1. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-1 Chapter Nineteen Marketing Decision Support Systems and Marketing Research

2. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-2 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

3. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-3 Learning Objectives  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

4. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-4 Introduction  Customer data has been a major driver of the adoption of CRM systems  Firms use technology to align operations, resources and strategies to maximise the value that customers can derive from offerings

5. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-5 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.

6. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-6 Value of the Marketing Decision Support System  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 minimising risk.

7. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-7 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 to evaluate alternative scenarios and identify the best course of action.

8. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-8 Characteristics of a Marketing Decision Support System  It is designed to focus on narrow (semi-structured) problems such as facilitating the design of sales territories, evaluating outcomes of new-product or brand launches.  Its emphases are information storing and categorisation, and resultant solutions.

9. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-9 A Marketing Decision Support System

10. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-10 Information Requirements  Environmental information  Distribution partners  Business intelligence  Transactional data

11. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-11 Environmental Information  Dollar volume by season and year  Growth or shrinkage of annual dollar volume  Shipping and billing accuracy  Price terms and allowances  Timing of deliveries  Returns and procedures

12. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-12 Distribution Partners  Levels of inventory carried by wholesalers  On-time delivery schedules  Minimum order levels maintained by wholesalers  Costs of transportation  Repairs, allowances and adjustments by wholesalers  Level of service

13. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-13 Business Intelligence and Transactional Data  Business intelligence data can be found:  In trade publications and journals  By talking to customers  By talking to internal stakeholders  By talking to the public  Transactional data can be found:  Bar codes  Automatic Replenishment Systems (ARS)  Electronic Data Interchange (EDI)  Reader-sorters

14. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-14 Types of MDSS Models 1.Static Models 2.Dynamic Models 3.Probabilistic Models 4.Deterministic Models 5.Optimising Models 6.Sub-optimising Models

15. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-15 Geographic Information Systems (GIS) A GIS is a spatial modelling technique. It allows us to capture, encode, edit, analyse, compose and display data in a spatial format organised or ‘layered’ into a map format.

16. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-16 Business Intelligence Programs (BIP) The following eight sources are used to capture data for a business intelligence program: 1. Governmental agencies 2. On-line databases 3. Company and investment community resources 4. Surveys and interviews 5. Drive-by and on-site observations 6. Benchmarking 7. Defensive competitive intelligence 8. Reverse engineering

17. Copyright  2004 McGraw-Hill Pty Ltd. PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 19-17 The Internet and Business Intelligence SourceDescription of DataWeb Address AUSTLIICase law relating to Australian companies www.austlii.edu.au ABRWide range of services for gathering business intellience www.abr.com.au @BRINTGuide to business research sites with editorial comments www.brint.com CI Resource IndexListing of sites by category for finding competitive intelligence sources www.ciseek.com