Effective marketing strategies require careful planning and extensive research. While it is important to gather and analyze the right information, it is equally important to properly organize, analyze, and distribute those findings. This article will discuss the characteristics of a marketing system, how it works, what it contains, why it is important, and its pros and cons.
What is a Marketing Information System?
An MIS (marketing information system) is a system that collects, stores, analyzes, and distributes valuable marketing data in order to assist marketers in making better decisions. The input focuses on gathering relevant data from both internal and outside sources to interpret and analyze. Marketing information systems also produce a report that is distributed to key managers and members of the marketing team. Marketers can use this data to make better marketing decisions and promote the company’s success. Your business will become more efficient if it has more systems.
Why use a Marketing Information System?
Marketing information systems can be useful for many types of marketing decisions.
- Control decisions: Decisions made by middle-level marketing managers regarding corrective actions in response to deviations from strategic plans that were implemented by senior-level marketers
- Operational decisions are those that affect the day-today activities of marketing professionals, particularly when it comes to completing specific tasks.
- Strategic decisions: Decisions made by high-ranking marketing managers about matters that impact the entire organization.
Types of Data in a Marketing Information System
Different types of data are handled by marketing information systems. These are the most common types of data found in data marketing systems:
- Databases acquired
Many databases store large amounts marketing and sales data, as well as customer information. Some companies can purchase access to these databases at a low cost or even free. To help businesses make better and more informed decisions, they may be able to import the data that they have purchased into their marketing information system. There are companies that specialize in gathering data about consumer behavior, business trends, and other business trends. These companies can then generate reports for sale.
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Internal company data
You can turn your company’s internal data into valuable insights with marketing information systems. You might input data about sales or marketing activities to create reports. You may also integrate your marketing information system into an intranet or company communications network to collect information about employees, departments, or business units.
- Marketing intelligence
Marketing information systems can help you gain insight from marketing intelligence data about your target market. You can, for example, look into the possibility of obtaining marketing intelligence data from competitors’ websites and industry trade publications.
- Marketing research
Marketing information systems can be used to combine the results of marketing research with data from primary and secondary research, as well as custom and syndicated reports. It is important to get as specific and unique information about your customers, competitors and the overall business environment as possible. This will give you more insight to help you make better decisions.
What is the Marketing Information System process?
Marketing information systems employ a sequential approach to synthesize and share data to help influence decision-making. These are the steps in the process of a marketing information system:
- You must determine the right marketing metrics.
- Collect relevant data from both internal and external sources.
- To visualize trends, graph the data.
- Distribute the information on the trends to the appropriate departments
- Make use of the data to decide the best course of action for you.
What are the benefits and drawbacks of using a Marketing Information System (MIS)?
| Advantages of Marketing Information Systems | Limitations of Marketing Information Systems |
| Provide valuable data that can be used for management. | Marketing Information Systems are based purely on past data extrapolations. They cannot predict the impact of disruptive technologies. |
| This tool allows the planning of each campaign and track the performance of each event. You can assign tasks to employees and track their progress within each campaign using statistical data. This is especially important if you plan to use lean or six sigma later. | The data must be interpreted and a decision made that best represents the company. |
| Tracking and comparing how each variable is performing against the competition can provide comprehensive insight. | If the company did not know their targeted niche before they started the marketing campaign, they will likely have to do it again. This involves removing some variables and doing the same thing over and over until the right results are achieved. |
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