Market Information systems
MIS is an Info method which helps in providing the management of an group with Info which is used by management for decision making. A management info method (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technology, and procedures by management accountants to solving business problems such as costing a product, service or a business-wide strategy. Management Info methods are distinct from regular Info methods in that they are used to analyze other Info methods applied in operational activities in the group.
That area of study should not be confused with computer science. IT service management is a practitioner-focused discipline. MIS has also some differences with Enterprise Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision support. MIS has a major impact on the functions of any group. The group derives benefits from the methods in the following form(a) Speedy access to Info, (b) Interpretation of data,(c) Quick decisions,(d) Speedy actions,(e) Increased productivity and thereby increases in the profit(f) Reduced transaction cost.
Components of the MkIS system
A marketing information system (MIS) is intended to bring together disparate items of data into a coherent body of information. An MIS is, as will shortly be seen, more than raw data or information suitable for the purposes of decision making. An MIS also provides methods for interpreting the information the MIS provides. Moreover, as Kotler's1 definition says, an MIS is more than a system of data collection or a set of information technologies:
'A marketing information system is a continuing and interacting structure of people, equipment and procedures to gather, sort, analysis, evaluate, and distribute pertinent, timely and accurate information for use by marketing decision makers to improve their marketing planning, implementation, and control'.
Internal reporting systems: All enterprises which have been in operation for any period of time nave a wealth of information. However, this information often remains under-utilized because it is compartmentalized, either in the form of an individual entrepreneur or in the functional departments of larger businesses. That is, information is usually categorized according to its nature so that there are, for example, financial, production, manpower, marketing, stockholding and logistical data. Often the entrepreneur, or various personnel working in the functional departments holding these pieces of data, does not see how it could help decision makers in other functional areas. Similarly, decision makers can fail to appreciate how information from other functional areas might help them and therefore do not request it.
Marketing research systems: The general topic of marketing research has been the prime ' subject of the textbook and only a little more needs to be added here. Marketing research is a proactive search for information. That is, the enterprise which commissions these studies does so to solve a perceived marketing problem. In many cases, data is collected in a purposeful way to address a well-defined problem (or a problem which can be defined and solved within the course of the study). The other form of marketing research centers not on a specific marketing problem but is an attempt to continuously monitor the marketing environment. These monitoring or tracking exercises are continuous marketing research studies, often involving panels of farmers, consumers or distributors from which the same data is collected at regular intervals. Whilst the ad hoc study and continuous marketing research differs in the orientation, yet they are both proactive.
Marketing intelligence systems: Whereas marketing research is focused, market intelligence is not. A marketing intelligence system is a set of procedures and data sources used by marketing managers to sift information from the environment that they can use in their decision making. This scanning of the economic and business environment can be undertaken in a variety of ways, including.
Marketing intelligence is the province of entrepreneurs and senior managers within an agribusiness. It involves them in scanning newspaper trade magazines, business journals and reports, economic forecasts and other media. In addition it involves management in talking to producers, suppliers and customers, as well as to competitors. Nonetheless, it is a largely informal process of observing and conversing.
Marketing models: Within the MIS there has to be the means of interpreting information in order to give direction to decision. These models may be computerized or may not. Typical tools are:
- Time series sales modes
- Brand switching models
- Linear programming
- Elasticity models (price, incomes, demand, supply, etc.)
- Regression and correlation models
- Analysis of Variance (ANOVA) models
- Sensitivity analysis
- Discounted cash flow
- Spreadsheet 'what if models
These and similar mathematical, statistical, econometric and financial models are the analytical subsystem of the MIS. A relatively modest investment in a desktop computer is enough to allow an enterprise to automate the analysis of its data. Some of the models used are stochastic, i.e. those containing a probabilistic element whereas others are deterministic models where chance plays no part. Brand switching models are stochastic since these express brand choices in probabilities whereas linear programming is deterministic in that the relationships between variables are expressed in exact mathematical terms.
