Read this article to learn about marketing information system: it’s background, characteristics and its components!
Conceptual background:
Marketing information system (MkIS) is the continuing future oriented structure of information flow in order to make operational strategies.
In modern business, the product flow and information flow are equally essential. Information is the current that keep’s the wires of marketing alive because the flow of marketing information is equally important as the flow of goods and services.
Marketing research, the formal mean of obtaining information has been playing a pivotal advisory role in the marketing field. The basic need of marketing management is a genuine information flow from the market to the decision maker. Marketing information includes all the facts, figures, estimates and opinions affecting the quality of decisions for the survival and growth of business.
These are specially designed methods of providing management with an orderly flow of right information, for the right people, at the right time. Marketing executives gather relevant information adequately and timely from internal and external sources. Quantitative analysis and precise impartial decision making is most crucial point of whole system.
Characteristics of MkIS:
1. MkIS is a continuous and ongoing process. Marketing manager makes frequent and constant decisions all over the business life.
2. MkIS is a carefully developed master plan of information flow. Master and flexible budgeting systems are applied for MkIS models.
3. MkIS is future oriented in its approach. It anticipates and presents the problem, after that curative remedy is suggested.
4. There should be condition among various departments and individuals for effective MkIS.
5. Modern MkIS is fully based on computer and numerical calculations.
Components of MkIS:
A well designed MkIS consists four major sub-systems: internal accounting, marketing intelligence, marketing research and marketing science. Accounting books can provide comparative data on sales, costs, inventories, receivables, payables, cash funds etc.
Internal accounting system supplies past data, while the marketing intelligence system provides information about present changing conditions and future expectations.
Firm can get facts from salesmen, distributions, agents, outsiders hired experts for intelligence MkIS. Marketing research (MR) is the collection and analysis; of facts for the specific problems. Marketing science approach establishes causal relationship to predict about marketing problems. Thus, MR is an important part of MkIS so MkIS should be treated more wider than MR.