Get premium membership and access questions with answers, video lessons as well as revision papers.

State and explain the importance of marketing information system

      

State and explain the importance of marketing information system

  

Answers


Lellah
1. Marketing information system provides relevant, reliable and required information in respect of business environment-both internal and external environments. Such information is vital for successful decision making.
2. Helps to recognize trends: - MIS helps managers to recognize marketing trends. It helps early spotting of the internal realities of the company, the changing trends and provides market intelligence to the firm. The changing trends may be in respect of prices, product design, packaging, promotion schemes, etc. managers can take effective decisions in respect of prices, product designs, etc., in response to changing trends in the environment.
3. Facilitates Analysis and Planning – MkIS plays a crucial role in the planning process, considering the planning procedure requires information. It helps in planning phase of marketing management by making reliable information on external environment available. For planning, the first thing which is needed is the organizations capabilities, then the business environment and finally competitor analysis. In a proper MkIS, all these are present by default and are continuously updated. Therefore, MkIS is very important for planning and analysis. Effective market planning is required in terms of product planning, pricing, promotion and distribution. Such planning will be possible only f the company is possessing adequate and relevant information.
4. Co-ordination – Helps to coordinate organizational activities and processes . These companies depend completely on MIS for the proper running of the organization. MkIS enables the coordination of activities within the marketing department and between marketing and other organizational functions.
5. Control – Just like MkIS can help in a crisis, in normal times it provides control as you have information of the various processes going on and what is happening across the company. MkIS has been a tool for analyzing both internal and external effectiveness of marketing and for controlling marketing activities and environment.
6. Market Monitoring: Through the use of market research and marketing intelligence activities the MkIS can enable the identification of emerging market segments, and the monitoring of the market environment for changes in consumer behavior, competitor activities, new technologies, economic conditions and governmental policies.
7. Strategy Development. The MkIS provides the information necessary to develop marketing strategy. information is used to develop strategic plans especially in areas of targeting, new product development and direct marketing. It supports strategy development for new products, product positioning, marketing, pricing, personal selling, distribution, customer service and partnerships and alliances. An effective MkIS generates huge amounts of customer and market data. It thus has the potential to input into marketing policy and can be seen to operate strategically when its information is used in the ways illustrated
8. Strategy Implementation. The MkIS provides support for product launches, enables the coordination of marketing strategies, and is an integral part of sales force automation (SFA), customer relationship management (CRM), and customer service systems implementations. The MkIS enables decision makers to more effectively manage the sales force as well as customer relationships.
9. Quick supply of information: -A firm has to take quick decision for this purpose; it requires fast flow of information which is facilitated by a properly designed MIS. Due to timely supply of marketing information, the marketing managers can make quick and effective decisions.
10. Quality of decision making: -The quality of marketing decisions is decided to a great extent by the quality of marketing information available to the decision-maker and helps the firm in gaining control over its marketing activities. MkIS gives the management the opportunity to make better decisions by providing a flow of information continuously, such as prices, advertising expenditures, sales, competition, and distribution expenses. A properly designed marketing information system promptly supplies reliable and relevant information. With the help of computers and other data processing equipments, the marketing managers can make the right decisions at the right time.
11. Tapping of business Opportunities: -There are number of business opportunities which have remained untapped for various reasons are due to unavailability of sufficient information. MIS makes it possible to tap business opportunities as it can supply required and reliable data.
12. Provides Marketing Intelligence: -Marketing intelligence refers to information of the events that are happening in the external environment, i.e., changes in customer tastes, expectations, competitors’ strategies, government policies, international environment, etc. with the help of MIS specialists, it is possible to collect marketing intelligence which is vital to make effective marketing decisions.
13. Help managers to Recognize Change: -a business firm may be handling or marketing a wrong line of products. As such the company will not be able to make profits. And if it is does, profits may not be adequate. A firm which is well equipped with MIS will be able to realize the need to change the line of business.
14. .Integration of Information: -firms, which are largely decentralized can gather information which is scattered at many centers or departments and in
15. Avoidance of Crisis – The best way to analyze a stock (share market) is to see its past performance. Top websites like money control thrive on MIS. Similarly MIS helps you keep track of margins and profits. With an amazing information system established, you can know where your organization is moving and probably avert a crisis long before it has taken place.
16. Guides to establish market positioning
17. Helps in identifying competition and in assessing their strengths and weaknesses.
18. Helps to estimate probable sales volume and market share of a firm in the market or industry.
19. The MkIS can enable firms to collaborate with customers on new product designs, changed needs of the customers and customer requirements.
20. It facilitates the development of action programmes for achieving goals and also helps the firm adjust its products and services to the needs and tastes of the customers.
21. MkIS plays a major role in the international marketing decisions support system
22. Intelligent Marketing Information System (IMkIS) has the potential to address some of the pressing concerns facing marketers today. It could help in analyzing product features with customer data, evaluating channel and pricing options, creating and testing promotion plans, gaining instant feedback on concepts and plans, and moving marketing plans rapidly into production

Lellah answered the question on November 5, 2021 at 05:31


Next:  Discuss the types of Flexible packaging materials stating their merits and demerits
Previous: Identify and explain marketing problems and opportunities accurately.

View More Principles of Marketing Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions