MCT week 13 part 2

Marketing Information System (MIS) Overview

Definition:

According to Kotler et al. (2009), a Marketing Information System (MIS) is a structured development that helps gather, analyze, and distribute marketing data to inform decision-making processes and improve marketing strategies.

Key Elements of MIS

Components:

• People: Marketing managers and professionals who utilize MIS for decision-making.

• Equipment: Technology and software tools needed to process and analyze data.

• Procedures: Established methods for systematic data collection and analysis.

Processes:

• Systematic gathering of data, including market trends and consumer behavior.

• Sorting and analyzing the collected data to extract meaningful insights.

• Evaluating information to ensure its relevance and reliability.

• Distributing actionable insights to stakeholders for informed decision-making.

Timeliness and Accuracy:

• Ensures that information collected is not only current but also precise to support the planning and execution of marketing strategies effectively.

Purpose:

• Supports decision-making by transforming data into actionable insights which can guide marketing strategies and improve overall performance.

Information System Structure

Information Needs:

• Identifying essential information by asking critical questions such as:

  • Who will use the information?

  • What is the purpose of this information?

  • Where is the data coming from, and how will it be accessed?

Information Collection, Processing, and Analysis:

• Raw data is gathered through various means like surveys, web analytics, sales data, etc., and transformed into usable insights through systematic methods of processing, including:

  • Data cleansing

  • Statistical analysis

  • Visualization techniques to present the data clearly.

Processing Information in an MIS

Transforming Raw Data:

• Involves creating actionable outputs such as comprehensive reports, dashboards, and strategic recommendations that aid decision-making.

Feedback Loop:

• A continuous cycle where the outcomes from previous decisions lead to adjustments in information needs and processing methods to ensure ongoing optimization of strategies.

Importance of Structure

• Provides a clear design for the collection and delivery of actionable information needed for informed decision-making at various organizational levels.

Components of the Marketing Information System (MIS)

Marketing Managers:

• Main users of the MIS, who analyze, plan, implement, organize, and control marketing activities relying heavily on timely and accurate data to do so.

Assessing Information Needs:

• Begins with clearly identifying specific information required to answer existing business challenges and enhance operational efficiency.

Developing Information:

• Includes:

  • Internal Records: Data sourced from within the organization—sales figures, cost structures, etc.

  • Marketing Intelligence: Gathering insights regarding external factors like competitors' moves and customer preferences.

  • Marketing Research: Employing structured tools such as focus groups, surveys, and interviews for data collection.

  • Information Analysis: The process where raw data gets converted into meaningful insights that direct marketing efforts.

Distributing Information:

• Processed information is shared with relevant stakeholders, ensuring that every team member has access to the insights needed for decision-making.

External Influences on MIS

Target Markets:

• Identification of specific customer demographics that the organization aims to serve.

Marketing Channels:

• The routes through which products and services are delivered to customers.

Competitors:

• Rival organizations that can impact strategic positioning and market dynamics.

Publics:

• Interest groups such as media, investors, and community members that can influence the organization’s reputation and operations.

Macro Environment Forces:

• Economic trends, technological advancements, and political changes that shape market conditions and consumer behavior.

Purpose of the MIS

• Ensures that decisions across the marketing spectrum are based on comprehensive, accurate, and up-to-date information, acting as a feedback loop for continuous improvement in strategies.

Team Development of MIS in Markstrat Simulation

Student Teams' Approach:

• During the Markstrat simulation, student teams collect, organize, analyze, and distribute data for effective decision-making through structured meetings.

Key Considerations Include:

• Determining what data or analysis is necessary to support decisions—this involves prioritizing data needs that align with strategic objectives.

• Understanding the implications of available data: Over 8 years of accessible data information spanning across two distinct markets enriches the decision-making process as teams navigate through various simulation rounds.

Team Information Systems:

• Utilize tools like summary Excel sheets and Word contact reports to manage information, promoting alignment and effective communication amongst team members.

Markstrat Features

• Provides a variety of tools to support decision-making, including:

  • Research & Development: Innovations to improve products.

  • Brand Portfolio Management: Strategies to manage multiple brands effectively.

  • Marketing Mix Management: Balancing product, price, place, and promotion strategies.

Strategy Development Stages in Markstrat Simulation

Stage 1: Practice Decisions (Weeks 11-12)

• Objective: Familiarize teams with the Markstrat interface and tools without affecting ultimate performance outcomes.

• Individual Experimentation: Team members explore the system independently to comprehend the impact of different decisions.

• Team Collaboration: Group discussions facilitate knowledge sharing and collaborative learning based on individual findings.

Stage 2: Real Decisions (Weeks 13-19)

• Objective: Engage in impactful decisions that directly affect the performance of the simulation.

• Structured Decision-Making encouraged through role assignments to enhance efficiency and accountability:

  • Options: No assigned roles—foster collective discussion leading to consensus decision-making.

  • Defined roles: Assigning specific duties for better management and responsibility distribution.

Information Flow and Roles

• Effective management of information flow from Markstrat is essential to ensure that decisions made are informed and timely.

• Ensuring that team knowledge is shared; all members should be well-informed of every aspect of the Markstrat tool and its implications for strategy.

Elements of Marketing Information System in Markstrat

Internal Records:

• Comprise of sales results and financial performance which provide baseline metrics for evaluating outcomes.

Market Research:

• Generates external insights that shed light on dynamics and competitor movements affecting market strategies.

Information Analysis Tools:

• Utilizes positioning maps, advertising experiments, and A/B testing to visualize data and optimize marketing strategies effectively.

Marketing Plan Tool:

• Guides strategic planning through several functions such as:

  • Segment Size Estimates: Understand potential market sizes.

  • Market Share Estimates: Forecast competitive positioning.

  • Sales Forecasts: Predict expected revenues based on data analysis.

  • Brand Contribution Analysis: Assess the performance of different brands and their profitability.

  • Crucial for adapting decisions informed by historical performance metrics and aligning with overarching strategic goals.

Financial Performance Analysis

Revenue and COGS:

• Understanding different marketing actions’ efficiency and resulting profitability helps make data-backed strategic choices.

Contribution Before Marketing:

• Evaluates profitability of brands before marketing investments are made.

Final Contribution:

• Analyzing profits post-marketing expenditures is fundamental for strategic adjustments, guiding resource allocation effectively.

Summary Financial Results:

• The assessment of revenues, COGS, and marketing expenditures to identify trends, weaknesses, and opportunities, ultimately refining strategic marketing approaches.

Zara Case Study on MIS

Information Systems in Fast Fashion:

• Supports decision-making and operational efficiency through insights derived from customers and real-time data integration.

• The application of RFID technology and customer feedback loops exemplifies an effective and responsive MIS improving supply chain activities.

Concluding Insights

• The principles of Marketing Information Systems (MIS) are fundamental in effectively navigating competitive environments, as evidenced by both theoretical frameworks and practical applications, such as depicted in the Markstrat simulation and real-world examples like Zara.