A Marketing Information System (MKIS) is a set of processes, hardware, software, people and tools used to collect, analyse, and distribute marketing data and information that can help businesses in making informed decisions.
Thank you for reading this post, don't forget to subscribe!- It is a structured approach that ensures a continuous flow of relevant information to support marketing decisions, planning, implementation, and control.
Features of Marketing Information System:
- Continuous process
- Accuracy, Reliability and Completeness
- Timely and Relevant Information
Advantages of Marketing Information System:
1.) Informed Decision-Making:
With timely and accurate information, businesses can make better decisions regarding product launches, pricing, promotions, and market entry strategies.
2.) Improved Customer Understanding:
Marketing research and intelligence help organizations gain a deeper understanding of consumer behavior, needs, and preferences, enabling them to tailor products and marketing messages.
3.) Competitive Advantage:
By continuously monitoring competitors and market trends, companies can stay ahead in the market by adjusting strategies quickly and identifying emerging opportunities.
4.) Efficient Resource Allocation:
A well-organized marketing information system ensures that resources are allocated effectively by analyzing the return on investment (ROI) for various marketing activities.
5.) Effective Marketing Strategies:
With detailed and real-time data, companies can design more effective marketing strategies, campaigns, and promotions to engage customers and drive sales.
Sources of Marketing Information System:
There are varieties of sources that can be used to obtain marketing information. Some of them are explained below:
1. Marketing Mix (4Ps/7Ps)
While not a direct “source” of information, the marketing mix helps structure how information is used and what kind of data is needed. It includes:
- Product: Information about customer needs, product features, and competitors.
- Price: Pricing strategies, customer perception of value, and competitor pricing.
- Place: Distribution channels, logistics, and market availability.
- Promotion: Advertising effectiveness, promotional strategies, and media usage.
(For services, 7Ps include People, Process, and Physical evidence.)
Source of info: Internal company records, customer feedback, market trends, competitor analysis.
2. Marketing Research
This is a systematic process of collecting, analyzing, and interpreting data to help make marketing decisions.
Common sources include:
- Primary research (data collected firsthand):
- Surveys
- Interviews
- Focus groups
- Observations
- Experiments
- Secondary research (existing data):
- Industry reports
- Government publications
- Academic journals
- Company sales records
- Online databases
Used to understand customer behavior, market potential, competition, and product feasibility.
3. Marketing Information System (MIS)
An organized way of gathering, storing, analyzing, and distributing marketing data for decision-making.
Components of MIS:
- Internal Records:
- Sales data
- Inventory reports
- Financial data
- Marketing Intelligence:
- Competitor analysis
- Market trends
- News and reports
- Marketing Research:
- Custom studies and surveys
- Analytical Tools:
- Data modeling
- Forecasting software
MIS is continuous and integrates various sources into one system for strategic planning.
Figure: Marketing Information System:
