Effectiveness of Marketing Information System at TUI Group: Report

This report provides a comprehensive analysis of the Marketing Information System (MIS) employed by TUI Group, a leading travel and tourism company. It delves into the various components of the MIS, including internal records, marketing intelligence systems, marketing research, and marketing decision support systems, detailing how TUI utilizes each to gather, analyze, and utilize market information. The report evaluates the effectiveness of TUI's MIS, highlighting its advantages such as improved marketing strategies, customer insights, and efficient decision-making, while also addressing drawbacks like high costs and data security concerns. Furthermore, the report explores the reasons behind the system's effectiveness, emphasizing TUI's strategic shift towards an integrated holiday experience provider, its use of digital risk management tools, and its focus on customer relationship management. The report concludes by summarizing the benefits of implementing the MIS for TUI, including its contribution to the company's growth and competitive advantage in the tourism industry.

Marketing
Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
The use of components of Marketing Information System by the company-..................................1
Evaluation of the effectiveness of Marketing Information System by the company.......................2
Reasons for the effectiveness of MIS for the company...................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The Marketing Information System is the systematic collection, analysis, storage and
circulation of the market information from both the internal and internal and external sources to
the marketers on a regular and timely basis. In simple words the marketing information system
provides information to the marketers so that they can make decisions related to the marketing
information. The components of the marketing information system includes Internal records,
Marketing Intelligence System, Marketing Research and Marketing Decision Support
System(Fahmi and et.al., 2019).
The report will study the Marketing Information System of TUI Group is an Anglo-
German travel and tourism company headquartered in Hannover, Germany. The company owns
six European airlines and is the largest holiday fleet in Europe and has the revenue of €19,523.9
million.
The use of components of Marketing Information System by the company-
The following are the components of MIS and its uses by TUI Group-
Internal Records- TUI Group collects the information from its internal records that consists its
sales data, customer database, product and packages database as well financial databases etc.
This data is collected through the optimized IT software that the company uses to maintain the
entire database of the business. The company manages all its sales data through the use of
integrated software which helps the marketing team of the company to use the information and
plan out their future sales strategy for the business. The data regarding the customer information,
package information growth and decline in sales etc. an all sort of data is being stored in the
computer system and then being converted into meaningful information by the statistical experts
of the company in the form of facts and figures so the marketers get the complete overview of
the company activities in order to plan out their strategies(Khraim and et.al., 2015).
Marketing Intelligence System- As discussed above TUI Group is a service industry and
leading tourism industry as well. In case of service industry it is much important for the company
to serve its customers and satisfy them to grater extent. TUI uses marketing intelligence system
to collect the market data, the changing market trends, as well as the change in customer's
demands and preference to that of tourism and also the strategies of competitors related to the
price and new package offerings etc are being collected by the company through various
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activities. The company provides efficient training and motivate their marketing employees to
monitor the market trend that includes the changing habits and concern of the customers and turn
up their strategies according to the required demand of the customers. TUI also undertakes the
customers feedback via feedback form and online review for their services in order to find out
the improvements in the service and the packages offered by the company(Mandal, 2018).
Marketing Research- Marketing research comprises of the collection of data as well as analysis
and interpretation of the primary or secondary data in order to find out solutions to the marketing
problems. TUI conducts marketing research to find out the current trends, demands as well as the
effectiveness of the services offered by them to the customers. This is done through methods
such as questionnaire, surveys etc., where the company executives asks the related questions to
the current trend as well as their suggestion and review regarding the company services to find
out whether the service provided is effective and what all improvements can be made.
Marketing Decision Support System- It refers to the software or programs that can be used by the
marketers to analyze and collect the data and further in taking decisions related to it. With the
rise in the use of the internet and advancement of technology TUI has also adopted the online
platform as well as the use of software to collect, store and analyze the data and convert it into
meaningful information and also initiate the decision making process through it. The company
uses the latest technology software to take the decisions which is based on the calculation of
facts and figures of the past and current data from the market and within the organization(Li and
et.al., 2017).
Evaluation of the effectiveness of Marketing Information System by the
company
Marketing information system has proven to be more effective posing many of the
advantages to TUI company. The main advantage the company gains is that the company is able
to make and compose the coordinated and effective marketing plan and strategy in order to
ensure maximum sales and customer satisfaction. The company is able to get various kinds of
information regarding the customer habits and demands and also regarding the competitors
pricing and strategies in the market. Further the company is been able to make the appropriate
decision on the basis of the calculated information and also MIS has lead to the speedy decision
making by the company. Also The concept of MIS has helped the company to face the
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competition without any complication and threats from its rivals. MIS have also helped TUI
company to make a large customer base of 23 million customers in their Airline services.
