Various kinds of market-related data and information are required for making any decision to win competitors in the market. In today’s information-based society, companies with superior information enjoy a competitive advantage. The company can choose its markets better, develop better offerings, and execute better marketing planning. Every firm must organize and distribute a continuous flow of information to its marketing managers. Companies study their managers’ information needs and design marketing information systems (MkIS) to meet these needs. To gather the required information in the market, MkIS is more popular and practicable now.
Marketing Information System (MkIS) is the mechanism established for providing decision-making data and information to marketing planners or marketers. It delivers a continuous flow of information about marketing activities. It is an integrated system, which helps marketers by providing information-support for marketing decision-making. MkIS is an ongoing organizational process that includes the activities such as the collection of information, sorting, analysis, evaluation, and dissemination of information to the marketing decision-makers. It provides needed data on time and accurately by detailed processing and analysis.
The marketing information system is an ongoing organized procedure to generate, analyze, disseminate, store, and retrieve information for use in making marketing is the major tool for scanning and monitoring the marketing environmental forces.
The marketing information system is a system in which marketing data is formally gathered, stored, analyzed, and distributed to managers in accordance with their informational needs on a regular basis. – Jobber
A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision-makers. – Philip Kotler
The marketing information system is an ongoing, organized procedure to generate, analyze, disseminate, store, and retrieve information for, use in making marketing decisions. -W. J. Stanton
In conclusion, a marketing information system is a mechanism in which marketing data is formally gathered, stored, analyzed, and distributed to managers in accordance with their informational needs on a regular basis. It is a system that analyzes and assesses marketing information, gathered continuously from sources inside and outside an organization. Furthermore, it is a set of procedures and methods for the regular, planned collection, analysis, and presentation of information for use in making marketing decisions. Men, equipment, procedures are orderly used for taking marketing decisions in it. The marketing information system should be able to give the regular reports, up-to-date information and find the trend.
Characteristics/ Features of MkIS
1. Continuous process
The important function of a marketing information system is to collect necessary information, select, analyze, review and evaluate them for taking the proper decision and controlling. This function goes on regularly. The business organization seeks information until its existence. So, a marketing information system is a continuous process.
The marketing information system is the mechanism established with the core motive of providing needed, timely and accurate information to marketing decision-makers, the information is updated and timely. The marketing information system provides the right information to the right people at right time.
3. Interrelated components
The marketing information system is made of several components. Marketing research, marketing intelligence system, internal record system, and decision support system are the components of MkIS. The components have an important role to make the information complete, reliable, and updated.
4. Form up of people
MkIS is made Of people from different sectors. It collects information from experts, marketing intermediaries, suppliers, employees, managers etc. They are directly related to or source for providing vital information about the market and environment.
5. Accuracy, reliability, and completeness
MkIS provides accurate, reliable, and complete information for taking rational and quick decisions. Such type of information is compulsory in the competitive business environment. Proper and adequate analysis and evaluation from different components Of MkIS make the information complete.
Importance of MKIS
Three developments make the need for marketing information greater now than at any time in the past: the rise of global marketing, the new emphasis on buyers’ wants, and the trend toward non-price competition. Marketing information system has become very important in the current marketing decision process due to the following factors:
1. Supply information
A marketing information system collects data and information from past and present. Through marketing information systems, marketing organizations have the details of people and the situations. MkIS thus updates the organization about the people and their requirements. This prevents information gap between several parties of the environment. MkIS bridges the present with a possible future with information.
2. Market Coverage
MkIS provides information from all sectors regarding all aspects, This helps marketers to find out the possible markets and the competitors thereon. So MkIS provides appropriate information to find out the market, develop products, and enter the market. This helps marketers to cover the market and extend the market share.
3. Want creation and delivery
If one is well informed about the condition, he/she can easily cope with that condition. MKIS delivers detailed information about the environment. So, the organization can convert every social or environmental challenge into an opportunity. They can create the need according to the environment and similarly make timely delivery. They flow the information about the need for goods and services.
4. Non-price competition
Price competition leads to price cuts and its ultimate result is the severe (extreme) loss to marketing organizations, Therefore, non-price competition is highly preferred. Non-price competition is not possible without the information on consumers’ awareness, attitudes, and likes and dislikes. MKIS is important because it provides information about people’s awareness, attitude, and likes/dislikes. Marketers can make proper segmentation regarding psychographic and behavioral variables to differentiate themselves from competitors than the price competition.
5. Environmental monitoring and scanning
Marketing exists in the environment; they get the input from the environment, process it through environmental factors, and finally deliver the result or output to the environment. The most threatening aspect of the environment is “it is dynamic”, i.e. the environment keeps changing. So, a good manager must be able to update with environmental changes. Marketing information system helps marketing organization to monitor and scan the environment by providing valuable data and information.
6. Market planning
Planning is a trap laid down to capture the future successfully, Planning requires a huge amount of data and information. In fact, planning is made on the basis of data and information. A marketing organization has to make several plans before entering the market. MKIS collect, sort, analyze, evaluate and disseminate the information to the market planners. So, MKIS is important to make an effective plan or to succeed in a market.
7. Marketing program formulation and implementation
Marketing is concerned with several factors such as production, ad, pricing distribution, etc. All these programs cannot be formulated in the absence of data and information. A marketing organization should have information on the need of people to produce any product. They should have the information of communication accessibility, the purchasing power of people, and the development of physical infrastructure of the country for advertising, pricing, and distribution respectively. MkIS provides all this information. So, the market organizations can effectively formulate market programs and implement them successfully.
8. Evaluation and control
Planning is looking forward, whereas control is looking back. A good marketing organization should take corrective measures, i.e. controlling on time. For controlling marketing organization should have the information of actual performance to compare it with the plan or standard performance. Marketing information system equips the marketing organization with the required data and information.