MKTG 450

9. What are the three tactics that help make email marketing more effective? Be able to briefly describe each.

In house vs. rented list: email lists - Keeping them on the in house lists: emails need to be relevant and pay attention the the frequency of emails (don't send out too much customer may unsubscribe) micro-segmentation: personalize emails to specific customers, customize email frequency based on the customer Test and Track: what works and what doesn't: A/B testing seeing which is more effective based on clicks. If A only gets 2 clicks and B gets 20, B is the more effective result

34. Fair information practice principles

(1) Notice/awareness: If you collect information about consumers, they need to be given notice that their information is being collected. They need to be aware of your information collection. (2) Choice/consent: Consumers have the right to choose secondary uses of their information. What is secondary use? You can probably imagine that there should be a primary use if there is a secondary use. Generally, when we say primary use, we are talking about a business' use of its customer information for its own business purposes. As an example, if you have a sale coming up, you can use your existing customers' information to make them aware of the sale. Secondary use, in contrast, involves the use of that information for purposes other than the primary business. For example, sharing customers' information with a partner business is considered secondary use. If you want to share customers' information with someone else, you will need to obtain consent from your customers first, and they can choose to say no. (3) Access/participation: Consumers can access the information you have about them, and if they see any information being inaccurate, they can request the inaccurate information to be corrected. A frequently encountered case of this is credit reports, where you can request the credit bureaus to investigate into incorrect records. (4) Integrity/security: as a business, you are responsible for keeping customers' information accurate and secure. (5) Enforcement/redress: if you ever violate the privacy principles, you can be sued and the victims are entitled to compensations from such damages.

26. Steps involved in conducting a sentiment analysis

-First step- involves removing information that is irrelevant. A larger text is also broken down into smaller chunks in this step to make it easier to analyze. -Second step- is the critical step- trains the computer to learn what things mean positive and what things mean negative. Ask real humans questions and then feed those answers into a computer with their sentiment labels. The machine reads the messages and tries to find patterns that are most commonly occurring with each type. -Final step- actual analysis step- the machine uses the set of keywords and tags formed in the training and applies them to the large number of texts that it analyzes. It will then count the positive and negative words and determine if the message is positive or negative based on the number.

6. How can one make display/banner ads more effective?

1. Choose a less blind location 2. One second effect: display ad needs to convey its meaning in one second or less 3. Show you logo: familiar 4. Decided weather plain text or rich media(moving ads, images, video, audio) is better

3. Eight possible traffic building tools for a website

1. Mass media: TV/ magazine (include company website address) 2. Publicity/WOM: people's words to get customers to come to your website 3. Direct traffic: when customers type your website address to visit site and bookmark tabs on computers 4. Search engine: to build traffic on website 5. Display ads (banner ads) only 1% of people today click through display ads 6. Affiliate networks 7. Emails 8. Video ads

7. What are the different ways of targeting a display ad at a specific audience?

1. keywords : matching ads with websites based on match of keywords 2. Topics content 3. interests : based on buyers past browsing behavior (makes ad more relevant) 4. retargeting : gets consumers to come back to the website by displaying products already looked at 5. Placements: where the ad is placed on website

2. Goals for advertising, traffic building, and conversion

Advertising = ad brand impact (letting customer see) Traffic building= website brand impact (gain info) conversion = online profit (purchase)

8. How do affiliate networks work? Why is it a cost-effective marketing tool?

Affiliate networks are widely used among major retail websites. The basic idea is that if you refer a consumer to the store and the consumer ends up making a purchase, you will receive a certain percentage of the sales. It is cost effective because it is commission based, meaning that the company only pays affiliates from the sales that they bring in

19. Basic understanding of augmented reality.

Allowing technology to interact with our surrounding environment to make the physical environment richer in info. Augment the physical real world with virtual computer generated sensory input like sound or graphics.

36. What is opt-in vs. opt-out privacy policies? Which one offers better protection of consumer privacy?

An opt-in policy basically says that you cannot consumers' information unless they say yes to you. So the fact that you have the consumers' email addresses do not mean that you can just email them your promotions or deals. You need to get their permission first. In contrast, in an opt-out policy, you are allowed to use the information for your primary business purposes unless consumers tell you no. You remember the choice/consent principle we just talked about under the fair information practice principles. It only mandates consumer consent for secondary use. In other words, in the US, the default minimum is opt-out, and that's what most US businesses use. But as we saw in GDPR, opt-in would be required. Businesses there cannot use customer information for even primary use until the consumer consents to the use.

