MARKETING INFORMATION SYSTEM

1. MARKETING INFORMATION SYSTEM

2. “ Know your enemy and know yourself, and in a hundred battles you will never be in peril”-Sun-Tzu

3. Marketing information consists of people, equipment and procedures to gather,sort,analyze,evaluate and distribute needed, timely and accurate information to marketing decision makers. • Marketing decision makers use the data to identify and solve marketing related problems.

4. According to the above definition the MKIS has the following features • People’s Involvement • Equipment based • Continuous Process • Provides Information

5. Marketing Information system supplies three types of information. • Recurrent Information • Monitoring Information • Requested Information

6. Recurrent Information This is the data that an MIS supplies periodically about the market share of a specific product and customer’s awareness of company’s brands. The data may be supplied on weekly, monthly or yearly basis.

7. Monitoring Information This is the data obtained from the regular scanning of certain sources. Marketing managers may need data related to competition or the industry. It is essential so that marketing managers can be alert and identify potential problems

8. Requested Information This information is developed in response to some specific request by the marketing manager. Secondary data or primary data through survey research are collected in response to the specific request. The MIS supplies the requested information for decision making.

9. Marketing Information system External data Marketing Research division Marketing Information system Marketing Managers Division Internal data Requested information

10. Sources of Marketing Information . The MIS information inputs come from different sources, viz., both within and outside firms . Some of the commonly used internal sources of information are: • Sales Analysis- The marketing information system retrieves sales information and put them in usable and disaggregated form. It detects various marketing strengths and weaknesses. Computer assisted sales analysis uncovers significant details for management needs.

11. Cost Analysis-The cost analysis is possible with the effective accounting system. The classification and analysis of the cost of production, cost of distribution and selling may provide adequate information for the management purposes • Financial Records- The financial records & publications may provide adequate opportunities for management of sales & marketing activities .Many companies prepare periodical final statement to observe the balance of each item of financial records.

12. Importance of marketing information system Anticipation Of Customer Demand- Systematic Approach- Economic indicator- Closing Information Gap Non-price competition Significance of Analysing Competition- Development of Technology- Understanding the Consumer- Marketing Planning- Evaluation and Control

13. Components of marketing information system • Internal record system • Marketing Intelligence system • Marketing research • Decision support system

14. Internal record system • Costumer orders and complaints • Bills and invoices • Sales reports • Marketing research reports • Other miscellaneous reports

15. Marketing Intelligence system • Informal methods : • Magazines, trade journals • Costumers, suppliers, channel members and allied • Functional managers • Formal Methods • Marketing Channels • Job openings • Sales personnel • Private Intelligence agencies • Marketing information centers

16. Marketing research • It is the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing. • Product Research • Advertising research • Sales research • Motivation and attitude research

17. Decision support system • Data Bank • Statistical Bank • Model Bank

18. Conclusion Marketing information system is an important factor in a growing business today with increased competition and environmental changes affecting the consumer world . It is the marketing information system that makes or unmakes any organization in the perspective of marketing strategy .Marketing information system very aptly called as life blood of marketing.

19. Consumer & Business Buyer Behavior

20. Buyer Behavior • Objects • Reasons • Occasions • Place • Frequency • Use methods • Frequency of use • Disposal methods

21. Buyer Behavior • Buying Behavior is the decision processes and acts of people involved in buying and using products. • Need to understand: • why consumers make the purchases that they make? • what factors influence consumer purchases? • the changing factors in our society. • Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for: • Buyers reactions to a firms marketing strategy has a great impact on the firms success. • The marketing concept stresses that a firm should create a Marketing Mix that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.

