Marketing Lectures 5-?

CRM stands for

Customer relationship management

CRM involves

the systematic tracking of consumers preferences and behaviors over time in order to tailor individualized value propositions.

CRM allows

• firms to get up close and personal

• a process by which firms enact their customer orientation.

• Capture information at each customer touchpoint.

CRM facilitates

one-to-one marketing

One-to One Marketing: Step 1

Identifty customers and get to know them in as much detail as possible

One-to-One Marketing Step 2:

Differentiate among these customers in terms of both their needs and their value to the company.

One-to-one Marketing Step 3:

Interact with customers and find ways to improve cost efficiency and effectivness of the interaction.

One-to-one Marketing Step 4:

Customize some aspect of good or services offered to each customer.

Share of customer idea

it’s easier and less expensive to keep a current customer than to get a knew one.

Share of customer

percentage of a given customer’s purchases in a category over time.

Firms look to increase ___ over share of market

share of customer.

Lifetime value of a customer

how much profit a firm will make on a customer.

Customer equity

financial value of a consumer relationship (how much it costs for you to maintain the relationship)

Customer prioritization

not all customers are equal (when looking at profitability)

CRM systems enable

markers to identify priority customers and customize communications and special offers accordingly.

Characteristics of CRM are made of

Customer Lifetime value, Share of customer, and customer prioritization

CRM leverages database technologies to customize customer interactions based on:

• share of customer

• lifetime value (and customer equity)

• customer prioritzation

Big data

popular term to describe the exponential growth of structured and unstructured data.

Structured Data examples

• date

• time

• census data

• facebook “likes”

Unstructured data examples

• body of emails

• tweets

• facebook status update messages

• video transcripts

Internet of things

there are a number of devices that share information between themselves which can be connected.

Big Data can provide competitive advantages in three main areas:

• Identifying new opportunities

• Transforming insights into better products

• Delivering timely information more efficiently and effectively.

Structured Data

data that is immediately in numerical format and can be used in numerical format.

Unstructured Data

data that is not immediately in numerical format and can’t be used in numerical format.

Sources of Big Data for Marketers

Social media, partners, commercial entities, corporate I.T, government and nongovernmental organizations.

Data mining biggest challegene for firms

what to do with it all

Data mining refers to

the process by which analysts sift through big data to identify unique patterns of behavior.

Reality mining

when machines view the change in trends of human behavior, usually about social norms.

Software algorithms

part of our daily lives.

Marketing analytics

comprises of technologies and processes that enable marketers to collect, measure, analyze, and assess marketing effectiveness.

predictive analytics

use large quantities of data to more accuarately predict future outcomes.

Major digital marketing channels

social media, short messages service (sms), search engines, email, digital ad networks.

Many marketing experts recommend ________ programs that allow a company to talk to individual customers and adjust elements of the marketing mix to satisfy the specific needs of each customer.

customer relationship management

In one-to-one marketing, the final step is to ________.

D) customize some aspects of the products or services offered to each customer

Which of the following statements about CRM programs is true?

B) CRM programs include information gathered from each customer touchpoint.

Any direct interface between customers and a company—whether it is online, in-person, or over the phone—is called a(n) ________.

touchpoint

Companies that successfully practice customer relationship management measure success by ________.

C) share of customer and lifetime value of the customer

10) CRM firms focus on increasing their share of ________, not share of market.

customer

The ________ is the potential profit generated by a single customer's purchase of a firm's products over the customer's lifetime.

customer lifetime value

________ is the financial value of a customer throughout the lifetime of the customer relationship.

customer equity

The term Big Data refers to the ________.

exponential growth of structured and unstructured data that are difficult to process using traditional database techniques

________ is a term that refers to a system in which everyday objects are able to communicate information throughout an interconnected system.

The Internet of Things

When a company uses computer software to extract large amounts of data from social media platforms, it is using ________.

web scraping

To take advantage of the massive amount of data now available, a sophisticated analysis technique called ________ is becoming a priority for many firms.

data mining

A company that compiles and uses large amounts of data to understand its customers is likely to have a ________ to store and process its data.

data warehouse

The process through which analysts sift through massive amounts of available data to identify unique patterns of behavior among different customer groups is called ________.

data mining

The text of an email or a social media post would best be categorized as ________.

unstructured data

129) Which of the following is NOT an example of a marketing metric?

touchpoint

Conversion rate is an example of ________.

marketing metrics

Marketers use the metric of ________ to see the effectiveness of their marketing efforts in comparison to their competitors' actions.

