MARKETING MANAGEMENT, MARKETING ‎INFORMATION SYSTEM, MKIS, NEED OF THE ‎MARKETING INFORMATION SYSTEM, ‎COMPONENTS OF MKIS, ADVANTAGES & ‎DISADVANTAGES MKIS, FUNCTIONS OF MKIS, ‎ORGANIZATION STUDY, LIBCORPIO786, BUSINESS ‎ADMINISTRATION, MANAGEMENT SCIENCE, ‎EDUCATION AND LEARNING,‎

1. IMPLICATIONS OF MARKETING INFORMATION SYSTEM
MARKETING MANAGEMENT (5565)
ASSIGNMENT # 2
HUMA WASEEM
ROLL # BR564185
COL MBA / MPA
SPRING SEMESTER 2018
DEPARTMENT OF BUSINESS ADMINISTRATION
ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD
HUMA MALIK
2018

2. IMPLICATIONS OF MARKETING INFORMATION SYSTEM
CONTENTS
1. INTRODUCTION . . ... 1
1.1. Definitions . .. ... 1
2. NEED OF THE MARKETING INFORMATION SYSTEM .. .. 2
3. COMPONENTS OF MKIS .... 2
3.1. Assessing Marketing Information Needs 3
3.2. Developing Marketing Information . . 4
3.2.1. Internal Data / Internal Records and Database Systems . 4
3.2.2. Marketing Intelligence 5
3.2.3. Marketing Research . 6
3.2.3.1. Defining the Problem and Research Objectives . .. 7
3.2.3.2. Developing the Research Plan . . 7
3.2.3.3. Implementing the Research Plan . . 7
3.2.3.4. Interpreting and Reporting the Findings . .. 8
3.2.4. Conducting Online Market Research . ... 8
3.3. Analyzing the Macroenvironment .. . 8
3.4. Analyzing and Using Marketing Information . 9
3.4.1. Customer Relationship Management (CRM) . . 10
3.4.2. Big Data and Marketing Analytics . . 10
3.5. Distributing and Using Marketing Information . 10
3.5.1. Forecasting and Demand Measurement . 11
3.5.2. Marketing Decision Support System (MDSS) 11
4. FUNCTIONS OF MKIS 11
5. ADVANTAGES & DISADVANTAGES MKIS . . 12
6. ORGANIZATION STUDY KFC .. . 14
6.1. KFC An Overview .. .15
6.2. History 15
6.3. Mission Statement .. 16
6.4. Restaurant Structure 16
6.5. Organizational Chart 18

3. IMPLICATIONS OF MARKETING INFORMATION SYSTEM
6.6. Activity, Input, Process and Output . 18
6.7. 4P . . 19
6.8. Marketing Information System . . 19
6.8.1. Technology Features 19
6.8.1.1. Internal Communication 20
6.8.1.2. POS System 20
6.8.1.3. Transaction Record 21
6.8.2. Functions of MKIS .. 21
6.8.3. The Importance of the System 22
6.9. SWOT Analysis . . 23
6.10. RECOMMENDATIONS 24
7. REFERENCES .. 25

4. 1
1. INTRODUCTION
Making marketing decisions in a fast-changing world is both an art and a science. To provide
context, insight, and inspiration for marketing decision making, companies must possess
comprehensive, up-to-date information about macro trends, as well as about micro effects
particular to their business. Holistic marketers recognize that the marketing environment is
constantly presenting new opportunities and threats, and they understand the importance of
continuously monitoring, forecasting, and adapting to that environment. (Kotler & Keller, 2012)
Marketing information system is abbreviated as MIS, MkIS or MKIS.
1.1 Definitions:
Organized and focused collection of information and its timely dissemination and
transmission to the personnel of evaluation and analysis. Te information covers the
business environment, customer base, suppliers and distributors, government agencies,
and competition. (Kurian, 2013).
A system that analyzes and assesses marketing information, gathered continuously from
sources inside and outside an organization. Timely marketing information provides basis
for decisions such as product development or improvement, pricing, packaging,
distribution, media selection, and promotion. See also market information system.
(Bu
A marketing information system (MIS) consists of people, equipment, and procedures
to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate
information to marketing decision makers. It relies on internal company records,
marketing intelligence activities, and marketing research. (Kotler & Keller, 2016b)
A marketing information system (MKIS) is a management information system (MIS)
designed to support marketing decision making. It as a "system in which marketing data
is formally gathered, stored, analysed and distributed to managers in accordance with
their informational needs on a regular basis. (Marketing information system.)
Decision support system (DSS) Computer information system that performs complex
data analysis that helps users make informed decisions. (Kurian, 2013).

