Marketing management support systems

Information systems tend to consist of 4 systems (TEDE):
1. Transaction processing systems
2. Expert systems (apply business rules at operational level)
3. Decision support systems (used by middle managers for routine modelling)
4. Executive information systems (strategic level for unstructured problems or identifying new opportunities)

Systems in detail:

1) Transaction processing systems

Used for routine tasks in which transactions (or other data) must be processed in order for operations to continue – handling sales orders, purchase orders, payroll, stock records

- Time-consuming and should be automated
- Provides raw materials for other systems
- Common to capture transaction data via barcodes in an EPOS system, EFTPOS (electronic funds transfer at point of sale) and loyalty cards – enables complex tracking
- New developments emerging e.g. customers do their own data entry via the net

2) Expert systems

Computer programs which allow users to benefit from expert knowledge, information and advice

- apply predefined business rules to answer questions (common in customer support)
- relatively untrained staff can enter data e.g. NHS direct

How expert systems are used in marketing management?

• Precision marketing – mass customisation model where marketing approach is matched precisely to needs of the individual. Problematic because of need to manipulate vast amounts of data. Good expert system can use artificial intelligence
• Aggregation – customers with similar behaviour patterns are aggregated (ACORN works on this principle)
• Simple decisions – e.g. Sears-Roebuck targets customers who’ve bought domestic appliances without maintenance cover to sell maintenance contracts to

3) Decision support systems

A coordinated collection of data systems, tool & techniques with supporting software & hardware used for gathering & interpreting information

- used by management to aid decision making on unstructured, complex or uncertain issues
- similar to a simple ‘what if spreadsheet’

Example: A geomarketing DSS that helps locate best site position for tourist information offices. If DistanceToCompetitors is HIGH
and DistanceToPopulation is LOW
and AdjacentTouristAtraction is HIGH
and RegionEconomicSituation is GOOD
then SiteAttractiveness is HIGH

4) Executive information systems

Gives executives easy access to key internal & external data

Likely to have following:
- Summary level data (understood at a glance)
- Facility to drill-down for more details (e.g. hyperlinks)
- Data manipulation facilities (budget comparisons, trend analysis)
- Graphics (user-friendly presentation)