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Marketing Information Management

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Marketing Information Management

One of the top priorities of a business is to create value for its customers, which is possible when companies have consumer insights gained through marketing information. This is where marketing information management comes into play. Managing information means assessing data about consumer preferences and creating value in return. Let’s delve deeper into the topic and understand how marketing information can be managed effectively.

Marketing Information Management Definition

The marketplace has enormous competition these days. Big companies are vying for more market share. To beat the competition, it is imperative to have a competitive advantage over the competitors. The big question is: how can a company achieve a competitive advantage?

The answer is to understand customer needs and offer them a product or service that would satisfy those needs. It might sound simple, but very difficult to pull off as consumer behavior is not consistent, and sometimes, they cannot even articulate their buying choices.

For marketers, it is essential to reduce the gap between the value expected and the value offered to ensure maximum consumer satisfaction. Marketers must gather information on customer preferences and assess them to gain valuable insights. These insights eventually help them to create value for customers and build strong customer relationships.

Marketing information management ensures businesses have the right information about the market and customers through gathering and analyzing market data.

Role of Information Technology in Marketing Management

The main role of information technology in marketing management is to help gather data about customers. For marketers, the information is just a click away, and they can access data through many sources. Even consumers are generating the data through smartphone apps, online browsing, and geolocation data. It has reached a point where marketers must deal with the issue of information clutter. The concept of big data is gaining widespread recognition, and the job of managing data effectively is the need of the hour.

Big data describes vast data sets (structured and unstructured) generated by multiple sources that can be stored, analyzed, and used through sophisticated software.

Big data presents a great opportunity and a tough challenge simultaneously. Marketers need to break the information clutter and gain valuable insights from the enormous data sets. Marketers, who can effectively extract better information, can undoubtedly help their companies to gain a competitive advantage.

Marketing Information Management System

It is a fact that the availability of information has become much easier because of information technology. However, the actual task is to extract substantive information and use it effectively.

Many companies have recognized the importance of managing marketing information, so they have started allocating vast budgets. Some top companies even have insights teams whose job is to assist decision-makers in carrying out the necessary actions based on their insights.

Companies must design marketing information systems to use these insights to their benefit to ensure that marketing decision-makers have the correct information at the right time. It is an essential process because it would help them in value creation, engagement, and building a loyal customer base.

A marketing information system refers to the employees and operations committed to assessing the need for information, developing it, and helping the decision-makers to utilize it to give valuable market and customer insights.

Difference between Marketing Information System and Management Information System

A marketing information system functions like a management information system. The only difference is that it caters to the specific marketing needs of a company. It is essential to understand how this system works and what operations are required to use it effectively.

Marketing Information Management Examples

Two great examples of using marketing information management are Amazon and Netflix.

Amazon employs big data to collect information on its users. It tracks the buying pattern and choices of its users to segment and targets them based on their buying choices and browsing history through predictive analytics.

Predictive analytics predicts future performance levels using statistics and modeling techniques based on current and historical data.

Marketing information management Amazon example StudySmarterFig. 1 - Amazon Alexa

Netflix uses analytics on the customer database to gain valuable insights. It helps them to give recommendations to the subscribers based on their searches on the platform. Netflix strives to provide each subscriber with a tailored experience.

Marketing information management Netflix example StudySmarterFig. 2 - Netflix Example

The Process of Marketing Information Management

The process starts with information need assessment and ends with effective information utilization.

  • Marketing information system interacts with the users – marketing managers to assess information needs.
  • In the next step, it interacts with the marketing environment to develop the information through internal databases, marketing intelligence, and marketing research.

  • Once the information is developed, users can use it to analyze the data and create valuable customer insights.

  • The final stage is about making marketing decisions to increase customer engagement and build strong relationships with them.

Marketing Information Management: Assessing information need

In the technological age and with concepts such as big data, getting the information is not a tough ask for marketers. The key is to assess the need for information, i.e., finding what kind of information they must look for. Too little and too much information can both be destructive. For MIS users, it is essential to find the perfect balance where they have the necessary information.

