2. Marketing Information System
A marketing information system (MKIS) consists
of people, equipment and procedures to gather,
sort, analysis, evaluate, and distribute needed,
timely and accurate information to marketing
decision makers
Kotler & Armstrong
1/18/2023 Copy right reserved 2
3. Marketing Information System
MKIS consists of people and procedures dedicated
to accessing information needs, developing
needed information and helping decision makers
use the information to generate and validate
actionable customer and market insights.
Kotler and Armstorng, 2o16
1/18/2023 Copy right reserved 3
4. Marketing Information System
A marketing information system is a set of
procedures and methods for the regular, planned
collection, analysis and presentation of
information for use in marketing decisions.
American Marketing Association
1/18/2023 Copy right reserved 4
8. Internal Record System
Internal databases are electronic collections of
information obtained from data sources within the
company.
Kotler & Armstrong
1/18/2023 Copy right reserved 8
9. Internal Record System
Marketing managers rely on data from internal
reports about orders, sales, prices, costs, inventory
levels, receivables, payables and so on.
The heart of the internal record system is the
order-to-payment cycle.
Sales representatives, dealers, and customers
dispatch orders to the firm.
The sales department prepares invoices and
transmits copies to various departments, Out-of-
stock items are back ordered.
1/18/2023 Copy right reserved 9
10. Internal Record System
Shipped items are accompanied by shipping and
billing documents that are sent to various
departments
Companies need to perform these steps quickly
and accurately, because customers favor firms that
can promise timely delivery.
Today many companies organize information in
databases- customer databases, product databases,
salesperson databases and so forth- and then
combine data from the different databases.
1/18/2023 Copy right reserved 10
11. Internal Record System
The customer database will contain every
customer’s name, address, past transactions, and
even demographics and psychographics (activities,
interests and opinions) in some instances.
1/18/2023 Copy right reserved 11
12. Marketing Intelligence System
A marketing intelligence system is a set of
procedures and sources managers use to obtain
everyday information about developments in the
marketing environment.
Kotler & Armstrong
1/18/2023 Copy right reserved 12
13. Sources of Marketing Intelligence
Marketing Managers
Sales Forces
Middlemen
Specialists
Outsourcing
Marketing information section
1/18/2023 Copy right reserved 13
14. Marketing Decision Support
System
Marketing decision support system (MDSS) is a
coordinated collection of data, systems, tools, and
techniques with supporting software and hardware
by which an organization gathers and interprets
information from business and the environment
and turns it into a basis for marketing action.
1/18/2023 Copy right reserved 14
15. Marketing Decision Support
System
A decision support system is a procedure that
allows a manager to interact with data and
methods of analysis to gather, analyze, and
interpret information.”
--- Stanton
1/18/2023 Copy right reserved 15
16. Components of MDSS
Data Bank
Methods Bank
Model Bank
1/18/2023 Copy right reserved 16
17. Marketing Research
Marketing research as the systematic design,
collection, analysis and reporting of data and
findings that are relevant to a specific marketing
situation facing the company.
Most large companies have their own marketing
research departments.
Some small companies can hire the services of a
marketing research firm or conduct research in
creative and affordable ways.
1/18/2023 Copy right reserved 17
18. Features of Marketing Research
Systematic
Problem oriented
Objective
Decision making
1/18/2023 Copy right reserved 18
19. Areas of Marketing Research
Product research
Advertising research
Consumer research
Sales research
Corporate research
Competitor research
1/18/2023 Copy right reserved 19
20. Marketing Research Process
Define the problem and research objectives
Develop the research plan
Collect the information
Analyze the information
Present the findings
1/18/2023 Copy right reserved 20
21. Major Concepts in Demand
Measurement
Dr. Gopal Thapa
Member Secretary
Marketing Subject Standing Committee
Tribhuvan University
22. Meaning of Demand and Market
Demand is want for specific product backed by
purchasing power and willingness to spend
Market is the set of all actual and potential
customers of a product with demnad
1/18/2023 Copy right reserved 22
23. Market
Potential market
Available market
Target/ served market
Penetrated market
1/18/2023 Copy right reserved 23
24. Market
Potential market: The set of consumers who
profess a sufficient level of interest in a market
offer
.Available market: The set of consumers who have
interest, income, and access to a particular offer.
Target market: Part of the qualified available
market the company decides to pursue.
