By :- Harsh Vilas Kotecha

K. K. Wagh College OF ABM, Nashik.

Leture No :- 1 & 2

Market Information
Meaning :-
Marketing information system includes all the facts and information which is used in making
marketing decisions and which will affect the marketing operation of the enterprise. Information
as such is needed by every department of the enterprise. But the informational need of the
marketing department is different from that of other departments.

This is because marketing information is more concerned with outside activities which are
dynamic and diverse. The information to be collected from the market is fast changing and
complex. As against this, other departments are more concerned with the information within the
organisation. Thus, marketing information includes all information on which market decisions
are based.

According to Cundiff Still and Govani, “Market Information is an organised set of proce dures,
information handling, routines and reporting techniques designed to pro vide information
required for making marketing decisions.”

According to K. Cox and K. Gonad, “MIS is a set of produces and methods for the regular and
planned collection, analysis and presentation of information in making marketing decisions.”

Thus, “marketing information system is a set of procedure used for collect ing information and
analyse it for the purpose of making marketing decisions” . These marketing decisions have far
reaching effect on the marketing activities of the organisation.

Need For Market Information :-

The need for information is felt by every enterprise. This is because business unit operates in
unpredictable and complex environment. For the purpose of survival, they have to continuously
adapt themselves to the change in the environment. This can be done when they have the
information about the changes taking place. Marketing department are also highly exposed to the
continuous change in the markets. As a result, marketing information becomes essential for
them.
The need for the marketing information arises because of the following reasons:
1. Knowledge about Consumers:

In today’s consumer centric marketing approach, no company can survive without clear
knowledge of the consumer. Since consumers have to be served, their needs, wants, likings, dis-
likings, etc. are very important for the company. Without this knowledge company cannot serve
its markets. At the same time, consumers’ taste and preferences are constantly changing, about
which company should have perfect knowledge only then it can adapt itself to the changes and
survive.

2. Changing Economic Environment:

Business units are highly exposed to market forces and economic variables like size of the
population, national income, per capita income, flow of money, price-level, economic policies,
By :- Harsh Vilas Kotecha
K. K. Wagh College OF ABM, Nashik.
economic growth rate, demand and supply position in the economy, etc. They have to operate in
an environment where economic conditions are constantly changing. This can be done only with
the help of relevant and updated information on economic data.

3. Knowledge about Technology:

Technology forms the base for the production activities. Firms carry out large scale production
with the use of technology only which provide a competitive edge to the firm over its
competitors. Firm can bring improvement in its quality of product, cost of production and price
level through the use of new and latest technology. This is possible when firm keeps pace with
technological changes and continuously adapt itself to it. Marketing information pertaining to
marketing innovation and technological development should be there with the firm.

4. Market Information:

Firms have to keep themselves abreast with the marketing environment. For this, they should
have updated and accurate information about the observation made in newspapers and
magazines, trade fairs and exhibition, observation made by the intermediaries like dealers,
distributors, retailers, salesman, census data, trade association data, etc. Through this they can
know what is happening around and thus keep themselves updated with the changes.

5. Knowledge about Competitive Conditions:

Markets today are characterised by high degree of competition and more number of competitors.
Business units compete with each other by superior marketing policies and strategies. Those
firms are successful who keep a close watch on the degree of competition, competitors’
changing strategies, etc. This is possible through relevant, authentic and latest information about
the competitive environment.

6. Gap between Producer and Consumer:

Modern marketing has increased the gap between producer and consumer. Greater distance
between the two, creates communication gap and thereby problems. It is very essential that both
producer and consumer understand each other, only then healthy relationship will develop. This
is possible when there is perfect two-way flow of information between producer and consumer.

Lecture No :- 3 & 4.
By :- Harsh Vilas Kotecha
K. K. Wagh College OF ABM, Nashik.
Merits Of Market Information.
1. Prediction of Consumer Demand

Predicting customer demand in expanding the market acts as a base for mass production and
mass distribution of products or services. An organizational marketing approach helps to get
up-to-date information on customer preferences. In today’s ever-changing and competitive
economic environment; the taste, liking of customers, preferences, etc. are continuously
changing. Due to this, marketers need to have precise information related to the nature and
size of customer demand. The decisions based on intuition or outdated customer
information may not be effective. So, the decisions must be backed up by facts and figures.

For example, the proper marketing information system provides information regarding the
future tastes and preferences of the customers, the trends of market, and information
regarding the reasons for changes in tastes and preferences. Such information helps the
marketers to overcome the loss that occurs due to the changes in demands.
2. Identification of Marketing Complexity

By :- Harsh Vilas Kotecha

K. K. Wagh College OF ABM, Nashik.
The process of the modern marketing concept results in complexity and a more detailed
version of marketing. Market expansions and marketing activities at multinational levels are
growing at a fast rate that demands appropriate market intelligence and a well- organized
form of information system. So, it is necessary to identify the complex market nature and its
demand.

For example, marketing is a wide branch which has several concepts under it. A proper
knowledge of these concepts is very important to understand the complexities of marketing
which can only be gained by proper marketing information system.
3. Facilitates up-to-date Economic Information or Condition

By :- Harsh Vilas Kotecha

K. K. Wagh College OF ABM, Nashik.
The constant change in demand and supply forces determines the cost and market
conditions. There is a huge intensity of fluctuation in demand, supply, and prices in a large
and complex economy.

