role of marketing research in mis and dss

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Part I: Introduction and Early Phases of Marketing Research INTRODUCTION TO MARKETING RESEARCH

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Industrial Management & Data Systems

ISSN : 0263-5577

Article publication date: 1 December 1997

Discusses the application of decision support systems (DSS) to assist in solving marketing decisions. As the marketing environment becomes more competitive the pressure to gain the “edge” over your competitors becomes more intense. Marketing decision support systems (MDSS) are valuable tools to assist in making marketing decisions to do just that! MDSS can be used to support, rather than replace, decision makers in the complex, semi or unstructured situations which are common in marketing problems. They incorporate the personal judgement and experience of the user to improve the effectiveness, rather than the efficiency of decision making. This means that managers will have more “quality” time to spend on analysis and planning for the future, rather than merely reflecting on the past. Discusses different types of DSS within an environment where there are discrepancies over definition, jargon and suppliers’ claims.

• Competitive advantage
• Decision‐support systems

Cassie, C. (1997), "Marketing decision support systems", Industrial Management & Data Systems , Vol. 97 No. 8, pp. 293-296. https://doi.org/10.1108/02635579710195000

Copyright © 1997, MCB UP Limited

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What Is A Marketing Decision Support System?

A marketing decision support system (MKDSS) is a system that helps businesses make informed decisions based on their marketing goals. It uses historical data to create various scenarios and analyze the potential outcomes, allowing businesses to identify the most effective approaches. 

Marketing Decision Support System was first introduced in the 1970s and has since become an essential tool for marketing professionals. It utilizes organizational data, a mathematical model, and a user interface that displays the relevant data in an understandable way. 

MKDSS can help streamline marketing efforts and maximize the chances of success, making it an invaluable asset for any business.

Why Do You Need a Marketing Decision Support System (MKDSS)?

Get an Edge Over Your Competitors: Can give you an edge over your competitors by helping you make better decisions based on data rather than guesswork.

Streamline Decision-Making: Marketing Decision Support System can help streamline the decision-making process by providing a clear view of the data and allowing you to play out various scenarios.

Make Better Use of Your Resources: You can make better use of your resources by avoiding unnecessary costs and expenses and allocating them more effectively.

Make More Informed Decisions: Can provide you with the data you need to make more informed decisions about your marketing strategy, allowing you to maximize your ROI.

Access to Real-Time Data: Provides you with access to real-time data, so you can make decisions based on the most up-to-date information.

Automate Tasks: Can automate many of the tedious tasks associated with marketing, such as data analysis and report generation, freeing up time for other tasks.

What Does Marketing Decision Support System Include?

A marketing decision support system includes various components that help you analyze and make decisions based on data. It includes a database for storing organizational data, a mathematical model for analyzing the data, and a user-friendly interface or dashboard for viewing the data. 

This system can also generate reports and graphs based on the data, allowing you to quickly identify trends and make decisions accordingly. It can also be used to simulate scenarios and view potential outcomes, helping you make more informed decisions when it comes to marketing. 

In addition, the MKDSS can provide insight into customer behaviors and preferences, helping you tailor your marketing efforts to more effectively target your audience.

Benefits of Marketing Decision Support System

A marketing decision support system (MKDSS) is a valuable tool for any organization looking to make informed decisions based on data. It helps organizations gain insight into the effectiveness of their marketing plans, enabling them to identify opportunities and make more accurate decisions. 

By leveraging data-driven intelligence, MKDSS can help organizations determine the most effective strategies for reaching their marketing objectives. Additionally, In Addition It can create detailed reports that enable organizations to analyze their performance and make changes as needed. All in all, Also, can provide invaluable assistance to organizations looking to maximize their return on investment in marketing.

How to Create a Marketing Decision Support System?

Creating a marketing decision support system (MKDSS) requires several steps. First, you need to identify your organizational goals and objectives and gather data such as past sales figures, customer preferences, and market trends. This data should be stored in a database that can be accessed by the marketing decision support system.

Next, you will need to create a mathematical model that can analyze this data and help you make decisions based on it. This model should be able to analyze patterns and trends in the data so that it can provide insights into the best possible outcome for the organization.

Finally, you will need to create a user interface or dashboard so that you can view the relevant data at a glance. This dashboard should be easy to use and should allow you to quickly view the results of your analysis and make decisions based on it.

By following these steps, you can create a marketing decision support system that will give your organization the insight it needs to make better marketing decisions.

Best Practices for Using Marketing Decision Support System

When using a marketing decision support system, it’s important to remember that the data is only as good as the quality of your input. If your data is incomplete or inaccurate, your results will be unreliable. To ensure the best possible results, make sure that you have a comprehensive understanding of your target audience and market so that you can input the correct information into the marketing decision support system.

