Podcast
Questions and Answers
What is the primary purpose of market targeting?
What is the primary purpose of market targeting?
Which variable is NOT commonly used in government market segmentation?
Which variable is NOT commonly used in government market segmentation?
Which segment focuses on user lifestyle and interests?
Which segment focuses on user lifestyle and interests?
What is an example of a behavior segmentation variable?
What is an example of a behavior segmentation variable?
Signup and view all the answers
Geographic segmentation is influenced by which of the following factors?
Geographic segmentation is influenced by which of the following factors?
Signup and view all the answers
Which of the following statements about demographic segments is true?
Which of the following statements about demographic segments is true?
Signup and view all the answers
What are interest communities primarily focused on?
What are interest communities primarily focused on?
Signup and view all the answers
Which psychographic factor can influence buying behavior?
Which psychographic factor can influence buying behavior?
Signup and view all the answers
In the consumer market, businesses primarily market to whom?
In the consumer market, businesses primarily market to whom?
Signup and view all the answers
Benefit segmentation is used to group consumers based on what?
Benefit segmentation is used to group consumers based on what?
Signup and view all the answers
What is the primary function of a marketing information system (MIS)?
What is the primary function of a marketing information system (MIS)?
Signup and view all the answers
Which type of data is collected specifically for the first time to solve a particular problem?
Which type of data is collected specifically for the first time to solve a particular problem?
Signup and view all the answers
What is an important consideration when using secondary data?
What is an important consideration when using secondary data?
Signup and view all the answers
Which analysis technique helps marketers understand customer behavior by examining their purchase history?
Which analysis technique helps marketers understand customer behavior by examining their purchase history?
Signup and view all the answers
What cornerstone of attracting online customers focuses on the trust aspect of brand perception?
What cornerstone of attracting online customers focuses on the trust aspect of brand perception?
Signup and view all the answers
Which strategy is effective for ensuring that communications are welcomed by consumers?
Which strategy is effective for ensuring that communications are welcomed by consumers?
Signup and view all the answers
What is an essential component of customer engagement marketing activities?
What is an essential component of customer engagement marketing activities?
Signup and view all the answers
In data analysis for marketing, what is the purpose of customer profiling?
In data analysis for marketing, what is the purpose of customer profiling?
Signup and view all the answers
How is data typically collected by accounting and finance personnel considered within the marketing context?
How is data typically collected by accounting and finance personnel considered within the marketing context?
Signup and view all the answers
Which of the following statements reflects the nature of data in databases before analysis?
Which of the following statements reflects the nature of data in databases before analysis?
Signup and view all the answers
Which of the following best describes segmentation in the business market?
Which of the following best describes segmentation in the business market?
Signup and view all the answers
What is a key limitation of using secondary data for marketing decisions?
What is a key limitation of using secondary data for marketing decisions?
Signup and view all the answers
Which type of market requires careful study of global factors like Internet usage and language?
Which type of market requires careful study of global factors like Internet usage and language?
Signup and view all the answers
Which analysis technique focuses on understanding customer purchase behavior through the frequency of their transactions?
Which analysis technique focuses on understanding customer purchase behavior through the frequency of their transactions?
Signup and view all the answers
Which of the following is NOT a common basis for psychographic segmentation?
Which of the following is NOT a common basis for psychographic segmentation?
Signup and view all the answers
What aspect does 'relevance' primarily address in online marketing strategies?
What aspect does 'relevance' primarily address in online marketing strategies?
Signup and view all the answers
What is a common method for segmenting consumers based on their product usage?
What is a common method for segmenting consumers based on their product usage?
Signup and view all the answers
What are the three key pillars that underpin customer engagement in marketing?
What are the three key pillars that underpin customer engagement in marketing?
Signup and view all the answers
Which factor is essential for determining a market segment's attitudes toward technology?
Which factor is essential for determining a market segment's attitudes toward technology?
Signup and view all the answers
What role does a marketing information system (MIS) play in a firm?
What role does a marketing information system (MIS) play in a firm?
