Marketing Information Systems

Marketing information systems (MIS) are tools used by businesses to collect, analyze and present data that can be used to make marketing decisions. The MIS can be used to track customer behavior, understand trends and develop marketing strategies. The MIS can also be used to track the performance of marketing campaigns you get after testing. As well as to assess the effectiveness of marketing strategies.

The data collected by the MIS can be used to improve the targeting of marketing campaigns and to optimize the use of marketing resources. The MIS can also be used to develop customer profiles and to segment customers into groups for targeted marketing. The data collected by the MIS can also be used to create custom reports and dashboards that provide insights into customer behavior and trends. 

The benefits of using a MIS include the ability to make better informed decisions, the ability to track and monitor marketing performance, and the ability to segment customers and target them with more effective marketing campaigns. Additionally, using an MIS can help businesses save time and money by reducing the need for manual data collection and analysis.  

Importance of Marketing Information System

MIS is a set of procedures and methods designed to generate, store, analyze, and distribute relevant information to marketing decision makers. An MIS can be used to support a wide variety of marketing decisions, including product development, pricing, promotion, and distribution. An effective MIS can give marketers a competitive advantage by providing timely and accurate information that can be used to make informed decisions. Additionally, an MIS can help organizations keep track of their marketing efforts and performance over time.

There are several benefits of using an MIS in marketing:

• It can help you save time by automating data collection and analysis.
• It can improve the accuracy of your marketing decisions by providing reliable data.
• It can help you track your marketing performance and ROI over time.
• It can help you identify new market opportunities and optimize your marketing strategies.
• It can help you reduce marketing costs by eliminating the need for manual data entry and analysis.

If you are not currently using an MIS in your marketing efforts, it may be time to consider implementing one. An MIS can give you a competitive edge by providing accurate and timely information that can be used to make informed decisions. Additionally, an MIS can help you track your marketing performance and ROI over time, which can be invaluable for long-term planning.

Components of Marketing Information System

MIS is a set of procedures and methods used to gather, sort, analyze, and distribute timely, accurate, and relevant information to marketing decision makers. It includes four key components: 

• The internal reporting system, 
• The marketing research system, 
• The marketing intelligence system, and 
• Marketing models

The internal reporting system

The internal reporting system is responsible for collecting data from various sources within the company, such as sales figures, inventory levels, customer satisfaction surveys, and so on. This information is then compiled and organized into reports that can be used by managers to make informed decisions about marketing strategy and tactics.

The marketing research system

The marketing research system gathers data from both primary and secondary sources in order to understand consumer behavior and market trends. This information is used to develop marketing plans and strategies.

The marketing intelligence system

The marketing intelligence system is a tool that helps managers keep track of competitors, industry trends, and other changes in the marketplace. It can be used to make decisions about pricing, product development, and other aspects of the marketing mix.

Marketing models

Marketing models are mathematical or statistical tools that can simulate different marketing scenarios and predict outcomes. They can be helpful in decision-making about issues such as product positioning, target markets, and promotional strategies.

Types of Marketing Information System

There are different types of MIS, each with its own advantages and disadvantages. The type of MIS that is right for a particular business will depend on the company’s specific needs and objectives.

1. Customer Information System (CIS)

The most common type of MIS is the customer information system (CIS). This type of system gathers data about customer buying habits and preferences. The CIS then uses this data to help businesses make better marketing decisions.

2. Product Information System (PIS)

Another type of MIS is the product information system (PIS). This type of system gathers data about a company’s products, including sales data, production costs, and inventory levels. The PIS then uses this data to help businesses make better marketing decisions.

3. Market Research Information System (MRIS)

The last type of MIS is the MRIS. This type of system gathers data about a company’s competitors, customer needs and wants, and the overall market. The MRIS then uses this data to help businesses make better marketing decisions.

Which type of MIS is right for your business will depend on your specific needs and objectives. Talk to a marketing consultant to learn more about the different types of MIS and how they can benefit your company.

Sources

There are five major sources of information in marketing research. They are 

• Primary Data 
• Secondary Data 
• Information from Respondent 
• Experimentation and 
• Simulation

Primary data is original data, specifically for the purpose of the research project at hand. It is gathered through methods such as surveys, interviews, focus groups, and observation.

Secondary data is data that has already been collected for other purposes and can be repurposed for use in the current research project. This type of data comes from published reports, government statistics, and commercial databases as well.

