1. MARKETING INFORMATION
SYSTEM [MKIS] & MARKETING
RESEARCH
UNIT - V

2. MARKETING INFORMATION SYSTEM [MKIS] :
A marketing information system consists of people,
equipment and procedures to gather sort, analyse, evaluate
& distribute needed tiny and accurate information to
marketing decision makers.
The company’s MKIS should represent across between
what managers think & they need , what managers really
need and what is economically feasible.
“ A structural, interacting complex of persons,
machines & procedures designed to generate and orderly
flow of pertinent information, collected from both intra and
extra firm sources, for use as the basis for decision making
in specific responsibility areas of marketing management ”.

3. KINDS / COMPONENTS OF MKIS :
1. Marketing control system {marketing intelligence system}
2. Marketing planning system {internal record system}
3. Marketing research system
4. Marketing decision support system [DSS]

4. THE ORGANISATION OF MARKETING INFORMATION
SYSTEM [MKIS] :
PRODUCTION
SALES
GOODS
DEALERS
GOODS
CUSTOMERS
MANUFACTURERS
PROCESSED
INFORMATION
MARKETING
INFORMATION
SYSTEMS

5. DIFFERENCES B/W MKIS V/S MARKETING RESEARCH :
MKIS :
 It is future oriented
 MKIS is continuous
 MKIS became popular in 1960’s
 MKIS uses computer
 The main objective is to assist decision making
 MKIS is wider scope

6. MARKETING RESEARCH :
 It is post mortem
 Marketing research is not continuous
 Marketing research became popular in 1950’s
 Marketing research may be or may not be.
 To achieve certain objective marketing research is
conducted.
 Marketing research is a part of MKIS.

7. MARKETING RESEARCH :
“ The systematic gathering, recording and analysing of
data about problems relating to the marketing of goods &
services ’’.
Such research may be undertaken by impartial
agencies or by business firms or their agencies for the
solution of their marketing problems and inclusive term
which embraces all research activities carried down in
connection with the management of marketing work.

8. OBJECTIVES OF MARKETING RESEARCH :
 To define probable market for a particular product.
 To find out general market conditions and tendency's
 To assess competitive strengths and policies[SWOT
analysis]
 To indicate the distribution methods best suited to the
product & market
 To assess the probable volume of future sales
 To know customer acceptance [consumer survey]

9. FUNCTIONS OF MARKETING RESEARCH [M.R] :








The production of marketable goods
The distribution of marketable goods
The size, nature & the organization of the sales
The demand creation activities
It ascertains the position of a company in specific industry
It indicates the present & future trends of the industry
It helps in the development & introduction of new products
It offers guidance for improving the current products of the
company
 It helps in assessing & enhancing the effectiveness of
sales management
 It can reduce the risk involved in marketing decisions.

10. ELEMENTS OF MARKETING RESEARCH :
1.
2.
3.
4.
5.
6.
7.
8.
9.
Market research
Sales research
Product research
Packaging research
Advertising research
Business economic research
Export marketing research
Media research
Distribution research

11. ADVANTAGES OF MARKETING RESEARCH :
•
•
•
•
•
It facilitates planned production
To forecast the demand
Acceptance of new products is judged
It helps to remove wasteful expenditure and cost
Marketing research helps to study the effectiveness of
pricing policies, channels of distribution, advertising ,
sales promotion & other activities
• To understand consumer behaviour
• Helpful in improving relations with dealers
• Helpful in overcoming sales resistance

12. LIMITATIONS OF MARKETING RESEARCH :
• Marketing research huge amount of time & money.
• Small business firms cannot afford it.
• It is the study of human behaviour. so., it cannot be 100%
accurate.
• It depends on the quality of research staff.
• Individual views of executives may give bias/
carelessness
• Time lag b/w research study and implementation
• It is very difficult to measure the effectiveness of
marketing research.

