Transcript 4.00 Understand promotion and intermediate uses of marketing

4.08 Acquire foundational
knowledge of marketinginformation management to
understand its nature and scope.
(Intermediate)
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
Technology
 Discuss how customer-to-business communications
on the Internet can be used in marketing-information
management (e.g., email reminders, popup notices,
online focus groups, etc.)
 Computers track details well and software can provide
reminders to customers
 Customers can choose to go to company websites and/or
join online groups and submit their opinions and
suggestions
Technology
 Explain how the Internet provides services for
conducting research (e.g., search engines, tools for
online surveys, database access, blogs, etc.)
 There are many sources of information available on the
Internet
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General and specialized libraries
Search engines for finding specific sites or information
Paid services that assist with locating research information
Technology
 Discuss marketers’ use of virtual realties and
simulations in marketing-information management.
 Marketers use games and online simulations to engage
the customer and glean preference information
 Customers can make choices based on preset
simulations and the information can be recorded to help
the company better understand the mind of the
consumer.
Technology
 Describe how the use of Global Positioning Systems
(GPS) can facilitate marketing-information
management.
 Because customers aren’t always stationary and some
move from one area of the state or country to another,
GPS helps companies understand who is making the
buying decisions
 Explain the use of data analysis software in marketing-
information management.
 Specialized software allows data to be analyzed properly
 Can be set up to give the information in a specified
format
Vocabulary
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 purports to be a market researcher conducting a
statistical survey, when in reality the "researcher" is
attempting to solicit a donation
SUGGing and FRUGGing
 http://www.dmnews.com/sugging-and-frugging-
practices-as-ugly-as-they-sound/article/94425/
Vocabulary cont.
 Privacy
 The concept that an individual’s 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 information
 There are morale obligations as well
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
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
Legal Issues
 Describe the legalities associated with the collection of
marketing data from children.
 Companies must be careful about collecting information
about children under 18 years old
 While buying preferences and opinions are fine,
personal data must be very carefully handled (think
Sony Playstation fiasco)
Legal Issues
 Discuss legal issues associated with the collection and
sharing of health-care data.
 Health Insurance Portability and Accountability Act (HIPAA)
enacted August 21, 1996
 It establishes regulations for the use and disclosure of
Protected Health Information (PHI). PHI is any information
held by a covered entity which concerns health status,
provision of health care, or payment for health care that can
be linked to an individual. This is interpreted rather broadly
and includes any part of an individual's medical record or
payment history.
 They also must disclose PHI when required to do so by law,
such as reporting suspected child abuse to state child welfare
agencies.
Legal Issues
 Explain legal issues associated with the protection of
information held by financial institutions.
 Because financial institutions track personal
information that includes SSN and bank account
numbers, customer data must be protected from theft or
unauthorized use.
 Improper handling or protection of the customer’s
information could result in criminal prosecution or fines
 The financial information could be used in Identity
Theft, so it must be kept safe
Legal Issues
 Discuss why marketing researchers are excluded from
governance under the CAN-SPAM Act (Controlling the
Assault of Non-Solicited Pornography And Marketing
Act of 2003)
 Researchers aren’t permitted to use their collected
information for anything other than the purpose it was
collected
 Under Federal Trade Commission - however mostly
self-regulated
 It does not require e-mailers to get permission before
they send marketing messages
Legal Issues
 Describe legal issues associated with callbacks.
 Ensuring that you are talking to the same person who called
in the request
 Being certain that you do not give out information to
someone unauthorized to have it.
 Think medical call back (HIPAA) or school call about grades.
 Discuss legal issues associated with the use of automatic
dialers when collecting data.
 Automated dialers are computers with speech recognition
software.
 A customer could inadvertently give personal, protected,
information that must then be removed or stored separately
Legal Issues
 Ascertain the current status of privacy/data security
legislation.
 Rules and laws are being updated to ensure the
protection of identities (customers’ personal
information)
 Discuss reasons that marketing researchers must
consider state, federal, and international laws when
collecting data.
 Legal liabilities (fines, criminal prosecution, sanctions)
Test Review
 An example of marketing information that a business
could gather by surveying its customers is the location
of the company’s market.
 Marketers are continually gathering information
because the marketing environment is constantly
changing.
 Marketing information must be cost-effective and
interpreted correctly. Ethically information must be
kept confidential; only used for the original purpose it
was gathered (don’t use information for non-research
activity such as SUGGing and FRUGGing.)
Test Review
 Cookies placed on a user’s hard drive when the user
visits the business’s web site help a business to
customize its marketing efforts.
 By creating a database of information about
customers’ purchases, brand preferences, dollar
amounts spent, preferences and buying habits a
business can track the number of times the user buys a
product and builds strong, loyal customer
relationships.