MARKETING INFORMATION SYSTEM

MARKETING INFORMATION SYSTEM

ehavior, marketing management

Definition of Marketing Information System ( MIS ) 
Marketing Information system is to collect, sort, analyze, evaluate the information relating to marketing. After this, information is distributed to marketing decisions makers. Internal company records and marketing research are the main sources of marketing information . 

Need and Importance and Advantages of Marketing Information System or System to Handle Marketing Information:

1. For making marketing planning

Marketing information system is very useful for making marketing planning. With MIS, we get useful information for marketing short term and long term plans. Suppose, we are new banking company for providing loans to students. But, if our MIS gives us the correct information about how many companies are already providing this facilities, then we can make good strategic planning according to this. 

2. Helpful to marketing control

With MIS, we can control marketing risk and our decision becomes effective.

3. Helpful to convert raw data into useful marketing information

MIS makes perfect system in which information providers can easily convert raw data into useful marketing information. 

4. Integration

Marketing information system creates integration between all departments.

5. Improve the data capture process

MIS has a perfect system in which there are many steps to collect and convert into useful information. So, it improves the data capture process. 

6. Helpful in transfer of Information 

MIS makes way easy for transferring the information to those who need it. 

Types of Marketing Information System

( I )  Classification which is based on the purpose of information. 

( II ) Classification which is based subject matter of the information 

Steps of Marketing Information System (MIS)
Ist Step

Defining the information need 
2nd Step 

Classification of information
3rd Step

Evaluation the cost of collecting the information
4th Step
 Identifying the source of information. 

                  

What is  consumer behavior? What are main factors affecting consumer behavior and what are the stages or steps of buying decision process? 

Definition of Consumer Behavior

Consumer behavior is the study of all factors which affect consumer's buying decision. It is the technique to analyze the psychology of consumer. It is very helpful for selling theproducts to all consumers and satisfy them. In simple words, with the study of consumer behavior, you can know:

a) When will our consumer buy the goods? - To know the correct time

b) Why will he buy the goods?  - Know the need of consumer

c) How will he buy the goods?  - Process of buying

d) Where will he buy the goods? - Place

Factor affecting consumer's behavior

1. Cultural factors

Culture affects consumer behavior very deeply. Following are the main components of cultural factors.

i) Nationality

Consumer buying decision is affected by nationality of consumer. Need of Indian consumer is different from need of USA consumers

ii) Religion

There are many religion In India. We can not do marketing of drinks for Hindu religious persons, because their behavior is affected by their religion. There religion teach them not to drink alcohols.

2. Social Factors

Consumer's behavior is also affected with many social factor whose list, we can make in following way

a) Reference group

friends, relatives, neighbours, co-workers and classmates

b) Family

father, mother, sister and brother

c) Role and status

peon,  clerk and manager

3. Personal Factors

Age of person, his stage in life cycle and his personal occupation also effect his behavior. Children age is age of fun and they can demand education and fun products. After marriage, young couple can demand house for living but at the old age, you can demand health products.

4. Psychological factors

Following are the psychological factors which affects consumer's behavior.

a) motivation b) love c) morality d) security of body e) security of employment

Steps Of Buying Decision Process

1st Step 

To Identify the need of Product 

This is the first step of buying decision process in which marketer estimates consumer's need of products. Consumer can buy the product for satisfying his basic and other needs. 

2nd Step

Collection of Information 

After this, consumer will search for buying best product, he can search on Internet or can take help of friends, neighbours and newspapers for find quality product. 

3rd Step

Evaluation of Alternatives

After this, buyer will evaluate all alternatives from where he can buy the product. He will choose the best alternative for buying the product.

4th Step

Purchase decision

In this step, buyer buys the product by physically going to market or by giving the order online. 

5th Step

Post Purchase Behavior

After purchasing, buyer uses the product and shows his behavior by following ways

a) He is satisfied from the product

c) He is not satisfied from product

MARKET SEGMENTATION

Market segmentation is a technique in which companies divide their large hetrogeneous market  into small homogeneous groups. This small division is very helpful to reach the specific consumer and providing his best product according to his need. There are large number of buyers in the market and market has been made big. So, it is very necessary to segment or divide into small parts according to the needs, wants, location of consumers. 

