4.00 Understand promotion and intermediate uses of marketing-information.

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 information, marketing-information management system, and marketing research.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

Marketing Information Management (MIM)Describe the need of marketing information.To meet a customers needs/wants, a company must know what s/he needsTo better adapt to changing marketsClassify types of marketing information as primary or secondary.Primary is information the company collects directly from its own surveysSecondary is information the company collects from other sources (libraries, online, Federal publications, etc.)

3MIMDescribe the types of information marketers should obtain.Customer preferences and opinionsCompetitors actions and effects on potential customersBuying habits (how often a customer repurchases)Is the correct message getting to the customers?

MIMCategorize internal sources of marketing information.Customer surveysSales people feedbackDatabase of customers and their purchasesDiscuss external sources of marketing information.Federal/State/Local governmentPublished reports from other sources (competitors, industry research, news sources)MIMExplain why marketers should collect information.To stay ahead of the competitionTo better serve current customersTo successfully expand into new marketsTo better understand the economys effect on its customers

MIMDescribe the characteristics of useful marketing information.Can be interpreted correctlyAccurateRelevant (current and useful)Describe reasons that marketers need to gather accurate information.All business decisions are based on the information collected and how that info is interpreted/analyzedMIMExplain the functions of a marketing-information management system.Collect 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 decisions (expand/delete a product line, enter new markets, set pricing and service policies, etc._MIM SystemContrast marketing research with a marketing-information system.Research is the collecting of dataAn MIM system can include research but also is responsible for assisting with making decisionsDescribe the use of a marketing-information system.Improve the level of satisfaction consumers feel with the companys productsBuild sales and profitabilityMIM SystemExplain the benefits of a marketing-information management systemHappier customersLess threat from competitorsHigher profits (in the long-run)

MIM SystemDiscuss the requirements of a marketing-information management system.Collection of accurate dataEffective analysisRelevantExplain the role of marketing-information management in marketing.Helps the company better understand its current and potential customersMIM SystemDescribe limitations of marketing-information management systemsBenefits of the information must be greater than the expenses of the MIM systemThe information being managed is only as good as what is collected and how it is analyzed (Garbage In, Garbage Out - GIGO)Credibility and EthicsDescribe 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 collectedDo 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?Credibility and EthicsExplain why the integrity of the marketing information must be protected.Personal information (that can be used to identify specific people) that is collected must be protected from unauthorized use.The integrity of the data is critical to its accurate analysis and interpretionInformation collected unethically must be handled according to the lawEthics in MIMExplain types of ethical conflicts in marketing-information management.Keeping collected information confidentialDiscuss ethical issues associated with obtaining information about competitors.Corporate spying is illegal and immoralA company is allowed to use published data about competitors that is available for public useA company may not use information obtained unethically.Ethics in MIMDescribe 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 toInformation collected by the company must be protected from inappropriate use or distributionInformation 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

5-137 5-138 TechnologyIdentify ways that the use of technology impacts the marketing-information management function.Makes it easier to collect and store certain informationInformation can be analyzed using specialized softwareMany more details can be trackedDescribe how the use of the Internet for marketing-information management tracks and monitors customer website activities.Use of cookiesAccurate count of hits to a websiteTechnologyDiscuss 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 customersCustomers can choose to go to company websites and/or join online groups and submit their opinions and suggestionsTechnologyExplain 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 InternetGeneral and specialized librariesSearch engines for finding specific sites or informationPaid services that assist with locating research information

TechnologyDiscuss marketers use of virtual realties and simulations in marketing-information management.Marketers use games and online simulations to engage the customer and glean preference informationCustomers can make choices based on preset simulations and the information can be recorded to help the company better understand the mind of the consumer.

TechnologyDescribe how the use of Global Positioning Systems (GPS) can facilitate marketing-information management.Because customers arent 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 properlyCan be set up to give the information in a specified format

5-139 5-140 VocabularyDefine the following terms: self-regulation, SUGGING, FRUGGING, privacySelf-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)FRUGGINGFundraising under the guise of a survey 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-regulationExplain the role of self-regulation for marketing researchersFor 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 surveyAny researcher failing to follow the self-regulation guidelines will be punished or expelled from the associationPrivacyDiscuss privacy concerns associated with the collection, storage, mining, and use of dataAll 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 IssuesDescribe the legalities associated with the collection of marketing data from children.Companies must be careful about collecting information about children under 18 years oldWhile buying preferences and opinions are fine, personal data must be very carefully handled (think Sony Playstation fiasco)Legal IssuesDiscuss legal issues associated with the collection and sharing of health-care data.Health Insurance Portability and Accountability Act (HIPAA) enacted August21, 1996It 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 IssuesExplain 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 customers information could result in criminal prosecution or finesThe financial information could be used in Identity Theft, so it must be kept safe

Legal IssuesDiscuss why marketing researchers are excluded from governance under the CAN-SPAM Act.Researchers arent permitted to use their collected information for anything other than the purpose it was collectedSelf-RegulatedExplain how marketing researchers are protected from SUGGING and FRUGGING.

Legal IssuesDescribe legal issues associated with callbacks.Ensuring 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. 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 IssuesAscertain 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)