2. 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?
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.
2
3. Data Drives Strategy
Organizations are drowning in data.
Survey results, internal records, private reports,
government reports.
Click stream data, web analytics, etc.
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.
5. 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.
6. Uses of Knowledge Management
Wal-Mart
Kmart
Sears
Osco/Savon Drugs
Casino Supermarkets
W. H. Smith Books
Otto Versand Mail Order
Amazon.com
Scanner Check-Out Data Analysis
Sales Promotion Tracking
Inventory Analysis and Deployment
Price Reduction Modeling
Negotiating Leverage with Suppliers
Frequent-Buyer Program Management
Profitability Analysis
Product Selection for Markets
Representative FirmUse in the Retail Industry
AT&T
Ameritech
Belgacom
British Telecom
Telestra Australia
Telecom Ireland
Telecom Italia
Scanner Check-Out Data Analysis
Call Volume Analysis
Equipment Sales Analysis
Customer Profitability Analysis
Cost and Inventory Analysis
Purchasing Leverage with Suppliers
Frequent-Buyer Program Management
Representative FirmUse in the Telecom Industry
7. 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.
8. Soures 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
Conversion rate, ads effectiveness, tracking customer
behavior
Customer characteristics and behavior
Universal product codes
Tracking of user movements through web pages
9. Secondary data
Can be collected more quickly and less
expensively than primary data.
Secondary data may not meet e-marketer’s
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 environment.
10. Public and Private Data Sources
•Publicly generated data
• U.S. Patent Office
• American Marketing Association
• Social Media Database
•Privately generated data
• Well Known Expert’s Blog - Seth Godin’s Blog
• Forrester Research
• Nielsen/NetRatings
• Pew Research Center
•Online databases
11. Competitive Intelligence
Analyzing the industry in which a firm operates as a
input to the firms' strategic positioning to
understand competitors vulnerability
Sources
Competitors press release
New product launch
New alliances
Co-brands
Trade show activity
Social media conversations
Web site logs
Third-party industry specific sites
12. Information Quality
Advise to be objective, especially before using
information on web pages
Control for cultural differences
Don’t get distracted by website design
Discover the website’s author identity
Try to determine whether the site author is an
authority is an authority on the web site topic
Check to see when site was last updated
Determine how comprehensive the site is
Try to establish triangulation
Check to site content for accuracy
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. Primary Research Steps
Research Problem
Research Plan
Research Approach
Sample Design
Contact Method
Instrument Design
Data Collection
Data Analysis
Distribution of Findings
16. 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.
17. 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.
18. 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