Agricultural Marketing Information

System (MIS) and Marketing

Research
Lecture two
Course: Agricultural Products Marketing II (EB 202)
Instructor: Ms. Semeni Ngozi
 Course objective
To introduce students to the understanding of information system used by
marketing departments of agribusiness firms and farmers

Getting the students to know important features of Agricultural MIS and its
components

To make known to students how information can be sourced for use in the
organization MIS

Getting the students to make distinction between Agricultural MIS and other
systems e.g. Marketing research system

To understand the role of MIS to farmers and other organizations

 Course expectations
At the end of this topic students are expected to;

 Define Agricultural MIS and its major components and features

 Understand how Agricultural MIS is organized and used

 Be able to differentiate Agricultural MIS from Marketing Research and;

 To understand the roles Agricultural MIS plays in the marketing and selling of
Agricultural products by organization
 1.1 Topic overview
Certain amount of Marketing information is gathered all the time by companies
as they engage in their day to day operations

To truly understand a customer requires pertinent data both quantitative

(numbers) and qualitative data (Perception about the products/services)

Information is gathered every time;

 A sale representative gathers and record the shipping preferences of a customer
in a firm’s CRM system
 When a firm gets a customer complaint and records it E.t.c
 1.2 The problem
In many organizations (Agro firms), information is not shared well among
departments and within departments (Saylor, 2009)

One department might conduct research to find solution to a certain

problem concerning a certain product but never communicate the findings
with other departments in the same organization
Solution?:
Integrating all information collected so that it can be useful to as many people
as possible in an organization for making good decisions

Hence Marketing information system

1.3 What is Marketing Information System (MIS)
MIS- Is defined as planned and continuous process of collecting, analyzing,
storing and disseminating information needed to carryout of the functions
of marketing management/making informed decision/sound decisions

According to Kotler (2009) MIS consist of people, equipment and

procedures
Purpose

Gathering, sorting, analyzing, evaluating and distributing needed, timely

and accurate information for use by marketing decision makers to improve
their marketing planning, implementation and control decisions
 1.4 Objectives of MIS
Designed specifically for managing the marketing aspect of
the farmers and agro firms

To bring together the separate items of data into a coherent

body of information to aid decision making and facilitating
smooth trading relationships between farmers, traders and
consumers
1.4.1 MIS-As a system
 1.5 Basic features of MIS
Permanent and Continuous system of collecting information
Provides right information at the right time to the right
people to assist them in making right decisions
Up to date and accurate computer based system
Future oriented hence provision of information for solving
un-anticipated future occurrences (problems)
Collects information from both internal and external sources
(consumers, competitors, marketing environment, e.t.c)
An important aid in decision making/ informed decision
making
 1.6 Categories of Agricultural MIS
1.MIS supported by development organization

2. MIS managed by the government

3. MIS service managed by member based organizations or service

providers

4. MIS of Agricultural enterprise

- Each category however has its own strengths and weaknesses

1.6.1 MIS supported by development projects
Often targeted to farmer communities and finds difficulty to sustain, when not
integrated to the appropriate existing institutional system, after the project support is
over

Example-CASE I: NEPAL
-The Rural Urban Partnership Programme of UNDP in Nepal supports municipalities to
develop a comprehensive information system including MIS on agriculture crops to
build their capacity on planning and development of their area. It also supports Agri-
Enterprise Center to extend the scope of their MIS and introduce e-commerce services.

- MIS managed by the Agro Enterprise Center, an arm of Federation of Nepalese

Chamber of Commerce and Industries, provides trade information on selected
agriculture crops through website, email, and fax to their members, and some
information also to other interested organizations.
 1.6.2 MIS managed by the government
Generates information for developing and monitoring Agricultural policies and
programs with the aim of promoting production and marketing of Agricultural
products

The information is also provided to their extension offices and other

development organizations to support agriculture programs and effective delivery
of government technical and legal services to farmers and business communities

Example in Tanzania; WAZIRI HASUNGA AZINDUA MFUMO WA

KUWAUNGANISHA WAKULIMA NA WANUNUZI WA MAZAO (MOBILE KILIMO)

Launched in May 2020 in Dodoma with the purpose of providing farmers with
extension services and marketing information e.g. price, buyers etc
1.6.2 MIS managed by the government cont…
Example CASE II: INDIA
 Spice Board of India provides spice traders in India the information related to
national and international prices, technologies, and allied services. It also facilitates
linkages of India traders with international buyers using web based inquiry system,
and promotes international marketing through its effort on branding, quality
improvement, and organic farming.

