Week 11 - Digital Marketing and Marketing Analytics Flashcards
What is digital marketing
all the activities that are involved in planning and implementing marketing in the electronic environment, it allows consumers to interact deeply with the marketing organisations without the need for dealing with an actual person
includes the internet and web on computers,tablets, smartphones and other information telecommunication technologies
The characteristics of digital marketing
Profiling
Interactivity and community
Control
Accessibility and comparability
Digitalisation
Profiling
The process of gettng to know about potential customers before they make a purchase and to find out more about existing customers
Information can be gathered in the digital environment through
- requiring registration
-use of cookies on websites
-competitions
Interaction and community
Other than in0person interaction digital marketing offers the most opportunity for interaction between the marker and the customer
can occur in various ways:
- A virtual customer service officer
- a real customer service officer
- email, newsletters and RSS feeds
- survey participation
- online communities
Control
Individuals exercises varying degrees of control over their interaction with marketing.
- push advertising: advertising sent from the marker to the customer
- pull advertising: advertising that the customer actively seeks out
Control is the ability of the consumer to determine how they interact with the marketing message and to influence the presentation and content of the marketing message.
Accessibility and comparability
The web provides individuals with more ability than ever before to research products, compare products and seek the opinions of others
Their research is conducted outside the influence of a salesperson
Customers are far more informed about products and competing products than ever before
Digitalisation
the ability to deliver the product as information or to present information about a product digitally
Some products can be completely digitised, e.g. music
While not all products can be completely digitised, many retailers are finding that their services can be, e.g. online grocery shopping
Digital marketing methods
- paid, owned, and earned media, brochure sites
- social media, viral marketing, portals
- Search engine optimisation; search engine marketing
-Email, SMS and MMS marketing - Apps, VR, E-commerce
Paid, Owned and earned media
Paid: any digital advertising that a business pays for
Owned media: Any digital channel owned by a business in which content is controlled and governed by the organisation
Earned: Content that is generated via people outside the business
brochure sites
websites that are essentially an online advertisement for the organisation
Usually present product and contact details on highly visual and eye-catching way but offer little other functionality
Useful for businesses that seek to present portfolio if work that shows the customisation of their offering
They often suit the limited budget of a small business, or one that offers a highly customised service or bespoke products
Social media
The various websites that use technologies and experiences involve online communities where members contribute to and build the community and content.
Users can control their experience through customisation and interactivity.
encourage interactive information sharing and user-generated content
Viral marketing
use of social networks to spread a marketing message via earned
media
These marketing messages are spread by friends and colleagues, they have a much greater chance of being considered than traditional advertising
it is controlled by the online community, and some businesses pay a heavy price to try and manipulate the online word-of-mouth
Portals
A website that is design to act as a gateway to other related sites
Popularity has declined as search engines have become more powerful, and users can find better content themselves
Still widely used by the government where the intention is to provide citizens with a starting point from which to access all government services
Search engine optimisation
Tailoring certain features of a website to try to achieve the best possible ranking in search results returned by a search engine
An enormous industry has developed around SEO, and numerous businesses exist that specialise in providing SEO services to other businesses.
The effectiveness of SEO has also declined as users have become knowledgeable and cynical about how businesses work to appear among the top hits on search engines
Search engine marketing
Many search engines now seek paid advertising to place on search results pages.
The advertisements at the top of search results are sponsored links or ‘ads’.
Sponsored links are appealing to businesses because they are only returned for searches that are relevant to the advertised product, effectively ensuring the link is placed more prominently than links that are returned purely due to SEO efforts
Email, SMS and MMS Marketing
While spam is an unwelcome way of marketing, legitimate email and SMS marketing can be an effective way to build customer relationships.
When a business makes a sale, a well-timed follow-up email can help reduce purchase dissonance and can prompt a further purchase.
The chances are that an SMS will be read (and perhaps responded to) within minutes of being received.
Apps
A phenomenon that has coincided with the increased availability, affordability and consumer uptake of smartphones.
The development of application software (or ‘apps’) to run on these mobile devices.
Australian consumers are becoming increasingly mobile-active, with an estimated 17.9 million smartphone users in Australia and 15 million of us having access to a tablet device.
Apps (e.g. Ticketmaster) have the capability to:
o Find events you like
o Access setlists for shows you have attended
o Turn on auto-location to find nearby events
o Access your account and see past or upcoming orders
o Integrate with social media
o Access artist and venue info
VR
When Facebook launched their virtual reality system Oculus Rift, it was difficult to predict the roll-on effect, but the business community knew this needed to be taken seriously.