Additionally, be sure to communicate the findings of your MKDSS clearly to everyone in your organization. If everyone is on the same page with what the data suggests, it’s far easier to make informed decisions.

Lastly, don’t forget to continually update your marketing decision support system with the latest information about your organization’s marketing goals and objectives. This will help you stay ahead of the curve and make sure that your decisions remain informed and up-to-date.

Examples of Effective Marketing Decision Support System Implementations

The ERS dashboard is an example of a marketing decision support system. It allows users to customize and track KPIs (Key Performance Indicators) and Business Intelligence (BI) systems. BI systems use queries and data to generate marketing insights

A DSS doesn’t have to be based on the processing power of a computer. In fact, there are many manual DSS systems that have been used in businesses for years. The most popular is the SWOT analysis, which has you break down the strengths, weaknesses, opportunities, and threats for each move you make.

Some of life’s best decision support systems are deceptively simple. For example, GPS works by evaluating multiple travel routes to determine which route is optimal for the driver.

Nowadays, the DSS that GPS is based on has become more sophisticated and can take live traffic and roadblock information into account to help you get to your destination as quickly as possible.

DSS software is also very common in the healthcare industry. Many hospitals use DSS software to correctly diagnose illness, which shows how much trust is placed in these decision support systems

In the world of marketing, you’ll probably find DSS systems that offer information on KPI (Key Performance Indicators), for example sales numbers and turnover. Using data from the past like this can shape and guide your marketing choices in the future.

FAQ About Marketing Decision Support System

What is meant for a marketing decision support system?

A marketing decision support system is a tool that can assist you in making a decision based on your organization’s marketing goals. Marketing is complex, so anything that can make your efforts more efficient and give you an extra hand is worth considering.

What are the components of a marketing decision support system?

• The three main components of a DSS framework are:
• Model Management System. 
• User Interface. 
• Knowledge Base.

What is the role of marketing research in decision support systems?

Marketing research provides marketing management with the information needed to make informed decisions. Marketing research does not make decisions on its own, and it cannot guarantee success. Rather, marketing research helps reduce the amount of uncertainty surrounding the decisions that need to be made.

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What Is a Marketing Decision Support System?

• 1.  An Introduction to Marketing Management
• 2.  The Role of a Marketing Project Manager
• 3.  Building a Marketing Team
• 4.  How To Create a Marketing Strategy
• 5.  How to Create a Marketing Plan: Ultimate Guide
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• 7.  An Introduction to MarTech
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• 13.  Marketing Glossary

A marketing decision support system, often abbreviated as MKDSS, is a system that helps you reach a decision based on your organization’s marketing goals.

Marketing is complex, so anything that can streamline your efforts and give you a helping hand is worthy of consideration. An MKDSS is just that; it’s a system that takes historical data and allows you to play out various scenarios in order to see which approach might be most effective.

Not every marketing plan bears fruit, after all, so basing your decisions on data is a smart way to boost your chances of success.

Just as the marketing mix has been around for many years, so has the concept of the MKDSS, which has its origins in the 1970s.

Your average DSS (decision support system) can come in various forms and can serve many functions — from database management to creating data-based graphs and reports.

Under the hood of every DSS, you’ll find organizational data, a mathematical model, packaged within a clean user interface or dashboard that allows you to view the relevant data at glance.

Examples of a marketing decision support system

In terms of marketing decision support system examples, there’s the ERS dashboard which allows users to customize and track KPIs and Business Intelligence (BI) systems that use queries and data to generate useful marketing insights.

A DSS doesn’t necessarily have to rely on the processing power of a computer, though.

In fact, there are several manual DSS systems that have been around in business for a long time. The most popular is the classic SWOT analysis , which has you break down the strengths, weaknesses, opportunities, and threats for each move you make.

Some of the best decision support systems in life are surprisingly simple. 

Take GPS, for instance, which relies on analyzing multiple travel routes to determine which route is best for the driver. These days, the basic DSS behind GPS has evolved into something much more elegant, capable of factoring in live information about traffic and road blockages to get you to your destination as quickly as possible.

The DSS is commonplace in the health industry, too.

Many hospitals turn to DSS software to correctly diagnose illness, showing how much trust is placed in these decision support systems.

In the field of marketing, you’re most likely to find DSS systems that provide information about KPI (Key Performance Indicators), such as sales figures and turnover. Using historical data like this can influence and inform your marketing decisions going forward. 

