1. Managing the Information Copyright © Texas Education Agency, 2011. All rights reserved.

2. Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1) 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. 2 Copyright © Texas Education Agency, 2011. All rights reserved.

3. Collection of Data Information Gathered Through Marketing Research-valuable for businesses Information Gathered Through Marketing Research-valuable for businesses Information must be collected, stored, and analyzed before it is useful. Information must be collected, stored, and analyzed before it is useful. Quality and validity of the data collected are critical to the usefulness of the information. Quality and validity of the data collected are critical to the usefulness of the information. 3 Copyright © Texas Education Agency, 2011. All rights reserved.

4. Data Mining Part of marketing research Part of marketing research Powerful computers are used to dig up data needed to make decisions. Powerful computers are used to dig up data needed to make decisions. 4 Copyright © Texas Education Agency, 2011. All rights reserved.

5. ACNIELSEN Research Based on actions rather than opinions Based on actions rather than opinions Input, storage, and analysis is done electronically Input, storage, and analysis is done electronically Estimates the number of people by selecting a sample of the total market and then records the viewing habits of people in the sample Estimates the number of people by selecting a sample of the total market and then records the viewing habits of people in the sample Uses 10,000 households as the representative sample of the 109.6 million U.S. households with televisions Uses 10,000 households as the representative sample of the 109.6 million U.S. households with televisions 5 Copyright © Texas Education Agency, 2011. All rights reserved.

6. ACNielsen Sports Identifies households by their interest in professional sports Identifies households by their interest in professional sports Uses 125,000 households that make up a consumer panel Uses 125,000 households that make up a consumer panel Links a household’s interest in pro sports to its purchases of specific brands and products and even to specific stores where household members shop Links a household’s interest in pro sports to its purchases of specific brands and products and even to specific stores where household members shop Nielsen households serve voluntarily as part of the sample. Nielsen households serve voluntarily as part of the sample. 6 Copyright © Texas Education Agency, 2011. All rights reserved.

7. Cookies Electronic marketers gather information about visitors to their web sites by using cookies. Electronic marketers gather information about visitors to their web sites by using cookies. Cookie-a small data file that is placed on the hard drive of a web site visitor that collects and reports data on the visitor. Cookie-a small data file that is placed on the hard drive of a web site visitor that collects and reports data on the visitor. 7 Copyright © Texas Education Agency, 2011. All rights reserved.

8. Cookies The cookie tracks how often the computer is used to visit the site, where visitors go within the site, which ads they view and click on, where they clicked from to get to the site. The cookie tracks how often the computer is used to visit the site, where visitors go within the site, which ads they view and click on, where they clicked from to get to the site. Knowing customers’ interests and habits allows companies to better focus on what customers want. Knowing customers’ interests and habits allows companies to better focus on what customers want. 8 Copyright © Texas Education Agency, 2011. All rights reserved.

9. Consumer Privacy Decisions based on data can help customers make the right choices and business become more successful Decisions based on data can help customers make the right choices and business become more successful Data must be collected and used with care. Data must be collected and used with care. 9 Copyright © Texas Education Agency, 2011. All rights reserved.

10. Consumer Privacy Protection of customers’ privacy and their right to know how their personal information is being used are key issues being addressed by the industry and federal legislation. Protection of customers’ privacy and their right to know how their personal information is being used are key issues being addressed by the industry and federal legislation. 10 Copyright © Texas Education Agency, 2011. All rights reserved.

11. Consumer Privacy There is great concern about marketing information gathered from children. There is great concern about marketing information gathered from children. Security of credit card information is a concern for Internet shoppers. Security of credit card information is a concern for Internet shoppers. Internet usage is growing at a tremendous rate. Internet usage is growing at a tremendous rate. The entertainment industry is working to collect data about who is stealing from its members. The entertainment industry is working to collect data about who is stealing from its members. 11 Copyright © Texas Education Agency, 2011. All rights reserved.

12. Copyright Technology is used to notify the copyright holder of every use of a movie on a digital TV set and the copyright holder is notified if the movie is transferred or viewed on a computer. Technology is used to notify the copyright holder of every use of a movie on a digital TV set and the copyright holder is notified if the movie is transferred or viewed on a computer. 12 Copyright © Texas Education Agency, 2011. All rights reserved.

13. Data-Driven Decisions Every day customers and marketers use data to make decisions. Every day customers and marketers use data to make decisions. Businesses need information about customers to make sure they are offering the right marketing mix. Businesses need information about customers to make sure they are offering the right marketing mix. Customers look at product ratings, descriptions, and prices to help them make product choices. Customers look at product ratings, descriptions, and prices to help them make product choices. 13 Copyright © Texas Education Agency, 2011. All rights reserved.

14. Ranking the Ads Internet sites, like Google, are search engines used by individuals to find relevant web sites. Internet sites, like Google, are search engines used by individuals to find relevant web sites. Google is funded by sponsors that advertise on the site. Google is funded by sponsors that advertise on the site. 14 Copyright © Texas Education Agency, 2011. All rights reserved.

15. Ranking the Ads Google ranks or positions advertisements on its search-results pages based on the amount companies are paying for the ads and based on data collected by Google. Google ranks or positions advertisements on its search-results pages based on the amount companies are paying for the ads and based on data collected by Google. Click-through rate is determined by dividing the number of times an ad is clicked on by the number of times an ad is shown (effectiveness of the ad is immediately known). Click-through rate is determined by dividing the number of times an ad is clicked on by the number of times an ad is shown (effectiveness of the ad is immediately known). 15 Copyright © Texas Education Agency, 2011. All rights reserved.

16. Inventory Control Having merchandise when customers need it Having merchandise when customers need it Using technology for inventory control Using technology for inventory control Using technology to automatically order merchandise to restock the retail business Using technology to automatically order merchandise to restock the retail business 16 Copyright © Texas Education Agency, 2011. All rights reserved.