what is it and how to use it? – WAU
Learn from this article what the Marketing Information System is, what it is different from marketing research and how to use it in your company!
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Currently, the number of information collected from companies in all segments – regardless of size – is immense.
The proper use of this data can offer different benefits to your company!
And to help you get it right, there is the Marketing Information System, or just, YES.
SIM is a system that involves processes, people and equipment, with the objective of collect, select and analyze information and pass them on to the marketing people so they can make more assertive decisions.
This description, by Philip Kotler, is still one of the most used to understand the concept of YES.
Simply put, it is the data – internal and external – that can be analyzed and systematized in order to help the marketing manager to be more clear in making decisions in the area.
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What is the difference between SIM and marketing research?
To better understand what SIM is, it is necessary to know what it is not.
The confusion between marketing systems and marketing research is frequent, but the two are quite different.
SIM has a much broader reach than marketing research.
Some of the features that make them different are:
- SIM involves internal and external data, while marketing research uses only external data;
- While the research aims to solve problems, the system involves prevention and solution using Bid Data;
- The SIM does not have an end, it is a cycle, while the research is focused on temporally limited projects;
- The purpose of SIM is to use information passed on to determine future trends, the research aims to understand past trends;
- Marketing research is part of SIM, but it also involves other subsystems.
Thus, we can understand that the main difference between these two marketing resources is that marketing research has a more limited character.
SIM, on the other hand, works as an operating mechanism for the company itself, which, in partnership with various areas, provides more strategic decisions based on data analysis.
What is the importance for marketing strategies?
Currently, when becoming a customer of a company, the customer does not create expectations only in relation to the product or service, but also about the whole process of discovering that solution (sales funnel).
The information he had access to, from customer service and after sales, influences this journey, so that the SIM must capture the information of all these stages.
The marketing system involves not only collecting this information, but also systematizing it.
Data, apparently random and disconnected, are worked on and used to understand a particular buying behavior or market trend.
This is only possible when they are analyzed correctly and also made available to the professional trained to interpret this data and transform them into decisions.
The marketing information system allows the company to integrate the monitoring of information with the development and implementation of new strategies for the business, allowing for a more conscious and healthy growth.
How to use the SIM?
To start the marketing information system in a company, it is necessary to know better which elements make up the strategy.
First, it must be kept in mind that, over the years, several SIM models and tools have been developed that make it possible and accessible.
What is the main structure?
The marketing information system developed by Robert Harmon in 2003, for example, considers that the main structure must be composed of four elements:
1. User interfaces
It consists in the choice of the interface that will be used by managers to analyze the information, after systematization.
The design adopted must take into account the profile of managers and their training so that the information presented is interpreted correctly.
It is the choice of the software or program that will be used to perform the necessary steps of data collection, analysis and management, so that they can be effectively used in decision making;
The database is a central part of the SIM, consisting of the location and format in which the data will be organized and stored.
This aspect will be presented in more detail below.
4. System support
SIM requires specialized professionals who will be responsible for both the software and the hardware of the system.
With these four elements it is possible to develop and implement the SIM in a company, but the system will only reach the goals set initially if it involves the different sectors of the company.
The data collected must be consistent with the reality of each sector, in addition to involving organizational policies, corporate identity adopted in the company and the appropriate training of professionals.
What should it contain in the database?
One of the factors underlying the SIM is the database.
In the case of a marketing information system, new data must enter the system periodically in a way that keeps the information up to date.
Using very old data to predict market trends will not only be wrong, but it can also lead to bad decisions for the company.
Just like the SIM models themselves, a company’s database can vary according to the segment in which it operates, the size of the company, the internal sectors, etc. However, some traditional models indicate some sources of information input, how:
- Internal database, such as, sales information, data on product lines, information on advertising and marketing campaigns, etc .;
- Competitor information, including prices, promotions and advertising;
- Internal reports from different areas that assist in understanding problems and the possibility of solution;
- Updated customer database and knowledge of the target audience;
- Company news and releases;
- Specialized bibliography, etc.