Marketing people require up-to-date and advanced information related to changing supply,
demand, and cost-related economic conditions. For this, they depend upon market reports
and market-related intelligence services. Future forecasting or prediction is based on
economic factors like the country’s population, income, GDP, price, etc.

For example, If a marketer has zero knowledge about the economic conditions prevailing in
the area, the business will face losses. To avoid this, a detailed knowledge of the economic
scenario is required which can be gained by the study of marketing information systems.
4. Competitor Analysis

Organizations run in a highly competitive environment where different competitors

formulate strategies to gain competitive advantage on each other. To predict competitor’s
behavior and to surpass the competition, services of the marketing information system of
marketing intelligence are required. For survival, marketing people need the latest
information on the market that is related to the nature and size of the competition.

For example, accurate information regarding competitors helps the marketers to form such
plans and strategies that will help them to design the products and services as per the needs
and satisfaction of customers which will ultimately increase the sales.
5. Up-to-date Information on Technology

By :- Harsh Vilas Kotecha

K. K. Wagh College OF ABM, Nashik.
Market expansion leads to technological advancements. Marketing people require the latest
information related to technical aspects or developments. Different products, technologies,
process, etc. that are new, need to be based upon facts. The marketing information system
provides such necessary information or facts.

For example, With the ever-growing technologies, the business has to get well versed with the
changing environment to excel in every field. A proper survey is required which can only be
fulfilled with the help of the marketing information system.
6. Proper flow of Information for better Customer Service

In the market expansion stage, a communication gap can be found between customers and
marketers. This gap results in marketing activities and plans that may be unrealistic.
Different marketers, who are not connected with marketing aspects daily, create
dissatisfaction in consumers.

An increase in consumer complaints shows the mismatch of products with the needs and
wants of consumers. Also, it indicates that marketers don’t have the latest information on the
right consumer demand. The marketing information system which is up-to-date can fulfill
By :- Harsh Vilas Kotecha
K. K. Wagh College OF ABM, Nashik.
the communication gap between consumers and marketers by providing the latest
information related to consumer demands and behavior.

For example, the ultimate goal of any business is customers’ satisfaction. If any business fails
to achieve this goal, it will no longer survive in this competitive world. For this, a complete
survey is required and a proper flow of information for better customer services. This can
only be done by proper marketing information system.
7. Facilitates Marketing Planning Activities

Today’s business era is planning and process-oriented. The plans and processes depend on
the information provided through economic forecasts and marketing forecasts as these offer
desired information related to the futuristic aspect of the economic and market conditions.

For example, forecast related to sales provides the information required for planning
production, marketing, and financial activities. Similarly, the marketing information system
provides forecasts related to the market and can inter-related product and consumer
requirements to balance supply and demand.

By :- Harsh Vilas Kotecha

K. K. Wagh College OF ABM, Nashik.
 Lecture No:- 5 & 6.

Importance Of Market Information.

Marketing information includes all the date, in terms of facts, opinions, views, guidelines and
policies, which are necessary to make vital marketing decisions. The data is collected from customers,
competitors, company sales force and other staff, government sources, specialized agencies and
sources.
MIS provides relevant, reliable and required information in respect of business environment-both
internal and external environments. Such information is vital for successful decision making.

The following are the benefits or advantages of MIS;

1. Helps to recognize trends: - MIS helps managers to recognize marketing trends. The changing
trends may be in respect of prices, product design, packaging, promotion schemes, etc. managers can
take effective decisions in respect of prices, product designs, etc., in response to changing trends in
the environment.

2. Facilitates Marketing Planning and Control: -Effective market planning is required in terms of
product planning, pricing, promotion and distribution. Such planning will be possible only f the
company is possessing adequate and relevant information.

3. Quick supply of information: -A firm has to take quick decision for this purpose; it requires fast
flow of information which is facilitated by a properly designed MIS. Due to timely supply of
marketing information, the marketing managers can make quick and effective decisions.

4. Quality of decision Making: -in every aspect of marketing, there is need to make constant and
correct decisions. A properly designed marketing information system promptly supplies reliable and
relevant information. With the help of computers and other data processing equipments, the marketing
managers can make the right decisions at the right time.

5. Tapping of business Opportunities: -There are number of business opportunities which have
remained untapped for various reasons are due to unavailability of sufficient information. MIS makes
it possible to tap business opportunities as it can supply required and reliable data.

6. Provides Marketing Intelligence: -Marketing intelligence refers to information of the events that
are happening in the external environment, i.e., changes in customer tastes, expectations, competitors’
strategies, government policies, international environment, etc. with the help of MIS specialists, it is
possible to collect marketing intelligence which is vital to make effective marketing decisions.

7. Help managers to Recognize Change: -a business firm may be handling or marketing a wrong line
of products. As such the company will not be able to make profits. And if it is does, profits may not
be adequate. A firm which is well equipped with MIS will be able to realize the need to change the
line of business.

8. Integration of Information: -firms, which are largely decentralized can gather information which
is scattered at many centers or departments and integrate it for effective decision making. Such
integration is possible if there is a centralized MIS.
By :- Harsh Vilas Kotecha
K. K. Wagh College OF ABM, Nashik.
By :- Harsh Vilas Kotecha
K. K. Wagh College OF ABM, Nashik.