Chapter 6 Objectives 6 2 After reading Chapter

Chapter 6 Objectives 6 -2 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. © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 6 Objectives, cont. 6 -2 Describe several ways to monitor the Web for gathering desired information. Contrast client-side, server-side, and realspace approaches to data collection. Highlight four important methods of analysis that e-marketers can apply to data warehouse information. © 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Purina Story 6 -3 Nestle Purina Pet. Care 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? © 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Purina Story, cont. 6 -4 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 off-line 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. Can you think of other Web sites besides petsmart. com and about. com that would be appropriate for Purina Pet. Care ads? © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Data Drive Strategy 6 -5 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. © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Marketing Knowledge Management 6 -6 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. © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Electronic Marketing Information System 6 -8 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, economic environment, etc. Marketers use the Net and other technologies to collect primary data about consumers. © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Source 1: Internal Records 6 -9 Accounting, finance, production, and marketing personnel collect and analyze data. Sales data Customer characteristics and behavior Universal product codes Tracking of user movements through web pages © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Source 2: Secondary Data 6 -10 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. Marketers continually gather business intelligence by scanning the macroenvironment. © 2009 Pearson Education, Inc. Publishing as Prentice Hall

6 -11 Public and Private Data Sources Publicly generated data U. S. Patent Office CIA World Factbook American Marketing Association Wikipedia Privately generated data com. Score Forrester Research Nielsen/Net. Ratings Commercial online databases © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Source 3: Primary Data 6 -12 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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Ethics of Online Research 6 -13 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 newsgroups without permission. “Surveys” for the sole purpose of building a database. Privacy of user data. © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Monitoring the Social Media 6 -14 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. © 2009 Pearson Education, Inc. Publishing as Prentice Hall

6 -15 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 Site log software Real-time profiling tracks users’ movements through a Web site. © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Real-Space Approaches 6 -16 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. © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Marketing Databases & Data Warehouses 6 -17 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. © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Data Analysis and Distribution 6 -18 Four important types of analysis for marketing decision making include: Data mining Customer profiling RFM (recency, frequency, monetary value) analysis Report generating © 2009 Pearson Education, Inc. Publishing as Prentice Hall

6 -19 Knowledge Management Metrics 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. © 2009 Pearson Education, Inc. Publishing as Prentice Hall