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The Marketing Information Systems

MIS | Marketing Information Systems: In this tutorial, we will learn about the marketing information systems, structure, and elements of a marketing information system, marketing mix subsystems, etc. By IncludeHelp Last updated : June 01, 2023

MIS is an encouragement for decision making and a vital information system for enhancing the information process. Each MIS is like interconnected subsystems, which are usually organized along with functional units within an organization.

What is the Marketing Information Systems?

A marketing Business information system is a system in which marketing data is formally gathered, stored, analyzed, and distributed to managers by their informational needs regularly. Marketing information systems help the decision making process about the marketing scheme. Their list includes:

1. Service
2. Price tag
3. Place
4. Promotion

The main aim of a marketing information system is to provide the models and tools required to facilitate input-output estimates in marketing decisions such as pricing, distribution, and input-output estimates to affect sales and profit margins.

Marketing Decision Making

Marketing decision making is assisted by the marketing information system (Marketing Information System), which is a marketing management information system. Marketing efforts are geared toward organizing, promoting, and marketing products and services to meet the needs of consumers and the goals of the company. Marketing or public relations systems (think the information the government) focuses on external information (think the media) even more than conventional information systems. They have two different subsystems to support themselves with marketplace intelligence: Getting information about the market and finding data and information about the marketplace.

The purpose of marketing research is to gather data from actual clients and prospective clients so that businesses can appeal to them. The effective practice of total quality control is focused on the factors of defining the needs of the customer (TQM). Through using the Internet to do Electronic Commerce, it is easy to collect data on real client activity.
Data that is obtained with marketing research help statistical analysis. It allows each firm to track their buyers through very detailed data points that correlate with gender, place, demography, and psychographics.

Competitive intelligence is responsible for collecting and supplying data that provides knowledge about the rivals and goods that are sold within the marketplace and it is responsible for sharing the information among the consumers. The information that the company uses in its competitors comes from annual reports that the company will publish, media-tracking services, and reports which the company bought from off-site vendors. The way to get ideas from the Internet is to gather competitive intelligence.

Structure and Elements of a Marketing Information System

The structure of a marketing information system has described below. The key components of the marketing information system are as follows –

1. Business Transaction - the transaction which occurs at a third party and records in MIS as a historic record so that it can be used for analysis whenever required.
2. Transaction Processing System - An Enterprise Information System (EIS) is a type of information system called "Transactions Processing System (TPS)" that is capable of storing, recording, updating, and retrieving the enterprise's transaction data. While transaction processing systems need to be able to have highly consistent response times, this is a very important feature when it comes to trading systems
3. Operational database - a database is an operational database that is designed to operate or run the day-to-day operations of your business. It also has a strong ability to act as an analytic engine, either through dashboards and web-based solutions or supporting the ability to incorporate analytics into organizational processes.
   
   
4. Internal database - a database in which internal records of organizations store. An internal database is a compilation of company data collected by employees using Internet-connected computers. Decentralized digital databases provide data about the information on our business and customer activity in an electronic type of data
5. External database - a database in which internal documents of organizations store. An internal database is a collection of one of your company's records, gathered from employees using an internet-connected device. Digital files consist of decentralized, encrypted data, which are not known to anyone and include details such as, who purchases made up items
6. External Database - a database in which external records of organizations store
7. Database of validation transactions – the validations of transaction refers to the accuracy and completeness of the information
8. Marketing MIS - the marketing information system includes the systematic selection, analysis, interpretation, preservation, and distribution of all of the consumer information that is available to the company.
9. Marketing DSS - marketing decision support systems is an information system that assists with decision making in the development of a marketing strategy
10. Marketing ES - marketing executive systems are intended to be used by the senior managers in decisions making

Marketing Mix Subsystems

Marketing consists of many sets of subsystems, which help the decision-making process of items like; product launch, pricing, advertisement, and delivery. These decisions are tied to the sales forecast and marketing strategies that calculate the outgoing relevancy against which the sales are measured.

