Transcript Strauss_5e_06

Chapter 6 Objectives
6-2
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After reading Chapter 6, you will be able to:
 Identify the three main sources of data that emarketers use to address research problems.
 Discuss how and why e-marketers need to check the
quality of research data gathered online.
 Explain why the internet is used as a contact
method for primary research and describe the main
internet-based approaches to primary research.
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Chapter 6 Objectives, cont.
6-2
 Describe
several ways to monitor the Web for
gathering desired information.
 Contrast client-side, server-side, and real-space
approaches to data collection.
 Highlight four important methods of analysis that emarketers can apply to data warehouse
information.
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The Purina Story
6-3
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Nestle Purina PetCare wanted to know whether their
Web sites and online advertising increased off-line
behavior.
Nestle Purina developed 3 research questions:
 Are
our buyers using our branded Web sites?
 Should we invest in other Web sites?
 If so, where should we place the advertising?
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The Purina Story, cont.
6-4
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They combined online and off-line shopping panel data
and found that:
Banner click-through rate was low (0.06%).
 31% of subjects who were exposed to both online and offline advertising mentioned Purina.
 The high exposure group mentioned Purina more than the
low exposure group.
 Home/health and living sites received the most visits from
their customers.
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Can you think of other Web sites besides petsmart.com
and about.com that would be appropriate for Purina
PetCare ads?
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Data Drive Strategy
6-5
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Organizations are drowning in data.
E-marketers must determine how to glean insights
from billions of bytes of data.
Marketing insight occurs somewhere between
information and knowledge.
Purina, for example, sorts through hundreds of
millions of pieces of data about 21.5 million
consumers to make decisions.
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Marketing Knowledge Management
6-6
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Knowledge management is the process of managing
the creation, use, and dissemination of knowledge.
Data, information, and knowledge are shared with
internal decision makers, partners, channel
members, and sometimes customers.
Examples of the uses of knowledge management
can be found in Exhibit 6.3.
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Uses of Knowledge Management
6-9
Use in the Telecom Industry
Representative Firm
Scanner Check-Out Data Analysis
Call Volume Analysis
Equipment Sales Analysis
Customer Profitability Analysis
Cost and Inventory Analysis
Purchasing Leverage with Suppliers
Frequent-Buyer Program Management
AT&T
Ameritech
Belgacom
British Telecom
Telestra Australia
Telecom Ireland
Telecom Italia
Use in the Retail Industry
Representative Firm
Scanner Check-Out Data Analysis
Sales Promotion Tracking
Inventory Analysis and Deployment
Price Reduction Modeling
Negotiating Leverage with Suppliers
Frequent-Buyer Program Management
Profitability Analysis
Product Selection for Markets
Wal-Mart
Kmart
Sears
Osco/Savon Drugs
Casino Supermarkets
W. H. Smith Books
Otto Versand Mail Order
Amazon.com
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The Electronic Marketing Information System
6-8
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Marketers manage knowledge through a marketing
information system (MIS).
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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, economic environment, etc.
 Marketers use the Net and other technologies to collect
primary data about consumers.
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Source 1: Internal Records
6-9
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Accounting, finance, production, and marketing
personnel collect and analyze data.
 Sales
data
 Customer characteristics and behavior
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Universal product codes
Tracking of user movements through web pages
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Source 2: Secondary Data
6-10
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Can be collected more quickly and less expensively
than primary data.
Secondary data may not meet e-marketer’s
information needs.
 Data
was gathered for a different purpose.
 Quality of secondary data may be unknown.
 Data may be old.
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Marketers continually gather business intelligence by
scanning the macroenvironment.
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Public and Private Data Sources
6-11
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Publicly generated data
 U.S.
Patent Office
 CIA World Factbook
 American Marketing Association
 Wikipedia
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Privately generated data
 comScore
 Forrester
Research
 Nielsen/NetRatings
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Commercial online databases
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Source 3: Primary Data
6-12
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Primary data are information gathered for the first
time to solve a particular problem.
Primary data collection enhanced by the internet:
 Experiments
 Focus
groups
 Observation
 Survey research
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Ethics of Online Research
6-13
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Companies conducting research on the Web often
give respondents a gift or fee for participating.
Other ethical concerns include:
Respondents are increasingly upset at getting unsolicited email requests for survey participation.
 “Harvesting” of e-mail addresses from newsgroups without
permission.
 “Surveys” for the sole purpose of building a database.
 Privacy of user data.
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Monitoring the Social Media
6-14
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Companies must now monitor numerous web pages,
blogs, and photo sites in order to learn what is
being said about their brands or executives.
Companies can hire public relations firms or online
reputation management firms to help.
They can also set up automated monitoring systems
using e-mail, RSS feeds, or special software.
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Other Technology-Enabled Approaches
6-15
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Client-side Data Collection
 Cookies
 Use
PC meter with panel of users to track the user
clickstream.
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Server-side Data Collection
 Site
log software
 Real-time profiling tracks users’ movements through a
Web site.
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Real-Space Approaches
6-16
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Data collection occurs at off-line points of purchase.
Real-space techniques include bar code scanners and
credit card terminals.
Catalina Marketing uses the UPC for promotional
purposes at grocery stores.
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Marketing Databases & Data Warehouses
6-17
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Product databases hold information about product
features, prices, and inventory levels; customer
databases hold information about customer
characteristics.
Data warehouses are repositories for the entire
organization’s historical data, not just for marketing
data.
Data are stored in the data warehouse system and
used for analysis by marketing decision makers.
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Data Analysis and Distribution
6-18
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Four important types of analysis for marketing
decision making include:
 Data
mining
 Customer profiling
 RFM (recency, frequency, monetary value) analysis
 Report generating
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Knowledge Management Metrics
6-19
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Two metrics are currently in widespread use:
 ROI:
total cost savings divided by total cost of the
installation.
 Total Cost of Ownership (TCO): includes cost of
hardware, software, labor, and cost savings.
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