day 10 elc 310. copyright 2005 prentice hallch 1 -2 agenda questions? assignment 1 corrected –...

Day 10

ELC 310

Copyright 2005 Prentice Hall Ch 1 -2

Agenda

• Questions? • Assignment 1 Corrected

– Some issues

• Assignment 2 posted . – ELC 310 assignment Two.docx– Internal Data J.R. Bjerklie, Associate Director for

Institutional Research • http://www.umfk.edu/ie/stabstract/default.cfm?ref=6#

– Due Oct 18

• E-Marketing Research con’t• Connected consumers online

http://www.umfk.edu/ie/stabstract/default.cfm?ref=6

E-Marketing/7EChapter 6

E-Marketing Research

©2014 Pearson Education, Inc. publishing as Prentice Hall

Chapter 6 Objectives

• After reading Chapter 6, you will be able to:– Identify the three main sources of data that

e-marketers 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.

– Describe several ways to monitor the Web for gathering desired information.

– Contrast client-side, server-side, and real-space approaches to data collection.

– Explain the concepts of big data and cloud computing.

– Highlight four important methods of analysis that e-marketers can apply to information in the data warehouse.

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• Nestlé Purina PetCare wanted to know whether their Web sites and online advertising increased off-line behavior.

• Nestlé Purina developed 3 research questions:– Are our buyers using our branded Web

sites?– Should we invest beyond these branded

Web sites in online advertising?– If so, where do we place the advertising?

The Purina Story

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The Purina Story, cont.• Online and offline shopping panel data

revealed:– Banner click-through rate was low (0.06%).– 31% of subjects exposed to Purina ads

mentioned the Purina brand compared with 22% of the no-exposure subjects.

– Home/health and living sites received the most visits from their customers.

• The information helped the firm decide where to place banner ads.

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Data Drive Strategy• U.S. marketers spend $6.7B annually on

marketing research; global spend is $18.9B.• E-marketers can generate a great deal of data

by using surveys, Web analytics, secondary data, social media conversations, etc.

• Marketing insight occurs somewhere between information and knowledge.– Data without insight or application to

inform marketing strategy are worthless.

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Big Data

• Big data refers to huge data sets that are difficult to manage and analyze.

• 31% of marketers would like to collect Web data daily.

• 74% collect demographic data; 64% collect transaction data; 35% monitor social media.

• Purina, for example, sorts through hundreds of millions of pieces of data from about 21.5 million consumers to make marketing decisions.

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From Data to Decision: Nestlé Purina

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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.

• A marketing knowledge database includes data about customers, prospects and competitors.

Marketing Knowledge Management

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The Electronic Marketing Information System

• A marketing information system (MIS) is the process by which marketers manage knowledge.– Many firms store data in databases and data

warehouses, available 24/7 to e-marketers.• The internet and other technologies facilitate

data collection.– Secondary data provide information about

competitors, consumers, the economic environment, technology, etc.

– Marketers use the internet and other technologies to collect primary data about consumers.

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Most Common Data-Collection Methods

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Source 1: Internal Records

• Accounting, finance, production, and marketing personnel collect and analyze data for marketing planning.– Sales data.– Customer characteristics and behavior.– Universal product codes.– Tracking of user movements through Web

pages.– Web sites visited before and after the

firm’s Web site.6-14


Source 2: Secondary Data

• 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 and data may be old.• Marketers continually scan the

macroenvironment for threats and opportunities (business intelligence).

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Public & Private Data Sources

• Publicly generated data– U.S. Patent Office– International Monetar

y Fund– The World Factbook– American Marketing A

ssociation–World Bank– Federal Reserve Ban

k – US census

• Privately generated data

– comScore– Forrester Research– Nielsen/NetRatings– Interactive Advertising B

ureau–Market Research– Commercial online

databases

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http://www.uspto.gov/

http://www.imf.org/external/index.htm

http://www.imf.org/external/index.htm

https://www.cia.gov/library/publications/the-world-factbook/

http://www.marketingpower.com/Pages/default.aspx

http://www.marketingpower.com/Pages/default.aspx

http://www.worldbank.org/

http://research.stlouisfed.org/fred2/

http://research.stlouisfed.org/fred2/

http://www.census.gov/

http://www.comscore.com/

http://www.forrester.com/home/

http://www.nielsen.com/us/en.html

http://www.iab.net/

http://www.iab.net/

http://www.marketresearch.com/


Source 3: Primary Data

• When secondary data are not available, marketers may collect their own information.– Primary data are information gathered for

the first time to solve a particular problem.• Primary data collection can be enhanced by

the internet:– Online experiments– Online focus groups– Online observation– Content analysis– Online survey research

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Primary Research Steps

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Typical Research problems for E-Marketers

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Advantages & Disadvantages of Online Survey Research

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Online Panels

• Online panels include people who have agreed to be subjects of marketing research.

