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CHAPTER. 1234 0001 897251 00000. Marketing Decision Support Systems and Business Intelligence. 7. 7-2. Value of the Marketing Decision Support System. Marketing Decision Support Systems are more cost effective than collecting primary data.

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1234 0001 897251 00000

Marketing Decision Support Systems and Business Intelligence



Value of the marketing decision support system
Value of the Marketing Decision Support System

  • Marketing Decision Support Systems are more cost effective than collecting primary data.

    • Marketing Decision Support Systems provide decision-makers with the information they need in a more timely and efficient fashion.

      • Marketing Decision Support Systems can be used by decision-makers at any functional level in the business enterprise.

        • Marketing Decision Support Systems can be used to “simulate” business decisions, increasing the window of available alternatives and minimizing risk.


Characteristics of a marketing decision support system
Characteristics of a Marketing Decision Support System

  • It is designed for specific research problems to support individual marketing personnel.

  • It provides information designed to facilitate a specific decision.

  • Its main purpose is evaluating alternative scenarios and identifying a “best” course of action for a decision- maker.

  • It is designed to focus on problems that are “narrowly” defined, profiling target markets for marketing actions with precision.

  • It emphasizes storing and categorizing information and generating solutions management can use in situations characterized by uncertainty.


A marketing decision support system




Marketing ResearchDatabase





Responses toDatabase Queries

A Marketing Decision Support System


Information requirements for an mdss
Information Requirements for an MDSS

  • Environmental Information

  • Channel Information

  • Business Intelligence


Environmental information
Environmental Information

  • Returns and procedures

  • Price terms and allowances

  • Timing of deliveries

  • Shipping and billing accuracy

  • Growth of dollar volume on an annual basis

  • Shrinkage of dollar volume on an annual basis

  • Dollar volume broken out by season and/or yearly


Distribution partners
Distribution Partners

  • Level of service provided by wholesalers

  • Repairs, allowances, and adjustments by wholesalers

  • Costs of transportation

  • Minimum order levels maintained by wholesalers

  • On time delivery schedules

  • Levels of inventory carried by wholesalers


Business intelligence transactional data
Business Intelligence & Transactional Data

  • “Good stuff” can be found in trade publications and journals

  • “Good stuff” can be found by talking to customers

  • “Good stuff” can be found by talking to internal stakeholders

  • “Good stuff” can be found by talking to external publics

    Transactional data refers to:

  • Bar codes

  • Automatic Replenishment Systems (ARS)

  • Electronic Data Interchange (EDI)

  • Reader-Sorter


Guidelines for hardware and software
Guidelines for Hardware and Software

  • The report design should reflect the needs of the decision-makers, not the analysts.

  • The software should be able to provide decision-makers with “user-friendly” reports in minutes.

  • The system must be “intelligent” – able to print highly specific data relevant to a decision problem or opportunity.

  • Data must be easy to digest and implement.

  • The system must be custom-made – a cookie-cutter or pre-written piece of software has but one benefit for a decision-maker… a low price.


Types of mdss models
Types of MDSS Models

  • Static Models

  • Dynamic Models

  • Probability-Driven Models

  • Deterministic Models

  • Optimizing Models

  • Sub optimizing Models


Gis systems
GIS Systems

A GIS is a spatial modeling technique. It allows us to capture, encode, edit, analyze, compose and display data in a spatial format organized or “layered” into a map format.


Bip programs
BIP Programs

The following eight sources are used to capture data for a business intelligence program:

  • Governmental Agencies

  • Online Databases

  • Company and Investment Community Resources

  • Surveys and Interviews

  • Drive-by and on-site observations

  • Benchmarking

  • Defensive Competitive Intelligence

  • Reverse Engineering


Summary of learning objectives
Summary of Learning Objectives

  • Understand the purpose of a marketing decision support system (MDSS).

  • Describe the various information requirements used to design an MDSS.

  • Understand the role of transactional data in the MDSS.

  • Explain the relationship between information processing and the MDSS.

  • Understand the various models used in an MDSS.

  • Provide examples of output from an MDSS.

  • Discuss the relationship that exists between the decision support system and business intelligence.