The Importance of Information This CTR relates to the material on p. 99 and provides a context for discussing marketing research and marketing information systems. Instructor’s Note: This information is extra-textual. The Importance of Information A marketing information system is valuable for the information tools it provides in relation to the following areas: The Marketing Environment . Companies compete in an environment of social, legal, cultural, technological, natural, and competitive forces. Information on each aspect of the environment is crucial to effective market planning. Discussion Note: You may wish to discuss the role of environmental monitoring or scanning in class. Information gathering can be serendipitous or it can be planned. While not all environmental information needs can be identified in advance, it is possible to approach research and information systems planning with an eye to setting up ways of collecting information in an on-going fashion. Customer Needs and Wants . If environmental forces cause the company to seek information in a larger context, customer needs and wants focus the attention on the target market. Without information, identifying need and wants is guesswork -- or fortune telling. Competitors . The actions of competitors cannot go unnoticed by the company. Innovative companies not only identify competitive actions and offerings, they also consume competitors products -- in small quantities of course! For example, to understand the value of a competitors automobile it makes sense to drive it for awhile as a customer would and evaluate it in that fashion. Strategic Decision Making . Strategy formulation depends upon accurate & timely information most of all.
Marketing information system
MARKETING INFORMATION SYSTEM
What is marketing information system ? Marketing information consists of people,equipment and procedures togather,sort,analyze,evaluate and distributeneeded, timely and accurate information tomarketing decision makers. Marketing decision makers use the datato identify and solve marketing relatedproblems.
Marketing Information system supplies three types of information.• Recurrent Information• Monitoring Information• Requested Information
•Recurrent Information This is the data that an MIS suppliesperiodically about the market share of aspecific product and customer’sawareness of company’s brands. The datamay be supplied on weekly, monthly oryearly basis.
• Monitoring Information This is the data obtained from the regularscanning of certain sources. Marketingmanagers may need data related tocompetition or the industry. It is essentialso that marketing managers can be alertand identify potential problems
• Requested Information This information is developed in responseto some specific request by the marketingmanager. Secondary data or primary datathrough survey research are collected inresponse to the specific request. The MISsupplies the requested information fordecision making.
Marketing Information systemExternal data Marketing Marketing Marketing Research Information Managers division system DivisionInternal dataRequestedinformation
Sources of Marketing Information . The MIS information inputs come from different sources, viz., both within and outside firms . Some of the commonly used internal sources of information are:Sales Analysis- The marketing information system retrieves sales information and put them in usable and disaggregated form. It detects various marketing strengths and weaknesses. Computer assisted sales analysis uncovers significant details for management needs.
Cost Analysis-The cost analysis is possible with the effective accounting system. The classification and analysis of the cost of production, cost of distribution and selling may provide adequate information for the management purposes .Financial Records- The financial records & publications may provide adequate opportunities for management of sales & marketing activities .Many companies prepare periodical final statement to observe the balance of each item of
Marketing Environment Why Information Competitio Is nCustomer Needs Needed Strategi Strategic Strategic Strategic Strategic c Planning Planning Planning Planning Plannin g
Importance of marketing information system• Anticipation Of Customer Demand- Every marketer needs up-to-date knowledge about consumer needs and wants.• Systematic Approach-Expanding markets and competitive marketing environment require adequate market intelligence system.• Economic indicator-Marketers must have latest information on the changing trends of supply, demand and prices
• Significance of Analysing Competition- Marketer cannot survive without having information regarding nature , character and size of competition to be met.• Development of Technology-Marketers must have latest information regarding technological development.• Understanding the Consumer-Information system can establish proper two way flow of information and understanding between marketers and consumer.• Marketing Planning-Marketing plans and programmes are based upon information supplied by economic forecasts and market research.
Conclusion Marketing information system is animportant factor in a growing businesstoday with increased competition andenvironmental changes affecting theconsumer world . It is the marketinginformation system that makes orunmakes any organization in theperspective of marketing strategy.Marketing information system very aptlycalled as life blood of marketing.