Ch 2: The Marketing Information System (MIS) Flashcards
marketing information system
computer system that gathers data continually to monitor consumer and market behavior so that people throughout the org have the information they need to make good business decisions
MIS based approach
- focus on common types of decisions
- wide array of data relevant to firm is collected on a regular basis
- runs continuously and can be used be managers regularly
- high upfront cost and ongoing maintenance cost
project based approach
- focus on specific problem/situation
- data is selected specifically to address the problem/situation
- projects have clear beginning and end
- per project or HR cost
3 components of MIS
data, models, interface
the data component
includes data relevant to the firm and the processes for capturing and storing it
common data modules
customer information, general economic and demographic information, information on competitors, industry information and market trends
customer information
who buys/uses the product, which configurations are most popular, where the product is purchased/quantities, what factors affect the purchase decision, what influence ads/promotions have on purchase decisions
economic and demographic information
- domestic and international economic activity and trends (interest rates, unemployment, GDP)
- population trends (age, income, education, household, race)
information on competitors
who are they, what is their market share, what markets do they serve, what are their unique capabilities
industry information and market trends
industry margins and costs, R&D investments, capital expenditures, technological developments, raw materials
the models component
a simplified description, especially a mathematical one, of a system or process that enables one to make predictions
- enable what if and sensitivity analyses by providing forecasts on inputs and assumptions
the interface component
enables managers to interact with the data by generating reports, producing charts, and conducting analyses without having to go through IT
dialog systems
natural language queries and commands
graphical systems
menus and point and click interfaces
dashboards
display current KPIs and trends
big data
defined by the 3 V’s - volume, velocity, variety
volume
quantity of data
velocity
rate at which new data is added
variety
number of types of data (text, photos, videos)
data mining
process of extracting and discovering patterns in large data sets using machine learning, statistics and database systems
uses of data mining
in marketing for segmentation, product recommendations and response models
