Summarize the issues presented in the article

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Summarize the issues presented in the article in one to two paragraphs and answer the following questions including citations as support for your responses: article is just below this and also an attached file I am not sure if you will need this or not.

Real Marketing Listening Online:

Sophisticated Web Research or Just a Little Bit Creepy? Thanks to the burgeoning world of blogs, social networks, and other Internet forums, marketers now have near-real-time access to a flood of online consumer information. It's all there for the digging-praise, criticism, recommendations, actions-revealed in what consumers are saying and doing as they ply the Internet. Forward-looking marketers are now mining valuable customer insights from this rich new vein of unprompted, "bottom-up" information. Whereas traditional marketing research provides more logical consumer responses to structured and intrusive research questions, online listening provides the passion and spontaneity of unsolicited consumer opinions.

Listening online might involve something as simple as scanning customer reviews on the company's brand site or on popular shopping sites such as Amazon.com or BestBuy.com. Such reviews are plentiful, address specific products, and provide unvarnished customer reactions. If customers in the market for a company's brands are reading and reacting to such reviews, so should the company's marketers. At a deeper level, marketers now employ sophisticated Web-analysis tools to listen in on and mine nuggets from the churning mass of consumer comments and conversations in blogs, news articles, online forums, and social networking sites such as Facebook or Twitter.

But beyond monitoring what customers are saying about them online, companies are also watching what customers are doing online. Marketers scrutinize consumer Web-browsing behavior in precise detail and use the resulting insights to personalize shopping experiences. For example, based on her current and past browsing behavior, a customer checking out shoes at a favorite online apparel site might also receive unsolicited "just for you" suggestions for matching accessories tailored to her specific needs and tastes. Her online shopping experience might also depend on other browsing behaviors. For instance, more leisurely browsers-say, those shopping from home and spending lots of time on each screen-might see more videos, features, and product descriptions.

Those whose browsing behavior suggests that they might be in a hurry-say, shopping from work and clicking rapidly from screen to screen-might see simpler pages and more direct paths to checkout. More broadly, information about what consumers do while trolling the vast expanse of the Internet-what searches they make, the sites they visit, what music and programming they consume, how they shop, and what they buy-is pure gold to marketers.

And today's marketers are busy mining that gold. On the Internet today, everybody knows who you are. In fact, legions of Internet companies know your gender, your age, the neighborhood you live in, what you are saying on Facebook and Twitter, that you like pickup trucks, and that you spent, say, three hours and 43 seconds on a Web site for pet lovers on a rainy day in January. All that data streams through myriad computer networks, where it's sorted, cataloged, analyzed, and then used to deliver ads aimed squarely at you, potentially anywhere you travel on the Internet. It's called behavioral targeting-tracking consumers' online behavior and using it to target ads to them.

So, for example, if you place a mobile phone in your Amazon.com shopping cart but don't buy it, you might expect to see some ads for that very type of phone the next time you visit your favorite ESPN site to catch up on the latest sports scores. All this is amazing enough, but the newest wave of Web analytics and targeting takes online eavesdropping even further-from behavioral targeting to social targeting.

Whereas behavioral targeting tracks consumer movements across online sites, social targeting also mines individual online social connections and conversations. Research shows that consumers shop a lot like their friends and are five times more likely to respond to ads from brands friends use. Social targeting links customer data to social interaction data from social networking sites. So, instead of just having a Zappos.com ad for running shoes pop up because you've recently searched for running shoes (behavioral targeting), an ad for a specific pair of running shoes pops up because a friend that you're connected to via Twitter just bought those shoes from Zappos.com last week (social targeting).

Social targeting can even capture the dynamics of real-time conversations. For example, more than just targeting 24- to 26-year-old males who are both sports fans and car enthusiasts, Chevrolet made its ad message more relevant by targeting those consumers while they are talking about football on a mobile Twitter app during the Super Bowl. When they checked the app, targeted consumers saw an ad that prompted them to check out Chevy's Super Bowl video on YouTube.


