MDSS’s are part of an system called Management Information System (MIS) that can aid in decision-making by using data from other sales and market figures and forming a marketing plan. However, MDSS has many benefits as it helps in vendors planning strategy, determine profitable levels of pricing, spending on advertising. This software provides analytical, measurable scientific data. This helps to make firm decisions and decisions with data backup and not assumptions. MDSS system also has some disadvantages: system errors, reliance on only qualitative data and not considering qualitative inputs, etc.
The MDSS comprises the following components:
Various interacting software and web browsers collect and compile the data, analyze them and help in report generation in a very convenient and comprehensible manner.
The common MDSS has a system accessible to multiple users. It has tools that can help in navigation through the software. It can direct itself to files and images using hyperlinks and gives simplistic views of charts, graphs in a very structured way.
The knowledge base present in any decision support system comes from data extracted from consumer lists, sales data, operational data, and market data. There are also external sources like newspapers and the internet from where many kinds of data set are obtained.
Uses of Marketing Decision Support System
MDSS is a part of modern technology and advancement that has made business activities like analysis and quick and easy decisions. A few of the various uses of MDSS are given below.
A MDSS is very useful in strategic planning vendor allocation for product marketing and sales. This system analyses the marketing components of product, price, promotion, and place. Thus, the advantageous levels at which pricing, spending on an advertisement, and location of stores are to be set for the best possible profit.
MDSS is a sophisticated database management system. It can access both internal and external data; it is a storehouse of information. It has a model management system for the creation of different simulation models.
It has a very convenient user interface system which is very convenient for solving queries, reporting, etc. Although DSS contains complex functions, the highly efficient user interface makes it very user-friendly.
MDSS and other decision support systems can make predictions of the decisions by analyzing different scenarios. This helps businesses immensely by giving a clear view and warn them to be cautious before applying any tactics.
MDSS are very helpful in saving time, money, and energy by eliminating useless steps and . It engages fewer people as the system can perform multiple analyses in few seconds, which is not possible even with manual work for weeks.
Limitations of Decision Support Systems
Along with the multiple benefits of marketing and other decision support systems, certain uncertainties are associated with it. Some of them are as follows:
Missing out qualitative data: An entire companys entire data management system that comprises a MDSS relies mostly on quantifiable data. It cannot analyze indefinable data. Hence making decisions depending merely on figures and without judgment should be avoided by management.
Unsure assumptions: May not fully understand the assumptions made by a DSS while analyzing data. Hence a decision-maker needs to consider these uncontrollable data over which the system relies while giving information. It is always important for a decision-maker to understand that although the support system aids and supports decision-making, an is highly recommended to overpower the systems limitations.
System design failure: The design of decision support systems is associated with the need of people. It is important to change or set the system to completely realize what is being asked and which the relevant results of the queries are. Sometimes the system does not respond the way people want, which may result from system design failure.
Data collection issues: Mechanical and manual data collection of a huge volume is very difficult. Some of the data may get skipped, while some of them are wrongly recorded. Ultimately primary data entered into the system are done by manual entries. Hence due to this inaccuracy, the system may not give 100% accurate results.
Users not equipped with technology: The decision support system is a part of the of the internet, software, and operating systems. However, for many people, this adaptation has brought difficulties. Many people cannot adjust to the shift of daily activities into the world of technology. Hence some users find it difficult to use such applications.
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