4.03 Acquire foundational knowledge of marketing- information management to

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!