CHAPTER 5 Marketing- Information Management - Cengage

1 Kaser-oelkers_0538445157_Ch05, 1/22/7, 16:6, page: Need for theInformationPHOTO AT LEFT NUBOARD MEDIA SPORTS PROMOTIONK aser-oelkers_0538445157_Ch05, 1/22/7, 16:7, page: 121 NuBoard Media Sports PromotionThere is always down time at sporting events between innings and athalftime. James Allegro acted on an idea for a creative, targeted, andmeasurable sports sponsorship opportunity that maximizes sponsorshipbranding 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 withthe advertiser s logo right in front of fans during the entire Media has patented a nonresidue adhesive used to attachplastic bags to the seat backs in sport s venues.

2 The adhesive is similar tothat used on sticky notes. NuBoard Media prints 12-inch-square ads on theplastic bags. It then stuffs the bags with the sponsor s promotional materialsor product samples for the seat holders to view and take with has clients in four of the major professional sports leagues NFL,NBA, MLB, and NHL as well as major college bowl games. Fans quicklyopen the bags after PA announcements are made about possible winninggame pieces included inside of them. During the game, fans have ampletime to look at the ads and examine the contents of the bags. This burns thesponsor s brand name into their memory. A much higher percentage of fanscan recall the event sponsors featured on the bags compared to those ontraditional signage or other media.

3 Most bags go home with the fans assouvenirs of the game, keeping the message alive long after the advertisers quickly receive marketing - Information feedback. Theyknow how many people were reached by the advertising by the number ofpeople in attendance at the game. The response rate may be determinedfrom the number of coupon redemptions and additional hits on the web siteprinted on the advertising. The high reach and response rates keep adver-tisers coming back as repeat NuBoard Media Critically1. What features make NuBoard s promotional media more effective thantraditional media?2. How could event sponsors use NuBoard s promotional media to make astronger connection with people who are already their customers?

4 How could they collect data from repeat customers?121 Kaser-oelkers_0538445157_Ch05, 2/28/7, 12:54, page: 122 Lesson Need for SpeedyInformationThe Need for SpeedyInformationGoals Explain the purpose of marketing - Information Management . Describe careers in marketing - Information DATAC onsumers have many choices when it comes to spendingtheir discretionary income. Sports and entertainmentbusinesses compete to gain a share of the total potentialmarket. To gain market share, businesses must obtaininformation in a timely manner about their potentialcustomer s wants and researchis conducted to gather dataand identify solutions to marketing Is Buying?Developing a product or service can be an expensive undertaking.

5 Inthe motion picture industry, each step from writing a movie script todistributing and marketing the finished product can add up to millionsof dollars. According to the Motion Picture Association of America, theaverage film in 2005 cost $ million to make and market. If the movie isa flop, the investors have lost their money. Smart investors want marketinginformation about what consumers want to view and the public s opinionMarketing research firms conduct surveys to help theirclient companies determine public opinions about currentissues and people. Advertisers and filmmakers mayuse the survey Information to decide which actors tocast to draw the most favorable public public opinion of a celebrity is low, thepublic is less likely to attend a movie in whichthe celebrity stars.

6 Between 2005 and 2006,telephone interviews were conducted with1,013 adults over age 18. The interviews revealed thatfavorable opinions of Tom Cruise plummeted from58 percent to 31 percent over the one-year time feared that the dramatic drop would meanreduced attendance at movies starring the with a what might cause acelebrity s appeal to dramatically change in a positiveand in a negative way. syndicated research polls engaged customers client-side researchers122 CHAPTER 5 marketing - Information MANAGEMENTK aser-oelkers_0538445157_Ch05, 1/22/7, 16:8, page: 123of a celebrity before they invest. Research conducted by an independentcompany and then offered for sale to everyone in an industry is calledsyndicated research.

7 Research data are collected and managed electroni-cally, allowing current data to be viewed instantly worldwide and used tomake CustomersPollsare surveys of people s opinions. The Gallup Organization is an inter-national marketing research firm that uses special software to conduct Information is used to help client companies move customers beyondjust being satisfied with the product or service to being totally engagedwith the company s product and customersare repeatcustomers who are completely loyal to the company s products and his bookThe Loyalty Effect: The Hidden Force Behind Growth, Profits, andLasting Value, author Frederick F. Reichheld stresses that loyal customersgreatly increase a companies profits.

8 Reichheld states that it is five times asexpensive to attract the business of new customers as it is to retain theloyalty of current customers. Gathering and managing marketing informa-tion provides businesses a deeper understanding of their customers, which isessential to a business s growth and do businesses need marketing Information ?CAREERS IN MARKETINGRESEARCHM arketing researchers acquire and manage marketinginformation. Media companies, including those of televi-sion, motion pictures, radio, print, and the Internet, hiremarketing researchers to collect data about their audiencesas well as their competition. They track sales of movietickets, videos, DVDs, newspapers, and books, as well as the characteristicsof people who are buying them.

9 They monitor where and how advertisingmoney is being spent. The Information collected is used to provide clientswith recommendations about promotion, distribution, design, and Research FirmsAccording to the Department of Labor, the number of careers in mar-keting research will increase by 18 to 26 percent through 2014 much fasterthan the average growth expected for other occupations. Most marketingresearchers are employed in large cities and generally need an advancedcollege degree, such as a master s degree. Researchers like to explore new ideasand look for trends. To gain experience, researchers usually begin their careersas entry-level associates who assist with conducting surveys and compilingreports based on collected data.

10 Often, a company will have an insideTime OutTime OutUSA Todayconducts surveysthrough mail-inand online votingthat determinethe survival oftelevision 32,000 peoplevote to save or kill shows that areunder considerationfor cancellation bytheir NEED FOR SPEEDY Information Lesson , 3/6/7, 16:4, page: 124marketing researcher who coordinates the company s research needs throughoutside marketing research firms. When staff researchers work with externalresearch agencies, they are referred to asclient-side researchers, becausethey are employees of the are hundreds of companies that specialize in marketing focus their research on specific market segments. ACNielsen is a majormarketing research firm that was founded in 1923.