Overview
This lecture explains the components and functions of marketing information systems (MIS), distinguishes between market intelligence and marketing research, outlines their limitations and ethical boundaries, and discusses when to use each method.
Components of a Marketing Information System (MIS)
- MIS gathers and manages information to help marketing professionals make better decisions.
- Key components include: internal data/reporting, ongoing market intelligence, marketing analytics software, and a marketing research system.
- Internally generated data includes sales records, customer complaints, website clickstream data, and inventory levels.
- Intranets allow employees to access internal business information securely.
- Data mining is used to extract insights from large internal databases; data warehousing combines data for easier analysis.
- Dashboards visually display important data trends for quick decision-making.
Analytics Software
- Analytics software helps managers analyze data and answer "what if" scenarios.
- Software can combine sales, demographic, and web browsing data for targeted marketing decisions.
- Example: Cabela’s uses analytics to refine catalog distribution and understand customer preferences.
Market Intelligence
- Market intelligence involves collecting information about external business environments, trends, and competitors.
- Methods include monitoring competitor websites, using search engines, reading industry publications, attending trade shows, and subscribing to news services.
- Salespeople, suppliers, industry experts, and customers also provide valuable intelligence.
- Sentiment analysis tools evaluate online discussions to reveal market attitudes.
Limitations and Ethics of Market Intelligence
- Intelligence can cross ethical/legal lines, such as in cases of industrial espionage (illegal spying).
- Ethical market intelligence follows laws and professional codes, avoids deception, and respects confidentiality.
Marketing Research: Uses and Limitations
- Marketing research is used when specific questions cannot be answered by existing data or intelligence.
- It is project-based, time-consuming, and costly, so benefits must outweigh costs.
- Research should not be conducted for vague reasons (e.g., "nice to know") or to justify past decisions.
- Marketing research is not always correct and can lead to missed opportunities or mistakes.
Key Terms & Definitions
- Marketing Information System (MIS) — A structure for collecting, managing, and using information to support marketing decisions.
- Clickstream Data — Data tracking visitors’ activities on a website.
- Intranet — A private network within an organization for secure information sharing.
- Data Mining — Extracting useful information or patterns from large data sets.
- Analytics Software — Software for analyzing and modeling business data to support decisions.
- Market Intelligence — Ongoing process of gathering information about the business environment, competitors, and trends.
- Sentiment Analysis — Technique that assesses public opinion from online content like social media.
- Industrial Espionage — Illegal or unethical collection of confidential business information.
Action Items / Next Steps
- Review the components and functions of an MIS.
- Reflect on ethical practices in collecting market intelligence.
- Prepare to discuss when to use marketing research versus market intelligence.