Transcript Document

Market Communications &
Branding - Part 2
CPS 181s
Feb 18, 2003
Internet Marketing
Technologies
Web transactions logs
 Cookies
 Web bugs
 Databases, data warehouses, data
mining, and profiling
 Advertising networks
 Internet Marketing Technologies
 Customer Relationship Management
(CRM) systems

Impact of Unique Features of
eCommerce Technology on Marketing
Page 361, Table 7.6
Web Transaction Logs
Records
user activity at a Web site
Registration forms gather personal data
on name, address, phone, zip code, email address, and other optional selfconfessed information on interests and
tastes
Shopping cart database captures all the
item selection, purchase, and payment
data
A Web Transaction Log From AzimuthInteractive.com
Page 362,
Figure 7.12
Marketing Uses of Data From Web
Transaction Logs
Page 363, Table 7.7
Questions That Can Be Answered
by Web Transactions Logs
What are the major patterns of interest
and purchase for groups and
individuals?
 After the home page, where do most
users go first, and then second and
third?
 What are the interests of specific
individuals (those we can identify)?
 How can we make it easier for people to
use our site so the can find what they
want?

Questions That Can Be Answered
by Web Transactions Logs
How
can we change the design of the
site to encourage visitors to purchase
our high margin products?
Where are visitors coming from (and
how can we optimize our presence on
these referral sites)?
How can we personalize our messages,
offerings, and products to individual
users?
Cookies
Cookie
is a small text file that Web sites
place on visitor’s client computers every
time they visit, and during the visit, as
specific pages are visited.
Cookies provide Web marketers with a
very quick means of identifying the
customer and understanding his or her
prior behavior http://privacy.net/anonymizer
Cookies Placed by Amazon.com
Page 365,Figure 7.13
Web Bugs
 Web
bugs are tiny (1 pixel) graphic files hidden in email messages and on Web sites
 Web bugs are used to automatically transmit
information about the user and the page being viewed
to a monitoring server
 The
type of browser that fetched the Web bug image
 The time the Web bug was fetched
 The IP address of the computer that fetched the Web bug
 The URL of the main Web site
 The URL of the Web bug image located on the hidden Web
site
 A previously-set cookie value
Databases, Data Warehouses, and
Data Mining
Database
is a software application that
store records and attributes
Database management system (DBMS) is
a software application used by
organizations to create, maintain, and
access databases
SQL is an industry standard database
query and manipulation language used in
relational databases
Databases, Data Warehouses, and
Data Mining
Relational databases represent data as
two-dimensional tables with records
organized in rows and attributes in
columns; data within different tables can
be flexibly related so long as the tables
share a common data element
 Data warehouse is a database that
collects a firm’s transactional and
customer data in a single location for
offline analysis

A Relational Database View of
eCommerce Customers
Page 369, Figure 7.14
Databases, Data Warehouses,
and Data Mining
Data
mining is a series of analytical
techniques that look for patterns in the
data of a database or data warehouse,
or seek to model the behavior of
customers
Customer profile is simply a description
of the typical behavior of a customer or a
group of customers at a Web site
Query-driven data mining is data mining
based on specific queries
Databases, Data Warehouses,
and Data Mining

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
Model-drive data mining involves the use of a
model that analyzes the key variables of interest to
decision makers
Role-based data mining examines demographic
and transactional data of groups and individuals at
a Web site and attempts to derive general rules of
behavior for visitors
Collaborative filtering is where site visitors classify
themselves into affinity groups characterized by
common interests; products are then
recommended based on what other people in the
group have recently purchased
Advertising Networks
Present
users with banner
advertisements based on a database of
user behavioral data
Ad server selects an appropriate banner
ad based on the user’s previous
purchases, interests, demographics, or
other data in the profile
How an Advertising Network
such as DoubleClick Works
Page 374, Figure 7.15
Customer Relationship
Management Systems
A repository
of customer information that
records all of the contacts that a
customer has with a firm and generates
a customer profile available to everyone
in the firm with a need to “know the
customer”
Customer Relationship
Management Systems

Customer profiles can contain


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map of customer’s relationship with the institution
Product and usage summary data
Demographic and psychographic data
Profitability measures
Contact history summarizing the customers
contacts with the institution across most delivery
channels
Marketing and sales information containing
programs received by the customer and the
customer’s responses
A Customer Relationship
Management System
Page 376, Figure 7.16
Customer Service Tools:
Frequently asked questions (FAQ) is a
text-based listing of common questions
and answers, provide an inexpensive way
to anticipate and address customer
concerns
 Real-time customer service chat systems,
in which a company’s customer service
representatives interactively exchange
text-based messages with one or more
customers on a real-time basis

Customer Service Tools
Automated
response systems send email order confirmations and
acknowledgements of e-mail inquiries
Net Pricing Strategies
Pricing, putting a value on goods and
services, is an integral part of marketing
strategy
 Demand curve is the quantity of goods
that can be sold at various prices

Fixed costs are the costs of building the
production facility
 Variable costs are the costs involved in
running the production facility

Net Pricing Strategies
Price
discrimination is selling products to
different people and groups based on
their willingness to pay
Net Pricing Strategies
It’s
Free! -- can be used to build market
awareness
Versioning is creating multiple versions
of the good and selling essentially the
same product to different market
segments at different prices
Bundling offers consumers two or more
goods for one price
Net Pricing Strategies
Dynamic
pricing
Auctions
establish the instant market price
for goods
Yield management -- managers set prices
in different markets, appealing to different
segments, in order to sell excess capacity
Online Market Research
Market research involves gathering
information that will help a firm identify
potential products and customers
 Primary research involves gathering
first-hand information using techniques
such as surveys, personal interviews,
and focus groups
 Secondary research relies on existing,
published information as the basis for
analyzing the market

Types of Survey Questions
Page 396, Table 7.8
Some Popular Secondary
Research Tools
Page 399, Table 7.9