The marketing information system (MIS) has three main methods to develop marketing information. Critically assess the ability of each way to help Marketing managers understand the consumer behaviour Stimuli in both B2C and B2B contexts.
Introduction
There are many forces that are found in marketing activity, these are external, internal, controllable and uncontrollable. The marketer tries to find out the impact of these forces i.e. which force is affecting more. So for this the marketer tries to gather information from various sources and thus this collecting of information is called Marketing Information System (MIS). .(Rahul Pandita, July 2012; E. Fariborzi and M. Zahedifard, June 2012)
Marketing information system (MIS) is a very useful method in the field of marketing. It is gaining its importance day by day. Marketing information system (MIS) is defined as a complete set of procedures and methods that are particularly designed and formulated to generate, analyse and to store the important marketing information. Marketing information system is carried on regular and continuous basis.
This process is carried out in an appropriate way but if this process of MIS is carried out in an infrequent manner then the firm may face many risks and the risk are as follows:
1. Many important opportunities may be missed.
2. It may lead to lack of awareness of change in business environment and actions of competitors.
3. The task of data collection will become difficult.
4. It will become difficult to properly review the marketing plans and decisions.
5. There may be time lags if new information is required.
1. Important data is safely stored.
2. Crises may be avoided.
3. Co-ordination in marketing plans.
4. Data collection is done in an organized way.
5. Data can be kept stored for a longer period of time.
6. Perspective of marketers becomes broader.
7. Increases the ability to do an effective cost benefit analysis.
8. It increases the speed to take quick marketing decisions.
METHODS OF MARKETING INFORMATION SYSTEM AND ITS IMPORTANCE FOR MANAGERS IN UNDERSTANDING CONSUMER BEHAVIOUR
There are three methods of Marketing Information System and they are as follows:
1. INTERNAL COMPANY INFORMATION: information that is gathered by the marketing manager within the company is called internal company information. This internal company information includes sales, purchasing, financial, manufacturing and administration information. Some of these are explained as follows:
- Financial Information: this information is related to the performance of the company in financial terms. It includes profit and loss of the company; what amount is paid for the items; salary given to the staff and the taxes paid by the company. In order to monitor this financial information a financial controller or accountant is appointed to have the best information. (Jeanette Hayworth, July 2012).
- Personnel Information: this set of information includes complete information of the employees working in the company. It includes the name, designation, from how much time the employee is in the company, bonus given to the employees. Some other information includes getting the proof of the qualification of the employees so that it is ensured that the employee is eligible for entering the company.
- Purchasing Information: This set of information includes getting the data of all the purchases done within the company. This is carried on by the purchasing department. It includes a product that can be stationary or computer that are needed for everyday activities of the company. The purchasing department monitors very carefully the cost as well as the quality of the purchased goods. They ensure that they get the best deal and profits of the company are maximised. (Jeanette Hayworth, July 2012).
- Sales Information: this information includes collecting the data of sales done by the company during the financial year. It also includes knowing the current sales of the company. If the financial department finds, the sales, are decreasing then it is passed on to the marketing team.
IMPORTANCE OF INTERNAL COMPANY INFORMATION:
The data collected from all the above process is analyzed in order to understand the consumer behaviour and in developing products as well as programs in order to satisfy consumer demand. This information helps in reducing the risks of the product failure and also knowing the reasons that why the sales of the company is decreasing. (Jeanette Hayworth, July 2012; Chaffey D., 2009; Allen Thompson, October 2010)
This internal information of the company is easily accessible. If this step of Marketing Information System is done carefully then business will earn more profits and the consumers will be fulfilled to a great extent.
2) MARKETING INTELLIGENCE SYSTEM:
Marketing intelligence (MI) is the day to day information that is relevant to the company’s market. It is analyzing the market opportunity of the company in order to create accurate and confident decision-making.
Marketing Intelligence involves a number of activities like scanning the newspapers, magazines and the data produced by the government about the latest trends and also the competitors market. Big companies give this responsibility to the marketing department. Sometimes the companies get connected to the news service companies that provide them the latest information of the market on a regular basis.
