Exam 2 - Ch. 5

Question 1

Customer Relationship Management

Answer 1

Systematic tracking of consumers preferences and behaviors over time to tailor individualized value propositions
Relationship marketing
Customer orientation
Capture customer info at touch point

Question 2

Marketing Database

Answer 2

Includes all customers current, past, and potential customers aka prospects
Demographic, behavioral, psychographics, attitudinal
Customer profiles, segmentation, propensity score
Support analytics

Question 3

Data Mining

Answer 3

Sophisticated analysis techniques to take advantage of the massive amount of information now available
Find patterns in data
Observable - existing patterns
Predictive - extend patterns to the future

Question 4

Social media sources

Answer 4

Feeds from twitter and other sources

Sentimental analysis, web scraping, brand mapping

Question 5

Sources of Big Data for Marketers

Answer 5

Social media
Corporate It 
Government NGO
Commercial entities 
Partners

Question 6

One to one marketing

Answer 6

Facilitated by CRM, allows customer to control business

1. Identify customers, collect info
2. Differentiate customers, needs and value added to company
3. Interact with customers, improve efficiency and effectiveness
4. Customize - treat each customer differently

Question 7

Characteristics of CRM

Answer 7

1. Share of customers, % of customer purchase from same brand
2. Lifetime value of a customer, profit from customer
3. Customer equity, value from customer positive or negative
4. Customer prioritization, some priority over others

Question 8

Big Data

Answer 8

Exponential growth of data, structured and unstructured,
Provides Competitive Advantage
1. Identify new opportunities
2. Transform insights into better products
3. Delivering timely info ore efficiently and effectively

Question 9

Types of Data

Answer 9

Demographics
Behavior, actions
Psychographics - quantifiable description of lifestyle, activity, interest, opinion
Attitudinal - expression or survey of favor/disfavor towards a product, placed, thing, or person

Question 10

Commercial Entity Sources

Answer 10

Companies collect data in large quantities to sell
Data brokers
Info USA

Question 11

Table

Answer 11

Stores data elements in named columns and unlimited rows

Each row having an unique identifier called a primary key

Question 12

Database

Answer 12

A software system designed to store data

Question 13

Operational Database

Answer 13

Database processing business transactions

Question 14

Database Marketing

Answer 14

Marketing that relies on a database of customer and prospect profiles to create a targeted offering

Question 15

Data warehouse

Answer 15

A system to store and process the data that result from data mining
Aggregation of data from operational databases

Question 16

Structured Data

Answer 16

1. Typically numeric or categorical
2. Can be formatted or organized easily for computers
3. Can be inserted seamlessly into a database
   Excel

Question 17

Unstructured Data

Answer 17

Computers can analyze unstructured data
Nonnumeric data formatted for humans
Body of an email

Question 18

Analytics

Answer 18

Finding patterns in data

Question 19

Effective Analytics

Answer 19

Requires three steps
Gated data - analyze data - communicate information
Trade offs executives must make
Cost, quality, quantity

Question 20

High level marketing questions

Answer 20

Call for marketing analytics goes back to the 1800s
Half the money I spend on advertising is wasted, I just don’t know which half … John Wanamaker
1. Attribution, which ad,channel works
2. Efficiency - cost per click, sale, customer, etc
3. Effectiveness - customers match strategy and target markets desired

Question 21

Uses of data mining

Answer 21

1. Customer acquisition - demographics
2. Customer Retention, Loyalty - focus on big spending customers
3. Customer Abandonment - customer costs too much
4. Market Basket Analysis - promotion based on products purchased

Question 22

Market Analytics

Answer 22

A group of technologies and processes that enable marketers to collect, measure, analyze, and assess the effectiveness of marketing efforts

Question 23

Major digital marketing channels

Answer 23

Social media
Digital ad networks
Email
Search engines

Question 24

Cost per click

Answer 24

Online ad purchase, cost of the advertisement is charged only each time an individual clicks the advertisement and is directed to the web page that the marketer placed within the advertisement

Question 25

Marketing control

Answer 25

A system of activities that allow identification of deviations from expected plan so corrective actions can be taken

Question 26

Measures are ... eff

Answer 26

Effectiveness - am I getting the right thing | Efficiency - how much of something do I get for how much of something else

Question 27

Churn rate

Answer 27

How fast you are losing customers | Customers who are no longer considered customers

Question 28

Marketing Metrics

Answer 28

Specific measures that help marketers watch the performance of their marketing campaigns, initiatives, and channels, and when appropriate serve as control mechanisms

Question 29

Click through rate

Answer 29

CTR click through How efficient is getting a response % of customers who click on advertisement to visit webpage

Question 30

Conversion rate

Answer 30

Conversion How efficient is success at a goal Meeting goal with consumer interaction with page Product purchase, sign mailing list, become follower

Question 31

Cost per order

Answer 31

How efficient is advertising Cost of gaining an order in terms of marketing investment Turn web visitor into customer

Question 32

Margin on sales

Answer 32

Gross profit on a unit | Price - cost

Question 33

Touch point

Answer 33

Only point of direct interface between customers and a company Online, by phone, or in person

Question 34

Share of a customer

Answer 34

Wallet share percent of customer purchase from single brand Easier, less expensive, firms look to increase customer share over market share Share of customer purchase in category over time Enables company to grow sales and profits at lower cost to new customer acquisition

Question 35

Information Overload

Answer 35

State in which the marketer is buried in so much data it becomes paralyzing to decided which of the data provides useful info and which does not

Question 36

Customer lifetime value

Answer 36

CLV represent how much profit from a particular customer Estimate customers worth to company over their lifetime Npv(profit) + npv(equity)

Question 37

Customer Prioritization

Answer 37

Prioritize customers - not all equal CRM allows identifying priority customers Self- fulfilling prophecy

Question 38

Web scraping

Answer 38

Recess of using computer software to extract large amounts of data from web sights

Question 39

Sentiment Analysis

Answer 39

Process of identifying a follower’s attitude, positive, negative, neutral Toward a product or brand by assessing the context or emotion of his/her comments