marketing note

1. Chapter - 3
Managing Marketing Information

2. Marketing Information System And
Demand Measurement
Chapter - 3
• Marketing Information System and Its Components
• Marketing Research : Areas and Process
• Marketing Demand and Its Measurement
• Methods and Estimating Current and Future
Demand
• Practice of Marketing Information System (MKIS)
in Nepal

3. Market Information
The information which is related to
competitors, customers, suppliers,
intermediaries, sales persons, marketing mix,
and other forces are market information. They
are obtained from different sources such as
marketing research system, marketing
intelligence system, internal record system,
and marketing decision support system.

4. Marketing Information System

5. Marketing Information System
MKIS is an ongoing organized procedure to generate,
analyze, disseminate, store, and retrieve information
for use in marketing decisions. It consists of
integrated combinations of information, information
processing and equipment, software, and information
specialists that serve the various analyses, planning,
and control needs of marketing decision making.
MKIS serves marketing process, marketers, and
stakeholders such as suppliers, intermediaries, and
marketing agencies.

6. Definition
According to Philip Kotler “a marketing information
system consists of people , equipment, and procedures
to gather, sort, analyze, evaluate, and distribute needs,
timely, and accurate information to marketing decision
makers”.
Features
1. Accuracy, Reliability and Completeness
2. Consistency and Accessibility -Ps?ktf / kx'rof]Uo_
3. Continuous process
4. Inter-related Components
5. Right time -;xL ;do_

7. Importance Of Marketing Information
System
• To improve the efficiency of a company’s operations
• To collect information about the needs of the consumers
• To provide pertinent decision making information to
marketing managers on regular basis
• To help recognize trends and change
• To analyze marketing information and gathers it from
sources inside and out an organization
• To facilitate marketing planning and control
• To provide marketing intelligence for the organization
• To close the information Gap
• To evaluate and control

8. Developing Marketing Information

9. Marketers can obtain the needed information from
internal databases, marketing intelligence, marketing
research and information analysis.
1. Internal Databases (Internal record system): Internal
database is any collection of business data using the
internal networks. Marketers get different kinds of
information from the internal databases of the
company such as sales reports, invoice, statement of
costs, annual reports, special report, audit report,
inventories, cash flow statement etc.
- Customer related records : profile, bills, invoice,
inventory records etc.
- Sales related records : total sales, sales return, discount,
commission, sales and sales return trend etc.
- Other records : special report, annual report, audit
report, financial report etc.

10. 2. Marketing Intelligence: Marketing intelligence
system is the collection of qualitative and subjective
data about the changing conditions in macro
environment. Marketing intelligence system helps
marketers to identify their weak and strong aspects,
utilize opportunities, and improve their weaknesses.
# Formal sources : sales persons, intermediaries,
marketing information center, specialist and private
agency etc.
# Informal sources : news paper, magazines, trade
journal etc. and interactions with company’s
employee and customer.

11. 3. Marketing Research system
• Marketing research system is another important
component of marketing information system. It is
the systematic design, collection, analysis and
reporting of data and findings relevant to a
specific marketing situation facing the company.
The main purpose of marketing research is to
provide reliable, complete, and up- to- date
information for decision making.
Major aspects :
Product research; Price research; Place research;
Promotion research

12. 4. Information Analyzing:
Information analyzing is a set of statistical tools and
techniques models with hardware and software
support that helps the manager in analyzing the
information properly and using it in making better and
effective decisions.
The components of information analyzing are as
follows:
i) Data Bank:
ii) Statistical Bank:
iii) Model Bank:

13. Marketing Research System
Marketing research is the systematic gathering,
recording, and analyzing of data about problems
relating to the marketing of products or services. It
helps to solve marketing problems quickly,
correctly, and systematically. The main purpose of
marketing research is to provide reliable, complete,
and up-to-date information for decision making.
According to Philip Kotler “Marketing research is
defined as the systematic design, collection, analysis
and reporting of data and findings relevant to a
specific marketing situation facing the company”.