Marketers watch what consumers say and do online, then use the resulting insights to personalize online shopping experiences. Is it sophisticated Web research or "just a little creepy"? Andresr/Shutterstock.com Online listening. Behavioral targeting. Social targeting. All of these are great for marketers as they work to mine customer insights from the massive amounts of consumer information swirling around the Internet. The biggest question? You've probably already guessed it. As marketers get more adept at trolling blogs, social networks, and other Internet domains, what happens to consumer privacy? Yup, that's the downside.

At what point does sophisticated online research cross the line into consumer stalking? Proponents claim that behavioral and social targeting benefit more than abuse consumers by feeding back ads and products that are more relevant to their interests. But to many consumers and public advocates, following consumers online and stalking them with ads feels more than just a little creepy. Regulators and others are stepping in. The FTC has recommended the creation of a "Do Not Track" system (the Internet equivalent to the "Do Not Call" registry)-which would let people opt out of having their actions monitored online-while some Internet browsers have heeded the concerns by adding "Do Not Track" features. Despite such concerns, however, online listening will continue to grow and to get smarter.

And, with appropriate safeguards, it promises benefits for both companies and customers. Tapping into online conversations and behavior lets companies hear the unprompted voice of customers, providing valuable insights into real consumer feelings, values, and brand perceptions. Companies that can figure out how to tap online consumer conversations in a meaningful way will gain a substantial advantage over competitors who turn a deaf ear. Sources: Adapted excerpts, quotes, and other information from Amit Avner, "How Social Targeting Can Lead to Discovery," Adotas, February 7, 2012, www.adotas.com/2012/02/how-social-targeting-can-lead-to-discovery/; Stephen Baker, "The Web Knows What You Want," BusinessWeek, July 27, 2009, p. 48; Brian Morrissey, "Connect the Thoughts," Adweek, June 29, 2009, pp. 10-11; Paul Sloan, "The Quest for the Perfect Online Ad," Business 2.0, March 2007, p. 88; Elizabeth A. Sullivan, "10 Minutes with Kristin Bush," Marketing News, September 30, 2009, pp. 26-28; and Edward Wyatt and Tanzina Vega, "Conflict over How Open ‘Do Not Track' Talks Will Be," New York Times, March 30, 2012, p. B3.

Research Instruments In collecting primary data, marketing researchers have a choice of two main research instruments: questionnaires and mechanical devices. Questionnaires The questionnaire is by far the most common instrument, whether administered in person, by phone, by e-mail, or online. Questionnaires are very flexible-there are many ways to ask questions. Closed-end questions include all the possible answers, and subjects make choices among them. Examples include multiple-choice questions and scale questions. Open-end questions allow respondents to answer in their own words.

In a survey of airline users, Southwest Airlines might simply ask, "What is your opinion of Southwest Airlines?" Or it might ask people to complete a sentence: "When I choose an airline, the most important consideration is. . . ." These and other kinds of open-end questions often reveal more than closed-end questions because they do not limit respondents' answers. Open-end questions are especially useful in exploratory research, when the researcher is trying to find out what people think but is not measuring how many people think in a certain way. Closed-end questions, on the other hand, provide answers that are easier to interpret and tabulate. Researchers should also use care in the wording and ordering of questions. They should use simple, direct, and unbiased wording. Questions should be arranged in a logical order.

The first question should create interest if possible, and difficult or personal questions should be asked last so that respondents do not become defensive. Mechanical Instruments Although questionnaires are the most common research instrument, researchers also use mechanical instruments to monitor consumer behavior. Nielsen Media Research attaches people meters to television sets, cable boxes, and satellite systems in selected homes to record who watches which programs. Retailers likewise use checkout scanners to record shoppers' purchases.Other mechanical devices measure subjects' physical responses to marketing offerings. Consider this example:19

Time Warner's Medialab uses high-tech observation to capture the changing ways that today's viewers are using and reacting to television and Web content. © Time Warner 2012, photograph by Henrik Olund. Time Warner's new Medialab at its New York headquarters looks more like a chic consumer electronics store than a research lab. But the lab employs a nifty collection of high-tech observation techniques to capture the changing ways that today's viewers are using and reacting to television and Web content. The MediaLab uses biometric measures to analyze every show subjects watch, every site they visit, and every commercial they skip.

