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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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  1. CHAPTER 1234 0001 897251 00000 Marketing Decision Support Systems and Business Intelligence 7 7-2

  2. 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. 7-3

  3. 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. 7-4

  4. EnvironmentalInformation TransactionalData BusinessIntelligence Marketing ResearchDatabase Computer Software SpecializedReports ModelSimulations Responses toDatabase Queries A Marketing Decision Support System 7-5

  5. Information Requirements for an MDSS • Environmental Information • Channel Information • Business Intelligence 7-6

  6. 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 7-7

  7. 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 7-8

  8. 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 7-9

  9. 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. 7-10

  10. Types of MDSS Models • Static Models • Dynamic Models • Probability-Driven Models • Deterministic Models • Optimizing Models • Sub optimizing Models 7-11

  11. 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. 7-12

  12. 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 7-13

  13. The Internet & Business Intelligence 7-14a

  14. The Internet & Business Intelligence 7-14b

  15. 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. 7-15

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