Using Technology to Manage Information http://www.wileybusinessupdates.com Chapter 14 1 Distinguish between data, information, and information systems. List the components and types of information systems. Discuss computer hardware and software. Describe computer networks. 1 Learning Objectives Discuss the security and ethical issues affecting information systems. Explain disaster recovery and backup. Review information systems trends. 2 3 4 5 6 7 2 Data– raw facts and figures Information– knowledge gained from processing data Information system– organized method for collecting, storing, and communicating information on operations Chief information officer– executive responsible for directing information systems and operations Information Systems 3 Computer Hardware Computer Software Telecommunications and Computer Networks Data Resource Management Components of Information Systems 4 Operational Support Systems Transaction Processing System Process Control System Management Support Systems Management Information System (MIS) Decision Support System (DSS) Executive Support System (ESS) Types of Information Systems 5 The tangible elements of a computer system The components that store and process data, perform calculations Input devices like the keyboard and mouse allow users to enter data and commands. Storage and processing components consist of the hard drive and other storage components like flash drives. Computer Hardware 6 Desktop (personal) computers Server Mainframes Supercomputers Notebook computers Handheld devices– tablets and e-readers Types of Computers 7 Programs, routines, and computer languages that control a computer Operating System Windows Operating System Mac Operating System Application Software Microsoft PowerPoint Quicken Computer Software 8 The Internet Local Area Networks (LAN) Wide Area Networks (WAN) Wireless Local Networks (Wi-Fi) Intranets Virtual Private Networks (VPN) Voice over Internet Protocol (VoIP) Computer Networks 9 E-Crime Computer Viruses Worms Trojan Horses Spyware Security Issues 10 Use of information systems by employees and vendors: Personal use Privacy Organizational use of information: Employment records Employee monitoring Customer data Ethical Issues 11 Natural Disasters Power Failures Equipment Malfunctions Software Glitches Human Error Terrorist Attacks The most basic precaution– backup. Disaster Recovery and Backup 93% of firms that lost their data centers for ten days or more went bankrupt within one year. 12 The Distributed Workforce Employees who work in virtual offices Application Service Providers A firm that provides computers and application support On Demand, Cloud, and Grid Computing Renting software time Information Systems Trends 13 Promotion and Pricing Strategies http://www.wileybusinessupdates.com Ch ...

1. Using Technology to Manage Information
http://www.wileybusinessupdates.com
Chapter
14
1
Distinguish between data, information, and information
systems.
List the components and types of information systems.
Discuss computer hardware and software.
Describe computer networks.
1
Learning Objectives
Discuss the security and ethical issues affecting information
systems.
Explain disaster recovery and backup.
Review information systems trends.

2. 2
3
4
5
6
7
2
Data– raw facts and figures
Information– knowledge gained from processing data
Information system– organized method for collecting, storing,
and communicating information on operations
Chief information officer– executive responsible for directing
information systems and operations

3. Information Systems
3
Computer Hardware
Computer Software
Telecommunications and Computer Networks
Data Resource Management
Components of Information Systems
4
Operational Support Systems
Transaction Processing System
Process Control System
Management Support Systems
Management Information System (MIS)
Decision Support System (DSS)
Executive Support System (ESS)

4. Types of Information Systems
5
The tangible elements of a computer system
The components that store and process data, perform
calculations
Input devices like the keyboard and mouse allow users to enter
data and commands.
Storage and processing components consist of the hard drive
and other storage components like flash drives.
Computer Hardware
6
Desktop (personal) computers
Server
Mainframes
Supercomputers

5. Notebook computers
Handheld devices– tablets and e-readers
Types of Computers
7
Programs, routines, and computer languages that control a
computer
Operating System
Windows Operating System
Mac Operating System
Application Software
Microsoft PowerPoint
Quicken

6. Computer Software
8
The Internet
Local Area Networks (LAN)
Wide Area Networks (WAN)
Wireless Local Networks (Wi-Fi)
Intranets
Virtual Private Networks (VPN)
Voice over Internet Protocol (VoIP)
Computer Networks
9
E-Crime
Computer Viruses
Worms
Trojan Horses
Spyware

7. Security Issues
10
Use of information systems by employees and vendors:
Personal use
Privacy
Organizational use of information:
Employment records
Employee monitoring
Customer data
Ethical Issues
11
Natural Disasters
Power Failures
Equipment Malfunctions
Software Glitches
Human Error

