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MARKETING INFORMATION SYSTEM

Discussion
1. Marketing System 2. Marketing Information System 3. Marketing Research

MARKETING SYSTEM
Marketing system - is the process of executing plans, concept, price, promotion and distribution of goods and services to create exchange that satisfy individual and organizational goals in a methodical and efficient manner

MARKETING SYSTEM
A marketing system is comprised of a number of elements: 1. Raw materials 2. Process / Service 3. Finished products

Elements of Marketing System

MARKETING SYSTEM
4. Characteristics of participants 5. Functions or roles that each participant performs in the market 6. Locations, stages, timetable and physical infrastructures

Elements of Marketing System

MARKETING SYSTEM
Marketing System Functions 1. Exchange functions - buying - selling - pricing

Marketing System Functions

MARKETING SYSTEM
Marketing System Functions 2. Physical functions - assembling - transport and handling - storage - processing and packaging - grading and standardization.
Marketing System Functions

MARKETING SYSTEM
Marketing System Functions 3. Facilitating functions - financing and risk-bearing - market information - demand and supply creation - market research
Marketing System Functions

MARKETING SYSTEM
Communication

Goods / Services INDUSTRY (a collection of sellers) Money MARKET (a collection of buyers)

Information

MARKETING INFORMATION SYSTEM


Consist of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely and accurate information to marketing decision makers.

MARKETING INFORMATION SYSTEM


It provides management with rich detail about buyer wants, preferences and behavior. It relies on internal company records, marketing intelligence activities, and marketing research.

MARKETING INFORMATION SYSTEM


Tasks of MIS: 1. Define the information requirements of the marketer 2. Develop the needed information

Tasks of MIS

MARKETING INFORMATION SYSTEM

3. Distribute the information at the time they are needed

Tasks of MIS

MARKETING INFORMATION SYSTEM


The Concept of the MIS
DEFINING INFORMATION NEEDS
involving

1. Marketing planning 2. Marketing execution 3. Marketing control

DEVELOPING INFORMATION

through

1. 2. 3. 4.

Internal records Marketing intelligence Marketing research Information analysis

DISTRIBUTING INFORMATION

to

Decision Makers in Marketing

Internal Company Records


Marketing managers rely on internal reports of orders, sales, prices, costs, inventory levels, receivables, payables and so on. By analyzing this information, they can spot important opportunities and problems. Internal records systems supplies results data.

Internal Company Records


1. Order-to-Payment Cycle 2. Sales Information System 3. Databases, Data Warehousing, and Mining

Marketing Intelligence System


A set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.
Marketing intelligence system supplies happenings data.

Marketing Intelligence System


Marketing managers collect marketing intelligence by: reading books, newspapers and trade publications

talking to customers, suppliers, and distributors


How to collect marketing intelligence

Marketing Intelligence System


monitoring social media on the Internet via online discussion groups, e-mailing lists and blogs meeting with other company managers

How to collect marketing intelligence

Marketing Intelligence System


Steps a company can take to improve the quality of its Marketing Intelligence: a. Train and motivate the sales force to spot and report new developments. b. Motivate distributors, retailers, and other intermediaries to pass along important intelligence.
How to Improve Marketing Intelligence

Marketing Intelligence System


c. Network externally. d. Set up a customer advisory panel.
e. Take advantage of government data resources.
How to Improve Marketing Intelligence

Marketing Intelligence System


f. Purchase information from outside suppliers. g. Use online customer feedback systems to collect competitive intelligence.

How to Improve Marketing Intelligence

MARKETING RESEARCH
- Systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation.

MARKETING RESEARCH
MR aims to provide answers to many questions including those on:
1. 2. 3. 4. 5. Market potentials Market share Market characteristics Sales Business trends 6. Short-range forecasts 7. Competitive products 8. Long-range forecasts 9. Existing products

MARKETING RESEARCH PROCESS


DEFINE THE PROBLEM AND RESEARCH OBJECTIVES

Not too broad, not too narrow. Be specific.

Develop a plan for gathering needed information and its cost. Decide on data sources, research approaches, DEVELOP THE instruments, sampling plan and contact method RESEARCH PLAN

COLLECT THE INFORMATION

The most expensive and prone to error stage of MR. Obstacles are respondents not available; uncooperative; biased or dishonest answers

MARKETING RESEARCH PROCESS


Tabulating data and frequency distribution ANALYZE THE Use of statistical tools
INFORMATION

Be proactive in translating data and info into insights and recommendation PRESENT THE Present findings in an understandable and compelling fashion FINDINGS

MAKE THE DECISION

Weigh the evidence Pros and Cons; Advantages and Disadvantages

Factors to consider in gathering marketing information:


1. Needs, wants, demands 2. Fads, trends and megatrends 3. Environmental forces
Demographic Economic Social-cultural Natural Technological Political-legal

Needs and Wants


Needs goods or services necessary for survival Wants - goods or services that are desired or interested to have or to do but not a necessity. Demands are wants for specific products backed by ability to pay.

Factors to consider in gathering marketing information

Fads, Trends and Megatrends


Fad unpredictable, short-lived and without social, economic and political significance Trend is a direction or sequence of events that has some momentum and durability; more predictable and durable than fads.

Factors to consider in gathering marketing information

Fads, Trends and Megatrends


Megatrends large social, economic, political and technological changes that are slow to form, and once in place, they influence us for some time between seven to ten years, or longer.

Factors to consider in gathering marketing information

Environmental Forces
Demographic
a. Awareness of population growth b. Changing mixes of age, ethnic and educational levels c. The rise of nontraditional families d. Large geographic shifts in population

Factors to consider in gathering marketing information

Environmental Forces
Economic environment
a. b. c. d. Income distribution Savings Debt Credit availability

Factors to consider in gathering marketing information

Environmental Forces
Social-cultural
1. Peoples view of
a. b. c. d. e. f. Themselves Others Organizations Society Nature Universe

2. Societys core and secondary values

3. Needs of different subcultures within a society.

Factors to consider in gathering marketing information

Environmental Forces
Natural environment
a. Increasing concern on the environments health b. Sustainability and green marketing programs

Factors to consider in gathering marketing information

Environmental Forces
Technological environment
a. b. c. d. Accelerating pace of change Unlimited opportunities for innovation Varying Research and Development budgets Increased government regulation on technological changes

Factors to consider in gathering marketing information

Environmental Forces
Political-legal environment
a. Increase in business legislation b. Growth of special interest groups

Factors to consider in gathering marketing information

Thank you

Sources: Marketing Management Philip Kotler and Kevin Lane Keller 13th edition 2010, Prentice Hall Principles of Marketing Roberto Medina 2008, Rex Bookstore http://www.fao.org/wairdocs/ilri/x5547e/x5547e00.htm#Contents