Penetrated market: The set of consumers who are
buying the company’s products
1/18/2023 Copy right reserved 24
25. Levels of Demand Measurement
Market Demand
Company Demand
1/18/2023 Copy right reserved 25
26. Market Demand
Market demand for a product is the total volume
that would be bought by a defined customer group
in a defined geographical area in a defined time
period in a defined marketing environment under a
defined marketing program
Kotler and Keller
1/18/2023 Copy right reserved 26
27. Market Demand
Market demand is the total volume of product in a
:
Defined customer group
Defined geographical area
Defined time period
Defined marketing environment
Defined marketing programme
1/18/2023 Copy right reserved 27
29. Company Demand
Estimated share of market demand that a company
could expect to achieve at alternative levels of
marketing expenditure in a defined time period
Effected by marketing mix
Based on sales forecasting
Based on chosen marketing expenditure plan
30. Methods of Estimating Current
Market Demand
Total market potential
Area market potential
Company Market Share
31. Total market potential
It is maximum amount of sales that might be
available to an industry under a given level of market
expenditure during a given time period in given
environmental conditions
Total market potential
= Potential buyer × Average quantity per
buyer × price
32. Demand forecasting
Potential buyer=10 lakhs
Average qty per buyer =5
Price =Rs. 2/unit
Demand=?
1/18/2023 Copy right reserved 32
33. Area Market Potential
This estimates the market potential of different
territories such as nation, province, region, zone,
district
Methods
1. Market Build up method
2. Market Factor method
34. Market Build-up Method
It is based on identifying all the potential buyers in
each area and estimating their potential purchase
in a given period
This method is used for business markets.
The calculation is:
Area Market Potential
= Potential buyers × Potential purchase per buyer
35. Market Factor Analysis Method
(Index Method)
A single market factor is used as an index to
calculate the market potential.
Suppose, book market potential in Nepal is
directly related to population size and Kathmandu
valley has 10% of total population.
Then 10% of total book sales is the area market
potential for book in Kathmandu valley
1/18/2023 Copy right reserved 35
36. Multiple-factor Index Method
Multiple-factor index can be calculated by
introducing additional variables and assigning
weights to each variable.
This method is used for consumer markets
1/18/2023 Copy right reserved 36
37. Multiple Factor Index Method
Suppose, Kathmandu Valley has 10% of Nepal’s
population, 25% of Nepal’s disposable income
and 50% of Nepal’s retail sales.
Weight given to different factors are;
0.2for population size
0.5 for disposable income
0.3 for retail sales
Area market potential = (0.2×10)+(0.5×25)+(0.3×50)
= 2+12.5+15
= 29.5%
Thus, area market potential in Kathmandu is 29.5% of
Nepal’s total book sales
39. Methods of Estimating Future
Demand
Executive Judgement
Survey
Survey of Buyer’s intention
Composite of sales force opinion
Survey of Expert opinion
Market test method
Past sales analysis: Time series, statistical demand
analysis, econometrics
40. Practices of MKIS in Nepal
Lack of proper information while taking marketing
decisions
Investment in information system is taken as an
unnecessary expenditure in Nepalese business
scenario.
No separate marketing information system
Development of MKIS in Nepalese organization is
in tortoise’s pace.
41. Practices of MKIS in Nepal
Marketing decision making is based on past
experience and intuition or rule of thumb.
Marketing information system in private sector is
better than government sector
Internal record system is major portion of MKIS
in Nepalese organization.
There is growing use of computer to maintain
data warehouse.
1/18/2023 Copy right reserved 41
42. Practices of MKIS in Nepal
Internal record system in government organization
is very poor.
Eg: information about citizenship, land
ownership, driving license, vehicles, etc.
Use of marketing intelligence system is very
limited.
It is considered as a waste of financial resources.
Usually, marketers use newspaper ad tracking,
visiting competitors' website, etc.
1/18/2023 Copy right reserved 42
43. Practices of MKIS in Nepal
Some marketers use college students who works
as an intern to collect information about
competitors.
Nepal police, government staffs are also used for
marketing intelligence.
Presence of business spy is not heard till date in
Nepal.
Marketing research is still luxury in Nepal.
1/18/2023 Copy right reserved 43
44. Practices of MKIS in Nepal
Most of the research are conducted by university
students, Nepal Rastra Bank or donors such as
Asian Development Bank, World Bank, etc.
Research conducted by students are mainly
academic research.
Research wings of most of the University are at
survival stage.
1/18/2023 Copy right reserved 44
45. Practices of MKIS in Nepal
Multi-National Companies sometimes use
outsourcing techniques for marketing research.
Full service ad agencies are also providing
marketing research service to their clients based
on their requirements
Some popular media are also conducting
marketing research
Medium scale marketing research is dominated by
ad agencies and freelance researchers
1/18/2023 Copy right reserved 45
46. Practices of MKIS in Nepal
Marketing research and Consulting firms are
increasing in Nepal day by day.
Nepal Government is not research friendly till date
Use of decision support system in Nepal is getting
popular day by day.
Use of software for data analysis is increasing.
1/18/2023 Copy right reserved 46
47. Practices of MKIS in Nepal
Even private sector organization and college or
university are also conducting research and data
analysis training frequently.
Global research firms have already entered in
Nepalese market to conduct research, research
training and data processing.
Scope and importance of marketing information
system will definitely increase in the days to
come.
1/18/2023 Copy right reserved 47