Unit 2: Marketing

Information System and Buyer

Behavior
Marketing Information System
• A marketing information system (MIS) is a set of
procedures and methods used to gather, analyze,
and interpret information related to marketing
decisions.
• It is a computer-based system that collects data
from various sources, such as internal records,
surveys, and external databases, and transforms it
into actionable insights for marketing managers.
• Creating customer profiles and loyalty programs
can help organizations acquire data about their
customers.
• Nike uses a marketing information system
called Nike Plus that tracks customer
behavior across its website and mobile apps.
Nike Plus also enables Nike to engage with
customers through gamification, challenges,
and social sharing.
• Spotify uses a marketing information system
that analyzes customer listening behavior to
make personalized music recommendations
and playlists.
Sources of Marketing Information
• Internal data
• Market research
• Social media
• Customer feedback
• Competitor analysis
Internal records
• sales data, customer database, product
database, financial data, operations data, etc.
• the documents such as invoices, transmit
copies, and billing documents prepared by
the firms once they receive the order for
the goods and services from the
customers, dealers, or sales
representatives.
• reports on current sales and the inventory
Marketing Intelligence System
• provides data about the happenings in the
market, i.e. data related to the marketing
environment which is external to the
organization.
• includes information about the changing
market trends, competitor’s pricing strategy,
changes in the customer’s tastes and
preferences, new products launched in the
market, promotion strategy of the competitor,
etc.
• Marketing Intelligence system can be improved through
below steps:
• Providing the proper training and motivating the sales
force to keep a check on the market trends
• Motivating the channel partners viz. Dealers,
distributors, retailers
• getting more and more information about the
competitors.
• Involved loyal customers in the customer advisory
panel
• use of the government data like population trends,
geographic characteristics, etc. in planning marketing
activities.
• Ask the customers directly about their experience
with the product or service via feedback forms that
can be filled out online.
Marketing Research
• the systematic collection, organization,
analysis, and interpretation of the primary or
secondary data to find out the solutions to the
marketing.
• conduct marketing research to analyze the
marketing environment comprising of
changes in the customer’s tastes and
preferences, competitor’s strategies, the
scope of new product launches, etc.
• it provides factual data that has been tested
several times by the researchers.
Marketing Decision Support System
• It includes several software programs that
can be used by marketers to analyze the data,
collected so far, to take better marketing
decisions.
Marketing Information System
Process
• Find out which marketing KPIs are the most
important,
• Collect pertinent information from both internal and
external sources,
• Run statistical analyses on the data to understand
the patterns,
• Analysts should send the insights to the necessary
departments,
• Use the information to determine the best way to
proceed with the situation.
Benefits of Marketing Information System
• Improved decision-making – helps to make better-
informed decisions about marketing strategies,
product development, and resource allocation.
• Enhanced customer insights - helps companies better
understand their customers and develop more
effective marketing campaigns and product offerings.
• Increased profitability - increase revenue and
profitability by improving their marketing and sales
efforts.
• Competitive advantage - can be used to develop more
effective marketing strategies and gain a competitive
advantage in the market.
BUYER BEHAVIOR
Concept of Buyer Behavior
• Buyer behavior is defined as any act or actions
(positive or negative) taken by the customer while
purchasing any products.
• According to Prof. Philip Kotler, “Buying behavior
is the decision process and acts of customers
involved in buying and using products.”
• To understand buying patterns of customers, we
need to have answers od below questions:
• What do they buy?
• Why do they buy?
• When do they buy?
• Where do they buy?
• We can explain this buyer behavior in two aspects:
• Organizational Buying behavior
• Consumer buying behavior
Organizational buyer behavior
• buying process and decisions of business
organizations, social institutions, and government.
• the decision-making process through which an
organization establishes the need for products or
services and identifies, evaluates, and chooses
among alternative brands, and suppliers.
• The major organizational buyers may include,
producers, resellers, institutions, and the
government.
Types of Organizational buyer
• Straight Repurchase Decision
• carefully evaluate the past purchasing - If satisfied with the
current terms, makes a direct repurchase decision with the
same supplier without going through the preceding steps. 
• Modified Purchase Decision
• Though the company is satisfied with the current supplier
terms, wanting to alter certain product specifications or
purchase terms.
• may change certain buying or product specifications if
needed
• New Purchase Decision
• wants to make a purchase of new products due to the
changed situation of the organization
• it can opt for a new buying process.
Organizational Buying process
Factors Influencing Organizational
Buying Behavior
• Environmental Factors - government regulation,
technological innovations, demand level,
competition, social responsibility, cost of funds,
availability of natural resources, etc. 
• Organizational Factors - goal and objective,
accepted procedures for purchasing, and an
organizational structure
• Interpersonal Factors - individual personnel or staff
with different motives, interests, and authority. 
• Individual Factors - personal motivations,
perceptions, preferences, and background. 
Consumer Buying Behavior
• Consumer buying behavior is the actions taken by
consumers before purchasing, during purchasing,
and post-purchasing of goods and services for
personal and family use.
• According to C. G. Walters and W. G. Paul,
“Consumer behavior is the process whereby
individuals decide what, when, where, how and
from whom to purchase goods and services.”
• different people have different needs and want,
consumers purchase different products in different
situations to meet their needs, and wants.
Types of Consumer Buying Decision
• Routine Purchase Decision
• refers to the purchase of products we use daily or regularly use
such as foods, milk, drinks, daily snacks, etc. 
• low involvement and limited time
• Aware of the product
• Limited Purchase Decision
• a moderate level of involvement in the products and services
which we occasionally used to purchase.
• little bit familiar with a product however we need to gather some
information before making an actual purchase.
• Extensive Purchase Decision
• very high level of involvement while making any purchasing
decision. 
• complex consumer buying decision
•  a lot of time on information and deciding.
• cars, houses, or any expensive products
Importance of Understanding Buyer
Behavior
• To Know the Actual Need of Customers

• To Design Marketing Objectives

• Helps to Understand Marketing Environment

• Helps to Reduce Uncertainty

• Measure the Impact of Firms Strategy

Factors Influencing Consumer Buying
Behavior
• Economic Factors - The economic level or income level of
the consumer
• Socio-Cultural Factors - the consumer and his family,
society’s beliefs, values, and spending patterns.
• Psychological Factors - the consumer’s various
psychological matters such as motivation, perception,
personality, learning, personal beliefs, and attitudes.
• Demographic Factors - age structure, sex group, family
size, occupation, education, marital status, religious group,
etc.
• Psycho-Analytic Factors - consumers’ intrinsic needs, id,
ego, and superego
Consumer movement and
consumer protection