Introduction
Marketing information that is both accurate and insightful can be a vital component of a company’s success. While many businesses conduct separate marketing research programs on topics such as consumer needs or investment opportunities, a true marketing function goes even farther, trying to incorporate data on both micro and macro environment into a currently underway process which ensures decisions are always based on current insights. This blog post will discuss handling marketing information and developing a marketing information system that will help grow faster.
Marketing information system
A marketing information system (MIS) is a collection of processes and techniques for generating, analyzing, disseminating, and storing expected customers ’ decision information on a regular, ongoing basis. Numerous components of marketing can benefit from the usage of a computer system on an operating, administrative, and strategic level. This information collection is a continual procedure that collects numbers from many foundations, manufactures it, and provides it to persons accountable for satisfying the customers’ demands. The success of promotion decisions is demonstrated if the organization has a robust information system that provides a competitive edge. Marketing information should not be treated arbitrarily (Wahyuni and Lestari, 2020). Management Information System (MIS) is a 3 term that combines administrations, information, and technologies. Information Management Structure can be defined as systems that provide data to managers using only these three terms. That is the most fundamental description of MIS, and it encapsulates what an Information technology System does and how it should function on a technological basis. Though, its significance and influence on the efficient management of a company cannot be overstated. That is why, in some form or the other and, each thriving entrepreneur employs these techniques.
Example of marketing information system
Management Information Systems is one of the various types of information systems used in business. Let’s take a look at the many sorts of information systems available in a company to better grasp Management Information Systems. The usage of MIS may be seen in the subscription programs offered by large retail businesses such as Walmart and Sansbury Teshabayev, et al. 2021). They incorporate the user preferences using a one-of-a-kind referencing ID or cards that they offer. They are responsible for tracking the number of visits the consumer has and, at the very same time, customize offers for the customer based on previous transaction information with the aim of this. At the same time, the membership encourages the buyer to return to the store for returning customers.
Transaction Processing Systems: Such systems are designed to capture, evaluate, and document actions that take place during a company’s day-to-day operations. The program could also be used to terminate or change earlier transactions if needed. One element of the model that allows staff to work effectively is the capacity to properly record several events, even if they happen simultaneously. They are built to handle massive amounts of data (Milosevic, et al. 2019). Applications include an inventory tracking system, payroll administration, and transaction processing technology, among others.
Decision-Making Systems: These processes aid decision-makers in making the right decisions feasible by generating quantitative predictions from analyzed data. Though it may not remove the need for management discretion, it significantly improves decision-making and gives projections to aid in determining the best course of action. Such devices gather data from multiple data sources to aid in decision-making. Among such technologies are desktop cooperative work, decision support tools, transportation, and financial planning structures.
Executive Information Systems This tool also referred to as the Executive Support Structure, is designed to give senior management corporation information. These techniques produce quick and easy-to-use news stories in a graphical form that really are important to compare (Schwertner, 2017). They could be thought of as specialized decision support systems because they provide data that helps improve organizational efficiency. Due to the obvious high demands put on such technologies, they should be tailored specifically, hence why they are typically specifically created for particular customers. Companies are also adaptive to the specific requirements of customers.
Management Information Systems These technologies depend on information technology that can help the administration in guaranteeing the smooth and efficient operation of the organization. The data collected by these systems is planned in such a way that management may rapidly compare the company’s actual performance to previous outputs (Andrei, 2018). Many of the most popular types of information administration are processes, people management systems, marketing and distribution infrastructure, supply chain management, office automation processes, business process management, management, and auditing systems, and manage key performance indicators.
Importance of marketing information system
- MIS aids in the recognition of trends: MIS aids managers in the recognition of trends in the market. Pricing, product development, marketing, communication strengths, and so on are all examples of changing trends. Managers can make successful judgments about prices, new products, and so forth in reaction to shifting environmental trends.
- Aids in marketing planning and scheduling: The planning process, pricing, advertising, and distribution all require efficient marketing making plans (Borysova and Monastyrskyi, 2018). Such planning is only possible if the organization has access to appropriate and relevant information.
- Quick information supply: -A firm must make quick decisions for this reason; this necessitates fast dissemination of knowledge, which is assisted by a correctly built MIS. Marketing managers can make prompt and efficient situations to timely delivery of marketing communication.
- Decision-Making Quality: -In every part of advertising, there is a requirement to make consistent and correct choices. A well-designed marketing system provides trustworthy and timely information. Marketing professionals can make the appropriate judgments at the right time. In addition to laptops and other data processing tools.
- Tapping Business Prospects: -There are a lot of business possibilities that have gone unexplored for a variety of reasons, including a lack of adequate information (Borisov, et al. 2020). Because it can provide necessary and reliable data, MIS enables businesses to capitalize on business opportunities.
- Marketing Intelligence: -Marketing intelligence is related to knowledge on events in the surrounding environment, such as changing customer preferences, assumptions, rivals’ strategies, regulatory frameworks, the regulatory environment, and so on. It is feasible to acquire marketing information, which is necessary for making good marketing judgments, with the assistance of MIS professionals.
