Chapter 5: Big Data & Marketing Analytics

What has today's consumer evolved into?

An omni-channel media user

What is data mining?

Analysts sift through Big Data to identify patterns, trends, etc.

What are the sources of data that live with the organization and might include?

CRM databases, web analytic databases, enterprise resource planning databases (ERP), and even accounting related databases

What are examples of commercial entities?

Companies collect data in large quantities to sell to other organizations: credit card purchase data and supermarket scanner data

What are the four important data mining applications for marketers?

Customer acquisition, customer retention and loyalty, customer abandonment, and market basket analysis

What is one advantage of digital marketing?

Data come in at the speed at which data travel, which is almost instantaneous; marketers can track the performance of digital marketing initiates and determine their performance both in the very short term and over the long term

What is scanner data?

Data derived from items that are scanned at the cash register when you check out with your loyalty card

What is structured data?

Data that are typically numeric or categorical, can be organized and formatted in a way that is easy for computers to read, organize, and understand, and can be inserted into a database in a seamless fashion; data, time, census data, and Facebook likes

What are the internet of things?

Describes a system in which everyday objects are connected to the Internet and in turn are able to communicate information throughout an interconnected system

What are the government and nongovernmental organization sources?

Government-generated data: U.S. Census, Index of Economic Freedom, Bureau of Transportation Statistics, Bureau of Labor Statistics, and Recalls.gov

What are the three main areas for big data?

Identifying new opportunities through analytics that yield greater return on investment (ROI) on marketing efforts; turning insights they gain into products and services that are better aligned with the desires of consumers; delivering communications on products and services to the marketplace more efficiently and effectively

To help reduce cognitive load and clerical effort, what do firms display?

Marketing automation

What is sentiment analysis?

Measuring brand attitude by assessing context or emotion of online comments; brand mapping

What is an omni-channel media user?

Most get our information about the world from multiple sources including computers, tablets, and phones, and we freely move from one to another in the course of a day

What is unstructured data?

Nonnumeric information that is typically formatted in a way that is meant for human eyes and not easily understood by computers; body of emails, tweets, Facebook status update messages, and video transcripts

What is customer prioritization?

Not all customers are equal ... in terms of profitability!; CRM enables marketers to identify high priority customers: customize communications / offers

What is important to know when using metrics for marketing control?

Not practical to use too many metrics at once to measure marketing effectiveness; identifying the right metrics that align with the desired outcomes of your marketing strategies ensures that the right controls are in place and that the organization focuses on synchronizing the most important outcomes with the correct marketing decisions

What would an example be of a marketer prioritizing a customer?

Personal selling for high-volume customers; website for low-volume (smaller) customers special perks for frequent customers; standard product for infrequent customers

What are the three benefits to buyers and sellers?

Real-time demand; fewer stock-outs; track movement in supply chain

What is CLV?

Represents how much profit a firm expects to make from a particular customer, including each and every purchase he or she will make from then now and in the future; this metric describes the potential profit that a single customer's purchase of a firm's products generates over the customer's lifetime; number years times value per year

What is an example of social media sources?

Sentiment analysis

What are the three critical customer-related metrics that CRM facilitates?

Share of customer, customer lifetime value (CLV), and customer prioritization

What are the five sources of big data?

Social media sources, corporate IT sources, government and nongovernmental organization sources, commercial entity sources, and partner database sources

What are the two types of data in electronic format?

Structured data and unstructured data

What is CRM?

Systematically tracking consumers' preferences and behaviors; tailored value propositions; firms get "up close and personal"; capture information at each customer touchpoint

What are the characteristics of marketing analytics?

These solutions provide marketers with a holistic means to look at the performance of different marketing initiatives; then, they take the Big Data and makes sense out of it for use in marketing decision making; digital marketing offers an attractive solution due to the easy application of marketing analytics it brings; enables marketers to get a better sense of the specific ROI they receive when they use a specific channel as opposed to the guesswork of earlier days

What is the biggest challenge of Big Data?

Too MUCH data

What are the four concerns of big data?

Volume, velocity, variety, and veracity (accuracy)

What are partner databases

2-way information exchange between purchasing organization and suppliers; benefits to buyers and sellers

What does each action one takes online leave?

A digital footprint

What is marketing automation?

A group of systems and technologies that can be used to establish a set of rules for handling different marketing related processes in an automated fashion; can relate to the collection and processing of data as well as execution of different customer-oriented actions; greater automation of analytical and operational marketing processes is not just desirable in today's competitive marketplace; it's a necessity

What is marketing analytics?

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

What is big data?

A popular term to describe the exponential growth of data - both structured and unstructured - in massive amounts that are hand or impossible to process using traditional database techniques

What is an example of CRM in action?

Amazon: very focused on their customers; "people who bought this looked at this"; have information based on your previous orders; Amazon Prime: value: instantly credit a return and gives you 30 days to return the product

What is share of customer?

% of a customer's purchases in category over time; easier / less expensive to keep current customer than to acquire new one; 5 - 10x more expensive to sell new customer; increase Share of Customer, rather than market share: build brand loyalty and upselling