33. Have a basic understanding of different components of the Creative Commons license

Attribution: You let others copy, distribute, display, and perform your work, and any derivative works based upon it such as a modified version of your picture. But this is allowed only if they give you credit the way you request. Share Alike: You allow others to distribute derivative works only under a license identical to the license that governs your work. In other words, if you allow others to use your creative commons materials, their further work also needs to follow this creative commons license. Non-Commercial: You let others use your work or derivative works for non-commercial purposes only. No-Derivative Works: You let others use your original work, but they cannot creative derivative works based upon it.

22. Understand all the traffic and audience metrics.

Common Traffic Metrics -Hits: Represent the number of files requested on your website. Usually only over a certain time period. -Page Views: Number of webpages requested. Only counts web page files. Number of hits will always be at least equal or higher than the number of page views. -Page Impressions: Represents the number of times a page is requested, always associated with a specific page not all the web pages. Visitor Metrics -Visitors: Number of people visiting a website during a specific time period -Unique Visitors: number of different people visiting the site during a specific time period. This does not mean you count the same visitor multiple times if they visit multiple times. Each visitor must be different inorder to count. -Identified Visitors: A subset of the unique visitors. The difference is they can be identified by registration or through a specific purchase during a specific time period.

11. Three key characteristics of mobile devices

Constant presence: mobile devices are always in our pocket no matter where we go. This greatly enhances the utility of mobile devices to us. This is a valuable trait because it means you can potentially reach consumers at any time at any location. Immediacy: it is immediately available for us to use. When we are in a certain context, such as when we are about to make a purchase, we don't necessarily have the time to wait till we get to our computer to look up the product information or find out what consumers are saying about the product. This also means that marketers can immediately reach us as well. Location/context sensitivity: What location or context sensitivity means is that what I do is dependent on where I am and what kind of context I am in. For example, when I am at a certain location and I would like to find a restaurant to go to, this would be a location/context sensitive request. The location is where I am right now, and the context is the dinner time.

16. Advantages of SMS/MMS promotions

Consumers opt-in to such campaigns A great way to capture consumers' phone numbers Immediacy/ Location sensitivity

30. Four different approaches to personalization

Cosmetic Customization (simplest): This is where you change the cosmetic look of a product without modifying the product itself. For example, some watches come with changeable face plates or straps if you are tired of one color or design. Some websites also allow you to change the themes of the website background. Nothing about the core of the product changes, just the look. More formally, cosmetic customization allow consumers to change the packaging and presentation of a product AFTER the product has been assembled. So the product itself does not change, but the representation can change. Collaborative customization: In the second approach, collaborative personalization, the customer tells you what she wants by answering a series of questions and making choices, and you make it for her based on the specifications. A key differentiation here is that you make the product after asking consumers first, whereas in the first approach we just discussed, you make the product first and then let consumers customize it. Adaptive customization (hard to understand): In the second approach, collaborative personalization, the customer tells you what she wants by answering a series of questions and making choices, and you make it for her based on the specifications. A key differentiation here is that you make the product after asking consumers first, whereas in the first approach we just discussed, you make the product first and then let consumers customize it. Transparent customization (hard to understand): In all of the other customizations, consumers are aware that they are controlling the outcome. They make explicit choices that affect what they receive at the end. But in the last approach, transparent customization, the consumer is not doing anything but the system does the customization for them based on prior information the system has about the consumer. An example is the online library system, where it detects whether you are on-campus or off-campus and then determine whether certain questions such as username and password need to be asked. Another example is how the Windows operating system puts your often used software onto a list so you can access them more easily later. Similarly on iPhone, your recent contacts will show up in the dashboard. The best way to think about transparent customization is as someone who understands you so well that the person can give you exactly what you want without having to ask you. In transparent customization, the representation format does not change, but the inner product may change. The change occur behind the scene without consumers' conscious interference. This is the key point of "transparent" customization.

35. Have a basic understanding of how the GDPR provides stronger protection of consumer privacy than existing US standards. No need to remember all the exact rights in GDPR. Focus on the key differences discussed in the module.

Elsewhere in the world, governments have implemented much more stringent data and privacy regulations. One of these has caused a lot of buzz in 2017 and 2018. It's called the General Data Protection Regulation or abbreviated as GDPR, from the European Union. It took effect in May 2018. This GDPR applies to all EU citizens. Although that may seem far away, remember that the Internet can reach anywhere in the world. So if your company collects data of your site visitors and at least some of them come from one of the EU countries, there is potentially a compliance issue you have to worry about.

