Download Learning Objectives Project Approach vs. Systems Approach

3/28/2016
Learning Objectives
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 Explain the difference between a project emphasis in research and a systems emphasis
 Define what is meant by a Marketing Information System (MIS) and a Decision Support System (DSS)
Gathering Marketing Intelligence: The Systems Approach
 Identify the components of a Decision Support System
 Discuss trends in the gathering of marketing intelligence
Chapter 2
Project Approach vs. Systems Approach
 Project Approach
 Addresses specific problems
 More intense, focused
 Systems Approach
 Collects marketing intelligence Marketing Information System (MIS)
on an ongoing basis
 Finite time period
 Less intense, broad
 Specific problem
 Ongoing
 General purpose
Both sources of marketing intelligence “illuminate the darkness”, but the project approach is like a flashbulb, and the systems approach is like a candle.
 A set of procedures and methods for the regular, planned p
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collection, analysis, and presentation of information for use in making marketing decisions
 Earliest attempts at illumination via “candlelight”
 Standardized reporting via dashboards that provide interactive visualization of a company’s key summary measures. (p. 22, figure2.1)
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Example MIS Report: Sales Management
Decision Support System (DSS)
 Sales Analysis Reports
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 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 the environment and turns it into a basis for marketing decisions
 Sales revenue by region
 Sales revenue by product
 Sales revenue by salesperson
 Salesperson margin report
 Customizable illumination via “candlelight”.
 Selling expenditures per contact
 In addition to standardized reports, interactive customized reports are also available to managers as needed or as circumstances change
Comparison of Marketing Information and Decision Support Systems
Comparison of Marketing Information and Decision Support Systems
 MIS
 MIS
 DSS
 DSS
 Standardized report  Flexible and evolutionary  Batch processing at  Interactive processing format
 Decision makers need to establish and disclose information needs and decision processes
report formats
 Users can change information needs and decision processes
scheduled intervals
 Useful for structured problems
 Useful for ill‐structured  Programmer‐specified  Dialog system allows models
done in real‐time
problems
managers to specify models
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Components of a Decision Support System
Components of a Decision Support System
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 The Data‐Driven Decision Support System collects and stores Data-Driven Decision
Support System
(Database)
Model-Driven Decision
Support System
(Analytical Tools)
data from internal and external sources. It creates the database.
 The Model‐Driven Decision Support System consists of Dialog-Driven Decision
Support System
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System
(User Interface)
Information
Data Mining
 The use of powerful analytic technologies to quickly and p
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thoroughly explore mountains of data to obtain useful information
routines that allow the user to manipulate data in order to analyze them as desired. It is the analytical component.
 The Dialog‐Driven Decision Support System (aka Language System) serves as the user interface permitting marketers to produce reports based on “what if” scenarios or other criteria they specify themselves.
Trends in Obtaining Marketing Intelligence
 Knowledge Management
 Is the systematic collection and management of the knowledge that resides inside employees’ heads such as what they know about customers, the products or services they sell, and the marketplace.
 Chief Information Officers are responsible for planning, coordinating, and controlling the use of the firm’s information resources. CIOs serve as the liaison between the firm’s top management and its Information Systems department.
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Trends in Obtaining Marketing Intelligence
 Linking Marketing Intelligence to Other Business Intelligence
 Enterprise Resource Planning (ERP)
 Monitors and controls all of an organization’s resource requirements, such as inventory, human resources, and production capacity.
 Tracks financial data, schedules and inventory levels.
 Objective is to ensure that the organization has just the resources it needs to meet anticipated demand as efficiently as possible.
Trends in Obtaining Marketing Intelligence
 Linking Marketing Intelligence to Other Business Intelligence
 Customer Relationship management (CRM)
 CRM attempts to gather all relevant information about a company’s customers – such as demographic data, sales data, service records, marketing effectiveness, responsiveness, and market trends.
 The goal is to better understand customers’ needs and behaviors and to put this information in the hands of those who interact with customers. with customers
 Research Window 2.3 pp 31‐32
Limitations of the Systems Approach
Systems vs. Project Approach to Gathering Marketing Intelligence
 They do not compete with each other to collect marketing intelligence.  Managers won’t always share their decision‐making g
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processes
 Time costs
 Monetary costs
 Data availability – analysis is limited to the data that are in the system
They only complement each other.  The Systems Approach
 provides valuable input for broad strategic decisions,  allows managers to stay in tune with what is happening in their external environments, and
 serves as an excellent early warning system
 The Project Approach provides better information however when the firm
 is introducing a new product
 is changing distribution channels
 is evaluating a promotional campaign
 is addressing specific marketing problems or opportunities
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