MELJUN CORTES - Marketing Information System

8/9/2019 MELJUN CORTES - Marketing Information System

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Marketing Information Systems

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Introduction

Marketing was the first functional area to

exhibit an interest in MIS

The marketing information system has threesubsystems; the accounting information

system (AIS), marketing research, and

marketing intelligence

Functional information systems: the

conceptual systems should be "mirror

images" of the physical systems17-2


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Functional information systemsMarketing

information

system

Manufacturing

information

system

Finance

information

system

Human resource

information

system

Marketing

function

Manufacturing

function

Finance

function

Human

resources

function

Physical system of the firm

Functional Information Systems Represent

Functional Physical Systems

Information

resource

information

system

Information

Services

function

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Marketing Principles

Marketing mix

Product

Promotion

Place

Price

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The Marketing Information

System (MKIS)

Kotler's marketing nerve center

3 information flows

Internal

Gathered in firm

Intelligence

From environment

Communications

To environment

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FirmEnviron-

ment

Marketing intelligence

Marketing communications

Internal

marketing

information

Kotlers Information Flows

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Marketing Information System

(MKIS) Definition

A computer-based system that works in

conjunction with other functionalinformation systems to support the firm's

management in solving problems that relate

to marketing the firm's products.

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An MKIS Model

Output Product

Place

Promotion

Price

Integrated mix

Database

Input AIS

Marketing research

Marketing intelligence17-8


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Inputsubsystems

Output subsystems

D

A

TA

B

AS

E

Accountinginformation

system

Marketingresearch

subsystem

Marketingintelligencesubsystem

Internal sources

Environmental sources

Productsubsystem

Placesubsystem

Promotionsubsystem

Pricesubsystem

Integrated-mix

subsystem

Users

Data InformationMKIS Model

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Accounting Information System

Sales order data is input.

AIS provides data for

Periodic reports

Special reports

Mathematical models and knowledge-based

models

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Marketing Research Subsystem

Managers use marketing research to gather

information

Gathered from customers and prospectsPurchased or procured from other organizations

Processed using marketing research

subsystem

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Primary and Secondary Data

Used by marketing research subsystem

Primary data are collected by the firm

Examples of primary data

Survey

In-depth interview

Observation

Controlled experiment

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Marketing Research Software

Graphics packages (print maps)

Makes market research a reality for all

firms Statistical analysis

Expertise to interpret software outputs is the

key to successful use of these tools

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Marketing Intelligence

Subsystem

Ethical activities aimed at gathering

information about competitors

Not to be confused with industrial

espionage

Each functional information system has anintelligence responsibility

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Product Subsystem

Product life cycle supported through:

1) Introduction

2) Growth

3) Maturity

4) Decline

Information answers 3 key questions:

1) Introduce?

2) Change strategy?

3) Delete?

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Sales

Volume

STAGES

Introduction Growth Maturity Decline

Should the

product beintroduced

Should the product strategy

be changed

Should the

product bedeleted

The Product Life Cycle and Related Decisions

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New Product Evaluation Model

Another part of the product subsystem

New product committee

Explicitly considers production as well as

marketing

Lists decision criteria and their weight

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Place Subsystem

Channel of distribution may be short or long

Material, money, and information flow

through the distribution channelResource flows

Feedback

Flows in direction opposite to the material flowFeedforward information

Flow of information to customer

EDI17-19


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Material, Money, and Information Flow

Two-way information flow

SupplierManu-

facturerWhole-saler Retailer ConsumerMaterial MaterialMaterialMaterial

Money MoneyMoneyMoney

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Promotion Subsystem Includes:

(1) advertising

(2) personal selling

(3) sales promotion

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Difficult Area to Computerize

