6. Marketing Information System
• A marketing information system consists of a structured, interacting
complex of persons, machines, and procedures designed to generate
an orderly flow of pertinent information, collected from both internal
and external firm sources, for use as the basis for decision-making in
specified responsibility areas of marketing management.
• A marketing information system can be defined as a process in which
data from the market environment is collected systematically and
comprehensively, evaluated in terms of its relevancy and accuracy,
transformed to make it useful and usable by the managers, and
conveniently stored or expeditiously transmitted to the managers.
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9. Internal records :
• Marketing managers get lots of information from the internal-records of the company
• information about sales, costs, inventories, cash flows and account receivable and
payable.
• Inside records help marketing managers to gain faster access to reliable information.
Marketing intelligence :
• It collects information from external sources.
• provides information about current marketing-environment and changing conditions in
the market.
• information can be easily gathered from external sources like; magazines, trade journals,
commercial press, so on.
• The salesmen’s report also contains information about market trends.
10. Marketing research :
• MR is conducted to solve specific marketing problems of the company.
• data is tabulated, analyzed and conclusions are drawn.
• this information is specific information.
Marketing decision support :
• the tools which help the marketing managers to analyse data and to take
better marketing decisions.
• include hardware, i.e. computer and software programs.
• also helps them to take better decisions.
11. • The Internal Records System maintains data pertaining to orders, sales,
inventory levels receivables and payables. It should be able to fulfil the
needs of marketing executive, sales representatives, production managers
etc.
• The marketing intelligence system collects current information on
development the macro-environment and task environment its purpose is
to keep executive abreast of the changing environment so that they can
plan the marketing strategy to get optimum results.
• Marketing research takes studies on specific marketing problems reports
its finding to marketing management.
• The marketing information system is management science or operations
research. It is concerned with building models for better understanding
and the prediction and control of marketing processes.
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14. Marketing Information System - Key takeaways
• A marketing information system helps marketers improve their decision-
making by collecting, storing, analysing, and disseminating relevant data
about their marketing efforts.
• The components of a marketing information system include internal
reports, marketing data support systems, marketing intelligence, and
marketing research.
• Marketing information systems use a sequential process to aggregate data,
exchange discoveries, and ultimately impact decision-making.
• Marketing information systems refer to all data from facts, opinions,
viewpoints, rules, and regulations required to make essential marketing
choices.
15. • For instance, many retail establishments provide their customers with
loyalty cards, and many companies give consumers the ability to create
profiles in their online stores to track their purchases more easily.
• For instance, airline and hotel reservation services maintain tabs on all the
data described above to utilise it as a competitive advantage. They can
keep track of demand and adjust rates accordingly as it changes. During the
off-season, they can also provide loyalty discounts to their repeat
customers.
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16. • Suppose a company was to design a new type of electric vehicle (EV)
that would become a direct competitor to Tesla. In that case, the
company should have extensive information on all the current and
potential EV consumers. Neccessary market information would
include customer preferences, the value of the EVs, and what a new
entrant can offer to make customers want to buy the new EV.
•
17. • Most financial services organisations have two types of objective:
• Flexible goals, for example increasing (or decreasing) deposits of
certain kinds, increasing (or decreasing) loans of certain types,
directing customers to certain types of product or services
• Fixed objectives, for example profitability, a high return on
investment, achieving certain market shares and growth rates,
development of certain images achieving a spread of customer types
in order to minimise risks and business fluctuations, and so on.
19. • The financial services marketing function is one of five subsets of
management controllable variables.
• The financial institutions management system comprises four major
sets of variables: (1) organisational objectives, (2) external
environment (or non-controllable) variables, (3) controllable (or
management) variable sets, and (4) organisational and control
variables.
• The four sets (or facets) of variables are interrelated and operate
together as a system
20.
21. • Non-controllable variables are factors that cannot be effectively controlled
by the financial organisation's management, but they affect the attainment
of organisational objectives and the way the institution has to make use of
its various marketing tools and its organisation and control techniques.
• Non- controllable variables include foreign exchange regulation
(determined by the government or market forces), inflation, government
economic policy, competition from other financial institutions, legal
systems and regulations, political factors, and similar additional factors that
might influence a financial institution's management operations.
• The controllable set o f management variables are factors under the
control of individual financial institutions that can be used to influence the
organisation's business activity. These factors are also called management
tools and can be split into five activity areas.
22. The financial services marketing function focuses
its attention on the following activities:
• Customer behaviour, attitudes and segmentation.
• Marketing research that attempts to collect, investigate, analyse and
• interpret customers' attitudes and market developments, in each of the areas
mentioned here, in order to contribute to the maximum attainment of objectives
in the light of existing non-controllable factors, and in consonance with the other
four major functions.
• Product/service development and introduction.
• Branch management; location and distribution of financial services.
• Advertising, communication, promotions and publicity.
• Pricing of financial services.
• Defining marketing strategies, administering and controlling the marketing
programme.
