Chapter 5

content filtering

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.

marketing analyst

An individual familiar with different forms of market and customer data and who is trained to conduct different market analyses, as well as the computational costs associated with those analyses.

customer mind-set

An individual's belief that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his or her job.

Customer experience management

An organization-wide strategic focus on ensuring that all aspects of a customer's encounters with the firm meet or exceed their expectations.

semi-structured data

Data that contains elements of both structured and unstructured data. Semi-structured data contains some elements that can be viably organized by machines but also elements that are not structured enough for automated analysis.

structured data

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.

Customer value co-creation

In today's marketplace, customers and providers combine forces to co-create offerings of value.

Marketing analytics includes the use of Big Data to improve marketing-related decision making.

True

The process cycle for CRM begins with knowledge discovery, and ends with

analysis and refinement.

return on customer investment (ROCI)

A calculation that estimates the projected financial returns from a customer. It is a useful strategic tool for deciding which customers deserve what levels of investment of various resources.

marketing dashboard

A comprehensive system of metrics and information uniquely relevant to the role of the marketing manager in a particular organization. Dashboards provide managers with up-to-the-minute information necessary to run their operation.

attribution

A key factor in assessing the impact of the marketing mix; attribution can be thought of as determining how to give appropriate credit to different elements of the marketing mix through the measurement of their effects.

sentiment analysis

A type of analytic method that identifies the general attitude (for example, positive, negative, or neutral) contained within a message through an analysis of its content.

Customer Relationship Management (CRM)

A comprehensive business model for increasing revenues and profits by focusing on customers.

diagnostic analytics

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

database marketing

Direct marketing involving the utilization of the data generated through CRM practices to create lists of customer prospects who are then contacted individually by various means of marketing communication.

The administration of information security when using CRM is generally part of the marketing manager's job.

False

eturn on marketing investment (ROMI) is the impact a firm's financial success has on marketing plan implementation.

False

collaborative filtering

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

________ is an offshoot of ROMI that was developed to apply the same principles to customers.

ROCI

descriptive analytics

Summary analytics of raw data, typically in a visual format, as a first step before considering more complex and costly analyses.

organizational learning

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

formalization

The formal establishment of a firm's structure, processes and tools, and managerial knowledge and commitment to support its culture.

marketing analytics

The practice of measuring, managing, and analyzing marketing performance to maximize marketing effectiveness and optimize return on marketing investment (ROMI).

customer touchpoints

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

Customer empowerment

Reflects the extent to which a firm consistently provides its customers various avenues to (a) connect with the firm and actively shape the nature of their encounters and (b) connect and collaborate with each other.

firing a customer

The shifting of investment of resources from a less attractive customer to more profitable ones.

CRM is now considered to be a critical part of a business strategy because of pressure from competitors.

True

unstructured data

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.

CRM helps in determining which customers to target based on known or learned characteristics that will drive growth. This describes which of the three CRM objectives?

customer acquisition

Having too many internal metrics puts the focus on what a company already knows and fails to focus on the unpredictably dynamic external marketplace. Which pitfall of marketing dashboards does this represent?

overreliance on inside-out measurement

A point-of-sale system is an example of a customer touchpoint.

true

When police are investigating a crime, they use video from posted cameras, verbal accounts from eyewitnesses, text from social media, and video and audio from police officers' body cameras. What characteristic of Big Data is BEST represented here?

variety