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The features of marketing information system are:

a) Inter related components: Marketing information system is a set of inter-related components. They consist of people, equipment, and procedures. Computer hardware, software, and information communication technology is used to design and deliver it.

b) Processing: Marketing information system collects, processes, analysis, stores, retrieves, and disseminates information for decision marketing and control. Its output consists of various reports.
c) Timeliness: Marketing information system provides right information to right people at right time. Information if received late has no use.

d) Accuracy: Marketing information system provides accurate and reliable information. Past and present information are more accurate than future forecasts. It also provides complete information.

e) Consistency: Market information system provides consistent information. All data is based on same definition, assumptions, and time period.

f) Accessibility: Market information system is easily accessible. The information is properly secured. But it is easily available to authorized persons. Information communication technology has facilitated accessibility. It also avoids information overload.

The marketing intelligence system provides information about everyday happenings in the marketing environment. It is based on environmental scanning.
The Sources of marketing intelligence are:

a) Marketing Managers: They read books, newspapers, and trade publications. They talk with customers, suppliers distributors and personnel within the organization to gather information.

b) Sale Force : They spot and report new developments in the market place. Organizations train and motivate them for marketing intelligence purposes.

c)Middlemen: They handle several products and usually know in advance about competitor's moves. They can provide vital market information.

d) Specialists:They are appointed to gather market intelligence. They even pose as "mystery shopper" to assess how employees treat customers or how compositors price their products.

e) Outsourcing: Commercial detectives are hired to gather specific information. Data can be purchased from research firms which specialize in supplying information at low cost.

f) Marketing Information Section: Organizations can establish a Marketing Information Section for marketing intelligence. It formally scans the environment to gather information. It also surfs
the internet to gather data.

This is the age of competition. Marketers must carefully identify and analyze their competitors. Competition can be in terms of brand, product-class, generic and geographic. Competition is a threat to the firm.

A competitor is a firm in the market selling a product which is perceived as substitutable by buyers. Competitor analysis describes the competitors, evaluates the competitors, and anticipates the future actions of competitors.
Sources of competition can be:

1. Lack of entry barriers: There are no entry barriers. This allows many firms to enter the market and deal in products which are substitutable.

2. New technologies: Research and development makes new production processes and technologies possible. They lead to product innovations. New products compete with old products.

3. Information technology: This has facilitated direct marketing through e-commerce. Internet and websites have increased competition.

4. Customer needs and preferences: Changing customer needs and preferences facilitate competition.

5. Environment forces: Changing environmental forces encourage competition. They can be political, legal, economic, and socio-cultural forces.
Competitor analysis helps marketing:
• Avoid surprises. It helps to identify opportunities of competitive advantage and avoid threats. Surprises are avoided. Better planning can be done.
• Gain competitive advantage. Competitive advantage can be gained over rivals by gaining knowledge of their strengths and weaknesses. Superior value can be provided to customers.

Research is systematic gathering of information. Marketing research is a systematic inquiry undertaken to help resolve a specific marketing problem. Its purpose is to guide marketing decisions by generating information. It provides alternatives for making the choice. It is a tool for identifying market opportunities to formulate market strategy and to minimize threats. It is problem-oriented.

Features of marketing research are:
a) Systematic: Marketing research is a systematic step-by-step process. It is properly planned and implemented.

b) Objective: Marketing research is unbiased. It is objective in collecting, analyzing, interpreting and reporting data.

c) Problem-oriented: Marketing research deals with specific marketing problems.

d) Decision Making: Marketing research helps make timely marketing decisions.

Most large organization have their own marketing research department. Small organizations can buy the services of outside marketing research firms. Organizations generally budget 1 to 2 percent of sales for research. The areas for marketing research are various in type.

There are six stages in the organization buying process:

4. Proposal Evaluation : Proposals are invited from suppliers. They can be based on
competitive bidding. Tenders and quotations may be used. They also can be separated into
technical proposal and financial proposal. The proposals are evaluated to determine
whether the products meet performance specifications. Suppliers are evaluated for
capability, and service. Committees may be used for evaluation.
5. Purchase Decision: The supplier is selected. Negotiations are made. An order is placed.
Several suppliers may also be used. Specific details regarding terms of sale, credit
arrangement and technical services are worked out.

6.Post-purchase Behavior: The performance of product and supplier is evaluated at this
stage. Actual performance is compared with specifications. If the performance is not
satisfactory, repeat orders are not placed with the supplier.

Marketers need to understand buyer behavior at each stage of the organizational buying
process.

Organizational behavior refers to the to the buying behavior of organizations that buy products for business use, resell or to make other products.

Organizations consist of business, industries, retailers, government, and non-government organizations.

The supplier driven Nepalese market generally practiced mass marketing approach with product variations in the past. The socio-economic changes and developments in transport and communication system have made Nepalese marketers conscious of market segmentation. The marketing strategies of global organizations like Coca Cola, Pepsi, Nepal Lever and Standard Chartered Bank have reinforced this consciousness.

The following points describe the practices of market segmentation in Nepal.

