Marketing Information System

(b) A set of procedures and methods for collecting, analyzing, and distributing marketing information

An MIS is a continuous, organised system — people, equipment and procedures — that gathers data from internal records, marketing intelligence and research, analyses it, and supplies timely, relevant information to marketing managers for decision-making. It is not limited to financial transactions (a), nor is it only advertising software (c), and it supports rather than replaces marketing research (d).

A Marketing Information System (MIS) is a set of people, equipment and procedures used to gather, sort, analyse, evaluate and distribute timely and accurate information to marketing decision makers. Its major components are:

1. Internal Records (Internal Reporting System) This is the information collected from sources inside the firm itself — sales records, order and shipping data, inventory levels, accounts receivable, and reports from the sales force. It is the quickest and cheapest source of information. For example, a firm can track which product is selling fastest in which region from its own sales invoices. Its limitation is that it gives only past data and may be incomplete.

2. Marketing Intelligence System This is the set of procedures and sources used to obtain everyday information about developments in the marketing environment. Information comes from salespeople, dealers and distributors, trade magazines, newspapers, government publications, competitors' annual reports, and even customers themselves. It keeps the firm alert about competitor moves, changing customer tastes and new market trends.

3. Marketing Research Marketing research is the systematic design, collection, analysis and reporting of data relevant to a specific marketing problem facing the firm. It is conducted when the firm needs information on a particular issue — for example, why sales of a product have fallen, whether a new product will be accepted, or what price customers are willing to pay. It uses methods such as surveys, interviews, observation and experiments. Unlike internal records, it is problem-specific and forward-looking.

4. Marketing Decision Support System (MDSS) This consists of data, tools (statistical techniques and models) and hardware/software that help marketing managers analyse information and take better decisions. Tools like regression analysis, trend analysis, break-even models and sales forecasting models are used. It converts raw data into meaningful information for planning and control.

Conclusion These four components together form a complete MIS. Internal records and marketing intelligence supply the data, marketing research provides problem-specific information, and the decision support system helps managers use that information to make effective marketing decisions.

Distinction between Marketing Information System (MIS) and Marketing Research

Conclusion: MIS is a regular, broad information system for continuous decision-making, whereas marketing research is a specific, time-bound study conducted to solve a particular marketing problem.

Marketing Information System (MIS) is a set of procedures, people, equipment and methods used to collect, record, analyse, store and distribute timely, accurate and relevant information to marketing managers so that they can take effective marketing decisions. In the words of Kotler and Armstrong, "A marketing information system consists of people, equipment and procedures to gather, sort, analyse, evaluate and distribute needed, timely and accurate information to marketing decision makers."

An MIS has four main components: (i) Internal records — sales reports, inventory data, cost figures; (ii) Marketing intelligence — everyday information about competitors and the market environment; (iii) Marketing research — systematic study of specific marketing problems; and (iv) Marketing decision support system — tools and techniques for analysing data.

Importance of MIS in marketing decision-making:

1. Basis for planning and decision-making. MIS supplies the facts on which plans and strategies are built. For example, a noodle company using internal sales records finds demand rising in Pokhara; it decides to open a depot there.

2. Understanding customer needs and behaviour. Through surveys and feedback, MIS reveals what customers want. For example, a bank learns from customer feedback that people prefer mobile banking, so it launches a mobile app.

3. Market opportunity and threat analysis. Intelligence about competitors helps a firm act in time. For example, when a competitor launches a cheaper soap, the firm learns of it early and revises its price or offer.

4. Effective market segmentation and targeting. Sales data by region, age and income help the firm divide the market and target the right group. For example, a shoe company learns that young buyers prefer sports shoes and launches a new sports line.

5. Product and pricing decisions. Information on cost, demand and competitor prices supports decisions on new products, quality and price. For example, a dairy firm finds rising demand for curd and introduces a new curd pack.

6. Better distribution and promotion decisions. MIS shows which channels and media work best. For example, a telecom company finds most customers respond to Facebook ads, so it shifts its advertising budget there.

7. Forecasting and controlling. Past and current data help forecast sales and compare actual with target performance. For example, a retailer uses last year's Dashain sales data to set this year's stock and sales targets.

8. Reduces risk and uncertainty. Reliable and timely information lowers the risk of wrong decisions and avoids losses from guesswork.

9. Coordination among departments. A common information system keeps production, finance and marketing departments working with the same data, avoiding conflict.

10. Competitive advantage. Firms with a strong MIS respond faster to market changes and stay ahead of rivals.

Conclusion. MIS is the backbone of marketing decision-making. It converts scattered data into useful information, so decisions on product, price, place and promotion are based on facts rather than guesses. In today's competitive market, an efficient MIS is essential for the survival and growth of every business firm.

1. Systematic and continuous: an MIS is an organized system that collects, processes and reports marketing information on a regular, ongoing basis.
2. Decision-oriented: it supplies timely, accurate and relevant information that managers use for planning, control and decision making.

The internal records system is the part of a marketing information system that uses information already generated inside the firm. It draws on the company's own records such as orders received, sales, prices, inventory levels, receivables and payables, and costs. Managers use these records to spot opportunities and problems, track sales performance and make quick decisions. Its main advantage is that the data is cheap, quick and easy to obtain.

Importance of the marketing intelligence system

Marketing intelligence is the everyday gathering and analysis of publicly available information about competitors, customers and the market environment. Its importance:

1. Early warning: it alerts the firm to competitors' new products, price changes and promotions.
2. Spotting opportunities and threats: it reveals changes in customer taste, technology, laws and the economy.
3. Better decisions: managers get current information for planning and strategy.
4. Competitive advantage: knowing rivals' strengths and weaknesses lets the firm position itself better.
5. Low cost: the information comes from sources such as salespeople, dealers, newspapers, the internet and trade fairs.

OR: Process of marketing research

1. Define the problem and objectives: state clearly what must be found out.
2. Develop the research plan: decide the data sources, research approach (survey, observation, experiment), sampling method and budget.
3. Collect the data: gather primary data (questionnaires, interviews) or secondary data (reports, records).
4. Analyse the data: edit, tabulate and interpret the data to find meaning.
5. Present the findings: prepare a report with conclusions and recommendations for management, which then acts on them and reviews the result.