MARKETING INFORMATION

SYSTEM [MKIS] & MARKETING

RESEARCH
UNIT - V
MARKETING INFORMATION SYSTEM [MKIS] :

A marketing information system consists of people,

equipment and procedures to gather sort, analyse, evaluate
& distribute needed tiny and accurate information to
marketing decision makers.
The company’s MKIS should represent across between
what managers think & they need , what managers really
need and what is economically feasible.

“ A structural, interacting complex of persons,

machines & procedures designed to generate and orderly
flow of pertinent information, collected from both intra and
extra firm sources, for use as the basis for decision making
in specific responsibility areas of marketing management ”.
KINDS / COMPONENTS OF MKIS :

1. Marketing control system {marketing intelligence system}

2. Marketing planning system {internal record system}

3. Marketing research system

4. Marketing decision support system [DSS]

 THE ORGANISATION OF MARKETING INFORMATION
SYSTEM [MKIS] :

PRODUCTION SALES DEALERS

GOODS
GOODS

MANUFACTURERS CUSTOMERS

PROCESSED
INFORMATION
MARKETING
INFORMATION
SYSTEMS
DIFFERENCES B/W MKIS V/S MARKETING RESEARCH :

MKIS :

 It is future oriented

 MKIS is continuous

 MKIS became popular in 1960’s

 MKIS uses computer

 The main objective is to assist decision making

 MKIS is wider scope

MARKETING RESEARCH :

 It is post mortem

 Marketing research is not continuous

 Marketing research became popular in 1950’s

 Marketing research may be or may not be.

 To achieve certain objective marketing research is

conducted.

 Marketing research is a part of MKIS.

MARKETING RESEARCH :

“ The systematic gathering, recording and analysing of

data about problems relating to the marketing of goods &
services ’’.

Such research may be undertaken by impartial

agencies or by business firms or their agencies for the
solution of their marketing problems and inclusive term
which embraces all research activities carried down in
connection with the management of marketing work.
OBJECTIVES OF MARKETING RESEARCH :

 To define probable market for a particular product.

 To find out general market conditions and tendency's

 To assess competitive strengths and policies[SWOT

analysis]

 To indicate the distribution methods best suited to the

product & market

 To assess the probable volume of future sales

 To know customer acceptance [consumer survey]

FUNCTIONS OF MARKETING RESEARCH [M.R] :

 The production of marketable goods

 The distribution of marketable goods
 The size, nature & the organization of the sales
 The demand creation activities
 It ascertains the position of a company in specific industry
 It indicates the present & future trends of the industry
 It helps in the development & introduction of new products
 It offers guidance for improving the current products of the
company
 It helps in assessing & enhancing the effectiveness of
sales management
 It can reduce the risk involved in marketing decisions.
ELEMENTS OF MARKETING RESEARCH :

1. Market research
2. Sales research
3. Product research
4. Packaging research
5. Advertising research
6. Business economic research
7. Export marketing research
8. Media research
9. Distribution research
ADVANTAGES OF MARKETING RESEARCH :

• It facilitates planned production

• To forecast the demand
• Acceptance of new products is judged
• It helps to remove wasteful expenditure and cost
• Marketing research helps to study the effectiveness of
pricing policies, channels of distribution, advertising ,
sales promotion & other activities
• To understand consumer behaviour
• Helpful in improving relations with dealers
• Helpful in overcoming sales resistance
LIMITATIONS OF MARKETING RESEARCH :

• Marketing research huge amount of time & money.

• Small business firms cannot afford it.
• It is the study of human behaviour. so., it cannot be 100%
accurate.
• It depends on the quality of research staff.
• Individual views of executives may give bias/
carelessness
• Time lag b/w research study and implementation
• It is very difficult to measure the effectiveness of
marketing research.
PROCESS OF MARKETING RESEARCH :

1. Problem formulation
2. Decision on fact
3. Data collection
4. The marketing sample
5. Data evaluation
6. Interpreting the data
7. Report preparation
 Executive report
 Technical report
 Data report
 Popular report
8. Designing questionnaire
9. Interviewing
CREATING A RESEARCH DESIGN :

1. Choosing the approach

2. Determining the types of data needed
3. Locating the source of data
4. Choosing a method of collecting data

SOURCES OF DATA :
1. Internal sources
• Product analysis
• Territorial analysis
• Customer analysis

2. External sources
• Primary sources
• Secondary sources
 SAMPLING

SAMPLING METHODS :

1. Law of statistical regularity

2. Law of inertia of large numbers

3. Qualities of a good sample

 It must be random
 It must be representative
 It must be proportional
 It must be adequate
TYPES OF SAMPLES :

1. Probability or random
 Systematic sampling
 Stratified sampling
 Cluster & area sampling
 Multi stage
 Segmental sampling

2. Non – probability or purposive

 Convenience
 Judgement
 Quota sampling
SOURCES OF PRIMARY DATA :

METHODS :

1. Survey method
• Personal interview
• Mail survey
• Telephone
• Questionnaire

2. Experimental method
• Product testing
• Psychological techniques
• Consumer panels
SOURCES OF SECONDARY DATA :

1. Government reports.

2. Technical, economic & commercial journals

3. Information gathered by professional organisation and

associations.

4. Published or unpublished thesis.

5. Data collected by universities, colleges & research

organisation.

6. By – products of administration.

7. Data collected by different organisations.

 MARKETING CONTROLS

I. ANNUAL PLAN CONTROL : [e.g.: budget]

Annual plan control aims to ensure that the company
achieves the sales, profits and other goals established in its
annual plan. It is a management by objectives.
 It [management] sets monthly or Quarterly goals.
 It monitors its performance in market place.
 It determines the causes of serious performance
deviations.
 It takes corrective action to close the gaps b/w goals &
performance.
This control model applies to all levels of organisation.
Top management sets annual sales & profit goals that
become specific goals for lower levels of management.
THE CONTROL PROCESS :

Goal setting WHAT DO WE WANT TO

ACHIEVE ?

Performance WHAT IS HAPPENING ?

Measurement

WHY IS IT HAPPENING ?
Performance diagnosis

Corrective action WHAT SHOULD WE DO

ABOUT IT ?
FIVE [5] TOOLS TO CHECK PERFORMANCE OF THE
PLAN :

1. Sales analysis

2. Market share analysis

3. Marketing expense- to – sales

4. Financial analysis

5. Market based score card analysis

II. PROFITABILITY CONTROL :

Companies need to measure the profitability of their

products, territories, customer groups, segments, trade
channels and order sizes. This information will help
management to determine whether any products or
marketing activities should be expanded, reduced or
eliminated.

PROFITABILITY ANALYSIS – STEPS :

1. Identifying functional expenses.

2. Assessing functional expenses to marketing entities.
3. Preparing a P&L statement for each marketing entity.
4. Determining corrective action.
5. Direct v/s full costing [ABC]
III. EFFICIENCY CONTROL :

More efficient ways to manage the sales force,

advertising, sales promotion and distribution in connection
with these marketing entities.

 Sales force efficiency

 Advertising efficiency

 Sales promotion efficiency

 Distribution efficiency
IV. STRATEGIC CONTROL :

From time to time, companies need to undertake a

critical review of overall marketing goals and effectiveness.
Each company should periodically reassess its strategic
approach to the market place with marketing effectiveness
reviews and marketing audits.

Companies can also perform marketing excellence

reviews and ethical & social responsibility reviews.