Marketing information systems is a major management tool designed to support strategic decision making.
Jobber defines it as “a method by which marketing information is systematically collected, stored, analysed and communicated to key decision makers to assist them in meeting their informational requirements on an ongoing basis.” This helps the companies to make a quick decision and implement changes as they are required.
Marketing is one of the key components of any organization.
If proper efforts are not made then growth and success will not be possible. Marketing information systems help organizations make decisions in an effective manner. There are different types of marketing information systems available. These include primary data collection, information extraction, secondary data collection and data cleansing.
Primary data collection method includes collection of marketing research information by different stakeholders.
The process of collecting data is primarily concerned with the prioritization of customer demands and their requirements. The collected data is used for analysis and the results are often used for planning and future direction. The collected data may include qualitative and quantitative information. This forms the first step of a marketing information system.
Information extraction process is the process of gathering information needed for marketing research and analysis. Various steps are involved such as soliciting, collecting, evaluating, interpreting and sharing. The second stage of data collection involves evaluating the collected data for its potential risks and importance to the company. The third and last stage is the sharing of the information and its overall importance with the stakeholders.
The purpose of a marketing information system is not only to store and collect data but also to be able to analyze and act upon it.
Secondary data collection methods include survey questionnaires and focus groups. These may be an important part of a marketing information system but they do not have the same level of reliability and quality as primary sources. Surveys and focus groups may provide useful information from which the company can draw certain lessons to improve its processes and improve the quality of products and services being offered. However, the results of these forms of market research may not always show clearly which products or services are the best or most profitable.
Marketing intelligence managers use different forms of market research in their day-to-day tasks.
One of the best sources of marketing intelligence is the market itself. Gathering and analyzing the market trends and practices helps marketers determine which marketing efforts are working and which ones are not. This helps them to improve on their current marketing efforts while avoiding the risks that come with not taking advantage of current opportunities in the market.
A marketing information system should be able to provide insights on both the positive and negative aspects of the market trend.
It should also allow its users to make decisions based on their preferences, allowing them to take control of their marketing information systems. Marketing managers who are looking for reliable data to support their decision-making should consider gathering and analyzing social media data. By gathering and analyzing the social media data from various sources, a good marketing information system will allow its users to form a more in-depth picture of what the public wants and how the public feels about a certain product or service.
There are several advantages to collecting social media data.
- First, it allows marketers to gather valuable insights from the target audience.
- Second, it helps marketers understand what the target audience wants, which is very helpful in formulating marketing decisions.
- Finally, it gives marketers an insight into the level of consumer engagement with certain brands.
By combining the use of social media data with primary marketing research, marketing information systems allow businesses to make better marketing decisions. In short, a good marketing information system allows businesses to become better at making business decisions.