Marketing informatino sysytem is tbe best

1. Marketing
Information System
OSHADI RUPASINGHE
BBA (SEUSL), PGDIP (SLIM)

2. Learning Outcomes:
 Define Marketing Information Systems
(MIS)
 Identify components of a modern Marketing
Information System
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3. Marketing Information System
 A marketing information system (MKIS) consists
of people, equipment and procedures to gather,
sort, analysis, evaluate, and distribute needed,
timely and accurate information to marketing
decision makers
 Kotler & Armstrong
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4. Marketing Information System
 A marketing information system is a set of
procedures and methods for the regular, planned
collection, analysis and presentation of
information for use in marketing decisions.
 American Marketing Association
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7. Why MKIS
 Competitive advantage
 Execute better marketing plan
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8. Importance of Marketing
Information System
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 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 Analyzing 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 programs are based upon information
supplied by economic forecasts and market research.

9. Components of MKIS
 Internal record system
 Marketing intelligence
 Decision support system
 Marketing research
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11. Components of MKIS
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12. Internal Record System
 Internal databases are electronic collections of
information obtained from data sources within the
company.
 Kotler & Armstrong
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13. Internal Record System
 Marketing managers rely on data from internal
reports about orders, sales, prices, costs, inventory
levels, receivables, payables and so on.
 The heart of the internal record system is the
order-to-payment cycle.
 Sales representatives, dealers, and customers
dispatch orders to the firm.
 The sales department prepares invoices and
transmits copies to various departments, Out-of-
stock items are back ordered.
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14. Internal Record System
 Shipped items are accompanied by shipping and
billing documents that are sent to various
departments
 Companies need to perform these steps quickly
and accurately, because customers favor firms that
can promise timely delivery.
 Today many companies organize information in
databases- customer databases, product databases,
salesperson databases and so forth- and then
combine data from the different databases.
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15. Internal Record System
 The customer database will contain every
customer’s name, address, past transactions, and
even demographics and psychographics (activities,
interests and opinions) in some instances.
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16. Marketing Intelligence System
 A marketing intelligence system is a set of
procedures and sources managers use to obtain
everyday information about developments in the
marketing environment.
 Kotler & Armstrong
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17. Sources of Marketing Intelligence
 Marketing Managers
 Sales Forces
 Middlemen
 Specialists
 Outsourcing
 Marketing information section
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18. Marketing Decision Support
System
 Marketing decision support system (MDSS) is a
coordinated collection of data, systems, tools, and
techniques with supporting software and hardware
by which and organization gathers and interprets
information from business and the environment
and turns it into a basis for marketing action.
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19. Marketing Decision Support
System
 A decision support system is a procedure that
allows a manager to interact with data and
methods of analysis to gather, analyze, and
interpret information.”
--- Stanton
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20. Components of MDSS
 Data Bank- A data bank is a store of data that
stores different kinds of data and information
received form different sources.
 Methods Bank –It is a statistical tools bank
 Model Bank- It consists of different
programs/models and optimization routines
developed by the organization.
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21. Marketing Research
 Marketing research as the systematic design,
collection, analysis and reporting of data and
findings that are relevant to a specific marketing
situation facing the company.
 Most large companies have their own marketing
research departments.
 Some small companies can hire the services of a
marketing research firm or conduct research in
creative and affordable ways.
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22. Features of Marketing Research
 Systematic
 Problem oriented
 Objective
 Decision making
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23. Areas of Marketing Research
 Product research
 Advertising research
 Consumer research
 Sales research
 Corporate research
 Competitor research
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24. Steps in the Marketing Research
Process

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Step 1: Defining the problem and
research objectives
 The manager and the researcher must work
together.
 These objectives guide the entire process.
 Exploratory, descriptive, and causal
research each fulfill different objectives.

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Step 1: Defining the Problem & Research
Objectives
Exploratory
Research
Descriptive
Research
Causal
Research
•Test cause- and-effect
relationships.
•Tests hypotheses about cause-
and-effect relationships.
•Sheds light on problem - suggest
solutions or new ideas.
•Gathers preliminary information
that will help define the problem
and suggest hypotheses
•Ascertain magnitudes
•Describes things as market
potential for a product or the
demographics and consumers’
attitudes.

