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USE OF MIS IN
MARKETING
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WHAT IS MARKETING ?
"The management process responsible for identifying,
anticipating and satisfying customer requirements profitably
The basic process of marketing starts in the market place
when
the needs and wants of the customers are identified by
businesses
in the market place. According to these needs and wants the
process of satisfying these needs and wants starts, which
provides
businesses with the basic purpose of their existence in the
marketplace. In efforts to satisfy the customer needs businesses
promote,
sell and supply satisfaction through their products and
services.
Foremost functions of marketing are the collection of
marketing
information and research, planning for product, advertising,
promotion and sales of the products and finally the distribution
of
the products.
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INTRODUCTION
A Marketing Information System (MIS) has
traditionally been proposed to provide marketing
managers a thorough process of intelligence gathering.
Since this information remains continuous, the manager is
able to analyze, evaluate, sort and distribute important,
accurate and timely data required to make effective
decisions for organization to get more profit. Due to the
interactive nature of this information, the marketing
manager is capable of better planning, control andimplementation
of marketing efforts.
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The information provided by Marketing IS helpsmanagers in
planning and managing customer loyalty,
acquisition and retention programs. Marketing IS provides
information about customer profiles, suggesting which ones
are more profitable for the organisation. Marketing IS
particularly becomes of importance in the area of Internet
marketing. Companies continue to improve their websites, as
they rely more and more on electronic interactions with
theircustomers to facilitate their marketing, sales and
customer
service activities.
Overall, an effective Marketing IS largely contributes
tosustained business growth and provides organizations
opportunities to get greater profit margins.
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MKIS Process
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Need for MKIS in companies
to process order faster and with moreaccuracy
to improve customer relationship
to standardize customer servicequality
to be able to see the sales trend
to be able to allocate budget smartly
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Obtains Needed Information for Marketing ManagersFrom the
Following Sources
Obtains Needed Information for Marketing ManagersFrom the
Following Sources
Internal DataCollection of Information from Data Sources Within
the Company
Internal DataCollection of Information from Data Sources Within
the Company
Marketing IntelligenceCollection and Analysis of Publicly
Available Information about
Competitors and the Marketing Environment
Marketing IntelligenceCollection and Analysis of Publicly
Available Information about
Competitors and the Marketing Environment
From: Accounting, Sales Force, Marketing, Manufacturing,
SalesFrom: Accounting, Sales Force, Marketing, Manufacturing,
Sales
From: Employees, Suppliers, Customers,Competitors, Marketing
Research Companies
From: Employees, Suppliers, Customers,Competitors, Marketing
Research Companies
Marketing Research
Design, Collection, Analysis, and Reporting of Data about a
Situation
Marketing ResearchDesign, Collection, Analysis, and Reporting of
Data about a Situation
Functions of a MIS:
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Marketing information system is ongoing, organized
procedures to generate, analyze, disseminate, store and
retrieve information for use in marketing decisions.
Its four major components are:
Internal marketing information
External Marketing intelligence
Statistical techniques and mathematical models Ad hoc research
repository for non recurring problems
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An ideal marketing information system of acompany includes;
Includes real time data
Generates regular reports and recurring studies asneeded
Analyzes the data using statistical analysis and
mathematical models that represent the real world
Integrates old and new data to provide information
updates and identify trends
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The marketing information systems and its
subsystems
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Types of Marketing Information
Every information system is designed to capture somesort of
information. Information requirements need to bedefined before the
systems are made. While designingmarketing information system,
following types ofinformation should be designed.
Marketing Intelligence information flowing from external
environment into the internal environment
Internal Information gathered within the firm
Marketing Communication Information flowing from firmto external
environment
An MKIS help in proper management and disseminationof all three
kinds of information.
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What is MKIS?MKIS (Marketing Information System) is a set of
procedures and methods for the regular, plannedcollection,
analysis and presentation of information for use
in marketing decisions
Consists of people, equipment, and procedures to gather,sort,
analyze, evaluate and distribute needed, timely, and
accurate information to marketing decision makers.
Function: Assess, Develop and Distribute Information.
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MKIS is a type of Information System that helpsthe firm to
achieve following objectives:
Identification of customers for firms products
and services. Development of those products and services to
meet customers needs
Promotion of the products and services, and
Provision of after sale customer support.
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Marketing Information System
Developing Information
Information
AnalysisInternal
Data
Marketing
Research
Marketing
Intelligence
Distributing
Information
Assessing Information
Needs
Marketing Managers
Marketing EnvironmentMarketing Environment
Marketi
ngDecisionsan d
Commu
nication
s
Marketing Information System
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The components of a computerised MKIS
Model Bank- stores marketing models e.g Ansoffs matrix,
Boston Matrix
Data Bank - raw data e.g historical sales data, secondary
data
Statistical Bank- programmes to carry-out sales forecasts,
spending projections
MKIS
Display unit- VDU and keyboard Marketing Manager
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WhyMISIs
Needed
MarketingEnvironment
StrategicPlanning
CustomerNeeds
Competition
Importance of MIS:
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Benefits of MKIS
MKIS helps organizations in efficient channel
management.Following can be identified as some of the benefits of
MKIS.
Customer profiles need to be maintained focusing on their habits
andspending patterns. MKIS helps in maintaining these profiles.
Information on what competitors have been up to is also
criticalmarketing information. This should not be taken as
espionage oncompetitors.
Forecasts of demand are also a critical part of marketing
analysis.MKIS helps in achieving this as well.
Field sales can also be monitored where sales agents are used
tomarket products.
Customers can be quickly updated based on their information kept
inMKIS.