 The Indian government’s Agriculture marketing system, AGARMARKNET, heavily uses

information and communication technologies (ICT). It links wholesale markets,
states, national marketing information center through ICT based network. The
information collected from wholesale markets are consolidated, analyzed and
disseminated to various Agricultural offices and organizations to support their
Agricultural commodities planning and extension works.
1.6.3 MIS service managed by member based
organizations/service providers
Intend to serve their fee based clients who can afford to pay for the
information. They mostly provide services on the commodities,
which are of interest to many users

MIS services include frequent updates on product demands and

prices, market news, market research and analysis, and customized
services (feasibility study, business planning, marketing research,
etc.)
1.6.3 MIS service managed by member based organizations/
service providers
Example- CASE III: INDIA & PAKISTAN
National News Service (NNS) and Agribusiness Systems Private Limited
(popularly known Agriwatch) in India collect information from their own sources
and others. NSS and Agriwatch provide limited information related to
commodity prices, market news, and best practices to all the website users.
Their fee based members are provided with the market analysis and research
reports. Agriwatch also provides customized services, such as market research,
feasibility study, and product positioning

Pakissan in Pakistan is an agriculture commodity portal, and provides market

prices, commodity news, and agri-related information to the all website users. It
gets information through other organization; and it collects some funds from
advertisements.
1.6.4 MIS of Agricultural Enterprises
The marketing information systems of agri-enterprises are designed
as part of their business strategies

Controlled information is shared with various layers of decision

makers and various departments within the company

The externals (outsiders) to the company can receive the

information that the company believes supports the company’s
business objectives (supply chain management, product positioning,
sales facilitation, and public relation).
1.6.4 MIS of Agriculture Enterprise
Example- CASE IV: INDIA
Indian Tobacco Company’s e-Choupal system aims to streamline the supply chain
of the cereal crops the company deals in. It is built on information and
communication technologies, and provides online information to villagers
through kiosks, which are managed by commission based managers to support
information access and direct market linkages of farmers to India Tobacco
Company. As being a part of the business strategies of the company and being
able to match the farmers’ needs, it is making a good success and has reached to
over 24,000 villages with 42,000 kiosks.
 1.7 Essential Requirements of Marketing Information
system
• For MIS to exists there must be;
1. Sources of information
- Internal sources (customer information, sales records, billing history, duration of
purchases, e.t.c.)
- External sources (databases, market research, marketing intelligence)
2. Technology to manage data
- Hardware (devices)
- Software components
- Connectivity-internet services
- Security systems i.e. data management and anti hacking systems
 Essential requirements continues…
3. Uses of information
- Generating Routine reports
- Data mining
- Decision support systems e.g. computers, software
1.8 Basic Components of AMIS
The four basic components of the Marketing Information
System MIS are;
 Internal records
 Marketing Intelligence
 Marketing Research
 Marketing Decision Support systems
1.8.1 Internal Reporting System
The first component of MIS is internal records

Agricultural marketing managers get a lot of information from the

internal records of the company

These records provides current information about sales, costs,

inventories, cash flows and account receivable and payable

These records are maintained in a computerized system to aid the

decision making process and in making planning, implementation and
control decisions
1.8.2 Marketing Intelligence System
A good internal reporting system can tell a manager about what is happening inside the
firm

What about what is happening outside the firm? What is the business environment look
like? Are credit- lending terms loose or tight? And how will they affect what the firm does
and customers’ ability to buy or not buy?

How will the rising fuel prices and alternative energy sources affect your firm and your
products?

Do these changes present business obstacles or opportunities?

What are your competitors up to?

1.8.2 Marketing Intelligence
Marketing intelligence collects information from external sources (current
marketing environment and changing conditions in the market)

External sources: magazines, trade journals, commercial press, census, e.t.c.

After evaluations and arranging in proper orders; it can then be used by

marketing managers for taking decisions and making policies about marketing
1.8.3 Marketing Research System
Collects both quantitative and qualitative information
Information collected through marketing research is provided to marketing
managers
Moreover, to be sure MR can help companies solve a specific marketing
problems
Example- CASE V: IRELAND:
- Tim Hortons, a popular coffee chain in Canada, which has been recently
expanding in USA and internationally recently opened some self-service kiosk
in Ireland but the service was a failure. Why? Car in Ireland do not have cup
holders
- With market research and little market intelligence, it would have been easy to
see that driving holding a cup of coffee is extremely difficult
Therefore, marketing research is conducted to solve a specific marketing
problem in the organization

It involves problem identification, data collection, analysis, writing report,

conclusion and dissemination of the findings

Recommendations are provided to solve marketing problems

1.8.4 Marketing Support decision systems
Marketing Support decision systems-These are tools that enable marketing
managers to analyze data and produce information to be distributed for
decision making