5. 2
2. NEED OF THE MARKETING INFORMATION SYSTEM
Marketers frequently complain that they lack enough information of the right kind or have too
much of the throng kind. Regarding the spread of information throughout the company, they say
that it takes great effort to locate even simple facts. Subordinates may withhold information that
they believe will reflect badly on their performance. Often, important information arrives too
late to be useful, or on-time information is not accurate. Companies have greater capacity to
provide managers with information, but have often not made good use of it. Many companies
are now studying their managers' information needs and designing information systems to meet
those needs.
methods of
gathering and employing marketing information to help them provide greater value to
customers. A marketing information system (MKIS) is a set of procedures and methods that
apply to the regular, planned collection, analysis, and presentation of information that then may
be used in marketing decisions. An MKIS provides a means to accumulate information from
sources both internal and external to the organization for the purpose of making it routinely
available to managers for their more informed decision making. (Grewal & Levy, 2008).
Moreover, as Kotler's definition says, an MKIS is more than a system of data collection or a set
of information technologies:
"A marketing information system is a continuing and interacting structure of people,
equipment and procedures to gather, sort, analyse, evaluate, and distribute pertinent,
timely and accurate information for use by marketing decision makers to improve their
marketing planning, implementation, and control".
3. COMPONENTS OF MKIS:
marketers. Marketers have two advantages for the task: (1) disciplined methods for collecting
information and (2) time spent interacting with customers and observing competitors and other
outside groups. Some firms have marketing information systems that provide rich detail about
buyer wants, preferences, and behavior
The information needed by marketing managers comes from internal company records,
marketing intelligence and marketing research (Figure 1). The information analysis system then
processes this information to make it more useful for managers.
Every firm must organize and distribute a continuous flow of information to its marketing
managers. A marketing information system (MKIS) consists of people, equipment, and
procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate

6. 3
information to marketing decision makers. It relies on internal company records, marketing
intelligence activities, and marketing research. (Kotler & Armstrong, 2018)
Figure 1 The Marketing Information system
3.1 ASSESSING MARKETING INFORMATION NEEDS
managers. However, it may also provide information to external partners, such as suppliers,
resellers, or marketing services agencies. A good marketing information system balances
the information users would like to have against what they really need and what is feasible
to offer. Some managers will ask for whatever information they can get without thinking
carefully about what they really need. And in this age of big data, some managers will want
to collect and store vast amounts of digital data simply because technology lets them. But
too much information can be as harmful as too little. In contrast, other managers may omit
things they ought to know, or they may not know to ask for some types of information they
should have. The MKIS must monitor the marketing environment to provide decision
makers with information and insights they should have to make key marketing decisions.
Finally, the costs of obtaining, analyzing, storing, and delivering information can mount
quickly. The company must decide whether the value of insights gained from additional
information is worth the costs of providing it, and both value and cost are often hard to
assess. (Kotler & Armstrong, 2018)

7. 4
3.2 DEVELOPING MARKETING INFORMATION
Marketers can obtain the needed information from internal data, marketing
intelligence, and marketing research.
3.2.1 Internal Data / Internal Records and Database Systems
Many companies build extensive internal databases, collections of consumer and
Information in an internal database can come from many sources. The marketing
department furnishes information on customer characteristics, in-store and online sales
transactions, and web and social media site visits. The customer service department
keeps records of customer satisfaction or service problems. The accounting department
provides detailed records of sales, costs, and cash flows. Operations reports on
production, shipments, and inventories. The sales force reports on reseller reactions and
competitor activities, and marketing channel partners provide data on sales transactions.
Harnessing such information can provide powerful customer insights and competitive
advantage.
Internal databases usually can be accessed more quickly and cheaply than other
information sources, but they also present some problems. Because internal information
is often collected for other purposes, it may be incomplete or in the wrong form for
making marketing decisions. Data also age quickly; keeping the database current
requires a major effort. Finally, managing and mining the mountains of information that
a large company produces require highly sophisticated equipment and techniques.
(Kotler & Armstrong, 2018).

8. 5
To spot important opportunities and potential problems, marketing managers rely on
internal reports of orders, sales, prices, costs, inventory levels, receivables, and
payables.
The Order-to-Payment Cycle: The heart of the internal records system is the order-
to-payment cycle. Sales representatives, dealers, and customers send orders to the
firm. The sales department prepares invoices, transmits copies to various
departments, and back-orders out-of-stock items. Shipped items generate shipping
and billing documents. Because customers favor firms that can promise timely
delivery, companies need to perform these steps quickly and accurately.
Sales Information Systems: Marketing managers need timely and accurate reports
on current sales. Walmart operates a sales and inventory data warehouse that
captures data on every item for every customer, every store, every day and refreshes
it every hour. Marketers must carefully interpret sales data, however, to avoid
drawing wrong conclusions.
Databases, Data Warehousing, and Data Mining: A customer database is an
organized collection of comprehensive information about individual customers or
prospects that is current, accessible, and actionable for lead generation, lead
qualification, sales, or customer relationship management. Database marketing is
the process of building, maintaining, and using customer databases and other
databases (products, suppliers, resellers) to contact, transact with, and build
relationships with customers. Information captured by the company is organized
into a data warehouse where marketers can capture, query, and analyze data to
analysts use data mining to extract from the mass of data useful insights about
customer behavior, trends, and segments.
The explosion of data brought by the maturation of the Internet and mobile technology
gives companies unprecedented opportunities to engage customers. It also threatens to
overwhelm
opportunities and challenges in managing massive data sets. On the other hand, some
customers may not want a use of behavioral targeting
behavior for marketing purposes allows advertisers to better target online ads but
some consumers object to the practice. (Kotler & Keller, 2016a).
3.2.2 Marketing Intelligence
A marketing intelligence system is a set of procedures and sources that managers use to
obtain everyday information about developments in the marketing environment. The
internal records system supplies results data, but the marketing intelligence system
supplies happenings data. Marketing managers collect marketing intelligence by
reading books, newspapers, and trade publications; talking to customers, suppliers,
distributors, and other company managers; and monitoring online social media.

