Chapter - II Marketing Information System Fundamentals of MKIS
The Marketing Nutshell Customer Competitor Company 3C’s Segmentation Targeting Positioning STP Product, Price, Place, Promotion “Integrated Marketing” 4P’s + 7P’s People, Process and Physical Evidence
Development of Marketing Information System From local to national to global business From price to non-price competition From buyer needs to buyer wants
… consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers (Kotler) ... a set of procedures and methods for the regular, planned collection, analysis, and presentation of information for use in making marketing decisions Marketing Information System (Churchill) (Marshall and LaMotte) … a comprehensive and flexible, formal and ongoing system designed to provide an organized flow of relevant information to guide marketing decision making
Kotler’s Model of MKIS Marketing Information System Assessing Information Needs Developing Information Internal Records Marketing Intelligence Marketing Managers Analysis, Planning, Implementation, Control Marketing Environment Target Markets, Marketing Channels, Suppliers, Competitors, Publics, Macroenvironment Forces Distributing Information DecisionSupport Marketing Research Marketing Decisions and Communications (Kotler)
Developing Information Distributing Information Functions of MKIS • Assessing Information Needs • Developing Information • Distributing Information Assessing Information Needs Internal Records Marketing Intelligence DecisionSupport Marketing Research
Marketing Information Systems Interactive Marketing Sales Force Automation Customer Relationship Management Sales Management Market Research And Forecasting Advertising and Promotion Product Management
Interactive Marketing • Customer based marketing process that is based on using the Internet, Intranets and extranets to establish two – way transactions between a business and its customers or potential. • This is enabled by various Internet technologies, including chat and discussion groups, Web forms and questionnaires, instant messaging and e-mail correspondence.
Sales Force Automation • Computers and the internet are providing the basis for sales force automation • Many companies are viewing sales force automation as a way to gain strategic advantage in sales productivity and marketing responsiveness. • Salespeople use their PCs to record sales data as they make their calls on customers and prospects during the day.
Customer Relationship Management (CRM) • A multifaceted process, mediated by a set of information technologies • Focuses on creating two-way exchanges with customers • Firms have an intimate knowledge of their needs, wants, and buying patterns • CRM is intended to help companies understand, as well as anticipate, the needs of current and potential customers
Sales Management • Sales reporting - source for motivating sales managers, awarding best managers with accurate and reliable sales reports • Sales reports are required for investors, partners and government, • Sales management system should have advanced reporting capabilities to satisfy needs of different target audiences and help sales force to be more effective and make more sales.
Targeted Marketing Important tool in developing advertising and promotion strategies. Five Major Components: 1. Community – Sports, Music, House Keeping, Fitness.. 2. Content – messages aimed at target audience. 3. Context – relevant to the content of a product or service. 4. Demographic / Psychographic – unmarried, male, college graduates, middle income etc., 5. Online Behaviour – identifying a customer visit through cookie files
Marketing Research ‘The systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services’ American Marketing Association
Product Management • An organizational function within a company dealing with the planning or marketing of a product or products at all stages of the product lifecycle Product planning • Defining new products • Gathering market requirements • Building product roadmaps, particularly Technology roadmaps • Product Life Cycle considerations • Product differentiation Product marketing • Product positioning and outbound messaging • Promoting the product externally with press, customers, and partners • Bringing new products to market • Monitoring the competition
Manufacturing Information System • Systems that deal with the planning, development, and production of products and services and with controlling the flow of production. • Information systems used for operations management and transaction processing support all firms that must plan, monitor and control inventories, purchases and the flow of goods and services.
Manufacturing Resource Planning Systems Shop Floor Scheduling Shop Floor Control Machine Control Robotics Control Process Control Manufacturing Execution Systems Engineering Systems Production Forecasting Computer Aided Design Production Scheduling Computer Aided Engineering Materials Requirement Planning Capacity Planning Computer Aided Process planning Enterprise Resource Planning Production Cost Control Product Simulation and Prototyping Quality Control Computer – Integrated Manufacturing
Computer Integrated Manufacturing • A variety of manufacturing IS, many of them Web enabled, are used to support Computer – Integrated Manufacturing (CIM). • CIM is an overall concept that stresses that the objectives of computer – based systems in manufacturing must be to: • Simplify – production process, product designs and factory organisation • Automate – production processes and the business functions • Integrate – all production and support processes using computer networks.