Marketing Information Management: Obtaining the information

After the information needs assessment, the process starts, and internal databases can be used to obtain information. Companies collect information about the consumer and the market through their internal network. The data sources are social media, in-store sales, and online transactions. It is also a cheaper and more accessible way to collect information.

Competitive marketing intelligence is another way to obtain information. This is a way of collecting and analyzing publicly available data. It covers and interprets information about the consumers, competitors, and the marketplace, which helps to improve marketing decision-making. Consumer observation and online research are some of the techniques used in marketing intelligence.

Marketing research collects, analyses, and reports data to improve a specific marketing situation.

From consumer buying behavior to consumer motivation, market research can help ascertain many factors regarding consumer preferences. It could give a comprehensive view of the situation in the market to help marketers with decision-making. Primary and secondary data are used in marketing research. Surveys, focus group interviews, and sampling is some popular research methods.

Check out our explanation of Market research to learn more!

Marketing Information Management: Information Analysis and Utilization

After information need assessment and development comes information analysis and utilization. Marketers must apply analytics and analytical models to gain customer and market insights. This step would give them clarity and assistance in making important decisions.

One of the ways to break the information clutter and analyze the information is customer relationship management (CRM). Detailed information about customers and the touchpoints can be managed through it.

CRM software is sophisticated and could be used as an analytical tool to integrate customer and marketplace information from all sources.

Marketing analytics is another analytical tool through which marketers extract important patterns in big data to gain customer and marketplace insights. After analyzing the information, marketers need to use the information to build strong customer relationships and improve marketing performance. It is imperative that after using analytical tools, marketers have actionable insights at the right time.

Check out our explanation of Marketing analytics to learn more.

Marketing Information Management - Key takeaways

  • Marketing has become hugely data-driven now, and one of the reasons is the extensive use of information technology.
  • Marketers need to break the information clutter and gain valuable insights from the enormous data sets.
  • Marketing information systems could ensure that marketing decision-makers have the correct information at the right time.
  • Information need assessment, obtaining the information, and information analysis and utilization are the steps in the process of marketing an information system.

Frequently Asked Questions about Marketing Information Management

The purpose of marketing information management is to help businesses to have the right information about the market and the customers through information gathering and analysing of the market data.  

A marketing information system refers to the employees and operations committed to assessing the need for information, developing it, and helping the decision-makers to utilise it to give valuable market and customer insights. 

Amazon showing recommended items to customers based on their buying patterns is an example of marketing information management. 

Marketing information management is important because it provides the right information about the customers. 

The types of marketing information management are:
internal data system, competitive intelligence system, and marketing research system.

Final Marketing Information Management Quiz

Question

What is "big data"?

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Answer

Big data describes huge data sets (structured and unstructured) generated by multiple sources that can be stored, analyzed, and used through sophisticated software. 

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What is information clutter? 

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Too much information from multiple sources

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Define marketing information system. 

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Answer

A marketing information system refers to the employees and operations committed to assessing the need for information, developing it, and helping the decision-makers to utilize it to give the valuable market and customer insights. 

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Question

What is the difference between marketing information system and management information system? 

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Answer

A marketing information system functions like a management information system, the only difference is that it caters to the specific needs of marketing in a company.

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What are the steps in the process of marketing information system? 

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  • Assessing information need
  • Obtaining the information
  • Information analysis and utilization
  • Decision making

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Question

What is the purpose of information need assessment? 

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Answer

To identify what kind of information is needed and why it is needed. 

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What are the ways of obtaining the information? 

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Internal databases

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What purpose does competitive marketing intelligence serve? 

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Publicly available information can be obtained through it. It covers information about consumers, competitors, and the marketplace. 

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What is the purpose of conducting market research? 

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To collect, analyse, and report data that is used to improve a specific marketing situation.

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Question

_________and _________ data are used in marketing research.


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Primary and Secondary. 