9. 6
personal browsers, are smart users of targeted marketing. Many consumers are happy to
cooperate: Not only do they not delete cookies, but they also expect customized
marketing appeals and deals once they accept them. (Kotler & Keller, 2016a).
Competitive marketing intelligence is the systematic monitoring, collection, and
analysis of publicly available information about consumers, competitors, and
developments in the marketplace. The goal of competitive marketing intelligence is to
improve strategic decision making by understanding the consumer environment,
opportunities and threats. Marketing intelligence techniques range from observing
consume
Good marketing intelligence can help marketers gain insights into how consumers talk
about and engage with their brands. Many companies send out teams of trained
observers to mix and mingle personally with customers as they use and talk about the
such as PepsiCo, Mastercard, Kraft, and
Dell have set up sophisticated digital command centers that routinely monitor brand-
related online consumer and marketplace activity. (Kotler & Armstrong, 2018).
3.2.3 Marketing Research
In addition to marketing intelligence information about general consumer, competitor,
and marketplace happenings, marketers often need formal studies that provide customer
and market insights for specific marketing situations and decisions. For example,
Samsung wants to know how many and what kinds of people will buy its next-
generation, ultrathin televisions. In such situations, managers will need marketing
research. Marketing research is the systematic design, collection, analysis, and reporting
of data relevant to a specific marketing situation facing an organization. Companies use
marketing research in a wide variety of situations. For example, marketing research
gives marketers insights into customer motivations, purchase behavior, and satisfaction.
It can help them to assess market potential and market share or measure the
effectiveness of pricing, product, distribution, and promotion activities.
Some large companies have their own research departments that work with marketing
managers on marketing research projects. In addition, these companies like their
smaller counterparts frequently hire outside research specialists to consult with
management on specific marketing problems and to conduct marketing research studies.
Sometimes firms simply purchase data collected by outside firms to aid in their decision
making. The marketing research process has four steps (Figure 2): defining the problem
and research objectives, developing the research plan, implementing the research plan,
and interpreting and reporting the findings. (Kotler & Armstrong, 2018).

10. 7
Figure 2 The Marketing Research
3.2.3.1 Defining the Problem and Research Objectives
Marketing managers and researchers must work together closely to define the
problem and agree on research objectives. The manager best understands the
decision for which information is needed, whereas the researcher best understands
marketing research and how to obtain the information. Defining the problem and
research objectives is often the hardest step in the research process. The manager
may know that something is wrong without knowing the specific causes.
After the problem has been defined carefully, the manager and the researcher set the
research objectives. They would have one of three types of objectives. The
objective of exploratory research is to gather preliminary information that will
help define the problem and suggest hypotheses. The objective of descriptive
research is to describe things, such as the market potential for a product or the
demographics and attitudes of consumers who buy the product. The objective of
causal research is to test hypotheses about cause-and-effect relationships.
Managers often start with exploratory research and later follow with descriptive or
causal research. The statement of the problem and research objectives guides the
entire research process.
3.2.3.2 Developing the Research Plan
The research plan outlines sources of existing data and spells out the specific
research approaches, contact methods, sampling plans, and instruments that
researchers will use to gather new data. Research objectives must be translated into
specific information needs.
The research plan should be presented in a written proposal. The proposal should
cover the management problems addressed, the research objectives, the information
proposal also should include estimated research costs.
information needs, the research plan can call for gathering secondary data, primary
data, or both. Secondary data consist of information that already exists somewhere,
having been collected for another purpose. Primary data consist of information
collected for the specific purpose at hand.
3.2.3.3 Implementing the Research Plan
The researcher next puts the marketing research plan into action. This involves
collecting, processing, and analyzing the information. Data collection can be carried
marketing research staff or outside firms. Researchers should