Includes, hardware such as computers and software such as STATA, SPSS,

Excel e.t.c

Marketing models used to analyze marketing information and helps them to

make better decisions

For example-Regression models shows how dependent variables can be

influenced by the independent variables
-Marketing Models
Consist of tools that assist marketing managers to analyze and
interpret data to provide direction in making better marketing
decisions

These models and other mathematical, statistical, economical and

financial models are the analytical subsystem of the MIS

 A relatively modest investment in computer desktop is sufficient to

allow an enterprise to automate the analysis of its data through
statistical analysis packages
Class example;
Regression analysis from Excel and SPSS data
1.7 Basic Components of AMIS
1.7.1 Three levels of decisions in marketing models
1. STRATEGIC DECISIONS:
By nature are one-off situations

Generally involves a small group of high levels managers who deal with very
complex, non-routine problems

Concern with deciding on objectives, resources and policies of the organization

Have implications for changing the structure of the organization

Hence, MIS needs to provide information that is precise and accurate

1.7.1 Three levels of decisions in marketing models
2. CONTROL DECISIONS:
Involves controlling the resources such as physical, human, financial
within the organization

Concern with efficiently and effectively use of the resources within

the operational units in the organizations

Management control involves close interaction with those who are

concerned with carrying the task of organizing resources within the
organization
1.7.1Three levels of decision making cont...
3. OPERATIONAL DECISIONS
Are decisions made to manage day to day business

Made by lower level marketing managers

Involve making decisions about carrying out the “specific tasks set
forth by strategic planners and management

Determines which units or individuals in the organization will carry

out marketing tasks
1.7.3 Marketing Research System
Refers to what an agro firm has to resort to if it cannot answer any question by
using any of the other components of MIS

Generally used to answer specific questions/ solve problems

Unlike internal data (ongoing) research is not continuous rather done on as-needed
or to solve a particular marketing problem

Firm can either conduct marketing research on its own or hire a marketing research
firm

Allows companies to identify the customers needs and views on certain products/
policies
Marketing Research System…
Is a systematic process of collecting, analyzing and disseminating information
to the marketing managers to solve a particular marketing problem

Marketing companies faces a lot of problems such as consumer problems,

promotion problems etc.

Therefore, marketing research helps to solve these problems

Marketing research collects data about marketing problems, record these

data then it studies and analyzes these data and draws conclusions

Finally, provides policy recommendations to solve these marketing problem

Examples of Marketing research
Product research-size of the product, product modification, product
innovations
Consumer research-studies consumer behavior, need’s of the consumers
Packaging research-Making product more attractive to customers, good
packaging materials
Pricing research-Methods of pricing
Advertising research-Advertising methods, evaluates advertising methods
Sales research-Studies how the company sells its products, sales trends,
effectiveness of the sales methods
Distribution research-Identifies distribution channels
Policy research-Companies policies, evaluate the effectiveness of
marketing policy, sales policies, distribution policies, promotion policies
Marketing Research Process

According to Gaurav Akrani (2010), there are twelve steps in Marketing

Research Process
1.Identifying and defining a marketing problem
 The problem that should be defined must relate to product, price,
market competition, sales promotion and so on. The process could
not start unless the marketing problem is identified and defined
clearly.

2.Determining research objectives

 An objective is important to fit the problem under investigation. For
example A sale is declining may due to poor quality and high price or
due to limited interest taken by middleman
3.Conducting a preliminary exploration (survey)
 The researcher has to study such problems and select one major problem which
is suitable for detailed investigation. A preliminary investigation is necessary to
find out the researchable problem
4. Creating research design
 The research design is to conduct the actual research investigation. The design
guide the researcher to know whether they are moving in the correct direction
or not.
 The researcher may ask the following questions when designing the research:
-What type of data is required?
-How to collect required data?
-How much funds will be required?
-How much time/period will be required for completion of research project?
5. Designing the Questionnaire
 An ideal questionnaire comes from the data that has been collected.
 The more suitable the questionnaire, the easier the required information can be
collected as well.

6.Designing a sample of respondents

 A representative group will have to be selected out of the total for data collection
process.
 Meanwhile, the sample design should be represent the total population under study.

7. Collecting Data
 This process depends on the method that has been used to collect the data.
 For example, if the data is collected through mail survey, the questionnaire will be sent
by post to respondents.
 Data collected must be reliable, adequate and complete in all respects.
8. Analyzing and interpreting data
 Tabulating data is to establish useful and logical relation between the information and
problem. Thus the conclusion can be done after the analysis and interpreting of data

9.Preparing research report:

 A research report will then be produced after drawing the conclusion.
 A research report is the final outcome of lengthy research process.

