Ch 5: CRM, Big Data and Marketing Analytics

What is the premise behind influencer marketing?

A consumer's purchases are often influenced by the views, opinions, and behavior of others.

too many tactical metrics; not enough strategic insight

Because of the focus over the past decade on holding marketing accountable for financial results, intermediary metrics have proliferated

What are two goals of any dashboard?

Diagnostic insight and predictive foresight

Which of the following are sources of Big Data?

Internet-connected devices mobile apps social media platforms business systems

Knowledge Discovery

Process of analyzing the customer information acquired through various customer touchpoints

______ represents either the revenue or the margin generated by a marketing program divided by the cost of that program at a given risk level.

ROMI

Customer Interaction

The actual implementation of the customer strategies and programs.

Which description exemplifies a social media influencer?

The host of a popular YouTube channel devoted to health and beauty evaluates various new beauty products for her viewers.

A key component of a strong customer relationship with a firm is ______.

a high level of trust

volume

amount of data produced, generally measured in bytes

____ is the determination of how to give appropriate credit to different elements of the marketing mix through the measurement of their effects.

attribution

The ever-increasing quantity and complexity of data that is continuously being produced by various technological sources is referred to as ______.

big data

____ ____ represents the actual implementation of the customer strategies and programs.

customer interaction

A ______ is where the selling firm touches the customer in some way, thus allowing for information about him or her to be collected.

customer touchpoint

As a business model, CRM aims to increase revenue and profits by focusing on ______.

customers

Structured data refers to data that is ______.

easily placed into specific categories and stored for future analysis

A comprehensive system providing managers with up-to-the-minute information necessary to run their operation is called a ______.

marketing dashboard

____ ____ represents a key use of the output from the knowledge discovery phase.

marketing planning

____ data are generated with a logical organization so that it is more readily analyzable for knowledge creation.

structured

Select all of the characteristics that are commonly referred to as the "Vs" of Big Data.

volume veracity variety velocity

What term is used to describe the record of specific actions a user takes on a website in reverse chronological order that provides valuable insight for use by marketing managers?

web log

Analysis and Refinement

where organizational learning takes place

The most valuable sources of big data for marketers are those that ______.

yield actionable insights capture data on potential customers capture data on current customers

Place the elements of the CRM process cycle in the correct order. NOTE: The first step in the process should be the top item on your list.

1. knowledge discovery 2. marketing planning 3. customer interaction 4. analysis and refinement

Customer experience management is ______.

an organization-wide effort to ensure all aspects of a customer's encounters with the firm meet or exceed their expectations

A marketing ____ is a comprehensive system providing managers with up-to-the-minute information necessary to run their operation.

dashboard

Investment decisions in marketing must consider which four basic elements?

returns Hurdle rates level of investment risks

Gracie's Restaurant Group has been receiving a lot of feedback through marketing analytics. On the restaurant's Facebook page, customers are noting that the service is excellent and that the main dishes are quite good, but the desserts are far too heavy and sweet. This is an example of ______.

sentiment analysis

The way that users communicate with each other on ____ media platforms, and whom they communicate with, offers chances to better understand relationships between specific individuals and groups.

social

Data generated through ______ is very diverse and can include profile data as well as posts and emotional reactions to posts

social media platforms

When customers and providers combine forces and work together to produce offerings of value, it is called customer ______.

value co-creation

over-reliance on "inside-out" measurement

Having too many internal measures puts the focus on what you already know instead of on the unpredictably dynamic external marketplace

______ is a form of social media marketing involving endorsements and product placement from influencers, people, and organizations who have a purported expert level of knowledge or social influence in their field.

Influencer marketing

Marketing Planning

Information enables the capability to develop marketing and customer strategies and programs.

______ involves taking output from the knowledge discovery phase to develop marketing and customer strategies and programs.

Marketing planning

Which of the following are commonly expressed objections about an overreliance on ROMI?

Pursuit of ROMI during flat periods can be viewed as "causing" underperformance and suboptimal levels of activity. Typically marketing expenditures are not treated as an investment in a company's accounting system. ROMI requires the profit to be divided by expenditure, yet other performance measures consider profit or cash flow after deducting expenditures.

What is the "dark side of CRM"?

a feeling by customers that information a firm collects about them will be used for unintended purposes

Predictive foresight—using the diagnostic experience to better forecast results under various assumptions about circumstances and resource allocations, is one of the most important functions of ______.

a marketing dashboard

What are commonly expressed objections about an overreliance on ROMI?

ROMI ignores the effect of the marketing assets of the firm and tends to lead managers toward a more short-term decision perspective. Calculating ROMI requires knowing what would have happened if the incremental expenditure had not occurred. When executives discuss ROMI with different metrics in mind, confusion results and the value of the metric degrades.

______ is the term used to describe efforts by a firm to make sure that customers have an excellent experience with the firm and its offerings on every encounter.