There are marketing mix subsystems including:

1. Product subsystem
2. Place subsystem
3. The promotion subsystem
4. The price subsystem
5. Future cash flow assessment

1. The Product Subsystem

The product subsystem portion of the product system helps to plan the introduction to new products. The production of interesting new products is crucial in the current competitive landscape of such rapid market change. The product subsystem could support balancing the degree of risk in the overall new-product portfolio, but more actively competitive companies might expect higher degrees of risk for a probably higher reward.

It is unstructured as to whether these goods can be taken to the market place. This unstructured aspect is supported by automated data engine technologies.

1. Professional and specialist support systems help designers in their knowledge work
2. EDSs are methods to analyze the potential goods out there
3. With a desirability scale, a marketing manager may calculate the desirability of a new product
4. Electronic meeting systems help the expertise of people who are scattered in space and time to be brought to bear on the issue
5. Knowledge gained through marketing intelligence and the study of new products is essential for testing new product ideas

2. Place Subsystem

The location subsystem helps the decision-makers in making the product available to the consumer at the right place at the right time. The place subsystem is used to plan the distribution channels for the product, as well as monitor their output.

The use of information technology has greatly improved the availability of information on product movement in the distribution channel. Examples of this you can find are:

1. The Universal Product Code
2. It includes the opportunity to check credit cards at the point of sale (POS)
3. The exchange of electronic data
4. Offers the support just-in-time product delivery and addresses customized delivery

3. The Promotion Subsystem

Routinely, the promotion subsystem uses a variety of marketing practices such as advertising and personal selling to build the consumer base, market the brand and products, and generate audiences for sales.

Selecting media packages is a strong way to do your marketing because it has a wide variety of methods, such as print media, television, and electronic media such as the web. (The mere selection of media does not mean that each part functions well.) The effectiveness of the selected media mix is periodically assessed and based on its changing needs is constantly adjusted.

Data Mining relies on the collection and use of extensive databases to segment potential customers into a fashion that encourages the messaging of personalized promotional information.

Telemarketing, marketing over the telephone, has increased a lot in the past 10 years. Calls made through telemarketing channels are oftentimes well supported by technology.

Information technology is integrated straight into the sales management system. The consumer profitability analysis is used to identify high-profit and high-growth clients, as well as priorities marketing efforts to maintain these accounts.

Salesforce automation (SFA) includes the disposing of salespeople with handheld computers, which are wired into the corporation's information systems. It gives the salespeople immediate access to the information they need, and from there, it is less bureaucratic. By offering this, it allows them to sell more and work more effectively. To access the corporate databases, a user may at some stage need to access the expert systems of the corporation. This access may be justified because a user of the system is granted access to the expert information of the corporation.

4. The Price Subsystem

The pricing decisions find an especially great amount of support from DSSs and access to the database of the industry prices. Incorporating into company decision-making decisions that have very little structure facilitates this "think global, act local" attitude. These businesses have many tactics, with the common element of concentrating on profit maximization. Nevertheless, they have made many trade-offs to gain further profits.

The information systems provide an opportunity for differentiation in the customer groups and the ability to charge different prices based upon the combination of the products and/or services that are being provided in the transactions.

5. Sales Forecasting / Future Cash Flow Assessment

Based on the expected marketing mix and the orders already obtained, the sales are estimated and a polished strategy is set in place. In selling, which is a part of forecasting an industry, any quantitative methods must be tempered with human intelligence and experience. Whether the sales would have a high impact depends to a large degree on the overall dynamics of the industry whereas quantitative techniques on the other works are used for environmental forecasting - an effort to predict the social, economic, legal, and technical world in which the organization is trying to realize its plans. Sales forecasting uses several methods, including using:

1. The collective decision-making processes are used to down the view of the experts
2. A scenario analysis of this business method produces a potential environment in which each scenario is possible
3. The patterns and cycles could be extrapolated into a time-series analysis