Midterm 2 notes

CRM so effective?

CRM allows firms to talk to individual customers and adjust elements of marketing program based on how customers react

Sources of Big Data

Comes from different sources, sources are within and outside organization and create and compile different groups

Country of Origin

Many people buy products that are from a certain country

Corporate IT sources

Sources of data within organization may include CRM databases, web analytic databases, enterprise resource planning databases and accounting-related database

Structured Data

datasets are numerical or categorical. organized and formatted so computer can read, organiz, and understood

Habitual decision

decisions made with little or no conscious effort

Hyperchoice

describes conditions where consumers have too many choices, leading them to make poorer decisions and experience greater frustration

Big Data

describes exponential growth of data, in massive amounts that are hard or impossible to process using traditional database techniques

Rich media

digital advertising term for ad that includes advanced features like video, audio elements, encourages viewers to interact and engage with content

Lead

individual or firm with potential interest in buying something you sell.

Direct Mail Campaign

intends to generate sale of product or service that can use similar tactics by creating unique promotional code to measure effectiveness of campaign

motivation

internal state that drives us to satisfy needs. State of tension exists that drive consumer toward some goal that reduces tension by eliminating need

Emotional Analysis

looks at content of social media communication within contexts of special brand or product and determine what emotional category communicationfits with

AI

machines able to carry out tasks in ways humans would consider smart

Marketing Automation

maintain and utilize all data that can be collected from customers through potential touchpoints

Information Overload

marketer has so much data they cant figure out what info is useful

attention is critical for advertising effectiveness

marketers continue to look for ways to ensure consumers attend to their messages

Information overload

marketers have so much data they can not figure out what info is useful

Martech

marketing technology. used to denote fusion of marketing and technology

Limited problem solving

means we do some work to make decision but not a great deal

Marketing metrics

measures that help marketers look at marketing campaigns, initiatives, channels, serve as control mechanism

A/B test

method to test effectiveness of altering one characteristic of marketing asset. test conducted through exposing users to original version, and other users to altered version

Click-through Rate(CTR)

metric that indicates percentage of website users that click on advertisement to visit website or webpage associated with it

operant conditioning

occurs when people learn their actions result in rewards or punishments

gamification

strategy where marketers apply game design techniques like awarding points, badges, levels, nongame experience to engage consumers

Cyber security

strong commitment of firms to protect digital data, such as electronic database from destructive forces and from unwanted users or actions

Deep Learning

subset of machine learning that allows machines to solve complex problems when using dataset that is very diverse, unstructured, interconnected

Internet of Things(IOT)

system where everyday objects are connected to internet and are able to communicate info through interconnected system

Search Engine Optimization(SEO)

systematic process ensures firm comes up at or near top of lists of search phrases related to business

customer relationship management(CRM)

systematic tracking of customer preferences and behaviors over time. Used to tailor value proposition closely as possible to individual unique wants and needs

Exposure

the extent to which a person's sensory receptors are capable of registering a stimulus

CRM Metrics and KPIs

three main categories; User adoption metrics, customer perception metrics, business performance metrics

C-Suite

top executive of firms so-named as they are composed of all chief officer roles(CEO,COO,CFO,CIO,CMO)

Market basket analysis

type of analysis develops focused promotional strategies based on records of which customers have bought products

Blockchain

type of database that exists on multiple customers, contains blocks of data that are linked together as chains of immutable data

Web Scraping

uses computer software to extract large amounts of data from websites

predictive analytics

uses large quantities of data within variables that have identified relationships to more accurately predict specific future outcomes

Data scientist

uses skills in math, CS, and trend analysis to find multiple, disparate data sources to find hidden insights that provide competitive advantage

Involvement

we perceive the consequences of the purchase

ZMOT

zero moment of truth

Consumer decision process

1.Problem Recognition 2. Information Search 3. Evaluation of Alternatives 4. Product choice 5. Post purchase evaluation

Chatbots

Computer programs that allow consumers to talk with computer using AI. uses natural language of processing and artificial intelligence to understand what a customer or client needs

Step 5: Post Purchase Evaluation

Consumer evaluates just how good of a choice he or she made

Cost-per-impression

Cost of advertisement is charged each time advertisement shows up on page user views

Step 2: Information Research

Customers check their memory and surveys the environment to identify what options might solve the problem

Step 4: Product Choice

Deciding on one product and acting on this choice is the next step in the decision-making process.