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Step 2: Developing the Research
Plan
 Research plan is a written document which
outlines the type of problem, objectives, data
needed, and the usefulness of the results.
Includes:
 Secondary data: Information collected for another
purpose which already exists
 Primary data: Information collected for the
specific purpose at hand

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Secondary Data
 Secondary data sources:
 Government information
 Internal, commercial, and online databases
 Publications
 Advantages:
 Obtained quickly
 Less expensive than primary data
 Disadvantages:
 Information may not exist or may not be usable

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Data that were
collected for another
purpose, and already
exist somewhere
(+)Obtained more quikcly
/ at lower cost
(-)Might not be
usable data.
Developing the Research Plan:
Data Sources
both must be:
Relevant
Accurate
Current
Impartial
Data gathered for
a specific purpose
or for a specific
research project

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Evaluate the Following
when Judging Data Quality
 Relevance
 Accuracy
 Currency
 Impartiality

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Primary Data
 Primary research decisions:
 Research approaches
 Contact methods
 Sampling plan
 Research instruments

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Primary Data
 Observation research
using people or machines
 Discovers behavior but
not motivations
 Survey research
 Effective for descriptive
information
 Experimental research
 investigates cause and
effect relationships
 Research Approach
 Contact Method
 Sampling Plan
 Research Instrument
Decisions

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Research Approaches
Survey
Asking individuals about attitudes,
preferences or buying behaviors
(Descriptive)
Experimental
Using groups of people to determine
cause-and-effect relationships
(Causal)
Observational
Gathering data by observing people, actions
and situations (Exploratory)

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Primary Data
Key Contact Methods
include:
 Mail surveys
 Telephone surveys
 Personal interviewing:
 Individual or focus group
 Online research
 Research Approach
 Contact Method
 Sampling Plan
 Research Instrument
Decisions

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Strengths and Weaknesses of Contact
Methods Relate to:
 Flexibility
 Sample control
 Data quantity
 Cost
 Interviewer effects
 Speed of data
collection
 Response rate

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Primary Data
 Sample: subgroup of
population from whom
information will be collected
 Sampling Plan Decisions:
 Sampling unit
 Sample size
 Sampling procedure:
 Probability samples
 Non-probability samples
 Research Approach
 Contact Method
 Sampling Plan
 Research Instrument
Decisions

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Sampling Plan
 Probability Sampling
 Simple random sample every member of the population has
an equal chance of selection
 Stratified random sample the population is divided into
groups, random samples are drawn from each group
 Cluster (area) sample e.g. groups such as blocks
 Nonprobability Sampling
 Convenience sample The most accessible population
members are selected to obtain information
 Judgement sample The researcher uses judgement to select
population members who are good prospects for accurate
information
 Quota sample finds and interviews a prescribed number of
people in each of several categories

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Primary Data
 Questionnaires
 Include open-ended
and closed-ended
questions
 Phrasing and question
order are key
 Mechanical instruments
 Nielsen’s people meters
 Checkout scanners
 Eye cameras
 Research Approach
 Contact Method
 Sampling Plan
 Research
Instrument
Decisions

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Step 3: Implementing the Research
Plan
 Data is collected by the company or an
outside firm
 The data is then processed and checked for
accuracy and completeness and coded for
analysis
 Finally the data is analyzed by a variety of
statistical methods

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Step 4: Interpreting and Reporting
the Findings
 The research interprets the finding, draws
conclusions and reports to management
 Managers and researchers must work
together to interpret results for useful decision
making

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Analyzing Marketing Information
 Statistical analysis and analytical models are often
used
 Customer relationship management (CRM) software
helps manage information by integrating customer
data from all sources within a company.
 CRM software offers many benefits and can help a
firm gain a competitive advantage when used as part
of total CRM strategy.

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Distributing and Using Marketing
Information
Information Must be Distributed
to the Right Managers at the Right Time.
Distributes Nonroutine
Information for Special
Situations
Distributes Routine
Information for
Decision Making
Intranets&extranets

43. Conclusion
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• Marketing information system is an important factor in a
growing business today with increased competition and
environmental changes affecting the consumer world.
• It is the marketing information system that makes or
unmakes any organization in the perspective of marketing
strategy.
• Marketing information system called as life blood of
marketing.