Transcript E-Marketing 4/E Judy Strauss, Adel I. El

ELC 310
Day 7
©2006 Prentice Hall
Agenda
• Questions?
• Assignment 2 Graded
• 3 A’s, 2 B’s and 1 C
• Only one more assignment
• Rest of Grade is from Marketing Plan, exams, Case study analysis
and Case study creation
• Exam 1 Graded
• 3 A’s and 3 B’s
• No one got extra credit question
• You should be working on your eMarketing Plans
• Due Oct 31, Presentations on Oct 31
• Suggestions
• Do an eMarketing plan for the Admissions office for your discipline
• Discussion on Marketing Knowledge
©2006 Prentice Hall
Assignment 2
Prepare a two to three page paper (not less than 500 and not
more than 1000 words) that answers the following questions.
What does digital privacy mean to you? (25%)
Does your notion of digital privacy change when
(40%)
a) you are at work?
b) you are at school?
c) you are at home?
d) you are using a publicly accessible computer such as one at
a library?
Is your notion of digital privacy supported by Law? If so, which
ones? (25%)
What actions do you take to protect your digital privacy? (10%)
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The Marketing Information System
• Marketers manage knowledge through a
marketing information system (MIS).
• Many firms store data in databases and data
warehouses.
• The Internet and other technologies have
facilitated data collection.
• Secondary data provides information about
competitors, consumers, the economic
environment, etc.
• Marketers use the Net and other technologies to
collect primary data about consumers.
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6-10
Sources of data: Internal records
• Accounting, finance, production and marketing
personnel collect and analyze data.
• Nonmarketing data, such as sales and advertising
spending
• Sales force data
• Customer characteristics and behavior
• Universal product codes
• Tracking of user movements through web pages
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6-11
1) Customer orders 10
new co mputers.
3) database trends
Sales rep
Where is the
%@#& “on”
switch?
Hmmm, 21% of
customers can’t
find “on” switch.
Customer
Database
4) Redesign computer
switch
2) Customer calls
co mpany
Customer service rep
A hypothetical scenario for a computer company that is learning from its
customers as a whole and using the information to improve products.
E-Marketers Learn From Customers
Source: Adaptation of ideas from Brian Caulfield (2001), “Facing up to CRM” at www.business2.com
©2006 Prentice Hall
Secondary data
• Can be collected more quickly and less
expensively than primary data.
• Secondary data may not meet e-marketer’s
information needs.
• Data were gathered for a different purpose.
• Quality of secondary data may be unknown.
• Data may be old.
• Marketers continually gather business
intelligence by scanning the macroenvironment.
©2006 Prentice Hall
6-12
Public and Private Data Sources
• Publicly generated data
• U.S. Patent Office
• American Marketing Association
• Privately generated data
• Forrester Research
• Nielsen/NetRatings
• Online databases
• Secondary data help marketers understand:
•
•
•
•
•
•
Competitors,
Consumers,
The economic environment,
Political and legal factors,
Technological forces,
Other factors in the macro-environment affecting an organization.
©2006 Prentice Hall
6-13
Public Sources of Data in the U.S.
Web site
Information
Stat-USA
www.stat-usa.gov
U.S. Department of Commerce source of international
trade data.
U.S. Patent Office
www.uspto.gov
Provides Trademark and Patent Data for Businesses.
World Trade Organization
www.wto.org
World Trade Data.
International Monetary Fund
www.imf.org
Provides information on many social issues and
projects.
Securities and Exchange Commission
www.sec.gov
Edgar database provides financial data on U.S. public
corporations.
Small Business Administration
www.sbaonline.gov
Features information and links for small business
owners.
University of Texas at Austin
advweb.cocomm.utexas.edu/world
Ad World with lots of links in the ad industry.
Federal Trade Commission
www.ftc.gov
Shows regulations and decisions related to consumer
protection and anti-trust laws.
