Transcript MIM
4.03 Acquire foundational knowledge of marketinginformation management to understand its nature and scope. (Intermediate) MIM Vocabulary Define the following terms: marketing information, marketing-information management system, and marketing research. Marketing Information Information gleaned from talking with the customer Marketing-Information Management System Method for collecting and analyzing/interpreting data Marketing Research Methodology for discovering the customer’s wants and ___________– links consumer, customer and public to marketer Marketing Information Management (MIM) Classify types of marketing information as primary or secondary. Primary is information the company collects directly from its own surveys – first time collected; expensive Secondary is information the company collects from other sources (libraries, online, Federal publications, etc.) – desk research – already exists Marketing Information Management (MIM) Types of MIM Attitude Research – opinion research = feelings Market Research – info related to marketing a good/service Sales Forecasting = project future sales Economic Forecasting = predict economic future Media Research – media selection & frequency (media mix) Researching print advertisements, broadcast media, online Product Research – product design, packaging, usage New product acceptance Existing product research MIM Categorize internal sources of marketing information. Customer surveys Sales people feedback Database of customers and their purchases Sales reports Company records Discuss external sources of marketing information. Federal/State/Local government Published reports from other sources (competitors, industry research, news sources) Trade reports MIM Explain the functions of a marketing-information management system. Collect accurate and useful data Analyze and interprets the data into usable information Shows trends and clearly explains why the market is the way it is Builds strong, loyal customer relationships Helps the managers make good business decisions (expand/delete a product line, enter new markets, set pricing and service policies, etc._ Warm up: Write complete question and choices on paper & answer – label paper “warm up 4.03 review”: 1. How can using a database to track its customers' preferences and buying habits help a business? Decreases the need to analyze marketing activities B. Obtains additional deductions for its semi-annual tax return C. Reduces unnecessary operational expenses D. Leads to repeat customers and forms relationships A. 2. What is the difference between Marketing Information, MIM systems, and Marketing Research (do not just copy the definition – should be in your own words)? Taste the Rainbow Activity As marketers you are going to do research on skittles; you will be asked a serious of questions – answer them completely. NOTE: if anyone throws or eats the skittles before told, you will receive a detention for not following directions. CONTAINER – cup given; BAG- is big bag skittles came in Answer pre questions at the top Get one of each color and pick your favorite and least – write it on a piece of paper and I will record it and let you know the results later. MIM System Describe limitations of marketing-information management systems Benefits of the information must be greater than the expenses of the MIM system – small businesses can’t 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 Describe the importance of credibility and objectivity in marketing-information management. Credibility is whether the data can be trusted - Is it accurate? Objectivity addresses whether there is bias in what is collected Do 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? The integrity of the data is critical to its accurate analysis and interpretation What could throw off the credibility of results? Ethics in MIM Explain types of ethical conflicts in marketing- information management. Keeping collected information confidential Discuss ethical issues associated with obtaining information about competitors. Corporate spying is illegal and immoral A company is allowed to use published data about competitors that is available for public use A company may not use information obtained unethically. Ethics in MIM Describe ethical issues created by the use of technology in data collection. Just like with law enforcement, technology may not be used to obtain information that the company has no right to Information collected by the company must be protected from inappropriate use or distribution Information collected from 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” Technology Identify ways that the use of technology impacts the marketing-information management function. Makes it easier to collect and store certain information Information can be analyzed using specialized software Many more details can be tracked Describe how the use of the Internet for marketing- information management tracks and monitors customer website activities. Use of “cookies” Accurate count of hits to a website On the same paper labeled “warm up 4.03 review” from yesterday, write complete question and choices on paper & answer 3. Which characteristic of useful marketing information is represented by the statement "The benefits of using the information should be greater than the expense of gathering the data used to generate this