Virtual reality (VR) is not new; it has been experimented with since the 50s and 60s.
VR has now expanded into retailing.
E-Commerce
When the marketing exchange occurs via the internet, mobile phone or other telecommunications technology, it is known as e-commerce.
E-commerce is particularly attractive to small, niche businesses.
The web enables them to reach consumers across the globe, potentially making viable a business that could not generate adequate turnover just through local customers.
Ethical and legal issues
Ethical and legal issues mar arise from:
o Pervasive nature of modern information technologies
o Personalised nature of digital marketing
o International nature of modern information technologies
o Failure of laws and international agreements to keep pace with technological change and innovative use of new technologies
Privacy
One of the main focuses of digital marketing is to gather information about customer and potential customers to use in formulating market strategy
For many people, collection of the information itself is not a problem (although privacy advocates oppose it). What most people are concerned with is how the information is used.
There are few laws or rules aimed directly at regulating privacy protection online.
Misleading or deceptive conduct
Companies must be honest and truthful in all their business dealings, and if they are not, they are liable to be punished by the law
Unfortunately the internet is used by some to fraudulently obtain money from others
Spam
The most prevalent type of spam is advertising-related email (36%). The second most common is adult related in subject (31.7%). The third most common is unwanted emails related to financial markets (26.5%).
In Australia, the relevant legislation is the Spam Act 2003. In New Zealand, it is the Unsolicited Electronic Message Act 2007
Evaluating Digital Marketing Effectiveness
Practitioners actively engaged in digital marketing know that it is notoriously difficult to measure the effectiveness of digital marketing campaigns.
Online advertising is one area that offers further potential for marketers to assess the effectiveness
Deciding on a particular metric that quantifies an aspect of marketing performance can be invaluable information for the online marketer to know how successful a marketing activity is
The Significance and Importance of Data
It is essential to ensure that the data is processed correctly to provide meaning and value to the company. As data size increases it is important to look at valuable data rather than big data
Understanding and obtaining data
For data analytics to be effective, an organisation must know the context in which the data was gathered and entered into the database, ensuring it measured what is was supposed to measure
If the data is an internal management information system (MIS) the IT department can help the marketing team obtain the data using structures query language (SQL)
Sources of data
- databases
- Internet of things
- scanner data
- web data
- Mobile data
- social media data
- survey data
Databases
the information stored in databases can be organised using a database management system (DBMS)
Internet of things
a term used to describe a system of electronic devices that are
connected to a network, such as the internet.
Scanner data
also known as scanner panel data, is detailed on sales of consumer
goods.
Web data
there a few ways to get data from the web
- ‘Scrape’ the data from the website
- Use web-based application programming interfaces (APIs)
- Extract data from PDFs that are posted online
Mobile data
phones all have tracking and search history information of users.
there are projected to be more then 4.78 billion smart phone users in the world in 2020
Social Media Data
social media groups can be though of as online focus groups and can be very informative even though they are secondary data.
Survey data
surveying people from their target markets and analysing that data, unfortunately no way to tell if responses are truthful
Data issues
-Spurious correlation
- data leakage
- noisy data and data preparation
- computing resources
- analysis resources
- storage resources
Spurious correlation
where variables that have nothing to do with each other appear to be related
Data leakage
occurs when data from the model is shared with data that was not used in the modelling process (sometimes knows as test data)
noisy data and data preparation
‘noisy’ or ‘dirty’ data means it can contain all sorts of issues such as extreme values, missing data, incorrectly measured data, corrupted data. Another issue is the absence of data. Known as missing data.
Computing resources
Issues with physical hardware capacity to store and distribute the data
Analysis resources
not having the software to analyse the data
marketing data scientists use commercial software packages such
as SAS, Minitab, Tableau, SPSS, Matlab and Stata
Storage Resources
to help reduce the burden and cost of storing terabytes of data, we should generally focus on keeping current customer data. A way to get around the issue of data storage is using cloud computing.
Data Governance
The high volume of data available means many organisations now regard it as a monetised asset/commodity.
Others argue that since data can be cleaned and aggregated to fit a purpose, it is not a true raw commodity
Data-driven marketing
A data-driven organisation is one that rests on a base of well-governed data.