11. 8
watch closely to make sure that the plan is implemented correctly. They must guard
against problems with data collection techniques and technologies, data quality, and
timeliness. Researchers must also process and analyze the collected data to isolate
important information and insights. They need to check data for accuracy and
completeness and code them for analysis. The researchers then tabulate the results
and compute statistical measures.
3.2.3.4 Interpreting and Reporting the Findings
The market researcher must now interpret the findings, draw conclusions, and
report them to management. The researcher should not try to overwhelm managers
with numbers and fancy statistical techniques. Rather, the researcher should present
important findings and insights that are useful in the major decisions faced by
management. However, interpretation should not be left only to researchers.
Although they are often experts in research design and statistics, the marketing
manager knows more about the problem and the decisions that must be made. The
managers and researchers must work together closely when interpreting research
results and both must share responsibility for the research process and resulting
decisions.
(Kotler & Armstrong, 2018)
3.2.4 Conducting Online Market Research
The internet has given us a multitude of ways to gather market research on the market,
customers and industry trends. For conducting online research following are some tools
that are used for market research:
Keyword Search
Competitor Links
Blogs
Conduct Online Surveys
Audience Research
Product Research
Brand Analysis
Psychological Profiling
Post-sale or Consumer Satisfaction Research
3.3 ANALYZING THE MACROENVIRONMENT
By learning to spot and analyze trends in the macroenvironment, marketers can identify
new market opportunities. A trend is a direction or sequence of events with momentum and
durability, revealing the shape of the future. A fad is a craze that is unpredictable, of brief
duration, and without long-term significance. A company can cash in on a fad, but getting it
right requires luck and good timing. Marketing research and demand analyses are, as

12. 9
discussed earlier, necessary to determine the profit potential of new market opportunities
based on macroenvironmental trends.
Firms must monitor six major forces in the broad environment: demographic, economic,
sociocultural, natural, technological, and political-legal (Table 1). Their interactions will
lead to new opportunities and threats. For example, explosive population growth
(demographic) leads to more resource depletion and pollution (natural), which leads
consumers to call for more laws (political-legal), which stimulate new technological
solutions and products (technological) that, if they are affordable (economic), may actually
change attitudes and behavior (sociocultural).
Table 1 Major Forces in the Macroenvironment
Force Key Elements to Monitor
Demographic Environment
Worldwide population growth
Population age mix
Diversity within markets
Educational groups
Household patterns
Economic Environment
Consumer psychology
Income distribution
Income, savings, debt, and credit
Sociocultural Environment
World views
Core cultural values
Subcultures
Natural Environment
Shortage of raw materials
Increased cost of energy
Increased pollution levels
Changing role of governments
Corporate environmentalism
Technological Environment
Accelerating pace of change
Unlimited opportunities for innovation
Varying research and development budgets
Regulation of technological change
Political-Legal Environment
Increase in business legislation
Growth of special-interest groups
(Kotler & Keller, 2016a)
3.4 ANALYZING AND USING MARKETING INFORMATION
Information gathered from internal databases, competitive marketing intelligence, and
marketing research usually requires additional analysis. Managers may need help applying
the information to gain customer and market insights that will improve their marketing
decisions. This include advanced analytics to learn more about the relationships within sets
of data. Information analysis might also involve the application of analytical models that
will help marketers make better decisions. Once the information has been processed and
analyzed, it must be made available to the right decision makers at the right time.

13. 10
3.4.1 Customer Relationship Management (CRM)
The current big data era, most companies are awash in information about their
customers and the marketplace. Still, smart companies capture information at every
possible customer touch point. These touch points include customer purchases, sales
force contacts, service and support calls, web and social media site visits, satisfaction
surveys, credit and payment interactions, market research studies every contact
between a customer and a company. Unfortunately, this information is usually scattered
widely across the organization or buried deep in separate company databases. To
overcome such problems, many companies are now turning to customer relationship
management (CRM) to manage detailed information about individual customers and
carefully manage customer touch points to maximize customer loyalty.
CRM consists of sophisticated software and analysis tools from companies such as
Salesforce.com, Oracle, Microsoft, and SAS that integrate customer and marketplace
information from all sources, analyze it, and apply the results to build stronger customer
marketing teams know about individual customers, providing a 360-degree view of the
customer relationship. (Kotler & Armstrong, 2018)
3.4.2 Big Data and Marketing Analytics
Simply collecting and storing huge amounts of data has little value. Marketing analytics
consists of the analysis tools, technologies, and processes by which marketers dig out
meaningful patterns in big data to gain customer insights and gauge marketing
performance. Marketers apply marketing analytics to the large and complex sets of data
they collect from web, mobile, and social media tracking; customer transactions and
engagements; and other big data sources. (Kotler & Armstrong, 2018)
The benefits of customer relationship management and
without costs or risks. The most common mistake is to view CRM and marketing
analytics as technology processes only. Or they get buried in the big data details and
MKISs the big picture. Yet technology alone cannot build profitable customer
improve customer relationships by simply installing some
new software. Instead, marketers should start with the fundamentals of managing
customer relationships and then employ high-tech data and analytics solutions. They
should focus first on the R (Kotler &
Armstrong, 2018)
3.5 DISTRIBUTING AND USING MARKETING INFORMATION
Marketing information has no value until it is used to make better marketing decisions.
Thus, the marketing information system must make information readily available to
managers and others who need it, when they need it. In some cases, this means providing
managers with regular performance reports, intelligence updates, and reports on the results
of research studies. Many firms use company intranet and internal CRM systems to