Following are the sources of information which helps in gathering market intelligence:
i) Search Engines and Corporate Websites: the best way to gain market intelligence is to examine the websites of the competitors as well as doing the basic with most common search engine Google. In order to find out what the press is writing about the company, the best way is to sign up in order to receive free alerts through e-mail.
ii) Publications: there are several publications by various print media; it includes newspapers and magazines. They help in knowing the latest trends, regulations imposed and the issues of the consumers. Some of the magazines publications are available online as well.
iii) Trade Shows and Associations: trade shows are also one of the way in knowing that what the competitors are doing. The marketing manager carries a survey by visiting these trade shows and knows that what the competitors are offering. There are also some associations that collect information regarding the trends, breakthrough, new technologies and new processes in a particular industry.
iv) Salespeople: company’s salespeople are an important source of market intelligence. At that point of time rather going through the magazines, newspapers, trade shows and associations the sales people will be asked to get their focus on the problem.
Salespeople are considered eyes and ears of their company. They know what is place of their company’s product in the market. .(Rahul Pandita, July 2012; E. Fariborzi and M. Zahedifard, June 2012)
IMPORTANCE OF MARKETING INTELLIGENCE:
1) Market intelligence helps in implementing market and customer orientation.
2) It encourages people throughout the company to focus properly.
3) It helps in identifying new opportunities available for the company.
4) Competitors policies and strategies can be easily studied and in return it helps to formulate the company’s policies.
5) Better selection of market can be done.
6) Better understanding of customer needs.
3) MARKET RESEARCH:
This is the third component of Market Information System. Marketing research is conducted in order to solve the specific marketing problems of the company. Data is collected about the problem. After collecting the data, it is tabulated, then analysed and at the end conclusions are drawn. These conclusions include the solutions of the problem and the recommendations of the problem. The information gained from market research is very specific, and it is used for a particular purpose. Market research has a very wide scope.
The main task of the market research is to help the management in getting the relevant, accurate, valid and accurate information. The main role of marketing managers is to make strategic decisions in identifying and satisfying the customer needs.
Stages of market research: following are the stages of the market research;
a) Defining the problem or need: it is the starting stage of the process. In this step, the problem is identified and for which research is conducted. Once the problem is identified, and the need of the research is discussed the further process is carried on.
b) By whom research will be done: once the initial stage of market research is done i.e. problem is identified then it is to be decided who will do the research and then approaches will be identified to resolve the problems. It involves in creating a problem solving framework, and then discussion is done with the organization experts. Then the sample case studies are created according to the designed framework.
c) Selecting proper methodology: in this step a proper methodology is selected. For this like telephone survey, web or email survey, one-to-one interviews, secondary research etc. This methodology process is a blueprint of the market research process.
d) Data collection process: it includes field work and desk work in order to collect relevant information and data. In field work personals are being interviewed and it is done by interacting with them face to face. In desk work personals are contacted over telephone or through email and web meetings. For this method trained executives are being appointed so that there are no mistakes and the information collected is relevant.
IMPORTANCE OF MARKET RESEARCH:
Market research is conducted in order to stay tuned with the changing market trends. Market research is needed at every stage of the company i.e. whether the company is at start up stage or at expansion stage.
Market research is vital in order to understand the critical characteristics of the target market in order to increase sales, profit and overall success of the business. The importance of market research can be best achieved by understanding the various factors that impact the business.(Jeanette Hayworth, July 2012; Chaffey D., 2009; Allen Thompson, October 2010)
CONCLUSION:
Market Information System is a important method of marketing process. This helps the marketing manager in knowing the customer needs and then making the strategies in order to satisfy their needs. All the components of the MIS help the company in knowing the markets environment and to change according to the same.
References:
- E. Fariborzi and M. Zahedifard, June 2012, E-mail Marketing: Advantages, Disadvantages andImproving Techniques, International Journal of e-Education, e-Business, e-Management and e-Learning, Vol. 2, No. 3.
- Lancaster, G. and Massingham, L. (1999) Essentials of marketing: text and cases. 3rd edition. London, McGraw Hill.
- Laroche, M. et al (2006) Competitive advertising interference and ad repetition effects. International Journal of Advertising, Vol25(3), pp271-307.
- McDonald, M. et al (2006) Marketing due diligence: reconnecting strategy to share price. Oxford, Butterworth Heinemann
- Barkin, E. (2010, April). Jetting to greener pastures. Customer Relationship Management, 14(4), 30-33,36.
- Gugajew, S. (2008). A method to the creative madness. Journal of Integrated Marketing Communications, 7, 12-18. Retrieved from http://jimc.medill.northwestern.edu/ JIMCWebsite/site.htm
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