Components Of Marketing Information System:
The components of MIS are as noted and explained below:
(1) Internal marketing information.
(2) Marketing intelligence.
(3) Marketing research.
(4) Market information analysis.
(1) Internal Marketing Information: This component of MIS provides information from within the organization itself i.e., through the accounting system on sales, inventories, cost, cash flows, accounts receivable etc. and old records. Data on sales, turnover, costs, cash flows, accounts receivable and payable, etc. provide information required for marketing decision making. All such records are available within the firm and hence these sources are rightly called internal sources of marketing information. Reference to any old information is possible quickly if the available information is already stored systematically through computer techniques.
Marketing managers use this internal source fully as the information is available easily and quickly. Even current marketing information is easily available. For easy availability of internal information, filing and record keeping system must be efficient.
(2) Marketing Intelligence: The second component of MIS is the marketing intelligence. This component provides information on external marketing environment. Here, information is collected from external sources. This component of MIS provides information regarding current marketing environment and changing conditions in the market. Such information is easily available through census data, weekly and monthly reports on markets and market news published in magazines and trade journals, commercial press, reports of trade associations and chambers of commerce, annual reports of companies and so on. Even reports of salesmen are useful to study current market trend.
Professional market research agencies publish information on various aspects of marketing and market trends. Information available from these sources may not be useful in the present form. It is necessary to evaluate and arrange the information in a proper order. This enables the marketing executives to draw conclusions and frame marketing policies accordingly. Market intelligence acts as a mirror of marketing environment and facilitates appropriate decision-making on marketing.
(3) Marketing Research: Marketing research is one more component of MIS. In this component, specific marketing problem of the firm is selected for investigation. Data regarding the problem are collected, tabulated, analyzed and conclusions are drawn. In addition, suitable policy measures are recommended in order to solve the problem. Marketing research as a component of MIS provides information but such information is specific and useful for one specific purpose. MR and MIS are closely related functions. Both provide updated information for decision-making by marketing executives.However, MIS and MR are not substitutes of each other.
(4) Market Information Analysis: Information gathered by the company’s marketing intelligence and marketing research systems often requires more detailed analysis. Sometimes, managers may require more help to use the information to their marketing problems. This help may include advanced statistical analysis. With support from market information analysis managers can make better marketing mix decisions, design sales territories and sales-call plans, select site for retail outlets and forecast new product sales.
61 Comments