What are the three sources of internal information that can be useful for marketing decision making?

Marketing intelligence includes the procedures and data sources used to obtain information from the business environment for decision making. This information can be external or internal. This data usually pertains to various political, economical, technological and sociocultural elements. It also can include information on customer demographics and competitors. Small-company managers usually collect marketing intelligence data either by themselves or through various research or government agencies.

Market Reports

1. Small companies often want to determine how they are faring in certain markets. Hence, they may order secondary research reports from companies like Nielsen or Forrester Research. One important component of market data is market share, which tells a company what percentage of the market it controls in both units and dollars. Small-business owners also can use the data to determine whether there's room for growth in certain markets.

Competitive Information

1. Another type of marketing intelligence is competitive information. Business owners usually use industry reports, articles, newsletters and personal observation to study their competitors. They may also collect competitive brochures or study their websites. Small companies use competitive information to learn more about competitors' investments, organizational changes and strategies. They may also purchase competitive products to study various features and technology. Marketers may also study competitive information to determine the types of customers they serve.

Internal Databases

1. Marketing managers also use market intelligence they obtain from customers. This information goes far behind the typical name, address and emails of customers. For example, a marketing manager may have detailed information about key customers, including their average age, income, education and what they typically spend per visit. This allows companies to create profiles of typical customers, characteristics they use to target other noncustomer consumers.

Using Competitive Intelligence

1. Small companies often use competitive intelligence to conduct analyses of strengths, weaknesses, opportunities and threats (SWOT). A company usually uses a SWOT analysis to compare its strengths and weaknesses against key competitors. It then uses those advantages to identify various opportunities in the marketplace. For example, a plumbing company may have stronger distribution channels in place. It may then use those distribution channels, including showrooms and retail stores, to get more product exposure. Similarly, a small company strong in customer service may include that fact on websites, brochures and other printed materials.

You search on Google for a t-shirt but don't seem to find the exact one you were looking for. After that, you go to Instagram, and t-shirt ads start popping everywhere. How is that possible, and how does it work? How do companies use marketing information systems to improve their marketing campaigns? What is the importance of using a marketing information system?

You'll find out the answers to these questions and much more in this explanation.

Marketing Information System Definition

Marketing information systems help companies gather the necessary information to create customer value, engagement, and stronger customer relationships.

The marketing information system comprises of procedures and people who gather information, assess it, and use it to help decision-makers generate and validate actionable customer and market insights.

Meticulous planning and extensive research are necessary for developing successful marketing strategies. It is vital to collect relevant information and data. However, it is also crucial to properly organise, evaluate, and communicate their results.

A marketing information system, sometimes known as an MIS, is a system that helps marketers improve their decision-making by collecting, storing, analysing, and disseminating relevant data about their marketing efforts.

The primary emphasis of the input stage of a marketing information system is the collection of pertinent data, both internal and external, for the purposes of analysis and interpretation.

The distribution of the results obtained from a marketing information system to all necessary members and management of an internal marketing team is the output of a marketing information system.

After analysing the data, marketers can make more informed marketing choices, ultimately benefiting the company's profitability.

A marketing information system may be helpful in a variety of different marketing choices, including the following categories of decisions:

• Control choices: The choices about corrective measures that mid-level marketing managers make based on deviations from strategic plans that higher-level marketing managers execute.

• Operational decisions: decisions on the day-to-day activities of marketing professionals, particularly those regarding the completion of specific tasks.

• Strategic decisions: Refers to those decisions made at a high level by marketing managers and concern issues relevant to the whole business, such as policies, goals, and structures of the firm.

Marketing Information System Components

Marketing information systems enhance marketing efforts and impact decision-making by combining multiple data gathering, processing, analysis, and reporting capabilities. Marketing information system components include internal reports, marketing data support systems, marketing intelligence, and marketing research.

Marketing information system components: Internal reports

The information gathered within the firm is included in internal reports or records. This data may give you valuable insights, particularly about a company's skills, accomplishments, and potential for progress. The following are some examples of data that companies may include in internal reports:

• Inventories,

• Cash flows,

• Expenses related to the marketing staff,

• Product expenses that are payables,

• Receivables.

Marketing information system components: Marketing data support system

A marketing data support system comprises many software applications and other instruments businesses may use to gather, organise, and evaluate data. A single system could use several apps or tools, each of which is tailored to do a particular job. The system, comprised of collaborative programmes, is at the centre of how the marketing information system operates.

Marketing information system components: Marketing intelligence

Marketing intelligence refers to gathering data or information from third-party sources, such as professional organisations or specialised magazines. It contains information about the external marketing environment. Utilising this information gives the organisation a deeper understanding of its marketing strategy and its rivals within the industry.

Marketing information system components: Marketing research

Research in marketing sometimes takes the form of project-based research intended to answer particular marketing questions. It often uses various statistical methods and may include internal and external data. The company must gather, organise, evaluate, and interpret the data to process marketing research results. The following are some instances in which marketing research could be applicable:

• Alterations to the conditions of the marketing environment,

• Competitor strategies,

• Alterations in the preferences or tastes of the consumer,

• Launches of brand-new products.

Marketing Information System Process

Marketing information systems use a sequential process to aggregate data, exchange discoveries, and ultimately impact decision-making. Marketers may break down the marketing information system process into the following steps:

• Find out which marketing KPIs are the most important,

• Collect pertinent information from both internal and external sources,

• Run statistical analyses on the data to understand the patterns,

• Analysts should send the insights to the necessary departments,

• Use the information to determine the best way to proceed with the situation.

