
manage the sales force as well as customer relationships.
11. Builds relationships within the organization: An MkIS brings together many different
kinds of data, people, equipment, and procedures to help an organization make better
12. Convenient Storage: MkIS can organize data collection and store these imporatant data
for over several time periods.
ESSENTIAL REQUISITES OF A GOOD MkIS
1. Unified and centralized: MkIS must be unified and centralized. It collects and stores
different types of market information. All of this information must be unified and
centralized. That is, all the marketing information must be brought together (unified)
and kept at one central place (centralized). So, it must be at the central-office. This will
result in easy access and quick reference. The managers will be able to find all the
required information at one place.
2. Facilitate decision making: MkIS must facilitate decision making. That is, it must guide
the marketing managers in decision making. It must provide required information to
the managers to help in taking decisions. This information must be of a good quality.
That is, it must be relevant, reliable, and up-to-date. This will result in an accurate
decision-making process. So, it must not only be a data bank. It must play a positive role
in the decision-making process.
3. Quick and accurate information: MkIS must provide quick and accurate information.
Today, managers have to take quick-decisions because the marketing is moving very
fast. If they don't take quickest decisions, then they will lose many marketing
opportunities. Therefore, it must provide quick information to the managers. This
information must also be accurate, regular and continuous. It must be a user-oriented
one. It must collect, classify, verify, store and supply information quickly and accurately.
4. Economical: MkIS must be economical. That is, it must not be very costly. The
expenditure on it must be minimum. It must not exceed its value. It must give maximum
benefits to the company at a minimum cost. It will be economical only if it is selective. It
must be particular in collecting, analyzing, storing and supplying information. It must
use a minimum number of employees in its operation. It must be economical because it
is not directly productive. It is a service and support function.
5. Selective: MkIS must be selective. That is, it must not collect all the market information.
It must only collect relevant information. It must collect information, which is very
essential and useful for decision making. If it is not selective there will be a waste of
time, energy, storage space and money.
6. Future-oriented: MkIS must be forward looking i.e. future-oriented. It must not be a
past-oriented one. It must give more importance to future-oriented information. It must
provide information for solving problems, which may come up in the future. The
company will be successful if their marketing managers are future-oriented. The
marketing managers can be so only if the MkIS is also future oriented.
7. Supply information regularly: MkIS must supply information regularly.
The business environment is changing constantly. So, the marketing managers have to
take marketing decisions continuously. Therefore, they require a regular and
continuous flow of market information. This information must be provided by MkIS. So,
it must supply information regularly to the marketing managers.
8. Use new techniques: MkIS must use new techniques for collecting, analyzing, storing
and supplying information. It must use computers and micro-films. It must use new
communication techniques. It must also make the use of the Internet and latest
software programs. These newer techniques will increase the efficiency and accuracy of
MkIS. MkIS will also become more economical by using new techniques.
EXAMPLE OF MkIS
Agricultural MkIS in Asia and Pacific Region
Different countries have developed different systems, with variations only partly
related to the amount of money invested in the system. They are also related to planning
priorities, and the type of commodity produced.
Most countries in Asia operate a marketing information service with the express
aim of promoting efficient marketing and raising farm incomes. The form it takes varies
according to the level of economic development, and especially the extent to which
agriculture has changed from subsistence to commercial farming.
In Indonesia, Japan, Korea, Malaysia, Philippines, Taiwan ROC, and Thailand,
agricultural marketing information is a national government service which receives regular
government funding. It is usually run by the Ministry of Agriculture or its equivalent,
sometimes by several Ministries (for example in Thailand, marketing information it is
jointly operated by the Ministry of Agriculture and Cooperatives and the Ministry of
Commerce). There are often additional independent services for particular interest groups.
For example, Japan has an information service operated by ZEN-NOH, the national farmers'
cooperative organization. Malaysia, a major agricultural exporter, is the only one of the
seven not to have a single government service covering all major crops. Instead, each major
export crop has its own price information service, run by the special government agency
that is also responsible for extension and technical research for that crop. Information
about vegetables and other domestic food items in Malaysia is the work of FAMA, the
Federal Agricultural Marketing Authority.