MKTG 480 Ch. 5

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 the 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 the data that is generated in such a way that it does NOT possess a specific organizational structure that renders it readily analyzable fir knowledge creation

Big Data

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

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.

Customer Satisfaction

The level of liking an individual harbors for an offering.

Firing a Customer

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

Diagnostic Analytics

Utilizes data to explore the relationship between different marketing-relevant factors that influence the organization's performance either directly to indirectly

Predictive Analytics

Utilizes data to make predictions about future marketing outcomes and interests

Descriptive Analyst

Utilizes data to provide summary insights

Return on Marketing Investment (ROMI)

What impact an investment in marketing has on a firm's success, especially financially.

Customer Touchpoints

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

Customer Relationship Management (CRM)

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

At the strategic marketing level, a customer-centric culture includes, but is not limited to, the following major components:

1. Adopting a relationship or partnership business model overall, with mutually shared rewards and risk management 2. Redefining the selling role within the firm to focus in customer business consultation and solutions 3. Increasing formalization of customer analysis processes 4. Taking a proactive leadership role in educating customers about value chain opportunities available by developing a business relationship 5. Focusing on continuous improvement principles stressing customer satisfaction and loyalty

A great marketing dashboard is comprised of the following key elements:

1. Company goals translated into a set of marketing objectives 2. Measurement of financial impact of marketing programs 3. Tracking of how marketing assists such as the brand and customer relationships are processing 4. Execution of skills and competencies of the marketing team 5. Execution of other business processes necessary to deliver customer value 6. Continuous refinement of tools to increase access to and usability of customer insights 7. Insight on not only what is happening in the market but also why it is happening 8. A diagnostic for prediction, forecasting, and of course remediation 9. Ultimately, enhancing return on marketing investment (ROMI)

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

1. Knowledge Discovery 2. Marketing Planning 3. Customer Interaction 4. Analysis and refinement

Investment Decisions in Marketing Must Consider Four Basic Elements:

1. Level of Investment 2. Returns 3. Risks 4. Hurdle Rates

Potential pitfall that exist in marketing dashboard execution:

1. Overreliance on "inside-out" measurement 2. Too many tactical metrics; not enough strategic insight 3. Forgetting to market that dashboard internally

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.

Data Warehouse

A compilation of customer data generated through touchpoint that can be transformed into useful information for marketing management decision making and marketing planning

Marketing Dashboard

A comprehensive system providing managers with up-to-the minute information necessary to run their operation including the 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.

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 the purpose of either marketing research or development of market segmentation strategies

Sentiment Analysis

A types of analytic method that identifies the general attitude contained within a message through a analysis of its content

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

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.

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

Customer Lifetime Value (CLV)

Demonstrates that time and again that investment in CRM yields more successful long-term relationships with customers, and that these relationships pay handsomely in terms of cost savings, revenue growth, profits, referrals, and other important business success factors.

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.

Semi-Structured Data

Fits between structured and unstructured data in the sense that it contains some elements of structured that make it easier for machines to understand it 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 utilizes individual-level and market-level data to identify and communicate meaningful patterns within the data for the purpose of improving marketing-related decisions

Customer Loyalty

customers' commitment to a company and its products and brands for the long run

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