By Jay C, 2/19/2004
Abstract
The market is an environment and firm live in. Generally customers, competitors, stack holders, government, labor union, supplier and financial institutions etc surround the firm.
Environment and Process
Michel porter’s value chain is the coin tossed by many solution providers in this environment.
Value chain is based on the process view of organizations.
A manufacturing (or service) organization as a system is made up of subsystems each with inputs, transformation processes and outputs.
Inputs, transformation processes, and outputs involve the acquisition and consumption of resources - money, labor, materials, equipment, buildings, land, administration and management.
Primary value chain activities are
1. Inbound
2. Operation
3. Outbound
4. Marketing and sales
5. Service.
In reality, value chain is chain of problems in its every operation. These problems can be categorized under structured problems and unstructured problems. However structured problems can be programmed under specific system. Top management can deal unstructured problems. But where is the bridge in between structured and unstructured problems?
Decision Support System
Gory and Scott-Morton coined the phrase ‘DSS’ in 1971. DSS is Decision Support System. A system providing both problem solving and communications capabilities for semi structured problems. This system helps top management while making important decisions.
In other way, DSS is an interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions.
Marketing and sales is full of data and information departments. A manager needs to understand market in early situation. Other than competitive situations, marketing manager needs to analyze company’s own sales and performance. "Marketing Information System" – is specific DSS solution for marketer.
Marketing Information System
To understand MIS is easy as far as one is aware of marketing flow in reality. Just follow the below steps to understand this system.
What is marketing flow?
Firm lives in market environment. So firm needs to communicate market environment persistently.
Market generally communicates through market research or dealer surveys.

Through surveys firms get information from market, which is nothing but market intelligence.
Firm gets internal sale records from accounting departments or sales departments.
Thus there are three basic components in Marketing Information System: -
1. Accounting Information System
AIS provide periodic reports of sales, special reports of sales, mathematical models and knowledge-based models.
2. Market Research System
MRS provides primary and secondary data and information. Primary data is first hand information collected from market and secondary data is collected from other sources.
Example of Primary data: Survey, In-depth interview and Observation
Example of Secondary data: Statistical departments, Government Agencies, Publications etc.
3. Market Intelligence
It is well-processed and key information about market. It mainly represent economic and business environment.
Key actors for MIS
1. Market environment
2. Firm
Marketing information system is based on data collected from marketing environment and firm itself.
With respect to marketing environment, MIS stores data and information regarding political, economical, social, legal, competitors and channels.
MIS needs internal data and information from departments like production, sales, human resource and fiancé departments.
Models
To derive some decisions, data should be processed. A model is defined to process data and information.
Most common models of MIS
1. Time series sales modes
2. Analysis of Variance (ANOVA)
3. Linear programming
4. Regression and correlation models
5. Spreadsheet 'what if models
6. Brand switching models
7. Elasticity models (price, incomes, demand, supply, etc.)
8. Sensitivity analysis
9. Discounted cash flow
What does MIS do?
That is understood MIS answers semi-structured problems regarding market environment.
MIS provides strategies and solution with respect to product, price, promotion and place.
1. What is to produce?

2. What price is to be charged for a product?
3. How to promote your products?
4. Where to sale your products?
MIS helps marketer to draw product strategy, pricing strategy, promotion strategy and geographical marketing strategy under different circumstances.
As I said everything is data and information. Everything is stored, processed and retrieved.
Firm needs excellent IT infrastructure to create MIS. Data warehousing and data mining are crucial requirement under this infrastructure.
Example of MIS
Marketing Pilot is the first integrated marketing information system
It consolidates all of an organization’s marketing knowledge and provides collaborative tools to manage campaigns, events, projects, jobs, media, brands, products, digital assets, documents, collateral, budgets and expenses.
Visit www.marketingpilot.com for further information.
However enterprise solution providers are always present to provide related solutions.
Accenture, CA, Darwin partners, SAP, Oracle, Cognos, Siebel, Baan and SAS are solution providers in similar intelligence mining fields.
Conclusion.
System helps you to manage your business. Ultimately an entrepreneur needs to learn from everything. Any
DSS may help up to semi-structured problems.
Tom Landry said, "When you want to win a game, you have to teach. When you lose a game, you have to learn." Thus everything depends on marketer how fast he learns and unlearns from competitors, market and his own mistakes.