Marketing Information System(MkIS) — Definition, Components and Applications

Sagar Pokhrel
6 min readFeb 14, 2018

Detailed Introduction of Marketing Information System (MkIS)

  • MkIS Marketing Information System (MkIS) collects, analyses, and supplies a lot of relevant information to the marketing managers.
  • It is a valuable tool for planning, implementing and controlling the marketing activities.
  • The role of MIS is to identify (find out) what sort of information is required by the marketing managers.
  • It then collects and analyzes the information. It supplies this information to the marketing manager at the right time.
  • The business function of marketing is concerned with the planning, promotion, and sale of existing products in existing markets, and the development of new products and new markets to better serve present and potential customers.
  • Marketing information systems integrate the information flow required by many marketing activities.
  • It Consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
  • MkIS is a permanent and continuous process.
  • Marketing information includes all facts, estimates, opinions, guidelines, policies and other data which is necessary for taking marketing decisions.
  • This information may be collected from both internal and external sources.
  • from customers, competitors, company salesmen, government sources, specialized agencies, so on.
  • This information is analyzed. Then, it is supplied to the marketing managers. The marketing managers use this information for taking marketing decisions.
  • MkIS also evaluates and stores the information. MkIS uses modern technology for collecting, analyzing, storing and supplying information.

MkIS Provides Information For

  • Internet/intranet web sites and services make an interactive marketing process possible where customers can become partners in creating, marketing, purchasing, and improving products and services.
  • Sales force automation systems use mobile computing and Internet technologies to automate many information processing activities for sales support and management.
  • Other marketing systems assist marketing managers in product planning, pricing, and other product management decision, advertising and sales promotion strategies, and market research and forecasting.
  • Planning, control, and transaction processing in the marketing function.
  • Control Reporting Systems support the efforts of marketing managers to control the efficiency and effectiveness of the selling and distribution of products and services.
  • Analytical reports provide information on a firm’s actual performance versus planned marketing objectives.

Characteristics / Features of MkIS

  • Continuous system : MkIS is a permanent and continuous system of collecting information. It collects information continuously.
  • Basic objective : The basic objective of MIS is to provide the right-information at the right-time to the right-people to help them take right decisions.
  • Computer based system : MkIS is a computer-based system. It uses computers for storing, analyzing and supplying information. It also uses micro-films for storing information. Therefore, it is very quick and accurate.
  • Future-oriented : MkIS is future-oriented. It provides information for solving future problems. It is not past-oriented.
  • Used by all levels : MkIS is used by all three levels of management, i.e. top, middle and lower. It is used for making marketing plans, policies and strategies. This is used to solve marketing problems and to take advantage of business opportunities.
  • Sources : MIS collects information from both, internal and external sources. For example, information is collected from company records, publications, etc.
  • Collects marketing information : MIS collects all types of marketing information. It collects information about the consumer competition, marketing environment, government policies, etc. It supplies this information to the marketing managers.
  • Helps in decision making : MIS supplies up-to-date and accurate information. It helps marketing managers to take quick and right decisions.

Other Features may includes:

  • MkIS provides facilities for analyzing effectiveness of advertisement campaigns
  • It helps in finding customer clusters
  • It also helps in converting potential customers to buyers
  • Helps in setting price of products
  • Helps in sales trend analysis


  • MkIS collects the information through its subsystems. These subsystems are called components.
  • The four main components of Marketing Information System (MIS) are:
  1. Internal Database
  2. Marketing Intelligence System
  3. Marketing Research System, and
  4. Marketing Decision Support System.

(a) Internal Record:

  • The first component of MIS is ‘Internal Record’.
  • Marketing managers get lots of information from the internal-records of the company.
  • These records provide current information about sales, costs, inventories, cash flows and account receivable and payable.
  • Many companies maintain their computerized internal records.
  • Inside records help marketing managers to gain faster access to reliable information.
Components of MkIS

(b) Marketing Intelligence

  • It collects information from external sources. It provides information about current marketing-environment and changing conditions in the market.
  • This information can be easily gathered from external sources like; magazines, trade journals, commercial press, so on.
  • This information cannot be collected from the Annual Reports of the Trade Association and Chambers of Commerce, Annual Report of Companies, etc.
  • The salesmen’s report also contains information about market trends.

© Marketing Research

  • Marketing Research is conducted to solve specific marketing problems of the company.
  • It collects data about the problem. This data is tabulated, analyzed and conclusions are drawn.
  • Then the recommendations are given for solving the problem.
  • Marketing research also provides information to the marketing managers.
  • However, this information is specific information. It can be used only for a particular purpose.
  • MkIS and MR are not substitutes of each other. The scope of MkIS is very wide. It includes ‘MR’. However, the scope of MR is very narrow.

(d) Marketing Decision Support System

  • These are the tools which help the marketing managers to analyze data and to take better marketing decisions.
  • They include hardware, i.e. computer and software programs.
  • Computer helps the marketing manager to analyze the marketing information. It also helps them to take better decisions.
  • In fact, today marketing managers cannot work without computers. There are many software programs, which help the marketing manager to do market segmentation, price fixing, advertising budgets, etc.


Steps includes:

  1. Problem Definition and Objective Setting
  2. Developing Marketing Research Plan
  3. Implementing Research Plan
  4. Interpretation and Reporting the findings

Marketing Research Approaches

Research approaches includes:

  1. Observational
  2. Surveys
  3. Experimental

Good Marketing Research:

  1. Is scientific
  2. Is creative
  3. Uses multiple methods
  4. Realizes the interdependence of models & data
  5. Acknowledges the cost & value of information
  6. Maintains “healthy” skepticism
  7. Is ethical

Applications of MkIS

  1. Evaluating Marketing Campaign
  2. Customer Acquisition Cost (CAC)
  3. Time to Pay back CAC
  4. Breakeven Analysis

(1) Evaluating Marketing Plan

  • Return on Investment(ROI) is always a major concern when it comes to marketing or any other business expense.
  • The idea is to check whether the money you put into your marketing plan has resulted in a profit.
  • Must measure the amount spent on each campaign, versus the amount of sales each campaign brought in specifically.
  • Another metric to consider is Marketing Expense To Revenue

(2) Customer Acquisition Cost (CAC) and (3) Time To Payback CAC

(4) Breakeven Analysis

  • The purpose of doing a breakeven analysis is to determine exactly when you can expect your business to cover all expenses and start generating a profit — which is a crucial milestone in the early days of any company.
  • A company’s breakeven point is the point at which its sales exactly cover its expenses.
  • To compute a company’s breakeven point in sales volume, you need to know the values of three variables:
  • Fixed costs: Costs that are independent of sales volume, such as rent
  • Variable costs:Costs that are dependent on sales volume, such as the cost of manufacturing the product
  • Selling priceof the product

Breakeven Point in Units = Fixed Costs ÷ (Price — Variable Costs)

Strategic Applications of MkIS

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Originally published at on February 14, 2018.



Sagar Pokhrel

Lecturer, Technology in Education Practitioner, @PrestaShop Ambassador to Nepal, Data & BI Freak, Aspiring IT Entrepreneur