What is a Marketing Information System?
Market information systems (otherwise known as Market Intelligence Systems, Market Information Services, MKIS or MIS (not to be confused with Management Information Systems) are information systems used in gathering, analyzing and disseminating information relevant to marketers. There are many different factors collected and analyzed by MKIS, such as:
- Production, distribution and delivery costs
- Profit vs. costs (ROI)
- Effectiveness of advertising/special offers/discounts
- Target market penetration
- Market share
- Competitive information
- Financial indicators
- Demographic data
- Other additional factors
To the extent possible, the foregoing information will be gathered, from both internal and external sources, as it pertains to the company itself, to competitors, and to stores and distributors selling the product.
The algorithms used to analyze the information can be quite elaborate, or extremely simple, depending upon the needs of the marketer and the complexity of the data collected. Analyses are performed, so as to provide the marketer with reliable indicators of past, present and forecasted future performance, so that sound decisions may be implemented on a timely basis, to either mitigate or take advantage of market fluctuations.
The last phase of the MIS effort is the dissemination of the analyses to the appropriate areas. Sales forecasts are often developed by MKIS, and must be provided to the Production and Material Management groups for planning. Accounting, having also provided some of the input to the MKIS, will receive the forecast as well, for cashflow planning purposes. The Sales department will also make any adjustments necessary to their sales quotas using this information. Even the plant maintenance crew may have to adjust their planned maintenance to accommodate projected production requirements.
As can be seen, the marketing information system is a critical tool for monitoring, planning and implementing nearly every phase of the company’s offering, and in maintaining or improving market position.
Written by: Matt
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