24. How can online customer engagement be measured?

High-Level Measurement of Engagement Success To measure engagement, you need to look at two dimensions of things, one is the breadth of engagement and the other is the depth of the engagement. -Breadth of Engagement: How widely you are engaging with consumers. Can also be measured by consumer reach -Depth Dimension: How deeply engaged your consumers are in your social media channels. In order for depth of engagement to be high you need both consumer participation and company participation to be high.

32. Collaborative filtering

In those more complex situations, what a company can do instead is collaborative filtering based recommendation system. This system is based on the preferences of other users to recommend something. So here, the collaboration happens between individual consumers. Make sure you do not confuse this with collaboration customization approach we talked about. There, the collaboration happens between the company and the consumer. But in collaborative filtering, the collaboration is among consumers. A well-known case of collaborative filtering is Amazon's recommendation system that shows you what customers who bought the current item also bought. In this case, the company does not necessarily make up a rule or assumption about your need for any products based on the current product being viewed. Instead, it assumes that because other consumers often bought certain things together, maybe you will have the same need too.

39. Concept of the Internet as a power grid.

Internet as a Power Grid: Whether any of the previous technologies will become dominant one day, one thing for sure is that the Internet will eventually disappear from people's conscious mind. Right now the Internet is still something that people talk about a lot, partly because it is new. In order to use the Internet, you still need to be familiar more or less with technology. What scientists envision in the future is a so-called power grid role of the Internet. Think about the way we use electricity. We do not really talk about electricity. When we want to use it, we just plug something into the outlet and there it goes. We think about what we want to do with electricity instead of thinking about electricity itself. This is partly because electricity has become a very mature technology and there is nothing particularly new or novel about it. The future of the Internet will be similar to this. We will not think of the Internet as the big thing any more. What we are concerned about is what we can do with the Internet. This is already happening with the digital natives, generations of younger individuals that essentially grew up with Internet technology. When the Internet becomes a power grid, the technology will no longer be the conversation topic. It also will no longer need much knowledge to make it work. Instead, it'll be in pretty much everything we do. At that point in time, Internet marketing will probably no longer be a stand-alone course, because every marketing will be Internet marketing.

4. Various standardized interactive advertising units for online display advertising.

Leaderboard: top or bottom of site , Rectangle ,Medium rectangle: side of website , Button2 and microbar Expanding ad Floats: like a pop up ad but shows up on same window covering the page Interstitials: timing of the ad usually when consumers are transitioning to one website to another

21. Differences between web log (clickstream) data and panel data.

Limitations of Clickstream Data: you can only gain a limited picture of the consumer experience since the identification you have is of the users IP address only. If a consumer gets to your website through a different IP address you can not easily link the two together. Advantages of Panel Data: Since the data is captured through software installed on the panel members' computers you can track their actions across the entire web and can link behaviors from day to day. Limitations in Panel Data: Statistical Generalizability. You can only track people who are in the panel and you can not be sure that this is a picture of what everyone is doing. Another thing is that there are security concerns and issues that may cause some data to be missing. In most circumstances you want to use a mixture of both to help balance each other out.

1. Web marketing chain

No notice scenario: consumer doesn't notice ad= advertiser gets nothing Notice but no click scenario: consumer notices ad but doesn't click= advertiser gets something (ad brand impact) advertiser gets to show brand to consumer through the ad itself Notice and click scenario: click through ad= advertiser gets brand exposure and through the ad and through their website -If the consumer ends up making a purchase thats an added plus

10. Three forms of online video ads

Pre-roll ads: Pre-roll is probably the most popular format, adopted by most YouTube videos. The ad shows up at the beginning of a video, before the users get to the actual content that they want to watch. Mid-roll ads: Mid-roll happens in the middle of a video. Similar to the commercial breaks within a TV program, these ads interrupt your video viewing to show you ads. Hulu, the online video service specializing in TV shows, uses mid-rolls a lot. Watching a TV show on Hulu therefore is very much like watching a TV show on TV, except that Hulu usually only has about 4 or 5 commercial breaks during a one-hour show and the commercials usually will not be more than a minute and a half during each break. Post-roll ads: Post-roll ads appear at the end of a video. They are used rather infrequently, partly because of its lack of visibility and effectiveness. On YouTube, they use that post-roll space to recommend other videos the consumer should watch. TED, the very influential conference on ideas worth spreading, also use post-roll ads with some of the videos on their website.