information"? A. B. C. D. Timeliness Accessibility Relevancy Cost-effectiveness 4. Why do many businesses place a cookie on a user’s hard drive when the user visits the business’s web site? A. To regulate the user's access to information B. To make it easy for the user to find the web site C. To track the number of times the user buys a product D. To guarantee that the web site is secure Vocabulary 2 Define the following terms: Self-Regulation – The company or industry enforces its own rules for interacting with its customers There aren’t any specific laws or government regulations concerning that company’s or industry’s products SUGGING Selling 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 question FRUGGING Fundraising under the guise of a survey - a product marketer falsely reports to be a market researcher conducting a statistical survey, when in reality the "researcher" is attempting to solicit a donation Self-regulation Explain the role of self-regulation for marketing researchers For the good of the marketing research industry, high standards are set in the way information is collected and handled This protects the industry because customers will trust the people giving the survey Any researcher failing to follow the self-regulation guidelines will be punished or expelled from the association 5. What is an example of marketing information that a business could gather by surveying its customers? A. Planned product improvements B. The company's current market share C. Location of the company's market D. Financial status of competitors 6. Which situation is an example of SUGGING? A. A salesperson offers a customer the opportunity to try an expensive product free of charge. B. A telemarketer asks a customer if s/he knows anyone who would want to buy a certain product. C. A marketer tells a customer that s/he is conducting research and then begins a sales pitch. D. A business promotes a product by sending samples to its customers without authorization. Privacy Discuss privacy concerns associated with the collection, storage, mining, and use of data All personal data must be protected from inappropriate use Information collected for one purpose might be ineligible for use in another purpose Certain data might not be allowed to be stored (i.e. SSN) or might have to be encoded and separated from other information 7. Why do marketers continue to gather information? A. Today's consumers are easy to please B. The marketing environment is constantly changing. C. Marketers are decreasing their geographic scope. D. Competition in general has decreased. 8. What is an important ethical issue involved with the collection and use of marketing information? A. Adaptability B. Standardization C. Confidentiality D. Commercialization Activity 2 Get with your 10 o’clock appointment As a pair read “Marketing Research Case Studies” 1 & 2 and complete questions Each person gets and completes their own paper 1 pair per table 10 minutes! Legal Issues Companies must be careful about collecting information about children under __________ years old - personal data must be very carefully handled Health Insurance Portability and Accountability Act (HIPAA) enacted August 21, 1996 - It establishes regulations for the use and disclosure of Protected Health Information (PHI). 9. A major credit card company has hired a marketingresearch firm to conduct a survey regarding the use of consumer credit. Would it be considered ethical to use the database information collected in a direct marketing campaign? A. No, businesses should not undertake any non- research activities involving data collected. B. Yes, the consumers know surveys are just a way to get information for advertising C. No, the database is probably not a reliable source of marketing information. D. Yes, the credit card company paid for the research and should be able to use it any way it wants. 10. How can researchers protect the integrity of the marketing information they collect? A. By organizing it logically B. By reviewing it frequently C. By publishing it openly D. By interpreting it correctly 11. How can businesses use computerized databases to sort and organize information about customers’ purchases, brand preferences and dollar amounts spent? A. To maintain sales strategies B. To prepare financial reports C. To develop inventory control plans D. To customize its marketing efforts Legal Issues Because financial institutions track personal information that includes SSN and bank account numbers, customer data must be protected from theft or unauthorized use. Call back: ensuring that you are talking to the same person who called in the request - do not give out information to someone unauthorized to have it. Automated dialers are computers with speech recognition software. A customer could inadvertently give personal, protected, information that must then be removed or stored separately MIM BINGO! Get a MIM Bingo Grid Get a colored marker to use as “chips” – use a different marker color each round. RANDOMLY write each of the bottom terms or phrases (on paper) in a box on the handout. Mark the “FREE” square I will read questions or statements from the guide – after hearing each question, you should determine the appropriate response and put a mark on the corresponding square. The first person to mark five answers in a row, column, or diagonally should shout “MIM” – get extra credit or candy!