1. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-1 Chapter Twenty Marketing Decision Support Systems and Marketing Research

2. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-2 Learning Objectives  Understand the purpose of a marketing decision support system (MDSS).  Describe the various information requirements used to design a MDSS.  Understand the role of transactional data in the MDSS.  Explain the relationship between information processing and the MDSS.

3. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-3 Learning Objectives  Understand the various models used in a MDSS.  Provide examples of output from a MDSS.  Discuss the relationship that exists between the decision support system and business intelligence.

4. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-4 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  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-5 Introduction  There are vast amounts of customer and competitive information available.  Decision support systems in the 2000’s are separate organisational processes.

6. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-6 The Marketing Decision Support System (MDSS)  A computer-based system intended for use by particular marketing personnel at an functional level for the purpose of solving semi- structured problems.  Output is in the form of special reports, mathematical simulations or tracking devices.

7. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-7 The MDSS in contrast to the MIS:  Designed for specific research problems.  Primary purpose is to evaluate alternative solutions to marketing related problems and to identify the best course of action.  Designed to focus on narrow/semi- structured problems.

8. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-8 A Marketing Decision Support System

9. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-9 Value of the Marketing Decision Support System  Marketing decision support systems are more cost effective than collecting primary data.  They provide decision makers with the information they need in a more timely and efficient fashion.

10. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-10 Value of the Marketing Decision Support System  They can be used by decision makers at any functional level in the business enterprise.  They can be used to simulate business decisions, increasing the window of available alternatives and minimising risk.

11. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-11 Characteristics of a Marketing Decision Support System  Designed for specific research problems to support individual marketing personnel, to facilitate a decision.  Its primary purpose is to evaluate alternative solutions to marketing related problems and to identify the best course of action.  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.

12. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-12 Information Requirements  Inputs  Environmental information  Transactional data  Business intelligence

13. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-13 Outputs  Responses to data base queries  Model simulations  Specialised reports

14. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-14 Environmental Information  Pertaining to the business surroundings, including suppliers and distributors.  Dollar volume by season and year.  Growth or shrinkage of annual dollar.  Volume accuracy of shipping and billing.  Timeliness of deliveries.  Price terms and allowances.  Returns and procedures.

15. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-15 Example of output from supplier processing software

16. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-16 Distribution Partners  Levels of inventory carried by wholesalers.  On-time delivery performance.  Minimum ordering requirements.  Transportation costs.  Repairs, allowances and adjustments.  Level of service.

17. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-17 Example of Wholesaler Evaluation System (WES)

18. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-18 Business Intelligence  Business intelligence data can be found:  In trade publications, books and newspapers.  By talking to customers, suppliers, wholesalers and other personnel in the company.

19. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-19 Transactional Data  Transactional data can be found:  Bar codes  Optical scanning  Automatic Replenishment Systems (ARS)  Electronic Data Interchange (EDI)  Reader-sorters

20. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-20 The AC Nielsen brand scan is a good example of transactional data

21. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-21 Information Processing and the MDS  The importance of the computer and software system:  Reports should reflect the needs of the user.  The software system should provide reports in a timely fashion.  The system must have the ability to report and print specific report data.  The data must be easy to read, use and manipulate.  The system should be custom made.

22. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-22 Types of MDSS Models  Static or Dynamic Models  Probabilistic or Deterministic Models  Optimising or Sub-optimising Models

23. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-23 A MDSS sales analysis output example Output of sales-by-customer report for system products

24. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-24 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.

25. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-25 Example of GIS mapping. Areas are coded to reflect different levels of product success

26. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-26 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

27. Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 20-27 The Internet and Business Intelligence Principle data/information sources for developing business intelligence programs