4 Main Components of Marketing Information System (MIS)

Components of Marketing Information System MIS

The Marketing Information System abbreviated as MIS, collects, analyses, and supplies only relevant information to the marketing managers.

MIS is a crucial information system and also a valuable marketing tool. It helps not only to plan and implement marketing activities but also to control them systematically. It is not just a system but also a productive asset that grants marketing managers access to various facets of the required information. Without it, the work of the marketing managers would rather be complex and tedious. Without access to relevant information on the market and its elements, it would not be easy to plan marketing strategies and execute them successfully.

MIS is an indispensable tool and an informative asset for managers.

The essential task or role of the Marketing Information System (MIS) is to search and identify the exact information needed by marketing managers. Once the nature of the required information is confirmed, MIS starts collecting and analyzing relevant data. The most significant aspect of the MIS is to supply only relevant, specific, and essential information to the marketing managers at the right time.

The MIS does its information gathering or data collection process through many subsystems called Components.

The Marketing Information System (MIS) contains four main components or subsystems. These are:

1. Internal Records (IR),
2. Marketing Intelligence (MI),
3. Marketing Research (MR), and
4. Marketing Decision Support System (MDSS).

The following images depict the four main components of the Marketing Information System (MIS).

Image credits © Gaurav Akrani.

The following points discuss and explain four main components of MIS:

1. Internal Records (IR):
   • Internal Records (IR) is the first component of MIS.
   • It deals with the company's insider or internal information.
   • It helps marketing managers procure reliable, current, and relevant information.
   • Generally, it gives information about the company's accounts, sales, inventories, cash flows, etc.
   • Many companies maintain their internal records in a computerized or digital form.
   • It gives marketing managers faster access to the company's latest and updated internal information.
   • IR is considered a primary component of MIS.
2. Marketing Intelligence (MI):
   • Marketing Intelligence (MI) is the second component of MIS.
   • It collects intelligence from external sources.
   • It mainly focuses on gathering information about the latest trends and changing conditions happening within the market.
   • Its external sources mainly include commercial press, trade journals, and magazines.
   • It doesn't collect information from the annual reports of the Trade Association and Chambers of Commerce.
   • Reports compiled by sales personnel are also a source for MI.
   • It collects information that is carefully evaluated and organized.
   • This properly organized information is helpful to marketing managers in formulating marketing policies and decision-making.
   • MI is considered a brain or intelligent component of MIS.
3. Marketing Research (MR):
   • Marketing Research (MR) is the third component of MIS.
   • It solves a specific marketing problem faced by the company.
   • It conducts market research to find a solution to the marketing problem encountered by the company.
   • First, it collects data about the marketing problem, and later on, this data is well-tabulated and organized.
   • Tabulated information is then used for proper analysis and reaching conclusions.
   • It helps marketing managers solve a specific market-related problem systematically.
   • It is used only for a particular intent or a focused purpose.
   • Therefore, the scope of MR is narrow, limited, and focused.
   • MR and MIS are not substitutes for each other.
   • As compared to MR, MIS has a broad scope.
   • MR is considered an investigative component of MIS.
4. Marketing Decision Support System (MDSS):
   • MDSS is the fourth component of MIS.
   • MDSS includes tools that marketing managers use to analyze data and make better decisions.
   • It includes computing hardware and various software.
   • Computers help marketing managers analyze data thoroughly.
   • Software programs help marketing managers find relevant data about market segmentation, price fixing, advertising budgets, etc.
   • Without the help of computers and software programs, marketing managers can't work efficiently. It may impact their productivity.
   • MDSS is considered a toolkit component of MIS.

The following image depicts the first component of MIS, Internal Records or IR.

Image credits © Gaurav Akrani.

The subsequent image depicts the second component of MIS, MI.

Image credits © Gaurav Akrani.

The ensuing image depicts the third component of MIS, Marketing Research.

Image credits © Gaurav Akrani.

The final image depicts the fourth component of MIS, MDSS.

Image credits © Gaurav Akrani.

The following YouTube video is a presentation on four components of MIS.

Video credits © Gaurav Akrani.

This article was re-written, enhanced, and updated on 17th October 2024.