Database and digital marketing strategies
Currently, in addition to all this range of information that can be acquired about the company, digital marketing strategies are increasingly aligned with the SIM model, since most of them tend to provide a series of information from leads and customers.
Social media has, for some years now, been an immense source for gathering information on consumer behavior.
In media such as Facebook, Instagram, Twitter, YouTube and others, the targeting of advertising campaigns, sponsored links and even organic publications, occurs according to the actions that the user has on social media and the trends that he presents.
Companies can use this space both for customer service, as well as for the dissemination and collection of information that allows to identify in more detail the profile of the target audience, preferences, etc.
The opportunities are so vast that it is possible to determine at what times the public is most online, through which platform they access digital media and also how long they stay online.
All of this data helps the company to have a more realistic understanding of the public and trends.
Website and blog
Another place that should not fail to be monitored and the information analyzed is the company’s website.
Through the tracking tools, it is possible to determine which actions are most common, the most accessed pages, the most viewed contents and other data that allow the company to identify the public’s behavior and preferences.
In addition to monitoring, it is also possible to use data analysis to create more complete and relevant content for the target audience, the strategy is known as Data Content Marketing.
In addition to the indirect ways of acquiring useful information, converting visitors into leads is another mechanism that expands opportunities to update the company’s database.
Through the data provided by the leads, it is possible to systematize and understand many of the customer’s actions, as well as product limitations, flawed points in the sales processes and growth opportunities.
With the great adherence to digital marketing, the marketing information system has become an accessible reality for any company.
Digital marketing, through richer metrics, such as KPIs, allows the company to also have a deeper knowledge of its own data and processes, as well as the information obtained with CRMs.
What are the advantages and limitations of the strategy?
To make it possible to really impact a company’s decision making, SIM makes a series of changes in the business’s own organizational structure.
This generates a series of benefits, among which we can highlight:
Through SIM, the company will have more efficient data collection mechanisms and processes, resulting in higher quality data.
Since it includes internal and external processes, SIM enables a broader view of the market, allowing the analysis of isolated events, as well as trends for the segment as a whole.
Not only does data collection become more efficient, but the adoption of a database will allow better organization of information, systematization and also the analysis of these results.
It also allows you to store data from different periods, increasing the ability to understand the market and the different cycles.
Among the objectives of the SIM, the ability to predict trends and, thus, problems, also stands out.
Among the situations that can be avoided by this feature include stock limitations, necessary logistical changes and others.
Analysis and planning
With a series of information available, the marketing information system allows detailed analysis to support the company’s planning.
Whether with regard to products or services, but also service, online presence, marketing strategies, budgeting, organizational structure and other relevant aspects of a business.
More efficient decision-making
The maximum objective of SIM is to assist in the company’s decision-making process, making it more efficient and assertive by offering the manager the most relevant information.
In times of crisis, the SIM can be decisive to indicate alternative solutions for a business.
However, in normal periods it also provides relevant information to maintain the company’s stability.
Among the limitations of the SIM, the risks of mistaken analyzes stand out, especially when the database does not have the correct information for the segment.
In such cases, it is indicated that the data entered in the system be evaluated and that there is an effort in the company so that the system is constantly updated.
How to adopt SIM in my company?
To start a marketing information system in a company, it is necessary to evaluate three important elements:
- If the company already has a database or if it will need to start from scratch;
- If the organizational culture offers autonomy and preparation for the area managers;
- The feasibility of hiring a specialized company to offer the necessary initial support.
All these aspects are essential for the SIM to achieve the results desired by the company and can be used effectively by the different sectors, allowing all areas to benefit from the tools and knowledge provided by the adoption of the strategies.
Do you want to expand your marketing knowledge to adopt it in your company? Get started now with our guide to getting started in digital marketing!