Market information system may be defined as factual knowledge about the action, antecedents or consequences of social actors outside or inside the firm and the environment in which they operate. Social actors are as consumers, completions, employee, institutions, suppliers, wholesalers, retailers, govt. bodies and NGO’s. The environment actors are physical, technological, economic, legal and social taboos. Marketing decision support system (MKDSS) is an information system that helps with decision making in the formation of a marketing plan. The reason for using a MKDSS is because it helps to support the software vendors’ planning strategy for marketing products; it can help to identify advantageous level of pricing, advertising spending, and advertising copy for the firm’s products. This helps determines the firm marketing mix for product software. Various Constitute Are:
Consumer behaviour, Aggregate demand, the competition, Political/ Legal/ Social environment, Product consideration, Distribution questions, Pricing consideration, Communication issues and Organizational behaviour. Marketing Information System
Marketing Science System:
this includes statistical models and analysis, data base, quantitative, analysis, mathematical models and analysis, and product analysis. All these lead to interpretation of analysis and findings to arrive at conclusion and recommendation. Normative System: this system narrates shapes of judgment of an organization what is good or bad, important or unimportant, what action should be or should not be taken in. It is connected to communication system and marketing science system. The normative system translated organizational goals into sub-goals, policies and standards. Output :-
The overall output of MIS in the management decision system arrives at policies, rules, procedures and directives with regards to organizing, planning, staffing, executing and controlling. Feed Back :-
Feed back on an environment and organization is through the output of marketing information system. However, one cannot specify what information is needed for decision making until an explanatory model of the decision process and the system involved in it are constructed and tested. The marketing information system enables in assessing the managerial information and their feedback effects on environment and organization. This is a continuous process to locate the very open system of marketing in terms of responses to the internal and external pressures. Computer, electronics, communication and audio video technologies have converged closely to produce a new style of operating business. The tools, the technologies and the well designed solutions and system are available to support all needs of the business. What is needed is an integrated solution out of these technologies and the system offering an enterprise wide management support. Such an integrated solution is called as the Enterprise Management System (EMS), which when implemented in an integrated manner for co-ordinated and co-operative function of the business give rise to the Enterprise Management System.
Technology Evaluation Factors
Client server architecture and its implementation- two tier or three tier. Object orientation in development and methodology.
Handling of server and client based data and application logic. Application and use of standards in all the phases of development and in the product. Front end tools and backend data based management system tools or the data, process presentation management. Interface mechanisms: Data transfer, real time access, OLE/ODBC compliance. Use of case tool, screen generators, report writers, screen painter and batch processor. Support system technology like bar coding, EDI, imaging, communication, network. Down loading to PC based packages, MS-Office, Lotus note etc. Operation system and its level of usage in the system.
Hardware- software configuration management.
Marketing Information System is Information System used in Marketing and management that automate some sales and sales force management functions. They are frequently combined with a marketing information system, in which case they are often called customer relationship management system. Sales force management system are information system used in marketing and management that automate some sales and sales force management functions. They are frequently combined with a marketing information system, in which case they are often called customer relationship management. Enterprise Management System (EMS) is any of the strategies and technologies employed in the information technology industry for management the capture, strong, security, revision control, retrieval, distribution, preservation and destruction of documents and content. EMS especially concerns content imported into or generated from within an organization in the course in the course of its operation, and includes the control of access to this content from outside of the organization’s processes.
Marketing management is about finding ways of satisfying customer wants and needs, while achieving organizational objectives or requirements in terms of profit or some other measure of corporate performance. It brings together all customer-impinging resources, such as product design and specification, advertising and other forms of promotion, pricing policy, selling, channels of distribution and physical distribution to achieve this end. These customer-impinging resources are often summarized under four headings and referred to as the four Ps of the marketing mix (price, promotion, place and product). The art or science of marketing management is concerned with making decisions/policies with respect to the elements of the’ marketing mix such that the company’s interface with its markets is both profitable and customer satisfying.
Marketing Information Systems
The concept of marketing information systems has been around for many years. Early systems were paper-based systems but, with the emergence of computers with large storage capacities and later microcomputers with similar features, marketing information systems have become more “electronic” in nature. MIS (marketing information systems) can be classified under five headings:
Planning systems – which provide information on sales, costs and competitive activity, together with any kind of information which is needed to formulate plans. Control systems – these provide continuous monitoring of marketing activities and enable marketing executives to identify problems and opportunities in the marketplace. At the same time, they permit a more detailed and comprehensive review of performance against plans. Marketing research systems – such systems allow executives to test decision rules and cause/effect hypotheses. This permits the assessment of the effects of marketing actions and encourages improved learning from experience. Monitoring systems – these systems provide management with information concerning the external environment in which they are operating. One can define a marketing information system as one which scans and collects data from the environment, makes use of data from transactions and operations within the firm and then filters, organizes and selects data before presenting them as information to management.