14. 11
facilitate this process. These systems provide ready access to research and intelligence
information, customer transaction and experience information, shared reports and
documents, and more. In addition, companies are increasingly allowing key customers and
value-network members to access account, product, and other data on demand through
extranets. Suppliers, customers, resellers, and select other network members may access a
purchases, and check orders against
inventories to improve customer service. . (Kotler & Armstrong, 2018)
3.5.1 Forecasting and Demand Measurement
Conducting marketing research and collecting marketing intelligence can help to
identify marketing opportunities. The company must then measure and forecast the size,
growth, and profit potential of each new opportunity. Sales forecasts prepared by
marketing are used by finance to raise cash for investment and operations; by
manufacturing to establish capacity and output; by purchasing to acquire the right
amount of supplies; and by human resources to hire the needed workers. If the forecast
is off the mark, the company will face excess or inadequate
based on estimates of demand, managers need to define what they mean by market
demand. (Kotler & Keller, 2016a)
3.5.2 Marketing Decision Support System (MDSS):
Marketing Decision Support System (MDSS) is the 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.
4. FUNCTIONS OF MKIS
The various functions of Marketing Information System are:
i. The marketing identification function: The determination of potential buyers and
their characteristics is vital in order to satisfy their needs and desires. This enables the
marketer to know :
Where the buyers are located
When do they buy
How frequently do they buy
In what quantity do they buy
ii. The purchase motivation function: An assessment of various social, economic and
psychological forces which influence the purchase behavior of the market is made.
iii. The product adjustment function: This function includes all such activities which are
necessary to match the product/services offerings with the market.

15. 12
iv. The physical distribution function: The actual movement of goods from the points of
production to the points of consumption is considered in this function.
v. The communication function: This function includes decisions on advertising,
personal selling, sales promotion, publicity, packaging issues etc.
vi. The transaction function: It includes all such activities which are needed to facilitate
the transfer of title of ownership of goods/services between the parties in a transaction.
vii. The post transaction function: In this function, feedback about the performance of the
product/service is obtained from the customer, so that customer satisfaction can be
ensured.
5. ADVANTAGES & DISADVANTAGES OF MKIS
Advantages: With an increasingly competitive and expanding market, the amount of
information needed daily by an organization is profound. Thus they have to establish a
Marketing Information system. There are several advantages of Marketing information systems.
i. Organized Data collection Lots of data can be collected from the market. Organizing
data is very important else the data is meaningless. Thus MKIS helps marketer to
organize their database thereby improving productivity.
ii. A broad perspective With a proper MKIS in place, the complete organization can be
tracked which can be used to analyse independent processes. This helps in establishing
a broader perspective which helps us know which steps can be taken to facilitate
improvement.
iii. Storage of Important Data Several times in pharmaceuticals, when one drug is
being produced they may need data of another drug which was produced years back.
Similarly in Media, photographs are stored in archives. This storage of important data
plays a crucial role in execution and thus proves again that MKIS is not important only
for information but also for execution.
iv. Avoidance of Crisis The best way to analyse a stock (share market) is to see its
past performance. MKIS helps to keep tracks of margins and profits. With an amazing
information system established, marketer can know where their organization is moving
and probably avert a crisis long before it has taken place.
v. Coordination Consumer durables and FMCG companies have huge number of
processes which needs to be coordinated. These companies depend completely on
MKIS for the proper running of the organization. This is mainly because of the speed
required to access information and implement it.
vi. Analysis and Planning MKIS is critical for planning. For planning, the first thing
which is needed is the organizations capabilities, then the business environment and
finally competitor analysis. In a proper MKIS, all these are present by default and are
continuously updated. Thus MKIS is very important for planning and analysis.

16. 13
vii. Control Just like MKIS can help in a crisis, in normal times it provides control as
marketer have information of the various processes going on and what is happening
across the company. Thus it provides marketers with a sense of control.
Disadvantages Maintenance, complexity and setting up a MKIS are one of the major
hindrances to Marketing information systems. Furthermore, wrong information being fed in
MKIS can become cumbersome and appropriate filters need to be established. (Advantages
of Marketing

17. 14
ORGANIZATIONAL STUDY
KFC
MANAGEMENT INFORMATION SYSTEM

18. 15
6. KFC MANAGEMENT INFORMATION SYSTEM
6.1. KFC AN OVERVIEW
Food, fun & Festivity, this is what KFC is all leading the market since its inception, KFC
provides the ultimate chicken meals for a chicken loving nation. Be it colonel sanders secret
original recipe chicken or the hot & spicy version, every bite brings a yum on our face. At KFC
Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long way. With over
10,000 outlets in the world, KFC has maintained its title, for the last 60 years, of being the
chicken Experts. Opening the first KFC outlet in Gulshan-e-Iqbal in 1997. KFC wore the title of
being the market leader in its industry. Serving delicious and hygienic food in a relaxing
new products and opening new restaurants for its customers.
Presently KFC is branched out in eighteen major cities of Pakistan (Karachi, Lahore,
Gujranwala, Sukkur & Murree) with more than 80 outlets nationwide. (KFC Pakistan).
6.2. HISTORY
KFC, also known as Kentucky Fried Chicken, is a fast food brand (also called a QSR, or quick
serve restaurant) specializing in chicken. With more than 19,500 units in more than 115
b
sandwiches, hot wings, and desserts.
ders in Kentucky in 1930 during the Great
Depression. The first Kentucky Fried Chicken franchise was opened in Salt Lake City, Utah in
finger-
KFC Corp. is based in Louisville, Kentucky, and is a subsidiary of Yum! Brands, which also
owns Pizza Hut and Taco Bell. Yum! Brands has almost 42,000 restaurants in more than 125
countries and territories, making it one of the world
years, KFC franchisees have had the option to co-brand with Taco Bell or Pizza Hut.
According to company figures, the KFC system serves more than 12 million customers daily.
Most purchases are take out or to-go, although the stores also offer in-store dining. In 2015,
Yum! Brands announced that KFC would begin deliveries by 2016, further expanding its reach
claims an average of more than 185 million people see a KFC commercial at least once a week.
KFC is also a pioneer in the use of social media to attract and engage customers.

