A
marketing information system (MKIS) is a management information system (MIS) designed to
support marketing decision making.
Jobber (2007) defines it as a "system in which marketing data is formally gathered, stored, analysed
and distributed to managers in accordance with their informational needs on a regular basis."
In addition, the online business dictionary defines Marketing Information System (MKIS) as "a
system that analyzes and assesses marketing information, gathered continuously from sources
inside and outside an organization or a store."[1] Furthermore, "an overall Marketing Information
System can be defined as a set structure of procedures and methods for the regular, planned
collection, analysis and presentation of information for use in making marketing decisions." (Kotler,
at al, 2006)
Compnents of market information system
1. Internal record:
Marketing managers rely on internal reports related to customer orders, sales, price levels, cost, inventory
levels, receivable and payables. The heart of the internal record system is the order-to-payment cycle.
Customers send orders to the firms.
The sales department prepares invoices and transmits copies to various departments. The billing
department sends invoices as quickly as possible. It is the order from the customer that sets the internal
record keeping. This record becomes a vital source of information for analysis of sales, inventory
levels, profit margins, credit policy to customers, etc.
2. Marketing intelligence system:
The marketing intelligence system is a set of procedures and sources used by the managers to obtain
everyday information about marketing environment.
A company can collect marketing intelligence in the following ways:
i. Sales force:
Sales representatives are trained to pick information and send it to the concerned manager. They can spot
and report new developments.
ii. Distributors, retailers and other intermediaries:
A company can motivate the members of the distribution channel to pass information about shoppers.
Information is also collected on sales force behaviour.
iii. External networking:
Managers can attend trade shows, read competitors published reports, talk to employees, and analyse new
stories about competitors.
iv. Published data:
A company can take advantage of the government data resources. For instance, census supplies
information on changes in population, demographic groups and changing family structure. Similarly, a
company can purchase information from professional research agencies such as IMRB, A.C. Nielson
Company, etc.
v. Customer feedback:
This is a technique of collecting information at a low cost. The online customer feedback facilities make
it more convenient for both the customer and the firm to collect and evaluate information.
3. Marketing Decision Support System (MDSS):
Previously, the component was known as Analytical Marketing
System. While former three components supply data, the marketing
decision support system concerns more with processing or analyzing
available data. This component can improve efficiency and utility of
the whole marketing information system.
The system is used to help managers make better decisions. John D. C.
Little defines: “A marketing decision support system (MDSS) is
coordinated collection of data, systems, tools, and techniques with
supporting software and hardware by which an organisation gathers
and interprets relevant information from environment and turns it
into a basis for making decisions.”
4. Marketing research:
It acts as a tool for accurate decision-making in marketing. It is useful for studying and solving
different marketing problems. Marketing research techniques are used by manufacturers,
exporters, distributors and service organizations. Marketing research is an applied knowledge.
Hence, it provides alternative solutions to deal with a specific problem.
