THE PEOPLE’S UNIVERSITY OF

BANGLADESH

SEMESTER: 7th
BATCH: 30th

Course Teacher Name: RUMMANA MALLIK

Subject Title: MARKETING MANAGEMENT

Student Name:MD.TARIQUL ISLAM

Roll No:54
Marketing information system
A marketing information system (MKIS) is
a management information system (MIS) designed
to support marketing decision making. Jobber (2007)
defines it as a "system in which marketing data is
formally gathered, stored, analysed and distributed
to managers in accordance with their informational
needs on a regular basis." In addition, the online
business dictionary defines Marketing Information
System (MKIS) as "a system that analyzes and
assesses marketing information, gathered
continuously from sources inside and outside an
organization or a store."[1] Furthermore, "an overall
Marketing Information System can be defined as a
set structure of procedures and methods for the
regular, planned collection, analysis and
presentation of information for use in making
marketing decisions." (Kotler, at al, 2006)

Overview
Reid and Bojanic(2010) claimed that, " The term
market research informs relatively narrowerly than
Marketing Information System(MkIS) which is altered
from the term management
information systemization. Market research indicates
that information is collected for a specific reason or
project; the major objective is a one-time use. "[2]
"A marketing information system, which continuously
collects the initial, routine and systematic data, is not
only used for one particular topic but is designed for
monitoring the degree of the marketing success to
ensure the achievable of the operation as well."[2]
Importance
Developing an MIS system is becoming extremely
important as the strength of economies rely on
services and to better understand the specific needs
of customers. Kotler, et al. (2006) defined it more
broadly as "people, equipment, and procedures to
gather, sort, analyze, evaluate, and distribute
needed, timely, and accurate information to
marketing decision makers."
Insofar as an economy focuses on services,
marketing is important to "monitor the marketing
environment for changes in buyer
behavior competition, technology, economic
conditions, and government policies." In this sense,
the role of marketing is becoming pivotal for an
organization to "adapt to changes in the market
environment." (Harmon, 2003)
As an economy relies on the acquisition of
knowledge, MkIS systems are necessary to be able
to define and differentiate the value proposition that
one organization provides with respect to another,
as well as to define their competitive advantage.
(Harmon, 2003)
The main benefit of MkIS systems is to integrate
market-monitoring systems with strategy
development and the strategic implementation of
policies and processes that help capture and act
on customer management applications with
marketing decision support systems. This area
constitute Marketing intelligence that supports the
analysis and market based activities that support
customer relations and customer service with real
time information with real time applications that
support market based approaches.
Relevance of MkIS
Shajahan and arya(2004) stated that, "Demands for
the MkIS can be expressed by three crucial
developments. Firstly, when companies expand and
diversify into new markets, both the companies and
customer's point of view are needed to be handled
by the marketing managers. Therefore, there would
be greater need for marketing information. Secondly,
when consumers obtain an increment in the level of
their income, it causes a tendency for them to be
more discriminating during the purchasing
procedure. A full awareness of the points that drive a
consumer prefer a brand and the points that
distinguished his brand from that of the rivals should
be obtained by the marketers. This awareness is
possible only with the help of a well- designed
effective MkIS. Thirdly, the development of the
markets and the movement from price to non-price
grounds of competition lead to an increase in the
importance of adoption and implementation by the
competitors and finding the response of the
consumers towards them. Analyzing the needs for
MkIS from a third person's angle, three more factors
come to the forefront viz., the information explosion,
increasing complexity in decision making and the
technological developments. "
Marketing Research(MR)and MkIS
In addition, "Great demand of information gathering
for marketing decisions results in the need of
attention by themselves. Though marketing research
information can be generated by studies, which are
normally conducted in the market place whereas
marketing information systems are designed to
gather, integrate, process and distribute marketing
information comprehensively from all sources,
including that from marketing research. The
contrasting characteristics of MkIS and MR are
presented in Table 5.1 as shown below:
Table 5.1 Showing contrasting characteristic of
MR and MkIS
Marketing Information
Marketing Research
System
1.Emphasis is on handling 1.It handles both internal
external information and external data.
2. It is concerned with
2.It is concerned with
preventing as well as
solving problems.
solving problems.
3.It operates in a 3.It operates
fragmented fashion – on a continuously as a
project-to-project basis. system.
4.It tends to focus on past 4.It tends to be future
information. oriented.
5.It is a source of input for 5.It includes other
marketing information subsystems besides
system. marketing research.
The business function of marketing is concerned
more with the planning, promotion and sale of
products in existing markets and the development of
new products and new markets. Thus marketing
performs a vital function in the operation of a
business enterprise. Business firms who turned to
computers have been able to perform vital marketing
function effectively for organizations' growth in the
face of global competition.
Main Structure
According to Robert Jamon (2003), MkIS systems
are composed on four components: (1) user
interfaces, (2) application software, (3) databases,
and (4) system support. The following is a
description of each one of these components:
1. User interfaces. The essential element of the
MAkINAS is the managers who will use the
system and the interface they need to effectively
analyze and use marketing information. The
design of the system will depend on what type of
decision managers need to make.
2. Application software. These are the programs
that marketing decision makers , use to collect,
analyze, and manage data for the purpose of
developing the information necessary for
marketing decisions.
3. Database marketing. A marketing database is
a system in which marketing data files are
organized and stored.
4. System support. This component consists of
system managers who manage and maintain the
system assets including software and hardware
network, monitor its activities and ensure
compliance with organizational policies.
Along with these components, MkIS
systems include Marketing Decision
Support Systems (MDSS), which in turn rely
on simple systems such as Microsoft
Excel, SPSS, and on-line analytical tools
that help collect data. Data compiled for
analysis is stored and processed from
a data warehouse, which is simply a data
repository system that helps store and
further process data collected internally and
externally. (Harmon, 2003)
Databases
From Pride and Ferrell (2010), "Internal
database is a part of the most marketing
information systems. In addition, it's
relatively convenient for access and retrieve
of information. A databases allow marketers
to tap into an abundance of information
useful in making marketing decisions:
internal sales reports, newspaper articles,
company news releases, government
economic reports, bibliographies, and more,
often accessed through a computer
system."
Internal Data
In with Birn(2004), " internal data is a part of
the data that is needed to be collect and
handled by the marketing information
system. Further more, managers regard this
as a command to make effective
operation.But getting the information that is
really needed from a marketing information
system depends on what the information is
and how it is used. The following internal
operating data are essential:
 Sales data, presented in a graphic format,
can provide regular sales trend
information and highlight whether certain
customer types need to be targeted or
focused.
 Price information by product line,
compare with competitors, can monitor
market trends; analyzed by customer
type, it can check price trends in
customer groups.
 Stock level data and trends in key
accounts or distributors, focusing on
whether different outlets need support,
provide market share information.
 Market support information, coordinating
the effects of marketing promotions,
 through advertising, direct marketing,
trade incentives, consumer competitions
and so on, helps to determine whether
decisions are being made effectively.
 Competitive information, reviewing
competitors' promotions and
communications to see if the company is
doing it better or worse than competitors,
can improve market targeting.
Environmental scanning
Sandhusen(2000) defined that,
environmental scanning is a display of the
nature of MIS processed. " It gives
assistance for the marketers to develop the
strategies, policies, plans and to make
programs and budgets through dealing with
the ongoing information on trends.
Kotler's Model
According to Philip Kotler, the four
components that comprise the MkIS system
are Internal Reports (Records) System,
Marketing Research System, Marketing
Intelligence System, and Marketing
Decision Support System
1.Internal Reports System: It records
various data from different department of a
company, which is regarded as a major
source of information.
2.Marketing Intelligence System: It is a
main source used by managers for gaining
daily information of the external
environment, hence assists the managers
to react to the changing rapidly.
3.Marketing Research System: It is used to
collect primary and secondary data, and
displays the results in forms of reports.
4.Marketing Decision Support System:
Compared to the supply of the data by the
three previous systems, it focuses more on
processing the data.
Advantages , Limitations & Possible Risks
Advantages
Bhasin stated that,"With an increasingly
competitive and expanding market, the
amount of information needed daily by an
organization is profound. So they have to
establish a Marketing Information system.
There are several advantages of Marketing
information systems
 Organized Data collection – MkIS can
help the managers to organize loads of
 data collected from the market, thus
results in an increment in the productivity.
 A broad perspective – With a proper
MkIS in place, the organization can be
tracked which can be used to analyze
independent processes. This helps in
establishing a broader perspective which
helps us know which steps can be taken
to facilitate improvement.
 Storage of Important Data – The
storage of important data is essential in
execution and thus proves again that
MkIS is not important only for information
but also for execution.
 Avoidance of Crisis – The best way to
analyze a stock (share market) is to see
its past performance. Top websites like
moneycontrol thrive on MIS. Similarly MIS
helps you keep tracks of margins and
profits. With an amazing information
system established, an organizations
direction can be analysed and probably
crises averted before they place.
 Co-ordination – Consumer durables and
FMCG companies have huge number of
processes which needs to be co-
ordinated. These companies depend
 completely on MIS for the proper running
of the organization.
 Analysis and Planning – MkIS plays a