19. 16
KFC franchisees receive ongoing support through The Yum! Value Network, which offers
programs and support that include brand recognition, customer attraction, competitive
advantage, franchise value system, multi-unit growth, economic stability, giving back to the
community, development expertise, access to financing, solid business support, quality on-
boarding and training, a reliable supply chain, and return on investment.
6.3. MISSION STATEMENT
6.4. RESTAURANT STRUCTURE
6.4.1. Area Mangers:
Area Managers are accountable for providing coaching, leadership and operational support
to 8-10 KFC Restaurants within a defined Area.
6.4.2. Restaurant General Manager
The Restaurant General Manager is accountable for creating and running an energetic
and valuable work environment, which is committed to serving the best chicken at the
fastest speed and with a smile. The Restaurant General Manager reports directly to an Area
Manager and is accountable for successfully implementing and maintaining all Company
policies and procedures in relation to operations, customer service, cash handling,
marketing, purchasing, human resources, health & safety, administration, training and
development.

20. 17
6.4.3. Assistant Manager
The Assistant Manager is responsible for assisting the Restaurant General Manager
(RGM) in creating an energetic and valuable work environment, which is committed to
serving the best chicken at the fastest speed and with a smile. Assistant Managers are
also responsible for ensuring all Company policies and procedures are followed in
relation to operations, customer service, cash handling, marketing, purchasing, human
resources, health & safety, administration, training and development.
6.4.4. Trainee Managers
Responsible for assisting the Restaurant General Manager and Assistant Managers in
creating an energetic and valuable work environment, which is committed to serving
the best chicken at the fastest speed and with a smile. Trainee Managers help with day-
to-day running of the restaurant, and need to ensure that all operations, customer
service, cash handling, marketing, purchasing, human resources, administration and
training & development policies are followed.
6.4.5. Customer Service Team Members
Responsible for working the service areas and ensuring quality product, service and
cleanliness is delivered to all customers at top speed and with a smile!
6.4.6. Food Service Team Members
main task is to prepare and cook the irresistible KFC products! The cook must also
maintain the cleanliness of the cooking area as well as the quality of product and speed
of preparation.

21. 18
6.5. ORGANIZATIONAL CHART
6.6. ACTIVITY, INPUT PROCESS AND OUTPUT
KFC products are the main raw materials (Chicken, mashed potatoes, seasoning) determined by
the head office supplier, usually raw materials (bread, beverage puree, vegetables, packaging,
etc.)
6.6.1. Input
The menus are shown above the counter, instead there are also usual plastic
front of the counter.
The customers can makes an order after choosing the menus they interested in.
6.6.2. Process
Customers queuing while waiting for their turns.
The counters worker will take the order based on customers has chosen.
The workers will ring up the order and assemble partially-prepared ingredients
to complete the order.
The customer has to wait a few minutes while the worker was preparing the
order.
The menus / meals were prepared after a few minutes waiting and ask for the
payment form the counter.
6.6.3. Output
The customers pick up the meals after making a payment. The customers will
receive a receipt from the workers.
Take a seat and enjoy the meals.

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6.7. s OF MARKETING
6.7.1. Product
Their all products are different from every product and the packaging and other
products feature are different from others. They change their products by introducing
new products but their main product the Kentucky fried chicken is the same.
6.7.2. Price
The price is not affordable by all persons in Pakistan. Due to its large setup the price
selecting are very challenging for the new product of KFC.
6.7.3. Place
They provide free home deliveries for some specific cities. They open their outlets in
those places in the cities where people can buy products easily and without difficulties.
They also introduce mobile units for delivery of their products
6.7.4. Promotions
In Pakistan KFC do not advertise their products too much due to its reputation in other
countries. They promote their products through special packages like Ramadan
packages, mid night package. They promote their products through social media,
pamphlets and through other promotion strategies.
6.8. MARKETING INFORMATION SYSTEM
6.8.1. Technology Features
New techniques affect the quality of products and services in better way. Technology is
very important in order to compete with the competitors. Organizations have an eye on
their competitors and also new techniques which their competitors used.
KFC master franchisee, Cupola Pakistan (Pvt) Ltd. has been one of the early users of
SidatHyder Supply Chain Management solutions which is the basis to manage all the
Supply Chain activities countrywide. Complementing its SCM product line,
SidatHyderMorshed Associates has developed a Quick-Service Restaurant solution
(QSR) for KFC in Pakistan. The front-end application runs on a touch-screen display
and is fully integrated with the SCM, there by offering an end-to-end functionality by
catering to restaurant needs and the complete cycle of over-the-counter sales, purchase
& inventory management
but KFC has efficient delivery system; they provide home delivery so quickly. KFC
purchase machinery from Haney Penny company, they are main suppliers of machinery
throughout the world.
Sidat Hyder- information solutions for Restaurant (i-Restaurant) provided a robust, point of
sales (POS) flexible, easy-to-use and, intuitive point of sales (POS) solution that saves time,
increases staff efficiency, gives more control and delivers timely reporting to help in
maximizing the returns on investments. It has been designed to provide all following
functions:

