Marketing Information System (MIS) & Marketing Research

Marketing Information System (MIS)

Introduction

• An information system (IS) is a structured combination of people, technology, processes, and resources that collects, processes, stores, and distributes information to support decision-making, coordination, control, analysis, and visualization in an organization.
• Functions of an Information System:
• Data collection → Input
• Data processing → Conversion into useful information
• Storage → Databases & records
• Distribution → Reports, dashboards, alerts
• Feedback → Improves decision quality

In marketing, IS helps reduce uncertainty and provides timely, accurate, and relevant information for managers to take strategic and tactical decisions.

Marketing Information System (MIS)

Definition

• MIS is a structured, continuous, and interactive system that gathers, sorts, analyzes, evaluates, and distributes timely and relevant marketing information to marketing decision-makers.
• Philip Kotler defines MIS as “a continuing and interacting structure of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute pertinent, timely, and accurate information for marketing decision-makers.”

Characteristics of MIS

1. Continuous Process – Provides regular, up-to-date information.
2. Future-Oriented – Helps in forecasting and planning.
3. Decision-Oriented – Supplies data for strategic and tactical decisions.
4. Systematic – Structured collection and flow of information.
5. Flexibility – Adapts to environmental changes.
6. Accuracy & Reliability – Ensures dependable decision-making.
7. Integration – Combines internal and external sources of data.

Need for MIS in Marketing

• Increasing complexity of markets (globalization, competition).
• Dynamic consumer behavior and preferences.
• Need for timely decisions in areas like product launches, pricing, promotion, distribution.
• Helps reduce uncertainty and risk in decision-making.
• Assists in identifying opportunities and threats.
• Improves coordination between departments (sales, production, finance).
• Supports strategic planning, budgeting, and performance evaluation.

Dimensions of MIS

1. Internal Records System – Data from within the company (sales records, billing, stock reports).
2. Marketing Intelligence System – External environment scanning (competitors, market trends, government policies).
3. Marketing Research System – Formal studies to solve specific marketing problems.
4. Analytical Models System – Quantitative models, forecasting, statistical tools to analyze data.

Components of MIS

1. Database – Organized collection of internal & external data.
2. Software/Tools – Statistical tools, data analysis software, forecasting models.
3. Hardware/Technology – Computers, networks, cloud systems.
4. People – Managers, analysts, IT staff, decision-makers.
5. Procedures – Processes for collecting, analyzing, and reporting data.

Design of MIS

• Step 1: Define objectives (what information managers need).
• Step 2: Identify data sources (internal & external).
• Step 3: Develop information flow (how data moves in system).
• Step 4: Choose technology & analytical models.
• Step 5: Build database & reporting system.
• Step 6: Implement feedback mechanism for improvement.

Marketing Research

1. Definition

• Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation.
• According to AMA: “Marketing research is the function that links the consumer, customer, and public to the marketer through information.”

2. Importance of Marketing Research

• Identifies customer needs, preferences, and satisfaction levels.
• Provides insights for new product development.
• Helps in analyzing competitor strategies.
• Guides decisions on pricing, distribution, and promotion.
• Reduces business risk by providing factual data.
• Improves communication between business and consumers.
• Helps in forecasting demand and market trends.

3. Features of Marketing Research

• Systematic – Follows scientific and logical steps.
• Objective-oriented – Solves specific problems.
• Continuous – Done regularly, not one-time.
• Analytical – Uses statistical and analytical tools.
• Decision-supportive – Helps managers make better decisions.
• Wide scope – Covers product, price, promotion, place, consumer behavior, etc.

4. Objectives of Marketing Research

1. To understand consumer needs and behavior.
2. To evaluate market potential and opportunities.
3. To analyze competitor performance.
4. To study effectiveness of marketing strategies.
5. To assist in decision-making regarding Product, Price, Place, and Promotion (4Ps).
6. To forecast demand and sales trends.
7. To minimize risks and uncertainties.

Decision Areas in Marketing Research

1. Product Research – Product design, features, quality, packaging, brand preference, product life cycle studies.
2. Sales Research – Sales forecasting, sales territory analysis, sales performance evaluation, distribution channels.
3. Consumer Research – Buying motives, attitudes, satisfaction, loyalty, lifestyles, demographics, psychographics.
4. Promotion Research – Advertising effectiveness, media selection, promotional mix, digital marketing performance.

Ethical Issues in Marketing Research

• Privacy of Respondents – Misuse of personal data.
• Deception – Misleading participants about research purpose.
• Bias in Reporting – Manipulating data for desired results.
• Confidentiality – Not disclosing respondent’s identity.
• Exploitation – Overburdening respondents or giving unfair incentives.
• Conflict of Interest – Favoring sponsors at the cost of truthful findings.

Role of Marketing Research

• Acts as a bridge between consumer and marketer.
• Supports decision-making in areas of product, pricing, promotion, distribution.
• Provides factual basis for marketing strategy.
• Helps in demand forecasting & sales planning.
• Assists in performance measurement of campaigns.

Types of Marketing Research

1. Exploratory Research – Initial research to clarify problems (interviews, focus groups).
2. Descriptive Research – Quantifies facts, behaviors, and attitudes (surveys, observations).
3. Causal Research – Tests cause-and-effect relationships (experiments, test markets).
4. Applied Research – Solves specific company problems.
5. Basic Research – Expands general marketing knowledge.

Process of Marketing Research

1. Define the Problem – Identify research problem & objectives.
2. Develop Research Plan – Choose methods, sampling, and tools.
3. Collect Data – Primary and secondary sources.
4. Analyze Data – Use statistical tools, models, comparisons.
5. Interpret & Report Findings – Prepare reports for decision-makers.
6. Take Action – Apply findings in strategies and decision-making.

Methods of Data Collection

1. Primary Data Collection

• Surveys (questionnaires, interviews).
• Observation (consumer behavior in stores).
• Experiments/Test Marketing (trial launches).
• Focus Groups (discussion-based insights).

2. Secondary Data Collection

• Internal company records (sales reports, invoices).
• Government publications (census, economic data).
• Industry reports, trade associations.
• Online databases, journals, and competitor websites.

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