Fundamental analysis uses publicly available data to gauge the value of a stock or any other security. For example, an investor might perform fundamental analysis on the value of a bond by looking at economic factors such as interest rates and the general state of the economy, and then studying information about the bond’s value. bond issuer, such as potential changes in its credit rating. An information system Marketing What are the characteristics and roles? To learn more about this issue, the following article of Duong Gia Law will provide readers with content related to: “What is a marketing information analysis system? Its content and role”.
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What is a marketing information system?
Marketing Information Systems (MIS) refers to the systematic collection, analysis, interpretation, storage, and dissemination of market information, from both internal and external sources, to individual marketers. on a regular basis, continuously.
Marketing information systems distribute relevant information to marketers who can make effective decisions regarding marketing activities. Pricing, packaging, new product development, distribution, communication, promotion, etc.
All marketing activities work in unison with prevailing conditions both inside and outside the organization, and therefore there are several sources (viz. Internal, Marketing Intelligence, Marketing Research) through which information can be obtained. market related.
Features of a marketing information system
- The marketing system is a process and it happens continuously
- A marketing information system acts as a data bank and facilitates quick decision making by managers.
- The marketing information system operates in a logical and systematic manner and provides the necessary information.
- Marketing information systems are future-oriented. It predicts and prevents problems as well as solves marketing problems. It is both a preventive as well as a curative process in marketing.
- Collected data is processed with the help of operations research techniques. Modem mathematical and statistical tools are available to solve problems in the field of marketing.
- A marketing information system is a computer-based method of collecting, processing, and storing data.
- Management has a steady stream of information on a regular basis – the right information, to the right people, at the right time and at the right cost.
Marketing information systems stand between the marketing environment and the marketing decision maker. Marketing data flows from the environment to the marketing information system. Marketing data is processed by the system and converted into a stream of marketing information, which goes to marketers for decision making.
In the past, most decisions were made on the basis of reports prepared through manual labor. Today, managers, with the help of experts, can use sophisticated mathematical and statistical techniques, such as simulation, attribution modeling, PERT networks, inventory modeling and similar quantitative models to reduce risk when doing business in a marketing information system environment.
They can do this on the basis of updated information retrieved or retrieved from the computer’s database. The computer is now considered an indispensable actuary for effective management decision making. The advent of computers facilitated the establishment of Marketing Decision Support Systems (MDSS).
The system includes the collection, storage, analysis and reporting of marketing data. Marketing information systems are typically centralized, while MDSS is decentralized and allows sales and marketing managers to interact directly with the database.
Decision support systems contain data about the company’s customers, markets, competitors, economic and social conditions, and sales performance. By using personal computers and software, managers can independently retrieve data, analyze and interpret information, and even generate reports to meet individual requirements.
Decision support systems have data from internal and external sources. Many companies go beyond the database by creating large volumes of complex data for their customers to use and use exclusively. Example- Credit card companies have a history of every individual transaction made by each cardholder.
Importance of marketing information systems
Marketing system plays an important role in the operation of every business. Let’s learn in detail about the importance of a Marketing information system.
Anticipate consumer demand
Mass production and mass distribution in ever-expanding markets based on anticipation of consumer demand. Following a customer-driven marketing approach, every marketer needs to have up-to-date knowledge of consumer needs and wants. In a dynamic economy, consumer tastes, fashions and preferences are ever-changing.
Without precise information about the nature, characteristics, and scale of consumer demand, marketers will simply grovel in the dark. Decisions based on hunch, guesswork, intuition, or tradition cannot produce the desired results in the modern economy. They must be supported by facts and figures.
The Complexity of Marketing
The modern marketing process has become much more complex and elaborate. The ever-expanding market and multinational marketing activities require full service market intelligence and organized information systems.
Meaning of economic indicators
The forces of supply and demand are always changing. They determine prices and general market conditions. In a large and complex economy, fluctuations in demand, supply and prices are enormous. Marketers must have up-to-date information on changing trends in supply, demand, and prices.