23. 20
24 x 7 operations
Fast customer service
Effective Costing
Inventory Management
Procurement Planning
Procurement
Timely Replenishment
Flexible Point of Sale (POS)
Management Reporting
Integrated Solution
Disaster Recovery (Sales data recovery in case of failure of POS Machine)
Computer Information System
It is a touch screen machine to facilitate the computation the amount of food. Used
as the calculation of the amount of food bought by customer at the counter
payments.
Credit Card Swipe Machine
Credit card payment service with flexible and customizable solution.
Websites
To get information about the product, promotion, history of KFC and etc.
http://www.kfcpakistan.com
WiFi
KFC is offering the free WiFi as an incentive to attract customers to surf the net at
KFC premise and at the same time customer will buy some food or drinks.
Telecommunication
The Recipe Scaling and Food cost is features with vendor purchasing management
that was installed in all KFC branch locations. These locations were connected via
VPN using ADSL technology.
6.8.1.1. Internal Communication
Internally all the KFC Pakistan stores communicate regularly for the betterment of
organization. KFC Pakistan has a Paper Less environment in the organization. They
use Telephone and E-mail facilities to remain in contact with their Head Office
Karachi to plan strategies, share ideas and get instruction to maintain and improve
the business because these two ways of communication are very fast an very cheap
as for as e-mail as concerned, they have no traditional way to communicate like
time consuming traditional mail system.
6.8.1.2. POS System
POS (point of sale) is the physical location at which goods are sold to customers. A
point-of-sale (POS) software terminal is a computer replacement for a cash register.
More sophisticated than traditional cash registers, a POS (point of sale) software
system includes the ability to track customer orders, process credit cards, and

24. 21
manage inventory.
Point of Sale system is used including both software and hardware.
PAR provide the tools that KFC Pakistan need to increase order accuracy, improve
speed-of-service and raise customer satisfaction levels with software solutions that
can span the entire enterprise - from the front counter to the back office and beyond
to integrate the total organization.
6.8.1.3. Transaction Record
KFC Pakistan uses a complete package of Point of Sale system to keep record of
every transaction occur. All KFC Pakistan stores nationwide use POS and at the
closing time of the store they send a complete transactional record of that day by
using POS through internet. Because of this head office maintain their accounts
very well and take quick decision on the behalf of these records.
6.8.2. Functions of MKIS
Each KFC outlet use MKIS in accounting, knowing production, and very useful in
formulating HR policies which helps them to rate their employees. MKIS systems can
provide predictions about the effect on sales that an alteration in price would have on a
product which is very useful for KFC future development. These Decision Support Systems
(DSS) enable more informed decision making within an enterprise than would be possible
without MIS systems. MIS systems let the KFC management:
To capture information and store it, whenever they are making bills it helps them to
count sales per day, per week and per month because a copy of the bill is stored in the
computer.
billing or taking order they just enter the code of the product requested at that time and
the quantity demanded.
Control flow of information into, around and out of the systems.
Work within legislation such as the Data protection Act.
Manage resources this is a very important function as every day inventory is recorded
and therefore resources could be managed.
Produce reports for themselves so that they can compare their own performances with
their own and other.
Maintain records needed for quality control so that the success story of all the
employees can be appraised.
Respond confidently to the demands of the Common Inspection Framework MIS help
them because they now easily check when the last stocking was done.
Manage and track employee records of work, achievement and progression for
promotions.
Record and track outcomes.
Manage marketing information to further improve sales.

