Marketing Information System

Introduction:

The Marketing Information System refers to the systematic collection, analysis, interpretation, storage and dissemination of the market information, from both the internal and external sources, to the marketers on a regular, continuous basis.

The marketing information system distributes the relevant information to the marketers who can make the efficient decisions related to the marketing operations viz. Pricing, packaging, new product development, distribution, media, promotion, etc.

Every marketing operation works in unison with the conditions prevailing both inside and outside the organization, and, therefore, there are several sources ( viz. Internal, Marketing Intelligence, Marketing Research) through which the relevant information about the market can be obtained.

1.      Internal Records: The Company can collect information through its internal records comprising of sales data, customer database, product database, financial data, operations data, etc. The detailed explanation of the internal sources of data is given below:

§  The information can be collected from the documents such as invoices, transmit copies, billing documents prepared by the firms once they receive the order for the goods and services from the customers, dealers or the sales representatives.

§  The current sales data should be maintained on a regular basis that serves as an aide to a the Marketing Information System. The reports on current sales and the inventory levels help the management to decide on its objectives, and the marketers can make use of this information to design their future sales strategy.

§  The Companies maintain several databases such as*Customer Database- wherein the complete information about the customer’s name, address, phone number, the frequency of purchase, financial position, etc. is saved.

*Product Database- wherein the complete information about the product’s price, features, variants, is stored.

*Salesperson database, wherein the complete information about the salesperson, his name, address, phone number, sales target, etc. is saved.

§  The companies store their data in the data warehouse from where the data can be retrieved anytime the need arises. Once the data is stored, the statistical experts mine it by applying several computer software and techniques to convert it into meaningful information that gives facts and figures.

2.      Marketing Intelligence System: The marketing intelligence system provides the data about the happenings in the market, i.e. data related to the marketing environment which is external to the organization. It includes the information about the changing market trends, competitor’s pricing strategy, change in the customer’s tastes and preferences, new products launched in the market, promotion strategy of the competitor, etc.

In order to have an efficient marketing Information System, the companies should work aggressively to improve the marketing intelligence system by taking the following steps:

§  Providing the proper training and motivating the sales force to keep a check on the market trends, i.e. the change in the tastes and preferences of customers and give suggestions on the improvements, if any.

§  Motivating the channel partners viz. Dealer, distributors, retailers who are in the actual market to provide the relevant and necessary information about the customers and the competitors.

§  The companies can also improve their marketing intelligence system by getting more and more information about the competitors. This can be done either by purchasing the competitor’s product, attending the trade shows, reading the competitor’s published articles in magazines, journals, financial reports.

§  The companies can have an efficient marketing information system by involving the loyal customers in the customer advisory panel who can share their experiences and give advice to the new potential customers.

§  The companies can make use of the government data to improve its marketing Information system. The data can be related to the population trends, demographic characteristics, agricultural production, etc. that help an organization to plan its marketing operations accordingly.

§  Also, the companies can purchase the information about the marketing environment from the research companies who carry out the researches on all the players in the market.

§  The Marketing Intelligence system can be further improved by asking the customers directly about their experience with the product or service via feedback forms that can be filled online.

3.      Marketing Research: The Marketing Research is the systematic collection, organization, analysis and interpretation of the primary or the secondary data to find out the solutions to the marketing problems.Several Companies conduct marketing research to analyze the marketing environment comprising of changes in the customer’s tastes and preferences, competitor’s strategies, the scope of new product launch, etc. by applying several statistical tools. In order to conduct the market research, the data is to be collected that can be either primary data (the first-hand data) or the secondary data (second-hand data, available in books, magazines, research reports, journals, etc.)

The secondary data are publicly available, but the primary data is to be collected by the researcher through certain methods such as questionnaires, personal interviews, surveys, seminars, etc.

A marketing research contributes a lot in the marketing information system as it provides the factual data that has been tested several times by the researchers.

4.      Marketing Decision Support System: It includes several software programs that can be used by the marketers to analyze the data, collected so far, to take better marketing decisions.With the use of computers, the marking managers can save the huge data in a tabular form and can apply statistical programs to analyze the data and make the decisions in line with the findings.

Thus, the marketers need to keep a check on the marketing environment, i.e. both the internal (within the organization) and the external (outside the organization, so that marketing policies, procedures, strategies can be designed accordingly.

