1 Marketing Information System (MKiS) • What ? • Comprises all computer and non-computer systems which assist the marketing function to operate effectively. • Therefore, Mkis include many systems which are not generally thought of in marketing system (such as Ledger, accounts receivable, production-planning systems). • Def: A formal system designed with the objective of creating an organised, regular flow of relevant information for use and analysis by marketing decision makers.
2 Marketing Information System (MKiS) • Built up from several different systems, each with its own purpose which may or may not be marketing related. • The design can rely on existing systems within organisation and are likely to end-up as bespoke, compromise solutions which are unique to each company.
The concept of Mkis is not limited to the computer hardware and software alone. The emphasizes is on the provision of relevant information rather than the technology itself. The system: should not be developed as isolated neither as an ad-hoc system. Should involve many aspects of management. Draw data from many different sources Organise it so regular and useful information can be provided to marketing managers. Requires other integral parts which serve as tools that will allow marketing people to analyse and manipulate data to make decision. E.g. DSS, Data Warehousing and Data Mining 3 Marketing Information System (MKiS)
The Information must be relevant to marketing decisions. High-level marketing decision makers must be included in planning the information requirements Marketing managers are expected to carry out further analyses of the information provided by the system. 4 Marketing Information System (MKiS)
5 Marketing Information System (MKiS) - Users • MKiS is accessed by many different groups with different objectives and different types of information. • Mainly they are divided into 3 groups: • Senior Marketing Management (concerning on the overall strategic positioning of brands and resource allocation between brands. They decide which one should be milk for cash and which should be invested for growth.)
6 Marketing Information System (MKiS) - Users • Middle Marketing Management (This level will process information and summarise it in report form to submit to Senior Marketing Managers) • Information is needed for day-to-day marketing activities: • Marketing planning -- Monitoring Competitors’ marketing initiatives • Marketing Research -- Product Management • Marketing Segmentation -- Performance management • Media Selection -- New Product Development • Sales Promotions -- Measuring ADS effectiveness
7 Decision Support System (DSS) • Def: A Subset of the broader category of MIS used by people in managerial and executive positions. • An Integrated Information System and Complex Database and Decision System. • It is a support tool that help managers deal with problems where computer-based analysis is used to complement the manager’s own judgement. Allowing the application of realistic decision rules to market simulations, such as ‘what if’ questions. • Allows direct interaction between the decision-maker and the information base.
8 Decision Support System (DSS) • Examples of DSS : • Excel, Lotus 1-2-3, Data Mining and Neural Networks. • Data Mining: Used to find further sub-segments instead of focusing on standard category. Integral of Data Warehouse (Database) and OLAP (on-line analytical processing) • Neural Network (a.k.a. AI) - The fundamental concept is that a computer can be ‘trained’ to solve problem in a similar fashion to human brain, by recognizing familiar patterns. E.g Micro-marketing, risk management and fraud detection systems.
Information For Marketers • To implement the marketing concept effectively, information is required especially on the characteristics, needs and wants of the customers. • Why? Due to intense competition, high cost of advertising and new product development. Thus marketers are required to well research and plan their marketing strategies. For this, they need effective information.
Information For Marketers • Accurate and timely information can prevent firms from building campaigns on mistaken assumptions. • MKiS can produce reliable, accurate and timely information.