In This Article
Introduction
A Marketing Information System (MIS) is a set of procedures and methods designed to generate, analyze, disseminate, and store anticipated marketing decision information on a regular, continuous basis. It provides managers with the information they need to make informed marketing decisions.
According to Philip Kotler, 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.
Components of a Marketing Information System
1. Internal Records System
Information gathered from sources within the organization.
- Sales data: Orders, invoices, sales reports by product/region/customer
- Financial data: Costs, revenues, profitability analysis
- Customer data: Purchase history, preferences, complaints
- Inventory data: Stock levels, turnover rates
- Production data: Capacity, efficiency metrics
2. Marketing Intelligence System
Procedures and sources used to obtain everyday information about developments in the marketing environment.
- Competitor monitoring: Tracking competitor activities, pricing, products
- Industry publications: Trade journals, industry reports
- Sales force intelligence: Information from field sales teams
- Channel partners: Insights from distributors and retailers
- Online monitoring: Social media, news, review sites
3. Marketing Research System
Systematic design, collection, analysis, and reporting of data relevant to specific marketing situations.
- Primary research: Surveys, focus groups, experiments
- Secondary research: Published reports, databases
- Qualitative research: In-depth interviews, observation
- Quantitative research: Statistical analysis, large-scale surveys
4. Marketing Decision Support System (MDSS)
Coordinated collection of data, systems, tools, and techniques to help marketers analyze data and make decisions.
- Statistical tools: Regression, correlation, forecasting
- Models: Pricing models, market share models
- Optimization tools: Resource allocation, scheduling
- Visualization: Dashboards, reports, charts
| Component | Source | Purpose | Frequency |
|---|---|---|---|
| Internal Records | Inside company | Track performance | Continuous |
| Marketing Intelligence | External environment | Monitor market | Ongoing |
| Marketing Research | Primary/Secondary | Solve specific problems | As needed |
| Decision Support | All sources | Aid decision-making | On-demand |
The MIS Process
Step 1: Assessing Information Needs
Identify what information marketing managers need to make decisions.
- What decisions do you make regularly?
- What information do you need to make these decisions?
- What information do you currently get vs. what you want?
Step 2: Developing Information
Gather the required information from appropriate sources.
Step 3: Distributing Information
Deliver information to the right managers at the right time in the right format.
Step 4: Using Information
Apply information to marketing decisions and actions.
Benefits and Challenges
Benefits of MIS
- Better and faster decision-making
- Early warning of market changes
- Competitive advantage through insights
- Reduced uncertainty and risk
- More efficient resource allocation
- Improved customer understanding
Challenges
- Cost of implementation and maintenance
- Data quality and accuracy issues
- Information overload
- Resistance to data-driven decisions
- Privacy and security concerns
Conclusion
Key Takeaways
- MIS provides systematic information for marketing decisions
- Four components: Internal Records, Intelligence, Research, Decision Support
- Internal records come from within; intelligence monitors external environment
- Marketing research addresses specific problems
- Decision support systems help analyze data and make decisions
- Effective MIS provides competitive advantage through better insights
- Challenges include cost, data quality, and information overload
Special Thanks to Mr. Kavit Kaul, JBIMS batch of 2009 for sharing his marketing notes.