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Difference between Management Information System (MIS) and Decision Support System (DSS)

Decision Support System (DSS) is an interactive, flexible computer based information system or sub-system intended to help decision makers use communication technologies, data, documents to identify and solve problems, complete decision process tasks and make decision. Management Information System (MIS) consists of following three pillars: Management, Information, and System. These are explained as following below.

• Management: art of getting things done through and with the people of in formally organized groups.
• Information: data that have a meaning with a context, where data is raw facts about an entity (entity is the object of interest).
• System: set of inter-related components with a clearly defined boundary working together to achieve a common goal.

Management Information System (MIS) is a computer based system that makes information available to users with similar needs. Difference between Management Information System ( MIS ) and Decision Support System ( DSS ):

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A marketing information system (MKIS) is a management information system (MIS) designed to support marketing decision making. Jobber (2007) defines it as a "system in which marketing data is formally gathered, stored, analysed and distributed to managers in accordance with their informational needs on a regular basis." In addition, the online business dictionary defines Marketing Information System (MKIS) as "a system that analyzes and assesses marketing information, gathered continuously from sources inside and outside an organization or a store." Furthermore, "an overall Marketing Information System can be defined as a set structure of procedures and methods for the regular, planned collection, analysis and presentation of information for use in making marketing decisions." (Kotler, at al, 2006)

1. Overview

Reid and Bojanic(2010) claimed that, " The term market research informs relatively narrowerly than Marketing Information System(MkIS) which is altered from the term management information systemization. Market research indicates that information is not collected for a specific reason or project; the major objective is a one-time use. " [ 1 ]

"A marketing information system, which continuously collects the initial, routine and systematic data, is not only used for one particular topic but is designed for monitoring the degree of the marketing success to ensure the achievable of the operation as well." [ 1 ]

2. Importance

Developing an MIS system is becoming extremely important as the strength of economies rely on services and to better understand the specific needs of customers. Kotler, et al. (2006) defined it more broadly as "people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers." [ 2 ]

Insofar as an economy focuses on services, marketing is important to "monitor the marketing environment for changes in buyer behavior competition, technology, economic conditions, and government policies." [ 3 ] In this sense, the role of marketing is becoming pivotal for an organization to "adapt to changes in the market environment." (Harmon, 2003)

As an economy relies on the acquisition of knowledge, MkIS systems are necessary to be able to define and differentiate the value proposition that one organization provides with respect to another, as well as to define their competitive advantage. (Harmon, 2003)

The main benefit of MkIS systems is to integrate market-monitoring systems with strategy development and the strategic implementation of policies and processes that help capture and act on customer management applications with marketing decision support systems. This area constitute Marketing intelligence that supports the analysis and market based activities that support customer relations and customer service with real time information with real time applications that support market based approaches.

2.1. Relevance of MkIS

Shajahan and arya(2004) stated that, "Demands for the MkIS can be expressed by three crucial developments. Firstly, when companies expand and diversify into new markets, both the companies and customer's point of view are needed to be handled by the marketing managers. Therefore, there would be greater need for marketing information. Secondly, when consumers obtain an increment in the level of their income, it causes a tendency for them to be more discriminating during the purchasing procedure. A full awareness of the points that drive a consumer prefer a brand and the points that distinguished his brand from that of the rivals should be obtained by the marketers. This awareness is possible only with the help of a well- designed effective MkIS. Thirdly, the development of the markets and the movement from price to non-price grounds of competition lead to an increase in the importance of adoption and implementation by the competitors and finding the response of the consumers towards them. Analyzing the needs for MkIS from a third person's angle, three more factors come to the forefront viz., the information explosion, increasing complexity in decision making and the technological developments. " [ 4 ]

2.2. Marketing Research(MR)and MkIS

In addition, "Great demand of information gathering for marketing decisions results in the need of attention by themselves. Though marketing research information can be generated by studies, which are normally conducted in the market place whereas marketing information systems are designed to gather, integrate, process and distribute marketing information comprehensively from all sources, including that from marketing research. The contrasting characteristics of MkIS and MR are presented in Table 5.1 as shown below:

Table 5.1 Showing contrasting characteristic of MR and MkIS

The business function of marketing is concerned more with the planning, promotion and sale of products in existing markets and the development of new products and new markets. Thus marketing performs a vital function in the operation of a business enterprise. Business firms who turned to computers have been able to perform vital marketing function effectively for organizations' growth in the face of global competition." [ 4 ]

3. Main Structure

According to Robert Jamon (2003), MkIS systems are composed on four components: (1) user interfaces, (2) application software, (3) databases, and (4) system support. The following is a description of each one of these components:

Along with these components, MkIS systems include Marketing Decision Support Systems (MDSS), which in turn rely on simple systems such as Microsoft Excel, SPSS, and on-line analytical tools that help collect data. Data compiled for analysis is stored and processed from a data warehouse, which is simply a data repository system that helps store and further process data collected internally and externally. (Harmon, 2003)

3.1. Databases

From Pride and Ferrell (2010), "Internal database is a part of the most marketing information systems. In addition, it's relatively convenient for access and retrieve of information. A databases allow marketers to tap into an abundance of information useful in making marketing decisions: internal sales reports, newspaper articles, company news releases, government economic reports, bibliographies, and more, often accessed through a computer system." [ 5 ]

Internal Data

In with Birn(2004), " internal data is a part of the data that is needed to be collect and handled by the marketing information system. Further more, managers regard this as a command to make effective operation.But getting the information that is really needed from a marketing information system depends on what the information is and how it is used. The following internal operating data are essential:

• Sales data, presented in a graphic format, can provide regular sales trend information and highlight whether certain customer types need to be targeted or focused.
• Price information by product line, compare with competitors, can monitor market trends; analyzed by customer type, it can check price trends in customer groups.
• Stock level data and trends in key accounts or distributors, focusing on whether different outlets need support, provide market share information.
• Market support information, coordinating the effects of marketing promotions, through advertising, direct marketing, trade incentives, consumer competitions and so on, helps to determine whether decisions are being made effectively.
• Competitive information, reviewing competitors' promotions and communications to see if the company is doing it better or worse than competitors, can improve market targeting." [ 6 ]

3.2. Environmental Scanning

Sandhusen(2000) defined that, environmental scanning is a display of the nature of MIS processed. " It gives assistance for the marketers to develop the strategies, policies, plans and to make programs and budgets through dealing with the ongoing information on trends." [ 7 ]

3.3. Kotler's Model

According to Philip Kotler, the four components that comprise the MkIS system are Internal Reports (Records) System, Marketing Research System, Marketing Intelligence System, and Marketing Decision Support System

1.Internal Reports System: It records various data from different department of a company, which is regarded as a major source of information.

2.Marketing Intelligence System: It is a main source used by managers for gaining daily information of the external environment, hence assists the managers to react to the changing rapidly.

3.Marketing Research System: It is used to collect primary and secondary data, and displays the results in forms of reports.

4.Marketing Decision Support System: Compared to the supply of the data by the three previous systems, it focuses more on processing the data. [ 8 ]

4. Advantages , Limitations & Possible Risks

4.1. advantages.

Bhasin stated that,"With an increasingly competitive and expanding market, the amount of information needed daily by an organization is profound. So they have to establish a Marketing Information system. There are several advantages of Marketing information systems

• Organized Data collection – MkIS can help the managers to organize loads of data collected from the market, thus results in an increment in the productivity.
• A broad perspective – With a proper MkIS in place, the organization can be tracked which can be used to analyze independent processes. This helps in establishing a broader perspective which helps us know which steps can be taken to facilitate improvement.
• Storage of Important Data – The storage of important data is essential in execution and thus proves again that MkIS is not important only for information but also for execution.
• Avoidance of Crisis – The best way to analyze a stock (share market) is to see its past performance. Top websites like moneycontrol thrive on MIS. Similarly MIS helps you keep tracks of margins and profits. With an amazing information system established, an organizations direction can be analysed and probably crises averted before they place.
• Co-ordination – Consumer durables and FMCG companies have huge number of processes which needs to be co-ordinated. These companies depend completely on MIS for the proper running of the organization.
• Analysis and Planning – MkIS plays a crucial role in the planning process, considering the planning procedure requires information. For planning, the first thing which is needed is the organizations capabilities, then the business environment and finallycompetitor analysis. In a proper MkIS, all these are present by default and are continuously updated. Therefore, MkIS is very important for planning and analysis.
• Control – Just like MkIS can help in a crisis, in normal times it provides control as you have information of the various processes going on and what is happening across the company." [ 9 ]

4.2. Possible risks

"Nevertheless, the collection of marketing information should obey a high-frequent manner due to the rapid change in the external market." The possible risks the business may face if they disobey the manner according to Bhasin are: [ 10 ]

• Opportunities may be missed.
• There may be a lack of awareness of environmental changes and competitors' actions.
• Data collection may be difficult to analyze over several time periods.
• Marketing plans and decisions may not be properly reviewed.
• Data collection may be disjointed.
• Previous studies may not be stored in an easy to use format.
• Time lags may result if a new study is required.
• Actions may be reactionary rather than anticipatory.