Computer Integrated Manufacturing CIM Supports the concepts of • Flexible manufacturing systems • Agile Manufacturing • Total Quality Management Computers are used to help engineers design better products using Computer - Aided Engineering (CAE) and Computer - Aided Design (CAD) and computer aided process planning Also used for Materials Requirement Planning (MRP) and Manufacturing Resource Planning.
Computer Aided Manufacturing (CAM) Automate the production process by monitoring and controlling the production process in a factory Manufacturing Execution System (MES) - Performance monitoring IS - Monitor, track and control the five essential components of production process : materials, equipment, personnel, instructions and specifications. Process Control Use of computers to control an ongoing physical process. Petroleum refineries, cement plants, steel mills, chemical plants etc., Use of sensors to measure pressure and temperature changes Machine Control Use of computers to control the actions of machines
Human Resource IS HRIS is designed to support • Planning to meet the personnel needs of the business • Development of the employees to their full potential • Control of all personnel policies and programs Also support, • Recruitment, selection and hiring • Job placement • Performance appraisal • Employee benefit analysis • Training and Development • Health, Safety and Security
Training and Development Compensation Administration Staffing - Human Resource Planning - Labor force tracking - Succession Planning - Performance appraisal planning - Contract costing - Salary forecasting Strategic system - Labour cost Analysis and budgeting - Turnover analysis - Training effectiveness - Career Matching - Compensation effectiveness and equity analysis - Benefit preference analysis Tactical system - Recruitment -Workforce planning / scheduling - Skill assessment - Performance evaluation - Payroll control - Benefits administration Operational System
HRM and the Internet • A major force for change in human resource management. • Online HRM system for recruitment. • Establishing link with the job applicants through e – mail. • Wealth of information for employers and job hunters.
HRM and Corporate Intranets • Intranet technologies allow companies to process most common HRM applications over their corporate intranet. • Intranets allow HRM department to provide round the clock services to their employees. • Intranets can collect information from their employees for input for their files.
Accounting Systems • Record and report business transactions and other economic events • Online Accounting Systems
Accounting Systems • Six widely used accounting systems • Order processing • Captures & processes customer orders and produces data needed for sales analysis and inventory control • Inventory Control • Processes data reflecting changes in items in inventory. • Helps provide high-quality service while minimizing investment in inventory & inventory carrying costs
Accounting Systems • Accounts Receivable • Keeps records of amounts owed by customers from data generated by customer purchases and payments • Accounts Payable • Keeps track of data concerning purchases from, and payments to, suppliers • Payroll • Receives and maintains data from employee time cards and other work records • General Ledger • Consolidates data received from accounts receivable, accounts payable, payroll, & other accounting information systems
Financial Management System Computer based financial management system support business managers and professional in decisions concerning.. 1. The financing of a business and 2. The allocation and control of financial resources within a business. FMS include, • Cash and investment management • Capital budgeting • Financial forecasting • Financial planning
Information systems in Finance Cash Management Investment Management Capital Budgeting Financial Planning Manage short – term and other securities Evaluate risk / return of capital expenditures Forecast and manage cash position Forecast financial performance and financing needs
Cash Management • Collects information on all cash receipts and disbursements on a real-time or periodic basis • Investment Management • Helps the financial manager make buy, sell, or hold decisions for each type of security • Helps the financial manager develop the optimum mix of securities in order to minimize risk and maximize return
Capital Budgeting • Involves evaluating the profitability and financial impact of proposed capital expenditures • Allows financial managers to analyze long-term expenditure proposals for plant and equipment • Financial Forecasting & Planning • Evaluate the present and projected financial performance of the company • Help determine financing needs and analyze alternative methods of financing • Explore what-if and goal-seeking questions
Transaction Processing Systems • TPS are cross functional information systems that process data resulting from the occurrence of business transactions. • A transaction processing system (TPS) provides data for other business processes • Management information system/decision support system (MIS/DSS) • Special-purpose information systems • Transactions are events that occur as part of doing business such as sales, purchase, deposits, withdrawals, refunds and payments.
Data entry • The capture of business data • Transaction processing • Two basic ways • Batch processing where transaction data are accumulated & processed periodically • Real-time processing where data are processed immediately after a transaction occurs