8. Terrorist Attacks
The most basic precaution– backup.
Disaster Recovery and Backup
93% of firms that lost their data centers for ten days or
more went bankrupt within one year.
12
The Distributed Workforce
Employees who work in virtual offices
Application Service Providers
A firm that provides computers and application support
On Demand, Cloud, and Grid Computing
Renting software time
Information Systems Trends
13

9. Promotion and Pricing Strategies
http://www.wileybusinessupdates.com
Chapter
13
1
Discuss integrated marketing communications (IMC).
Describe the different types of advertising.
Outline the tasks in personal selling.
Name and describe sales promotion activities.
1
Learning Objectives
Discuss publicity as a promotional tool.
Discuss pricing objectives and strategies.
2

10. 3
4
5
6
2
Promotion is informing, persuading, and influencing a purchase
decision.
Integrated marketing communications (IMC) is the coordination
of all promotional activities—media advertising, direct mail,
personal selling, sales promotion, and public relations—to
produce a unified, customer-focused promotional strategy
Promotion

11. 3
Create unified personality and message for the good, service, or
brand.
Elements include personal selling, advertising, sales promotion,
publicity, and public relations.
Integrated Marketing Communications
4
Objectives of Promotional Strategies
5
Pushing strategy- personal selling to market an item to

12. wholesalers and retailers in a company’s distribution channels.
Companies promote the product to members of the marketing
channel, not to end users.
Pulling strategy- promote a product by generating consumer
demand for it, primarily through advertising and sales
promotion appeals.
Potential buyers will request that their suppliers—retailers or
local distributors—carry the product, thereby pulling it through
the distribution channel.
Most marketing situations require combinations of push and pull
strategies
Pushing and Pulling Strategies
6
Promotional mix- combination of personal and nonpersonal
selling activities designed to meet the needs of their firm’s
target customers and effectively and efficiently communicate its
message to them.

13. Promotional Mix
7
Components of Promotion
8
Advertising- paid nonpersonal communication usually targeted
at large numbers of potential buyers.
Advertising expenditures are great– spending on global
advertising is expected to reach $518 billion as the economy
grows stronger
Consumers are bombarded with many messages.
Firms need to be more and more creative and efficient at getting
consumers’ attention.

14. Different Types of Advertising
9
Product advertising- messages designed to sell a particular good
or service
Product placement- marketers pay placement fees to have their
products showcased in various media, ranging from newspapers
and magazines to television and movies.
Types of Advertising
10
Institutional advertising- messages that promote concepts,
ideas, philosophies, or goodwill for industries, companies,
organizations, or government entities
Cause advertising- institutional advertising that promotes a
specific viewpoint on a public issue as a way to influence public

15. opinion and the legislative process
Types of Advertising Continued
11
Informative advertising- builds initial demand for a product in
the introductory phase
Persuasive advertising- attempts to improve the competitive
status of a product, institution, or concept, usually in the growth
and maturity stages
Comparative advertising- type of persuasive advertising;
compares products directly with their competitors either by
name or by inference
Reminder-oriented advertising- appears in the late maturity or
decline stages to maintain awareness of the importance and
usefulness of a product
Advertising and the Product
Life Cycle

16. 12
Advertising Media Pie
13
Television
Easiest way to reach a large number of consumers
Internet Advertising
Search engine marketing, display ads, classified ads
Changed nature of advertising
Newspapers
Dominate local advertising
Relatively short life span
Radio
Commuters in cars are a captive audience
Internet radio offers new opportunities

17. Types of Advertising
Magazines
Consumer publications and trade journals
Can customize message for different demographics of readers
Direct Mail
Average American receives 550 pieces annually
E-mail is a new lost cost form of direct mail
Outdoor Advertising
$6.4 billion annually
Majority billboards, but marketers are exploring new technology
Sponsorship
14
Online and Interactive Advertising
Viral advertising creates a message that is novel or entertaining
enough for consumers to forward it to others, spreading it like a
virus.
Sponsorship
Providing funds for a sporting or cultural event in exchange for
a direct association with the event.
Benefits: exposure to target audience and association with
image of the event.
Types of Advertising
15