Signup and view all the answers
What is the primary reason that data in marketing must be transformed into knowledge?
What is the primary reason that data in marketing must be transformed into knowledge?
Signup and view all the answers
Which type of analysis helps marketers determine which customers are most valuable based on their purchasing behaviors?
Which type of analysis helps marketers determine which customers are most valuable based on their purchasing behaviors?
Signup and view all the answers
What is a key disadvantage of using secondary data for marketing purposes?
What is a key disadvantage of using secondary data for marketing purposes?
Signup and view all the answers
Which cornerstone of attracting online customers emphasizes the importance of being perceived positively by the market?
Which cornerstone of attracting online customers emphasizes the importance of being perceived positively by the market?
Signup and view all the answers
What type of data is typically collected through web experiments and surveys to address specific issues?
What type of data is typically collected through web experiments and surveys to address specific issues?
Signup and view all the answers
Which market primarily involves selling goods and services to various levels of government?
Which market primarily involves selling goods and services to various levels of government?
Signup and view all the answers
What type of segmentation categorizes consumers based on their usage frequency of a product?
What type of segmentation categorizes consumers based on their usage frequency of a product?
Signup and view all the answers
Which segment type includes personality and lifestyle considerations?
Which segment type includes personality and lifestyle considerations?
Signup and view all the answers
Market targeting involves selecting market segments that are most appealing based on what criteria?
Market targeting involves selecting market segments that are most appealing based on what criteria?
Signup and view all the answers
Which of the following is commonly used to categorize businesses in the business market?
Which of the following is commonly used to categorize businesses in the business market?
Signup and view all the answers
Study Notes
Marketing Information Systems (MIS)
- Marketers use a Marketing Information System (MIS) to collect, analyze, and distribute information for decision-making.
- Many companies store data in databases and data warehouses for efficient management and analysis.
- Marketers access database information through web pages and emails, while customers may also have limited access.
- Data is only valuable when turned into knowledge to improve profitability.
Internal Records
- Information gathered from various departments, including accounting, finance, production, and marketing.
- Valuable data includes sales data, customer characteristics, and behavior, often collected through universal product codes (UPCs) and tracking user movements on websites.
Secondary Data
- Information that has already been collected for a different purpose.
- Offers quicker and cheaper access to information compared to primary data.
- May not always meet the specific information needs of e-marketers.
- Quality may be uncertain, data might be outdated, or collected for a different purpose.
- Marketers regularly gather business intelligence by analyzing macroenvironmental factors.
Primary Data
- Information collected for the first time to address a specific problem or question.
- Internet enhanced primary data collection methods:
- Experiments
- Focus groups
- Observation
- Survey research
Data Analysis and Distribution
- Four key data analysis methods for marketing decision-making:
- Data mining
- Customer profiling
- RFM (recency, frequency, monetary value) analysis
- Report generating
Technological Context
- Key factor for e-commerce success.
- Impacts on online consumer behavior.
Social and Cultural Contexts
- Reputation, relevance, and engagement are crucial to attracting online customers.
Reputation
- Based on the market's perception of a brand and its image.
- Consumers trust each other more than advertising.
- Consumers utilize social media for advice and recommendations.
- Marketers must engage in online conversations and learn from customer feedback.
Relevance
- Consumers dislike irrelevant communication.
- They value relevant and personalized interactions.
- Marketers use behavioral targeting and keyword advertising to deliver relevant content.
Engagement
- Marketers should provide relevant content or entertainment.
- Three pillars of customer engagement:
- Content engagement: Offering valuable and engaging content.
- Media engagement: Utilizing different media platforms for communication.
- Engagement marketing activities: Interacting with customers through activities and promotions.
Segmentation & Targeting Overview
- Marketing segmentation involves grouping individuals or businesses based on their product or service usage, consumption, or desired benefits.
- Market targeting focuses on selecting the most attractive market segments for the firm.
Three Online Markets
- Business Market: Companies selling products and services to other businesses.
