About 'information system major'|...When a foreign entity compromised the computer system of a major university, the bureau contacted the school’s information- technology administrators, who denied...
1.Compare and contrast direct marketing with traditional marketing. Be sure to include a labeled illustration of the direct marketing cycle and the traditional marketing cycle in your answer. Direct marketing is selling to selected individuals which may be identified by preferred customers or other similar mail lists. Traditional marketing is selling to the masses identified by broad groups such as geographical location or income groups. Direct marketing has the benefit of products going directly to the customer this does not typically happen in traditional marketing. In direct marketing the medium is the marketplace and in traditional marketing the retail outlet typically is. In direct marketing marketing controls product through to delivery. In traditional marketing the marketer loses control as product enters distribution channel. In direct marketing advertising is used for an immediate purchase decision. Traditional marketing advertising occurs over an extended period of time and the purchase decision is deferred. Repetition is used in both types of marketing, but occurs in single promotion with direct marketing. In traditional marketing it occurs by multiple promotion pieces over a specific period of time. Customers have a higher risk purchase in direct marketing with product unseen and resource distant. In traditional marketing customer feel less risk and has direct contact with product as well as resource. The Direct Marketing Cycle Response and/or Transaction Traditional Marketing Cycle Indirect Channel Direct Channel 2.The primary terms to explain direct marketing are measurability, accountability lists and databases. Briefly explain each of these terms and describe the marketing activities of a real-world direct marketer using the above terms. Measurability is how a marketer determines how successful their campaign is. This may be done by simply calculating sales. With the combination of catalogs certain codes can be used to determine how successful a certain product or promotion is done. This will usually be done using some kind of computer program. Acoountibility lists are a big part of direct marketing. These lists may be considered mailing lists of current and best customers. This is an effective marketing strategy as it allows direct marketers to advertise towards customer that are most likely to purchase. Also these lists might be readers of a certain magazine. Also a company may have several lists to separate customers into different groups so they can market accordingly. Databases are usually used in conjunction with lists. Databases allows companies to store certain information about individual customers. It may also be the use of databases that allows companies and direct marketers to separate customers into different groups or mailing lists. Furthermore databases can be used to sort customers for any other reasons and see similar characteristics like zip codes. 3. Overview the history and growth of direct marketing. Be sure to address significant events that have occurred along the way. It's reported that the first mail order catalogs occurred in England as early as 1667. Benjamin Franklin was also a pioneer in catalogs with a published catalog in 1744. Then we moved into the birth period of mail order catalogs a succession of catalogs followed. 1893 was a notable date as Sears produced their first catalog and became a real front runner. By 1902 sales from Sears exceeded $50 million each year. There was also another type of mail order coming in and increasing in popularity. Originally as a way of getting books to the masses book of the month clubs. Today a lot of these type of clubs are aided by the Internet. There is also a lot more such as alcohol and gift baskets amongst others. Next came print media as marketing was more accessible to individual groups. The front runners in print were Sports Illustrated, Organic Gardening and The Wall Street Journal. Readers of these publications not only present reader lists, but also an opportunity to market into specific segments Market segmentation also started to occur in broadcast media. This is usually done by special tv and radio programing geared towards certain marketing segments. 1961 was a key date in electronic media with the introduction of direct response promotions and toll free calling. The telephone has in general been a terrific medium for direct marketers. Not to mention the advancement of the Internet which has made direct marketing quicker response and more innovative. This in turn led to the E- Commerce economy there are now some many ways for consumers to respond to direct marketing. The main ones are computer, telephone and television. One of the pioneers of direct marketing online is Amazon.com using customers reviews and links to similar products and titles from same author and more. Through multichannel marketing direct marketers are beginning to use the Internet to advertise. For instance customers can now request a catalog directly from a companies website. The problem is the direct marketer is only reaching a small amount of the target market this way. 4. Identify and explain the five technological and social advances that have contributed to the growth of direct marketing. Printing technology has been a massive advancement especially in the advent of mail order catalogs. Printers have come down in price and now many businesses can easily produce their own direct mailing pieces such as newsletters or other direct mailing pieces. Credit Cards have been a massive help to direct marketing. Since first appearing in 1950 mail ordering have seen a massive increase. Today they are the most popular method for online shopping, so the progress in still happening. Personal Computers have been a fantastic invention for direct marketers. Humans are more prone to make errors, but computers have certainly helped that. Also computers can be used to make more professionally looking direct marketing pieces and easy record keeping for customers. Customers can easily be stored in databases and also direct mailing lists. Changing Consumer Lifestyles are having a big impact. The simple fact of the matter is that people don't have as much time as they use to and want to spend time at home with their families. Direct marketing for mail order and Internet allows for more success. Customer also enjoy the freedom and convenience this brings. Negative Aspects of Retailing has a major impact. This is related to the above entry, people don't enjoy the negative aspects of shopping in malls. Limited parking spaces and being crowded causes consumers to prefer to shop from the convenience of their own home. 5.Discuss