It is a tool for dealing with data pertaining to marketing management. Hence, its functions are related to the process of database management.
The principal functions of MIS/MKIS are :
1. Collecting and assembling data both internal and external. For the information from internal sources, various reports or statements are designed (like sales report, accounts report) which periodically provide information covering the relevant operational aspects. For the information from external sources, the major part of information flow is from the secondary sources, including newspapers, trade journals, magazines, reports of market resear5ch agencies. Some information is also procured from the primary sources like consumers, suppliers, dealers and retailers.
2. Processing of data: Information collected from various sources is required to be classified, tabulated and summarised for facilitating study and critical analysis.
3. Analysing data: The collected information is evaluated to find out its accuracy and reliability. Further the information is processed using various statistical and operations research tyools so that conclusions are drawn for decision making.
4. Storage of data: The collect3d and processed data needs to be stored in a manner that ensures its preservation and its ready availability for reference as and when required.
5. Dissemination of information: The information has to reach the decision makers for solving marketing problems and take management decisions.
Components of Marketing Information System:
a. Internal records system
b. Market intelligence system
c. Marketing research system
d. Marketing management and science system
BASIC REQUIREMENTS WHICH ARE REQUIRED TO BE SATISFIED:
* Unified and centralised system
* Support system to marketing decision makers
* Marketing with the level of progress of the organisation
* Cost effective in maintaining
* Selective in information processing
* Providing information regularly and quickly
ADVANTAGES OF MARKETING INFORMATION SYSTEM
* This framework provides a set of procedures and methods for regular, planned, purpose oriented and systematic collection of data, its analysis, storage and retrieval.
* It helps in improving the data capture process, checks reliability, consistency and quality of data.
* The operation of collecting, processing and transmitting data becomes smooth and the information flow to the decision-makers takes place in a ready for decision form.
* provides tailor made information for specific needs.
* It facilitates repetitive use of the same information for different purposes.
* It also helps in sorting out conflicting information which otherwise would lead to confusion and misdirect the decisions.
* In view of the foregoing, we observe that marketing function requires on a continuous basis, relevant information about various aspects including the marketing environment, the consumers, the competitors, various intermediaries and the firm’s market position.
The need for MIS is a unified and centralised system, which is selective in information processing and provides information regularly and quickly.
It helps in systematising the information processing and integrating the information obtained from various sources, validating its accuracy and consistency. It provides tailor made information to the decision makers to meet their specific requirements.