Lecture 1 and 2 Flashcards
Data deluge
Overwhelming amount of data is generated and collected at such a rapid pace that it becomes challenging to process, manage, and make sense of efficiently
Storage capacity
Amount of data a system can store (measure with MB, GB etc.)
Human resources
Workforce or personnel
Digital assets
Files, documents, software, and data with value
Technological and analysis development
Advancement in tools, methods, and technologies to enhance data processing, analysis, and decision-making capabilities
Small Data (micro-data)
Elementary data, easy to analyze, collected for specific objectives. Result of consesus or sample survey. Used to measure scale of phenomenon. Not available in real time.
Open Data (administrative data)
Publicly accessible data that anyone can use (ex. government released statistics), certified and free. Don’t cover entire territory, so it’s not fit for comparing, although it can help with the decision-making process. Generally not available in real time.
Big Data
Huge and constantly growing sets of data generated unconsciously (ex. Google analyzing searches to improve algorithms). Characterized by variety and lack of structure. Unofficial and without certification model. Accessible in real time.
7V model
Volume
Velocity
Variety
Value
Veracity
Validity
Visualization
Volume
How much data we have.
Velocity
The speed at which the data is processed and redistributed.
Variety
Types and formats of data (ex. structured, unstructured).
Value
Value of data.
Veracity
Accurateness of data.
Validity
Validity of data / importance.
Visualisation
Way of representing data (ex. charts).
Social Data
Data obtained through social networking and interactions. It helps to understand social behavior and identify key influencers and trading topics. It changes quickly and frequently. (ex. likes, shares, comments topics, etc.)
Features of Data (new data, new sources)
Relevance
Accessibility
Reliability
Comparability
Completeness
Timeliness
Periodicity
Quality
Relevance
Data should meet user needs and include meaningful measurements.
Accessibility
Information should be clean and easy to obtain.
Reliability
Data should be accurately reflected in reality.
Comparability
Data must be compatible with other sources for side-by-side comparisons.
Completeness
Data are often not available for some regions or groups.
Timeliness
Data should be released soon after collection.
Periodicity
Data should be regularly updated.
Quality
Emphasis on producing high-quality statistical data.
Decision-Making Process
Decision-making based on analyzed data.
Information System
Pays crucial role in transforming raw data into knowledge that can be used in the decision-making process.
Information Gap -> Design -> Data Collection -> Data Storage -> Data Analysis -> Information Sharing -> DECISION
Design (inf. system)
Initial phase where organization defines its Information needs and identifies sources. The goal is to ensure that data being collected is relevant to the organization’s decision-making process.
Data Collection (inf. system)
Gathering data through various methods such as the ** internet**, database, networking, and surveys.
Data Storage (inf. system)
Once data is collected, it needs to be stored in manageable format such as paper or electronic files or videos.
Data Analysis (inf. system)
The most crucial phase where raw data is processed and analyzed using descriptive techniques, scenarios, models and forecasts. This step converts raw data into useful insights, helping companies generate the knowledge needed for making decisions.
Information Sharing (inf. system)
Analyzed data and insights is shared with decision-makers through presentations, newsletters, intranet and email.
Three Pillars of Information System
People
Technology
Data
Technology (3 Pillars of Inf. System)
- key factor for an efficient and effective data management in the information system
- innovations in technology increases the speed of managing tasks in organizations
People (3 Pillars of Inf. System)
- engine of the system
- provides useful data
- to fully exploit the potential of human resources, people should know the details about the company
Data (classification by source) (3 Pillars of Inf. System)
Data Classification by Source:
– Internal Data: Generated within the organization (e.g., product costs, advertising budgets, client data).
– External Data: Available from outside sources (e.g., public statistics, industry analyses, macro-economic forecasts).
Data (classification by purpose) (3 Pillars of Inf. System)
Data Classification by Purpose:
– Primary Data: Collected specifically to address the problem at hand.
– Secondary Data: Previously collected for a different purpose.
Advantages of Secondary Data
– Easy to access
– Cost-effective
– Quick to obtain
Disadvantages of Secondary Data
– May not fit the problem’s objectives or methods
– Potential issues with accuracy, completeness, timeliness, and reliability
Uses of Secondary Data
– Define and approach the problem
– Design research strategies
– Address research questions and test hypotheses
– Support interpretation of primary data
Criteria for Evaluationg Secondary Data
- Specification / Methodology (Methods)
- Error / Accuracy
- Currency (Frequency)
- Objective
- Nature
- Dependability
Internal Data
Data generated and used within an organization. Internal sources are often the first step when seeking secondary data, as organizations typically have extensive in-house information.
