Marketing Information System(4th Sem)

Unit 3 Marketing Information System
Use as a reference only….!!!!

Meaning

A marketing information system consist of people and procedure for assessing informational need developing information and helping decisions maker to use the information to generate and validate actionable customers and market insight. Marketing information system began an end with information. First marketing information system interact with information need second it interact with marketing environment through internal database, marketing intelligence activities, and marketing research. In conclusion, the MIS help users to analyze and use information to develop customer insights, make marketing decision and manage customer relationship.

Assessing Marketing Information Need

Good marketing information systems balance the information what the customer really need and what is feasible to offer. The company which designing the information system must consider the needs of all. Sometime the information may not sufficient enough to forecast but in sometime greater extent by obtaining, analyzing, storing and delivery information by itself has no worth unit its value come from its use.

Components of Marketing Information System

a.    Internal Database: - Many companies build extensive internal database collection of consumer and market research obtained from different sources especially the company network. Marketing manager get the information from customer transaction demographic variables, psychographic variable and buying behaviour. The sales force report about customer, dealer, retailer, competitors and marketing channel. Here is an example:-

Pizza Hut Database contain detail customer data on to million customer received from phone, online order and point-of-sale transaction having more than 7500 restaurants in United States of America.

b.    Marketing Intelligence System:- The marketing intelligence

system provides information about everyday happening in the marketing environment. According to Philip Kotler,” Marketing intelligence system is a set of procedure and sources used by managers to obtain everyday information about the market in the marketing environment.”

The sources of Marketing Intelligence System are:-

·         Marketing Managers:-

^Ø   From Books

^Ø    Magazines

^Ø    Newspaper

^Ø    Customer

^Ø    Suppliers

^Ø    Distributors

·         Sales Force

·         Outsourcing (Marketing Detective)

·         Middle Man

·         Specialist (Mystery Shopper)

·         Marketing Information Section (Internet Surfing)

c.  Marketing Research:- Research is the systematic gathering of

information. Marketing research is the systematic enquiry undertaken to help resolve a specific market problem. According to Phillip Kotler,” Marketing Research is the systematic design, collection, analysis and reporting of data and finding relevant to a specific marketing situation facing by the company.”

·         Features of Marketing Research:-

^Ø  Systematic

^Ø    To the fact

^Ø    Objective

^Ø    Problem-Oriented

^Ø    Decision Making

·         Process of Marketing Research:-

^Ø  Defining the problem:- The problem should be defined carefully which should be based on literature review, experience survey, case study and brainstorming.

^Ø  State the research objective:- The objective of the research should be stated clearly and precisely objective should follow from the problem defined for research, hypothesis can also be posed. It explains relationship between variables. It implies cause and effect relationship.

^Ø   Develop research plan:- It is a research methodology for gathering the needed information it 

deal with decision on:-

o  Data Sources

o  Sampling Method

i.   Sampling Plan

^ü   Sampling Unit:- Who to be researched.

^ü   Sampling Size:- How many people should be researched.

^ü   Sampling Procedure:- How should the representative respondent should be chosen.

^Ø  Collecting needed information:- Collection of primary data involve field study where questionnaire and interview are conducted.

^Ø  Analyzing the Data:- It involve coding, tabulating and statistical analysis of data. Appropriate statistical tools are used to analyze and interpreted the collected data objective.

^Ø  Report Finding:- Research findings are reported to the relevant client in the form of written report and oral presentation to make effective marketing decision.

Areas of Marketing Research:-

a.  Corporate Research

·         Image of the organization

·         Environmental opportunity and threat

·         Environmental impact and response of marketing

·         Short and Long planning

·         Causes of performance deviation

·         Social responsibility of marketing

b.  Sales Research

·         Market Segmentation

·         Market Share Analysis

·         Sales analysis by product, territory market

·         Sales forecasting

·         Market potential analysis

c.  Competition Research

·         Intensity of Competition

·         Competitors strategy

d.  Product Research

·         New product development and acceptance

·         Product testing

·         Product lifecycle

^Ø   Introduction (Lunch)

^Ø    Development (Growth)

^Ø    Maturity

^Ø    Decline

·         Product loyalty (Brand Loyalty)

·         Packaging, Design and Testing

·         Product Positioning

·         Test Marketing

e.  Price Research

·         Pricing Trend

·         Cost Structure

·         Competition oriented pricing

f.  Place Research

·         Performance and effectiveness of channel

·         Channel structure

·         Channel dynamic and conflict

·         Warehouse location

·         Transportation mode

·         Physical distribution cost

g.  Promotion Research

·         Media Research

·         Advertisement Effectiveness

·         Copy Testing (Design)

