Define the marketing information system - Essay Example

As the world experience the changes of new technology and the gradual improvement in every process of this world, it is vital to how this technology has helped the people conducting business. Businesses have not become easy but have gone another level up the ladder of sophistication. The new and faster technology has helped human to explore one corner of the world while sitting in the other corner. The world has been shaped into a global village that is being supported by the new technology. Communication around the globe has become a matter of seconds.

The environment is getting tougher and more competitive, a business that needs to be successful not only has to be competitive but also be equipped with latest technology and a perfect combination of human minds. The concept of making profit has now shifted itself into a new form called ‘customer satisfaction’. Every organization looks to satisfy their customers and this could be done when the firm delivers the exact thing the customer requires. This can be achieved through a number of ways, firstly by good communication, secondly by observing the different customer behaviors and their preferences.

The two ways mentioned above need a track record of the customer so as to deduce results of the consumer preferences and choices. Here comes the factor technology as it provides a simple information system that has the ability to store data about the customer, which eventually helps the manager in analyzing different customer and then making sure they are satisfied. The basic function of a database is to help the managers in making important and vital not only strategic decisions but also operational decisions.

A very common example is an organization that uses an information system to keep records of the customers and its name is Proctor & Gamble. The P & G has been conducting its business successfully all over the globe and they have a simple marketing information system that keeps a track of the customer purchases as they have all the records of the customer purchases that have been made of their products. This helps them analyze the product’s weaknesses and strengths, and then they can improve it according to their customers.

The method they use is entering the purchases of every individual customer separately on a database. This database later is used by research experts to explore different innovations in the product if its not working or else how to keep a famous product selling for a longer period of time. The information gathered is simple for example the name, date of birth and the type of products purchased by the person and the quantity. The methods of collecting this information are in different forms as to make the procedure more interactive every time.

The information system at P & G helps them in marketing their product in a simple way that is by storing records on the information system and then changing it into some useful knowledge that helps in predicting future trends and also tells the section of market that might be important to launch the product and etc.ReferencePhilip Kotler, Gary Armstrong. (February 1, 2005). Principles of Marketing. Prentice Hall; 11th edition.Kenneth C. Laudon, Jane P. Laudo. (March 1, 2005). Management Information Systems: Managing the Digital Firm.

Prentice Hall; 9 editionKenneth Laudon, Carol Traver. (March 22, 2006). E-Commerce: Business, Technology, Society. Prentice Hall; 3 edition.