Information Technology Reference
In-Depth Information
Marketing Management Information Systems
A marketing MIS supports managerial activities in product development, distribution, pric-
ing decisions, promotional effectiveness, and sales forecasting. Marketing functions are
increasingly being performed on the Internet. 31 When an English teacher in Japan put a
number of fun family projects for children and their families on www.Digg.com , a popular
Web site, it had an unexpected marketing consequence. 32 In only a few days, it dramatically
increased sales of rivets used to complete the projects. According to Andy McGrew, owner
of a company that sells blueprints for many home projects, “It would have taken me a year
to sell that many rivets.” Many companies are developing Internet marketplaces to advertise
and sell products. The amount spent on online advertising is worth billions of dollars an-
nually. Newer marketing companies, such as AdMob, Inc. ( www.admob.com ), are placing
ads on cell phones and mobile devices with Internet access. 33 According to an executive of
AdMob, “Everybody's just trying to dip their toes in the water and figure out what's going
to work.” Software can measure how many customers see the advertising. Some companies
use a software product called SmartLoyalty to analyze customer loyalty.
Some marketing departments are actively using the Internet to advertise their products
and services and keep customers happy. Companies, for example, are starting to advertise
their products and services on Facebook ( www.facebook.com ), a social-networking site. 34
YouTube, the video-sharing Internet site, sells video ads on its site to companies, including
Ford, BMW, Time Warner, and others. 35 After about ten seconds, the video ad disappears
unless the user clicks it. 36 Corporate marketing departments also use social-networking sites,
such as Second Life ( www.secondlife.com ), to advertise their products and perform marketing
research. 37
Customer relationship management (CRM) programs, available from some ERP ven-
dors, help a company manage all aspects of customer encounters. CRM software can help a
company collect customer data, contact customers, educate customers on new products,
and sell products to customers through a Web site. An airline, for example, can use a CRM
system to notify customers about flight changes. New Zealand's Jade Stadium uses CRM
software from GlobalTech Solutions to give a single entry point to its marketing efforts and
customer databases, instead of using about 20 spreadsheets. The CRM software will help
Jade Stadium develop effective marketing campaigns, record and track client contacts, and
maintain an accurate database of clients. Yet, not all CRM systems and marketing sites on
the Internet are successful. Customization and ongoing maintenance of a CRM system can
be expensive. Figure 10.10 shows the inputs, subsystems, and outputs of a typical marketing
MIS.
Subsystems for the marketing MIS include marketing research, product development,
promotion and advertising, and product pricing. These subsystems and their outputs help
marketing managers and executives increase sales, reduce marketing expenses, and develop
plans for future products and services to meet the changing needs of customers.
marketing MIS
An information system that
supports managerial activities in
product development, distribution,
pricing decisions, and promotional
effectiveness.
Marketing research. The purpose of marketing research is to conduct a formal study of
the market and customer preferences. 38 Computer systems are used to help conduct and
analyze the results of surveys, questionnaires, pilot studies, and interviews. eCourier, for
example, uses Crystal Reports from Business Objects to determine customer habits and
preferences. 39 The company can perform marketing research using its Web site to help
determine which customers are happy and still buying and which ones might switch to
another company. According to an executive at eCourier, “We know of ten cases where
there were problems, for whatever reason, and we got in there early. As a result, we were
able to save the client.” In addition to knowing what you buy, market research can
determine where you buy. 40 This can help in developing new products and services and
tailoring ads and promotions. With the use of GPS positioning systems, marketing firms
can promote products to you over cell phones and other mobile devices by knowing your
location.
Product development. Product development involves the conversion of raw materials
into finished goods and services and focuses primarily on the physical attributes of the
product. Many factors, including plant capacity, labor skills, engineering factors, and
 
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