Information from respondents can glean through qualitative methods such as interviews and focus groups, or quantitative methods such as surveys. This type of information can provide valuable insights into customers’ needs, wants, and perceptions.

Experimentation involves manipulating one or more variables in order to observe the effect on another variable.

This type of research can help test different messaging or promotional strategies. Simulation is a type of modeling that uses mathematical and computer-based techniques to generate predictions about real-world systems. This approach can assess the potential impact of proposed marketing initiatives on sales, profits, or other key performance indicators.

The most appropriate source of information for a given marketing research project will depend on the specific objectives and requirements of the study. However, all of these sources can provide valuable insights that can help to inform marketing decisions.

Difference between marketing research and MIS:

There is a big difference between marketing research and MIS. Marketing research can help businesses understand the market trends, customer preferences and buying behavior. It helps businesses make informed decisions about product development, pricing, promotion and distribution. MIS, on the other hand, is a tool that collects, stores and analyzes marketing data. It provides businesses with information that they can use to make better marketing decisions.

• Marketing research is a more comprehensive and detailed process than MIS. It involves data collection, analysis and interpretation. MIS is mostly a data storage and retrieval. It does not provide in-depth insights into the market trends and customer behavior.
• Marketing research is essential for businesses that want to stay ahead of the competition. It helps them understand the changing needs of the customers and develop products that meet those needs. MIS, on the other hand, is mostly for businesses that want to track their marketing performance. It gives them an idea about which marketing strategies are working and which are not.
• Marketing research is a time-consuming and expensive process. MIS is less expensive and sets up quickly.
• Marketing research requires expertise and skills. Businesses with little or no marketing experience can use MIS.
• Marketing research provides actionable insights. MIS provides data that can help make informed decisions.
• Marketing research is an important part of any marketing strategy. MIS should supplement marketing research. It should not be a replacement for it.

Examples of Marketing Information System

• Sales and marketing teams can use MIS to track customer behavior and preferences, as well as sales data. This information can improve marketing strategies and increase sales.
• A MIS can also track competitor activity and develop marketing plans that better respond to their moves.
• Additionally, a MIS can help organizations understand which channels are most effective for marketing campaigns and where potential new customers are coming from.
• Finally, a MIS can provide insights into customer lifetime value and other important metrics that help businesses make decisions about pricing, product development, and other strategic issues.
• There are many different software applications and tools that can build MIS. Some common examples include Salesforce, HubSpot, Marketo, and Pardot.
• MIS can be as simple or complex as a business needs it to be. The important thing is that the system has to meet the specific needs of the organization and provides the data and insights that decision-makers need to make informed decisions.
• With the right MIS in place, your business will be able to make data-driven decisions that improve your bottom line.

Questions 

Which of the following statements about marketing information systems is true?

1. Computerized MIS do not provide a continuing flow of data, making it difficult to obtain timely knowledge.
2. Decision support systems are not very helpful to managers because they cannot use them while they are making their decisions.
3. Marketing information systems can handle large data sets that are too complex for typical database management tools.
4. all of these statements are true.

Answer: Option (C) is correct.

Which of the following is true of a good marketing information system?

1. It is solely concerned with increasing the amount of data created, regardless of its importance.
2. It is quite unusual to find a firm using only external data sources in marketing research.
3. Balancing the information, a company wants with what it actually needs helps keep the company efficient.
4. It goes out of its way to provide information on future plans of action that are unlikely or ineffective.
5. It reduces the time-consuming process of determining a firm’s information requirements.

Answer: Option (C) is correct.

Which of the following best describes a MIS?

1. Information gathered from the Internet for consumer research
2. People and methods for managing information to produce and verify actionable customer and market insights
3. The marketing team that relies on consumer insights to make judgments
4. The tools that to collect and analyze data, including hardware, software, and networks.

Answer: Option (B) is correct.

Which of the following is not a source of internal data within a marketing information system?

1. Cost information 
2. Google Searches
3. Sales data 
4. Schedule information
5. Customer service records

Answer: Option (B) is correct.

Concluding Remarks 

Thus, when choosing MIS, businesses should consider their needs and objectives. Additionally, businesses should consider the features and capabilities of different MIS systems to find one that best meets their needs. Some factors to consider when choosing an MIS include the ability to collect and analyze data, the ability to create custom reports, the ability to segment customers, and the price. MIS is a powerful tool that can help businesses improve their marketing decision-making. By using an MIS, businesses can save time and money while also gaining valuable insights into customer behavior.