1. E-MARKETING, 6TH
EDITION
JUDY STRAUSS AND RAYMOND FROST
Chapter 6 – E-Marketing Research

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.

4. From Data to Decision: Purina

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

13. NO SITE IS COMPETE
AND ACCURATE!!!

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