- Segmenting businesses by industry type, company size, purchasing behavior, and needs.
- Government Market: Selling goods and services to different government levels.
- Segmentation by government agency type, budget size, and specific requirements.
- Consumer Market: Businesses marketing directly to individual consumers.
Market Segmentation Bases and Variables
Geographic Segments
- Distribution strategy is a driving force behind geographic segmentation.
- Countries are segmented based on internet usage rates and penetration.
- Geographic markets are evaluated by global Facebook and search engine adoption rates, language spoken, and other factors.
- Global markets require careful analysis.
Demographic Segments
- Online users now closely mirror the mainstream population demographically.
- E-marketers focus on:
- Millennials
- Children (Kids)
- Generation Z
Psychographic Segments
- User psychographics include:
- Personality
- Values
- Lifestyles
- Activities
- Interests
- Opinions
Interest Communities
- Ten important types of online communities:
- Social networking
- Six degrees of separation (LinkedIn)
- Three ways to target online communities:
- Provide online discussion groups, bulletin boards, and events or through company-owned social network pages.
- Advertise on another firm’s community site.
- Join the community and post as a member.
Attitudes and Behaviors
- Attitudes: Internal evaluations about people, products, and other objects.
- Behaviors: Observable actions a person takes.
- Psychographic information helps define and describe market segments.
- Attitude towards technology influences buying behavior.
Behavior Segments
- Two common segmentation variables:
- Benefits sought
- Product usage
- Benefit segmentation groups consumers based on desired product benefits.
- Product usage segmentation categories:
- Light, medium, and heavy product usage
- Brand loyal, loyal to a competitive product, switchers, and nonusers.
Marketing Information System (MIS)
- A system for gathering, analyzing, and disseminating marketing information to aid decision-making.
- Organizations use databases and data warehouses to store information.
- Both marketers and customers can access parts of the database through websites and emails.
- Data holds value when transformed into knowledge to increase profits.
Research Sources on the Internet
-
Internal Records: Data from accounting, finance, production, and marketing departments
- Example: sales data, customer characteristics, user navigation tracking.
-
Secondary Data: Data collected for other purposes.
- May not perfectly meet an e-marketer's information needs
- Potential issues: data relevance, quality uncertainty, and age.
- Marketers conduct business intelligence to analyze macroenvironment trends.
-
Primary Data: Information gathered for the first time to solve a specific problem.
- Enhanced by the internet through: experiments, focus groups, observation, survey research.
Data Analysis and Distribution
-
Data Analysis: Key types for marketing decisions:
- Data Mining: uncovering patterns and insights from data.
- Customer Profiling: understanding customer characteristics and behaviors.
- RFM Analysis: classifying customers based on recency, frequency, and monetary value of purchases.
- Report Generating: creating clear presentations of findings.
External Factors Affecting Online Consumer Behavior
- Technological Context: technology plays a crucial role in shaping online behavior.
-
Social and Cultural Contexts:
- Reputation: Consumers rely on peers for advice, trust is built on perception and social media influence.
- Relevance: Irrelevant marketing is disruptive, consumers value engaging and relevant content.
- Engagement: Content, media, and marketing activities contribute to customer engagement.
Segmentation & Targeting Overview
- Marketing Segmentation: grouping potential customers based on product use, consumption, or benefits sought.
- Market Targeting: selecting the most attractive market segments for a business.
-
Three Online Markets:
- Business Market: Businesses selling to other businesses.
- Government Market: Businesses selling to government agencies.
- Consumer Market: Businesses selling directly to individual consumers.
Market Segmentation Bases and Variables
-
Geographic Segmentation:
- Product distribution strategy, internet usage, Facebook/Search engine adoption, language, and other regional factors.
-
Demographic Segmentation:
- Millennials, Kids, and GenZ are key focus areas for e-marketers.
-
Psychographic Segmentation:
- Personality, values, lifestyles, activities, interests, and opinions.
-
Interest Communities:
- Types include social networking, LinkedIn (Six Degrees of Separation)
- Targeting strategies:
- Providing discussion groups, bulletin boards, company-owned social pages.