A) clickthrough rate

Marketers use the metric of ________ to see how engaging a website is to visitors in terms of the extent to which visitors explore it.

bounce rate

The process that individuals or groups go through to select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires is known as ________.

consumer behavior

Consumer behavior is best described as a(n) ________ process.

cognitive

When using ________, a consumer exerts little effort in making a purchase decision.

habitual decision making

A consumer purchase decision made with a great deal of consumer effort is a type of ________.

extended problem solving

5) A purchase decision made with some but not extensive effort is classified as ________.

limited problem solving

6) The consumer's ________ determines whether she will engage in habitual decision making, extended problem solving, or something in between the two.

level of involvement

7) The greater the ________ of a purchase, the higher the consumer's level of involvement will be.

perceived risk

10) ________ occurs whenever a consumer sees a significant difference between his current state of affairs and some desired or ideal state.

problem recognition

11) ________ is the step of the decision-making process in which the consumer checks her memory and surveys the environment to identify what options might solve her problem.

information search

17) Consumers often rely on decision guidelines, or mental rules of thumb, when weighing the merits of competing brands. These rules are referred to as ________.

heuristics

18) Brand loyalty in the product choice step of the consumer decision-making process is an example of a ________.

heurisitc

19) Consumer satisfaction/dissatisfaction is part of the ________ step of the consumer decision-making process.

post-purchase evaluation

20) When a consumer is determining her overall feelings or attitudes about a product after purchasing it, she is involved in the ________ step of the consumer decision-making process.

post purchase evaluation

21) Customer satisfaction with a purchase is based on which of the following?

B) how the actual performance of the product compares to customer expectation of performance

22) When a customer feels regret after purchasing a product, she is experiencing ________.

cognitive dissonance

23) The three main categories of influences that affect the consumer decision-making process are ________.

B) internal, situational, and social

41) ________ is the process by which people select, organize, and interpret information from the outside world.

perception

42) Which of the following statements about perception is true?

D) There is no perception without exposure.

44) Which of the following refers to the extent to which a person devotes mental-processing activity to a particular stimulus?

attention

45) Which of the following refers to the process of assigning meaning to a stimulus?

interpretation

46) ________ is an internal state that drives consumers to satisfy needs.

motivation

47) Which of the following is the lowest level of needs on Maslow's hierarchy of needs?

C) physiological needs

learning is

C) a change in behavior caused by information or experience

49) Through ________, a person repeatedly perceives two stimuli at the same time and eventually transfers the response from one stimulus to the other.

classical conditioning

50) ________ occurs when people learn that their actions result in rewards or punishments.

classical conditioning

51) Cognitive learning theories assume that ________.

D) people are problem solvers who do more than passively react to associations between stimuli

an attitude is

D) a lasting evaluation of a person, object, or issue

53) A person's attitude has three components: ________.

A) affect, cognition, and behavior

54) ________ is the feeling component of attitudes.

affect

55) ________ is the knowing component of attitudes. It is the beliefs or knowledge a person has about a product and its important characteristics.

cognition

personality is

E) the set of unique psychological characteristics that consistently influence the way a person responds to situations in the environment

57) A person's ________ is composed of a mixture of his beliefs about his abilities and observations of his own behavior and feelings (both positive and negative).

self-concept

58) ________ refers to how positive a person's ________ is.

affect; attitude

59) AIO stands for ________.

A) activities, interests, and opinions

61) McDonald's placement of a small toy in each Happy Meal as a reward for coming to the fast-food restaurant and ordering its food is based on which theory of learning?

operant conditioning

62) Beautiful actresses appear in ads testifying to the quality of a brand of hair coloring products. This is an application of which learning theory?

observational learning

63) A marketer of hair care products targeted at African American women created an advertising message that told the women their hair could be worn any way they wanted, not just straight. The message suggested the women did not need to conform to the mainstream media definition of beauty. It is most accurate to say that this ad was based on an understanding of ________.

self-concept

64) There is a trend in the United States toward rediscovering the flavor of regional cooking and the use of locally grown ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to recreate culinary traditions. This change in ________ is one of the reasons the number of farmers markets in the United States has increased by 70 percent in the last decade.

lifestyles

76) ________ is made up of the values, beliefs, customs, and tastes produced or practiced by a group of people.

culture

77) A group coexisting with other groups in a larger culture whose members share a distinctive set of beliefs or characteristics is a ________.

subculture

78) ________ is the overall rank of people in a society.

social class

83) A ________ is a set of people a consumer wants to please or imitate.

reference group

84) ________ often influence others' attitudes or behaviors because others perceive them as possessing expertise about a product.

opinion leaders

85) Some expectations regarding appropriate attitudes, behaviors, and appearances for men and women come from society's strong pressure to conform to ________.

gender roles

89) According to ________, men are not supposed to like movies that are described as "chick flicks," and women are not supposed to like movies that emphasize violence and destruction.

gender roles

100) ________ is the marketing of goods and services that businesses and other organizations buy for purposes other than personal consumption.

A) Business-to-business marketing

101) Business-to-business marketing differs from consumer marketing in that business-to-business marketing ________.

D) may involve competitive bidding and price negotiations

cost per click

advertiser is charged only when user clicks on ad; more expensive and requires greater interaction.

cost-per-impresson

advertiser is charged each time ad shows up on user page; less expensive, but not as easy to measure.