Meanwhile, mechanical devices assess viewer engagement via physiological measures of skin temperature, heart rate, and facial and eye movements. Observers behind two-way mirrors or using cameras that peer over each subject's shoulder make real-time assessments of Web browsing behavior. In all, the deep consumer insights gained from MediaLab observations are helping Time Warner prepare for marketing in today's rapidly changing digital media landscape. Still other researchers are applying neuromarketing, measuring brain activity to learn how consumers feel and respond. Marketing scientists using MRI scans and EEG devices have learned that tracking brain electrical activity and blood flow can provide companies with insights into what turns consumers on and off regarding their brands and marketing. "Companies have always aimed for the customer's heart, but the head may make a better target," suggests one neuromarketer.

"Neuromarketing is reaching consumers where the action is: the brain."20 Companies ranging from PepsiCo and Disney to Google and Microsoft now hire neuromarketing research companies such as Sands Research, NeuroFocus, and EmSense to help figure out what people are really thinking. For example, PepsiCo's Frito-Lay worked with NeuroFocus to assess consumer motivations underlying the success of its Cheetos snack brand. After scanning the brains of carefully chosen consumers, NeuroFocus learned that part of what makes Cheetos a junk-food staple is the messy orange cheese dust-that's right, the neon stuff that gloms onto your fingers and then smears on your shirt or the couch cushions.

As it turns out, the icky coating triggers a powerful brain response: a sense of "giddy subversion" that make the messiness more than worth the trouble it causes. Using this finding, Frito-Lay successfully framed an entire advertising campaign around the mess Cheetos makes. For its part, NeuroFocus won an award for outstanding advertising research.21 Although neuromarketing techniques can measure consumer involvement and emotional responses second by second, such brain responses can be difficult to interpret.

Thus, neuromarketing is usually used in combination with other research approaches to gain a more complete picture of what goes on inside consumers' heads. Implementing the Research Plan The researcher next puts the marketing research plan into action. This involves collecting, processing, and analyzing the information. Data collection can be carried out by the company's marketing research staff or outside firms. Researchers should watch closely to make sure that the plan is implemented correctly. They must guard against problems of interacting with respondents, with the quality of participants' responses, and with interviewers who make mistakes or take shortcuts.

Researchers must also process and analyze the collected data to isolate important information and insight. They need to check data for accuracy and completeness and code it for analysis. The researchers then tabulate the results and compute statistical measures. Interpreting and Reporting the Findings The market researcher must now interpret the findings, draw conclusions, and report them to management. The researcher should not try to overwhelm managers with numbers and fancy statistical techniques. Rather, the researcher should present important findings and insights that are useful in the major decisions faced by management. However, interpretation should not be left only to researchers. Although they are often experts in research design and statistics, the marketing manager knows more about the problem and the decisions that must be made.

The best research means little if the manager blindly accepts faulty interpretations from the researcher. Similarly, managers may be biased. They might tend to accept research results that show what they expected and reject those that they did not expect or hope for. In many cases, findings can be interpreted in different ways, and discussions between researchers and managers will help point to the best interpretations. Thus, managers and researchers must work together closely when interpreting research results, and both must share responsibility for the research process and resulting decisions. Objective 4 Explain how companies analyze and use marketing information. Analyzing and Using Marketing Information Information gathered in internal databases and through competitive marketing intelligence and marketing research usually requires additional analysis.

Managers may need help applying the information to gain customer and market insights that will improve their marketing decisions. This help may include advanced statistical analysis to learn more about the relationships within a set of data. Information analysis might also involve the application of analytical models that will help marketers make better decisions. Once the information has been processed and analyzed, it must be made available to the right decision makers at the right time. In the following sections, we look deeper into analyzing and using marketing information. Customer Relationship Management The question of how best to analyze and use individual customer data presents special problems. Most companies are awash in information about their customers. In fact, smart companies capture information at every possible customer touch point. These touch points include customer purchases, sales force contacts, service and support calls, online site visits, satisfaction surveys, credit and payment interactions, market research studies-every contact between a customer and a company.

