Page 50 - DMGT408DMGT203_Marketing Management

Unit 2: Understanding the Marketplace and Consumers

Notes
Figure 2.6: Marketing Information Systems and its Sub-systems

Information Strategic
Data
Decisions
Marketing
Environment Internal Marketing
Report Research
Markets System System Control
Channels Decisions
Competitors
Political Marketing
Legal Intelligence Marketing
Economy System Models Operational
Technology Decisions
Marketing Decisions & Communications

The explanation of this model of an MIS begins with a description of each of its four main
constituent parts: the internal reporting systems, marketing research system, marketing
intelligence system and marketing models. It is suggested that whilst the MIS varies in its
degree of sophistication – with many in the industrialised countries being computerised and
few in the developing countries being so – a fully fledged MIS should have these components,
the methods (and technologies) of collection, storing, retrieving and processing data
notwithstanding.
Internal reporting systems: All enterprises which have been in operation for any period of time
have a wealth of information. However, this information often remains under-utilised because
it is compartmentalised, either in the form of an individual entrepreneur or in the functional
departments of larger businesses. That is, information is usually categorised according to its
nature so that there are, for example, financial, production, manpower, marketing, stockholding
and logistical data. Often the entrepreneur, or various personnel working in the functional
departments holding these pieces of data, do not see how it could help decision makers in other
functional areas. Similarly, decision makers can fail to appreciate how information from other
functional areas might help them and therefore do not request it.

!
Caution The internal records that are of immediate value to marketing decisions are:
orders received, stockholdings and sales invoices. These are but a few of the internal
records that can be used by marketing managers, but even this small set of records is
capable of generating a great deal of information. Below, is a list of some of the information
that can be derived from sales invoices.

1. Product type, size and pack type by territory
2. Product type, size and pack type by type of account
3. Product type, size and pack type by industry
4. Product type, size and pack type by customer

5. Average value and/or volume of sale by territory
6. Average value and/or volume of sale by type of account

LOVELY PROFESSIONAL UNIVERSITY 43