Benefits of Marketing Information System in the Banking Business

Marketing information system (MKIS) is a form of Management Information System (MIS) that can be found in an organisation. It provides information for managers to take decisions regarding marketing.

(Crawford, 1997) defined Marketing Information System as “a continuing and interacting structure of people, equipment and procedures to gather, sort, analyse, evaluate, and distribute pertinent, timely and accurate information for use by marketing decision makers to improve their marketing planning, implementation, and control”.

Internal data, competitive intelligence, and marketing research are the kind of marketing information that managers require in other to make informed marketing decisions (Lumen, 2016)

The components of a Marketing Information System (MKIS) are Internal Records, Marketing Intelligence System, Marketing Research and Marketing Decision Support System (Business Jargons, 2019).

Benefits of MKIS

MKIS has so many benefits to businesses in the banking or financial services sector:

  • Customer Relationship Management (CRM)

Customer relationship management is the “process of carefully managing detailed information about individual customers and all customer touch points to maximize loyalty” (Kotler & Keller, 2012). CRM is used to reinforce the regulatory compliance requirement of most banks in terms of KYC – Know Your Customer. CRM systems available in the market today to manage bank customer information are Microsoft Dynamic CRM, Sugar CRM, vTiger CRM, etc.

  • Business Origination

MKIS can help banks handle the business origination process encompassing prospecting, structuring and risk assessment to be done efficiently and effectively. The records of how every business originates from the marketing point are kept in the MKIS.

  • Market Competitiveness

Internal organisation pressure coupled with external competitiveness pressure which makes MKIS inevitable would benefit the organized in terms of improvement in planning, decision making, sales forecasting, service usage and information retrieval (James & Leigh, 1988).  A firm can leverage information technology to have KMIS as strategic tool for managers to create and sustain competitive advantage (Colgate, 1998).

References

  1. Business Jargons (2019). Marketing Information System. Retrieved 10 February, 2019, from https://courses.lumenlearning.com/marketing-spring2016/chapter/reading-types-of-marketing-information/
  2. Colgate, M. (1998). Creating sustainable competitive advantage through marketing information system technology: a triangulation methodology within the banking industry. The International Journal of Bank Marketing; Bradford, 16(2), 80-89.
  3. Crawford, I.M. (1997). Marketing Research and Information Systems. Rome, Italy: Food and Agriculture Organization of the United Nations.
  4. James, W.M. & Leigh, S. (1988). Marketing Information Systems in the Major UK Banks. International Journal of Bank Marketing, 6(4), 14-28. doi: 10.1108/eb010840
  5. Kotler, P. & Keller, K.L. (2012). Marketing Management (14th ed.). New Jersey, US: sPrentice Hall.
  6. Lumen (2016). Principles of Marketing. Retrieved 10 February, 2019, from https://courses.lumenlearning.com/marketing-spring2016/chapter/reading-types-of-marketing-information/

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