U.S. Census
www.census.gov
Provides statistics and trends about the U.S. population.
©2006 Prentice Hall
Sampling of Sources of Privately Generated Data in the U.S.
Web site
Information
AC Nielsen Corporation
www.acnielsen.com
Television audience, supermarket scanner data and more.
The Gartner Group
www.gartnergroup.com
Specializes in e-business and usually presents highlights of its
latest findings on the Web site.
Information Resources, Inc.
www.infores.com
Supermarket scanner data and new product purchasing data.
Arbitron www.arbitron.com
Local-market and Internet radio audience data.
The Commerce Business Daily
www.cbd.savvy.com
Lists of government requests for proposals online.
Simmons Market Research Bureau
www.smrb.com
Media and ad spending data.
Dun & Bradstreet
www.dnb.com
Database on more than 50 million companies worldwide.
Dialog
library.dialog.com
Access to ABI/INFORM, a database of articles from 800+
publications.
Hoovers Online
www.hoovers.com
Business descriptions, financial overviews, and news about
major companies worldwide.
©2006 Prentice Hall
Primary Data
• Primary data = information gathered for the first time to solve a
particular problem.
• When secondary data are not available managers may decide to collect
their own information.
• They are more expensive and time-consuming to gather than secondary
data.
• They are current and more relevant to the marketer’s specific problem.
• They are proprietary = unavailable to competitors.
• Each primary data collection method can provide important information,
as long as e-marketers understand the limitations. Remember that
Internet research can only collect information from people who use the
Internet, which leaves out a huge portion of the population.
©2006 Prentice Hall
Source 3: Primary Data
Electronic sources of primary data collection:
• The Internet:
 Focus groups, observation, in-depth interviews (IDI), and survey
research.
 Online panels: popular survey research method _ single-source
research.
 Real-time profiling at Web sites and computer client-side or serverside automated data collection.
• The real-space
 Refers to technology-enabled approaches to gather information offline
that is subsequently stored and used in marketing databases.
 Techniques = bar code scanners and credit card terminals at brick-andmortar retail stores, computer entry by customer service reps while
talking on the telephone with customers.
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Proportion Using
Firms Using Online Primary Research
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Online
surveys
©2006 Prentice Hall
E-mail
surveys
Online
focus
groups
6-15
Bulletin
Web site
board focus
use
groups
measures
5 Steps for Primary Research
Research
Problem
Primary Research Steps
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Research
Plan
Data
Collection
Data
Analysis
Distribute
Results
Primary Research Steps
1.
Research problem. Specificity is vital.
2.
Research plan.
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Research approach. Choose from experiments, focus
groups, observation techniques, in-depth interviews,
and survey research, or nontraditional real-time and
real-space techniques.
Sample design. Select the sample source and number
of desired respondents.
Contact method. Telephone, mail, in person, via the
Internet.
Instrument design. For survey = a questionnaire. For
other methods = a protocol to guide the data collection.
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Primary Research Steps
3.
Data collection. Gather the information according to
plan.
4.
Data analysis: Analyze the results in light of the original
problem. Use statistical software packages for traditional
survey data analysis or data mining to find patterns and
other information in databases.
5.
Distribute finding / add to the MIS. Research data
might be placed in the MIS database and be presented in
written or oral form to marketing managers.
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Some typical e-marketing research problems
that electronic data can help solve.
Online Retailers
Web Sites
Improve online merchandising
Forecast product demand
Test new products
Test various price points
Test co-brand and partnership
effectiveness
Measure affiliate program effectiveness
Pages viewed most often
Increase site “stickiness” (stay longer)
Test site icons and organization
Path users take through the site—is it
efficient?
Site visit overall satisfaction
Customers and Prospects
Promotions
Identify new market segments
Test shopping satisfaction
Profile current customers
Test site customization techniques
Test advertising copy
Test new promotions
Check coupon effectiveness
Measure banner ad click-through
Typical Research Problems for E-Marketers
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Online Research Advantages &
Disadvantages
• Advantages
• Can be fast and inexpensive.
