Marketing Information

System (MIS)

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 Marketing Information System (MIS)
 An on going, organized procedure to generate,
analyze disseminate, store and retrieve
information for use in making marketing
decisions.

 MIS consists of people, equipment, and

procedures use to gather, sort, analyze,
evaluate and distribute needed, timely and
accurate information for marketing decision
makers.
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 Assessing information needs:
 Objective is to make better & timely marketing
decisions
 Must consider needs, want of all users
 Knowledge of customers & products
 Cope with change, competitor’s policies
 Analyze & respond to marketing environment

 Developing Needed Information

1. Internal Record System (Internal Data)
2. Marketing Intelligence System
3. Marketing Research System
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 1. Internal Record System (Internal Data)
 Electronic collection of information obtained from
data sources within company
 Source from different departments
 Internal reports on orders, sales, prices, costs,
inventory levels, receivables, payables etc.
I. The Order to Payment Cycle
Begins with placement of order by sales
representatives, dealers and customers then
sales department makes invoices, out of
stock items are back ordered. Items are
shipped with bills.
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 II. Sales Information System
Reports regarding sales levels.
III. Databases, Data Warehousing, Data Mining
• A set of related data that are organized, stored and
updated in a computer. Customer Database,
product database, sales database, HR & Finance
databases etc.
• A collection of data from a verity of internal &
external resources, compiled by a firm for its own
use or for its clients.
• Advanced statistical and artificial intelligence
techniques to identify patterns and to generate
meaningful relationship in masses of data that
would be unrecognizable to researchers. 6
 2. The Marketing Intelligence System
 A Marketing Intelligence System is a set of procedures
and sources used by managers to obtain everyday
information about developments in the marketing
environment.
Sources of Marketing Intelligence
a) Sales Force
b) Intermediaries
c) Competitors Offerings And Strategies
d) Customers Advisory Panel
e) Government & private Data Sources
f) Customer Feedbacks
g) Marketing Information Center
h) Media 7
 3. Marketing Research System
 Marketing Research is a systematic design,
collection, analysis and reporting of data and
findings relevant to a specific marketing situation
facing the company
 Multi-stepprocess
 Can be done by company personnel or contracted to
outside companies
Marketing Research Process

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"Marketing research is the function
that provides information used to
identify and define marketing
opportunities and problems;
generate, refine, and evaluate
marketing actions; monitor
marketing performance; and
improve understanding of marketing
as a process. Marketing research
specifies the information required to
address these issues, designs the
methods for collecting information,
manages and implements the data
collection process, analyzes, and
communicates the findings and their
implications." 9
 Step1- Defining the problem and research objectives
 Problem definition
 Research objective
 Exploratory Research- Initial research conducted to clarify and
define the nature of a problem. Does not provide conclusive
evidence. Subsequent research may required.
 Descriptive Research- Describes characteristics of a
phenomenon & provides Some understanding of the nature of
the problem.
 Causal Research- Conducted to identify cause-and-effect
relationships

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Step 2- Develop the Research Plan
 The research plan outlines data sources, spells out the
specific research approaches, sampling plan and contact
methods.
 Data Sources
 Secondary Data- Information that already exists
somewhere, collected for another purpose.
 Primary Data- Information freshly gathered for specific
purpose at hand. Primary data can be collected through 5
different research approaches.
 Research Approaches
i. Observational Research- gathering primary data by
observing relevant people, actions and situations. 11
ii. Focus Group Research- A focus group is a gathering of
6 to 10 people who are carefully selected and invited to
discuss relevant problem of interest in the presence of a
moderator.
iii. Survey Research- gathering information by asking
people questions about their knowledge, attitude,
preferences and behavior regarding problem.
iv. Behavioral Data- consumers buying behavior in stores,
catalog purchases, consumer database etc
v. Experimental Research- Scientifically valid research for
causal research.
vi. Online (Internet) marketing Research-