18. A person-to-person promotional presentation to a potential
buyer
Many companies consider personal selling the key to marketing
effectiveness.
A seller matches a firm’s goods or services to the needs of a
particular client or customer.
Today, sales and sales-related jobs employ about 15 million
U.S. workers.
Businesses often spend five to ten times as much on personal
selling as on advertising.
Personal Selling
16
Order Processing
Identifying customer needs, pointing them out to customers, and
completing orders; mostly at the wholesale and retail levels
Creative Selling
Persuasive type of promotional presentation
Missionary Selling
Indirect form of selling in which the representative promotes
goodwill for a company or provides technical or operational
assistance to the customer

19. Telemarketing
Personal selling conducted entirely by telephone, which
provides a firm’s marketers with a high return on their
expenditures, an immediate response, and an opportunity for
personalized two-way conversation
Sales Tasks
17
The Sales Process
18

20. Prospecting, Qualifying, and Approaching
A good salesperson varies the sales process based on customers’
needs and responses.
Prospecting- identifying potential customers
Qualifying- identifying potential customers
Approaching- analyzing available data about a prospective
customer’s product lines and other pertinent information
19
Presentation and Demonstration
Presentation
Salespeople communicate promotional messages. They may
describe the major features of their products, highlight
the advantages, and cite examples of satisfied consumers.
Demonstration
Reinforces the message that the salesperson has been
communicating.
20

21. Handling Objections and Closing
Use objections as an opportunity to answer questions and
explain how the product will benefit the customer.
The closing is the critical point in the sales process.
Even if the sale is not made, the salesperson should regard the
interaction as the beginning of a potential relationship.
21
Follow-Up
An important part of building a long-lasting relationship.
May determine whether the customer will make another
purchase.
22

22. Sales promotion- consists of activities that support advertising
and personal selling, such as samples, coupons, displays, trade
shows, and dealer incentives.
Sales Promotion Activities
23
Premiums, Coupons, Rebates, Samples
Nearly six of every ten sales promotion dollars are spent on
premiums—items given free or at a reduced price with the
purchase of another product
Coupons persuade customers to try a new or different product
with small price discounts
Rebates increase purchase rates, promote multiple purchases,
and reward product users.
A sample is a gift of a product distributed by mail, door to door,
in a demonstration, or inside packages of another product

23. Consumer-Oriented Promotions
24
Trade Promotion - sales promotion geared to marketing
intermediaries rather than to consumers
Encourage retailers:
To stock new products
To continue carrying existing ones
To promote both new and existing products effectively to
consumers
Trade-Oriented Promotions
25
Public relations- an organization’s communications and
relationships with its various audiences.
Is an efficient, indirect communications channel for promoting
products. It can publicize products and help create and maintain
a positive image of the company.
Publicity- nonpersonal stimulation of demand for a good,
service, place, idea, event, person, or organization by unpaid
placement of information in print or broadcast media.

24. Good publicity can promote a firm’s positive image.
Negative publicity can cause problems.
Publicity as a Promotional Tool
26
Price- exchange value of a good or service.
Market Based Pricing
Economic theory assumes price where the amount of the product
demanded the amount supplied are equal
In these instances, consumers choose products based on
attributes rather than price
Firms set their prices higher or lower than this market price to
achieve specific business goals.
Volume objectives
Base pricing decisions on market share, the percentage of the
market controlled by a certain company or product.
Pricing Objectives

25. 27
Prestige Pricing
Establishing a relatively high price to develop and maintain an
image of quality and exclusiveness.
Recognition of the role of price in communicating an overall
image for the firm and its products.
Pricing Strategies
28
Everyday low pricing (EDLP)
Maintaining continuous low prices rather than relying on short-
term price-cutting tactics such as cents-off coupons, rebates,
and special sales
Skimming pricing
Setting an intentionally high price relative to the prices of
competing products
Helps marketers set a price that distinguishes a firm’s high-end
product from those of competitors
Penetration pricing
Setting a low price in effort to enter competitive markets
Often used with new products

26. More Pricing Strategies
29
Formulas that calculate total costs per unit and then add
markups to cover overhead costs and generate profits.
TOTAL COSTS PLUS MARKUP
Cost-Based Pricing
30
Breakeven analysis- pricing technique used to determine the
minimum sales volume a product must generate at a certain
price level to cover all costs.

27. Break-Even Analysis
31
Break-Even Analysis
32