Marketing Information system (MIS)

Definition
1:A marketing information system is a management information system designed to support marketing decision making.

2:A marketing information system is the system or way in which marketing information is formay gathered! stored! anaysed and then it
is distri"uted to managers in accord with their informationa needs on a reguar "asis. It is aso a proceeding and interacting structure of
peope! procedures and e#uipment to gather! anay$e! sort and e%auate information for used "y the marketers.
&:A system that anay$es and assesses marketing information! gathered continuousy from sources inside and outside an organi$ation.
'imey marketing information pro%ides "asis for decisions such as product de%eopment or impro%ement! pricing! packaging!
distri"ution! media seection! and promotion. See aso market information system.
(:According to Donad )o* and +o"ert ,ood!
-An MIS may "e defined as a set of procedures and methods for the reguar! panned coection! anaysis! and presentation of information
for use in making marketing decisions. 'his of course is a step "eyond ogistics systems! which hande in%entory contro! orders! and so
forth..
'his definition of Marketing Information System (MIS) is referred from a 1/&0 cassic paper tited -1ow to "uid a Marketing
Information System!. written "y Donad 2. )o* and +o"ert 3. ,ood.
4:According to 5rof. Mudit 6atyani!
-MIS is a panned tactic to do anaysis of mainy three system re#uirements %i$.! peope! information! and technoogy. It is re#uired at a
e%es of management in e*ecuting operationa! manageria! and strategic decisions. Its intention is to design the procedures which gi%e a
comprehensi%e report in a timey manner..
5rof. 6atyani7s definition of MIS gi%es a "road co%erage of its o%era concept.
'he diagram of Marketing Information System! i.e. MIS is depicted "eow.
8ow et7s proceed to discuss and understand the meaning of MIS.
Meaning of MIS
Marketing Information System! a""re%iated as MIS! means to coect! anay$e and suppy marketing information to the marketing
managers. 'he marketing managers use this information to take marketing decisions. MIS is a permanent and continuous process.
Marketing information incudes a facts! estimates! opinions! guideines! poicies and other data. 'his information is necessary for taking
marketing decisions. 'his information is coected from "oth interna and e*terna sources. It is coected from customers! competitors!
company saesmen! go%ernment sources! speciai$ed agencies! so on.
MIS coects the marketing information from different sources. 'his information (data) is anay$ed. 'hen! it is suppied to the marketing
managers. 'he marketing managers use this information for taking marketing decisions. MIS aso e%auates and stores the information.
MIS uses modern technoogy for coecting! anay$ing! storing and suppying information.
2eatures of Marketing Information System MIS
'he main characteristics or features of Marketing Information System (MIS):
1.)ontinuous system : MIS is a permanent and continuous system of coecting information. It coects information continuousy.
2.9asic o":ecti%e : 'he "asic o":ecti%e of MIS is to pro%ide the right;information at the right;time to the right;peope to hep them take
right decisions.
Marketing Information system (MIS)
&.)omputer "ased system : MIS is a computer;"ased system. It uses computers for storing! anay$ing and suppying information. It aso
uses micro;fims for storing information. 'herefore! it is %ery #uick and accurate.
(.2uture;oriented : MIS is future;oriented. It pro%ides information for so%ing future pro"ems. It is not past;oriented.
4.<sed "y a e%es : MIS is used "y a three e%es of management! i.e. top! midde and ower. It is used for making marketing pans!
poicies and strategies. 'his is used to so%e marketing pro"ems and to take ad%antage of "usiness opportunities.
=.Sources : MIS coects information from "oth! interna and e*terna sources. 2or e*ampe! information is coected from company
records! pu"ications! etc.
0.)oects marketing information : MIS coects a types of marketing information. It coects information a"out the consumer
competition! marketing en%ironment! go%ernment poicies! etc. It suppies this information to the marketing managers.
>.1eps in decision making : MIS suppies up;to;date and accurate information. It heps marketing managers to take #uick and right
decisions
Marketing Information System (MIS) coects! anayses! and suppies a ot of ree%ant information to the marketing managers. It is a
%aua"e too for panning! impementing and controing the marketing acti%ities.
'he roe of MIS is to identify (find out) what sort of information is re#uired "y the marketing managers. It then coects and anay$es the
information. It suppies this information to the marketing manager at the right time. MIS coects the information through its su"systems.
'hese su"systems are caed components.
'he four main components of Marketing Information System (MIS) are:
1.Interna +ecords!
2.Marketing Inteigence!
&.Marketing +esearch (M+)! and
(.Marketing Decision Support System.
1.Interna records : 'he first component of MIS is ?Interna +ecord7. Marketing managers get ots of information from the interna;
records of the company. 'hese records pro%ide current information a"out saes! costs! in%entories! cash fows and account recei%a"e and
paya"e. Many companies maintain their computeri$ed interna records. Inside records hep marketing managers to gain faster access to
reia"e information.
2.Marketing inteigence :@1.'he second component of MIS is ?Marketing Inteigence7. It coects information from e*terna sources. It
pro%ides information a"out current marketing;en%ironment and changing conditions in the market. 'his information can "e easiy
gathered from e*terna sources ikeA maga$ines! trade :ournas! commercia press! so on. 'his information cannot "e coected from the
Annua +eports of the 'rade Association and )ham"ers of )ommerce! Annua +eport of )ompanies! etc. 'he saesmen7s report aso
contains information a"out market trends.
