The marketing information system refers to the use of technology for the arrangement of the relevant data related to the market, sales, promotion, price, competition, and allocation of goods and services. This information is acquired after a proper analysis and understanding of the marketing environment to ensure effective decision-making in the organization.
The marketing information system is a broader and more encompassing term than market research and a variation of the term management information system. Marketing Information System (MIS) is the structure of people, equipment, and procedures used to gather, analyses, and distribute the information required by an organization.
The Marketing Information System focuses on only the marketing aspects of the management information system. It is an organized way of continually collecting, accessing, and analyzing information that marketing managers need to make better decisions.
Importance of MIS
- Order Processing System: It checks the inventory availability, pending orders, production details, etc., before accepting the customer order. Computerized sales order processing generates control reports daily on orders processed, details of backorders, etc.
- Sales Management System: Computerized sales management system uses the data from the sales order processing system to generate various sales-related reports. This system supports accounts management, direct marketing, sales forecasting, and Sales Presentations.
- Logistics Management: Physical distribution is a major activity of the marketing function. It uses computer-based OR models to find the optimum location of warehouses, shipment routes, quantity to be transported and stocked, etc.
- Consumer Research: Computerized transaction processing systems capture a huge quantity of data about customers and their buying patterns etc. It is used to generate vital information about consumer behavior.
- Sales Forecasting: Computer-based mathematical and operations research models are used to forecast sales and marketing expenses.
Characteristics of Marketing Information System
- MIS is an ongoing process. It operates continuously.
- It acts as a data bank and facilitates prompt decision-making by managers.
- MIS operates rationally and systematically and provides the required information.
- MIS is a computer-based method of data collection, processing, and storage.
- Management gets a steady flow of information regularly — the right information, for the right people, at the right time and cost.