Development of a Model for Marketing Information System (MkIS) for Small and Medium Enterprises (SMEs) in Punjab

Abstract

Marketing Information System (MkIS) is a set of procedures and methods designed to generate, analyze, disseminate, and store anticipated marketing decision information on a regular, continuous basis. Small and Medium Enterprises (SMEs) today constitute a very important segment of the Indian economy and has emerged as a dynamic and vibrant sector of the economy. The major advantage of the sector is its employment potential at low capital cost. MkIS provides correct and timely information, with the aim of supporting SMEs for decision-making purposes. The main objective of the study is to develop an MkIS model for the SMEs of Punjab. The study identifies the critical factors for the development of MkIS Model which include MkIS Design Characteristics, Capabilities of MkIS, Primary Characteristics of MkIS and MkIS Sophistication. Further success and hindrance factors are also analyzed for the implementation of MkIS Model. A survey is conducted for 140 selected SMEs of Punjab. Regarding the Nature of Industry in the sample out of total 140 firms there are 30 firms producing Cutting Tools, 50 producing Sports Goods and 60 producing Bicycle Components and firm-wise sample has 124 small enterprises and 16 medium enterprises respectively. Punjab is a progressive state of India with an average growth rate of 10 per cent. Punjab has been ranked as one of the growing states of India, (India Today, 2011). The study also covers detailed case study for the factors of MkIS from selected manufacturing SMEs namely Super Hobs, Super Tools, Padmawati Manufacturing, Dolphin Impex, Appu International and Omega International respectively. The basic reason for selecting these firms has been that they are all exporters and specializing in selective products. Analysis has been conducted for determining the predictors of MkIS success factors for three sectors, i.e., cutting tools, sports goods and bicycle components and two categories of firms, i.e., small enterprise and medium enterprise. Success factors have been taken as the dependent variable for the development of an MkIS Model for SMEs and the independent variables for the study have been MkIS Design Characteristics, Capabilities of MkIS, Primary Characteristics of MkIS, Hindrance Factors of MkIS and MkIS Sophistication. MkIS has a basic potential capability to quickly meet new needs of information. MkIS is conceived as a data processing and not as information processing system has emerged as critical hindrance factor reported by small enterprises. In terms of design characteristics of MkIS sample firms have given high priority to accurate information and timely information. Analysis of data which has an ability to make recommendations as an aid to decision making has gained the highest preference in case of capabilities of MkIS. Sector-wise results and scale-wise analysis yielded that in terms of primary characteristics of MkIS, Windows 98/2000 as an operating system, e-mail as an internet and Word as an application found preference. Meeting customer needs has the highest priority in MkIS sophistication. The regression model results with success factors of MkIS as dependent variable and Critical factors, viz. Design characteristics, capabilities of MkIS, Primary characteristics, hindrance factors, and MkIS sophistication as independent variable yielded that 49 percent of variation has been explained by these variables. In the end on the basis of inputs of survey based results and the case study analysis, a framework of MkIS model has been presented with top prioritized factors of each Critical Factors of MkIS based on synthesis of survey based results of 140 SMEs and case study analysis of six firms The framework highlights the areas where SMEs need to focus for overall Success of MkIS Model.