Augmented Intelligence

Goal of AI is creating systems that operate without humans, augmented intelligence seeks to create systems that make humans better, smarter, happier by being efficient with atomization

Government and nongovermental sources

Government provide many types of data from U.S. Census results

One-to-one marketing

Identify customers and get to know them in as much detail as possible Differentiate among these customers in terms of both their needs and their value to the company Interact with customers and find ways to improve cost efficiency and the effectiveness of the interaction Customize some aspect of goods or services offered to each customer

Chief customer officer(CCO)

Popular C-suite role, CCO used as firms leading force of all things customer related

Comparison-Shopping agents(shopbots)

Web applications that help online shoppers find what they are looking for at lowest price

Key performance indicators

The quantifiable metrics a company uses to evaluate progress toward critical success factors

Evoked set

all of the alternative brands a consumer is aware of when making a decision

Consideration set

alternative brands a consumer considers when making a decision

Machine learning

application of AI based on idea machines can and should have access to data and engage in learning themselves

Behavioural learning theories

assume learning occurs as a result of experiences and connections were formed between events

Lead nurturing

automated process of sending personalized and relevant content to prospect to build trust, making it more likely for them to make a purchase

Hierarchy of needs

categorizes motives according to five levels of importance. More basic physical needs being on bottom of hierarchy and higher spiritual and psychological needs at top

learning

change in behavior caused info or experience.

Commercial Entity Sources

collect data in large quantities to sell to organizations that derive value from them

Customer perception metrics

concerned with extent to which customer experiences are enhanced as a result of CRM

Step 3: Evaluation of Alternatives

consumer with info finds number of products they are interested in, then they focus on determinant attributes(features most important to differentiate and compare among the product choices) Use Evaluative criteria: dimension consumers use to compare competing product alternatives

unstructured data

contains nonnumeric information that is formatted only for human eyes and not easily understood by computers

Cost-per-click(CPC)

cost of advertisement is charged each time individual clicks the advertisement and is directed to web page market placed within advertisement

Anticipatory shipping

data-driven systems of delivering products to customers before they place an order, utilizing predictive analytics to determine what customers want, and shipping products automatically

attention

extent to what we devote mental processing to particular stimulus

Deepfake

fake video of people saying stuff they didn't

Customer retention

firms find big-spending customers, and target them with special offers and reward them for loyalty and increase likelihood of retention

Customer acquisition

firms include demographic and other information about customers in their database

Partner database sources

firms use channel partner mode. Two way exchange of info between purchasing organization and vendor through shared or integrated IT systems

Customer abandonment

firms want customers to take business elsewhere as servicing them costs firm too much

User adoption metrics

focus on extent to which employees are using CRM system as intended, include various IT metrics, and number of logins and data completeness

SMART goals

goals that meet criteria of being specific, measurable, achievable, relevant, timely.

Marketing Analytics

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

Subliminal advertising

hidden messages in marketers' communications

Social media source

increasing social media sites have consumers interacting with each other, brands, entities. Wealth of information is produced about how people feel about products and other stuff in their lives

Brand loyalty

occurs when someone buys the same brand over and over form preferences for favorite brand and never change their minds in course of a lifetime, makes it so people never change their minds in their lifetime, and make it difficult for rivals to persuade them to switch

Multitasking

occurs when we fit back and forth between different things

Step 1: Problem recognition

occurs whenever consumer sees significant difference between his or her current state of affair as and some desired or ideal state

classical conditioning

perceives two stimuli at same time. Person transfers their response from one stimulus at to the other

Internal influences

perception, motivation, learning, attitudes, personality, age groups, life style

Factors that influence consumers' likelihood of devoting processing activity to a stimulus

personal needs and goals, size, novelty

Touchpoint

point of interface between customers and company

Crystal ball scenario

predictive analytics can increasingly provide significant value to marketers

Perceived risk

present if product is expensive, or complex and hard to understand. Plays role when we think a bad choice will result in embarrassment or social rejection

Consumer behavior

process individuals or groups go through to select, purchase, use, dispose of goods, services, ideas, experiences to satisfy needs and desires

interpretation

process of assigning meaning to stimulus based upon prior associations we have with it and assumptions we make about it

Sentiment Analysis

process of identifying followers attitudes toward a product or brand through assessing contact or emotion of comments they post

Data Mining

process where analysts sift through Big Data they to find unique patterns for behavior among different customer groups

Perception

process where people select, organize, and interpret information from outside world. receive information in form of sensations.

Heuristics

provide consumers with shortcuts that simplify decision-making process

Business Performance metrics

receives the most attention because they assess outcomes related to profitability of company

Consumer satisfaction/dissatisfaction

refers to overall feelings, attitude, person has about a product after he or she purchases

Buyers remorse

reject product alternatives with attractive features, as we second-guess decision

AI

simplest terms is intelligence demonstrated by machines rather than natural intelligence of humans. allows computers to perform tasks like visual perception, speech recognition, decision making, language translation

URL could link to landing page

single page on website built for particular marketing opportunities.

external influences

situational influences(physical environment, time) Social influences(culture, subculture, social class, group memberships, opinion leaders, gender roles

Food Porn

social media posts featuring consumers' photos of their meals

Digital marketing channels

specific means of distribution that digital marketing communication can be delivered to current and potential customers

Data warehouse

store and process data, can be controversial