Benefits of Internal Data
- Readily available
- Cost-effective, often the least expensive source
Types of Internal Data
- Operational Data: Sales figures, financial reports
- Client Database: Demographics, size, purchase history
- Loyalty Card Data: Links customer behavior with demographics
- Customer Relationship Management (CRM): Insights into customer behavior
- Web Analytics: Tracks website visitor activity
Classification of External Data
PUBLISHED
- General Business Source (guides; statistical data)
- Government Sources (consensus data; other government publications)
DATABASE
SYNDICATED SERVICES
Classification of External Data (Published - General Business Source)
Guides are helpful for identifying other valuable sources of business information.
Statistical data provides essential insights into market trends and consumer behavior.
Classification of External Data (Database)
Bibliographic lists citations from journals, magazines, reports, and government documents (e.g., ABI/Inform).
Directory contains data on individuals, organizations, and services (e.g., CERVED, CONSODATA).
Media tracks advertising investments (e.g., NIELSEN).
Classification of External Data (Syndicated Services)
Panels and Surveys
Syndicated sources are marketing research services that provide information from a shared database to multiple subscribing firms. These companies collect and sell data pools of known commercial value, designed to meet the common information needs of their clients.
Classification of External Data (Syndicated Services - Home Panels)
Home panels track the same group of people or households over time, though the information collected may vary. They help:
- Compare data over time.
- Avoid memory-related errors in data.
- Study smaller, similar groups within the panel.
Households regularly share data on everyday products like groceries and non-durable goods. Main providers: Nielsen and GFK.
Classification of External Data (Syndicated Services - Point of Sales Panels)
This panel uses a sample of stores like supermarkets, restaurants, bars, traditional shops, and pharmacies. Stores can be grouped by:
- Region
- Town size
- Store type and size
- Brand (Banner)
Data is collected electronically (e.g., scan data) each month and includes:
- Sales (volume and value)
- Prices
- Promotions
Classification of External Data (Syndicated Services - Media Panels)
Media panels use electronic devices called Meters to automatically record TV viewing habits. These devices are installed on every TV in selected households and track:
- What program or channel is being watched?
- Who is watching?
Daily viewing data is stored in the device and automatically retrieved each night for processing. The results are shared with the TV industry and other clients the following day.
In Italy, Auditel is the main media panel, covering 16,000 households and 41,000 individuals.
Classification of External Data (Syndicated Services - Surveys)
Psychographics and Lifestyles:
Surveys focus on behavioral preferences, personalities, values, attitudes, interests, and opinions.
General Survey:
These surveys cover a wide range of topics, such as:
- Purchase and consumption behavior
- Shopper behavior
- Media consumption and reading habits.
Market Survey:
Surveys provided by market research firms specializing in business intelligence, including reports on:
- Market size and trends
- Industry analysis and forecasts
- Consumer and technological trends
- Reports and estimates are based on the analysis of multiple sources, including expert opinions.
Advantages and disadvantages of Survey
Pros:
Flexible in design.
Can target specific groups..
Cons:
Responses may not match actual behavior.
High potential for errors in the data..
Advantages and disadvantages of Panel
Pros:
Tracks changes over time (longitudinal data).
Reduces human errors with electronic devices..
Cons:
Might not represent the broader population accurately.
Participants may change over time (maturation).
Data can be affected by response biases..
Marketing Intelligence Data
Marketing intelligence provides updates on the market environment using internal and primary data. For example, sales representatives gather information about competitors’ promotions, new products, or customer behavior and strategies. This data is often collected through informal activities.
Ad-hoc Survey Data
Ad-hoc surveys are needed when secondary data (internal or external) are unavailable (so it’s primary external data) or don’t meet specific information needs. It is a formal process of collecting data outside the company to help make a specific business decision. The process follows a series of steps, which will be covered in the next lessons.
Definition of Marketing Research
Marketing research is the process that connects consumers and the public to marketers through information. It helps to:
- Identify and define marketing opportunities and problems.
- Generate, refine, and evaluate marketing actions.
- Monitor marketing performance.
- Improve understanding of marketing as a process.
Marketing research specifies what information is needed, designs how to collect it, manages the collection process, analyzes the results, and communicates the findings and their implications (American Marketing Association).
