1. 3-1 Chapter Three

2. 3-2 Secondary Data vs. Primary Data Secondary Data: Data that have been gathered previously. Primary Data: New data gathered to help solve the problem under investigation. Key Terms & Definitions

3. 3-3 Can help to clarify or refine the issue or problem Might provide a solution to a research problem Might provide primary data research alternatives Can alert the researcher to other problems Provides background information enhancing research credibility Usually less expensive and faster to gather Advantages of Secondary Data Key Terms & Definitions

4. 3-4 Lack of Availability Might not be any available data on your topic Lack of Relevance Data might be outdated Inaccuracy Might be biased--intentionally or unintentionally Questionable source Insufficiency Not enough information exists Disadvantages of Secondary Data Key Terms & Definitions

5. 3-5 Assessing Secondary Data Key Terms & Definitions Who gathered the data? What was the purpose of the study? What information was collected? When was the information collected? How was the information collected? Is the information consistent with other information? Who gathered the data? What was the purpose of the study? What information was collected? When was the information collected? How was the information collected? Is the information consistent with other information?

6. 3-6 Internal Database: A collection of related information developed from data within the organization. Database Marketing: Marketing that relies on the creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns to create a targeted marketing mix. Internal Databases Key Terms & Definitions

7. 3-7 Creation of large, up-to-date, computerized file Can include current, past, or potential customers Might be focused on demographic/purchase behaviors Development of customer profile results Should enable one to generate direct marketing mailers /e-mails targeted at specific customers based on their buying behavior Can be used to collect customer information from your website Should be organized to enable you to search the database using queries Should be compatible with database software that will enhance analysis Some Key Features: Internal Databases Continued Key Terms & Definitions

8. 3-8 Neutral Network: A computer program that mimics the processes of the human brain and thus is capable of learning from examples to find patterns in data. Data Mining: The use of statistical and other advanced software to discover non- obvious patterns hidden in a database. Internal Databases Continued Key Terms & Definitions

9. 3-9 Customer Acquisition: In the first stage of a two-stage process, direct marketers apply data mining methods to discover customer attributes that predict their responses to special offers and communications such as catalogues. Attributes are matched in the second stage to match customers with products or services they are most likely to choose Data Mining Key Terms & Definitions

10. 3-10 Customer Retention: In a typical marketing application, data mining identifies those customers who contribute to the bottom line, but are likely to leave and go to a competitor. Retaining vulnerable customers can save a company millions. Data Mining Continued Key Terms & Definitions

11. 3-11 Customer Abandonment: Some customers cost more than they contribute. Companies use data mining to identify those customers and may use it to encourage them to go elsewhere. Data Mining Continued Key Terms & Definitions

12. 3-12 Market Basket Analysis: Identifying associations among product purchases in point-of-sale transactions can help retailers develop targeted marketing not only for their advertising choices, but also for their direct marketing. Data Mining Continued Key Terms & Definitions

13. Potential Uses in Marketing: Customer acquisition Customer retention Customer abandonment Market basket analysis Internal Databases Continued 3-13 Key Terms & Definitions

14. Using online and offline data to understand a consumer’s habits, demographics, and social networks in order to increase the effectiveness of online advertising. Only 4% of Internet users account for 67% of all display ad clicks. Only.1% of people actually click through the average display ad. Behavioral Targeting 3-14 Key Terms & Definitions

15. 3-15 Marketing Research Aggregators Key Terms & Definitions A company that acquires, catalogues, reformats, segments, and resells reports already published by large and small marketing research firms.

16. 3-16 Battle for Privacy Identity Theft and Government Action Key Terms & Definitions Federal Laws: Gramm-Leach-Bliley Act (Financial Services Act) Health Insurance Portability and Accountability Act The Fair Credit Reporting Act (FCRA) The Children’s Online Privacy Protection Act (COPPA) State Laws: California’s Notice of Security Breach Law A Possible Problem: Getting paid to give up your privacy--How much money would it take to get you to give up your privacy?

17. 3-17 Battle for Privacy Tracking Cookies, Behavior & Patterns Key Terms & Definitions While the government develops laws, most do not take effect until after a major breach. Tracking cookies on websites may determine Frequently visited websites Frequent shopping patterns Health Data Financial Information Social Media such as Facebook “likes” provide similar, trackable data that the social media giant can then use to target the advertising they sell.

18. 3-18 Decision Support Systems (DSS) Key Terms & Definitions Key Components: Interactive Flexible Discovery-Oriented Easy to Learn and Use An interactive, personalized information management system, designed to be initiated and controlled by individual decision makers.

19. 3-19 Decision Support Systems (DSS) Continued Key Terms & Definitions Why use: Access to information for multiple departments Isolate problems and trends Aggregate the data to discover new questions A DSS can sort, regroup, total, average, and manipulate data in a variety of ways. Allowing the manager to shift gears as the user changes topics, match information to the problem at hand and more.

20. 3-20 Decision Support Systems (DSS) Continued Key Terms & Definitions Ask a what if question Managers can follow their own train of thoughts while analyzing data whether checking holiday sales or the trend for a new product launch. Managers who use a DSS can conduct sales analyses, forecast sales, evaluate advertising, analyze product lines and keep tabs on marketing trends and their advertisers.

21. 3-21 Key Terms & Definitions Secondary Data Primary Data Advantages of Secondary Data Disadvantages of Secondary Data Secondary Data Limitations Internal Database Database Marketing Battle For Privacy Neural Network Data Mining Marketing Research Aggregator Decision Support System (DSS) Behavioral Targeting Links and button are active when in “Slide Show Mode” Key Terms & Definitions