14. Process of Marketing Research
Marketing research is a process which consists of
following steps :
1. Define the problems and research objectives:
2. Research Design and selection of information
sources:
3. Data Collection:
4 : Data Preparation And Analysis:
5. Reporting Results and Findings:

15. Step 1 :Define the problems and research
objectives:
Researcher should take into account
• the purpose of the study
• back ground information
• information needed
• how it will used in decision making
Problem definition includes discussion with
industry experts, decision makers, analysis of
secondary data etc.

16. Step 2 : Research Design and selection of
information sources:
• Research design is a blue print or basement of
research
• Research design formulation steps are :
1. Definition of the information needed
2. Method of collecting data
3. Measurement and scaling procedure
4. Questionnaire design
5. Sampling process and sampling design
6. Plan of data analysis

17. Step 3 : Data Collection
• Data collection through e-mail, face to face
interview, questionnaire, telephone calls etc.
• Giving proper training and supervision to the
field work staff for minimizing data collection
errors.

18. Step 4 : Data Preparation And Analysis
• It includes editing, coding, transcription,
computer entry and verification of data.
• The data are analyzed and provide in put into
the management decision problem.
• Use of computer software
• To determine values, relationship and effect
in the reflected in the data.

19. Step 5 : Reporting Results and Findings:
• The entire project should be documented in a written
report that addresses the specific research questions
identified.
• It includes tables, figures, graphs to enhance clarity
and impact.
• It is presented in a comprehensible format.
• Management can use this report for decision-making
process.

20. International Marketing Research
International Marketing Research is the systematic
gathering, recording, and analyzing data to
provide information useful to marketing decision-making
facing a company operating internationally.
Objectives:
i) To carry out country screening and selection
ii) To evaluate a country’s market potential.
iii) To identify problems that would not require a
country’s listing for further consideration.
iv) To evaluate the components of marketing mix for
possible adoptions.
v) To facilitate in developing strategic marketing plan.

21. Practice of Marketing Information System in Nepal
MKIS as is an ongoing, organized procedure to generate, analyze,
disseminate, store, and retrieve information for used in marketing
decisions. It consists of integrated combinations of information,
information processing and equipment, software, and information
specialists that serve the various analysis, planning and control needs
of marketing decision making. It serves marketing process, marketers,
and stakeholders such as suppliers, intermediaries, and marketing
agencies. The marketing information system and its uses in marketing
decision in Nepal are as follows:
1. Sources of Marketing Information System: Internal and external
sources, only internal sources are used in Nepal.
2. Uses of information in marketing decision: Most of the Nepalese
firm take their marketing decision according to their experience,
knowledge, thought and philosophy of the marketing manager.
3. Components of marketing information system:

22. Components of MKIS in Nepal
1. Marketing research System: Marketing research system is
the systematic design, collection, analysis and reporting of
the data and findings relevant to a specific marketing
situation(problem) facing the company.
Major aspects of marketing research are : 4p research,
Consumer research, sales research, and competition research.
It is basically problem oriented. It is not getting attention
from marketing managers in Nepal. Many consultancy firms
are mushrooming in the private sector to provide market
research services.

23. 2. Marketing Intelligence System: Marketing intelligence system is
a set of procedures and sources used by managers to obtain
everyday information about pertinent development in the
marketing environment. There is limited use of marketing
intelligence system in Nepalese organizations.
3. Internal Records System : Marketers get different kinds of
information from the internal records of the company such as
sales report, statement of cost, annual report, special report, audit
report, inventories, cash flow statement account receivable and
payable. However, most of the Nepalese organizations have been
found not keeping their internal records updated.
4. Decision support System: Marketing decision support system is
an important component of MKIS in Nepal. It is a procedure that
allows a manager to interact with data and methods of analysis to
collect, analyze and interpret information. It is not widely used in
Nepal. Some of the private sector banks have been found using it
as a tool to interpret data.

24. THE END