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The MIS process
Control what metrics to contain in your marketing information system.
This is a identical thoughtful stage in building an operational MIS. All statistics has a rate, together material and chance rates, so containing the exact metrics is serious.
- Quantity the incorrect things and you’ll create bad conclusions and unused cash. An illustration is computing followers to your Facebook page. Sure, there’s a minor improvement to taking extra followers, but their involvement to ROI is comparatively small. Creating results that emphasis on growing the number of followers prospective unused extra cash than necessary by the ROI you’ll understand.
- Quantity too various metrics and investigation converts problematic. It’s like annoying to discovery a indicator in a haystack. The huge quantity of hay (unusable statistics) pelts the beneficial statistics — the indicator. Just as you container extent approximately, doesn’t mean you would.
- Gathering metrics rates cash. Statistics is only wealth its rate after the worth it subsidizes to better executive overshadows the rate of assembly the statistics — & be certain to contain the social rate of assembly and investigating this statistics to extra budgets in getting the statistics
Gather Relevant Statistics
Certain statistics approaches from inside bases, such as sales records, accounting figures, website analytics, and intelligence from your sales-force. Other statistics approaches from outside bases, containing rival results, economic metrics, attending support metrics, and Facebook Insights. Your marketing research statistics container similarly form portion of your marketing information system, such as recurrent examinations of customer satisfaction.
Plot Statistics
It’s identical problematic to sort conclusions built on rare statistics because the statistics comprises imperceptible designs that strength then specify fitting activities. Plotting statistics consents managers to rapidly perceive alterations in serious metrics finished period. Certain, you can use the graphing role of Excel or other statistics database, but different statistics conception software styles the profession smooth calmer.
Communicate Result
Additional persons have the info from your MIS, the improved. However, not everybody is successful to appreciate boards of rare statistics or smooth conceptions similar in the console overhead. That’s for your MIS necessitates explanation complete the lens of marketing awareness.
Make Marketing Decision
The last stage in the procedure is expending metrics after your marketing information system to variety conclusions that improve your presentation results. (Hausman, 2012)
Summary
Marketing information systems are intended to support management decision making. Management has five distinct functions and each requires support from an MIS. These are: planning, organizing, coordinating, decisions and controlling.
Information systems have to be designed to meet the way in which managers tend to work. Research suggests that a manager continually addresses a large variety of tasks and is able to spend relatively brief periods on each of these. Given the nature of the work, managers tend to rely upon information that is timely and verbal (because this can be assimilated quickly), even if this is likely to be less accurate then more formal and complex information systems.
Managers play at least three separate roles: interpersonal, informational and decisional. MIS, in electronic form or otherwise, can support these roles in varying degrees. MIS has less to contribute in the case of a manager's informational role than for the other two.
Three levels of decision making can be distinguished from one another: strategic, control (or tactical) and operational. Again, MIS has to support each level. Strategic decisions are characteristically one-off situations. Strategic decisions have implications for changing the structure of an organization and therefore the MIS must provide information which is precise and accurate. Control decisions deal with broad policy issues and operational decisions concern the management of the organization’s marketing mix.
A marketing information system has four components: the internal reporting system, the marketing research systems, the marketing intelligence system and marketing models. Internal reports include orders received, inventory records and sales invoices. Marketing research takes the form of purposeful studies either ad hoc or continuous. By contrast, marketing intelligence is less specific in its purposes, is chiefly carried out in an informal manner and by managers themselves rather than by professional marketing researchers.
Reference:
- Kotler, P., (1988) Marketing Management: Analysis Planning and Control, Prentice-Hall p. 102.
- Agnilar, F.. (1967) Scanning The Business Environment, Macmillan, New York, p.47.
- Business directory, (n.d). Retrieved from Marketing Information System: http://www.businessdirectory.com/definitaion/marketing-information-system.html
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