• Electronic Surveys may reduce data entry errors.
• Respondents may answer more honestly and openly.
• Disadvantages
• Sample representativeness.
• Measurement validity.
• Respondent authenticity.
• Researchers are using online panels to combat
sampling and response problems.
©2006 Prentice Hall
6-17
Other Technology-Enabled Approaches
• Client-side Data Collection
• Cookies
• Use PC meter with panel of users to track the user
clickstream.
• Server-side Data Collection
• Data log software
• Real-time profiling tracks users’ movements through
a web site.
©2006 Prentice Hall
6-18
Real-Space Data Collection, Storage,
and Analysis
• Offline data collection may be combined with
online data.
• Transaction processing databases move data
from other databases to a data warehouse.
• Data collected can be analyzed to help make
marketing decisions.
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Data Mining
Customer Profiling
Recency, Frequency, Monetary (RFM) Analysis
Report Generating
©2006 Prentice Hall
6-19
Marketing Databases and
Data Warehouses
• Regardless of whether data are collected online or offline, they
are moved to various marketing databases.
• Product databases = product features, prices, and inventory
levels.
• Customer databases = customer characteristics and behavior.
• Transaction processing databases are important for moving
data from other databases into a data warehouse.
• Data warehouses:
• Store entire organization’s historical data.
• Designed specifically to support analyses necessary for
decision making.
• The data in a warehouse are separated into more specific
subject areas (called data marts) and indexed for easy use.
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UPC Scanner
Product Database
Transaction Database
Data Warehouse
Customer Database
Real-Space Data Collection and Storage Example
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Data Analysis and Distribution
• Data collected from all customer touch points are:
• Stored in the data warehouse,
• Available for analysis and distribution to marketing
decision makers.
• Analysis for marketing decision making:
• Data mining = extraction of hidden predictive
information in large databases through statistical
analysis. Here, marketers don’t need to approach the
database with any hypotheses other than an interest in
finding patterns among the data.
 Patterns uncovered by marketers help them to:
 Refine marketing mix strategies,
 Identify new product opportunities,
 Predict consumer behavior.
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Data Analysis and Distribution
• Customer profiling = uses data warehouse information to help
marketers understand the characteristics and behavior of specific
target groups.
 Understand who buys particular products,
 How customers react to promotional offers and pricing changes,
 Select target groups for promotional appeals,
 Find and keep customers with a higher lifetime value to the firm,
 Understand the important characteristics of heavy product users,
 Direct cross-selling activities to appropriate customers;
 Reduce direct mailing costs by targeting high-response customers.
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Data Analysis and Distribution
• RFM analysis (recency, frequency, monetary) = scans the database
for three criteria.
 When did the customer last purchase (recency)?
 How often has the customer purchased products (frequency)?
 How much has the customer spent on product purchases (monetary
value)?
=> Allows firms to target offers to the customers who are most
responsive, saving promotional costs and increasing sales.
• Report generators:
 automatically create easy-to-read, high-quality reports from data
warehouse information on a regular basis.
 Possible to specify information that should appear in these automatic
reports and the time intervals for distribution.
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Knowledge Management Metrics
• Marketing research is not cheap:
• Need to weigh the cost of gaining additional information against the
value of potential opportunities or the risk of possible errors from
decisions made with incomplete information.
• Storage cost of all those terabytes of data coming from the Web.
• Two metrics are currently in widespread use:
• ROI. Companies want to know:
• Why they should save all those data.
• How will they be used, and will the benefits in additional revenues or
lowered costs return an acceptable rate on the storage space
investment?
• Total Cost of Ownership (TCO). Includes:
• Cost of hardware, software, and labor for data storage.
• Cost savings by reducing Web server downtime and reduced labor
requirements.
©2006 Prentice Hall