Marketing-information systems provide a continuous flow of information designed to assist decision making. Marketing-information systems differ from MARKET RESEARCH in the fact that they are continuously updated and utilized as opposed to being designed to address a specific problem. Marketing-information systems are or should be integrated into MANAGEMENT-information systems. Marketing-information systems typically focus on sales and customer information. Sales managers often want a monthly or quarterly report on sales by each product group, region, or salesperson. This type of information is used to determine performance, SALES PROMOTIONs, and pricing changes. In addition, information regarding sales per customer or TARGET MARKETS is used to evaluate past marketing strategies and potential growth areas. One important use of marketing-information systems is to provide company history. With changing personnel, downsizing, and OUTSOURCING, organizations often lose the collective knowledge of past marketing efforts. A good information system can provide insights from past experiences. For example, one company sells collectible plates and figurines through advertisements in magazines; over the years, it is advertised hundreds of items in dozens of magazines. When considering new PRODUCTs, the company’s marketing people search their information system for similar products and then the response rate in various magazines. When combined with the current ADVERTISING cost in those magazines and the gross margin for the item being considered, the company has reliable information to determine the likely profitability of ad placements for the new product. Another use of marketing-information systems is CUSTOMER-RELATIONSHIP MANAGEMENT (CRM). CRM is a philosophy and process of building and maintaining relationships with customers. The more a firm knows about its customers, the better it can anticipate and meet their needs. One simple marketing-information method is a date-“tickler” system, which many salespeople use to remind them when it is time to communicate again with their customers. Dentists send reminder cards, and business send time-to-change/renew/upgrade notices. Using an information system organizes basic information to effectively maintain customer communications and relationships. Marketing-information systems can also be used as part of decision-support systems, which integrate, analyze, and interpret information. While a marketing-information system typically allows access to the company’s database, a decision-support system allows managers to conduct statistical analyses and manipulate the database to meet their specifications. One use of the information is called data mining, or statistical analysis designed to identify patterns and relationships. With today’s electronic-scanning systems, companies often have billions of pieces of information about their customers. Data mining can cluster groups of customers with similar buying patterns, identify regional changes in CONSUMER BEHAVIOR, and also track short-term changes. One story connected with the events of September 11, 2001, concerns sales at Wal-Marts around the country that day. From the first attack until about noon, sales plummeted, but in the afternoon, sales of necessities like batteries and bottled water expanded, as did sales of guns and ammunition. By the evening and next day, sales of U.S. flags had skyrocketed.
See also CUSTOMER RELATIONS / SATISFACTION; DATABASE MANAGEMENT; MARKETING STRATEGY.