Slide 1Slide 2Value of the Marketing Decision Support SystemCharacteristics of a Marketing Decision Support SystemA Marketing Decision Support SystemInformation Requirements for an MDSSEnvironmental InformationDistribution PartnersBusiness Intelligence & Transactional DataGuidelines for Hardware and SoftwareTypes of MDSS ModelsGIS SystemsBIP ProgramsThe Internet & Business IntelligenceSlide 15Summary of Learning Objectives1995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.1995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. CCHHAAPPTTEERR1234 0001 897251 0000077Marketing Decision Marketing Decision Support Systems and Support Systems and Business IntelligenceBusiness Intelligence7-27-21995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 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.7-37-31995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 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.7-47-41995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. A Marketing Decision Support System7-57-5TransactionalDataEnvironmentalInformationBusinessIntelligenceComputerMarketing ResearchDatabaseSoftwareModelSimulationsSpecializedReportsResponses toDatabase Queries1995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Information Requirements for an MDSS Environmental Information Channel Information Business Intelligence7-67-61995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 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 yearly7-77-71995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 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 wholesalers7-87-81995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 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 publicsTransactional data refers to: Bar codes Automatic Replenishment Systems (ARS) Electronic Data Interchange (EDI) Reader-Sorter7-97-91995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Guidelines for Hardware and Software1) The report design should reflect the needs of the decision-makers, not the analysts.2) The software should be able to provide decision-makers with “user-friendly” reports in minutes.3) The system must be “intelligent” – able to print highly specific data relevant to a decision problem or opportunity.4) Data must be easy to digest and implement.5) 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. 7-107-101995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Types of MDSS Models1. Static Models2. Dynamic Models3. Probability-Driven Models4. Deterministic Models5. Optimizing Models6. Sub optimizing Models7-117-111995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. GIS SystemsA 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.7-127-121995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. BIP ProgramsThe 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 Engineering7-137-131995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Internet & Business Intelligence7-14a7-14aSource Description of Data Web AddressInternational Business ResearchProvides international business information and links to useful data sourcesinfotoday.comBUSLIB-L Collection of business research articles and e-mail discussion groupsmontague.com@BRINT Guide to business research sites with editorial commentsbrint.comCI Resource Index Listing of sites by category for finding competitive intelligence sourcesciseek.comEuropean Research GatewaysStores 60,000 records of R&D projects currently in operation in Europecordis.lu/ergo/home1995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The