Marketing Information System This Is a Type

Marketing Information System

This is a type of management information system that is designed for supporting the process of marketing decision making. This is a system which is planed and entails the collection, processing, storage and dissemination of data in information form required in carrying out management functions.it is also termed as a system made up of people, equipment and procedure which are used in gathering, sorting, analyzing, evaluating and distribution of data to managers according to the required informational needs regularly. There are four main components of marketing information system these are internal records which gives reliable inside information of an organization; marketing intelligence that gives information collected from external sources; marketing research for solving marketing problems in an organization and marketing decision support system comprise of tools that assist managers in data analysis hence better decision making. The marketing decision support system enables marketers to get the information they require through using computer and hardware programs. The software programs enable them to fix prices, carry out market segmentation and handle their advertising budgets.

Marketing research process

A marketing research process needs an outlined, methodical acquiring of market data which will assist in decision making for both the business and management. There are various steps that are required in a marketing research process. First thing there should be the clear stating of research objectives. Any research study that will be fruitful starts with a clear definition of objectives. The next step involves the sources of data.in marketing research there are two types of data sources; primary and secondary .secondary data sources are also termed as published data and they are got from sources which are independent and credible. Therefore, secondary data sources ought to be the first line of data collection in the marketing research process since they are not expensive and available widely. The third stage is the instrumentation used in collecting data. For a marketing research process that will be collecting primary data, there should be the formulation of an instrument to collect data. Most of the instruments used are questionnaires and observational studies. The next step is determination of a sample size and design to be used. Quality when it comes to sample size is considered more important compared to quantity. The aim of sampling is to get answers which will act as a representation of the whole population. Sampling methods which cane be used are primary sampling methods like random sampling and stratified sampling. The final step is analyzing the data and writing the final report of the marketing research. Definition of the research problem helps the owners of a business not to study problems that do not exist or not correct (Price, 2010).

Advantages and disadvantages of interviews

face-to-face interviews are advantageous since there are social cues involved such as intonation, voice and body language. This will make the interviewer gather some additional information from these social cues. A disadvantage of face-to-face interview is the fact that they are mostly tape recorded and hence most interviewers do not take notes. This is a disadvantage because notes are essential incase there was a malfunction during the recording process.

The advantage of telephone interview is that it has an extended access when it comes to those who participate. This includes a wide geographical aces and populations that are hard to reach. A disadvantage of telephone interviews is that there is a reduction of social cues since the interviewer and interviewees do not see each other.

The advantage of online interviews is that a lot of time and costs are saved when interviews are conducted online. A disadvantage of online interviews is that interviewer is not able to see the situation where the interviewee is hence there can be no creation of a good interview ambiance.

Mail questionaries' are advantageous since they save time and money when it comes to collecting information through questionnaires. The disadvantage of mail questionnaires is the fact that many people tend to avoid them hence very few replies come back (Opdenakker, 2006).

Probability and non-probability samples

Probability samples are selected mainly based on chance. The minds of humans have absolutely no control when it comes to either selecting or not selecting of the sample units. On the other hand non-probability samples are not selected based on chance. The selection of this type of samples is determined by people. Probability sampling method is also referred to as random sampling and examples include simple, stratified and systematic random sampling. On probability sampling methods includes all other sampling methods which are non-random.

Pricing objectives

Pricing objectives are simply defined as the goals that give a direction to the pricing process. There are various types of pricing objectives which come into play in businesses. These include Profits, the way commodities are priced affect the profits of an organization directly and indirectly. The direct effect involves whether this price cover cost of production. The indirect effect of price on profit is the number of units sold. Another objective is increasing market share. This is in the sense that an organization feels it can set lower unit costs with high volumes hence a long-term profit increase. The other pricing objective is competitive effect. The price setting is done putting into consideration of competitors. The products will be priced lower that their competitors. Customer satisfaction means that pricing is done while putting the interest of customers into consideration. The products are priced in such a way that the customers will feel comfortable buying. Image enhancement is another pricing objective. Here the organization strives to enhance its image as a leader in production of quality goods. The organization thus positions itself as a leader in terms of quality through premium pricing (Johnson, 2011).

Types of costs in Business

Variable costs comprise of all expenses that proportionally change according to the business activity. Fixed costs are expenses which do not depend on the level of goods or services produced in the business. They are normally time related and include rent or salaries to be paid on monthly basis. Average variable cost includes all variable costs divided by the quantity or output produced. Average fixed costs are the total fixed costs in a production process divided by the quantity of output that is produced. Average total costs are the sum of all the costs incurred during a production process divided by the total units produced.

Break even and marginal analysis

Break even analysis is an analysis used to determine the point where the received revenue equals the cost that can be linked to receiving the revenue. Marginal analysis involves examining added benefits of an activity as compared to the additional costs involved in that activity. Break-even analysis is advantageous to marketers as it helps in arriving at correct prices allow profit realization and help in making future predictions.