1.2 MKIS and MDSS.pptx

0. LESSON
OBJECTIVES
By the end of this lesson, you should be able
to:
 Explain what a Marketing Information System
(MkIS) is.
 State the uses of the information provided by an
MkIS.
 List the characteristics of an MkIS.
 Discuss the 4 components of MkIS.
 Explain what a Marketing Decision Support System
(MDSS) is.
 List the functional areas of an MDSS.
 Discuss the 2 components of MDSS.
 Differentiate between MkIS and MDSS.
©KGOSI@LCIBS.BW (2021) 2

1. MARKETING INFORMATION SYSTEM (MKIS)
 Marketing Information System (MkIS) collects, analyses, and supplies a lot of relevant
information to the marketing managers.
 The abbreviation MkIS is used to differentiate it from MIS (Management Information
System).
 It is a valuable tool for planning, implementing and controlling the marketing
activities.
 The role of MkIS is to identify (find out) what sort of information is required by the
marketing managers.
 It then collects and analyzes the information. It supplies this information to the
marketing manager at the right time.

Marketing Information System (MkIS)
 The business function of marketing is concerned with the planning, promotion, and sale of
existing products in existing markets, and the development of new products and new markets
to better serve present and potential customers.
 Marketing information includes all facts, estimates, opinions, guidelines, policies and other
data which is necessary for taking marketing decisions.
 This information may be collected from both internal and external sources: from customers,
competitors, company salesmen, government sources, specialized agencies, so on.
 This information is analyzed. Then, it is supplied to the marketing managers. The marketing
managers use this information for taking marketing decisions.

Marketing Information System (MkIS)
 MkIS also evaluates and stores the information. MkIS uses modern technology
for collecting, analyzing, storing and supplying information.
 Marketing information systems integrate the information flow required by
many marketing activities.
 It consists of people, equipment, and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and accurate information to
marketing decision makers.
 MkIS is a permanent and continuous process.

1.1 MkIS Provide Information For…
 Internet/intranet web sites and services make an interactive marketing process
possible where customers can become partners in creating, marketing,
purchasing, and improving products and services.
 Sales force automation systems use mobile computing and Internet
technologies to automate many information processing activities for sales
support and management.
 Other marketing systems assist marketing managers in product planning,
pricing, and other product management decision, advertising and sales
promotion strategies, and market research and forecasting.

MkIS Provide Information For…
 Planning, control, and transaction processing in the marketing
function.
 Control Reporting Systems support the efforts of marketing
managers to control the efficiency and effectiveness of the selling
and distribution of products and services.
 Analytical reports provide information on a firm’s actual
performance versus planned marketing objectives.

1.2 Characteristics / Features Of MkIS
 Continuous system: MkIS is a permanent and continuous system of collecting information. It
collects information continuously.
 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.
 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.
 Future-oriented: MkIS is future-oriented. It provides information for solving future
problems. It is not past-oriented.

Characteristics / Features Of MkIS
 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.
 Sources: MkIS collects information from both, internal and external sources. For example, information is
collected from company records, publications, etc.
 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.
 Helps in decision making: MkIS supplies up-to-date and accurate information. It helps marketing
managers to take quick and right decisions.

1.3 Components of MkIS
The four main components of Marketing Information System (MIS) are:
 Internal Records (Database)
 Marketing Intelligence System
 Marketing Research System, and
 Marketing Decision Support System.

1.3.1 Internal Record
 The first component of MIS is Internal Record/Database.
 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.

1.3.2 Marketing Intelligence
 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, so on.
 This information cannot be collected from the annual reports of the Trade
Association and Chambers of Commerce, annual reports of companies, etc.
 The salesmen’s report also contains information about market trends.

1.3.3 Marketing Research
 Marketing Research 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.

1.3.4 Marketing Decision Support System
 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.

2. MARKETING DECISION SUPPORT SYSTEMS (MDSS)
 MDSS is strictly speaking, a part of an MkIS
 Previously known as Analytical Marketing System.
 Used to improve efficiency and utility of the whole marketing information
system.
 The system is used to help managers make better decisions.
 John D. C. Little defines it as:
“A coordinated collection of data, systems, tools, and techniques with
supporting software and hardware by which an organisation gathers and
interprets relevant information from environment and turns it into a basis for
making decisions.”

2.1 Functional Areas
MDSS are mainly used for:
 Data collection
 Data analysis
 Interpreting results
 Supporting managerial decision-making

2.2 Components of an MDSS
MDSS consists of two sub-components:
 The statistical bank
 The model bank.

2.2.1 Statistical Bank
 It is popularly known as Operations Research (OR).
 It consists of quantitative tools used in marketing decision-making.
 The statistical tools used for data analysis include:
1. Simple statistical techniques like averages, mode, medium, etc.
2. Regression-multiple regression analysis
3. Discriminant analysis

Statistical Bank
4. Correlation analysis
5. Factor analysis
6. Cluster analysis
7. Input-output analysis
8. Conjoint analysis
9. Multidimensional scaling, etc.

2.2.2 The Model Bank
 This component includes decision support models.
 It is a collection of models and software that can help managers develop better marketing
decisions.
 The model is a series of variables, their interrelationships, and programs to represent some
real systems.
 The models are developed by scientists who are known as operation researchers.
 Widely used models include:
1. The Markov-Process Analysis
2. Queuing Model
3. New Product Pretest Models
4. Sales Response Model

The Model Bank
5. Discrete Choice Model
6. Differential Calculus
7. Mathematical Programming
8. Statistical Decision Theory
9. Game theory
10. Heuristics
11. Decision Tree Model
12. Feedback System Model
13. Linear v/s Non-linear Model

REVISION QUESTIONS
1. Explain what a Marketing Information System (MkIS) is.
2. State the uses of the information provided by an MkIS.
3. List the characteristics of an MkIS.
4. Discuss the 4 components of MkIS.
5. Explain what a Marketing Decision Support System (MDSS) is.
6. List the functional areas of an MDSS.
7. Discuss the 2 components of MDSS.
8. Differentiate between MkIS and MDSS.

OTHER SOURCES
 https://medium.com/@geeksagar/marketing-information-system-mkis-definition-components-and-
applications-f4d9eafef956
 https://www.yourarticlelibrary.com/marketing/mis-marketing-information-system-with-diagram/48703

1.2 MKIS and MDSS.pptx

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