1: Non-systematic: Segmentation is generally not based on systematic market research. Past experiences, hunches of management, and competitor's strategy have influenced segmentation.

2: Variables for Segmentation: The variables mostly used for consumer market segmentation are:

3: Lack of Information: Nepalese marketers lack comprehensive information about consumer characteristics. They tend to regard marketing research as a "wasteful cost". This has constrained the effective evaluation of market segments in terms of their attractiveness and appropriateness. Risks are not properly assessed.

4: Government Policies: Government policies in Nepal are not very supprotive of marketing. They do not regard businessmen as partners for development. Restrictions of movement of goods and controls have discouraged market segmentation.

5: Lack of Ethical Considerations: Environmental and welfare considerations are generally disregarded for market segmentation in Nepal.

The above points clearly indicate that the concept of market segmentation is at an initial stage in Nepal. However, the importance of market segmentation is likely to increase in the years to come.

Consumers make decisions. Their buying decisions are influenced by economic, personal, psychological and socio-cultural factors.

Economic factors that affect buying decisions. They consist of:

a) Level of income: The ability to spend is determined by the level of disposable income. Choice of income-sensitive products is very much dependent on income level.

b) Liquid Assets: Consumers who do not have regular income may possess liquid assets like gold and shares. They provide spending power to the consumers.

c) Savings, Debt and Credit Availability: They all affect consumer expenditure levels. High savings result in lower interest rates. Credit availability by bank becomes cheaper through lower interest rates. This increases the level of consumer spending.

d) Attitude Toward Spending: Negative attitude toward spending adversely affects the willingness of the consumers to spend. This influences the product choice.

e) Economic Conditions: The stage of economic development, inflation and business cycles affect consumer's willingness to spend. Prosperity is good and recession is bad for marketing. Health of the economy affects consumer behavior.

Personal factors consist of:

a) Age: Consumers buy different products according to age group. Their taste in food, clothes, and recreation is age-related. Young consumers like to experiment new products. Older consumers prefer brand loyalty.

b) Gender: Male and female exhibit differences in buying behavior. Their needs also vary.

c) Family size and family life cycle: Family size determines the level of expenditure and product choice. Buying decisions in larger families favour brand loyalty.

The family life cycle influences spending patterns. Product interests differ according to the stage in family life cycle consisting of singles, bachelors, married, married with children and old.

d) Occupation: Occupation influences consumption pattern. Factory worker buy work clothes. Bank managers buy expensive suits. Professional people dress properly.

Segmentation variables are used for dividing a total market into segments. Selecting appropriate variable is an important decision of marketing segmentation.

Consumer market consists of individual and households. They are ultimate consumers. The reasons for buying products are personal use or household use. Most products in consumer market are branded. Marketing is targeted at segments of consumer. The product is backed by attractive packaging and promotion. After sales services are provided.

The characteristics of consumer market are:
a) Focus: The focus of the market is individual and households. They are carefully targeted. They are carefully targeted. They are geographically dispersed.

b) Consumption: The consumers buy products for individual or household uses. They consume the products to satisfy their needs. The demand is generally elastic.

c) Branding: The products have a brand image. They are creatively positioned in the market.

d) Packaging: The product is attractive packaged.

e) Promotion: The product is backed by distribution networks, promotion and reliable after-sales services.

f) Demand: The consumers buy products in small volume.

g) Emotion: Most buying is emotional by consumers. They buy if they like.

Segmentation is based on:
a) Single variable segmentation: Only one variable is used to segment the total market. For example income.
b) Multi-variable segmentation: More than one variable is used to segment the total market. For example income and gender.

Segmentation variables for consumer markets can be:

Market segmentation should not be based on guesses and hunches. It should be a systematic process consisting of the following steps.

1. Market Survey/ information Collection: Segmentation requires a thorough investigation of the total market characteristics. Marketing survey is conducted for this purpose. Information is collected on the following aspects:

2. Segment Identification: Detailed analysis of the information collected from the market survey is done. Appropriate statistical tools are used to make the analysis.

Factors affecting product demand are classified into major and minor factors. The major factors are further analyzed in relation to: i) buyer need, ii) buyer characteristics.

Homogeneous groups of customers are clustered to identify segments. Cluster analysis tool can be used for this purpose.

3. Segment Profiling: The variables for segmentation are identified. They can be geographic, demographic, psycho graphic, and behavioural. They vary according to the type of market.

Each segment is profiled in terms of similarities and dissimilarities in demand and characteristics of customer groups. When this process is completed, the organization has identified segments. They represent micro markets.

4. Segment Selection: From different segments, Organization select one or more segments after careful evaluation. The chosen segments become target market.

5. Product Positioning: Last process of market segmentation is product positioning. Positioning is a new thinking in marketing. Marketers should position and reposition their products to satisfy the needs of the customers. Each product should be distinctively positioned in the mind of consumers.

