3-1 chapter three. 3-2 secondary data vs. primary data secondary data: data that have been gathered...
TRANSCRIPT
3-1
Chapter Three
3-2
Secondary Data vs. Primary Data
Secondary Data:
• Data that have been gathered previously.
Primary Data:
• New data gathered to help solve the problem under investigation.
Key Terms & Definitions
3-3
• Can help to clarify or refine the issue or problem
• Might provide a solution to a research problem
• Might provide primary data research alternatives
• Can alert the researcher to other problems
• Provides background information enhancing research credibility
• Usually less expensive and faster to gather
Advantages of Secondary Data
Key Terms & Definitions
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• Lack of Availability• Might not be any available data on your topic
• Lack of Relevance• Data might be outdated
• Inaccuracy• Might be biased--intentionally or unintentionally• Questionable source
• Insufficiency• Not enough information exists
Disadvantages of Secondary Data
Key Terms & Definitions
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Assessing Secondary Data
Key Terms & Definitions
Who gathered the data?
What was the purpose of the study?
What information was collected?
When was the information collected?
How was the information collected?
Is the information consistent with other information?
Who gathered the data?
What was the purpose of the study?
What information was collected?
When was the information collected?
How was the information collected?
Is the information consistent with other information?
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Internal Database:
• A collection of related information developed from data within the organization.
Database Marketing:
• Marketing that relies on the creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns to create a targeted marketing mix.
Internal Databases
Key Terms & Definitions
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• Creation of large, up-to-date, computerized file
• Can include current, past, or potential customers
• Might be focused on demographic/purchase behaviors
• Development of customer profile results
• Should enable one to generate direct marketing mailers /e-mails targeted at specific customers based on their buying behavior
• Can be used to collect customer information from your website
• Should be organized to enable you to search the database using queries
• Should be compatible with database software that will enhance analysis
Some Key Features:
Internal DatabasesContinued
Key Terms & Definitions
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Neutral Network:
• A computer program that mimics the processes of the human brain and thus is capable of learning from examples to find patterns in data.
Data Mining:
• The use of statistical and other advanced software to discover non-obvious patterns hidden in a database.
Internal DatabasesContinued
• Some applications include:• Customer acquisition• Customer retention• Customer abandonment• Market basket analysis
Key Terms & Definitions
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Customer Acquisition:
• In the first stage of a two-stage process, direct marketers apply data mining methods to discover customer attributes that predict their responses to special offers and communications such as catalogues. Attributes are matched in the second stage to match customers with products or services they are most likely to choose
Data Mining
• Some companies that use data mining:• Amazon• J.C. Penny• Starbuck’s• GroupOn
Key Terms & Definitions
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Customer Retention:
• In a typical marketing application, data mining identifies those customers who contribute to the bottom line, but are likely to leave and go to a competitor. Retaining vulnerable customers can save a company millions.
Data MiningContinued
• Clothing retailers will send out catalogues with special offers to previous customers who haven’t shopped in a while in order to lure them back to the company.
Key Terms & Definitions
3-11
Customer Abandonment:
• Some customers cost more than they contribute. Companies use data mining to identify those customers and may use it to encourage them to go elsewhere.
Data MiningContinued
• FedEx, for example, will not directly market to customers who spend very little. This doesn’t mean they won’t provide service, but they are unlikely to receive direct phone calls or emails.
Key Terms & Definitions
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Market Basket Analysis:
• Identifying associations among product purchases in point-of-sale transactions can help retailers develop targeted marketing not only for their advertising choices, but also for their direct marketing.
Data MiningContinued
• Social media increased exposure for market basket analysis but also increased concerns from consumers about identity theft.
Key Terms & Definitions
Potential Uses in Marketing:• Customer acquisition• Customer retention• Customer abandonment• Market basket analysis
Internal DatabasesContinued
3-13Key Terms & Definitions
Using online and offline data to understand a consumer’s habits, demographics, and social networks in order to increase the effectiveness of online advertising.
Only 4% of Internet users account for 67% of all display ad clicks. Only .1% of people actually click through the average display ad.
Behavioral Targeting
3-14Key Terms & Definitions
3-15
Marketing Research Aggregators
Key Terms & Definitions
A company that acquires, catalogues, reformats, segments, and resells reports already published
by large and small marketing research firms.
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Battle for Privacy
Identity Theft and Government Action
Key Terms & Definitions
Federal Laws:• Gramm-Leach-Bliley Act (Financial Services Act)• Health Insurance Portability and Accountability Act• The Fair Credit Reporting Act (FCRA)• The Children’s Online Privacy Protection Act (COPPA)
State Laws:• California’s Notice of Security Breach Law
A Possible Problem:
Getting paid to give up your privacy--How much money would it take to get you to give up your privacy?
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Battle for Privacy
Tracking Cookies, Behavior & Patterns
Key Terms & Definitions
While the government develops laws, most do not take effect until after a major breach. Tracking cookies on websites may determine• Frequently visited websites• Frequent shopping patterns• Health Data• Financial Information
Social Media such as Facebook “likes” provide similar, trackable data that the social media giant can then use to target the advertising they sell.
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Decision Support Systems (DSS)
Key Terms & Definitions
Key Components:• Interactive• Flexible• Discovery-Oriented• Easy to Learn and Use
An interactive, personalized information management system, designed to be initiated and controlled by individual decision makers.
An interactive, personalized information management system, designed to be initiated and controlled by individual decision makers.
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Decision Support Systems (DSS)Continued
Key Terms & Definitions
Why use:• Access to information for
multiple departments• Isolate problems and trends• Aggregate the data to
discover new questions
A DSS can sort, regroup, total, average, and manipulate data in a variety of ways. Allowing the manager to shift gears as the user changes topics, match information to the problem at hand and more.
A DSS can sort, regroup, total, average, and manipulate data in a variety of ways. Allowing the manager to shift gears as the user changes topics, match information to the problem at hand and more.
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Decision Support Systems (DSS) Continued
Key Terms & Definitions
Ask a what if question• Managers can follow their
own train of thoughts while analyzing data whether checking holiday sales or the trend for a new product launch.
Managers who use a DSS can conduct sales analyses, forecast sales, evaluate advertising, analyze product lines and keep tabs on marketing trends and their advertisers.
Managers who use a DSS can conduct sales analyses, forecast sales, evaluate advertising, analyze product lines and keep tabs on marketing trends and their advertisers.
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Key Terms & Definitions• Secondary Data• Primary Data• Advantages of Secondary Data• Disadvantages of Secondary Data• Secondary Data Limitations• Internal Database• Database Marketing• Battle For Privacy• Neural Network• Data Mining• Marketing Research Aggregator• Decision Support System (DSS)• Behavioral Targeting
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