the typical users of direct marketing and explain why it is used. It is easy to see why direct marketing is used as it's direct and personal. It's easy to see if the marketing is successful by if or not the consumer make a purchase request or decision. Everyone users direct mail at some time or another even as non business individual by the sending of birthday cards or wedding invitations. Most commonly and frequently users are listed below: Periodical publishers Food stores and distributors Mail Order houses Department stores Book and record publishers Automotive manufactures Book and stationary stores Newspaper publishers Home furnishing stores Insurance companies Credit card companies Financial institutions 6.Compare and contrast the Standard Industrial Classification System with the North American Industrial Classification System. SIC codes classify establishments by the type of activity in which the primarily business is engaged. NAICS codes are based on production-orientated, supply based or conceptual framework. SIC is a 4 digit code and NAICS is a 6 digit code. SIC system lacked current information. NAICS will be reviewed every five years so classifications will change with the economy. SIC classifying sectors: Agriculture, Forestry and Fishing Mining Construction Manufacturing Transportation, Communication and Public Utilities Wholesale Trade Retail Trade Finance, Insurance and Real Estate Services Public Administration NAICS classifying sectors: Agriculture, Forestry, Fishing and Hunting Mining Construction Manufacturing Utilities Transportation and Warehousing Wholesale Trade Retail Trade Accommodation and Food Services Finance and Insurance Real Estate and Rental and Leasing Information Professional, Scientific, and Technical Services Administrative Support; Waste Management and Remediation Services Educational Services Health Care and Social Assistance Arts, Entertainment and Recreation Other Services not including Public Administration Public Administration Management of Companies and Enterprises 7.Identify and fully explain the five bases for market segmentation as used by direct marketers. Geographic Segmention is arguably the easiest way to segment a market. Quite simply consumers are divided into groups based on their physical location. Obviously there are several ways of going about this such as zip codes, area codes and towns and cities. Possibly for some larger organizations by state. These days this type of segmentation is done more scientifically by using tools such as GPS. Another popular way to segment a market is through demographics. These is dividing a market based of physical facts. Most commonly these are age, gender and income although there are many more. In this type of Segmention it's important to gather as much demographic information as possible to ensure segmentation occurs in the correct way. Social factor segmentation is a little different as it applies to likes and dislikes. A market can be segmented based of consumers making similar purchases. Also reference groups maybe used here, a reference group would be a consumers closest friends, family and other social group. A reference group is the group of people they are likely to consult and/or consider before a purchase. Direct marketers may segment a market based of similar reference groups. My marketing to consumers of similar likes certain products can be targeted. Psychographic Segmentation is information about someone that is most personal. Included in these are values and beliefs. This may be used for marketers to target certain religious groups of people or other buyer behavior type characteristics. Behavioral Market Segmention especially applies to Internet shopping where consumers can be targeted based of their previous purchase decisions. Cookies are used to track previous online purchases. Many online retailers have got smart and started recommended products that are similar to ones the consumer has bought previous. 8.Detail the three criteria the U.S. Postal Service uses in establishing a ZIP Code. A hub city is at the center of each cluster of ZIP code areas that is the natural center of local Transportation. An average of 40 to 75 individual post offices lie within each sectional center, resulting in units with fairly consistent population destiny. Each natural transportation hub is about 2 to 3 hours driving time away from the farthest post office in the sectional center. 9.Name and discuss the three basic types of lists used by direct marketers. House lists in basic terms are the lists of an organizations customers which are both active as well as inactive. House lists are often the most productive mailing lists available in terms of future response Response lists are lists of those customers who have responded to another direct marketer offer. Obviously in highly competitive industries the product is often very similar so these lists can be very useful. The most useful of these types of lists will be the ones from direct competitors. Complied Lists are lists that are usually generated by a third party or market research firm. These lists do not have a response history and are typically just general lists. Examples are telephone directory lists, high school/college roster lists and voters lists. 10.Fully discuss the direct marketing list industry. Be sure to name and explain each of the key players in the list industry. There is little question that lists are very useful and are widely used by nearly every direct marketer. List owners are those who describe and acquire prospects who show potential of becoming customers. Lists are often very valuable resources are often are sold for a lot of money especially the highly regarded ones. These days these lists are sold in electronic format. List brokers are companies who create the marketplace they bring the buyers and the sellers together. List brokers typically provide the following services: Find new lists Verify information Report on performance Check instructions Clear offer Check mechanics Clear mailing date Work out timing Ensure delivery date List managers assume the responsibility on behalf of list owners of keeping in contact with list brokers and list users. They perform the advertising ans sales functions and often maintain the lists they manage in their own facility. Like list brokers they receive a small commission from list owners. Organization that gather information about data for these lists are known as list compilers. List compilers own these lists they have compiled from a variety of sources such as newspaper clippings and directories and then sell them on. Finally service bureaus provide more technical services such as data processing, data mining, outsourcing, on-line analytical processing and other services to support the interchange of lists. |
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