22. Perception • Process by which an individual selects, organizes, and interprets information to form a cohesive picture about an entity • Perceptions affect consumer behavior • However, remember that individuals can perceive the same entity in different ways

23. Perception • Selective Attention: Receive some messages and screen out the rest • An average person is exposed to 1500 ads or brand messages a day • Most of these are screened out; So, how do marketers capture mind space? • People are more likely to notice stimuli that relate to current needs • People are more likely to notice stimuli they anticipate • People are more likely to notice stimuli that deviate relatively larger than others • Marketers must bypass attention filters; provide unexpected stimuli (salesperson, sudden offers)

24. Perception • Selective Distortion: • Tendency to interpret/distort information to be consistent with prior brand and product beliefs • Can work to the advantage of marketers of strong brands • A car may seem to drive smoother • A beer may taste better

25. Consumer Buying Decision Process Marketers Must Identify and Understand: Who Makes the Buying Decision Types of Buying Decisions Stages in the Buying Process

26. Understand Buying roles Buying behavior Buying decision process Initiator Influencer Decider Buyer User Consumer Buying Decision Process

27. Understand Buying roles Buying behavior Buying decision process Complex buying behavior Dissonance-reducing buying behavior Habitual buying behavior Variety-seeking buying behavior Consumer Buying Decision Process

28. Understand Buying roles Buying behavior Buying decision process Five stages in the consumer buying process The amount of time spent in each stage varies according to several factors Consumer Buying Decision Process

29. Need Recognition Information Search Cultural, Social, Individual and Psychological Factors affect all steps Evaluation of Alternatives Purchase Postpurchase Behavior Consumer Decision-Making Process

30. Consumer Buying Decision Process Five-Stage Model of the Consumer Buying Process

31. How do you know when to shop? What are the triggers that initiate an awareness & search? • What are the internal & external sources of these triggers?

32. quickly list 5 items you have purchased in the past month • reexamine how long it took you to make a decision on each • why did such a difference in decision occur?

33. Need Recognition • When a current product isn’t • performing properly • When the consumer is running out of an product • When another product seems • superior to the one currently used Marketing helps consumers recognize (or create) an imbalance between present status and preferred state Preferred State

34. Need/Problem Recognition Can be triggered by internal or external stimuli Needs become wants, which lead to behavior Marketing stimuli can stimulate a desire for information Need Recognition

35. Sources of information: Internal Sources Personal Sources External Sources Time, effort and expense dedicated to information search depends on: Degree of risk involved in the purchase Amount of expertise with the product category Actual cost of the search Considered set: A narrowed down set of alternatives that the customer is considering Information Search

36. Determinants of External Search

37. Consumer Buying Decision Process Successive Sets Involved in Consumer Decision Making

38. Evaluation of Alternatives • Customers evaluate products as bundles of attributes • Brand attributes • Product features • Aesthetic attributes • Price • Customers place different levels of importance on attributes • Important considerations in the evaluation stage: • Products must be in the evoked set • Consumers’ choice criteria must be understood • Marketing programs must be designed to influence consumers’ opinions about product or brand image

39. Purchase Decision • Purchase intention and the act of buying are distinct concepts • Potential intervening factors between intention and buying (car example): • Unforeseen circumstances • Angered by the salesperson or sales manager • Unable to obtain financing • Customer changes mind • Key issues in the purchase decision stage: • Product availability • Possession utility

40. Postpurchase Evaluation • Four possible outcomes in the postpurchase stage: • (1) Delight • (2) Satisfaction • (3) Dissatisfaction • (4) Cognitive Dissonance • Firm’s ability to manage dissatisfaction and cognitive dissonance is: • A key to creating customer satisfaction • A major influence on word-of-mouth communication

41. Cognitive Dissonance ? Did I make a good decision? Did I buy the right product? Did I get a good value? Postpurchase Behavior Marketing Can minimize through: Effective Communication Follow-up GuaranteesWarranties Underpromise & overdeliver

42. High Involvement and Low involvement purchase

43. High involvement purchase • Consists of few information • Contains high price level • Has long term benefits and social importances

44. Low involvement Purchase • Consists of lower price level • Full information • Lower social importance • Less effort in buying • Short term benifits

45. Determinants of Consumer Behaviour • Economic factors • Income of the consumers • Saving loan and credit facility • Liquid assets • Economic conditions • Attitudes towards spending

46. Personal Factors • Age level • Gender • Family size and life cycle • Lifestyle • Occupation

47. Psychological Factors • Motivation • Perception • Learning • Personality • Attitude and belief

48. Socio-cultural Factors • Family • Reference group • Social class • Culture

49. Business Markets and Behavior

50. Organisational Buying • It refers to the buying behavior of organization that buy products for business use, resell or to make other products. • Business and industries • Resellers • Government • Non government organisation