Marketing and Advertising Name: _____________________Chapter 5-2 Finding and Managing Marketing Information

VocabularyInternal Information: information developed from activities that occur within the organization______________________

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External Information: provides an understanding of factors outside of the organization_____________________________

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Marketing Information Systems (MkIS): an organized method of collecting storing analyzing and retrieving information to improve the effectiveness and efficiency of marketing decisions_____________________________________________

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Input: information that goes into the system that is needed for decision making__________________________________

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Storage: involves the resources used to maintain information, including equipment and procedures, so that it can be used when needed___________________________________________________________________________________

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Analysis: process of summarizing, combining, or comparing information so that decisions can be made________________

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Output: result of analysis given to decision makers__________________________________________________________

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Sources of Market Information

Business People need Information to make marketing decisions. The process can be summarized in the following steps

1. Identify the types of info needed

2. Determine the available sources of each type of info

3. Evaluate each source to determine if it meets the organization’s needs in terms of accuracy, time detail, and cost

4. Select the sources that best meet the identified needs

5. Enter the information into a marketing information system

Marketing can come from ___one of three_____________ sources: __internal__________ sources, __________external_____ sources, and ______marketing____________ research.

Internal Information SourcesA great deal of ____information__________ flows through a business. Much of it is useful for ____________marketing____ decision making.

Consumer Records and Sales InformationMany companies keep a ____complete_______________ record of all transactions they have with a _________customer______. They record what is _____purchased_________, the __________date________ of purchase, and the _____________quantities_____ purchased.

Marketing and Advertising Name: _____________________Businesses need an ______understanding________________ of customer needs, interests, and attitudes. They need to know _____how____________ customers make buying decisions, such as where they gather ____information_______________, what choices they considered, ___________where_________ they decide to purchase and when.

Production and Operations ReportsProduction and operations activities are ___________important__________ to marketing. Products and services must be ______________available________ when ________customers___________ want them.

Information about production and operations activities is _______collected________________, but it might not be ______shared________ regularly with the people ______planning______________ marketing activities.

Performance InformationPerformance is typically measured in one of three ways: Name them:

Records of past performance; Current sales or costs can be compared to those of a previous month or year

Compare performance with other businesses

Comparison of actual performance with expected/planned performance

External Information Sources: Identify several examples of each type of external informationGovernment ReportsUS Bureau conducts a complete census of the country’s population, an excellent source to learn about the number of

people and important characteristics of individuals and households in specific areas of the country

Trade and Professional AssociationsAmerican management association and the national association of professional and executive women, provide services

for people in particular job categories

Business PublicationsBusiness pub like business newspapers and magazines like wall street journal, forbes, and businessweek

Commercial Data and Information ServicesExperian, Equifax, and Transunion three major credit reporting agencies for consumer credit. Dun and bradstreet has the

largest worldwide business database.

Marketing and Advertising Name: _____________________Marketing Information Systems

Managing information

Designing a Marketing Information System

See Figure 5-2 – Create a visual graphic that represents each of the 5 elements of a MkIS

Input Storage Analysis Output Decision Making

When planning a Marketing Information System (MkIS) several questions need to be answered. See Figure 5-3 for each of the questions and their answers, complete the following chart

Designing a MkISQuestion MkIs ElementWhat information is needed to develop and implement the marketing strategy? input

How should the information be maintained so it is in a usable form, secure, and easy to access when needed?

Storage

What methods should be used to organize and study the information in order to make it effective marketing decisions?

analysis

How and when should the information be made available for most effective use? output

What ways should the information be used to improve marketing? Decision making

Reinforcement Questions:

What are the three general categories of information needed by business for effective marketing decisions? List three items for each category. (See 5-1)

Consumers, marketing mix, business environment. Age gender income etc, basic products guarantees services, tax policies proposed laws new technology

Marketing and Advertising Name: _____________________What are the key difference between internal and external market information?

Name several advantages for using external information sources while conducting market research. Examples are governmental reports or trade and professional association information.

What are the five elements of an effective marketing information system?

Input, storage, analysis, output, decision making

Why is careful planning important when considering the storage element of a MkIS?

Obtain info, organize, and complete needed analysis