Using a Marketing Information System
As we have seen above there are two basic. ingredients to a marketing information system. On the one hand, there is a database or a number of databases containing a variety of data about the firm, its competitors, its markets and the environment. On the other hand, there is the provision of a wide variety of analytical tools capable of exploring the data and turning it into meaningful information for management.
When designing a marketing information system a number of important questions need to be answered in the first place. These are:
(1) Exactly how much information will be entered in the database?
(2) What information will be entered into the database?
(3) How will it be entered into the database?
(4) How will it be manipulated once it is in the database?
(5) To whom will reports be sent?
The question of how much information is extremely important. There is always a danger that too much information may be entered. This will only serve to overload management’s information processing abilities. In addition, any data or information which is not used by management is clearly redundant and will be taking up valuable storage space in the information system. From time to time it is necessary to review the information available in the information system and to remove any that is not being used.
Creating a “real world” MIS for those that cannot afford to wait Rather than wait for the dream to materialize, marketers need to improvise. They need a system that enables them to (1) make better decisions and (2) support those decisions with verifiable data. The initial steps of this approach typically
involve the following:
1. Look at what systems the company already has in place,
2. Determine what useful marketing information can be gleaned from those systems,
3. Identify the information marketers need that they are not getting from existing systems,
4. Create, or find, additional systems to provide the needed marketing information,
5. Integrate these systems with companywide enterprise systems (if possible and not too costly).
1. Start with the accounting system
A good place to start is the business system that every business has – the Accounting system. What information do businesses get from their accounting system that is useful to marketers?
If the accounting software is well designed and flexible, this information can be sorted in a variety of ways including by (1) Sales person, (2) Product, (3) SKU (stock-keeping-unit), (4) Division or Region, (5) Distribution channel, (6) Reseller, and (7) Season. The information obtained from the accounting system is typically enterprise-wide and at a macro level. It usually does not give marketers, or their bosses, the information necessary to (1) determine the effectiveness of the organization’s marketing efforts; (2) enable it to react quickly to real-time crises and opportunities; or (3) respond rapidly to competitive threats. Some of the information that marketers need from an effective marketing information system includes the following:
1. Marketing strategy feedback (or how well marketing strategies are working)
3. Compliments (testimonials)
4. New Product ideas
5. Competition information
6. Marketplace changes
To capture and properly respond to this information, most marketers need to create a Marketing Information System that augments the macro information provided by their accounting systems. 2. Market Information Form
To minimize paperwork, marketers can collect a lot of the information from the above list on a Market Information Form (or its electronic equivalent). The information collected and how this information is used is summarized below. 1. Complaints. Once collected, complaints are distributed to those that can solve the problem quickly. The objective is to turn the negative into a positive and build a stronger relationship with the offended party. The way companies handle complaints can mean the difference between success and failure in an increasingly competitive marketplace. 2. Compliments. After obtaining permission, marketers use compliments in their marketing communications. Nothing is more effective than bona fide testimonials from customers. Copies are also given to sales people so they can put them in their sales notebooks and use them to impress prospects and close business.
3. New Product ideas. These are fed into the company’s new product development system.
4. Competition Information. This is given to sales people to put in their sales notebooks so they can use the data to answer objections and close business (with the caveat of not disparaging competitors) and is fed into the company’s new product development system so that new products can be designed to beat competitors.
5. Strategy feedback. This information is organized by the marketing building blocks (1) corporate image, (2) positioning, (3) product, (4) pricing, (5) distribution, (6) promotion, and (6) marketing information system (yes we need to collect information as to how well our MIS strategies are working). Based on feedback, strategies are adjusted as necessary. A pad of these forms (or an electronic version) is provided to all the contact points including (1) Receptionists and secretaries that answer the phone, (2) Sales people, (3) Customer service people, (4) Repair people, (5) Personnel that respond to inquiries and complaints online and on social media, and (6) accounts receivable (since they often hear about complaints when they try to collect on late invoices). 3. Lead Card
Leads are captured on a lead card or its electronic equivalent. Sales people use the lead card to follow up on a prospect’s interest with the objective of closing the sale. In addition to notes of all contacts, there are four main pieces of information that should be captured on the lead card.
