MIM Vocabulary

1. 4.03 Acquire foundational knowledge of marketing-information management to understand its nature and scope. (Intermediate)

2. MIM Vocabulary Define the following terms: 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 needs – links consumer, customer and public to marketer

3. MIM Need We need of marketing information to: • To meet a customer’s needs/wants, a company must know what s/he needs • To better adapt to changing markets

4. Marketers Should Collect Information to: • To stay ahead of the competition • To better serve current customers • To successfully expand into new markets • To better understand the economy’s effect on its customers • Answers: • what should be produced • where it should be sold • how best to promote product • what price to sell the product

5. Using Marketing Research • Formal (procedural or strategic) VS Informal (unplanned) • In house (internal department) VSOutsourced (External or hire an expert) • Primary (first) VS Secondary (existing) • Government, opinion polls, associations and businesses use marketing research

6. Internal VS External Internal • Customer surveys • Sales people feedback • Database of customers and their purchases • Sales reports • Company records External • Federal/State/Local government • Published reports from other sources (competitors, industry research, news sources) • Trade reports

7. Primary Vs. Secondary Marketing Information Primary: information the company collects directly from its own surveys. • first time collected • expensive Secondary: information the company collects from other sources (libraries, online, Federal publications, etc.) • desk research • already exists

8. 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

9. Types of Information Marketers Should Obtain Customer: • preferences and opinions • Buying habits (how often a customer repurchases) Competitors: • actions • effects on potential customers Companies Message: • Is the correct message getting to the customers?

10. Characteristics Of Useful Marketing Information • Can be interpreted correctly • Accurate • Relevant (current and useful) Useful informationhelps make wise business decisions. • All business decisions are based on the information collected and how that info is interpreted/analyzed

11. Functions of a MIM 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 • Helps the managers make good business decisions • expand/delete a product line, enter new markets, set pricing and service policies, etc._

12. Marketing Research VS MIM What is the difference between Marketing Research and MIM? • Research is the collecting of data • MIM system can include research but also is responsible for assisting with making decisions

13. Benefits of MIM • Happier customers • Less threat from competitors • Higher profits (in the long-run)

14. Limitations of a MIM System • 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)

15. Credibility and Ethics in MIM Credibility: can be trusted (Is it accurate?) Objectivity: bias in what is collected • Company ask Questions • 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?

16. Integrity in MIM Integrity: adhering to high moral principles or professional standards • Personal information 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

17. Ethical Conflicts and Competitors Unethical • Sharing confidential information • Corporate spying (illegal) • Use of competitors information obtained unethically Ethical • Use published data about competitors that is available for public use

18. MIM Ethics and Technology • May not be used to obtain information that the company has no right to • Companies must protected from inappropriate use or distribution • 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”- computer figure prints

19. Technology in MIM Using Technology for Research • Makes it easier to collect and store certain information • Information can be analyzed using specialized software • Many more details can be tracked Monitoring Websites • Use of “cookies” • Accurate count of hits to a website

20. B2C Communications and the Web • Computers track details well • Software can provide reminders to customers • Customers can access company websites • Customers can join online groups / submit opinions / suggestions EX: e.g., email reminders, popup notices, online focus groups, etc.

21. Conducting research on the Web 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

22. Virtual Realties and Simulations • Marketers use games and online simulations • engage the customer and glean preference information • Customers can make choices based on preset simulations • information can be recorded to help the company better understand the mind of the consumer.

23. Global Positioning Systems (GPS)in MIM GPS helps companies understand who is making the buying decisions • Facebook location tagging • Google maps on a smart phone • Smart Phones

24. Data Analysis Software • Specialized software allows data to be analyzed properly • Can be set up to give the information in a specified format

25. Define thefollowing 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

26. 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

27. Self-regulation • High standards are set in the way information is collected and handled • Protects the industry because customers will trust the people giving the survey • Failing to follow the self-regulation guidelines will be punished or expelled from the association

28. Privacy • 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

29. Legal Issues w/ Minors Under 18 Years Old Companies must be careful about collecting personal information • buying preferences and opinions are fine  • personal data must be very carefully handled  • Leaking or passing out information 

30. Health-care Legal Issues- Collection and Sharing HIPAA- Health Insurance Portability and Accountability Act August 21, 1996 • Use and disclosure of Protected Health Information (PHI). • Health status • Provision of health care • Individual's medical record • Payment for health care or payment history • Companies mustdisclose PHI when required to do so by law: • Reporting suspected child abuse to state child welfare agencies • Spread of infectious diseases

31. Financial Institutions Legal Issues Must protect information obtained by customers and applicants from theft or unauthorized use : • Social Security Numbers (SSN) • Bank account numbers • Customer data Misuse of Financial Information may result in: • Criminal prosecution • Fines • Identity theft

32. Pornography Legal Issues CAN-SPAM Act (Controlling the Assault of Non-Solicited Pornography And Marketing Act of 2003) • use their collected is for only the intended purpose FTC (Federal Trade Commission ) & self-regulation • get permission before sending marketing messages

33. Callback Legal Issues • 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. EX: • Medical call back (HIPAA) • School call about grades • Spoofing

34. Automatic Dialers Legal Issues Automated Dialers- computers with speech recognition software. • A customer could inadvertently give personal, protected, information that must then be removed or stored separately

35. Privacy/Data Security Legislation Rules and laws are being updated to ensure the protection of identities • Marketing researchers must consider state, federal, and international laws when collecting data to aviod: • Legal liabilities • Fines • Criminal prosecution • Sanctions