15. Guidelines for a user-friendly mobile website. How are these guidelines different from those for traditional websites?

Principle 1: Meet User Needs Quickly: like we learned with KISS (Keep It Simple Stupid) Principle 2: Use Basic Navigation Controls: Mobile screens are smaller so make sure to use basic controls Principle 3: Clearly Distinguish Selected Items: Give clear feedback to users what item is in focus, can be done by appearance of an item to make it stand out Principle 4: Make User Input as Simple as Possible: Give more point and click opportunities and less writing.

38. Be able to discuss intelligently the issues related to the rising popularity of AI and smart devices.

Privacy: On the issue of privacy, once your entire home is a smart system, do you ever really have any privacy any more. Already with Amazon Echo and Google Home, people are already concerned about the constant listening these devices are engaging in. Basically all of your conversations at home near one of these devices are recorded. You can of course decide to mute the device when you are not using it, or you can go online and delete those recordings. But many consumers are not necessarily aware of what is going on and will not do those things to protect themselves. Now adding in smart security cameras and other things, what we used to consider as our sacred place of home will no longer be as private as we think. Do we just accept that reality as a given or is there something we should do to address the issue? Decision Making: A second issue is the impact of these things on decision making. Take the replacement toothbrush head ordering example I mentioned earlier, if I were doing that on my computer, I may see other alternatives along the way and may decide to try something different from what I ordered before. I may even decide to buy another electric toothbrush instead. But in the convenience of doing it through these voice devices, I will choose to go with the simplest hassle free approach and choose the one I ordered before. Does that limit my choice? In the world of Amazon.com, we talked about its personalization of recommendations based on your past behavior and the behavior of other consumers. Does that limit our freedom of choice and essentially box us in the status quo instead of exploring new things? This is just the beginning of AI capabilities. As we move to the higher version of AI as described in the HBR article, who would be making the decision for us then? Us or AI? Will that be a good thing or a bad thing? Social Impact: Another significant concern related to the increasing popularity of AI is the overall impact at a society level. By using these algorithms to make us think less and decide less, are we stalling the innovation of our entire society or is it helping us to focus our efforts on the more important matters? A common misconception of AI is that these computer-based algorithms are bias free. But the people creating those algorithms are not bias free, and the historical data we feed into these systems are not bias free. So whatever bias that is in the data will come out as biased results from the algorithm. This could potentially exaggerate some of the existing social biases based on gender, race, and income, and make the inequality issue a bigger problem. These are all issues that need to be considered as we move forward with all these fancy technologies. They should be debated alongside the technology innovations we are engaging in to make sure technology gets us to a better place.

17. Pros and cons of using mobile apps for marketing purposes

Pros: More Functionalities/Richer Experience Cons: Less prevalent, Platform dependent, More costly

27. Understand that the best success metrics are determined by campaign goals. Know how online marketing ROI should be assessed under different types of goals (e.g., awareness, bottom line improvement, or relationship building).

Success is Goal Dependent Awareness- Impressions, buzz followers/fans, visitors (what do people know about your name? What are they saying?) Bottom Line- CTR (click through rate), CPP (cost per purchase), conversion rate, sale, profit margin, stock price (measuring your success) Relationship- Customer retention, CLV, engagement and conversations, sentiment

23. Understand the stargaze map, its elements, and how it can be used for optimal design of a website.

Stargaze Map Objects located on the X-axis are based on impressions: how many times was the product shown to consumers? The more it was shown the more towards the right the product will be. -Objects located vertically on the Y-axis are based on consumer interests: Charts the percentage of product views that led to a click. THe higher the product on the vertical axis the more interest consumers are in the product -Width of the block represents the price level of the product: The wider the product the higher the price for that product -Height of the shape represents the profitability of the product: Taller the block the more profitable the product. If the block is short then the product is not so profitable. How to Use a Stargaze Map to Adjust Product Marketing -You want to put on the front page the most trafficked pages and the most interesting ones. -You can change how you arrange your products on the webpage just as you do in-store. Looking at a Stargaze Map can help with this.

25. Sentiment analysis

The analysis of opinions in text so that the attitudes of the writer or speaker can be discerned. (Opinion Mining) Involves: Natural Language Processing(how we decipher meaning from the natural language), Machine Learning(training machines to do certain tasks), Text Mining(data mining of textual information), Linguistics(how our language is structured).

