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
into
(Kotlea basis for marketing action.
r)
 MARKETING DSS

Decision An interactive, flexible

Support Systems computerized information
system that enables managers
to obtain and manipulate
information as they are
making decisions.
 Stages of Decision Making

Intelligence Is there a problem?

Design What are the alternatives?

Choice Which should you choose?

Implementati Is the choice working?

on
 Kotler’s Model of MKIS

Target Markets, Marketing Channels,

Marketing Information

Marketing Environment
Marketing Managers

System

Macroenvironment Forces
Implementation, Control

Developing Information

Competitors, Publics,
Assessing
Analysis, Planning,

Information Internal Marketing

Needs Intelligenc

Suppliers,
Records
e

Distributing Decision Marketing

Information Support Research

(Kotler
Another Model of MKIS

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

(Adapted from
 Levels of DSS

Data
Level 1 Data Acquisition, storage and
Management
retrieval

Level 2
Data
Analysis
Finding and analyzing
relationships
between variables

Level 3
Decision
Prioritization and choice
Analysis
among
decision alternatives
MDSS STRUCTURE
Here are a few Examples
how Companies achieved
success using
MDSS
 PepsiCo, uses an MDSS to
optimize its marketing mix.

• 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
 X
T
HAN