UNIT 5

DECISION MAKING SYSTEM

MARKETING DECISION SUPPORT
SYSTEM
Definition:
An interactive, flexible, computerized information system that
enables managers to obtain and manipulate information as they
are making decisions.
 A DSS bypasses the information processing specialist and
gives managers access to useful data from their own desk. The
characteristics are:
 Interactive
 Flexible
 Discovery oriented
 Accessible
ROLE OF MARKETING RESEARCH
 Marketing research is the process of planning, collecting and
analyzing data relevant to a marketing decision.
 The results of this analysis are then communicated to
management. Thus,marketing research is the function that links
the consumer, customer and public to the marketer through
information.
 MR plays an important role in the marketing system.It provides
decision makers with data on the effectiveness of the current
marketing mix and insights for necessary changes.
 Furthermore, marketing research is a main data source for both
management information system and DSS.
 Marketing research has three roles:

1.Descriptive Roles: It includes gathering and presenting factual

statements. E.g. What is historic sales trend in the industry? What
are the consumer’s attitude towards a product and it’s
advertising?

2.Diagnostic Roles: It includes explaining data, such as

determining the impact on sales of a change in the design of the
package.

3.Predictive Roles: It is to address”what if”questions.E.g.How

can the researcher to predict the results of a planned marketing
decision?
STEPS IN MARKETING RESEARCH
1.Identify and formulate the problem/opportunity.
2.Plan the research design and gather primary data.
3.Specify the sampling procedures.
4.Collect the data
5.Analyze the data
6.Prepare and present the report.
7.Follow up
PROFOUND IMPACT OF THE INTERNET
ON MARKETING RESEARCH
Today, about one fifth of the world’s population is online.

Advantages of Internet Survey:

1.Rapid development, real time reporting.
2.Dramatically reduced costs.
3.Personalized questions and data
4.Improved respondent participation
5.Contact with the hard to reach.
USES OF THE INTERNET BY MARKETING
RESEARCHERS:
1.Methods of conducting online surveys:
There are several basic methods for conducting online surveys-
Websurvey systems, survey designs and web hosting sites, and
online panel providers.
2.Online focus groups:
The research firms builds a database of respondents via a
screening questionnaire on its website. When a client comes to a
firm with a need for a particular focus group, the the firm go to
its database and identifies individuals who appear to qualify.
It sends an e-mail message to these individuals asking them to
log on to a particular site at a particular time scheduled for the
group. The firm pays them an incentive for their participation.
SCANNER BASED RESEARCH
• A system for gathering for gathering information from a single group
of respondents by continuously monitoring the advertising, promotion
and pricing they are exposed to and the things they buy.
• The variables measured are advertising campaigns, coupons, displays
and product prices. The result is a huge database of marketing efforts
and consumer behaviour.
• There are different types of scanner based research. They are:
• 1.Behaviour scan: A scanner based research program that tracks the
purchase of 3000 households through store scanner in each research
market.
• 2.Infoscan:A scanner based sales tracking service for the consumer
packaged goods industry.
• 3.Neuromarketing:A field of marketing that studies the body’s
responses to marketing stimuli.
COMPETITIVE INTELLIGENCE
 Competitive intelligence is the result of a company's efforts to gather
and analyze information about its industry, business
environment, competitors, and competitive products and services. The
information-gathering and analysis process can help a company develop
its strategy or identify competitive gaps.
 Competitive intelligence practices involve ethical and legitimate research
and information-gathering such as studying a company’s social media
posts for specifics that might reveal the timing of a product launch.
 While it’s possible to hire a trained, professional competitive intelligence
practitioner, small businesses often gather and analyze the information
themselves. Competitive intelligence information can be gathered
through online searches and other data-gathering methods, or by talking
to people.
INFORMATION SOURCES
• Company websites for insights into target audiences or shifts in strategy,
product pricing, product benefits, and so on.
• Company press releases for new product, staff, or expansion news.
• Social media postings, particularly if the company begins sharing
information related to a product or service that hasn’t yet been
introduced. 
• Online job postings, since the types and number of open positions could
indicate efforts to staff up for a new product or category development.
• Company information aggregators such as Dun & Bradstreet or
Hoover’s Online.  
• User’s groups on social networks that include LinkedIn and Facebook
and elsewhere on the Internet.
It’s also possible to gather relevant competitive information by talking to
people inside and outside the company.
• People who might have helpful information include:
• Your own salespeople, who might learn information about competitors
when calling on customers or prospects.
• Employees who attend industry conferences and might hear useful
specifics.
• Vendors, especially those specializing in serving your industry.
• Customers who might inadvertently or intentionally share information
they’ve acquired about competitive products or services.
• The key to competitive intelligence is that second word – intelligence.
Information gathered however formally or informally won’t help a
company unless it is analyzed thoughtfully or carefully. Only then can
the information inform strategic or other decisions in the organization.