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Name the tool used for information analysis. 

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Marketing analytics 

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Why marketing analytics is used in marketing information management?

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To extract important patterns in big data to gain customer and marketplace insights.

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What is CRM and why is it used? 

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Answer

CRM is customer relationship management and detailed information about customers and the touchpoints can be managed through it 

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What are the elements in a marketing environment? 

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  • Target markets
  • Marketing channels 
  • Competitors 
  • Publics 
  • Macro-environment forces

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Can consumers generate data themselves for marketers?

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Consumers are generating the data through smartphone apps, online browsing, and geolocation data.

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_________ is a form of market research.

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Marketing analytics

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Define marketing analytics.

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Marketing analytics, simply put, is the practice of using models and metrics to provide marketers with helpful insight to facilitate decision-making.

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What are the four types of marketing analytics?

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Descriptive, predictive, prescriptive, and diagnostic.

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______ analytics are used to understand what has already happened (looking at the past).

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Descriptive

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______ analytics guide what an organisation should do in a particular situation.

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Prescriptive

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_____ analytics are used to understand why something has happened.

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Diagnostic

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___________ are specific metrics related to the organisation's goals. 


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Key performance indicators (KPIs)

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Name two of the purposes of marketing analytics.

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Any of: 


  • Track the progression of marketing campaigns, 

  • Improve marketing performance, 

  • Monitor the marketing process, 

  • Detect and understand problems, 

  • Evaluate whether marketing goals have been accomplished.

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Big Data is analysed to discover patterns, trends, and insights about market and ________.


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consumer behaviour

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What are the 7Vs of Big Data?

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The 7Vs of Big Data are volume, variety, velocity, veracity, variability, value, and visualisation.

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One of the benefits of using text mining is its ability to interpret _______ (i.e. text data) using computer-assisted technology and transform it into actionable marketing insights. 


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unstructured data

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The two analytical approaches to segmentation include _____ and _____ analysis.


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factor, cluster

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What are the two types of predictive models used for analysis?

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Estimation and classification models.

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__________ includes analysing digital data to understand how customers behave online and how they experience digital channels (e.g. website, social media, etc.).


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Digital marketing analytics

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_______ shows the number of people leaving the landing page without performing any other action.

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Bounce rate

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________  evaluate whether the marketing programme actually leads to the desired outcome

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Conversion metrics

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________ evaluate whether the marketing activities are profitable or not 

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Efficiency metrics

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__________ studies the structure, characteristics, and relationships between individuals in social systems.


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Social network analysis (SNA)

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The moral principles and values that the company has to maintain during marketing communications is called _________.

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Marketing ethics

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Code of Ethics is always the same for every company and industry. 

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True

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Sharing customer information without consent is not unethical. 

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True

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What is NOT an ethical marketing practice?

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Reveal all details of the product to customers. 

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Major ethical issues in market search are __________ and __________.


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invasion of privacy; 

stereotypes

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Give an example of stereotyping in marketing.

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Answer

Washing powder advertisement portrays women as housewives

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____________ is the case where companies make certain claims about a product or service that they can't live up to. 

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Deceptive advertising

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Website pop-ups such as "No, I don't want to save time" and "I'm smart already and don't need this resource" are a form _________.

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Forceful selling

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The only way to win customer loyalty is by being __________ and delivering the exact products and services as advertised. 

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authentic

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Human rights compliance in ethical marketing means that marketing campaigns _______________

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should not offend certain population groups by criticising or stereotyping them.

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Marketers should not disclose customer information without consent. This refers to what characteristics of ethical marketing?

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Customer data protection

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All unethical marketing is outlawed. 

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True

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Ethical marketing does not hurt, confuse, or mislead consumers. 

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True

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What is NOT an advantage of primary data collection?

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Costly

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What are the benefits of primary data collection?

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Up-to-date information

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Who conducts primary market research? 

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The company itself or an outsourced party

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Primary data in market research is always reliable. 

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True

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