Remaining Chapter 6 Notes


Big data

Big data refers to the extremely large amount of information created and collected every day.

Examples of sources include:

  • Point-of-sale systems

  • Social media

  • Mobile location data

  • Surveys

  • Internet-connected devices

  • Online searches

  • Streaming services

  • Company databases

Big data is described using the three Vs:

  • Volume: The amount of data.

  • Velocity: How quickly data is created and collected.

  • Variety: The different types and sources of data.

Big data can help companies better understand customers, employees, and markets.

Marketing information

Marketing information is information about customers, markets, and competitors.

It helps companies:

  • Identify market opportunities.

  • Understand customer needs.

  • Recognize company strengths and weaknesses.

  • Evaluate threats in the external environment.

  • Make strategic and day-to-day decisions.

Marketing information may also be called:

  • Marketing intelligence

  • Business intelligence

  • Competitive intelligence

Marketing research does not guarantee customer satisfaction, but it helps companies make better-informed decisions.

Marketing information system

A marketing information system, or MIS, collects, analyzes, and reports information for marketing decisions.

An MIS uses:

  • Internal company data

  • External data

  • Customer information

  • Market information

  • Competitive information

The system helps marketers organize data and use it to support the company’s marketing activities.

External data

External data comes from outside the organization.

Examples include:

  • Customer service surveys

  • Competitor websites

  • Social media comments

  • News articles

  • Journal articles

  • Industry information

  • Online databases

External data can help companies understand customers, competitors, and the overall market. Some external data may require payment or take time to collect.

Internal data

Internal data already exists within the company’s own databases.

Examples include:

  • Sales records

  • Pricing information

  • Promotional results

  • Product launch information

  • Research and development information

  • Logistics information

  • Coupon redemption rates

  • Sales volume at different prices

Internal data helps a company understand what worked in the past and where it failed to meet its goals.

Databases

A database is a collection of related information.

A company may have separate databases for:

  • Customers

  • Employees

  • Sales

  • Products

  • Alumni

  • Suppliers

A database allows an organization to store and organize information so it can be used for decision-making.

Competitive intelligence

Competitive intelligence is the collection and analysis of information about competitors and the marketplace.

Companies may study competitors’:

  • Products

  • Prices

  • Advertising

  • Distribution channels

  • Customer reviews

  • Websites

  • Strengths and weaknesses

Competitive intelligence helps a company understand why customers may choose a competitor instead of its own product.

Ethical marketing research

Ethical marketing research protects participants and presents information honestly.

Researchers should:

  • Protect personal information.

  • Keep data confidential.

  • Avoid misleading participants.

  • Report findings objectively.

  • Avoid fabricating or changing responses.

  • Separate research from selling.

  • Explain how information will be used.

Companies should balance the value of customer data with people’s rights to privacy.

Deceptive research practices

Deceptive research occurs when researchers mislead participants or misuse research information.

Examples include:

  • Pretending to conduct research when the real goal is selling.

  • Using persuasive wording to influence answers.

  • Presenting data in a biased way.

  • Adding fake responses to change the results.

  • Selling or sharing participants’ information without permission.

Sugging

Sugging means “selling under the guise of research.”

It happens when someone claims to be conducting research but is actually collecting information to sell products or encourage purchases.

Research and selling should be kept separate.

Privacy

Privacy means protecting participants’ personal information and keeping it from being misused.

Researchers should protect data using:

  • Passwords

  • Firewalls

  • Secure databases

  • Locked physical storage

Participants may worry that their information could be leaked, connected to their identity, or used for identity theft.

Confidential data

Confidential data includes identifying information, but the researcher promises not to share it with others.

For example, a researcher may use a customer or membership number to match information while keeping the person’s identity private.

Anonymous data

Anonymous data does not include identifying information.

Because no identifying information is collected, the participant cannot be connected to the responses.

Breach of confidentiality

A breach of confidentiality happens when researchers misuse or improperly share participants’ information.

Examples include:

  • Selling personal information

  • Sharing contact information

  • Connecting specific answers to a named individual

  • Using personal data for a different purpose than originally explained

Chapter 6 spotlight: LEGO

LEGO conducted marketing research with thousands of parents and children in several countries.

The research examined how gender stereotypes affected children’s play with LEGO products.

The research helped LEGO:

  • Understand how children and parents viewed its products.

  • Identify concerns about gender stereotypes.

  • Develop a campaign encouraging girls to challenge traditional views about gender and play.

This example shows how marketing research can help a company understand customers and make decisions based on evidence.