- Advertising on external community sites.
- Joining communities and participating as a member.
-
Attitudes and Behaviors:
- Attitudes: Internal evaluations of people, products, and objects.
- Behaviors: Observable actions.
- Technology attitudes influence buying behavior.
-
Behavior Segmentation:
- Benefits sought and product usage.
- Grouping consumers based on desired benefits from products.
- Segmenting based on product usage level (light, medium, heavy).
- Identifying user categories: brand loyal, loyal to competitors, switchers, and non-users.
Marketing Information System (MIS)
- Firms use MIS to assess information needs, gather data, analyze it and distribute insights to decision makers.
- Data is stored in databases and data warehouses.
- Marketers receive database information through websites and emails.
- Customers also access parts of the database.
- Data holds little value unless converted into actionable knowledge to increase profits.
Internal Records
- Collected by accounting, finance, production, and marketing personnel.
- Sales data provides insight into customer characteristics and behavior.
- Tracking user movements on web pages.
- Universal product codes are used to track sales.
Secondary Data
- Gathered from existing sources, often faster and cheaper than primary data.
- May not precisely meet e-marketer’s information needs.
- Data may be outdated or have unknown quality.
- Marketers use secondary data for business intelligence by scanning the macroenvironment.
Primary Data
- Information collected for the first time to address a specific problem.
- The internet enhances primary data collection.
- Methods include experiments, focus groups, observation, and surveys.
Data Analysis and Distribution
- Four significant types of analysis for marketing decisions:
- Data mining: extracting meaningful patterns from large datasets.
- Customer profiling: creating detailed customer profiles to understand behaviors.
- RFM (Recency, Frequency, Monetary Value) analysis: evaluating customer purchasing behavior based on recent transactions.
- Report generating: creating reports to communicate data insights.
Technological Context
- Technological developments influence online consumer behavior.
Social and Cultural Contexts
- Three key elements to attract online customers:
- Reputation: Consumers trust each other more than advertising.
- Relevance: Consumers dislike irrelevant advertising.
- Engagement: Marketers provide relevant content or entertainment.
Three Pillars of Customer Engagement
- Content engagement: captivating and valuable content.
- Media engagement: engaging media types like videos and interactive elements.
- Engagement marketing activities: interactive campaigns and incentives.
Segmentation & Targeting
- Marketing segmentation groups individuals or businesses based on their product or service use, consumption, or benefits.
- Market targeting involves selecting the most attractive market segments for a company.
Three Online Markets
- Business Market: companies sell products and services to other businesses.
- Government Market: selling goods and services to government agencies.
- Consumer Market: businesses marketing directly to individual consumers.
Market Segmentation Bases and Variables
- Geographic segments: segmenting markets based on location, Internet usage, and global adoption rates of social media and search engines.
- Demographic segments: classifying markets by factors like age, gender, income. Millennials, Gen Z and Kids are important segments for e-marketers.
- Psychographic segments: classifying markets based on personality, values, lifestyles, interests, and opinions.
- Interest communities: online communities focused on specific areas.
10 Types of Online Communities
- Social networking, forums, and blogs are examples of online communities.
- Six degrees of separation communities (LinkedIn) connect individuals through shared connections.
Targeting Online Communities
- Marketers reach communities through three strategies:
- Provide online discussion groups, bulletin boards, and events on company-owned social network pages.
- Advertise on other firms' community sites.
- Join the community and participate as a member.
Attitudes and Behaviors
- Attitudes: internal evaluations about people, products, and other objects.
- Behaviors: physical actions taken.
- Marketers use attitudes toward technology to predict buying behavior.
Behavior Segments
- Benefits sought: segments consumers based on the benefits they desire from a product.
- Product usage segments: categorizes consumers based on their usage, loyalty, and product switching behaviors.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on Marketing Information Systems and how they function to support decision-making in marketing. This quiz covers aspects of internal records, data warehousing, and the importance of secondary data in marketing strategies.
