Marketing chapter 5 test

What is a customer club? How are businesses using customer clubs as information tools?

Customer clubs is unique method that offers customers benefits as well as an information tool. They are usuing them as an information tool by doing surveys and getting to know/understand the customers wants, needs, and likes.

A marketing information system

an organized method of collecting, storing, analyzing, and retrieving information to improve the effectiveness and efficiency of marketing decisions.

Internal information

information developed from activities that occur within the organization. ex: - customer records and sales information - production and operation reports - performance information

Storage

involves the resources used to maintain information, including equipment and procedures, so that it can be accessed when needed.

Input

the information needed for decision making that goes into the system.

Analysis

the process of summarizing, combining, or comparing information so that decisions can be made.

Output

the result of analysis provided to decision makers.

implementing a Marketing Research Study

1. define the problem 2. analyze the situation 3. develope a data-collection procedure 4. gather and study information

Sample

A smaller group selected from the population

Population

All of the people in the group the company is interested in studying

Secondary data

Information already collected for another purpose that can be used to solve the current problem

Primary data

Information collected for the first time to solve the problem being studied

Describe the precautions that must be taken when collecting primary data for a market research study.

The precautions that must be taken when collecting primary data for a market research study is to plan in advance, they cannot influence the information, and they have to be careful when gathering directly from people to respect their privacy.

What are the three sources of marketing information? Describe the process a business typically follows as it collects marketing information.

The three sources of marketing information are internal, external, and marketing research. The process they follow is to first identify the types of information needed, determine the available sources of each type of information, evaluate each source to determine if it meets the needs, select the sources that best meet the needs, and lastly enter the information into a marketing information system.

When a marketing research report is being prepared, two items are especially important. Name them and briefly explain why they are so crucial.

The two items that are important in a report are that you must know who will be receiving and studying the report, and the report must clearly describe the purpose of the study and the research procedures followed to collect the information. These are important because it allows the writer to know what to write about in the actual report which will ensure that the information included is accurate and answers all questions needed.

open-ended questions

allows respondents to develop their own answers without information about pos- sible choices.

Survey

a planned set of questions to which individuals or groups of people respond.

Marketing research

a procedure designed to identify solutions to a specific marketing problem through the use of scientific problem solving.

Focus group

a small number of people brought together to discuss identified elements of an issue or problem.

Experiments

carefully designed and controlled situations in which all important factors are the same except the one being studied.

Observations

collects information by recording actions without interacting or communicating with the participant.

Random sampling

everyone in the population has an equal chance of being selected in the sample.

Simulations

experiments where researchers create the situation to be studied.

External information

provides an understanding of factors outside of the organization. ex: - government reports - trade and professional associations - business publications - commercial data and information services

Discretionary purchases

purchases that are not essential, so consumers can decide whether or not to purchase them

closed-ended questions

questions that offer two or more choices as answers

Test markets

specific cities or geographic areas in which marketing experiments are conducted.