Marketing Information System Is a Management Information

Marketing Information system is a management information system that supports decision making processes in marketing (Kotler & Keller, 2006). Marketing data is gathered, stored, and analyzed within this system and distributed on timely basis to managers to enhance decision making processes (Kotler, 1988). It is a continuing and an interactive structure of people, equipment and procedures to gather information that is used in decision making processes in an organization. The major components of management information system are internal reporting systems, marketing research system, marketing intelligence system, and marketing models. Information touching on finances, production, manpower, marketing, stockholding, and logistical data are normally stored in marketing information system. Orders received, stockholdings and sales are also stored in the marketing information system. Other than the above named information, marketers can also get information related to product type, size, and pack by territory, type of account, industry, and customer; average value and volume of sale by territory, type of account, industry, and sales person are also stored in the marketing information system (Agnilar, 1967).

Question2. Steps in marketing research process

Marketing research processes informs business decision process. The process involves definition of the objective or the problem, determining the research design, designing and preparation of research instrument, data collection, analysis of data, and visualization of data and subsequent communication of results (My Market Research Methods, 2011).

Definition of the problem is the most important process in marketing research. It involves defining of goals and objectives of the project. Once somebody has known the research object, s/he undertakes to plan out the type of research that can best obtain the necessary data. By understanding business problem clearly it makes it easy for research to be focused and effective. Determination of research design begins with determination of market research method followed by planning on where the research will be conducted. The goal of the research must always be kept in mind (My Market Research Methods, 2011). The choice of research instrument should be based on nature of data to be collected. Thus far one can decide to engage in exploratory research, descriptive research, or causal research. Designing research tool involves writing of questions and designing the questionnaire. There are a number of software packages that can be used in data analysis. These are Excel, SPSS, and Minitab. After marketing research data has been analyzed, sense has to be made out of that data by making digestible report or presentation. This is where charts and graphs are used. Visualization of data also involves presenting insights, answers, and recommendations (My Market Research Methods, 2011).

Question3. Telephone interviews have reduced costs; have quick turnaround time; interviewers can be closely supervised to assure greater standardization of administration; the invention of computer driven questionnaire presentation has also given some edge to telephone interview (Holbrook, Green & Krosnick, 2003). Some of the disadvantages of telephone interviews are unlike in face-face interview where show cards can be used to present choices to consumers, advance contact is a perquisite in telephone interview where show cards are mailed to the respondents. Telephone interviews at times forego the use of show cards.

Mail questionnaires are least expensive because they are sent with the names and addresses of the target population. Pictures can be included in the questionnaires like show cards. Respondents can answer questions at their leisure time rather than at the convenient time of the person conducting the interview through medicine. The disadvantages with mail questionnaires are that long duration of time is spent in mailing the surveys (Jeff Anderson Consulting 2013). This takes several weeks. Mails questionnaires cannot be used in populations with lower educational and literacy levels where response rates are often too small.

Online interviews are extremely fast, large samples do not cost much more than smaller samples, pictures, audios, and videos can be included. Significant numbers of people give more honest answers in online interviews especially those touching on sensitive topics. Web-based questionnaires uses complex question skipping logic, randomizations, and other features that cannot be used with paper questionnaires (Jeff Anderson Consulting 2013). Online interviews that basically make use of internet do not reflect the population as a whole. Respondents can also quit in the middle of the questionnaires.

Through face-to-face interview an interviewee can see and feel the product especially when there are show cards. The target population can be accessed easily than by calling phone numbers at random. Longer interviews can be tolerated in face-to-face interviews than when interviews are conducted over the phone. However, personal interviews cost more per interview than other research methods because of travel related costs (Jeff Anderson Consulting 2013).

Question4. Probability and non-probability samples

Information is gathered using a variety of methods in research. Choice of experimental subject is therefore imperative. The choice can be made using probability-based methods or non-probability methods. In probability-based sampling population of interest can be settled on using probabilistic algorithm. In non-probability sampling like the quota sampling samples are drawn in stages to produce samples that match the target population (Doherty, 1994).

Probability-based sampling if properly carried out guards against bias that can arise from subjective judgments in sample selection. However, non-probability sampling like the quota samples such biases can be witnessed especially if interviewers consciously choose non-threatening or easy to approach respondents (Doherty, 1994).

Question5. Description of profit, market share, competitive effect, customer satisfaction, and image enhancement and their examples

Profit objective refers to a targeted level of profit growth or plainly put a desired net profit margin. A business proprietor will always want to maximize profits if a product has a short life-cycle, achieve a target level of profit growth, or receive a return on investment (Anonymous, 2011).

Market share objectives has much to do with setting prices at a level where sales are maximized or increasing market share of lets say mobile phones.

Competitive effect objectives are intended to impact the marketing efforts and reduce the competitiveness of competitors. Another reason as to why businesses like Walmart would want to engage in competitive effect is to stabilize the prices (Anonymous, 2011).

Certain firms set prizes of their commodities to maximize the value to the customer. Firms believe that when they focus on short-term profits, they can possibly lose sight of retaining their customers on long-term basis (Anonymous, 2011).

Firms recognize that consumers often use price to make inferences about quality of a product. They may engage in image enhancement to gain prestige, status, exclusivity, and subsequently charge high prices.

Question6. Variable costs, fixed costs, average variable costs, average fixed costs, and average total costs

Variable costs include total variable cost and average variable cost. Average variable cost is calculated by dividing fixed costs by the number of units produced. Average total cost is the fixed cost over the number of units a firm produces. Average variable cost is the variable cost per unit calculated as TC/q. average fixed cost (AFC) is the fixed cost per unit of output. Fixed costs are costs that are independent of a number of goods one produces. It is the cost incurred when one does not produce any good (Moffat, 2013).

Question7. Definition of break-even analysis and marginal analysis

Break-even analysis is a method of determining the number of units that a firm must produce and sell at a given price to break even where as marginal analysis focuses on cost and demand at the same time to identify the output and price that will generate the maximum profit. A point where total cost equals total revenue is refereed to as break-even-point (Anonymous, 2011). Break-even analysis helps business proprietors to identify the output and the price that will generate the maximum profit. Marginal analysis on the other hand helps business proprietors to identify the output and the price that generates the maximum profit.