MEASURING THE EFFECTIVENESS OF MARKETING INFORMATION SYSTEMS

GROUP MEMBERS
LAU CHENG SHYANG

AH100236 AH100245 AH100247 AH100249

NASILAH BTE BUHERA NOOR AMALINA BTE AHMAD MALIKI NOORAIN BTE MOHAMED NOR

NORHILDAYU BTE MOHD MORTAR

ROSMANIZA BTE AHMAD TOH YONG SENG YONG SHEIH YIIN

AH100250
AH100254 AH100259 AH100260

1.OBJECTVE

2.STRENGTHS
3.WEAKNESSES 4.LESSONS

OBJECTVE

design and empirically validate an instrument for measuring the effectivenes s of an marketing information system (MKIS).

improvements & he support of marketing staff. achieve of better customer knowledge and market responsiveness internal and external core dimensions of MkIS effectiveness will be highly interrelated The proposed measure of MkIS effectiveness can explain a significant amount of the variance in organizational effectiveness.

OBJECTIVE

design and empirically validate an instrument for measuring the effectiveness of marketing information system (MKIS) MKIS designed to solve many of the problems

Procedural improvements and the support of marketing staff

The sub-section External dimensions of MkIS effectiveness identifies a second important aspect of MkIS effectiveness: the extent to which the system contributes to the improvement of the companys external operations. Accordingly, a second research proposition is advanced for investigation.

The achievement of better customer knowledge and market responsiveness

The literature reviewed in the sub-section Interrelationships among internal and external dimensions of MkIS effectiveness
shows that management must maintain control over the necessary organizational re-engineering in response to the changes accompanying implementation of the MkIS while concurrently fostering the organizational openness and decentralized decision making that encourage staff to take initiatives. Thus, a third research proposition is advanced for investigation.

The internal and external core dimensions of MkIS effectiveness will be highly interrelated
The sub-section of the review relating to concurrent validity suggests that an effective MkIS will have an impact on all four aspects of organizational effectiveness. Hence, any measure for assessing the effectiveness of a MkIS should be able to explain a significant amount of variation in organizational effectiveness.

The proposed measure of MkIS effectiveness can explain a significant amount of the variance in organizational effectiveness

Confirmation of significant amount of the variance in organizational effectiveness will provide evidence of the proposed measuring instruments concurrent validity

STRENGTHS

Systematic procedure
Abstract Introduction Literature review Internal & external dimension of MKIS effectiveness Interrelationships among internal and external dimensions of MKIS effectiveness MKIS and organizational effectiveness : concurrent validity Methodology Data collection Data analysis Discussion References

improve performance of Customer Relationship Management (CRM)

CRM consists of sophisticated software and analytical tools that integrate customer information from all sources, analyse it in depth, and apply the results to build strong customer relationship. It can build a well-defined picture of customers needs

Improve in the reporting system

The Information processing becomes faster and the companys management is able to relate pertinent information from different sources within the organization. Such information would be almost impossible to bring together in a meaningfully and integrated fashion without the necessary IT infrastructure. The purpose of MkIS applications is to integrate inputs from various organizational functions into a holistic and meaningful map of companys activities, depicting its interactions with suppliers, customers, and so on.

The ability to monitor a companys market environment more effectively, specifically with respect to customer relations, and thus to assist managers and salespeople in meeting their marketing objectives.
These ability make organization better understands the needs and wants of the customers it target, which in turn allows it to respond more effectively to their expectations. This is because a clear marketing strategy and the necessary intelligence support from IT allows it not simply to monitor transaction but, more importantly, to understand the individual behind the transaction.

Developing marketing plans

Monitor a companys market environment more effectively, specifically with respect to customer relations, and thus to assist managers and salespeople in meeting their marketing objectives

Discussed marketing intelligence system - MKIS to impact on decision making and the designing of formal marketing plans and programmes. Improving the effectiveness and the efficiency of the marketing and communication efforts.
Having identified this significant gap in the literature, this study set out to contribute to its resolution by examining and empirically validating an instrument to capture the notion of effectiveness in an MKIS.

Improve functional ( department) effectiveness

Information processing becomes faster and the companys management is able to relate pertinent information Improvement of job descriptions and the nature of the tasks that marketing employees must accomplish

Encouraging decentralized decision making

Ability to innovate implementing such changes requires that the management retains control over the organizational reengineering that these changes bring about while, at the same time, promoting openness and encouraging employees to take initiatives by encouraging decentralized decision making. Apparently straightforward construct is in fact fairly complex, because it is difficult to systematize the effect of the systems on the entity of the organization and its operations.

Increasing company profitability

Improvements in the implementation of the marketing strategy is increased company profitability.

Support a significant correlation between the adoption of MkIS systems and the companys profitability to reduce operational cost by increasing productivity and the efficiency of employees and managers use of their time.

Improve the communication

IT-based MkIS can help to improve internal communication between colleagues in the marketing department and other functional units alike, since communication becomes easier and faster and also reducing the scope for conflict between employees and managers

Better knowing characteristics of customer

Market-orientation research stream improves the companys ability to align its outcome according to the conditions of its market and to become more effective in determining customers needs and preferences.

Handle customer reception and service-related operations more smoothly and to cope more effectively with peaks and troughs in demand so the company can always fullfil customer demand. Customer relationship management (CRM) will keep all customers information and able the company to target promotions to likely buyers, facilitate sales efforts, and deliver better customer service.

WEAKNESSES

Limitation of the study

The sample size is too small. This case has not been free of limitation. It limit the generalization of our findings to other sectors. Research only focus on singleindustry and single-country.

Figure
If the reader have no knowledge in statistics cannot understand the figure using in measure effectiveness of MKIS. There is no concrete figure for the outcome of analyzing process.

Reliability of the information

The data collected from a broader study of fivestars hotels in Greece. Data being collected and analyze at around April 2006 - May 2007. We have to update the following information.

Limited data sources

The article do not mention about : On-line analytical processing (OLAP) Data mining Geographical information systems (GIS)

These 3 tools access large databases to help the company to make decision.

LESSONS

i. consider various elements of effectiveness when measuring effectiveness of a system ii. Concerning the interrelationships among the distinct dimensions of an MKIS iii. IT based system have important implications for Marketing managers iv. IT-based MKIS can give strategic impact of the company that used this system

I. We need to consider various elements of effectiveness when measuring the effectiveness of a system.

The improvement in responsiveness to customers not only translates into more efficient operations but also reduces the friction between front-office and backoffice service providers

ii. Concerning the interrelationships among the distinct dimensions of an MKIS

MKIS have an impact on both the internal and external dimensions. Internal dimensions of MKIS effectiveness improve company internal operation. External dimensions of MKIS effectiveness allow company monitor its market environment more easier.

iii. This study also have important implications for Marketing managers who implement IT-based systems, and for those who design and supply them.

Can help users to approach the specification and effectiveness of their MKIS in a more specific and more holistic manner. For instance : CRM

IT-based MKIS can give strategic impact of the company that used this system IT-based MKIS can have on their customers operations will allow them to increase the value of their products and services, and their product differentiation. The imperative is to develop an integrated value proposition, and to be able to explain how it can contribute to the overall competitiveness of a potential customer.

Thank You