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 Research Instruments
i. Questionnaires- Most common method to get primary
information.
A. Closed-end Questions
a) Dichotomous- Question with two possible answers.
b) Multiple Choice- Questions with three or more answers.
c) Liker Scale- A statement with which the respondent
shows the amount of agreement/disagreement.
d) Semantic Differential- A scale containing two bipolar
words. The respondent selects the point that represents
his/her opinion.
e) Importance Scale- A scale that rates importance of some
attributes. 13
f) Rating Scale- A scale that rates some attribute from “poor
to excellent”.
g) Intentions-to-buy scale- A scale that describes the
respondent’s intention to buy.
B. Open-End Questions
a) Completely Unstructured- Respondents can answer in
unlimited number of ways.
b) Sentence Completion- Respondents complete an
incomplete sentence.
c) Word Association- Words are presented, one by one and
respondents responds the 1st word that comes in mind
d) Story Completion- Respondent completes uncompleted
story. 14
e) Picture- A picture of two characters, with one
making a statement is shown. Respondent is
asked to reply on behalf of other and fill empty
balloon
f) Thematic Apperception Test- A picture is
presented and respondent is asked to makeup a
story about what he thinks is happening or may
happen.
II. Mechanical Instruments- use of machines for
research.

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 Sampling Plan-
3 decisions
a) Sampling unit: Who is to be surveyed? Selection of
target population that will be sampled.
b) Sample Size- How many people should be surveyed
c) Sampling Procedures- How to select the people in
sample.
Probability and Nonprobability Samples
A. Probability Sample
 Simple random sample- Every member of the
population has an equal chance of selection
 Stratified random sample-The population is divided
into mutually exclusive groups (such as age groups), and
random samples are drawn from each group 16
 Cluster (area) sample-The population is divided into
mutually exclusive groups (such as city blocks), and the
researcher draws a sample of the groups to interview.
 Systematic Sample- Every Kth Person is to be selected.
Kth Person=Population / Sample Size
B. Nonprobability Sample
 Convenience sample- The researcher selects the most
accessible population members
 Judgment sample- The researcher selects population
members who are good prospects for accurate
information.
 Quota sample- The researcher finds and interviews a
prescribed number of people in each of several
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categories.
 Contact Methods
 Mail questionnaire
 Telephone Interview
 Online- Internet
 Personal interviewing
Arranged interviews
Intercept interviews

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 Strengths & weaknesses of Contact Methods
Mail Telephone Personal Online

Flexibility Poor Good Excellent Good

Quantity of data Good Fair Excellent Good

collected
Control of Excellent Fair Poor Fair
interviewer effect
Control of sample Fair Excellent Fair Poor

Speed of data Poor Excellent Good Excellent

collection
Response rate Poor Good Good Good

Cost Good Fair Poor Excellent

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 Step 3- Collect the information
 Most difficult phase
 Lack of cooperation from respondents
 Biases & errors may occur
 Step 4- Analyze Information
Use of statistical methods for tabulation of data, frequency
distribution, averages, measures of dispersion etc.
 Interpretation of information
 Step 5- Present the Findings
 Step 6- Make Decision: Decision on the bases of research
findings.
 Marketing Decision Support System (MDSS)- A coordinated
collection of data, systems, tools, and techniques with support of
Hardware & software to gather & interpret relevant information from
business & environment & turning it into a base of marketing action.
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 Difference Between Marketing Research & Market Research
 Market research is simply research into a specific market. It is a very
narrow concept.
 'Marketing' research is much broader. It not only includes 'market'
research, but also areas such as research into new products, or modes
of distribution such as via the Internet. Here are a couple of
definitions:
 "Marketing research is the function that links the consumer, customer,
and public to the marketer through information - information used to
identify and define marketing opportunities and problems; generate,
refine, and evaluate marketing actions; monitor marketing
performance; and improve understanding of marketing as a process.
Marketing research specifies the information required to address these
issues, designs the methods for collecting information, manages and
implements the data collection process, analyzes, and communicates
the findings and their implications."
 American Marketing association - Official Definition of Marketing
Research
"Marketing research is about researching the whole of a company's
marketing process." 21