Marketing Management

(MBA 204)

MARKETING INFORMATION SYSTEM

 Unit 1

Understanding Marketing and Consumers:

Definition, Importance, Scope, Various Marketing Concepts.
Marketing Mix, Marketing vs Selling, Effect Of Liberalization and
Globalization, Creating Customer Value.

Analyzing Marketing Environment-

Micro, Macro Corporate Strategic Planning: defining role marketing
strategies, Marketing planning process.

Marketing Information System:

Concept and Components. Understanding Consumer Behaviour, Factors
Influencing Consumer Buying Behaviour, Business Buying
Process, Understanding Business Buyer Behaviour.
 You may also Refer :

You may also refer to any of the recommended

books (as detailed in the course content already with
you), and known to you… like Marketing mgt by
Kotler & Koshy or
Marketing Mgt by Sontakki or
Marketing mgt by Ramaswamy, Namakumari or
Marketing mgt by Rajan Saxena.
Also notes during sessions.

For any query ask any time.

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 What is marketing information system?
Marketing information consists of people, equipment and
procedures to gather, sort, analyze, evaluate and distribute
timely accurate information needed for marketing decision
makers.
It is largely generated in the external environment, from
customers potential to customers, untapped market segments,
competitors and government agencies.
Marketing information system is an internal arrangement
designed to support management decision making and action.
It provides management with current or conditional future states
of the market environment and the market responses to
company and/or competitor actions.
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 What is marketing information system?
Defined:
“A structure interchanging complex of persons, machines and
procedures designed to generate an orderly flow of pertinent
information collected from both intra and extra firm sources for
use as the bases for decision making in specified responsibility
areas of marketing management. – Prof.Brien

It is a set of procedures and methods for the regular and planned

collection, analysis and presentation of information in making
marketing decisions. – Cox and Gonod

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The Need for Marketing Information System
The ever changing external or environmental forces do
affect the internal situation and such an adaptive system
can survive when it takes warranted decisions on the
basis of marketing information.
The need hence arises because of the changing nature of
the external forces, as outlined under:
1. Knowledge of consumer demand.
2. Growing complexity of marketing.
3. Changing economic parameters.
4. Changing competitive conditions.
5. Strides in science and technology.
6. Fast growing consumerism.
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 Elements of Good Marketing Information
System
A good marketing Info.sys. has following requisites or
essentials:
1. It is unified and centralized system. (information or
activity).
2. It is a decision supporting system.
3. It is compatible with the organization.
4. It is economical.
5. It is need-based and use-oriented.
6. It is fast in communication.
7. It is future oriented.

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 Components of Marketing Information
System
A highly developed marketing information
system has four major components or divisons:
1. Internal Marketing Information.
2. Marketing Intelligence.
3. Marketing Research.
4. Management Science.

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 Components of Marketing Information System:
1.Internal Marketing Information.
It is also called as internal accounting system.
It involves using marketing data available from
within the company as a means of indicating
the cost effectiveness of the firm.
The detail of internal sales, costs, inventories,
cash-flows, account receivables and payables,
time availability and so are provided by
internal marketing system.

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 Components of Marketing Information System:
2.Marketing Intelligence System.
It involves collection of qualitative and often
subjective data about changing conditions in
the marketing macro environment.
There are external forces that influence the
functioning of a given organization. Therefore
marketing information should be able to
gather, store and retrieve selectively the
information regarding competition,
demographic, socio-economic and
psychographic aspects of customers.
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 Components of Marketing Information System:
3.Marketing Research System.
Marketing research can only be a part of marketing
information system as later has wider coverage.
Marketing research is a ‘flash bulb’ activity in so much
as it provides an intense but short-lived insight into
particular areas of marketing concern.
MR offers special indepth information to the marketing
persons to combat typical marketing problems.
MR efforts are project-oriented involving the studies of
buyer behaviour, product or brand preferences,
product usage, advertising awareness, sales
promotion, competion and alike.
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 Components of Marketing Information System:
4. The Management Science System.
It is nothing but ‘operations research’, which is the latest
addition to this marketing information system.
Operations research is the application of scientific
methodology and quantitative techniques to business and
other operating problems.
Operation researchers use mathematical models in their
analysis. Model is essentially a representation of the real
world.
It helps in making complex decisions in the areas of new
product development, marketing-mix, media selection,
inventory control, allocation of marketing expenses and
other such issues.
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 Marketing
Environment

Why
Information Competition
Customer Is
Needs Needed

Strategic
Planning

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Importance of marketing information system
• Anticipation Of Customer Demand-Every
marketer needs up-to-date knowledge about
consumer needs and wants.
• Systematic Approach-Expanding markets and
competitive marketing environment require
adequate market intelligence system.
• Economic indicator-Marketers must have
latest information on the changing trends of
supply, demand and prices

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• Significance of Analysing Competition-Marketer
cannot survive without having information regarding
nature , character and size of competition to be met.
• Development of Technology-Marketers must have
latest information regarding technological
development.
• Understanding the Consumer-Information system
can establish proper two way flow of information and
understanding between marketers and consumer.
• Marketing Planning-Marketing plans and
programmes are based upon information supplied by
economic forecasts and market research.

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Marketing Information system supplies three
types of information.
• Recurrent Information
• Monitoring Information
• Requested Information

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 Recurrent Information
This is the data that an MIS supplies
periodically about the market share of a
specific product and customer’s awareness of
company’s brands. The data may be supplied
on weekly, monthly or yearly basis.

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 Monitoring Information
This is the data obtained from the regular
scanning of certain sources. Marketing
managers may need data related to competition
or the industry. It is essential so that marketing
managers can be alert and identify potential
problems

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 Requested Information
This information is developed in response to
some specific request by the marketing
manager. Secondary data or primary data
through survey research are collected in
response to the specific request. The MIS
supplies the requested information for decision
making.

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 Marketing Information system

External data
Marketing Marketing Marketing
Research Information Managers
division system Division
Internal data

Requested
information

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 Sources of Marketing Information .

The MIS information inputs come from different

sources, viz., both within and outside firms . Some of
the commonly used internal sources of information
are:
Sales Analysis- The marketing information system
retrieves sales information and put them in usable and
disaggregated form. It detects various marketing
strengths and weaknesses. Computer assisted sales
analysis uncovers significant details for management
needs.

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Cost Analysis-The cost analysis is possible
with the effective accounting system. The
classification and analysis of the cost of
production, cost of distribution and selling may
provide adequate information for the
management purposes .
Financial Records- The financial records &
publications may provide adequate
opportunities for management of sales &
marketing activities .Many companies prepare
periodical final statement to observe the
balance of each item of financial records.
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 Conclusion
Marketing information system is an important
factor in a growing business today with
increased competition and environmental
changes affecting the consumer world . It is the
marketing information system that makes or
unmakes any organization in the perspective of
marketing strategy .Marketing information
system very aptly called as life blood of
marketing.
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