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Marketing Intelligence System

Introduction 

A Market Intelligence system focuses on the systematic collection and processing of information from all the relevant sources to ascertain the changing trends in the marketing environment. In simple words, the marketer gathers data from all the available sources and processes these into meaningful information that can be used to make critical business decisions.

In order to obtain the market intelligence the marketer uses several sources such as newspapers, magazines, books, trade publications, social media, and feedback from customers, suppliers, distributors who cover the entire gamut of an external environment. The more information about the market environment is gathered the more accurate business decision will be and will enhance the efficiency of business operations.

The marketing intelligence system provides information about everyday happenings in the marketing environment. It is based on environmental scanning.

The Sources of marketing intelligence are:

a) Marketing Managers: They read books, newspapers, and trade publications. They talk with customers, suppliers, distributors and personnel within the organization to gather information.

b) Sale Force: They spot and report new developments in the market place. Organizations train and motivate them for marketing intelligence purposes.

c) Middlemen: They handle several products and usually know in advance about competitor's moves. They can provide vital market information.

d) Specialists: They are appointed to gather market intelligence. They even pose as "mystery shopper" to assess how employees treat customers or how compositors price their products.

e) Outsourcing: Commercial detectives are hired to gather specific information. Data can be purchased from research firms which specialize in supplying information at low cost.

f) Marketing Information Section: Organizations can establish a Marketing Information Section for marketing intelligence. It formally scans the environment to gather information. It also surfs the internet to gather data.

Every business tries to inculcate the market intelligence in its employees, and this can be done by following several steps given below:

1.   Training and Motivation Programs for Sales Force: Several training modules are conducted to encourage sales force who are in direct touch with ultimate customers to collect all the relevant information related to the product along with the customer’s experience of using it. A market intelligence is acquired when the sales force is motivated to give the valuable feedback and suggestions about the product offers and the opportunities prevailing in the market to their managers, who then convert these into the actionable plan.

2.   Encouraging Distributors and Retailers to seek Market Intelligence: Companies hire some specialist who visits several stores and showrooms to check the customer experience with the product or service. Also, retailer or a service provider send its own person as a “mystery guest” who acts as a customer himself and check the quality of a product and the way employees are handling the customer’s queries.

3.   Keeping a check on the Competitors: In order to sustain in the market, the companies should have complete knowledge about the doings of its competitors. One of the major market intelligence tools is the internet where every information about the competitor’s product and its variants, the price and easy pay schemes, services, and its feedback is available, and the same can be used to have a comparative study. Also, the information about the competitor’s activity can be acquired through the distributors, retailers and other intermediaries who are sitting in the market and know the whereabouts of each player.

4.   Customer Suggestion Panel: Companies using their internal market intelligence prepare a list of their customers who frequently make the purchases and among those set up a panel who give their expert advice to new customers about the product and its benefits. This method is very useful as people rely heavily on others experiences and a try a product or a service at least once. It is most commonly seen in schools & colleges where the community of alumni is created who give their expert comments on the quality of teaching and the courses to be opted in a particular educational institute.

5.   Government Data Resources: Government Resources are also the means to gain market intelligence. The population census is considered crucial through which population density, trends, demographic characteristics, etc. is determined, and the same can be used to make judicious market plans. Also, the data about the literacy level, agricultural production, inflation and recession, are provided by the government that acts as an important tool for information. Thus, government data resources are useful to gather relevant information about the prevailing market trends.

6.   Information from Outside Suppliers: The companies can also purchase the information from other companies who are specialists in doing the researches and prepare the reports about the other market players. Acting as an important aide to market intelligence, these research companies can provide detailed information about the competitor’s product and service that can act as an important tool in designing the market plans.

7.   Customer Feedback System: The most common and easy way to gain market intelligence is through the use of customer feedback system. Generally, it is online, where the customer is required to give his valuable feedback or suggestion on company’s website about the product or service consumed by him. Also, the feedback can be taken in person by asking the customers to fill up a form after they have availed the services. This is a more reliable form of information since it is directly provided by the customer himself.

Once the data is collected from all the possible sources, it is sorted into meaningful information which is then used by the management to design the marketing strategies. 

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