1. Identification of the prospect. If you are selling to a business, most of the information you need is on your contact’s business card. For additional information you need, your lead card should be designed so you can add it with minimal effort.
2. Product interest. The products you typically sell should be pre-listed on the lead card so sales people can quickly check them off.
3. Degree of interest. This is your sales person’s guestimate of how likely the prospect is to buy your product in the current period, which is usually this month. Because the degree of interest is also called “buying temperature” the metaphor for degree of interest that is often is used is Hot for the most interested leads, Warm for the next most interested leads, and Cool for the least interested. The “Hot” leads should automatically update another MIS report called the Hot List.
4. Lead source. All promotion that you do should have a unique code so that when the lead is captured, you know what marketing activity generated the lead. This lead source should automatically update another MIS report called the Promotion Effectiveness report. In addition to helping sales people follow up on leads and close business, smart marketers use lead card information for other Marketing Information System purposes, such as the Hot List and Promotion Effectiveness Report described below. 4. Hot List
An MIS report called the Hot List contains the following information on “Hot” leads:
1. Prospect name. This could be a business or individual.
2. Decision makers. This is so the sales person does not waste time talking with the wrong person.
3. Product or project proposed. This is what the prospect wants.
4. Proposal date. This is the date the product proposal and estimate of the cost is given to the prospect.
5. Dollar-amount proposed. This is the price of the product proposed.
6. Percent chance of closing in the current period. To qualify for the Hot List, a Hot lead should have at least a 25% chance of closing in the current period (each company should decide their own minimum threshold for Hot).
7. Expected Value (5 multiplied by 6). If the dollar amount proposed is $10,000 and the % chance of closing is “guestimated” to be 50%, the expected value would be $5,000.
8. Objections. This lists the objections that are keeping the prospect from buying. Sales managers use the Hot List in two ways.
1. Help close sales. The sales manager helps sales people to close Hot leads by coaching them on how best to answer the Objections in column 8 of the Hot List. 2. Dynamic sales forecast. The sales manager helps to insure that the sum of Expected Values equals, or exceeds, each sales person’s quota for the month. If the expected values are lower than a sales person’s quota, the sales manager can encourage the sales person do whatever is necessary to get more Hot leads on the Hot List so that the sum of Expected Values equals or exceeds the quota. The sales quotas of all the sales people should sum to the “measurable goal” of the Marketing Plan. 5. Promotion Effectiveness Report
As each sales person captures the promotion source for each lead on the Lead Card, the information automatically flows onto his or her Promotion Effectiveness Report. Every time a sales person gives a presentation or makes a sale from a lead, that information is recorded on the Promotion Effectiveness Report. The MIS system automatically adds up the total number of the leads, presentations, and sales company-wide for each promotion source.
When compared to the costs of that promotion source, the marketing department can calculate the promotion effectiveness, or ROI, of each promotion. Since totals for leads, presentations, and sales are available in the MIS by sales person, the sales manager can automatically compute the batting average of each sales person and determine the number of leads and presentations each one needs to make his or her sales quota. In this way, the sales manager and the company marketers systematically work together to insure that (1) plan goals are met and (2) the money invested in promotion is not wasted (the ads and promotions that are effective will be repeated and the ones that don’t will be discontinued). 6. Market Research
The systems above (Market Information Form, Lead Card, Hot List and Promotion Effectiveness Report) typically capture information in real time and provide a lot of great information that help the marketing function do a more effective job and prove it to the CEO. Even so, this is not enough. There are still holes in the information marketers need. In an effort to plug these holes, there is one big missing piece – Market Research. There are two big categories of Market Research – Secondary and Primary. 7. Secondary Research
Secondary research is simply research done by others. Perhaps the greatest invention for secondary research is the search engine. Marketers can simply type in search terms in a search window and browse the Internet for any data related to those search terms. Furthermore, marketers can set up “alerts.” That is, search terms can be entered into a search engine so that the search engine’s crawlers will continually search for anything that contains those search terms and send you an email when it finds them. There are so many other sites, which marketers frequent, that provide a wealth of information. Just a few examples include: Media Post, Marketing Sherpa, Brand Channel, Hoovers, the CIA World Factbook, and ClickZ. 8. Primary Research
When some big holes remain that still need to be plugged, marketers will often do primary research, which is their own research. Common forms of primary research include surveys, focus groups, experiments, and various forms of crowd sourcing.