Marketing Information System - Essay Example

MARKETING INFORMATION SYSTEMS Introduction Marketing information happens to be very crucial to the marketing process (Jules, 2013 p. 30). Any decisions on marketing would not hold water if market information is in absentia. On a general outlook, any decisions on marketing are influenced by both internal and external factors. The decision maker in this case, therefore, has to equip themselves with ample information on these factors so as to plan ahead comfortably as well as to establish the consequence these factors may inflict on the internal activities of the organization as well as its market. The success of marketing in an organization relies on the accuracy and availability of marketing information. Putting into consideration factors such as market trends, changes and needs occurring in a market, and how the rival businesses conduct their activities is what a good marketer needs to do before venturing into a business (Michael, 2012 p. 67). The components of a Marketing Information System such as marketing research, internal records and marketing intelligence are most crucial when trying to obtain information on marketing (Esad, 2013 p. 35). However, to understand the role information systems play, what managers do must be examined as well as what kind of information they require to make decisions. How decisions are made as well as the decision problems that be solved by information systems must also be understood. This paper stands to examine the role Marketing Information Systems play in assisting managers with their marketing endeavors. Marketing managers have roles such as organizing, planning, deciding, controlling and coordinating. Any information has to be built with the role of a marketing manager in mind if it is to serve him/her well. Recently, there has been stressing on the aspects of behavior in management decision making (Jules, 2013 p. 35). On this, marketing managers are supposed to be highly voluminous in their jobs, work at high speeds, they should be diverse, or able to offer variety, they should also be specific, highly interactive and able to use verbal communication. Researchers suggest that a manager’s day has many tasks, but very little time assigned to each. Marketing managers prefer being speculative and gossiping in brief. This helps them keep up to date with up-to-date information. Routine and historical information, usually receives less attention. Even from researchers, marketing managers are found to prefer verbal communication in comparison to written information. Verbal communication has been found to offer more flexibility, minimal effort, and a quicker response (Michael, 2012 p. 67). Since communication is a working tool for an effective marketing manager, he/she has to use whatever tool it takes to be efficient. A Marketing Information system is meant to gather different data into a cohesive body of information. A Marketing information system entails more than just information or data helpful in decision making (Esad, 2013 p. 48). A MIS also sources for methods where the information can be interpreted. A Marketing Information System can be defined as a progressive and interactive structure of equipment, people, and procedures in the gathering, sorting, evaluation, analysis and distribution of accurate and timely information for use by marketers to improve their marketing procedures (Michael, 2012 p. 67). An MIS consists of four major constituents: the marketing research system, internal reporting systems, marketing intelligence system as well as marketing models (Jules, 2013 p. 45). Internal Reporting Systems: Any enterprise that has been in operation for a given period of time should have a rich background of information. Such information; however, remains segmented, either as an individual entrepreneur or in the functional departments of bigger businesses. This means that information is usually categorized in relation to its nature, for instance, financial, manpower, marketing or stockholding data. The internal records of immediate value to decisions affecting marketing include sales invoices, stock holdings and orders received. These are among the few internal records that a marketing manager can use to generate information. Market Research Systems: Marketing research is a dynamic search for information. An enterprise that carries out market research has the aim of solving a perceived problem in a market. Data, in most cases is normally collected with a set objective, and to define and solve a problem within the period of the study. Another form of marketing research is based not only around a precise marketing problem, but is set to continuously monitor a marketing environment. These monitoring exercises are usually progressive market analysis studies and often include panels of persons such as distributors, farmers or consumers from which the very data is gathered at intervals. Marketing Intelligence Systems: Market research differs with market intelligence on the aspect of focus. A marketing intelligence system is a set of procedures as well as sources of data used by marketing managers to sift information from an environment for later use on their decision making process. The survey of a business and economic environment is carried out in a variety of ways, including: Unfocused scanning, semi-focused scanning, informal search and formal search. Marketing intelligence is the province of senior managers and entrepreneurs within an agribusiness. It requires their involvement in scanning business journals, newspaper, trade magazines, and economic forecasts among other media (Michael, 2012 p. 120). It also involves the management in talking to producers, customers and suppliers as well as competitors. Some enterprises approach marketing intelligence collection in a more specific fashion and will eve train its sales-staff, area managers and even after-sales personnel. An enterprise with vision will also encourage middlemen such as retailers, traders and collectors to be proactive in passing market intelligence back to them. Marketing Models: These are the analytical subsystem of the MIS (Michael, 2012 p. 150). A modest in a computer is enough to allow an enterprise to automate the analysis of its data. Some of the models contain an element of likelihood while others are deterministic, and chances do not play a part (stochastic). Examples of models include; Brand switching models and Analysis of Variance (ANOVA) models. Conclusion In summary, MIS assists in the following: Curbing pressures from competitors. Consumer expectations- consumers expect a product to be satisfactory, thus the need for accurate decision making. The emergence of large markets may disrupt the flow of information, necessitating an MIS. The revolution of information also necessitates the presence of a Marketing Information System (Esad, 2013 p. 62). The problem; however, lies in the management of this information and therefore, following the evolution of computers, it becomes quick and inexpensive for an organization to run large amounts of data, thus the need for an MIS. The above information proves just how vital a Marketing Information System is. For proper decision making as well an accurate observance of market marketing information is definitely required. A Marketing Information System may however be subject to bias in terms of provisioning of data that is in support of preferred actions, instead of solving all possible actions (Esad, 2013 p. 87). There are also factors that hinder the free flow of information for instance the fear of implementation. These are a few of the obstacles that can be faced while using a Marketing Information. Bibliography: Baker, Michael (2012). The Marketing Book. London, Routledge. Kokic, Esad (2013). Marketing Information Systems. Munich, GRIN Verlag. Miller, Jules (2013). Marketing Information System. Munich, GRIN Verlag. Read More