The requirements for effective market segmentation are as follows:

a) Measurable: The size, needs, purchasing power, and characteristics of the customers in the segment should be measurable. Quantification should be possible.

b) Divisible: The segments should be differentiable. There must be clear-cut basis for dividing customers into meaningful homogeneous groups. They should respond differently to different marketing mixes. There should be differences in buyer's needs, characteristics and behaviour for dividing in groups.

c) Accessible: The segment should be reachable and serviceable. It should be accessible through existing marketing institutions, such as distribution channels, advertising media and sales force. There should be middlemen to distribute the products.

d) Substantial: The segment should be substantial. It should be large enough in terms of customers and profit potential. IT should justify the costs of developing a separate marketing mix.

e) Actionable: It should be actionable for marketing purposes. Organizations should be able to design and implement the marketing mix to serve the chosen segment.

We know that, there are different sorts of market segmentation. Some of them are described as follows:
1. Target Marketing:
The total market is viewed as consisting of heterogeneous customer groups. They have various characteristics. The market is divided into major market segments. One or more of those segments are selected as target. Marketing mix is tailored to each segment. This is based on new marketing concept.

2. Niche Marketing :
A niche is a more narrowly defined group of customers. It is identified by dividing a segment into sub-segments. Marketing mix is tailored to the niche. Niches are fairly small groups whose needs have not been well served. They are willing to pay higher prices.

3. Local Marketing:
The marketing mix is tailored to the needs and wants of local customer groups. They can be localities or stored in local area. For example, New road in Kathmandu Nepal.

4. Customized Marketing:
The market is viewed as consisting of individuals with distinct needs and characteristics. Marketing mix is tailored to each individual. Tailor-made clothes and individually designed houses are examples. Business-to-business marketing is largely customized. This is based on customer concept of marketing.

The market is viewed as consisting of individuals with distinct needs and characteristics. Marketing mix is tailored to each individual. Tailor-made clothes are individually designed houses are examples. Business-to-business marketing is largely customized. This is based on customer concept of marketing.

A Market consists of customers. They have needs to satisfy, money to spend and willingness to buy products. No product can satisfy the needs of all the customers in the market. Customers vary in needs, characteristics, buying behaviour, purchasing power and preferences.

Market can be divided in following manners:
1. Consumer Markets: The reasons for buying products are own personal or household use. They consist of ultimate consumers. Most products are branded for this market.

2. Business Markets: The reasons for buying products are business use, resell, or to make other products. They consist of industries, business, retailers, etc. Buying is done by professionals.

Market segmentation is the process of dividing the total market into large homogeneous groups of customers who share similar needs and characteristics.

Segmentation implies:

We know that, quality is perception of customers towards products either it is good or excellent. Product should be good in quality. Then it can attracts to the customer globally. So that, organization should produce quality products for establishment in the competitive world. It is necessary in a organization. And here is some requirements for total quality marketing:

Quality is perception of product excellence by customers to satisfy needs. Improving product quality has become a top priority for marketing. There is an intimate connection between total quality marketing and profitability. Total quality marketing leads to customer satisfaction. Customer satisfaction leads to profit achievement by the organization.

The dimensions of quality can be:

Quality is the totality of features and characteristics of a product that bear on its ability to satisfy needs.

Total quality marketing refers to the adoption of total quality management (TQM) concept for marketing. It serves as the key to value creation and customer satisfaction.

Total quality management is continuously improving products quality through everyone's commitment and involvement to satisfy customer needs.

In Marketing, relationship management is very much essential. Because no tasks of marketing can be done without good relation with related sectors. Here are some strategies to build relationship in marketing:

1. Quality Assurance:
Marketers promise and deliver high quality products at fair prices to customers. This promotes long term loyalty and relationships. Consistence and conformance to standards if ensured for quality.

2. Economic Benefits (Financial Benefits):
Strong economic ties are built with customers. This can take the form of:
a) Frequency marketing programme: Key customers who buy frequently are given attractive discounts and rewards. Generally 20% of customers account for 80% of the sales.

b) Club Membership Programmes: Club membership is given to customers. Attractive discounts and other benefits are given to the members. Book club is an example.

3. Social Benefits:
Organizations increase social bonds with customers by:
a) Individualizing and personalizing customer relationship. They provide social recognition to the customer.

b) Organizing customer get together to meet and enjoy each other.

4. Technical Benefits:
Organizations develop technical ties with their key customers. Such ties are mostly technology based. They help the customer to better manage their marketing efforts. They can be:

Relationship management involves customer development. So that, customer development and relationship management have close relation with each other. The customer development process consists of the following steps:

- Prospects: People who have interest in the product and ability to pay for it; they are likely to buy the product.
-First Time Customers: Prospects who buy a product for the first time. They can be defectors from other brands.
- Repeat Customers: First time customers who repeatedly buy the product. They experienced satisfaction with first time purchase.
-Clients: Repeat customers who are treated specially and knowledgeably by the organization. They are loyal and satisfied customers.
-Members: Clients who join membership programme to take advantage of benefits.
-Advocates: Members who enthusiastically recommend the organization and its products to others.
-Partners: Advocates and the organization work together activity for mutual benefits.

Relationship management aims to convert the prospects into partners. It is partnership marketing where organizations and customers work together to discover ways to build mutually satisfying relations.

Relationship management has been driven by technology, especially the web technology based on internet. Investment in time and money to build customer database is also important for relationship management.