MARKETING DECISION SUPPORT

SYSTEM

Decision Support Systems
Is it morning or evening?

MARKETING DSS
... a coordinated collection of data, systems, tools and techniques with supporting software and hardware by which an organization gathers and interprets relevant information from business and environment and turns it intoea basis for marketing action. (Kotl
r)

MARKETING DSS
Decision Support Systems

An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions.

Stages of Decision Making
Intelligence Design Choice Implementati on
Is there a problem?

What are the alternatives?

Which should you choose?

Is the choice working?

Kotler’s Model of MKIS
Target Markets, Marketing Channels, Suppliers, Competitors, Publics, Macroenvironment Forces

Marketing Managers

Analysis, Planning, Implementation, Control

Assessing Information Needs

Marketing Information System Developing Information
Internal Records Marketing Intelligenc e

Marketing Environment

Distributing Information

Decision Support

Marketing Research

(Kotler

Another Model of MKIS
Internal Records System Marketing Intelligence System Marketing Research System Marketing Decision Support System
Data base •Marketing Mix Planning and Decisions •Forecasting •Resource Allocation

(Adapted from

Levels of DSS
Level 1

Data Data Acquisition, storage and Management retrieval Data Finding and Analysisanalyzing relationships
between variables

Level 2

Level 3

Decision Prioritization Analysis and choice among
decision alternatives

MDSS STRUCTURE

Here are a few Examples how Companies achieved success using

MDSS

optimize its marketing mix.

PepsiCo, uses an MDSS to

• Managers interact with the system in a question answer mode; information obtained from such sessions & from external databases is analyzed with various models to arrive at decision recommendations.

PepsiCo’s MDSS uses a plethora of
models… product- mix, revenue gain forecasting, product cost optimization, pricing, customer and channel promotion, and • market share change, along with • • • • •

A consumer electronics company contracted with MDSS to develop a monthly, historical Sales and Marketing database.  • Data was extracted from the company's financial system and customized tools were developed to track and analyze sales patterns and sales force productivity. 

• This resulted in increased sales of more than $500,000.

Approaches to Decision Analysis
• Checklists • Pro/con analysis • Weighting and scoring method • Management sciences models
– Linear programming – Optimization model – Decision tree – Multiple regression

• What if analysis.

GE

MARKETING MDSSDSS + GEOGRAPHIC INFORMATION SYSTEM

• marketers need to analyse efficiently geographical information in order to gain competitive advantage and effectiveness. • Can analyze market areas and learn where certain defined demographic

GEOMARKETING DSS

The MDSS help companies create a better decision-Making environment.
• It helps to organize data, making it easy to access &, design the outputs to make crucial decisions.  • Experimentation with various situations. • Quicker evaluation of alternatives and a higher quality of marketing decisions.

MDSS is less evolved than those DSS used to support decision- making in other functions.
• MDSS currently rely on limited quantitative models. • MDSS developers tend to pay more attention to technological aspects. • Acceptance by Managers.

Guidelines in Developing MDSS
• A decision support system should:
Assist managers in making decisions to solve complex problems Support the manager’s judgment rather than try to replace it Improve the manager’s decision-making effectiveness rather than its efficiency

CONCLUSION
MDSS-valuable tool available to the marketing decision- maker. MDSS allow marketers to make objective and consistent decisions by supporting the fast solution of complex problems. They allow decision makers to combine their own expertise and intuition with complimentary application models to enhance the

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