INCREDIBLE SOULS

Group members:

• Leader 11338• 11321• 11315• 11353• 11316

MARKETING INFORMATION SYSTEM

GLOSSARY

Customer relationship management (CRM). Cyber marketing. Data mart. Data mining. Data warehouse. Enterprise resource planning (ERP). Geographical information systems (GIS). Marketing automation. Marketing decision support system (MDSS). Marketing information system (MkIS). On-line analytical processing (OLAP). Supply chain management (SCM).

INTRODUCTION

MKIS is essential for helping organizations operate in a global economy. Businesses today use information systems to achieve six major objectives: operational excellence; new products, services, and business models; customer/supplier intimacy; improved decision making; competitive advantage; and day-to-day survival. Where as in Sales and marketing systems it helps the firm identify customers for the firm’s products or services, development of products and services to meet customers needs, promote the products and services, sell the products and services. Organizations seek to adopt “e-business” methodologies in the search for competitive advantage.

MARKETINGINFORMATION SYSTEM (MKIS)

“MkIS is a computerized system that

is designed to provide an organized flow of information to

enable and support the marketing activities of an

organization”.

THE STRATEGIC ROLE OF THEMARKETING INFORMATION SYSTEMS

Marketing is a “strategic” function which enable organizations to identify and adapt to changes in the market environment. MkIS provide the IT backbone for the marketing organization’s strategic operations. In a broader sense, the MkIS creates an organized and timely flow of information required by marketing decision makers. It involves the equipment, software, databases, and also the procedures, methodologies to meet its organizational objectives.

THE ROLE OF THE INTERNET

Internet, especially the browser based WWW, has played vital role in revolution in MkIS. The term “cyber marketing” is often used to describe the Internet’s convergence of computers. Internet marketing is characterized by interactivity, graphical user interfaces, multimedia content, and one-to-one connectivity.Marketers will need to understand all the various ways that customers are touching the business through existing interfaces and e-commerce.

BENEFITS OF THE MARKETINGINFORMATION SYSTEM

MkIS affects marketing’s interfaces with customers, suppliers and other partners.

Market Monitoring, Strategy Development. Strategy Implementation. Functional integration.

Functional Components

MkIS consists of four major components:

User interfaces Applications software. Databases. Systems support. 

User interfaces

Marketing Databases

Applications software

System support

Functional Components

MARKETING DECISION SUPPORT SYSTEM (MDSS):

A set of core applications in the MkIS thatprovides computer-based tools, models, andtechniques to support the marketing decision

making process

MARKETING DECISION SUPPORT SYSTEM (MDSS):

Provides computer-based tools, models, and techniques to support the marketing manager’s decision process. Optimized for queries of historical data. Data typically are derived from both internal and external market sources. Features inquiry and report generation functions where the manager can access marketing data, analyze it statistically, and use the results to determine an optimal course of action.

A. MARKETING DECISIONSSUPPORT SYSTEM FUNCTIONS

MDSS tools include simple spreadsheets such as Excel, SPSS, on-line analytical processing (OLAP) tools, data mining applications, and neural networks.The MDSS provides the user with the ability to explore multiple options. Typical MDSS functions include models and tools for:

•Sensitivity analysis•What-if analysis•Goal setting•Exception reporting•Pareto analysis•Forecasting models•Simulation models•Scorecards and dashboards

B. MDSS ANALYSESThe following list presents some of the most common types of issues targeted by MDSS analyses:

Market segment analysis Market share analysis Competitor analysis Pricing analysis Cost analysis Sales analysis Sales forecasting Sales force productivity Advertising analysis Distribution. Analyzes Simulation. Customer satisfaction

DATA WAREHOUSE

Electronic storage that is arepository where data from internal and

external sources are collected, organized andstored for future analysis.

Data warehouses can provide narrow or broad strategic views of key marketing activities for the purpose of generating higher customer value and business returns. It commonly support customer relationship management, product development, and customer service delivery.

Process Data warehouse architectures are based on the following three processes.

•Data collection•Data management•Data access

Data Warehouse

DATA MARTS

A scaled down version of a datawarehouse that usually holds a subset of the

entire data set in order to provide more focusedand faster access to specialized data.

It is usually designed for a smaller number of users. It provide fast, specialized access and applications. It may also include specialized data sets that can be analyzed with statistical or data mining tools.

DATA MINING:

Computer-based exploration andanalysis of large quantities of data in order todiscover meaningful patterns and rules for the

purpose of improving marketing, sales andcustomer service operations.