Major basis or Ways or Approaches for segmenting consumer and business market

[ A] Segmenting Consumer Market 

1. Geographic Segmentation

If a company divides his business market according to the geographical location, then it will be geographic segmentation. Segmentation is done on the basis of nations, regions, states countries, cities and villages.

2. Demographic Segmentation

In this segmentation, company divide the market into small parts on the basis of age, gender, family size and income. 

For example, we can divide market according to age of consumers

We can develop products for young - Segment A 

We can also develop products for old - Segment B

3.Gender Segmentation

In this division company divides market according to male and female need. This division can be seen in clothing business. 

4. Income Segmentation

This segmentation can be used for selling financial products and automobile industry.

Suppose a company makes cars. Then its price will be divided according to the income of consumers

a) Car for high income class
b) Car for middle income class

5. Psychological Segmentation

This division is done according to life style and personality of consumer. You can see different makeup and fashion products in the market which are affected with the psychology of consumers. 

6. Behavioral Segmentation

This division is done according to a) knowledge of consumers b) attitude of consumers c) response of consumers

For example

i) products for first time users

ii) products for regular users

[B] Segmenting the Business Market 

Business market can not divide only above basis but we can divide it on the basis of Zip codes, level of population and IP address of computer also. 

[C] Segmenting of International Market

For segmenting our international market, we have to study international economy  and political environment of each country. After this, we can make and fix the target to sell specific product for specific country according to the need of consumer of that country. It is not necessary that same product will be sold in two or more country. Company should watch cultural factors of different country also.

MARKET SEGMENTATION

Market segmentation is a technique in which companies divide their large hetrogeneous market  into small homogenious groups. This small division is very helpful to reach the specific consumer and providing his best product according to his need. There are large number of buyers in the market and market has been made big. So, it is very necessary to segment or divide into small parts according to the needs, wants, location of consumers. 

Major basis or Ways or Approaches for segmenting consumer and business market

[ A] Segmenting Consumer Market 

1. Geographic Segmentation

If a company divides his business market according to the geographical location, then it will be geographic segmentation. Segmentation is done on the basis of nations, regions, states countries, cities and villages.

2. Demographic Segmentation

In this segmentation, company divide the market into small parts on the basis of age, gender, family size and income. 

For example, we can divide market according to age of consumers

We can develop products for young - Segment A 

We can also develop products for old - Segment B

3.Gender Segmentation

In this division company divides market according to male and female need. This division can be seen in clothing business. 

4. Income Segmentation

This segmentation can be used for selling financial products and automobile industry.

Suppose a company makes cars. Then its price will be divided according to the income of consumers

a) Car for high income class
b) Car for middle income class

5. Psychological Segmentation

This division is done according to life style and personality of consumer. You can see different makeup and fashion products in the market which are affected with the psychology of consumers. 

6. Behavioral Segmentation

This division is done according to a) knowledge of consumers b) attitude of consumers c) response of consumers

For example

i) products for first time users

ii) products for regular users

[B] Segmenting the Business Market 

Business market can not divide only above basis but we can divide it on the basis of Zip codes, level of population and IP address of computer also. 

[C] Segmenting of International Market

For segmenting our international market, we have to study international economy  and political environment of each country. After this, we can make and fix the target to sell specific product for specific country according to the need of consumer of that country. It is not necessary that same product will be sold in two or more country. Company should watch cultural factors of different country also.

PRODUCT LIFE CYCLE

PRODUCT LIFE CYCLE

Product life cycle shows the different stages in which it lives his life just as human being. A human being enjoys childhood, youth age and old age and after this, it is sure he will die. Same thing happens with all products. Product life cycle has four parts. In first stage introduction, second stage is stage of growth, third is the stage of maturity and in the end stage is decline. After this, value of product is totally dropped from market due to invention of new product. We can portray its sketch on the graph paper. Its shape will be bell shape. 

Its strategies are divided in Four stages according to life of product. 

Ist Stage 

Introduction stage of Product life cycle

First stage of plc is called introduction stage. In this stage, product is newly developed and launched in the market. Because, consumer does not know about this product earlier, so its marketing is very difficult. Marketer has to teach the consumers about its benefits and its advance facilities . For new product's introductory stage, marketer can take the market with marketing skimming strategy or marketing penetration strategy. One more feature of this stage that company sale will be low. 

