CHAPTER 5 Marketing- Information Management

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5

MarketingInformation

Management

5.1

The Need for Speedy

Information

5.2

The Marketing

Research

Process

5.3

Managing the

Information

PHOTO AT LEFT ? NUBOARD MEDIA SPORTS PROMOTION

C H A P T E R

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NuBoard Media Sports Promotion

There is always down time at sporting events between innings and at

halftime. James Allegro acted on an idea for a creative, targeted, and

measurable sports sponsorship opportunity that maximizes sponsorship

branding and marketing-information feedback. James, his brother Frank,

and Kevin Lilly turned a simple idea, which capitalizes on the down time,

into a patented marketing bonanza. Imagine 70,000 mini-billboards with

the advertiser¡¯s logo right in front of fans during the entire game.

NuBoard Media has patented a nonresidue adhesive used to attach

plastic bags to the seat backs in sport¡¯s venues. The adhesive is similar to

that used on sticky notes. NuBoard Media prints 12-inch-square ads on the

plastic bags. It then stuffs the bags with the sponsor¡¯s promotional materials

or product samples for the seat holders to view and take with them.

NuBoard has clients in four of the major professional sports leagues¡ªNFL,

NBA, MLB, and NHL¡ªas well as major college bowl games. Fans quickly

open the bags after PA announcements are made about possible winning

game pieces included inside of them. During the game, fans have ample

time to look at the ads and examine the contents of the bags. This burns the

sponsor¡¯s brand name into their memory. A much higher percentage of fans

can recall the event sponsors featured on the bags compared to those on

traditional signage or other media. Most bags go home with the fans as

souvenirs of the game, keeping the message alive long after the game.

The advertisers quickly receive marketing-information feedback. They

know how many people were reached by the advertising by the number of

people in attendance at the game. The response rate may be determined

from the number of coupon redemptions and additional hits on the web site

printed on the advertising. The high reach and response rates keep advertisers coming back as repeat NuBoard Media clients.

Think Critically

1.

What features make NuBoard¡¯s promotional media more effective than

traditional media?

2.

How could event sponsors use NuBoard¡¯s promotional media to make a

stronger connection with people who are already their customers?

How could they collect data from repeat customers?

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Lesson 5.1

The Need for Speedy

Information

Goals

? Explain the purpose of marketing-information management.

? Describe careers in marketing-information management.

Terms

? syndicated research

? polls

? engaged customers

? client-side researchers

Marketing research firms conduct surveys to help their

client companies determine public opinions about current

issues and people. Advertisers and filmmakers may

use the survey information to decide which actors to

cast to draw the most favorable public response.

If public opinion of a celebrity is low, the

public is less likely to attend a movie in which

the celebrity stars. Between 2005 and 2006,

telephone interviews were conducted with

1,013 adults over age 18. The interviews revealed that

favorable opinions of Tom Cruise plummeted from

58 percent to 31 percent over the one-year time period.

Filmmakers feared that the dramatic drop would mean

reduced attendance at movies starring the celebrity.

Work with a group. Discuss what might cause a

celebrity¡¯s appeal to dramatically change in a positive

and in a negative way.

REACHING

FOR DATA

Consumers have many choices when it comes to spending

their discretionary income. Sports and entertainment

businesses compete to gain a share of the total potential

market. To gain market share, businesses must obtain

information in a timely manner about their potential

customer¡¯s wants and needs. Marketing research is conducted to gather data

and identify solutions to marketing problems.

Who Is Buying?

Developing a product or service can be an expensive undertaking. In

the motion picture industry, each step¡ªfrom writing a movie script to

distributing and marketing the finished product¡ªcan add up to millions

of dollars. According to the Motion Picture Association of America, the

average film in 2005 cost $96.2 million to make and market. If the movie is

a flop, the investors have lost their money. Smart investors want marketing

information about what consumers want to view and the public¡¯s opinion

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of a celebrity before they invest. Research conducted by an independent

company and then offered for sale to everyone in an industry is called

syndicated research. Research data are collected and managed electronically, allowing current data to be viewed instantly worldwide and used to

make decisions.

Engaging Customers

Polls are surveys of people¡¯s opinions. The Gallup Organization is an international marketing research firm that uses special software to conduct polls.

