A marketing information system (MKIS) is a management information system (MIS) designed
to support marketing decision making. Jobber (2007) defines it as a "system in which marketing
data is formally gathered, stored, analysed and distributed to managers in accordance with their
informational needs on a regular basis." In addition, the online business dictionary defines
Marketing Information System (MKIS) as "a system that analyzes and assesses marketing
information, gathered continuously from sources inside and outside an organization or a
store."[1] Furthermore, "an overall Marketing Information System can be defined as a set
structure of procedures and methods for the regular, planned collection, analysis and presentation
of information for use in making marketing decisions." (Kotler, at al, 2006)
Advantages[edit]
Bhasin stated that,"With an increasingly competitive and expanding market, the amount of
information needed daily by an organization is profound. So they have to establish a Marketing
Information system. There are several advantages of Marketing information systems
Organized Data collection – MkIS can help the managers to organize loads of data
collected from the market, thus results in an increment in the productivity.
A broad perspective – With a proper MkIS in place, the organization can be tracked which
can be used to analyze independent processes. This helps in establishing a broader
perspective which helps us know which steps can be taken to facilitate improvement.
Storage of Important Data – The storage of important data is essential in execution and
thus proves again that MkIS is not important only for information but also for execution.
Avoidance of Crisis – The best way to analyze a stock (share market) is to see its past
performance. Top websites like moneycontrol thrive on MIS. Similarly MIS helps you keep
tracks of margins and profits. With an amazing information system established, an
organizations direction can be analysed and probably crises averted before they place.
Co-ordination – Consumer durables and FMCG companies have huge number of processes
which needs to be co-ordinated. These companies depend completely on MIS for the proper
running of the organization.
Analysis and Planning – MkIS plays a crucial role in the planning process, considering the
planning procedure requires information. For planning, the first thing which is needed is the
organizations capabilities, then the business environment and finallycompetitor analysis. In a
proper MkIS, all these are present by default and are continuously updated. Therefore, MkIS
is very important for planning and analysis.
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."[10]
Possible risks[edit]
"Nevertheless, the collection of marketing information should obey a high-frequent manner due
to the rapid change in the external market." The possible risks the business may face if they
disobey the manner according to Bhasin are:[11]
Opportunities may be missed.
There may be a lack of awareness of environmental changes and competitors' actions.
Data collection may be difficult to analyze over several time periods.
Marketing plans and decisions may not be properly reviewed.
Data collection may be disjointed.
Previous studies may not be stored in an easy to use format.
Time lags may result if a new study is required.
Actions may be reactionary rather than anticipatory.
Maintenance, complexity and setting up a MkIS are one of the major hindrances to Marketing
information systems. Furthermore, wrong information being fed in MkIS can become
cumbersome and appropriate filters need to be established.[10]
Limitations[edit]
Kotler and Philip have said that "both primary and secondary researches offer loads of the data
and information needed for the marketers, whereas the secondary data sources are relatively
superior in quick provision of data at lower cost. Simultaneously, a firm cannot find all the data
required by itself, but sometimes can be done with the help of secondary research. However,
researchers must assess those data collected from both primary and secondary data sources to
enable the accuracy, updates and fairness. Each primary data collection method – observational,
survey, and experimental – has its own advantages and disadvantages. Similarly, each of the
various research contact methods – mail, telephone, personal interview, and online – also has its
own advantages and drawbacks." [12]