Major components of marketing information system
The following are the top four components of a marketing information system: 1. Internal record-keeping system 2. Marketing intelligence system 3. Marketing decision-making system 4. Marketing investigation. An MIS should deliver up-to-date data. As a result, new strategies for speed and accuracy in MIS are required. As a result, several subsystems are used to create information. The four components of MIS are as follows:
- Internal records: Marketing executives rely on internal reports for client orders, sales, market prices, cost, levels of inventory, receivables, and payables. The order-to-payment cycle lies at the heart of the internal tracking system. Customers place orders with the businesses (Cheowsuwan, et al. 2017). The sales team generates invoicing and distributes copies to other organizations. Invoices are sent as soon as feasible by the accounts team. The corporate keeping records is determined by the customer’s order. This database becomes a critical source of information for analyzing sales, levels of inventory, profitability, consumer credit policies, and so on.
- Marketing intelligence system: A marketing intelligence system is a collection of approaches and foundations that executives utilize to receive daily evidence about the marketing environment. Sales personnel are trained to select information and forward it to the appropriate boss. They are capable of detecting and reporting on developments. A corporation can persuade distribution channel members to share information on customers. Data on salesforce behavior is also collected. Managers can attend trade exhibitions, examine competitor public reports, chat with staff, and research new competition stories.
- Marketing decision support system: An increasing number of firms are utilizing marketing information systems to assist managers in making smart decisions (Kulikova, 2019). It is a system that collects data from businesses and the surroundings using software and hardware. It helps management in showing evidence for their decisions. Marketing software programs now available aid in the development of promotional scientific studies, market analysis, selling prices, budgeting, media analysis, and sales force scheduling.
- Marketing research: It serves as a tool for getting precise marketing plans. It is excellent for researching and addressing various marketing difficulties. Producers, importers, wholesalers, and service firms all employ marketing research approaches. Marketing research is a practical skill. As a result, it offers various solutions to a certain situation.
Characteristics of marketing information system
- Reliability: Software should be free of flaws. It should not fail throughout the execution process.
- Software should be efficient in its use of resources.
- Security: Software should not have a negative impact on data or hardware. External risks should be avoided by keeping the data secure.
- Correctness: The program should meet all of the specified requirements.
- Usability/learnability: The amount of hard work or time forced to learn how to use the program; the product’s user-friendliness.
- Integrity: Programs must not have or produce any negative consequences.
- Maintainability: Any type of user should be able to easily maintain software.
- Software updates should be simple to implement.
- Testability: The program should be simple to test (Salem, et al. 2020).
- Extensibility: It should be simple to improve functionality.
- Scalability: The ability to easily scale up for additional work or a larger number of users.
- Extensibility: Capable of being accessed across numerous platforms or devices.
- Modularity: Separate, independent infantry that may be modified and tested independently are referred to as modular.
Use of information to marketing
Marketing information that is accurate and analytical can be a significant component of corporate success since it drives product development and marketing strategies and supports ongoing improvement. While many businesses conduct individual marketing research programs on topics such as consumer demands or investment opportunities, a true marketing function goes much further, trying to incorporate data on both various factors into a currently underway process and ensures decisions have always been based on current insights. Many marketing choices are made without using targeted advertising or formal marketing studies (Schwertner, 2017). A policymaker, for instance, may believe she already understands enough to make an informed decision. It is possible that the time required to study a question or do formal market analysis is unavailable. In other circumstances, the expense of collecting the data is exorbitant, or the needed data is not available in a reliable format. In a few cases, there may be no option among options, and hence no judgment to be made, because there is very little point in devoting time and cash to researching an issue whether there is just one feasible answer.
However, in most commercial circumstances, marketers and managers must select between two or more options. This is where simple truth, marketing information, and research come into play to help you make a decision. Promotional information and knowledge fulfill the salesperson’s desire for faster, more precise making decisions. These tools bring marketers closer to their customers, allowing them to better understand who they really are, what they really want, and what their competitors are still doing (Kulikova, 2019). When various stakeholders have extremely diverse perspectives on a given marketing-related choice, objective information and research can teach everyone about the problems at hand and assist the business in reaching a resolution. Increasing market research initiatives may be justified in addition to this overall level of “tuning in.” As a general guideline, it is prudent to proceed if the research results can save the company more effort, money, and risk than what it costs to be doing the research. If the expense of carrying out the study exceeds the benefit of enhancing a decision, the research should not be conducted. In practice, following this cost-test approach can be a little tricky, but it provides excellent information on when marketing research is beneficial. Finally, effective marketing managers make decisions based on a combination of data and instinct.
Conclusion
A management information system (MIS) can be utilized to keep the internal teams of the organization up-to-date about the task. It also allows businesses to cooperate more efficiently and steadily with an outdoor market research organization. Additionally, since the data is preserved within the platform, businesses can use that in the future when making future tactical choices. The more systems business put in place inside any company, more the efficient it will be. Using an MIS delivers dependable information to your marketing and sales divisions, allowing business employees to make creative, lucrative decisions.