4.00 Understand promotion and intermediate uses of marketing-information.

4.03 Acquire foundational knowledge of marketing-information management to understand its nature and scope. (Intermediate)

MIM VocabularyDefine the following terms:Marketing InformationInformation gleaned from talking with the customerMarketing-Information Management SystemMethod for collecting and analyzing/interpreting dataMarketing ResearchMethodology for discovering the customers wants and needs links consumer, customer and public to marketer

MIM NeedWe need of marketing information to:To meet a customers needs/wants, a company must know what s/he needsTo better adapt to changing markets

3Marketers Should Collect Information to:To stay ahead of the competitionTo better serve current customersTo successfully expand into new marketsTo better understand the economys effect on its customersAnswers: what should be producedwhere it should be soldhow best to promote productwhat price to sell the productUsing Marketing ResearchFormal (procedural or strategic) VS Informal (unplanned)

In house (internal department) VS Outsourced (External or hire an expert)

Primary (first)VS Secondary (existing)Government, opinion polls, associations and businesses use marketing researchInternal VS ExternalInternalCustomer surveysSales people feedbackDatabase of customers and their purchasesSales reportsCompany recordsExternalFederal/State/Local governmentPublished reports from other sources (competitors, industry research, news sources)Trade reportsPrimary Vs. Secondary Marketing InformationPrimary : information the company collects directly from its own surveys.first time collectedexpensive

Secondary : information the company collects from other sources (libraries, online, Federal publications, etc.) desk research already exists

7Types of MIMAttitude Research opinion research = feelings

Market Research info related to marketing a good/serviceSales Forecasting = project future salesEconomic Forecasting = predict economic future

Media Research media selection & frequency (media mix)Researching print advertisements, broadcast media, online

Product Research product design, packaging, usageNew product acceptanceExisting product researchTypes of Information Marketers Should ObtainCustomer:preferences and opinionsBuying habits (how often a customer repurchases)

Competitors:actions effects on potential customers

Companies Message:Is the correct message getting to the customers?

Characteristics Of Useful Marketing InformationCan be interpreted correctlyAccurateRelevant (current and useful)

Useful information helps make wise business decisions.All business decisions are based on the information collected and how that info is interpreted/analyzedFunctions of a MIM SystemCollect accurate and useful dataAnalyze and interprets the data into usable informationShows trends and clearly explains why the market is the way it isHelps the managers make good business decisionsexpand/delete a product line, enter new markets, set pricing and service policies, etc._Marketing Research VS MIMWhat is the difference between Marketing Research and MIM?

Research is the collecting of dataMIM system can include research but also is responsible for assisting with making decisionsBenefits of MIMHappier customersLess threat from competitorsHigher profits (in the long-run)

Limitations of a MIM SystemBenefits of the information must be greater than the expenses of the MIM system small businesses cant afford the expense

Significant investment of time and money

The information being managed is only as good as what is collected and how it is analyzed Garbage In, Garbage Out (GIGO)Credibility and Ethics in MIMCredibility: can be trusted (Is it accurate?)

Objectivity: bias in what is collected

Company ask QuestionsDo we show all the information, even the stuff that makes our past decisions look bad?Do we only collect information that supports our goals or points of view?Integrity in MIMIntegrity: adhering to high moral principles or professional standardsPersonal information that is collected must be protected from unauthorized use.The integrity of the data is critical to its accurate analysis and interpretationInformation collected unethically must be handled according to the lawEthical Conflicts and CompetitorsUnethicalSharing confidential informationCorporate spying (illegal)Use of competitors information obtained unethically

EthicalUse published data about competitors that is available for public useMIM Ethics and TechnologyMay not be used to obtain information that the company has no right to

Companies must protected from inappropriate use or distribution

Research surveys taken for one specific purpose (i.e. consumer credit) may not be used for marketing campaigns (i.e. direct mail)

Use of cookies- computer figure prints

Technology in MIMUsing Technology for ResearchMakes it easier to collect and store certain informationInformation can be analyzed using specialized softwareMany more details can be tracked

Monitoring WebsitesUse of cookiesAccurate count of hits to a websiteB2C Communications and the WebComputers track details well Software can provide reminders to customersCustomers can access company websites Customers can join online groups / submit opinions / suggestions

EX: e.g., email reminders, popup notices, online focus groups, etc.

Conducting research on the WebSources of information available on the InternetGeneral and specialized librariesSearch engines for finding specific sites or informationPaid services that assist with locating research information

Virtual Realties and SimulationsMarketers use games and online simulationsengage the customer and glean preference information

Customers can make choices based on preset simulationsinformation can be recorded to help the company better understand the mind of the consumer.

Global Positioning Systems (GPS)in MIMGPS helps companies understand who is making the buying decisions Facebook location taggingGoogle maps on a smart phoneSmart Phones

Data Analysis SoftwareSpecialized software allows data to be analyzed properlyCan be set up to give the information in a specified format

Define thefollowing terms: Self-Regulation The company or industry enforces its own rules for interacting with its customersThere arent any specific laws or government regulations concerning that companys or industrys productsSUGGINGSelling under the guise of a survey (research) - a product marketer falsely pretends to be a market researcher conducting a survey, when in reality they are simply trying to sell the product in questionFRUGGINGFundraising under the guise of a survey - a product marketer falsely purports to be a market researcher conducting a statistical survey, when in reality the "researcher" is attempting to solicit a donation

Vocabulary cont.PrivacyThe concept that an individuals personal information (contact, SSN, preferences, etc.) are to be safely kept by the company and only shared or used as agreed to by the customer.There are legal requirements for a company to safeguard certain informationThere are morale obligations as well

Self-regulationHigh standards are set in the way information is collected and handled Protects the industry because customers will trust the people giving the surveyFailing to follow the self-regulation guidelines will be punished or expelled from the associationPrivacyAll personal data must be protected from inappropriate useInformation collected for one purpose might be ineligible for use in another purposeCertain data might not be allowed to be stored (i.e. SSN) or might have to be encoded and separated from other information

Legal Issues w/ Minors Under 18 Years OldCompanies must be careful about collecting personal information buying preferences and opinions are fine personal data must be very carefully handled Leaking or passing out information

Health-care Legal Issues- Collection and SharingHIPAA- Health Insurance Portability and Accountability Act August21, 1996Use and disclosure of Protected Health Information (PHI). Health statusProvision of health careIndividual's medical recordPayment for health care or payment history

Companies must disclose PHI when required to do so by law:Reporting suspected child abuse to state child welfare agenciesSpread of infectious diseases

Financial Institutions Legal IssuesMust protect information obtained by customers and applicants from theft or unauthorized use :Social Security Numbers (SSN)Bank account numbersCustomer data

Misuse of Financial Information may result in:Criminal prosecution FinesIdentity theftPornography Legal IssuesCAN-SPAM Act (Controlling the Assault of Non-Solicited Pornography And Marketing Act of 2003)use their collected is for only the intended purpose

FTC (Federal Trade Commission ) & self-regulationget permission before sending marketing messages

Callback Legal IssuesEnsuring that you are talking to the same person who called in the requestBeing certain that you do not give out information to someone unauthorized to have it. EX:Medical call back (HIPAA)School call about gradesSpoofing

Automatic Dialers Legal IssuesAutomated Dialers- computers with speech recognition software.A customer could inadvertently give personal, protected, information that must then be removed or stored separately

Privacy/Data Security LegislationRules and laws are being updated to ensure the protection of identitiesMarketing researchers must consider state, federal, and international laws when collecting data to aviod:Legal liabilities FinesCriminal prosecutionSanctions