2nd Stage 

Growth stage of Product life cycle

In this stage, consumer knows the product because he has taken past experience after purchasing it at introductory stage. So, sale will increase. In this stage, company can increase the price for getting old promotion and advertising cost. Company can pay more on advertising for developing product brand image in the minds of consumers. In this stage company's profit will also rise. 

3rd Stage

Maturity

At this stage product life cycle, our sale reaches at highest level. Product is become well known in the market. In this stage, we have to decrease our price for taking maximum part of product and defeating market competitors. Company can offer special discount to dealer for selling fast before reaching it declining stage. 

4th Stage

Decline Stage

At this stage, sales fall very sharply. No more new customer wants to buy it . At this stage, company can offer public to switch to his new advance product. Company can take milk from brand name without any new advertising cost. 

PRODUCT LIFE CYCLE

Product life cycle shows the different stages in which it lives his life just as human being. A human being enjoys childhood, youth age and old age and after this, it is sure he will die. Same thing happens with all products. Product life cycle has four parts. In first stage introduction, second stage is stage of growth, third is the stage of maturity and in the end stage is decline. After this, value of product is totally dropped from market due to invention of new product. We can portray its sketch on the graph paper. Its shape will be bell shape. 

Its strategies are divided in Four stages according to life of product. 

Ist Stage 

Introduction stage of Product life cycle

First stage of plc is called introduction stage. In this stage, product is newly developed and launched in the market. Because, consumer does not know about this product earlier, so its marketing is very difficult. Marketer has to teach the consumers about its benefits and its advance facilities . For new product's introductory stage, marketer can take the market with marketing skimming strategy or marketing penetration strategy. One more feature of this stage that company sale will be low. 

2nd Stage 

Growth stage of Product life cycle

In this stage, consumer knows the product because he has taken past experience after purchasing it at introductory stage. So, sale will increase. In this stage, company can increase the price for getting old promotion and advertising cost. Company can pay more on advertising for developing product brand image in the minds of consumers. In this stage company's profit will also rise. 

3rd Stage

Maturity

At this stage product life cycle, our sale reaches at highest level. Product is become well known in the market. In this stage, we have to decrease our price for taking maximum part of product and defeating market competitors. Company can offer special discount to dealer for selling fast before reaching it declining stage. 

4th Stage

Decline Stage

At this stage, sales fall very sharply. No more new customer wants to buy it . At this stage, company can offer public to switch to his new advance product. Company can take milk from brand name without any new advertising cost. 

NEW PRODUCT DEVELOPMENT PROCESS

Definition of Product

Product is the tangible and intangible things which satisfy the needs of consumers. It means not only physical things which we purchase are the products but all the services of other persons are also product. For example TV, computer, watch, food, house and Taxi driver's services are also products which we can purchase and satisfy our needs. 

Following are the seven stages or steps in development of a new product

Ist stage 

Idea generation 

Idea generation is the first stage of product development. For developing a product, company takes the idea from his internal and external sources. 

internal sources of idea generation

a) basic research on google b) idea from production department c) sales men's idea d) top management's idea

external sources of idea generation 

a) business magazine b) competitors c) necessity of consumers c) inventor's idea 

* 

Idea should be helpful for satisfying consumer's need, other wise drop the idea. For taking second step ask from yourself, is it worth considering - if yes, then take second step

2nd Stage 

Idea Screening 

It is the second stage or step of development of new product. After collecting large number of idea for making new product, company will analyze them with his technical screening system or team and drop bad idea. Idea screening is helpful 

a) to reduce the chance of development of product on the basis of poor idea.

b) to reduce the chance of not developing the product on the basis of very good idea. 

* 

Technical base of idea screening 

Company can enumerate his employees to make check list for idea screening. 

value of idea 

basis of screening 

good idea - should be selected 

bad idea - should not be selected 

3rd Stage

concept testing 

This is the third stage of development of new product. In this step, we test the product's development with in company before actual launch in the market for following purpose. 

a) To know 

whether our buyer will buy it or not?

b) To know 

whether it will be suitable for consumer according to their need of product?

