Companies in India and across the world have been forced recognize and acknowledge – the rising power of customers (across all classes) and the emerging new generation of competitors. This rise in customer power has gained prominence especially in the post-liberalization scenario, which is triggered by the extensive deregulation and the general import duty reduction, leading to cutthroat competition. Given this scenario, it is no wonder that firms are faced with the task of building up a database of customers (existing and potential), enhance their product/service offerings continuously, understand their customers’ perceptions of its product and services vis – a – vis that of their competitors and also to innovate (product and service mix) regularly so as to be able to set them apart from the rest of the pack. This is no easy job because data may be available in plenty but it has to be sorted and resorted so to ensure that this data reaches the people who need the information for decision-making.
Thus has begun the age of information explosion with marketing decision makers and also the other managers having learned that they need certain kinds of information during regular intervals of time in order to deal with recurring decisions.
Marketing information system (MIS) is of recent origin and supports marketing decision-making and marketing planning. It facilitates quick marketing decision-making and thereby raises marketing excellence. However, MIS is not a substitute for, but an aid to rational decision-making. Even after collecting all required information, the decisions are to be made by marketing executives. Information is those cues that make managerial decisions scientific. In brief, MIS is an essential support system for developing marketing decisions, plans and strategies.
Marketing information includes all facts, estimates, opinions and other data used in marketing decision-making. A lot of information is generated regularly from within the organization and also from external sources. Such information can be collected purposefully for planning business activities and for decision-making. Information is useful to top and middle level management for planning and control of marketing activities. The marketing manager takes marketing decisions in the light of the information supplied through MIS. He is like a pilot on the flight desk controlling aircraft as per the information available through instrument panels. Such information system provides updated and varied type of information in an uninterrupted manner to a business organization. In fact, information is the glue that holds organization together. Every organization needs efficient MIS to effectively manage the information collected. In business organizations, marketinginformation managers are appointed and are responsible for creation and dissemination of marketing information throughout the organization.
The meaning of MIS can be made clear with the help of a simple example of a pilot of an aircraft. When a pilot is at the controls of his aircraft, he is constantly monitoring its (aircraft’s) performance in relation to air speed/ light and altitude, engine revolutions so that the, flight can continue safely towards a destination. The task of piloting the plane centers on his receiving information through the instrument panels on his flight deck. He takes decisions and sees that the plane moves towards the destination quickly and safely. In many ways managing business or marketing activity is like piloting an aircraft. In order to achieve marketing objective, correct decisions must be taken and correct decision-making is possible only when reliable, up-to-date and adequate information is made available regularly and promptly. This suggests the meaning and significance (importance) of MIS.
It may also be noted that information has no value until managers use the information collected to make better marketing decisions. For this the information gathered through MIS/marketing intelligence/ marketing research should be distributed promptly to the right marketing managers at the right time. Developments in information technology have brought a revolution in information distribution. In many companies, marketing managers have direct access to the information network at any time and from virtually any location. This is due to advances in computers, software and telecommunication.
For the purpose of decision-making, marketers generally require three types of information
• Information for the Purpose of Control: In order to ensure effective control, marketers are interested in having access to weekly sales reports (on sales territories, product-wise etc.), sales- expense ratios, warehouse inventory reports, etc. Such information will enable the marketer to know what is happening, what has happened in the past or what changes may be required to be taken in the future.
• Information for Planning Purpose: This will include economic and sales forecasts, understanding demographic profiles, estimating social and political shifts
• Information for an ad-hoc Study: This could be information being sought for one-time decisions or study like – whether a proposed new product is to be introduced? What sort of an advertisement should for used for a national campaign and so on.
The latter two types of information involve research. If the reports are not fed into the formal information system and is basically in the possession of the person who was originally seeking the information, then this may lead to another problem, i.e. another group or department may be seeking this type of information but in the absence of a formal filing of the research report, may be unaware that such a study has already been conducted.
This reiterates the fact that an effective Marketing Information System must be such that it is able to identify, manage and disperse all the above-mentioned three types of information. Moreover, the information systems will also have an impact on the location and methods of Marketing Research.
It is to be noted that the Marketing Information System is spoken to be as the same u& Management Information System. This is because the systems are quite similar with the only distinction that the former system applies to a system dedicated to the marketing branch of management, while the latter refers to the whole spectrum of management. As mentioned earlier MIS can also be termed as an extension of the scope of Marketing Research. A more limited meaning of a MIS is that of a computerized network which stores and supplies management information. This means that the co-ordinated efforts of MIS and Marketing Research will enable the management to take better decisions by supplying data and analytical operation facilities to the Marketing Research and thereby relieving the latter from routine data and reports.
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