On the other side there are various drawbacks and problems that have arise for TUI
Group in case of Marketing Information System. The cost of conducting such activities is too
high and affected towards the company's huge investment in MIS which have also affected
towards the profitability of the company. Along with the setup cost and the operational cost, the
maintenance cost for Marketing Information System has also created the financial burden on the
company(Mishulin and 2016). Another thing that comes on the negative side is the security of
the data collected and the data related to the customer information and finance. There is an
always an obstacle regarding the data security as the huge data can be lost or manipulated. One
more thing can be added to the drawback is that there is requirement of more skilled workforce
to perform these activities which is not mostly available and the company has to incur high
training cost for developing the skills of its employees.
Thus it can be observed regarding the various Advantages and disadvantages of
Marketing Information system that the company has faced. Mostly the positive side can be seen
more and the negative side can be improved by initiating several measures such as data security
and encryption, training and development of employees and increasing the sales turnover to
cover-up the maintenance cost of the system(Martell, 2018).
Reasons for the effectiveness of MIS for the company
Yes it can be observed that the Marketing Information System is effective to TUI Group
and has benefited the company to greater extent. Application of Marketing Information System
into their business has initiated the company's growth and expansion in the tourism sector and
helped in many ways that benefited the company activities. The reasons are as follows-
 TUI has strategically moved away from the traditional tour operator model and developed
into an integrated provider for Holiday Experiences.
 The digitalised risk management tools used by the company has help them to make 23
million customers through markets and airlines.
 The company has been offering service by providing 150 k excursion and activities to its
customers.
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 The Group platform initiatives of the company using IT and digitalised software has
enabled the company in maintaining better customer relationship.
 TUI has built up the fully digitalised Destination experiences business and has started
operating in 49 countries in the year 2019.
 TUI has expanded its business and now it operates 380 hotels and 16 cruise ships through
ownership, Joint Ventures, lease and franchise contracts and has established strong
position in the market for tourism industry.
 The company has been consistently offering high quality end-to-end customer experience
through its fully integrated tourism business being developed through MIS.
 The company has around 150 aircraft flying around 13 million customers per annum.
 MIS has enabled the company to develop unique holiday concepts, direct distribution
channels as well as the strong portfolio of hotels and cruise ships to provide better
holiday experiences to customers and a clear competitive advantage in tourism industry.
 TUI has also diversified its existing market footprint by establishing the fully digital LTE
platform.
 The company has established flexible business model in order to deal with the external
challenges faced by the company into their different businesses.
CONCLUSION
From the above discussions in the report it is observed regarding the use of Marketing
Information System components in the business of TUI Group. The report discusses how these
components are been applied and what all activities are been initiated for their application in
business. Further the report states the critical evaluation of the effectiveness of MIS in the
company which included several benefits enhancing in the favor of growth of business and
adoption of advance technology by the company but also posses some drawbacks related to the
data security, lack of skilled workforce , maintenance cost etc. The report concludes by
analyzing the effectiveness and the reasons why the implementation of MIS is effective for the
company and what benefits the company has gained out of it.
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REFERENCES
Books and Journals
Martell, D.A., 2018. Marketing Information and New Technology. In Management
Information Systems: The Technology Challenge (pp. 161-181). Routledge.
Mishulin and et.al., 2016. Integrated Marketing Information and Communication System:
New Quality of the Communication Interaction. International Review of Management
and Marketing. 6(6S). pp.7-14.
Li and et.al., 2017. The concept of smart tourism in the context of tourism information
services.Tourism Management. 58. pp.293-300.
Khraim and et.al., 2015. THE ROLE OF MARKETING INFORMATION SYSTEM IN
DECISION MAKING: A CONCEPTUAL FRAMEWORK. International Journal of
Software Engineering and its Applications. 9(4). pp.139-164.
Mandal, P.C., 2018. Marketing information and marketing intelligence: roles in generating
customer insights.International Journal of Business Forecasting and Marketing
Intelligence. 4(3). pp.311-321.
Fahmi and et.al., 2019. The Impact of Marketing Information Systems on Brilliant Financial
Performance in Hospital Industry. Indian Journal of Public Health Research &
Development. 10(3).
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