Marketing Chapter 5 Homework Direct Marketing Involving The Utilization The Data

Chapter 05

CRM, Big Data, and Marketing Analytics

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LEARNING OBJECTIVES

LO 5-2 Describe the CRM process cycle.

LO 5-4 Identify and appreciate the types of data used in marketing management decision

making.

LO 5-6 Understand the concept of a marketing dashboard and how it improves marketing

planning for a firm.

LO 5-7 Explain return on marketing investment (ROMI), including cautions about its use.

CHAPTER OUTLINE

I. OBJECTIVES AND CAPABILITIES OF CRM

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CRM, Big Data, and Marketing Analytics

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II. THE CRM PROCESS CYCLE

A. Knowledge Discovery

B. Marketing Planning

C. Customer Interaction

D. Analysis and Refinement

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III. MORE ON CUSTOMER TOUCHPOINTS

A. CRM, Touchpoints, and Customer Trust

B. CRM Facilitates a Customer-Centric Culture

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V. MARKETING ANALYTICS

A. Marketing Analytic Approaches

i. Descriptive Analytics

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ii. Diagnostic Analytics

iii. Predictive Analytics

B. Capabilities of Marketing Analytics Supported by Big

Data

i. Marketing Mix Enhancement

ii. Increased Personalization

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VI. THE MARKETING DASHBOARD

A. Goals and Elements of a Marketing Dashboard

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VII. RETURN ON MARKETING INVESTMENT (ROMI)

A. Cautions about Overreliance on ROMI

B. Proceed with Caution

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VIII. SUMMARY

KEY TERMS

customer relationship management (CRM) A comprehensive business model for increasing

revenues and profits by focusing on customers.

customer satisfaction

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return on customer investment (ROCI) A calculation that estimates the projected financial

returns from a customer. It is a useful strategic tool for deciding which customers deserve what

levels of investment of various resources.

firing a customer The shifting of investment of resources from less attractive customers to more

profitable ones.

data mining A sophisticated analytical approach to using the massive amounts of data

accumulated through a firm’s CRM system to develop segments and microsegments of

customers either for purposes of market research or development of market segmentation

strategies.

database marketing Direct marketing involving the utilization of the data generated through

CRM practices to create lists of customer prospects who are then contacted individually by

various means of marketing communication.

organizational learning The analysis and refinement phase of the CRM process that is based on

typically either numeric or text that is substantially limited to a certain set of input values.

unstructured data Data that is generated in such a way that it does not possess a specific

organizational structure that renders it readily analyzable for knowledge creation.

semi-structured data Data that fits between structured and unstructured data in the sense that it

contains some elements of structure that make it easier for machines to understand its

Chapter 05

CRM, Big Data, and Marketing Analytics

marketing analytics Include a set of methods facilitated by technology that utilize individual-

level and market-level data to identify and communicate meaningful patterns within the data for

predictive analytics An approach that utilizes data to make predictions about future marketing

outcomes of interest.

prescriptive analytics An approach that involves determining the optimal level of marketing-

relevant factors for a specific context by considering how adjusting their levels in varying ways

will impact different marketing outcomes.

behaviors and preferences on the related website).

marketing dashboard A comprehensive system providing managers with up-to-the-minute

information necessary to run their operation including data on actual sales versus forecast,

progress on marketing plan objectives, distribution channel effectiveness, sales force

productivity, brand equity evolution, and whatever metrics and information are uniquely relevant