28. Why do companies want customer loyalty?

The goal is to create intense active loyalty. Reason 1- Real Economic Incentives- Customer lifetime- The longer a customer stays with a company the more likely they are to buy more over time, leading to an increase in revenue.They also require less support so this reduces that need. More profitable to make sure your existing customers are happy and will stay with the company. Reason 2- Loyalty Leads to Automaticity in Decision Making- With automatic decision making the customer chooses something without thinking. For loyal customers sometimes choosing that brand becomes a matter of habit and is done without thinking. Reason 3- Emotion Benefits of Loyalty- The emotional bond with the brand

31. Rule-based recommendation system. When should it be used?

The simplest way to recommend something is to create simple rules. For example, if the consumer buys a phone, then recommend a phone case or other phone accessories. Another more complex example may include if you buy paint, paint roller, and paint brush, then recommend paint tape. Basically you infer what consumers are likely to need if they buy one or multiple things. This simple rule-based recommendation system works well when product attributes are easy to quantify, and users' needs are not particularly complicated to figure out. This is because rule-based recommendation systems are very straightforward and requires straightforward contexts. For example, if the attributes require knowledge about someone's artistic taste, such as with music, using simple rule-based system may not work well. The fact that a consumer likes a particular rock band does not mean the consumer will like all other rock bands as well. In fact, the liking of a particular album from a rock band may not even generalize to other albums by that same band. It will be much harder to come up with rules for recommendation.

29. Compare the differences between the traditional transaction marketing mentality with retention marketing.

These two are different in two aspects, one is the metrics they use and the other is the tools they use. Difference in Metrics: In transaction marketing, you are concerned with maximizing your market share. In retention marketing, you are concerned with the individual consumer's wallet. The question you ask is out of all the money each consumer spends on, say, cereal, what portion of that goes to your brand. Difference in Tools: Transaction Marketing uses mass marketing tools such as TV commercials and magazine adds. Retention Marketing uses dialogue marketing

20. Three ways of obtaining traffic and audience data

Two sources you can gather information from: From the Server Side you can capture data through clickstream which works a lot like a library system. Every Time someone requests a web page from your site your server keeps a record of that request. From the Consumer side you can capture data through planting a script within the webpage or email that tracks the user and collects necessary information, this is called Script-Based Consumer-Side Tracking. Another way is using Customer Panel Data. Through this, consumers get recruited to a panel, where their online behavior is tracked by a piece of software installed on their computer, and the information is sent to a central server at the company.

37. Be aware that more data are not always better and that there is a need to strike the right balance between consumer data and privacy.

Ultimately, as a business, you need to seek the right balance between how much information you gather from consumers vs. how much liability such information can cause you. On one hand, consumer information can mean valuable assets to you. The more you know about your customers, the more effective your marketing can be. In the meantime, all the information you have about your customers can become a liability. If somebody breaks into your system and steals information from you, you'll face lawsuits and possibly heavy financial damage. So ideally you want to strike a balance between the two. You want to collect just enough information for you to manage your business effectively without exposing yourself to unnecessary risk.

18. Understand the basic idea of location-based services and how they apply to marketing.

What is Location-Based Service? Basically any time a business provides you with special information or offers you a promotion based on where you are physically, it is using location-based services. Geofencing is like putting up a fence around your house, except that in this case it's not a physical fence but a virtual one around a given location. When a user with a mobile device travels into this geofenced zone, the user receives a targeted ad on the mobile device. Physical Beacons These beacons are small wireless devices you can install inside a store like the one you see in this picture in the upper left corner. When consumers get inside a store, their phone can interact with these beacons to receive coupons or reward points

5. Banner blindness phenomenon

Where consumers either intentionally or subconsciously avoid ads or potential ad spaces on a webpage

12. Three key characteristics of mobile users

Younger: not all, but frequent mobile users tend to be younger Quick/Impatient: frequent mobile users also tend to be constantly on the move and wants everything fast. Prefer to type less: frequent mobile users usually prefer to tap through everything with minimal amount of typing

13. Three common objectives a mobile marketing campaign may have

increasing sales, reducing costs, and increasing loyalty

14. The four popular mobile marketing tools

web-based that happens in a web browser= Mobile websites and mobile display ads. Non-web based marketing mechanisms= SMS and MMS promotion, and mobile apps