A marketing information system is a platform for collecting, storing, analyzing, and distributing important marketing data received from internal and external resources. It provides marketers and other specialists with easy accessibility to accurate data that helps them make informed decisions oriented on business growth.
In this article, you'll find out the benefits of a marketing information system, unveil its components, and see some examples.
Why is a marketing information system important?
Whether you are a marketer or a business owner, sooner or later, you need to take strategic decisions to improve your product, increase your market share, attract new audiences, and handle the competition. The most reliable foundation of any decision is data. With the help of accurate information about your marketing environment, competitors, customers, and their behavior, you'll manage to make better campaigns. The insights obtained from reports and marketing research will prevent you from playing a guessing game and wasting your time and budget in vain. The more complex your marketing information system, the more value you can get from it.
Other benefits of using a marketing information system include the following ones:
- a thorough analysis of demand and supply;
- increased competitiveness and your market share;
- identifying business development opportunities;
- implementing consumer-oriented approach;
- identifying and managing business risks;
- improving the overall marketing strategy of your company;
- keeping an eye on your competition;
- better control of all marketing operations.
Although the benefits are tempting, implementing a marketing information system requires some money, time, and an educational curve. If you are ready to get started, discover the ways to get the necessary information. They are also called components.
4 Components of Marketing Information System
These components form a holistic marketing information system. So, to make the most out of it, you need to combine them effectively.
- Internal records. This is the first and most easily obtainable type of information you can get inside your organization. For this purpose, you need to monitor your cash flows, employee costs, product inventory, sales, and marketing reports on the performance, including current and past ones, credits, etc. Internal records include all the financial, transactional, and marketing data from your performance reports.
- Marketing research. This essential marketing information system component allows you to state a specific problem as your current business goal and investigate all the details necessary for developing its solution. If you are thinking of developing a new product, you should conduct marketing research. Then, based on your finding, you'll manage to create a solution. Stating a problem lets marketers direct all their efforts into collecting a particular type of data from the most meaningful sources.
- Marketing intelligence. This type of data makes it possible to understand the current situation and changes in the market, trends, competitors' strategies, recent innovations in the market, and consumers' preferences. You can get it from external resources such as journals, magazines, competitors' sites, marketplace overviews, press, partners, suppliers, etc.
- Marketing decision support system (MDSS). This data can be retrieved from special analytics software and services that help marketers collect, store, and analyze data to make better decisions. For example, you can use specific third-party platforms to carry out market segmentation or discover the average costs spent on PPC advertising by companies from your industry.
Combining these 4 marketing information system components will help you understand the actual situation both in the market and inside your company and improve your strategies accordingly.
Examples of Marketing Information System
Nowadays, almost every business has a marketing information system since it helps them make better decisions and, as a result, drive more sales. For example, many retail stores provide their clients with loyalty cards, and many brands offer customers the opportunity to create their profiles in their online store. Both loyalty cards and profiles help businesses collect data about clients. They keep track of their purchase behavior, the sum of money spent on purchases, level of engagement, items viewed, etc. With this data, they manage their pricing policy, create better marketing campaigns and come up with the relevant offers in the best place and at the right time.
Online booking services operate similarly. They monitor their client’s habits, preferences, and routes to gain some insights and act on them. For example, airlines and hotel services keep track of all the data mentioned above to use it to their advantage. This way, they monitor the demand and increase prices when it rises. They can also offer their frequent buyers discounts during the off-season.
Congrats, now you know the benefits of a marketing information system, its components, and some examples. Implement this approach in your business to keep pace with the market changes and increase your profits.
Last Updated: 28.10.2022