Meaning of competition
Modern markets are competitive. Modern business is a multifaceted game in which competitors and competitors are constantly trying to build strategies to gain an advantage over each other.
Predicting competitor behavior and outperforming the competition will require the services of marketing intelligence. A marketer cannot survive under sharp competition without up-to-date market information, especially regarding the nature, nature and scale of the competition to be met.
Make a marketing plan
We live in the age of planning and programming. Our plans and programs are based on information provided by economic research (economic forecasting) and marketing research (marketing forecasting), providing essential information about economic and marketing conditions. Future.
For example, sales forecasts form the basis of production plans, marketing plans, financial plans, and budgets. Marketing information alone can relate and coordinate products and user needs.
Components of a marketing information system
The Company may collect information through internal records including sales data, customer databases, product databases, financial data, operational data, etc. Details of the internal data sources are given below:
Information may be gathered from documents such as invoices, transmission copies, payment documents prepared by companies when they receive orders and services from customers, agents or sales representatives. .
Current sales data should be maintained on a regular basis, acting as an assistant of the Marketing Information System. Reports on current sales and inventory levels help management decide on its goals, and marketers can use this information to design their future sales strategy.
Companies maintain several databases such as:
- Customer database – in which complete information about the customer’s name, address, phone number, purchase frequency, financial situation, etc. is saved.
- Product database – in which complete information about product prices, features, variations is stored.
- Salesperson database, in which complete information about salesperson, name, address, phone number, sales target, etc. is saved.
Companies store their data in a data warehouse from which it can be retrieved whenever the need arises. Once the data is stored, statisticians mine it by applying a number of software and computer techniques to convert it into meaningful information providing information and figures.
Smart marketing system
The marketing system provides data about events occurring in the market, i.e. data related to the marketing environment outside the organization. It includes information on changing market trends, competitors’ pricing strategies, changing tastes and preferences of customers, new product launches, competitors’ promotion strategies, etc
To have an effective Marketing System, companies should actively work to improve their marketing information systems by taking the following steps:
Provide appropriate training and motivate sales force to examine market trends i.e. changing tastes and preferences of customers and make suggestions for improvements, if any.
Motivate channel partners. Agents, distributors, retailers are in the physical market to provide relevant and necessary information about customers and competitors.
Companies can also improve their marketing intelligence systems by getting more and more information about their competitors. This can be done by purchasing a competitor’s product, attending trade shows, reading competitors’ published articles in journals, magazines, financial statements, etc. .
Companies can have an effective marketing information system by engaging loyal customers on a customer advisory board who can share their experiences and offer advice to clients. new potential.
Companies can use government data to improve their Marketing Information systems. The data can be related to population trends, demographic characteristics, agricultural production, etc. to help the organization plan marketing activities accordingly.
In addition, companies can purchase information about the marketing environment from research firms that conduct research on all market players.
Marketing research is the collection, organization, analysis and interpretation of primary or secondary data to find solutions to marketing problems. Companies continue to do marketing research to analyze the marketing environment including changes in customer tastes and priorities, competitor strategies, scope of new product launches, etc. Use some statistical tools. To conduct market research, data must be collected which can be primary data (first data) or secondary data (old data, available in books, journals, research reports, journals). solstice, etc.)
Secondary data is publicly available, but primary data will be collected by the researcher through certain methods such as questionnaires, personal interviews, surveys, seminars, etc.
A marketing study contributes a lot in marketing information systems because it provides factual data that has been tested many times by researchers.
Marketing decision support system
It includes a number of software programs that marketers can use to analyze data, collected to date, to make better marketing decisions. Using a computer, the mark manager can save huge data in the form of a table and can apply statistical programs to analyze the data and make decisions in accordance with the research results.
Therefore, marketers need to examine the marketing environment, i.e. both inside (inside the organization) and outside (outside the organization, to be able to design appropriate marketing policies, procedures, and strategies). .
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