CIM275 Web Marketing

1
CIM275- Web Marketing

• Week 4 Marketing Knowledge

2
Objectives

• In this lecture you will be able to
• Identify the three main sources of data that
  e-marketers use to address research problems.
• Discuss how and why e-marketers need to check the
  quality of research data gathered online.
• Explain why the Internet is used as a contact
  method for primary research and describe the main
  Internet-based approaches to primary research.
• Contrast client-side, server-side, and real-space
  approaches to data collection.
• Highlight four important methods of analysis that
  e-marketers can apply to data warehouse
  information.

3
The Purina Story

• Nestle Purina PetCare Company wanted to know
  whether their web sites and online advertising
  increased off-line behavior.
• Nestle developed 3 research questions
• Are our buyers using our branded Web sites?
• Should we invest in other Web sites?
• If so, where should we place the advertising?

4
The Purina Story, cont.

• They combined online and off-line shopping panel
  data and found that
• Banner clickthrough was low (0.06).
• 31 of subjects who were exposed to both online
  and off-line advertising mentioned Purina.
• The high exposure group mentioned Purina more
  than the low exposure group.
• Home/health and living sites received the most
  visits from their customers.
• Would you also have selected petsmart.com and
  about.com for Purina PetCare ads?

5
Data Drives Strategy

• Organizations are drowning in data.
• Marketing insight occurs somewhere between
  information and knowledge.
• Purina, for example, sorts through hundreds of
  millions of pieces of data about 21.5 million
  consumers to make decisions.

6
Terabytes of Corporate Data
7
From Data to Decision Purina
8
Marketing Knowledge Management

• Knowledge management is the process of managing
  the creation, use and dissemination of knowledge.
• Examples of the uses of knowledge management can
  be found in Exhibit 6.4.

9
Uses of Knowledge Management
10
The Marketing Information System

• Marketers manage knowledge through a marketing
  information system (MIS).
• Many firms store data in databases and data
  warehouses.
• The Internet and other technologies have
  facilitated data collection.
• Secondary data provides information about
  competitors, consumers, the economic environment,
  etc.
• Marketers use the Net and other technologies to
  collect primary data about consumers.

11
Sources of data Internal records

• Accounting, finance, production and marketing
  personnel collect and analyze data.
• Nonmarketing data, such as sales and advertising
  spending
• Sales force data
• Customer characteristics and behavior
• Universal product codes
• Tracking of user movements through web pages

12
Secondary data

• Can be collected more quickly and less
  expensively than primary data.
• Secondary data may not meet e-marketers
  information needs.
• Data were gathered for a different purpose.
• Quality of secondary data may be unknown.
• Data may be old.
• Marketers continually gather business
  intelligence by scanning the macroenvironment.

13
Public and Private Data Sources

• Publicly generated data
• U.S. Patent Office
• American Marketing Association
• Privately generated data
• Forrester Research
• Nielsen/NetRatings
• Online databases

14
Primary Data

• Two electronic sources of primary data
  collection
• Internet
• Real space
• Primary data collection on the Net
• Experiments
• Focus groups
• In-depth interviews
• Survey research
• Real-space data collection refers to
  technology-enabled gathering of information
  offline.

15
Firms Using Online Primary Research
16
Primary Research Steps

• Research Problem
• Research Plan
• Research Approach
• Sample Design
• Contact Method
• Instrument Design
• Data Collection
• Data Analysis
• Distribution of Findings

17
Online Research Advantages Disadvantages

• Advantages
• Can be fast and inexpensive.
• Surveys may reduce data entry errors.
• Respondents may answer more honestly and openly.
• Disadvantages
• Sample representativeness.
• Measurement validity.
• Respondent authenticity.
• Researchers are using online panels to combat
  sampling and response problems.

18
Other Technology-Enabled Approaches

• Client-side Data Collection
• Cookies
• Use PC meter with panel of users to track the
  user clickstream.
• Server-side Data Collection
• Data log software
• Real-time profiling tracks users movements
  through a web site.

19
Real-Space Data Collection, Storage, and Analysis

• Offline data collection may be combined with
  online data.
• Transaction processing databases move data from
  other databases to a data warehouse.
• Data collected can be analyzed to help make
  marketing decisions.
• Data Mining
• Customer Profiling
• Recency, Frequency, Monetary (RFM) Analysis
• Report Generating