• Participants are usually paid and often receive free products.

• Panels can help combat sampling and response problems, but can be more expensive than traditional methods of sample generation.

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Ethics of Online Research

• 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 e-mail requests for survey participation.– “Harvesting” of e-mail addresses from forums and groups without permission.– “Surveys” used to build a database.– Privacy of user data.

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Other Technology-Enabled Approaches• Client-side Data Collection– Cookies.– PC meter with panel of users to track the

user clickstream.• Server-side Data Collection– Site log software can generate reports on

number of users who view each page, location of prior site visited, purchases, etc.

– Real-time profiling tracks users’ movements through a Web site.

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Following the Clickstream at FTC.gov

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Real-Space Approaches

• Data collection occurs at off-line points of purchase and information is stored and used in marketing databases.

• 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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Real-space Data Collection & Storage Example

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Marketing Databases & Data Warehouses• Product databases hold information about

product features, prices, and inventory levels; customer databases hold information about customer characteristics and behaviors.

• Data warehouses are repositories for the entire organization’s historical data, not just for marketing data.

• The current trend in data storage is toward cloud computing: a network of online Web servers used to store and manage data.

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Cloud Computing

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Company Web server

Tablet computer

Mobile phone

Computer

Remote servers

Data content

http://openclipart.org/people/Anonymous/Anonymous_Computer_1.svg

http://openclipart.org/people/spadassin/1310919678.svg

http://openclipart.org/people/motudo/motudo_mobile_phone_with_big_screen.svg

http://openclipart.org/people/lyte/web_server.svg





http://openclipart.org/people/rg1024/db.svg

http://openclipart.org/people/Anonymous/Anonymous_Text_Page_Icon.svg








Data Analysis and Distribution• 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• Two metrics are currently in widespread use

for online data storage:– 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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E-Marketing/7EChapter 7

Connected Consumers Online


Chapter 7 Objectives• After reading Chapter 7, you will be able to:

–Discuss general statistics about the internet population.–Describe the internet exchange process and the technological, social/cultural and legal context in which consumers participate in this process.–Outline the broad individual characteristics, psychology, and consumer resources that consumers bring to the online exchange.–Highlight the five main categories of outcomes that consumers seek from online exchanges.

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The Customer’s Story• A typical one-hour adventure in the life of a 25-

year-old professional, Justin:– Tunes his iPod to the latest Diggnation podcast

while his TV is tuned to a soccer game and his smartphone and iPad tablet are within reach.

– Picks up iPad to find a blog mentioned during the podcast, sees a video on the blog, tunes it on his TV set and texts a friend about the video.

– Justin searches for the video title on Google and finds a job posting on Vimeo, an online video-posting site.

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http://revision3.com/diggnation/

https://vimeo.com/


The Customer’s Story, cont.

– He posts a link to the video and Vimeo site to his Twitter stream.

• Justin is the new consumer: a multitasker attending to different electronic media simultaneously.

• How can a marketer capture dollars from advertising online, selling music downloads, charging fees for social media subscriptions?

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https://twitter.com/


• 85% of U.S. consumers used the internet in 2012.

• Less connected groups tend to be:– Older– Less educated– Hispanic– Lower income or disability– http://pewinternet.org/Trend-Data-%

28Adults%29/Whos-Online.aspx

Consumers in the 21st Century

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http://pewinternet.org/Trend-Data-%28Adults%29/Whos-Online.aspx

http://pewinternet.org/Trend-Data-%28Adults%29/Whos-Online.aspx


Consumers in the 21st Century, cont.

• Approximately 1.8 billion people have access to the internet, 32.7% of the global population.

• Top ten countries account for 60% of all users and adoption rates range from 10-84%.