THE DATA MINING PROCESS:

The first step in the process is to collect data on what the customer does. Generate similar data in addition to that on products and services purchased, catalogue referenced, special offers, credit card number, order size, and time since last purchase. Further transactions are generated by the order entry, billing, and shipping systems.

THE DATA MINING TASK:

Classification. Estimation. Affinity grouping. Description. Clustering. Prediction.

THE DATA MINING TECHNIQUES:

Market basket analysis Cluster analysis Decision trees Query tools Neural networks

ON-LINE ANALYTICAL PROSING (OLAP):

A familyof analysis and report generating tools used to

access large databases. OLAP enablespartially aggregated data or full reports to be

stored for fast, convenient access.

GEOGRAPHICAL INFORMATION SYSTEM:

Software that enables the geographic mappingof information such as the locations of customers,

competitors, suppliers, salesprospects, suppliers and partners. GIS can be

used for site selection, trade-area analysis,environmental analysis, sales territory design

and the targeting of marketingcommunications.

GEOGRAPHICAL INFO SYSTEM MKT APPLICATIONS:

Customer location Geographical market information Market activity location Business location Marketing resource location

CUSTOMER MANAGEMENT SYSTEM

Companies need a method of viewing all the customer and marketing related information in an integrated way.

The major applications are: Sales force automation(SFA) Customer relationship management(CRM)

SALES FORCE AUTOMATION(SFA)

SFA is a customer management tool that is one of the fastest growing elements of the MkIS. SFA applications are often integrated with the CRM system. SFA involves the application of IT to the sales function or, more appropriately, to the activities leading to a sale. These activities include acquiring sales leads, managing the sales opportunity, closing the sale and managing the customer relationship. The goals of SFA are to increase the effectiveness of the sales organization, improve its efficiency and to create superior value for the Customer SFA can improve sales efficiency by reducing sales cycle time, by managing workflow, and tracking the current status of critical activities related to the sale.

THE SALES PROCESS

There are following steps.

Lead generation Sales process management

Verification of opportunity Sales calls Opportunity management Closing the sale

Account management

SALES FORCE AUTOMATION TOOLS

It may be categorized as: Document management tools Personal management tools Process management tools

CUSTOMER RELATION MANAGEMENT(CRM)

Software applications manage the interactionof customers with an organization. They are

used to increase the return on marketing effortsby enabling the understanding of the complete

history of a firm’s interactions with itscustomers. CRM systems are able to targetpromotions to likely buyers, facilitate sales

efforts, and deliver customer service.

CUSTOMER RELATION MGT DESIGN PRINCIPLES

CRM system should offer the customer multiple channels for communications.

Each CRM interaction should deliver value of the customer. CRM system integrates the customer throughout the firm’s

value chain. The CRM system should capture knowledge about the

customer and the customer’s relationship with the company.

CUSTOMER RELATIONSHIP MGT FUNCTIONS

E-commerce support. Sales force automations. Telesales and call center automation. Direct mail and catalog sales. Web sales and personalization. Mobile support through laptops and hand-held devices. Trainings.

PRIVACY AND THE MARKETING INFORMATION SYSTEM

A marketer may respect a customer’s privacy and only contact them after gaining permission, but they may have an insecure system that allows hackers to access credit card transaction data. Alternatively, a marketer may respect privacy rights and have a very secure system, but inadvertently releases a patient’s health care record to the news media.

Following are the points of the privacy and the marketing information system.

1. Tracking internet users2. Developing a privacy policy.

TRACKING INTERNET USERS It is true that nobody on the internet is unknown. Every network

connection has an address and marketers are able to develop customer profiles and track their behavior on the internet. They will be able to track the location of the customer too in the future.

The following infrastructure elements are essential to the information model of the internet.

1. Advertising network.2. Cookies.3. IP address.4. Online profiling.5. Personal information.6. Reference.7. Registration.

DEVELOPING A PRIVACY POLICY

Web marketers are at the forefront of the consumer privacy movement. Advertising network firms, such as Double-click, were caught on the wrong side of this issue and have suffered greatly in terms of company image and market capitalization.

The major actions marketers are taking include..1. Disclosure of privacy practices. 2. Ask permission.3. Allow access.4. Establish industry-wide privacy rules.

CONCLUSION

The rapid use of Internet-based technologies and the development of e-business and e-commerce applications are having a revolutionary impact on the marketing discipline.MkIS, are being transformed as these new technologies areenabling the integration of marketing, sales andcustomer service activities. Future implementations of MkIS will increasingly change market opportunities

Thank You