Factors Justifying The Need Of Marketing Information System

Factors Justifying The Need Of Marketing Information System:

The following points justify the need as well as importance of MIS:

1. Need of correct decision-making: MIS is needed for correct decision-making by marketing managers. They understand current market situation with the help of such information. If the information is reliable, the manager can take the final decision quickly and with confidence. Decisions relating to products, prices, sales promotion measures, channels of distribution, etc. can be taken by collecting and using the marketing information in a purposeful manner. This is natural as correct view of total marketing environment is possible only through accurate MIS.
2. Need of promptness in decision-making: In the present aggressive marketing system, quick marketing decisions are necessary. Time factor is important in decision-making and all decisions must be taken quickly as delayed decisions are costly and troublesome to a firm. Delayed decisions means not taking the benefit of promising marketing opportunities. Support of reliable and updated information is essential for such quick decision-making. MIS provides regular feedback, which is a must for decision-making in the present ever-changing business environment.

A marketing manager can now collect required information while working at a home office, in a hotel room or an airplane with the use of a laptop computer and phone. He can obtain information from company databases or from outside information services. He can analyze the information with the help of statistical packages and models; draw conclusions and communicate decisions through electronic communications.

1. Growth of consumerism and growing consumer expectations: Consumerism is a growing force in modern marketing. Consumers are now conscious and oppose their exploitation. Their resistance is always harmful to marketing companies. It is, therefore, necessary to study their expectations. For this, MIS is needed. In addition, needs and expectations of consumers require careful consideration in marketing planning and decision-making. Information about the needs and grievances of consumers is available through MIS.
2. Complex nature of marketing system: Marketing system has become complex due to market competition, availability of substitutes, government controls and growth of consumerism. Long term planning and correct decision-making are required to face the challenges of current marketing environment. For this, accurate information about complex marketing environment is required. This is possible through MIS.
3. Growing market competition: Marketing is, now/ highly competitive with different varieties of products. Competition may be due to price, quality and sales promotion techniques. A marketing manager needs accurate and updated information about market competition and policies of competitors. It is through MIS that information regarding market competition can be collected, analyzed and used while taking marketing decisions.
4. Information explosion: There is information explosion in the business world due to the use of new techniques of information collection and dissemination. A firm may not require all information available from different sources. It is necessary to find out precisely the information needs of the enterprise and sources that can supply such information. Accordingly, MIS should be organized.
5. Rapid developments in information technology: Fast changes are taking place in the field of information technology. Computers, internet, e-commerce, fax, e-mail and other instruments are used extensively for managing huge information easily, quickly and economically. A business firm needs efficient MIS in order to use latest information in marketing management. In short, information serves as the lifeblood of modem marketing management. Lower level management needs operational information for taking operational decisions while top-level management needs strategic information for taking strategic policy decisions. There is a flood of information (information explosion) knocking at the door of the management and management has to use such information for its survival, stability and growth. Marketing executives need market information (feedback) for correct decision-making. Even marketing activities are now becoming complex and broader in scope. These activities can be conducted in an orderly manner with the support of good MIS. In brief, MIS is needed for dealing with new marketing problems and challenges effectively.