E-commerce businesses tend to have very sophisticated Marketing Information Syst
ID: 466105 • Letter: E
Question
E-commerce businesses tend to have very sophisticated Marketing Information Systems. In the online environment, it is easier to collect and track information on visitors and purchasers than with brick and mortar enterprises. Keep in mind, nowadays companies give you "membership card" or ask for a phone number to track what you buy. Also many sales people will ask you how you heard of the business. These types of techniques may give you a hint as to companies with good MKT Information Systems. Research a traditional company that uses a good Marketing Information System to gather data. Analyze how they gather information, the type of information gathered, and how that information helps the company market its products.
Explanation / Answer
The marketing information system works by adopting the following steps.
Assessment of the Required Information:
The marketing information system assesses the required or preferably required information. For this purpose, the organization should prepare some guidelines for the necessary information.
Development of the Information:
Internal records play a significant role in the provision of the basic information about the activities of the organization. The useful information is developed by marketing information system by organizing & summarizing balance sheets, shipments, schedules, orders & inventories into trends that can be associated with the decisions of the management on changes in the marketing mixes.
Marketing Intelligence:
The marketing managers need the information on certain environmental variables in order to develop & implement their Marketing Plans. The marketing intelligence helps the managers in this regard. The components of marketing intelligence vary according to the requirement of the situation, but in general it includes both the external sources & internal sources.
Marketing Research:
Through an exchange of information, the marketers, customers & public are linked by the marketing research which is conducted with the help of marketing information system.
There are four subsystems of marketing information system & these are as follow.
Internal Records:
The data on the costs, sales, inventories, accounts receivables & payable and cash flows of the organization are acquired from the internal records. In certain organizations, the internal records are present in the advanced computers that quickly & comprehensively provide the required data.
Marketing Intelligence System:
The routine information on the developments in the external market environment is provided to the marketing management by the marketing intelligence system. This subsystem has the scientific method, multiple methodologies, model building, creativity & cost/ benefit measures for valuing the information.
Marketing Research:
The information on certain marketing problem which is faced by the organization is obtained through the process of marketing research. This method consists of five steps which are as follows.
Definition of the problem & objectives of research
Development of the research plan
Collection of information
Analysis of the information
Presentation of the findings
Marketing Decision Support System (MDSS):
Marketing Decision Support System (MDSS) is the fourth subsystem of the marketing information system that contains statistical & decision tools for the assistance of managers in making certain marketing decisions. There is supporting hardware & software in the MDSS along with the combination of systems, tools, data & techniques. The marketing information is obtained and interpreted with the help of MDSS for the purpose of getting assistance in making decisions.
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