PAGULAYAN, BLAIRE NADINE P.

LIVING IN THE IT ERA

BSA 2-5 DECEMBER 13, 2020

Review Questions:
1. Name the four components of an MIS.

- The four components of MIS or Marketing Information Systems are the Internal Report
System, Marketing Research System, Marketing Intelligence System, and Marketing
Models.

- The Internal Report System provides reliable internal or inside information of the
company. These records provide current information about sales, costs, inventories, cash
flows and account receivable and payable. Many companies maintain their computerized
internal records. Inside records help marketing managers to gain faster access to reliable
information.

- The Marketing Research System is used to solve specific marketing problems of the
company. It collects information from external sources. Marketing research is conducted
to solve specific marketing problems of the company. It collects data about the problem.
This data is tabulated, analyzed and conclusions are drawn. Then the recommendations
are given for solving the problem. Marketing research also provides information to the
marketing managers. However, this information is specific information. It can be used
only for a particular purpose. MIS and MR are not substitute of each other. The scope of
MIS is very wide. It includes ‘MR’. However, the scope of MR is very narrow.

- The Marketing Intelligence System collects information from the external sources. It
provides information about current marketing-environment and changing conditions in
the market. This information can be easily gathered from external sources like;
magazines, trade journals, commercial press, so on. This information cannot be collected
from the Annual Reports of the Trade Association and Chambers of Commerce, Annual
Report of Companies, etc.

- The Marketing Models are the means of interpreting information in order to give
direction to a decision. These models may be computerized or not. It is also called the
“Marketing Decision Support System” which are the tools that help the marketing
managers to analyze data and to take better marketing decisions. They include hardware,
i.e. computer and software programs. Computer helps the marketing manager to analyze
the marketing information. It also helps them to take better decisions. In fact, today
marketing managers cannot work without computers. There are many software programs,
which help the marketing manager to do market segmentation, price fixing, advertising
budgets, etc.
2. What were the functions of management that Henry Fayol identified?

- Henri Fayol was one of the first theorists to identify the functions of management.
According to his book “Administration Industrielle et Generale”, which was published in
1916, there are five functions of management, on which he labeled: planning, organizing,
commanding/deciding, coordinating and controlling.

- According to Fayol, managers must plan for future conditions, develop strategic
objectives and secure the achievement of future goals. Therefore, managers must evaluate
future contingencies affecting the organization, and shape the future operational and
strategic landscape of the company.

- Managers must organize the workforce in an efficient manner and structure and align the
activities of the organization. Managers must also train and recruit the right people for the
job, and always secure a sufficiently skilled and educated workforce.

- Managers must coordinate or harmonize the procedures and activities performed by the
company, meaning that every activity of each organizational unit should complement and
enrich the work of another.

- Commanding managers must supervise subordinates in their daily work, and inspire them
to achieve company goals. Likewise, it is the responsibility of managers to communicate
company goals and policies to subordinates. The commanding of subordinates should
always be consistent with company policies, and every manager should treat subordinates
in line with the standards of the company.

- Managers must control the company activities that are in line with general company
policies and objectives. It is also the responsibility of the manager to observe and report
deviations from plans and objectives, and to make initiatives to correct potential
deviations.

3. What is stochastic model?

- Stochastic modeling is a form of financial model that is used to help make investment
decisions. This type of modeling forecasts the probability of various outcomes under
different conditions, using random variables. Stochastic modeling presents data and
predicts outcomes that account for certain levels of unpredictability or randomness.

4. What are the 3 levels of decision making outlined in this chapter?

- The three levels of decision making that was outlined in this chapter are strategic, control
(or tactical) and operational. Strategic decisions are characteristically one-off situations.
Strategic decisions have implications for changing the structure of an organization and
therefore the MIS must provide information which is precise and accurate. Control
decisions deal with broad policy issues and operational decisions concern the
management of the organization's marketing mix.
6. According to Kotler, what are the contributing elements to an MIS?

- As Kotler’s definition says, a Marketing Information System is more than just a system
of data collection or a set of information technologies. For him, it is a continuing and
interacting structure of people, equipment and procedures to gather, sort, analyze,
evaluate, and distribute pertinent, timely and accurate information for use by marketing
decision makers to improve their marketing planning, implementation, and control. The
contributing elements to the MIS, as he mentioned, are Marketing Environment, Internal
Report Systems, Marketing Research Systems, Marketing Intelligence Systems,
Marketing Models, Strategic Decisions, Control Decisions, and Operational Decisions.

7. Which elements of the marketing environment are mentioned in the chapter?

- As mentioned in this chapter, for Kotler, markets, channels, competitors, political, legal,
economy, and technology are the elements of the marketing environment.

8. What differences are there between marketing research and marketing intelligence?

- Marketing research is a proactive search for information. That is, the enterprise which
commissions these studies does so to solve a perceived marketing problem. In many
cases, data is collected in a purposeful way to address a well-defined problem. While the
marketing research is focused, marketing intelligence is not. A marketing intelligence
system is a set of procedures and data sources used by marketing managers to sift
information from the environment that they can use in their decision making.

- The main difference between marketing intelligence and marketing research is that the
latter is more company-specific. Marketing intelligence is existing information that
small-business owners use to study markets, competition, political implications and
consumer demographic variables. Marketing research data is not readily available.
Companies usually use phone, Internet or in-person surveys to garner marketing research
data. Marketers use both types of information to analyze their business situations and
develop marketing strategies.