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Role of Marketing Information System in the Enhancement of Sales

Role of Marketing Information System in the Enhancement of Sales - WebCreatify

In the present business conscious world, practically all industries and organizations face an ever-changing and highly competitive environment. So as to meet or suppress their customer’s desires, the business unit of almost all organizations has to use the information system as an effective instrument of enhancing its working procedure. The function is responsible for identifying its customer’s needs, wants, and desires and passing all the information to the design department so that all the required specifications meet the customer’s wants and desires. The various other functional units within the organization are also involved. 

Moreover, companies and organizations today are facing a rapidly-changing marketing environment with greater competition. This, in turn, may call for the systematic organization of a large amount of data to support the decision-making process. 

As a result, the Marketing Information System(MKIS) based on Information Technology has become a major platform for accurate decision making in most of the organizations these days. 

Marketing Information System.


fig.no.1.Marketing information system(studiousguy.com)

Definition

A Market Information System is nothing but a Management Information System (MIS) that is designed to support marketing decisions. “Marketing Information System implies the systematic collection, analysis, interpretation, storage, and dissemination of the market information, from both the internal and external sources to the marketers on a daily, continuous basis.” says The Business Jargon. 

Philip Kotler gives an alternative definition, such as: “A marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute the needed, timely, and accurate information to marketing decision-makers.”

Components

The Marketing Information System has four basic components. They are : 

  • The Internal Reporting System. 
  • The Marketing Research System. 
  • The Marketing Intelligence System. 
  • The Marketing Decision Support System. 


fig.no.2.Marketing information system(medium.com)

The description of this model of an MIS starts with an outline of every of its four main constituent parts: the internal reporting systems, market research system, marketing intelligence system, and marketing decision support system. It is recommended that whilst the MIS varies in its degree of sophistication - with many, within the industrialized countries being computerized and few in the developing countries being so - a totally fledged MIS should have these components, the methods (and technologies) of collection, storing, retrieving and processing data notwithstanding. 

Marketing Information System for the enhancement of sales.

As explained above, the Marketing Information System is a useful tool for controlling and processing the day-to-day business activities. Today’s marketing structure is so dynamic that it is absolutely important for all company managers to undergo necessary changes in their businesses to cope with the pace of the rapidly-changing business environment. 

As a result of the dynamicity, most companies today face a lot of technical as well as business-related problems. However, the biggest problem and nightmare for most of the company managers, are the declining level of sales. 

Thus, for coping up with such a situation, researchers have come up with the idea of the use of the Marketing Information System and the roles that it could play in the enhancement of sales. Marion Harper has rightly asserted: “To manage a business well is to manage its future, and to manage the future well is to manage the information.”


fig.no.3.Manage the information(marketinginformation.com)

A company needs ideas and information on a regular basis to be updated on all the business-related information and also to be aware of the marketing developments that keep taking place in the business world.

In order to raise the sales of a company, it is necessary to learn about:

  • the changing needs of the customers
  • the new competitors’ initiatives
  • the changing distribution practices, 
  • recent trends in promotion practices, etc., 

A manager requires a permanent arrangement to get all the above-needed information on a regular basis. Thus, the Marketing Information System is one such platform that helps companies to meet all the required information with a very short amount of time. It also gives very accurate and up to the point results which helps the companies to enhance their sales. 

CASE STUDY

Let us now understand the role of MKIS in enhancing sales through a case study on the Ideal Flour Mills Ltd. Kaduna. The Ideal Flour Mills Ltd., situated in Kaduna, Nigeria, is going through a rough phase as there is a heavy decline in its sales percentage. “Paramount problem as regards to the decline in the level of sales in the Ideal Flour Mills Ltd., as well as most companies in Nigeria is due to insufficient marketing information system. This situation led a researcher to undertake research work to understand the way of improving the quality of marketing information system, and to understand the roles that would be played by the marketing information system in enhancing the sales ratio of the Ideal Flour Mills Ltd, Kaduna. The matter to be examined here is:

How sales could be maintained with the MKIS.

  • “Marketing Information System helps the marketing managers to assess their information needs and also develop the needed information from internal company records, marketing intelligence activities, and marketing research process.
  • The Marketing Information System distributes information to managers in the right form and at the right time to help them in marketing planning, implementation, and control.
  • By accessing information needs, a good marketing information system balances the information managers would like to have against what they really need and what is feasible to offer.” 

Therefore, due to all the above-mentioned points, Marketing Information System as related to the Ideal Flour Mills Ltd, Kaduna is intended to improve the general level of sales in the company and other existing companies within the country. 

Conclusion

Marketing Information Systems, in one way or the other, prevail in most of the organizational platforms. What matters more, however, is that the existing information system for business functions are used in a rightful manner so as to fulfill the organization’s goals and needs. This in turn will automatically lead to the enhancement of sales in that company. 


Rishika Choudhary

Author

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