crucial role in the planning process,

considering the planning procedure
requires information. For planning, the
first thing which is needed is the
organizations capabilities, then the
business environment and
finallycompetitor analysis. In a proper
MkIS, all these are present by default and
are continuously updated. Therefore,
MkIS is very important for planning and
analysis.
 Control – Just like MkIS can help in a

crisis, in normal times it provides control

as you have information of the various
processes going on and what is
happening across the company."
Possible risks
"Nevertheless, the collection of marketing
information should obey a high-frequent
manner due to the rapid change in the
external market." The possible risks the
business may face if they disobey the
manner according to Bhasin are:
 Opportunities may be missed.
 There may be a lack of awareness of

environmental changes and competitors'

actions.
 Data collection may be difficult to analyze

over several time periods.

 Marketing plans and decisions may not

be properly reviewed.
 Data collection may be disjointed.

 Previous studies may not be stored in an

easy to use format.

 Time lags may result if a new study is

required.
 Actions may be reactionary rather than

anticipatory.
Maintenance, complexity and setting up a
MkIS are one of the major hindrances to
Marketing information systems.
Furthermore, wrong information being fed in
MkIS can become cumbersome and
appropriate filters need to be established.[10]
Limitations
Kotler and Philip have said that "both
primary and secondary researches offer
loads of the data and information needed
for the marketers, whereas the secondary
data sources are relatively superior in quick
provision of data at lower cost.
Simultaneously, a firm cannot find all the
data required by itself, but sometimes can
be done with the help of secondary
research. However, researchers must
assess those data collected from both
primary and secondary data sources to
enable the accuracy, updates and fairness.
Each primary data collection method –
observational, survey, and experimental –
has its own advantages and disadvantages.
Similarly, each of the various research
contact methods – mail, telephone,
personal interview, and online – also has its
own advantages and drawbacks."
Rural Marketing Information System
(RuMIS)
A RuMIS is necessary not only for
corporate organizations engaged in
marketing of agricultural goods and
manufactured goods intended for sales in
rural areas. RuMIS is required also by the
agriculturists and farmers who have
enormous decis!ion-making to do.