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What is a Marketing Information System?
The term "Marketing Information System" (MkIS) refers to the ongoing gathering, interpretation, analysis, and archiving of market data as well as widely disseminated market data from both internal and external sources.
Importance of Marketing Information System (MkIS)
The primary advantage of MkIS systems is the integration of economic systems with strategy creation and the tactical application of policies and procedures that aid in the gathering and use of customer service information. This field of marketing intelligence consists of real-time information and real-time applications that enable market-based approaches while supporting analysis and market-based activities that assist client relationships and customer care.
The Characteristics of MkIS
It manages both inside and outside data.
It is focused on both problem prevention and problem solving.
As a system, it runs continuously.
It is frequently future-focused.
It has more subsystems in addition to marketing research.
According to Philip Kotler, there are Four Main Components of MkIS
The internal reporting platform, the Markets Intelligence System, the Marketing Research System, and the Marketing Decision Support Systems are the four parts of the MkIS system, according to marketing guru Philip Kotler.
Whistleblowing System − This system is regarded as a central source of information and gathers data from numerous corporate departments.
Marketing Intelligence System − This useful tool enables managers to regularly gather data about the external environment and react to quick changes in the environment.
System for doing Market Research − This system is used to gather both primary and secondary data and to deliver the findings in the form of reports.
Marketing Decision Support System − This system focuses on data processing rather than data feeding like his other three systems do.
Advantages, Possible Risks, and Limitations of MkIS
According to Bhasin, "An organization needs a significant amount of information every day in a more competitive and growing industry." They must therefore set up a MkIS. The use of MkIS has a number of benefits.
Organized Data Collection − MkIS can assist managers in organizing a lot of data that has been gathered from the market, which increases productivity.
A Broad View − an effective MkIS enables tracking of the organization, which can be utilized to examine independent activities. This aids in gaining a wider perspective, which enables us to determine the actions that may be taken to support improvement.
Storage of Vital Data − The necessity of storing important data for execution serves as another piece of evidence that MkIS is crucial not only for data but also for implementation.
Avoiding Crises − Looking at a stock's (or market's) historical performance is the best approach to evaluating it. MkIS helps popular websites like moneycontrol.com succeed. similar to how MIS aids in margin and profit tracking. With a fantastic information system in place, a company's course may be examined, and potential crises could be avoided head-on.
Coordinating − Coordination is necessary since consumer durable and FMCG companies have a large number of procedures. These businesses rely entirely on MIS to manage business effectively.
Analyzing and Planning − MkIS is essential to the analysis and planning phases of the planning process since information is needed for the planning process. Organizational capabilities are the first thing that is required for planning, followed by the market environment and competitive analysis. All of them are provided by nature and are constantly updated in a good MI. MkIS is therefore crucial for analysis and planning.
Controlling − Just as MkIS can be helpful in a crisis, it also offers control in regular times, as you have knowledge of the many processes taking place and what is occurring throughout the firm.
"However, given the external market's rapid change, the acquisition of market data should follow an increased approach." The hazards that the company can encounter if they deviate from Bhasin's recommendations are
Opportunities could be lost.
It's possible that rivals' behavior and environmental changes go unnoticed.
It could be challenging to interpret data collected over a number of time periods
Plans and decisions for marketing may not have been thoroughly assessed.
Data gathering could be fragmented.
It's possible that old studies aren't kept in an accessible format.
If further study is needed, there can be delays.
If further study is needed, there can be delays.
One of the main obstacles to marketing data systems is maintenance, complexity, and setting up a MkIS. Additionally, MkIS can become burdensome when incorrect information is fed into it; thus, suitable filters must be developed.
Limitations of MkIS
"Both primary and supplementary researches provide plenty of the information and details required for marketers; however, secondary data sources are generally superior in their speedy provision of data at a lower cost," write Kotler and Philip. In addition, a company may occasionally be able to gather all the necessary data with the aid of secondary research if it is unable to do so on its own. To ensure accuracy, updates, and fairness, researchers must evaluate the data gathered from both secondary and primary sources of information. Every main data gathering technique, including observational, survey, and experimental, has benefits and drawbacks of its own. Similar to this, each of the several study contact techniques, including mail, telephone, in-person interviews, and online, has benefits and downsides of its own.
MkIS in Today’s World
The necessity for a marketing information system is increasing in the modern, dynamic, and competitive market environment.
The necessities of a marketing information system in the context of the present scenario are highlighted by the following points
To Identify Market Trends: Marketing information systems assist managers in identifying market trends in terms of product designs, price, and fashion, among other factors. The business can choose the best course of action when it has timely knowledge of market trends.
To Improve Marketing Planning and Management: In regards to product planning, price, promotion, and distribution, effective promotional planning is necessary. Such planning is only possible if the company has access to sufficient relevant information. Only an efficient marketing information system can make this feasible.
To Enhance Decision-Making Quality A well-designed marketing information system provides accurate and timely data. The marketing professionals can make the best choice at the correct time with the use of machines as well as other data processing tools.
To ensure prompt information delivery: In the highly competitive business environment of today, a company must act quickly to meet customer demands. A well-constructed marketing information system makes the fast information flow necessary for this purpose possible.
Marketing managers need forecasts of present and future demand to fulfil their duties. Planning marketing strategies, implementing marketing campaigns, and managing the marketing effort all depend on quantitative measures. Depending on the degree of product aggregation, the dimension of time, and the space dimension, the company creates various sorts of demand estimations.
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