Dealers involved in sale of product can also be monitored to
helpenhance revenues
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Stages of planning and decision making
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Decisions become more and more complex as they move
towards the top in the continuum i-e towards strategic
planning at the top managerial levels. The information
used at the operational level is used at the tactical level
and
tactical level information is used at strategic planning
level
to aid the decision making processes.
1. OPERATIONAL MKTIS
2. TACTICAL MARKETING INFORMATION SYSTEM
3. STRATEGIC MARKETING INFORMATION SYSTEM
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1) OPERATIONAL MKIS
Sales information system
Distribution information systems
Supporting operational level financial accounting systems
2) TACTICAL MKIS
Sales management information systems
Advertising and promotion information systems
Product pricing information system
Distribution channel decision support system
3) STRATEGIC MKIS
Sales forecasting information systems
Product planning and development information systems
Marketing research information system
Competitive tracking information system
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NEW DIMENSIONS IN MKIS
Through extensive use of computers in marketingfield, newer
concepts are emerging in marketing field,
which are revolutionising the way customers were dealt
with.
Customer Relationship management (CRM)
Sales Force Automation (SFA)
Call Centres
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Customer Relationship management (CRM)
Companies are clearly eager to nurture relationships with
their customers. Businesses need to understand the extent
towhich consumers want to engage with their brands. Forsome
businesses there is
Either a strong natural need banks
An emotional attachment Fashion retailer, car
manufacturer Customers now prefer to execute transaction in
an
electronic environment through online-trading. Also
theestablishment of customer services centers has also removedthe
inconvenience to access vendors physical locations.
Due to absence of physical contact, companies are curious tokeep
a soft touch in an efficient manner. This requireskeeping a
customer-wise online track of pastcorrespondence and
transactions.
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Sales Force Automation
It automates some of the company's critical sales and sales
force
management functions, for example,
Customer account management,
Forecasting sales,
Sales administration,
Keeping track of customer preferences,
Sales staff performance.
SFA empowers the sales force to close deals at the customers
office and to configure marketing strategies at home. SFA is
providing tools for very highly evolved sales organizations,
organizations that are basically marketing machines.
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CALL CENTER
Due to its direct contact with customers, call center is
widely
gaining popularity. It refers to a department within a company
ora third-party organization that handles telephone sales
and/orservice. Call centers use automatic call distributors (ACDs)
toroute calls to the appropriate agent. As computers gain more
andmore involvement in marketing field, presence of a highly
efficient and integrated call center has become inevitable.
Callcenters should have direct access to every customers track
recordso as to help them handle queries in an efficient manner.
The call centre should offer an integrative solution so that
customers can be responded efficiently. Call centre should
helpcut long processing times which add to customer frustration
anddissatisfaction with the company.
APPLICATIONS OF SPECIFIC SOFTWARES IN
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APPLICATIONS OF SPECIFIC SOFTWARES IN
MARKETING FUNCTION
Specialized marketing can be classified into five categories;
Sales personnel support software- Helps salespeople sell the
organizations products and services
Sales management software- Helps sales managers manage sales
personnel
Telemarketing software-
Helps manage the telemarketing
program
Customer support software- Helps manage customer support
Integrated marketing software- Provide integrated services
for
many sales and marketing activities
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MIS Software
MIS name Company
1 iLuxo Suite Lux Co.
2 3M GEDW Teradata Comp.,a devision of NCR 3 Arena R Systems
Modeling Corporation
4 Charles Schwab Charles Schwab & Co
5 Clarify eFrontOfficeC Amdocs Ltd.
6 DIALOG++ Balder Technology Group Inc.
7 EDGE AIT Group Plc.
8 Enterprise Rent-A-Car's CIO Service Inc.
9 HTS HNC Software Inc.
10 Hummingbird Hummingbird Ltd. 11 iLuxo Suite iLux Co.
12 Imparto Suite Primus Knowledge Solutions Inc.
13 Inquisite Catapult Systems Corp.
14 IQSupport Application Suite Logica Advantagekbs Inc.
15 LeadMaster TM Lead Master Inc.
16 Owens & Minor Owens & Minor Inc.
17 PJM interconnection PJM Interconnection L.L.C.
18 Plan Magic Plan Magic Corp.
19 QAD QAD Inc.
20 Quadstone Quadstone Company
21 Quintus eContact TM Suite Avaya inc.
22 SalesLogix R QGate Software Limited
23 TeamPOINT Point Corp.
24 Tyson Foods Optio Software Inc.
25 VANTIVE VANTIVE Inc. (PeopleSoft Inc.)
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MARKETING STRATEGIES USING MIS
The role of Information Systems in devising Marketingstrategies
has been increasing over the years.
Organizations derive the following benefits from
implementing Information Systems in marketing:
Creating effective Marketing plans: Target marketidentification,
implementation of the entire marketing
campaign and finally setting up of required standards
criteria and evaluating the performance of the plans
generated. Customizing modules for specific requirements:
Information
can be used to manage campaigns to retain customers,
vendors and optimize services regarding each contact.
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Managing critical business issues: Information Systems are
effectively used to manage critical issues, such as costs
and
budget analysis, media policies, establishing milestones and
segment management for every campaign. Creating Product
promotional strategies: Information Systems
are used to design, analyze and implement product
promotional strategies of a particular brand according to
its
price, quality, and other related issues.
Conducting market analysis: Information Systems can be used
to survey the potential market and this information can be
analyzed to develop specific target market strategies.
Preparing comprehensive reports: Information Systems can
filter information to provide customized solutions tomarketers.
This information can be viewed in various ways
such as summarized views, total, sub total, statistical views
or
graphic views.
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Prepared by :-
Shah Kamran Kareem (08D1354) Pratham Kankaria (08D1350)
Shashaank Paul (08D1355)
Vincent Singh (08D1358)