* Company can also use computer for lab testing



4th Stage

Business Analysis

This is the fifth stage of development of new product. In this stage, company calculate his overall return on investment, if company will launch the product. If it is profitable, company will produce it otherwise, drop his plan because company's money is not money of one man or employee but this money is invested by large number of investors. So, board of directors can not waste it by unprofitable production of new product. For calculating this, they will analyze 

a) demand b) cost c) profitability
5th Stage 
l Product development 

After this, company's R and D department produces one or two sample of products and check it. 
6th Stage 

Market Testing

In this step or stage, company launches product in very small part of market as market test and for knowing the interest of consumers, dealers and retailers. If consumers' reaction are good, company will take the next action. 
7th Stage

Commercialization 

In this step, company manages large scale production, marketing and commercialization of new product with following marketing strategy.

a) when to produce - fix the time

b) where to produce - fix the geography

c) to whom to sell - target marketing strategyd) How  - Brand Strategy.

MARKETING CONCEPT

Definition of Marketing

Marketing includes all activities for transferring goods from producer to consumers. Its main aim is to sell and satisfy the consumers. Today, market’s king is consumer. So, marketing provides you good technique to handle customers.

Main Marketing Concept
1. Production Concept

This concept guides us that we should produce the products at minimum production cost.
2. Product Concept

This concept guides us that we should sell the best quality product to consumers.
3. Selling Concept

Selling concept guides us that we should take minimum selling price from consumer. For this we have to decrease our selling cost.
4. Marketing Concept

Marketing concept guides us that in this era, consumer is king of market and all marketing activities main target should be to satisfy the consumers. Customer satisfaction is the focal point pf marketing.we start marketing from identify the needs and want of the customer,

QUIZ 1- WITH ANSWERS

1.Which among the following is not a internal factor of Marketing Environment?
(A)Policy of the firm
(B)Marketing Distribution Channel
(C)Labor Policy of the Government
Ans- (C)

 2.Which among the following does not come under social environment of marketing?
(A)Life Style
(B)Caste System
(C)Size of Population

Ans-(C) size of population comes under Demographic Environment

3.Which among the following are called final accounts of a Bank ?
(A)Trading Account, Profit & Loss Account and Balance Sheet
(B)Profit & Loss Account and Balance Sheet
(C)Balance Sheet Only

Ans- (B)

 4.Loan & Advances of a bank come under which of the following category ?
(A)Assets
(B)Liabilities
(C)Costs

Ans-(A)

 5.What is the full form of ECB ?

(A)Extra Commercial Banking
(B)Extra Commercial Borrowings
(C)External Commercial Borrowings

Ans-(C)

 6.Which among the following is correct regarding call option & put option in currency markets?
(A)Call option is for sellers & Put Option is for Buyers
(B)Call Option is for Buyers & Put option is for sellers
(C)none of them is correct

Ans-(B)

 7.All the foreign exchange of the country ultimately goes to which of the following ?
(A)Ministry of Finance
(B)Reserve Bank of India
(C)Finance Secretariat

Ans- (B)

 8.In the Banking Environment , which among the following is the internal factor?
(A)Customer
(B)Staff
(C)Market

Ans-(B)

 9.Which among the following is NOT a controllable factor of Marketing Environment ?
(A)Labeling of a Product
(B)Policy of the firm
(C)Organizational Structure

Ans-(A)Labeling requires some legal aspects.

 10.Employee of a Bank comes under which of the following environment ?
(A)External Environment
(B)Internal Environment
(C)Indirect Environment

Ans- (B)

 11.Bulk Breaking comes at which part of the marketing channel ?
(A)Wholesaler
(B)Distributor
(C)Retailer

Ans-(C)

 12.Which among the following media has most effective visual impact on a customer?

(A)News paper
(B)TV
(C)Radio

Ans- (B)

13.The desirability and profitability of advertising can be judged by which of the following ?
(A)Selection of media.
(B)Coordination of marketing & advertising
(C)Return on Investment

Ans-(C)

14.Telemarketing is effective in _______ ?
(A)Industrial Marketing
(B)Consumer Marketing
(C)Industrial as well as Consumer Marketing

Ans- (C)

 15.Which among the following is the smallest retailing unit?
(A)Departmental Store
(B)Specialty Stores
(C)Convenience Stores

Ans- (C)

 16.Which among the following is the largest retailing Unit?
(A)Cash & Carry Store
(B)Super market
(C)Hyper market

Ans-(C)