Successful examples

1. Sales promotion --OCR scanning of barcodes

on coupons2. Personal selling --laptops

A. Order entry

B. Customer call reports

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Pricing Subsystem

Two Basic Approaches

1. Cost based (AIS provides the basis)

2. Demand-based (use what-if model)

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Integrated-Mix Subsystem

BRANDAID Model

Solid arrows: influences

Dashed arrows: responses

Environmental and retailer influence on the

consumer

Individual influences

Combined influences

Unexpected influences

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ProductPriceAdvertisingPromotionPrice-off coupons

Premiums

SamplingsPackage:Graphics &functionAssortment

Sales

Availability

PricePromotionAdvertising

ProductPriceAdvertisingPromotion

Price-off coupons

PremiumsSampling

Package:Graphics &functionAssortment

Seasonaltrend

Manufacturer

Retailer

Competitor Environment

Consumer

BRANDAID

SalesDistribution

PriceTrade promotion

SalespersonsPackage assortment

PriceTrade promotion

Salespersons

Package assortment

SalesDistribution

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-20

-15

-10

-5

0

5

10

15

20

25

30

Actual Model

0 12 24

Months

Months

S

A

L

E

S

Influence of Four Variables, Taken Together

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Sales

Months

New Package

ModelActual

A Model Cannot Cope with Unexpected Events

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The MKIS in Fortune 500 Firms

Preprocessed information 71% of 1990

firms

Mathematical modeling

Generally down

Reason is unknown

Except for production deletion and advertising

media selection

Model use is becoming more balanced

Studies conducted by Li, McLeod, and Rogers17-28


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The MKIS in Fortune

500 Firms [cont.]

Support for management levels

Models

Overall

Support for management functions

Support for the marketing mix

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75 75

61

56

51

40

92

54

77

64

30

14

57

48

41

0

20

40

60

80

100

Retrieving data Storing data Processing data

Percentofcomputeru

sers

1980

1990

N.A. N.A. N.A.

Purposes of Computer Usage

19801990

Retrieving Data Storing Data Processing Data

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1980 1990

Strategic planning

level .17

Strategic

planning

level .30

Management

control

level

.70

Management

control

level

.54

Operational control

level .13

Operational control

level .16

Note: The percentages are based on the number of respondentsranking the particular management levels first.

Model Use Is Becoming More Balanced

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Overall Support from the Marketing Information

System Is Becoming More Balanced

Strategic planninglevel.25

Management controllevel.57

Operational controllevel .17

Strategic planninglevel.28

Management controllevel.40

Operational Controllevel .31

Note: The percentages are based on the number of respondents

ranking the particular management levels first.

1980 1990

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The 1990 Managers Placed More Emphasis on


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The 1990 Managers Placed More Emphasis on

Planning and Less on Directing Than Did

Their 1980 Counterparts

1980 1990

Planning .37

Organizing .03

Directing .25

Controlling .34

Planning .51

Organizing .06

Directing .07

Controlling .36

Staffing .01

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Note: The percentages are based on the number of

respondents ranking the particular mix functions first.

Marketing Managers Are Using the Computer More

for Making the Difficult Price and Promotion Decisions

1980 1990

Product .49

Price .27

Place .16

Promotion .08

Product .32

Price .39

Place .15

Promotion .13

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How Managers Use the MKIS

Integrated

Product Place Promotion Price Mix

VP of marketing X X X X X

Other executives X X X X X

Brand managers X X X X X

Sales manager X X

Advertising manager X X

Manager mktg resrch X X X X X

Manager of product planning X

Manager of physical distribution X

Other managers X X X X X

Subsystem

Subsystem

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MKIS Use by Managers

Industry giants are using the computer as a

marketing tool

To learn about consumer needs and wantsTo formulate the marketing mix

To follow-up on how well mix is received by

the consumers

MKIS information output used across the

firm

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Summary

MKIS

Input subsystems

AIS, Marketing Research, Marketing IntelligenceOutput subsystems

Product, Place, Promotion, Price, Integrated Mix

Operational MKISs consider management

and marketing concepts

Planning is the key

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MELJUN CORTES - Marketing Information System