Companies now need to be aware of and use data analytics to drive decision-making
In today’s environment, where there are few remaining areas of differentiation in marketing capabilities, you need to have the ‘right’ people who are trained in using statistical software as well as understanding business processes and how the data was
obtained
Data and analytics
Data are facts about or details of objects that can be compiled into information.
Analytics is the process of organising data into meaningful information.
The benefits of analytics come from not only using the right analytics but also using the right data to generate insights.
To truly be effective in using data, an organisation must integrate the data from multiple silos and departments.
Data-driven decision making
The marketing insights and decisions that arise from the analysis of data about or from consumers
One of the easiest ways to become a data-driven organisation is to provide dashboards for the organisations so that employees at all levels can see and use data to help them in their jobs
Data-driven marketing approaches must use the SMART principle
attribution modelling, which seeks to find out which touchpoint is most instrumental in a customer’s purchase decision.
Types of marketing that are data-driven
Customer relationship management (CRM)
Dashboards
Customer lifetime value
Social media listening
Customer relationship management (CRM)
Companies use to manage and analyse customer interactions and data throughout a customer’s life cycle
Goal is to improve business relationships with customers, assist in customers retention and drive sales growth
it can keep customers engaged with our product, and if done properly, we can have them become an extension of the internal sales team
Dashboards
A data visualisation tool that displays current status of metrics and KPI for an enterprise
they consolidate and arrange numbers, metrics and sometime performance scorecards on a single screen, providing agggregated data to users who do not need to see individual-level data
Customer lifetime value
assesses customer’s value over their lifetime as a customer
using data collected from customers over time, we can see how much a customer has purchased and how often
If a customer has high lifetime value, it may be worth marketing to them.
Part of using a customer’s lifetime value is forecasting future sales
Social listening
the process of judging how a brand or organisation is being talked about on various social media platforms
Since reviews and social media comments about a company or its product are valuable data, marketing analysts can better tailor a good or service based on the voice of the customer
Data-Driven results
the empowerment that comes with transformative knowledge of
customer, guest, product, patient or fan information, as well as ongoing access to relevant, real-time data in an easy to understand format.
enables businesses to make educated, actionable and profitable decisions
The proper use of data analytics for marketing decisions can require an organisation to change the way they have been operating which can be difficult and time-consuming
Data analytics in marketing
marketing analytics
descriptive analytics
predictive analytics
Analytics can be used for customer insight, segmentation and targeting, as well as automating menial tasks
Marketing analytics
practice of measuring, managing and analysing marketing performance
descriptive analytics
simplest type and is typically used to explain what has happened
predictive analysis
Forecasts what might happen in the future
How to make marketing analytics successful
must be a business case as well as appropriate data and an ability to deploy and analytics situation
Predictive modelling, k-means clustering, association rules and visual data analytics are examples of different types of analyses that might be used depending on the specific business case
Artificial intelligence and machine learning
Machine learning involves the study of algorithms that can extract information automatically. it’s mostly used to make predictions and understand the market
three types of machine learning
1. supervise
2. unsupervised
3. reinforcement
Data ethics and the future of marketing analytics
Being relatively new, there are still some issues related to the field of analytics.
However, as organisations become obsessed with data and the potential cost savings, there may be too much overreliance on data.
Many customers dear that their personal data is being misused by companies.
Organisations must realise that in marketing analytics, there are opportunity costs.
Legal and Ethical Issues in Data Analytics
An issue with big data is that sometime there is too much data to go through and analyse, but sometimes it is not ethical to analyse data.
Data Snooping: when an analyst picks a model to confirm what they want to prove. The ethical issue related to data snooping is that of confirmation bias. It is a serious issue in analytics.
Data Breach: when information is intentionally or unintentionally released from a secure location in a company.
Analytics skills for decision makers
To be prepared for a data centric world, even non-quantitative marketers need to have basic numeracy and data literacy skills.
Lack of knowledge of statistics can lead to serious errors in analytics interpretation.
Marketers that use a combination of human intuition, data and analytics to inform marketing strategies are better positioned for the future job market
Future of Data Analytics in Marketing
It is important that analytics is valued at all levels of an organisation.
A ‘real time’ business is about being able to make a decision at the ‘real time’ it matters.
To do this effectively, companies need to integrate data with their business processes.
It is important to ensure there is a balance between real-time data and having enough data to be statistically valid.
