meljun cortes - marketing information system
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Marketing Information Systems
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Introduction
Marketing was the first functional area to
exhibit an interest in MIS
The marketing information system has threesubsystems; the accounting information
system (AIS), marketing research, and
marketing intelligence
Functional information systems: the
conceptual systems should be "mirror
images" of the physical systems17-2
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Functional information systemsMarketing
information
system
Manufacturing
information
system
Finance
information
system
Human resource
information
system
Marketing
function
Manufacturing
function
Finance
function
Human
resources
function
Physical system of the firm
Functional Information Systems Represent
Functional Physical Systems
Information
resource
information
system
Information
Services
function
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Marketing Principles
Marketing mix
Product
Promotion
Place
Price
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The Marketing Information
System (MKIS)
Kotler's marketing nerve center
3 information flows
Internal
Gathered in firm
Intelligence
From environment
Communications
To environment
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FirmEnviron-
ment
Marketing intelligence
Marketing communications
Internal
marketing
information
Kotlers Information Flows
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Marketing Information System
(MKIS) Definition
A computer-based system that works in
conjunction with other functionalinformation systems to support the firm's
management in solving problems that relate
to marketing the firm's products.
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An MKIS Model
Output Product
Place
Promotion
Price
Integrated mix
Database
Input AIS
Marketing research
Marketing intelligence17-8
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Inputsubsystems
Output subsystems
D
A
TA
B
AS
E
Accountinginformation
system
Marketingresearch
subsystem
Marketingintelligencesubsystem
Internal sources
Environmental sources
Productsubsystem
Placesubsystem
Promotionsubsystem
Pricesubsystem
Integrated-mix
subsystem
Users
Data InformationMKIS Model
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Accounting Information System
Sales order data is input.
AIS provides data for
Periodic reports
Special reports
Mathematical models and knowledge-based
models
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Marketing Research Subsystem
Managers use marketing research to gather
information
Gathered from customers and prospectsPurchased or procured from other organizations
Processed using marketing research
subsystem
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Primary and Secondary Data
Used by marketing research subsystem
Primary data are collected by the firm
Examples of primary data
Survey
In-depth interview
Observation
Controlled experiment
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Marketing Research Software
Graphics packages (print maps)
Makes market research a reality for all
firms Statistical analysis
Expertise to interpret software outputs is the
key to successful use of these tools
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Marketing Intelligence
Subsystem
Ethical activities aimed at gathering
information about competitors
Not to be confused with industrial
espionage
Each functional information system has anintelligence responsibility
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Product Subsystem
Product life cycle supported through:
1) Introduction
2) Growth
3) Maturity
4) Decline
Information answers 3 key questions:
1) Introduce?
2) Change strategy?
3) Delete?
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Sales
Volume
STAGES
Introduction Growth Maturity Decline
Should the
product beintroduced
Should the product strategy
be changed
Should the
product bedeleted
The Product Life Cycle and Related Decisions
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New Product Evaluation Model
Another part of the product subsystem
New product committee
Explicitly considers production as well as
marketing
Lists decision criteria and their weight
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Place Subsystem
Channel of distribution may be short or long
Material, money, and information flow
through the distribution channelResource flows
Feedback
Flows in direction opposite to the material flowFeedforward information
Flow of information to customer
EDI17-19
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Material, Money, and Information Flow
Two-way information flow
SupplierManu-
facturerWhole-saler Retailer ConsumerMaterial MaterialMaterialMaterial
Money MoneyMoneyMoney
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Promotion Subsystem Includes:
(1) advertising
(2) personal selling
(3) sales promotion
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Difficult Area to Computerize
Successful examples
1. Sales promotion --OCR scanning of barcodes
on coupons2. Personal selling --laptops
A. Order entry
B. Customer call reports
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Pricing Subsystem
Two Basic Approaches
1. Cost based (AIS provides the basis)
2. Demand-based (use what-if model)
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Integrated-Mix Subsystem
BRANDAID Model
Solid arrows: influences
Dashed arrows: responses
Environmental and retailer influence on the
consumer
Individual influences
Combined influences
Unexpected influences
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ProductPriceAdvertisingPromotionPrice-off coupons
Premiums
SamplingsPackage:Graphics &functionAssortment
Sales
Availability
PricePromotionAdvertising
ProductPriceAdvertisingPromotion
Price-off coupons
PremiumsSampling
Package:Graphics &functionAssortment
Seasonaltrend
Manufacturer
Retailer
Competitor Environment
Consumer
BRANDAID
SalesDistribution
PriceTrade promotion
SalespersonsPackage assortment
PriceTrade promotion
Salespersons
Package assortment
SalesDistribution
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0
5
10
15
20
25
30
Actual Model
0 12 24
Months
Months
S
A
L
E
S
Influence of Four Variables, Taken Together
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Sales
Months
New Package
ModelActual
A Model Cannot Cope with Unexpected Events
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The MKIS in Fortune 500 Firms
Preprocessed information 71% of 1990
firms
Mathematical modeling
Generally down
Reason is unknown
Except for production deletion and advertising
media selection
Model use is becoming more balanced
Studies conducted by Li, McLeod, and Rogers17-28
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The MKIS in Fortune
500 Firms [cont.]
Support for management levels
Models
Overall
Support for management functions
Support for the marketing mix
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75 75
61
56
51
40
92
54
77
64
30
14
57
48
41
0
20
40
60
80
100
Retrieving data Storing data Processing data
Percentofcomputeru
sers
1980
1990
N.A. N.A. N.A.
Purposes of Computer Usage
19801990
Retrieving Data Storing Data Processing Data
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1980 1990
Strategic planning
level .17
Strategic
planning
level .30
Management
control
level
.70
Management
control
level
.54
Operational control
level .13
Operational control
level .16
Note: The percentages are based on the number of respondentsranking the particular management levels first.
Model Use Is Becoming More Balanced
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Overall Support from the Marketing Information
System Is Becoming More Balanced
Strategic planninglevel.25
Management controllevel.57
Operational controllevel .17
Strategic planninglevel.28
Management controllevel.40
Operational Controllevel .31
Note: The percentages are based on the number of respondents
ranking the particular management levels first.
1980 1990
17-32
The 1990 Managers Placed More Emphasis on
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The 1990 Managers Placed More Emphasis on
Planning and Less on Directing Than Did
Their 1980 Counterparts
1980 1990
Planning .37
Organizing .03
Directing .25
Controlling .34
Planning .51
Organizing .06
Directing .07
Controlling .36
Staffing .01
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Note: The percentages are based on the number of
respondents ranking the particular mix functions first.
Marketing Managers Are Using the Computer More
for Making the Difficult Price and Promotion Decisions
1980 1990
Product .49
Price .27
Place .16
Promotion .08
Product .32
Price .39
Place .15
Promotion .13
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How Managers Use the MKIS
Integrated
Product Place Promotion Price Mix
VP of marketing X X X X X
Other executives X X X X X
Brand managers X X X X X
Sales manager X X
Advertising manager X X
Manager mktg resrch X X X X X
Manager of product planning X
Manager of physical distribution X
Other managers X X X X X
Subsystem
Subsystem
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MKIS Use by Managers
Industry giants are using the computer as a
marketing tool
To learn about consumer needs and wantsTo formulate the marketing mix
To follow-up on how well mix is received by
the consumers
MKIS information output used across the
firm
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Summary
MKIS
Input subsystems
AIS, Marketing Research, Marketing IntelligenceOutput subsystems
Product, Place, Promotion, Price, Integrated Mix
Operational MKISs consider management
and marketing concepts
Planning is the key
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