13. PROCESS OF MARKETING RESEARCH :
1. Problem formulation
2. Decision on fact
3. Data collection
4. The marketing sample
5. Data evaluation
6. Interpreting the data
7. Report preparation
 Executive report
 Technical report
 Data report
 Popular report
8. Designing questionnaire
9. Interviewing

14. CREATING A RESEARCH DESIGN :
1.
2.
3.
4.
Choosing the approach
Determining the types of data needed
Locating the source of data
Choosing a method of collecting data
SOURCES OF DATA :
1. Internal sources
• Product analysis
• Territorial analysis
• Customer analysis
2. External sources
• Primary sources
• Secondary sources

15. SAMPLING
SAMPLING METHODS :
1. Law of statistical regularity
2. Law of inertia of large numbers
3. Qualities of a good sample
 It must be random
 It must be representative
 It must be proportional
 It must be adequate

16. TYPES OF SAMPLES :
1. Probability or random
 Systematic sampling
 Stratified sampling
 Cluster & area sampling
 Multi stage
 Segmental sampling
2. Non – probability or purposive
 Convenience
 Judgement
 Quota sampling

17. SOURCES OF PRIMARY DATA :
METHODS :
1. Survey method
• Personal interview
• Mail survey
• Telephone
• Questionnaire
2. Experimental method
• Product testing
• Psychological techniques
• Consumer panels

18. SOURCES OF SECONDARY DATA :
1. Government reports.
2. Technical, economic & commercial journals
3. Information gathered by professional organisation and
associations.
4. Published or unpublished thesis.
5. Data collected by universities, colleges & research
organisation.
6. By – products of administration.
7. Data collected by different organisations.

19. MARKETING CONTROLS
I.
ANNUAL PLAN CONTROL : [e.g.: budget]
Annual plan control aims to ensure that the company
achieves the sales, profits and other goals established in its
annual plan. It is a management by objectives.
 It [management] sets monthly or Quarterly goals.
 It monitors its performance in market place.
 It determines the causes of serious performance
deviations.
 It takes corrective action to close the gaps b/w goals &
performance.
This control model applies to all levels of organisation.
Top management sets annual sales & profit goals that
become specific goals for lower levels of management.

20. THE CONTROL PROCESS :
Goal setting
Performance
Measurement
Performance diagnosis
Corrective action
WHAT DO WE WANT TO
ACHIEVE ?
WHAT IS HAPPENING ?
WHY IS IT HAPPENING ?
WHAT SHOULD WE DO
ABOUT IT ?

21. FIVE [5] TOOLS TO CHECK PERFORMANCE OF THE
PLAN :
1. Sales analysis
2. Market share analysis
3. Marketing expense- to – sales
4. Financial analysis
5. Market based score card analysis

22. II. PROFITABILITY CONTROL :
Companies need to measure the profitability of their
products, territories, customer groups, segments, trade
channels and order sizes. This information will help
management to determine whether any products or
marketing activities should be expanded, reduced or
eliminated.
PROFITABILITY ANALYSIS – STEPS :
1.
2.
3.
4.
5.
Identifying functional expenses.
Assessing functional expenses to marketing entities.
Preparing a P&L statement for each marketing entity.
Determining corrective action.
Direct v/s full costing [ABC]

23. III. EFFICIENCY CONTROL :
More efficient ways to manage the sales force,
advertising, sales promotion and distribution in connection
with these marketing entities.
 Sales force efficiency
 Advertising efficiency
 Sales promotion efficiency
 Distribution efficiency

24. IV. STRATEGIC CONTROL :
From time to time, companies need to undertake a
critical review of overall marketing goals and effectiveness.
Each company should periodically reassess its strategic
approach to the market place with marketing effectiveness
reviews and marketing audits.
Companies can also perform marketing excellence
reviews and ethical & social responsibility reviews.

25. IMPORTANT Q’S :
1. Explain the concept of MKIS ? What are the
components of a marketing information system ? [pg
398 in Karunakaran]
2. What is marketing research ? Explain the process
involved in marketing research ? [pg 89 in Philip Kotler]
3. Explain various marketing controls ?
4. Analyse the market research in India giving suitable
examples ?