MKTG Chapter 5

sentiment analysis

a type of analytic method that identifies the general attitude (for example, positive, negative, or neutral)

he process cycle for CRM may be divided into the following four elements

(1) knowledge discovery, (2) marketing planning, (3) customer interaction, and (4) analysis and refinement

Ultimately, CRM has three major objectives

1. Customer acquisition—acquisition of the right customers based on known or learned characteristics that will drive growth and increase margins. 2. Customer retention—retention of satisfied and loyal profitable customers and channels, and thus growing the business profitably over the long run. 3. Customer profitability—increased individual customer margins, while offering the right products at the right time.3

Marketing Analytics Approaches

1. Descriptive 2. Diagnostic 3. Predictive 4. Prescriptive

Data mining

A sophisticated analytical approach to using the massive amounts of data accumulated through a firm's CRM system to develop segments and microsegments of customers for purposes of either market research or development of market segmentation strategies.

customer touchpoints

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

One of the most important metrics in CRM is that of the

customer lifetime value (CLV)

Two primary goals of any dashboard are

diagnostic insight and predictive foresight

A data warehouse

environment is the optimal approach to handling all the customer data generated through the touchpoints and transforming those data into useful information for marketing management decision making and marketing planning

Proliferation of ROCI analysis has raised the prospects of

firing a customer

Semi-structured data

fits between structured and unstructured data in the sense that it contains some elements of structure that make it easier for machines to understand its organization, but still contains parts that do not possess an appropriate level of structure to make them readily analyzable by automated means for knowledge creation

Marketing analytics

include a set of methods facilitated by technology that utilize individual-level and market-level data to identify and communicate meaningful patterns within the data for the purpose of improving marketing-related decisions.

prescriptive analytics

involves determining the optimal level of marketing-relevant factors for a specific context by considering how adjusting their levels in varying ways will impact different marketing outcomes

Customer relationship management (CRM)

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

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, or is currently considering

Knowledge discovery

is the process of analyzing the customer information acquired through various customer touchpoints

The next phase in the CRM process cycle is ___________ which represents a key use of the output from the knowledge discovery phase

marketing planning

Customer satisfaction

means the level of liking an individual harbors for an offering—that is, to what level is the offering meeting or exceeding the customer's expectations

Collaborative filtering

predicts a customer's preferences for products or services based on the observed preferences of customers who are perceived to be similar

Structured data

refers to data that is generated in such a way that a logical organization is imposed on it during its generation, thus enabling it to be more readily analyzable for knowledge creation

Unstructured data

refers to data that is generated in such a way that it does not possess a specific organizational structure that renders it readily analyzable for knowledge creation

Big Data

refers to the ever-increasing quantity and complexity of data that is continuously being produced by various technological sources

The customer interaction phase

represents the actual implementation of the customer strategies and programs

Formalization

structure, processes and tools, and managerial knowledge and commitment are formally established in support of the culture

Customer loyalty

the degree to which an individual will resist switching, or defecting, from one offering to another

diagnostic analytics

utilizes data to explore the relationships between different marketing-relevant factors that influence the organization's performance either directly or indirectly

predictive analytics

utilizes data to make predictions about future marketing outcomes of interest

descriptive analytics

utilizes data to provide summary insights

attribution

which can be thought of as determining how to give appropriate credit to different elements of the marketing mix through the measurement of their effects

marketing dashboard

which is a comprehensive system providing managers with up-to-the-minute information necessary to run their operation including data on actual sales versus forecast, progress on marketing plan objectives, distribution channel effectiveness, sales force productivity, brand equity evolution, and whatever metrics and information are uniquely relevant to the role of the marketing manager in a particular organization