Customer experience management

forgetting to market the dashboard internally

One measure of the success of a marketing dashboard is the level at which it is used by managers and executives throughout the firm

In the ______ phase of CRM, organizational learning occurs based on customer response to implemented strategies and programs.

analysis and refinement

When organizational learning occurs based on the customer response to the implemented strategies and programs, this is referred to as ____ and ____.

analysis;refinement

Marketing ____ include a set of methods facilitated by technology that use individual-level and market-level data to identify meaningful patterns that can improve marketing-related decisions.

analytics

In the end, marketing management is both a science and an art. The ____ side understands that sometimes the difference between success and failure depends largely on creativity, insight, and the good fortune to have a great idea that is hitting the market at just the right time.

art

A firm realizes a rapid growth in sales. What tool can the firm use to determine if this growth is due to the firm's promotional campaign, price reduction, or additional features it added to the product?

attribution

Samson and Co. is an online provider of reasonably priced clothing. After specific changes in the marketing mix, 15% more customers have been clicking the purchase button. In this case, it is easy to tie the increase in sales to the marketing mix. This is an example of ______ .

attribution

The use of ______ data at an early stage in a customer's browsing of an e-commerce website can provide insight into the state of the customer's intentions and subsequently allow marketers to increase the likelihood that the customer will make a purchase by dynamically altering aspects of the site.

clickstream

After shopping on Amazon.com, Renaldo receives an e-mail from the company stating: "based on your previous purchases, you might like these items." This is an example of ____.

content filtering

After shopping on Amazon.com, Renaldo receives an e-mail from the company stating: "based on your previous purchases, you might like these items." This is an example of ______.

content filtering

____ ____ is an analytic method that identifies which products or services to recommend based on a determination of how similar a product or service seems to be to those that the customer has demonstrated a preference for in the past.

content filtering

Because social media allow customers to easily share information, praise, criticism, suggestions, and ideas about providers' products and services, they serve as a critical component for ______, particularly among younger customers.

customer empowerment

The actual implementation of the customer strategies and programs takes place in the ______ stage of the CRM process cycle.

customer interaction

The degree to which an individual will resist switching, or defecting, from one offering to another is called ______.

customer loyalty

____ ____ ____ is a comprehensive business model for increasing revenues and profits by focusing on customers.

customer relationship management

Which terms refers to whether or not a particular offering meets or exceeds a customer's expectations?

customer satisfaction

A firm that is ____-____ places the customer at the core of the enterprise including everything that happens, both inside and outside the firm.

customer-centric

A firm that is ______ places the customer at the core of the enterprise including everything that happens, both inside and outside the firm.

customer-centric

Two primary goals of any marketing dashboard are ____ insight and ____ foresight.

diagnostic;predictive

variety

different types of data, such as video, text, or audio

Customer ______ reflects the extent to which a firm consistently provides its customers various avenues to connect with the firm and actively shape the nature of their encounters and connect and collaborate with each other.

empowerment

Which are potential pitfalls in marketing dashboards?

forgetting to market the dashboard internally over-reliance on "inside-out" measurement too many tactical metrics; not enough strategic insight

velocity

frequency at which data is generated over time and speed at which it is analyzed and used

In social media, ______ are individuals who have built a reputation for their knowledge and expertise on a specific topic and post about that topic generating large followings of enthusiastic, engaged people who pay close attention to their views.

influencers

A(n) ______ touchpoint allows for two-way information exchange between the customer and a firm's salesperson, customer service representative, interactive website, and so on.

interactive

____ touchpoints allow for a two-way information exchange.

interactive

What two factors are considered when discussing marketing analytic approaches?

level of analytic complexity value created from using the approach

Customer ______ is usually based on high satisfaction coupled with a high level of perceived value derived from the offering and a strong relationship with the provider and its brand(s).

loyalty

A set of methods, facilitated by technology, that include individual-level and market-level data to identify and communicate meaningful patterns for the purpose of improving marketing-related decisions is called ______.

marketing analytics

Descriptive, diagnostic, predictive, and prescriptive are all terms used to identify different types of ______.

marketing analytics

What is the phase of the CRM process that uses the output from the knowledge discovery phase?

marketing planning

The analysis and refinement phase of the CRM process that is based on customer response to the firm's implementation strategies and programs is referred to as ______.

organizational learning

The collection of customer information through ______ systems in retail locations is commonly used to determine a customer's relative value and can also provide insight into what kinds of products would most appeal to a customer.

point-of-sales (POS)

veracity

reliability and validity of the data

A goal-driven investment approach to marketing that maximizes the opportunity for a firm's offerings to reach their full potential in the marketplace is called ______.

return on marketing investment

Customer ____ means the level of liking an individual harbors for an offering.

satisfaction

In the end, marketing management is both a science and an art. The ____ side craves quantification and relishes the ability to provide numeric evidence of success to superiors in a firm and to stockholders.

scientific

____ analysis is a type of analytic method that identifies the general attitude contained with a message by an analysis of its content.

sentiment

Customer ____ are occurrences in which the selling firm touches the customer in some way and allows for information about him or her to be collected.

touchpoints

True or false: The information systems that companies use for different internally and externally facing business functions provide critical information for maximizing the value of customers.

true

A major brand of snack products has enlisted the help of its customers to come up with new flavors for its most popular brand of potato chips. This is an example of customer ______.

value co-creation