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And a host of other information related functions.
When the MKIS are flexible, and relate to the needs of the organization, the clients and the
curriculum that they are delivering, then they work well and effectively. One has to be sure
that, whatever systems they use, they suit their purposes and can be customized to do so, are
easy to use and allow rapid data entry with rapid and flexible access for reporting purposes.
6.8.3. The Importance of the System
The emergence of a global economy, transformation of industrial economies,
transformation of the business enterprise, and the emergence of digital firm make
information systems essential in business today. Information system is a foundation for
conducting business today. In many businesses, survival and the ability to achieve
strategic business goals is difficult without extensive use of information technology.
Including KFC, there are six reasons or objectives why businesses use information
system:
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival
Operational excellence.
Business improves the efficiency of their operations in order to achieve higher
profitability. Information systems are important tools available to KFC managers
for achieving higher levels of efficiency and productivity in business operations.
New products, services, and business models.
Information system is a major tool for KFC to create new products and services,
and also an entirely new business models. A business model describes how a
company produces, delivers, and sells a product or service to create wealth.
Customer/supplier intimacy.
When a business serves its customers well, the customers generally respond by
returning and purchasing more. This raises revenue and profits. The more a
business engages its suppliers, the better the suppliers can provide vital inputs.
Improved decision making.
Managers of KFC having the right information at the right time to make an
informed decision. These raise outcomes less costs and raise customers.
Information system made it possible for the managers to use real time data from the
marketplace when making decision.
KFC provided the list of menu together with price, on the advertisement in the
website so that the customer can find the details about the menu.
Competitive advantage

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KFC's competitive advantage is its supply chain and distribution system. This
allows the fast food giant to cultivate relationships with business partners and
establish a footing in regions where the competition is still struggling. KFC's supply
chain and distribution system is so well set up around the world. KFC is also
able to compete effectively because of its famous trade secret: the 11 herbs and
spices that it uses in the products sold all over the world.
Day to day Survival.
KFC is also using website and social media for order the items from the
company. Information technology has become more of a commodity, when coupled
with complementary changes in organization and management; it provide the
foundation for new products, services, and ways of conducting business that
provide firms with a strategic advantage.
6.9. SWOT ANALYSIS
6.9.1. Strengths
Brand Equity
Strong parent company
KFC secret recipe of 11 herbs and species
Strong Franchises all over the world
Interactive relationship marketing
Strong trademarks recipes
Ranks highest among all chicken restaurants
Chains for its convenience and menu variety
Largest multi-branded restaurant in the world
Use of IT technologies and other social medias for promotions, ordering and
feedbacks
6.9.2. Weaknesses
Lack of knowledge about their customers
Lack of relationship building with employees, customers and suppliers
Lack of focus on Research &Development
Only focus higher income level people
Presence of Multinational competitors in the market e.g. McDonalds, Dominos.
Use of Unhealthy fats
6.9.3. Opportunities
opportunity to expand their sweet products
open more outlets to get maximum market share
temporary outlets in peak season in the hill stations.
capture more customers by decreasing the price of their products
Updating their restaurants, balanced menu, customer focus and increase
delivery service.

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6.9.4. Threats
Increasing inflation rates directly affect menu prices
Market Competitors- Supermarkets and new competitors
Health Trend away from fried foods
Changing customer demands and eating habits
Diseases like bird flu is the big threat for KFC
6.10. RECOMMENDATIONS
KFC is a market leader in providing Fried chicken. As KFC, so it is competing with the
prominent market signs like pizza hut, McDonalds. They should use MKIS for researching and
gathering data and product feedback from customers regularly. They should keep on marketing
research and focus on customer needs and varying tastes, and keep up-to-date their menu with
new varieties. But as price is always a primary concern for the customer, therefore, they should
adopt certain strategy to attract the customers and set-up promotional activities by some
additive offers to customers.
As far as placement of the products is concerned, it is an important factor, for a company to
increase its market share, by targeting the right customer. KFC needs to have more outlets, at
commercial areas. It will help to target the actual as well as the potential customers. Mobile
outlets may be an effective addition as well.
KFC should work for having more solid marketing departments. They should organize and run
the proper advertisement campaign. It would definitely be an incremental factor for their sales.
They can also use the brand promotions. They can set up the promotional campaigns. All they
need is an effective marketing department to facilitate the promotional activities.
MKIS can be very effective if used properly for research and marketing purpose. By collecting
research data it will help the decision makes where and how to promote well the product and
services, how they can facilitate more by mobile services. Data collected from Social media and
direct CRM can be very useful.

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Business Dictionary. Retrieved from http://www.businessdictionary.com/definition/marketing-
information-system.html
Franchising. Retrieved from https://www.franchising.com/kfc/overview.html
Grewal, D. and Levy, M. (2008). Marketing. Boston: McGraw-Hill, Irwin.
KFC Pakistan. Retrieved from https://www.kfcpakistan.com/page/about-us
Kotler, P. and Armstrong, G. (2018). Principles of Marketing, 17th
global ed. Harlow: Pearson
Education.
Kotler, P. and Keller, K. L. (2012). Marketing Management, 14th
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Kotler, P. and Keller, K. L. (2016a). A Framework for Marketing Management, 6th ed, Golabl.
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Kotler, P. and Keller, K. L. (2016b). Marketing Management, 15th
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Kurian, G. T. (2013). The AMA Dictionary of Business and Management. New York:
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Marketing Information System. Wikipedia. Retrieved from
https://en.wikipedia.org/wiki/Marketing_information_system
What is marketing information systems. sites.google.com. Retrieved from
https://sites.google.com/site/MKISprojectkickoff/what-is-marketing-information-
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