10. Presenting research report:

 The research report will then be delivering to the marketing decision-maker department.
The final decision maker will only be the marketing manager or top level management to
approve the recommendations

11. Follow-up steps:

 The decision maker has to do the follow up step once the recommendations is being
approved
Marketing Research Process-Summary
 Main distinctions between Marketing Information System
(MIS) and Marketing Research Systems (MRS)
1. Meaning
-MIS means to collect, analyze and supply relevant marketing
information to the marketing managers. Managers use this
information for taking effective decision
While
-MRS is a systematic process of collecting data, processing the
data and analyzing information to solve a specific marketing
problem
Main distinctions between Marketing Information System (MIS)
and Marketing Research Systems (MRS)
2. Purpose
-Major objective of MIS is to provide relevant information to
marketing managers and enable them to make effective
marketing decisions
While
-Marketing research main purpose is to solve a specific
marketing problem
Main distinctions between Marketing Information System (MIS)
and Marketing Research Systems (MRS)
3. Scope
- The scope of MIS is wide. Research is one component in the
major MIS. It is not only used to solve problems but
preventing problems in the future
While
- The scope of MR is narrow. It is one small part of marketing
information system used to solve a specific present marketing
problem
Main distinctions between Marketing Information System (MIS) and
Marketing Research Systems (MRS)

4. Nature
-MIS is more non-specific or general in nature. It can solve
varieties of marketing problems
While
- Marketing Research (MR) is more specific in nature. At a
time, it can only solve a single type of marketing problem
Main distinctions between Marketing Information
System (MIS) and Marketing Research Systems (MRS)
5. Orientation
- MIS is more future-oriented i.e. data are collected to prevent
problems from happening
while
- orientation of marketing research is both ways (past and
present) when compared to MIS. It uses past and present
information to solve a current marketing problem
Main distinctions between Marketing Information System
(MIS) and Marketing Research Systems (MRS)
6. Data collection
- In MIS , the data is collected more frequently, usually on a
daily basis. This is a must for every enterprise
While
-In marketing research (MR), Data is not collected as
frequently. Only data are collected on a required basis to
solve a particular marketing problem
Main distinctions between Marketing Information System
(MIS) and Marketing Research Systems (MRS)
7. Computers
-MIS relies heavily on the use of computers. Here, computing
technologies are widely used to ease and facilitate data collection,
analysis, retrieval and supply of relevant information to the
company’s marketing managers

While
-Marketing research hardly/less make use of computers. For analysis
only is when computers are utilized.
 Importance of Marketing Information System in Agricultural
products Marketing
i. Market monitoring
- Allows managers to recognize market trends in terms of prices and value
additions made to agro commodities (product design, packaging, processing,
e.t.c. and take decisions in respect of these changes in the marketing
environment.
ii. Strategy Development
-Supports marketing strategy development for total marketing mix of the
company. New products, products positioning, marketing communications
(advertising, public relations, and sales promotions), pricing, personal selling,
distribution, etc.
Importance of Marketing Information System in Agricultural
products Marketing
iii. Facilitates Marketing Planning and Control
- Effective planning is essential in terms of product planning, pricing, promotion
and distribution. Without possession of adequate and relevant information,
such planning by farmers and entrepreneurs is impossible

iv. Quick supply of Information

- With proper agric. MIS, information is fast hence managerial decision making
is thus quick and timely.
Importance of Marketing Information System in Agricultural
products Marketing
v. Quality of decision-making is enhanced
-Every aspect of marketing calls for constant and correct decisions. Hence with
properly designed MIS is prompt supply of reliable and relevant information
for managerial decision making

vi. Tapping of business opportunities

- Due to unavailability of proper information a vast amount of business
opportunities become untapped.
- Especially through marketing research
Importance of Marketing Information System in Agricultural
products Marketing

vii. Allows farmers and Agri-preneurs to recognize opportunities for

change
- A business may be handling or marketing a wrong product

- Such business may be making zero profit

- A farmer/Agri-preneur with well equipped MIS will be able to

realize the need to change the line of business
Importance continues….
viii. Integration of information and Functional integration
-Gathers information which is scattered at many centers or
departments

-Allows coordination of activities within the marketing

department and between marketing and other organizational
functions (engineering, production, accounting, e.t.c)
Importance continues…
ix. Builds relationship within the organization
-Brings together many different kinds of data, people,
equipment and procedures to help farmers/Agri-preneurs in
making better decisions

x. Convenient storage
-MIS organizes data collected and stores important marketing
data for over several time periods.
END OF TOPIC ONE