Maintenance, complexity and setting up a MkIS are one of the major hindrances to Marketing information systems. Furthermore, wrong information being fed in MkIS can become cumbersome and appropriate filters need to be established. [ 9 ]

4.3. Limitations

Kotler and Philip have said that "both primary and secondary researches offer loads of the data and information needed for the marketers, whereas the secondary data sources are relatively superior in quick provision of data at lower cost. Simultaneously, a firm cannot find all the data required by itself, but sometimes can be done with the help of secondary research. However, researchers must assess those data collected from both primary and secondary data sources to enable the accuracy, updates and fairness. Each primary data collection method – observational, survey, and experimental – has its own advantages and disadvantages. Similarly, each of the various research contact methods – mail, telephone, personal interview, and online – also has its own advantages and drawbacks." [ 11 ]

5. Rural Marketing Information System (RuMIS)

A RuMIS is necessary not only for corporate organizations engaged in marketing of agricultural goods and manufactured goods intended for sales in rural areas. RuMIS is required also by the agriculturists and farmers who have enormous decis!ion-making to do. [ 12 ]

• Reid, Robert D.; Bojanic, David C. (2010). Hospitality Marketing Management (5th ed.). New Jersey: John Wiley & Sons,Inc.. pp. 209. ISBN 9780470088586. 
• Kotler, Philip; Keller, Kevin Lane (2006). Marketing Management (12 ed.). Pearson Education. 
• Robert R. Harmon. (2003). Marketing Information Systems. Encyclopedia of Information Systems, Vol. 3. Elsevier Science (USA), 137-151.
• Shajahan, S.; Priyadharshini, R. (2004). Management Information Systems. India: New Page International(P) Ltd.. pp. 99. ISBN 8122415490. 
• Pride, William M.; Ferrell, O.C. (2010). Marketing. Canada: Cengage Learning,Inc.. pp. 148. ISBN 9780547167473. 
• Birn, Robin (2004). The Effective Use of Market Research: How to Drive and Focus Better Business Decisions (4th ed.). Great Britain: Kogan Page Limited. pp. 22. ISBN 074944200X. 
• Sandhusen, Richard L. (2000). Marketing (3rd ed.). Canada: Barron's Educational Series. pp. 165. ISBN 9780764112775. 
• Jaideep, S. (2015). "MIS: Marketing Information System (With Diagram)". http://www.yourarticlelibrary.com/marketing/mis-marketing-information-system-with-diagram/48703/. Retrieved 1 Nov 2015. 
• Bhasin, Hitesh (23 Oct 2015). "8 Advantages of Marketing Information Systems". http://www.marketing91.com/customer-profitablity-analysis-2/. Retrieved 23 Oct 2015. 
• Bhasin, Hitesh (23 Oct 2015). "MIS – Marketing information system". http://www.marketing91.com/mis-marketing-information-system/. Retrieved 23 Oct 2015. 
• Kotler, Philip; Armstrong, Gary (2010). Principles of Marketing (13th ed.). United States of America: Pearson Education,Inc.. pp. 153. ISBN 9780137006694. 
• Singh, Awadhesh Kumar; Pandey, Satyaprakash (2005). Rural Marketing: Indian Perspective. India: New Age International (P) Ltd.. pp. 114. ISBN 8122416837. 

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Difference between MIS and DSS

MIS and DSS are the two common terms that are often heard in the field of business management. But, they are quite different from each other. MIS ( Management Information Systems ) and DSS ( Decision Support Systems ) are both types of information systems that are used to support decision making in organizations. Read this tutorial to learn more about MIS and DSS and how they are different from each other.

What is MIS?

MIS, Management Information System, is a computer-based program to assist users to make decisions based on information present in the system. MIS is a type of link that helps in the communication between managers of various departments in a business organization.

MIS plays a vital role in establishing a communication among the corporate people. It is mainly characterized by the input of huge amount of data and the output of summary reports. In MIS, the flow of information takes place in both sides, i.e., up and down.

What is DSS?

DSS, Decision Support System, is a tool that helps in decision-making. It uses communication technologies, data, and documents to identify problems and to finalize decisions.

DSS is a class of digital data systems that provides business and organizational decision-making actions. It is basically a computer-based software that collects, organizes, and analyzes the business data and information to simplify the business decision-making process for administration, services, and planning.

Today, DSS software are being used in different fields such as medical diagnosis, credit loan verification, agricultural production at the farm and policy methods, business administration, calculating bids on engineering projects, forest management, computation of defective rails in railways, etc.

The following table highlights the important differences between MIS and DSS −

To conclude, MIS focuses on efficiency, whereas DSS focuses on effectiveness. Overall, the main difference between an MIS and a DSS is the scope of their purpose and the types of data and decision-making processes they support.

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