Marketing Information System
The demand for more advanced data collecting and processing techniques grew along with the need for information. A haphazard, unplanned collection of data fragments is no longer sufficient. To satisfy this requirement, a Marketing Information System (MIS) emerged as a crucial element of the marketing procedure.
By educating executives about the internal and external environments in which they operate, an MIS—broader-based and more complex than marketing research—better satisfies their needs.
As MIS became more widely accepted, marketing research started to lose its dominance as the primary method for gathering data in the marketing environment.
Whether it is a marketing information system, an accounting information system, a financial information system, or another type, most experts agree that an information system should include all data collection and processing elements. Each information system may support a wide range of operations.
What is a marketing information system?
The marketing information system is the systematic collection, examination, interpretation, storage, and presentation of market data to marketers regularly and continuously from internal and external sources.
For marketers to make educated judgments regarding marketing operations, including pricing, packaging, new product development, distribution, media, and promotion, the marketing information system offers pertinent information to them.
Every marketing operation must be in tune with the circumstances inside and outside the company. Therefore there are many places to get essential market knowledge, including internal, marketing intelligence, and marketing research.
What is the importance of a marketing information system?
You will need to make strategic decisions, whether as a marketer or a business owner, to improve your product, increase your market share, draw in new customers, and handle the competition. The most reliable basis for any decision is data. You can build more effective campaigns with detailed knowledge of your marketing environment, competitors, consumers, and behaviour. You won’t have to think and waste time and money using the insights from reports and marketing research.
The following are additional benefits of using a marketing information system:
- a thorough analysis of supply and demand;
- increased market share and competition;
- the identification of business development opportunities;
- the adoption of a customer-focused strategy;
- the identification and management of business risks;
- an improvement to your company’s overall marketing strategy;
- monitoring your competition;
- and improved control of all marketing activities.
Deploying a marketing information system requires considerable commitment, work, and a learning curve despite the rewards being alluring. When you are prepared to start, discover how to gather the necessary data. They are also referred to as parts.
What are the different components of a marketing information system?
Internal records, a marketing intelligence system, marketing research, and a marketing decision support system make up the four components of the marketing information system (MIS).
1. Internal records
The company’s internal data, including the customer, sales, operations, and financial databases, are used to compile the information that makes up internal records. For the administration of marketing strategies, this information may be used.
2. Marketing intelligence system
This system informs marketers of market events, including trends, the marketing environment, customer preferences and choices, rival pricing and promotion strategies, and more.
3. Marketing research
This refers to the systematic gathering and analysis of market data that may be utilised to address issues and create a more effective marketing strategy.
4. Marketing decision support system
Marketers analyse marketing information and data using various software programmes that make up the marketing decision support system.
What is the process of a marketing information system?
Please read on to discover how a marketing information system functions.
Because every piece of information has an actual cost and an opportunity cost, it is crucial to carefully select the topic or area that calls for using a marketing information system and establish the right metrics.
The pertinent information for the designated KPIs is obtained from various internal and external sources, including books of accounts, sales records, sales reports, and analytics (customer surveys, economic or financial metrics, social media insights and competitor results).
The obtained data must be organised and correctly presented on a graph to facilitate comparative analysis, future prediction, and interpretation.
The fourth step is sending the graphical data to the various departments so that they may correctly evaluate and analyse the available data and make a variety of decisions in line with the company’s objectives.
The choice of the most suitable course of action for the marketing metrics and its application to the business to enhance marketing outcomes constitute the last step.
What are the examples of a marketing information system?
Nowadays, almost every business has a marketing information system since it helps them make wiser decisions, which leads to increased sales. For instance, many retail companies offer their consumers loyalty cards, and many brands let customers create profiles in their online shops. Both loyalty cards and customer profiles allow businesses to learn more about their consumers. They record their spending patterns, the amount they spend on goods, their level of involvement, the items they view, and other information. Using this information, they manage their pricing strategy, create cleverer marketing campaigns, and provide relevant offers at the ideal area and time.
Services for online reservations operate similarly. They keep track of their clients’ routines, tastes, and travel plans to get insights and take appropriate action. For instance, companies like airlines and accommodation services keep track of all the information mentioned above. This allows them to keep an eye on demand and boost prices as necessary. They can also provide loyal customers discounts during the off-season.
Final words
Congratulations! You now better understand a marketing information system’s benefits, elements, and applications. Use this tactic in your business to keep current with market trends and increase profitability.