@2.'he information which is coected from the e*terna sources cannot "e used directy. It must "e first e%auated and arranged in a
proper order. It can "e then used "y the marketing manager for taking decisions and making poicies a"out marketing.
@&.So! marketing inteigence is an important component of MIS.
&.Marketing research : 'he third important component of MIS is ?Marketing +esearch7. M+ is conducted to so%e specific marketing
pro"ems of the company. It coects data a"out the pro"em. 'his data is ta"uated! anay$ed and concusions are drawn. 'hen the
recommendations are gi%en for so%ing the pro"em. Marketing research aso pro%ides information to the marketing managers. 1owe%er!
this information is specific information. It can "e used ony for a particuar purpose. MIS and M+ are not su"stitutes of each other. 'he
scope of MIS is %ery wide. It incudes ?M+7. 1owe%er! the scope of M+ is %ery narrow.
(.Marketing decision support system : 'he fourth component of MIS is ?Marketing Decision Support System7. 'hese are the toos which
hep the marketing managers to anay$e data and to take "etter marketing decisions. 'hey incude hardware! i.e. computer and software
programs. )omputer heps the marketing manager to anay$e the marketing information. It aso heps them to take "etter decisions. In
fact! today marketing managers cannot work without computers. 'here are many software programs! which hep the marketing manager
to do market segmentation! price fi*ing! ad%ertising "udgets! etc.
'he essentias of a good Marketing Information System (MIS) is isted "eow:
1.MIS must "e unified and centrai$ed.
2.It must faciitate decision making.
&.It must pro%ide #uick and accurate information.
(.It must "e economica.
Marketing Information system (MIS)
4.It must "e seecti%e.
=.It must "e future oriented.
0.It must suppy information reguary.
>.It must use new techni#ues.
1.<nified and centrai$ed : MIS must "e unified and centrai$ed. It coects and stores different types of market information. A of this
information must "e unified and centrai$ed. 'hat is! a the marketing information must "e "rought together (unified) and kept at one
centra pace (centrai$ed). So! it must "e at the centra;office. 'his wi resut in easy access and #uick reference. 'he managers wi "e
a"e to find a the re#uired information at one pace.
2.2aciitate decision making : MIS must faciitate decision making. 'hat is! it must guide the marketing managers in decision making. It
must pro%ide re#uired information to the managers to hep in taking decisions. 'his information must "e of a good #uaity. 'hat is! it
must "e ree%ant! reia"e! and up;to;date. 'his wi resut in an accurate decision;making process. So! it must not ony "e a data "ank. It
must pay a positi%e roe in the decision;making process.
&.Buick and accurate information : MIS must pro%ide #uick and accurate information. 'oday! managers ha%e to take #uick;decisions
"ecause the marketing is mo%ing %ery fast. If they donCt take #uickest decisions! then they wi ose many marketing opportunities.
'herefore! it must pro%ide #uick information to the managers. 'his information must aso "e accurate! reguar and continuous. It must "e
a user;oriented one. It must coect! cassify! %erify! store and suppy information #uicky and accuratey.
(.3conomica : MIS must "e economica. 'hat is! it must not "e %ery costy. 'he e*penditure on it must "e minimum. It must not e*ceed
its %aue. It must gi%e ma*imum "enefits to the company at a minimum cost. It wi "e economica ony if it is seecti%e. It must "e
particuar in coecting! anay$ing! storing and suppying information. It must use a minimum num"er of empoyees in its operation. It
must "e economica "ecause it is not directy producti%e. It is a ser%ice and support function.
4.Seecti%e : MIS must "e seecti%e. 'hat is! it must not coect a the market information. It must ony coect ree%ant information. It
must coect information! which is %ery essentia and usefu for decision making. If it is not seecti%e there wi "e a waste of time!
energy! storage space and money.
=.2uture oriented : MIS must "e forward ooking i.e. future;oriented. It must not "e a past;oriented one. It must gi%e more importance to
future;oriented information. It must pro%ide information for so%ing pro"ems! which may come up in the future. 'he company wi "e
successfu if their marketing managers are future;oriented. 'he marketing managers can "e so ony if the MIS is aso future oriented.
0.Suppy information reguary : MIS must suppy information reguary. 'he "usiness en%ironment is changing constanty. So! the
marketing managers ha%e to take marketing decisions continuousy. 'herefore! they re#uire a reguar and continuous fow of market
information. 'his information must "e pro%ided "y MIS. So! it must suppy information reguary to the marketing managers.
>.<se new techni#ues : MIS must use new techni#ues for coecting! anay$ing! storing and suppying information. It must use computers
and micro;fims. It must use new communication techni#ues. It must aso make the use of the Internet and atest software programs.
'hese newer techni#ues wi increase the efficiency and accuracy of MIS. MIS wi aso "ecome more economica "y using new
techni#ues.
MIS gi%es many "enefits to the company. 'he need for MIS is uni%ersay accepted. A company cannot sur%i%e and succeed without
MIS. 'herefore! a companies must ha%e MIS. 1owe%er! the same MIS cannot "e used for a types of companies. 3%ery company must
make its own MIS. It must not copy the MIS of other companies.