·         Impact of Sales Promotion

·         Channel Promotion

h.  Customer Research

·         Motivational

·         Preference

·         Attitudinal

·         Consumption Pattern

·         Needs and Wants

·         Level of Satisfaction                              

 Profile of Customer

Principle of Marketing 4th Semester

Unit 1         Detail on Relationship Marketing

•  Relationship Marketing:-

1.  Concept

Relationship marketing is a facet of customer relationship management (CRM) that focuses on customer loyalty and long-term customer engagement rather than shorter-term goals like customer acquisition and individual sales. The goal of relationship marketing (or customer relationship marketing) is to create strong, even emotional, customer connections to a brand that can lead to ongoing business, free word-of-mouth promotion and information from customers that can generate leads.

Definition

Marketing activities that are amid at developing and managing trusting and long term relationships with large customers. In relationship marketing, customer buying patterns,profile and history of contacts are maintained in a sales database and an account executives is assigned to two or more major customers to fulfill their needs and maintain relationship.

Relevance of Relationship Marketing:-

a. Build the Know, Like and Trust Factor:- To consider the importance of

follow through with your know, like and trust factor, start by thinking about your own shopping habits, as a consumer. These days, online, will you buy from a complete stranger? Will you purchase something from a random website you’ve landed on? Will you hire a consultant, coach or assistant that you’ve never heard of, worked with or seen?

Chances are the answer is a big NO. In today’s age of technology, we have the luxury of getting to know and deciding to trust the person or company behind each purchase. However, as business owners, this means that we MUST go that extra mile to consistently create our know, like and trust factor.

b. Word of Mouth Referrals:- Customers want to feel special and important,

because they don’t often get to feel that way in other areas of the life. This

is key to remember because customers rarely purchase products or services solely based on the products intended result. Deep down, they

are also asking themselves, “What will this do for me, or provide for me?”

The answer isn’t just the product results. The answer includes all of the feelings and desires that come with that product and the results. By building your relationship marketing skills, you fulfill those additional needs. You provide more than just a product or service, you provide an

experience. To create an experience, highlight your customer’s successes,

answer questions promptly (whether through social media, email or phone), and respond to concerns instead of reacting to them.

c. Create Business Opportunities:- When you build your relationship

marketing skills, you also open the door to more business opportunities because a personal connection experience leaves a a long-lasting impression. That fond memory which you created with your customer will cause you to come to their mind more quickly and frequently. Thus, when a friend of your customer asks for a business venture referral, your name will be on the tip of your customer’s tongue.

                   d. Stay On Top Of Your Audience’s Needs: -With a person-to-person

               relationship marketing model you can learn first-hand, and at no cost to you,                          what your audience MOST desires. Active listening and listening between the                         lines are two amazing benefits of person-to-person relationship marketing that                      can easily get lost in the sea of business if you’re not paying attention.

                 

                e. Add Your Own Flare:- In our new economy where JOB’s are unreliable, more and more people are going into business for themselves. In order to compete in this new booming, small business market, you have to STAND OUT. You need to have your own flare. Be unique. By instating relationship marketing, you can quickly and easily develop your unique style. It gives you the space to learn about your audience’s needs, and develop trust with your own techniques. You don’t have to fit yourself to someone else’s business model. You simply have to be yourself and respond confidently to your customers. Business has changed since social media has arrived on the scene. Businesses have to change their focus and concentrate on building relationships with people in order to empower their brand and build lasting relationships that will result in long term profits.

Practices

a.     Funnel passion:- Accept that great ideas can come from anywhere either from employees within the company or from customers and fans outside the company.

b.     Make marketing a conversation -- and don't take yourself too seriously. In other words, skip the hard sell -- or any sell -- when using social media tools to interact with your community

c.      Make your product your marketing. Look constantly for ways to make your product or service interesting enough for people to talk about to others

d.     Empower your customer -- usually the benefits outweigh the risks. we include our community in virtually all aspects of our business". They submit the designs, they vote on them, they critique them, and they buy the products. As a result, they have a vested interest and a sense of ownership in what the company does.

e.     Act human it's about treating your customers as you'd want to be treated. In keeping with that, we let folks at thread less speak to customers in a voice that is truly theirs, but also represents the company."