What are the subsystems of marketing information system?

Marketing is important functional operation in any type of organizations. The basis objective of the function of marketing is to satisfy the wants and needs of its customers. To achieve this objective, organization engages marketing personnel to plan product, price, promotion, distribution and deciding credit terms to the customers as well as to conduct market research. I have explained in this article regarding the subsystems of marketing information system briefly.

This operational marketing information system collects data from the system of sales order, processes data and makes marketing information available to the marketing managers to allow them to take decisions. The system of market information is primarily customer oriented systems of information that work towards realizing the strategic sales plan and the marketing plan of an organization.

A system that is dedicated completely to the marketing functions is known as dedicated marketing information system. Marketing information system cannot be standardized for all companies. The marketing system should be tailored to match marketing practices, procedures and policies of each company.

To be more effective, marketing information system should be coordinated with other organizational information system such as receivables, inventory, production, purchasing, credit and order entry system.

The subsystems of marketing information system are

  • Forecasting system – Market forecasting system is essential system. It refers to estimating the future demand for the services or products. This system normally takes input from the existing information systems and allows the organization to forecast the future.
    By utilizing various techniques of predicting the demand of the products can be ascertained that serves as basis for all the functional area. Appropriate predicting technique should be utilized based on the information. The forecasting helps for planning as well as useful for controlling also.
  • Customer analysis system – This customer analysis system provides useful information regarding various types of customers. The customers can be divided into: export customers, government customers, corporate customers, bulk customers and small, individual segment.
    The characteristic of each customer varies and these groups of customers should be studied at length so as to improve the performance of the company in that particular customer segment. This system allows understanding the problems of various customers.
  • Market research system – This system provides details on particular problem of marketing. It gathers consumer related data that can be utilized to support decisions of marketing.
    Through marketing research useful information as to promotion, sales and product can be obtained. Marketing research can be through phone interview, personal interview and mail services etc.
  • Market analysis system – This system provides analysis regarding the market information. These analyses are basically related to market segmentation. Segmentation provides basic data for taking decisions as to which segment is doing well and what value concentration is required to improve the market.
  • Market intelligence system – This system refers to an information system regarding the strategies of the competitors. Most of the intelligence system of market obtained in an unstructured manner will be through the word of mouth or through observing statistics available through the media as well as commercial data base services.
    Nowadays due to heavy increase of competition there is a heavy need for the data of market intelligence to have appropriate decisions in marketing.
  • Marketing mix system – This system consists of 4P's. They are product, price, promotion and place. How best these 4P's should be mixed so as to achieve the objectives of marketing. These 4P's plays very important role in marketing. This system provides details as to which product is needed by the customers at what price as well as what promotional measures should be taken to make the services or products to reach the customer and the last but not the least the delivery place.
  • Electronic shopping and advertising – Electronic shopping allows the customers to view about products and company on the electronic means, i.e., internet to purchase the goods or services, in the case of global marketing electronic shopping as well as advertising systems help heavily though they are expensive.
    Advertising creates interest in the customer's minds regarding the products. Advertising is information regarding the products as well as company. Electronic stalls are employed at a central location for the purpose of advertising and providing potential customers to access the information about services and products. They also serve as good tools for market research.
    Without websites, organizations today are likely to feel somewhat handicapped. Present days every type of company maintains websites for the sake of providing information regarding their services and products. Internet advertisements have become famous for means of organization to reach new customers.
  • Delivery rooting and tracking system – This system tracks the goods vehicles position and calculates the status of delivery. Delivery tracking system employs satellite dishes on the delivery vans in order to monitor the movement and location of vehicles and goods. Delivery routing systems help to route the vehicles efficiently in order to deliver the goods to the customers at lesser cost. The routing software works on geographical maps as well as identifies the best routes for the sake of vehicles that would expedite delivery and reduce the cost.
  • Point of sale system – This system is another fact of the order entry system. It captures data about the order at the point of sale and frequently found in fast food centers chain marketing, department store. The information obtained from point of sale becomes input to the FAIS and also to the marketing information system. Point of sale updates immediately inventory and sales levels. Through point of sales can be monitored minute and inventory also can be monitored closely.
  • Direct mail advertising system – In this system, the company mails, brochures and sends the information directly to the target customers. For this reason company Keeps Company's mailing address. The data may be drawn from the files of customers, account receivable files and prospect files as well as other data purchased from outside. This is quite opposite to mass advertising that reaches an unspecified number of people that may purchase the product or not. This direct mail advertising system permits high target market selectivity, flexibility, personalization, early testing of the product or services as well as measurement of the results.
  • Telemarketing system – This system means use of telephone to sell the products or services. It has become a common as well as important means by which organizations improve productivity of their sales force. This system allows sales people to initiate contacts, offer services or products as well as follow-up on sales without incurring travelling cost. This telemarketing system enables sales person to reach many customers within a given time for telemarketing use electronic directories as well as online databases for the purpose of gathering particulars of prospective of customers to meet the sales targets. This system has allowed several firms to increase their sales substantially and gain market share as well as at the same time decrease the cost per sale.
  • Data warehousing and micro marketing system – Micro marketing means diving sales or advertising campaigns to very narrowly defined customers. With the help of computers, micro marketing is possible. They are utilized for the sake of identifying and targeting specific customer or prospects from large database. It needs large customer database known as data warehouse. Data warehouse have extensive data regarding customers. This information in data warehouse can be sorted analyzed to obtain specific customer information. This process is known as the data mining and its main is to identify new opportunities in marketing and is helpful to the department of marketing for the purpose of focusing on narrow as well as niche markets in many activities of marketing.
  • Sales force automation system – The sales force automation system is designed for the sake of increasing the productivity of sales people. In this system identifying prospective customers, contacting them, making demonstration, calling on customers, giving answers to the questions, and choosing the sales and follow-up on sales. This system addresses only the task of administrative of sales people.

    The sales force automation system helps the sales force in the following methods.

    This system provides details as to travel expenditure or salesmen sales commission. It provides details regarding the sales like product wise, area wise, region wise, salesperson wise, order booking can be recorded and analyzed. It assists in maintaining and collecting details pertaining to customers their sales history, product preference. For this job contact management subsystems helps very much.

    To help the sales forces to collect existing as well as potential customers. In this case the prospective information system helps sales force in locating potential customers from source such as existing customers, customer enquiries, vendors, directories and online database by external agencies etc. The benefits of this system are reducing sales cycle, increase revenue on sales, developing order management and capturing customer related information.


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