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 customer

Marketing-Information Management SystemMethod for collecting and analyzing/interpreting

dataMarketing Research

Methodology for discovering the customer’s wants and needs – links consumer, customer and public to marketer

Who uses marketing research?Marketing research may be formal or

informalDepending on the size of the business it may

be done in house (internal department) or outsourced (hire an expert)

Government, opinion polls, associations and businesses use marketing research

Marketing Information Management (MIM)Describe the need of marketing information.

To meet a customer’s needs/wants, a company must know what s/he needs

To better adapt to changing marketsClassify 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 = feelingsMarket 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

MIMDescribe 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 purchasesSales reportsCompany records

Discuss external sources of marketing information.Federal/State/Local governmentPublished reports from other sources (competitors,

industry research, news sources)Trade reports

MIMExplain why marketers should collect

information.To stay ahead of the competitionTo better serve current customersTo successfully expand into new marketsTo better understand the economy’s effect on

its customersAnswers: what should be produced, where it

should be sold, how best to promote product, and at what price to sell the product

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/analyzed

MIMExplain 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 company’s productsBuild sales and profitability

MIM 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 analysisRelevant

Explain the role of marketing-information management in marketing.Helps the company better understand its

current and potential customers

MIM SystemDescribe limitations of marketing-information

management systemsBenefits 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 moneyThe 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 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?

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 interpretation

Information collected unethically must be handled according to the law

Ethics in MIMExplain 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 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 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”

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 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

TechnologyDiscuss 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 suggestions

TechnologyExplain 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 General and specialized libraries Search engines for finding specific sites or

information Paid 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 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.

TechnologyDescribe 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

properlyCan be set up to give the information in a

specified format

VocabularyDefine the following terms: Self-Regulation – The company or industry enforces

its own rules for interacting with its customersThere aren’t any specific laws or government

regulations concerning that company’s or industry’s products

SUGGINGSelling 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

FRUGGINGFundraising 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 FRUGGinghttp://www.dmnews.com/sugging-and-fruggin

g-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-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 survey

Any researcher failing to follow the self-regulation guidelines will be punished or expelled from the association

PrivacyDiscuss 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 August 21, 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 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 IssuesDiscuss 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 IssuesDescribe 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 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)

Test ReviewAn 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 ReviewCookies 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.