The information is used to help client companies move customers beyond

just being satisfied with the product or service to being totally engaged

with the company¡¯s product and service. Engaged customers are repeat

customers who are completely loyal to the company¡¯s products and services.

In his book The Loyalty Effect: The Hidden Force Behind Growth, Profits, and

Lasting Value, author Frederick F. Reichheld stresses that loyal customers

greatly increase a companies profits. Reichheld states that it is five times as

expensive to attract the business of new customers as it is to retain the

loyalty of current customers. Gathering and managing marketing information provides businesses a deeper understanding of their customers, which is

essential to a business¡¯s growth and success.

Time Out

USA Today

conducts surveys

through mail-in

and online voting

that determine

the survival of

television shows.

Over 32,000 people

vote to ¡®¡®save¡¯¡¯ or

¡®¡®kill¡¯¡¯ shows that are

under consideration

for cancellation by

their television

networks.

Why do businesses need marketing information?

CAREERS IN MARKETING

RESEARCH

Marketing researchers acquire and manage marketing

information. Media companies, including those of television, motion pictures, radio, print, and the Internet, hire

marketing researchers to collect data about their audiences

as well as their competition. They track sales of movie

tickets, videos, DVDs, newspapers, and books, as well as the characteristics

of people who are buying them. They monitor where and how advertising

money is being spent. The information collected is used to provide clients

with recommendations about promotion, distribution, design, and pricing.

Marketing Research Firms

According to the U.S. Department of Labor, the number of careers in marketing research will increase by 18 to 26 percent through 2014¡ªmuch faster

than the average growth expected for other occupations. Most marketing

researchers are employed in large cities and generally need an advanced

college degree, such as a master¡¯s degree. Researchers like to explore new ideas

and look for trends. To gain experience, researchers usually begin their careers

as entry-level associates who assist with conducting surveys and compiling

reports based on collected data. Often, a company will have an inside

THE NEED FOR SPEEDY INFORMATION Lesson 5.1

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E-mail is a fantastic way for marketers to communicate

their message, but everyday, cybercrooks are devising

new ways to use e-mail to defraud gullible people.

Official-looking messages con recipients into linking to

fake sites where they are asked to donate money and/or

give personal information that will be used for identity

theft. Often, e-mail attachments will

unleash vicious computer worms that

imbed the victim¡¯s computer

with malicious code that will

cause the computer to crash.

Because of cyber criminals, consumers have become leery

of opening any e-mail from unfamiliar addresses. The

criminals often use psychological ploys and tricks to fool

victims into opening the e-mails and attachments. Viruses

will often access a victim¡¯s address book before causing

the computer to crash, and it will send replicas of itself by

e-mail to everyone listed. The e-mails will appear to be

coming from a trusted friend.

Think Critically

In what ways does cybercrime impact the use of the

Internet for marketing? List some ideas for preventing

cybercrimes.

marketing researcher who coordinates the company¡¯s research needs through

outside marketing research firms. When staff researchers work with external

research agencies, they are referred to as client-side researchers, because

they are employees of the client.

There are hundreds of companies that specialize in marketing research.

Some focus their research on specific market segments. ACNielsen is a major

marketing research firm that was founded in 1923. It is now a global consumer expert serving more than 9,000 client businesses. ACNielsen is most

known for its TV audience ratings, but it has a number of divisions. The

Nielsen Entertainment division is further divided into businesses that focus

on segments of the entertainment industry, such as television or films.

On the Job

ACNielsen has over 21,000 employees worldwide that fill a large variety of

job types. The director of marketing position requires a bachelor¡¯s degree and

experience in marketing or marketing research. A master¡¯s degree in business

administration (MBA) is a plus, since the primary objective of the position is

to ¡®¡®drive profitable revenue¡¯¡¯ for the assigned products. The director¡¯s team

tracks sales, analyzes advertising data, helps plan media campaigns, and much

more. The director manages the team, makes presentations, creates schedules

and action plans, develops training materials, and is the main contact for

information. Organization skills, communication and presentation skills, and

proficiency in word processing, database, and presentation software are

needed to be successful in the position.

Describe some of the job functions of a marketing researcher.

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