• internet usage in developed nations has reached a critical mass, leading marketers to ask more questions about consumer behavior on the internet.

• http://www.internetworldstats.com/stats.htm

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http://www.internetworldstats.com/stats.htm

http://www.internetworldstats.com/stats.htm


Internet Reaches Maturity: 1995-2012

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Consumer Behavior Online

• Many consumer behavior principles that describe offline buyer behavior also apply to online behavior.

• Exhibit 7.2 explains some consumer behavior theories for online buyer behavior.– Scarcity– Popularity– Affinity– Authority– Consistency– Reciprocity

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Social Psychology of Social Shopping

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• Exchange is a basic marketing concept.– It refers to the act of obtaining a valued

object by offering something in return.• Exchange occurs within the following contexts:– Technological – Social/cultural – Legal

The Internet Exchange Process

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The Online Exchange Process

Technological, Social/Cultural, Legal Contexts

Marketing Stimuli

IndividualCharacteristicsResources

Internet Exchange

OutcomesConnect CreateEnjoyLearnTradeGive

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Technological Context

• 66-77% of online Americans connect to the internet at home with broadband.

• Broadband users enjoy more multimedia games, music, and entertainment because they download quickly.

• The typical U.S. home has 26 different electronic devices for media and communication.

• Web 2.0 technologies are driving marketing strategies and tactics.

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2012 U.S. Daily Media Use (Minutes/day)

TV/Video*279

Traditional TV****100

Internet**167

Radio**94

Newspapers**26

Magazines**18

Facebook***14

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Social and Cultural Contexts

• Three cornerstones for attracting customers online:– Reputation: Brand image and reputation are based

on the market’s perception.– Relevance: Consumers don’t like being interrupted

with irrelevant communication.– Engagement: Marketers must provide relevant

content or entertainment.

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Engaging Customers With Relevant Content

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• In spite of the Can-Spam act the number of unsolicited emails was 71.9% in June 2012.

• When the recording industry sued illegal music file downloaders, consumer behavior was affected.– In 2002, 37% of online consumers shared

music files, but the percentage has dropped.– The Recording Industry Association of

America still claims $12.5B in annual losses from music piracy.

Legal Context

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• Individual characteristics affect internet use.– Demographics such as age, income,

education, ethnicity, and gender. – Attitudes toward technology.–Online skill and experience.– Goal orientation.

Individual Characteristics & Resources

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Consumer Resources

• Consumers perceive value as benefits minus costs.

• These costs constitute a consumer’s resources for exchange:–Money– Time – Energy –Psychic costs

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U.S. Combined Home/Work Internet Usage

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Exchange Outcomes

• There are 6 basic things that people do online:– Connect– Create– Enjoy– Learn– Trade– Give

• Each is ripe with marketing opportunity.

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Connecting Online in the U.S.

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Creating & Uploading Content in the U.S.

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Entertainment Online in the U.S.

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Top 10 Search Terms for 2011

Google Yahoo! Bing

Rank Term Rank Term Rank Term

1 Rebecca Black 1 iPhone 1 Fauja Singh

2 Google+ 2 Casey Anthony 2 Katy Perry

3 Ryan Dunn 3 Kim Kardashian 3 The cardinals

4 Casey Anthony 4 Katy Perry 4 Harry Potter

5 Battlefield 3 5 Jennifer Lopez 5 Adele

6 iPhone 5 6 Lindsay Lohan 6 Rory Mcllroy

7 Adele 7 American Idol 7 Japan Earthquake

8 Tepco 8 Jennifer Aniston 8 Job crisis

9 Steve Jobs 9 Japan Earthquake 9 Foreclosures

10 iPad2 10 Osama Bin Laden 10 Weather disasters

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Learning and Getting Information

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Trading Online in the U.S.

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Giving Online

• Trendwatcher.com mentions “Generation Generosity” as one of the top global consumer trends.

• 25% of Americans made an online donation to charity in 2011.

• Kickstarter.com offers a Web platform for individuals seeking funding for creative projects.

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying,

recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

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day 10 elc 310. copyright 2005 prentice hallch 1 -2 agenda questions? assignment 1 corrected –...

Documents

web data

big data big data

secondary data

internal data

transaction data

pieces of data

data collection

demographic data