Marketing Information Systems- A Longitudinal Analysis | PAPER IV – RETAIL BANKING & WEALTH MANAGEMENT | Module C: Support Services – Marketing of Banking Services | Products
Marketing Information Systems (MKIS) – A Longitudinal Analysis
Descriptive Notes
Marketing Information System (MKIS) is a structured arrangement of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute timely and accurate information to marketing decision makers.
Functions of MKIS
- Collecting marketing data from internal and external sources
- Storing and retrieving marketing data
- Analyzing data to generate actionable insights
- Supporting decision-making processes
Components of MKIS
- Internal Records System: Sales, costs, inventories, cash flows
- Marketing Intelligence System: Everyday information about developments in the marketing environment
- Marketing Research System: Designing studies and surveys to gather new data
- Analytical Marketing System: Tools for data analysis and decision-making
The MKIS Model
The MKIS model typically includes Input (Data Collection), Processing (Analysis), Storage (Database), and Output (Reports/Insights).
Observations
Longitudinal studies show increasing integration of MKIS with enterprise systems and improved decision speed and quality.
Usage of Computers in MKIS
- Database Management
- Statistical Analysis Tools (e.g., SPSS, SAS)
- Visualization Software (e.g., Tableau)
- ERP Integration (e.g., SAP, Oracle)
Supports for Marketing Management
MKIS helps managers monitor market trends, customer behavior, and competition, thereby enabling strategic planning and response.
Supports for Marketing Mix Decisions
MKIS supports decisions regarding Product, Price, Place, and Promotion through data-driven analysis.
Use of Decision Models
MKIS incorporates models like forecasting models, regression models, and optimization models for better decision-making.
Performance of MKIS
Performance is measured by accuracy, speed, usability, cost-effectiveness, and the quality of insights provided.
Recommendations
- Invest in real-time analytics and AI
- Enhance data security and integration
- Train personnel in data interpretation
Advantages of MKIS
- Improved decision-making speed and accuracy
- Better resource allocation
- Enhanced competitive advantage
Mathematical Examples (Medium-Hard)
- If a company’s MKIS reveals that a promotional campaign increases sales by 20% monthly, what would be the sales in 3 months if the base sales are ₹1,00,000?
Solution: ₹1,00,000 × (1.20)3 = ₹1,72,800 - An MKIS model shows a correlation coefficient (r) of 0.82 between ad spend and sales. What does this signify?
Answer: Strong positive correlation; ad spend significantly influences sales. - Given a linear regression model: Sales = ₹5000 + 3×AdSpend. What will be the sales if AdSpend = ₹10,000?
Solution: ₹5000 + 3×₹10,000 = ₹35,000 - A decision model forecasts ROI using: ROI = (Net Profit / Investment) × 100. If profit is ₹2,00,000 on investment ₹10,00,000, calculate ROI.
Solution: (₹2,00,000 / ₹10,00,000) × 100 = 20% - Customer segmentation in MKIS uses cluster analysis. If 500 customers are divided into 5 equal clusters, how many in each cluster?
Solution: 500 / 5 = 100 customers per cluster - MKIS dashboard shows monthly product return rates: 5%, 6%, 7%, 4%, 5%, 8%. Calculate average return rate.
Solution: (5+6+7+4+5+8)/6 = 35/6 ≈ 5.83% - Using MKIS, a company forecasts demand using exponential smoothing: Ft+1 = α×Dt + (1−α)×Ft, where α = 0.3, Dt = 1000, Ft = 950.
Solution: Ft+1 = 0.3×1000 + 0.7×950 = 300 + 665 = 965 - If the cost to upgrade an MKIS is ₹5,00,000 and annual cost savings = ₹1,50,000, calculate payback period.
Solution: ₹5,00,000 / ₹1,50,000 ≈ 3.33 years - A/B testing in MKIS yields: Group A conversion = 4%, Group B = 5.5%. What is % improvement?
Solution: (5.5 - 4) / 4 × 100 = 37.5% - If MKIS shows price elasticity of demand = -2, and price drops 10%, what is expected increase in demand?
Solution: -2 × (-10%) = +20%
MCQs (Medium-Hard Level)
- Which component of MKIS is responsible for analyzing customer feedback?
a) Internal Records
b) Marketing Intelligence
c) Analytical Marketing System
d) Marketing Research
Answer: c) Analytical Marketing System - Which model helps MKIS in forecasting sales?
a) Input-output model
b) Linear regression model
c) Value chain model
d) Five Forces model
Answer: b) Linear regression model - Which of the following is not a function of MKIS?
a) Data collection
b) Manufacturing planning
c) Data analysis
d) Decision support
Answer: b) Manufacturing planning - The use of AI in MKIS helps mainly in:
a) Manual record keeping
b) Data deletion
c) Predictive analytics
d) Product design
Answer: c) Predictive analytics - What type of data is generally not stored in internal records?
a) Sales data
b) Supplier invoices
c) Competitor pricing
d) Inventory levels
Answer: c) Competitor pricing - What is the output of an MKIS typically used for?
a) Product assembly
b) Strategic marketing decisions
c) Payment of bills
d) Physical distribution
Answer: b) Strategic marketing decisions - Which of these would most likely be used in an MKIS to model customer churn?
a) Tally marks
b) Neural network
c) Pie chart
d) Control chart
Answer: b) Neural network - What does a negative price elasticity imply in MKIS?
a) Price increase leads to higher demand
b) Price decrease leads to higher demand
c) No relationship between price and demand
d) Demand remains unchanged
Answer: b) Price decrease leads to higher demand - Which system is used for real-time data entry in MKIS?
a) Batch processing
b) Manual entry
c) Online transaction processing (OLTP)
d) Hardcopy entry
Answer: c) Online transaction processing (OLTP) - Which of the following is a key advantage of using MKIS?
a) Increased taxation
b) Slower response to market
c) Better marketing decisions
d) Decreased customer satisfaction
Answer: c) Better marketing decisions
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