Marketing Information Management - Definition & Importance
What is Marketing Information Management?
Marketing information management is managing the database or data of customers. Marketing information focuses on providing better information & not too much information. MIS or marketing information systems are useful in managing such volumes of data.
Importance of Marketing Information Management
Companies need information regarding their customers’ needs, competitors and marketing environment. So, marketers need skills, tools and processes for gathering, analyzing and using environment information which support marketing decision-making. This leads to the development of a system, where marketing data is collected, stored, analyzed and distributed to marketers in accordance with their needs. This system is called Marketing Information System (MIS).
With the use of MIS, marketing information management helps companies:
• To organize and analyze the data results
• To monitor the marketplace
• To develop strategies for future marketing activities
A marketing information management MIS tools usually comprises the following components:
• User Interface: designed to be used effectively by managers for decision making
• Application Software: consist of programs and processes that marketers use to collect and analyze data for marketing decisions
• Marketing database
• System support: consist of system managers who monitor the software and hardware components of this information system
Marketing information management for business are done:
• To test product features
• To determine market size and growth potential
• To learn about competitive products
• To determine consumer attitudes and preferences
• To determine how the company is perceived by public
Advantages of Marketing Information Management
The advantages of marketing information system are as follows:
• Helps gauge the potential for new ideas
• Helps keep track of current trends in marketplace
• Provides information about how the products need to be promoted
• Provides information about who would but the products
• Provides information about what products to produce and how to price them
Businesses sometimes pay less attention to “why” and “what” the customers are buying. Thus, they make costly marketing mistakes. Marketing information management prevents these mistakes and helps businesses in increasing their sales and profits.
Hence, this concludes the definition of Marketing Information Management along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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