Marketing Information Systems Examples

As marketing information systems enable companies to improve their offerings and the quality of their decisions significantly, almost every company has a marketing information system.

For instance, many retail establishments provide their customers with loyalty cards, and many companies give consumers the ability to create profiles in their online stores to track their purchases more easily.

Creating customer profiles and loyalty programmes can help organisations acquire data about their customers. They maintain a record of their purchasing patterns, including the total amount of money spent on purchases, their degree of involvement, the products they are drawn to, and so on.

Businesses can use this information to control their pricing strategy, develop more effective marketing campaigns, and devise relevant offers at the ideal location and appropriate time.

Online booking providers use similar procedures. They keep track of their customers' routines, preferences, and itineraries to gain insights and act on those findings.

For instance, airline and hotel reservation services maintain tabs on all the data described above to utilise it as a competitive advantage. They can keep track of demand and adjust rates accordingly as it changes. During the off-season, they can also provide loyalty discounts to their repeat customers.

Marketing Information System Importance

Marketing information system importance comes from the helpful insights it provides. Marketing information systems refer to all data from facts, opinions, viewpoints, rules, and regulations required to make essential marketing choices.

The information comes from various sources, including customers, rivals, the firm's sales force and other employees, government sources, specialist agencies, etc.

The management information system (MIS) offers information pertinent to the business environment, including its internal and external settings. This kind of knowledge is vital for making sound decisions.

The use of MIS allows managers to spot patterns in the market effectively.

Changing tendencies may be seen in various areas, including pricing, product design, packaging, advertising strategies, etc. Having such information enables companies to adjust their strategies accordingly.

In reaction to shifting patterns in the external environment, managers can make sound judgments about pricing, product designs, and other aspects of the business.

It is necessary to examine the market to design the product, choose its price, promote it, and distribute it. Such planning will become much more challenging if the firm does not access sufficient information.

Suppose a company was to design a new type of electric vehicle (EV) that would become a direct competitor to Tesla. In that case, the company should have extensive information on all the current and potential EV consumers. Neccessary market information would include customer preferences, the value of the EVs, and what a new entrant can offer to make customers want to buy the new EV.

Marketing information systems guarantee that an organisation's employees communicate effectively with one another. It offers team members reliable information that keeps all internal teams informed and focused on specific tasks and objectives. Giving everyone the same access to the same information may also assist in reducing the likelihood of misunderstandings occurring.

Implementing a marketing information system may contribute to a firm's overall accomplishments. A company may arrive at more innovative choices if it uses data that is effectively structured. It could also find new methods to enhance or extend an organisation's system and create more efficient strategies overall.

Marketing Information System - Key takeaways

• A marketing information system helps marketers improve their decision-making by collecting, storing, analysing, and disseminating relevant data about their marketing efforts.
• The components of a marketing information system include internal reports, marketing data support systems, marketing intelligence, and marketing research.
• Marketing information systems use a sequential process to aggregate data, exchange discoveries, and ultimately impact decision-making.
• Marketing information systems refer to all data from facts, opinions, viewpoints, rules, and regulations required to make essential marketing choices.

Question

Explain the marketing information system.

Answer

The marketing information system comprises of procedures and people who gather information, assess it, and use it to help decision-makers generate and validate actionable customer and market insights.

Question

What is necessary to develop a successful marketing strategy?

Answer

Extensive planning and research.

Question

___________ stage of a marketing information system is the collection of pertinent data, both internal and external, for the purposes of analysis and interpretation. 

Answer

Question

What are some of the decisions MIS helps make?

Answer

Control choices

Operational decisions

Strategic decisions

Question

________: The choices about corrective measures that mid-level marketing managers make based on deviations from strategic plans that higher-level marketing managers execute.

Answer

Question

________ are decisions on the day-to-day activities of marketing professionals, particularly those regarding the completion of specific tasks.

Answer

Question

____________ Refers to those decisions made at a high level by marketing managers and concern issues relevant to the whole business, such as policies, goals, and structures of the firm.

Answer

Question

Marketing information systems enhance marketing efforts and impact decision-making by combining multiple data gathering, processing, analysis, and reporting capabilities. 

Answer

Question

What are the marketing system components?

Answer

Marketing information system components include internal reports, marketing data support system, marketing intelligence, marketing research.

Question

The information gathered within the firm is included in ______________.

Answer

Internal reports or records

Question

The term "_______" refers to gathering data or information from third-party sources, such as professional organisations or specialised magazines.

Answer

Question

What is a marketing data support system?

Answer

A marketing data support system comprises many software applications and other instruments businesses may use to gather, organise, and evaluate data.

Question

Explain marketing research.

Answer

Research in marketing sometimes takes the form of project-based research intended to answer particular marketing questions. It often uses various statistical methods and may include internal and external data.

Question

Give an example of marketing information system.

Answer

For instance, many retail establishments provide their customers with loyalty cards, and many companies give consumers the ability to create profiles in their online stores to track their purchases more easily. 

Question

What types of data are included in marketing information systems?

Answer

Marketing information systems refer to all data from facts, opinions, viewpoints, rules, and regulations required to make essential marketing choices.