Unfortunately, this information is usually scattered widely across the organization. It is buried deep in the separate databases and records of different company departments. To overcome such problems, many companies are now turning to customer relationship management (CRM) to manage detailed information about individual customers and carefully manage customer touch points to maximize customer loyalty. Customer relationship management (CRM) Managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty. CRM consists of sophisticated software and analytical tools from companies such as Oracle, Microsoft, Salesforce.com, and SAS that integrate customer information from all sources, analyze it in depth, and apply the results to build stronger customer relationships. CRM integrates everything that a company's sales, service, and marketing teams know about individual customers, providing a 360-degree view of the customer relationship. CRM analysts develop data warehouses and use sophisticated data mining techniques to unearth the riches hidden in customer data.

A data warehouse is a company-wide electronic database of finely detailed customer information that needs to be sifted through for gems. The purpose of a data warehouse is not only to gather information but also to pull it together into a central, accessible location. Then, once the data warehouse brings the data together, the company uses high-powered data mining techniques to sift through the mounds of data and dig out interesting findings about customers. These findings often lead to marketing opportunities.

For example, Macy's digs deeply into customer data and uses the insights gained to personalize its customers' shopping experiences: Seventy percent of Americans visit a Macy's store or its Web site at least once a year. "We don't need more customers-we need the customers we have to spend more time with us," says Macy's chief marketing officer. To that end, Macy's has assembled a huge database of 30 million households, containing reams of data on individual households, including in-store and online purchases, style preferences and personal motivations, and even browsing patterns at Macy's Web sites. As part of its MyMacy's program, the retailer deeply analyzes the data and uses the resulting insights to hyper-personalize each customer's experience. "With a business this size, the data they have on their customers is mind-boggling," says an analyst. "They're [the ultimate in] one-to-one marketing."


Through its MyMacy's program, Macy's digs deeply into its huge customer database and uses the resulting insights to hyper-personalize its customers' shopping experiences. "Happy Birthday, Keri!" Photo courtesy of Gary Armstrong For example, Macy's now sends out up to 500,000 unique versions of a single direct mail catalogue. "My book might look very different from [someone else's]," says the Macy's CMO.

"I'm not such a great homemaker, but I am a cosmetic, shoe, and jewelry person, so what you might see in my book would be all of those categories." Similarly, in the digital space, under its "Intelligent Display" initiative, Macy's can track what customers browse on the company Web site, then have a relevant display ad appear as they are browsing on another site. Future MyMacy's actions will include e-mail, mobile, and Web site customizations. The ultimate goal of the massive database effort, says the CMO, is to "put the customer at the center of all decisions."22 By using CRM to understand customers better, companies can provide higher levels of customer service and develop deeper customer relationships. They can use CRM to pinpoint high-value customers, target them more effectively, cross-sell the company's products, and create offers tailored to specific customer requirements.

For example, Caesars Entertainment, the world's largest casino operator, maintains a vast customer database and uses its CRM system to manage day-to-day relationships with important customers at its 52 casino properties around the world (see Real Marketing 4.2). CRM benefits don't come without costs or risk, either in collecting the original customer data or in maintaining and mining it. The most common CRM mistake is to view CRM as a technology and software solution only. Yet technology alone cannot build profitable customer relationships. Companies can't improve customer relationships by simply installing some new software. Instead, marketers should start with the fundamentals of managing customer relationships and then employ high-tech solutions. They should focus first on the R-it's the relationship that CRM is all about. Distributing and Using Marketing Information Marketing information has no value until it is used to gain customer insights and make better marketing decisions.

Thus, the marketing information system must make the information readily available to managers and others who need it. In some cases, this means providing managers with regular performance reports, intelligence updates, and reports on the results of research studies. But marketing managers may also need nonroutine information for special situations and on-the-spot decisions. For example, a sales manager having trouble with a large customer may want a summary of the account's sales and profitability over the past year. Or a brand manager may want to get a sense of the amount of online buzz surrounding the launch of a recent advertising campaign. These days, therefore, information distribution involves entering information into databases and making it available in a timely, user-friendly way.

Many firms use company intranet and internal CRM systems to facilitate this process. These systems provide ready access to research and intelligence information, customer contact information, reports, shared work documents, and more. For example, the CRM system at phone and online gift retailer 1-800-Flowers gives customer-facing employees real-time access to customer information. When a repeat customer calls, the system immediately pulls up data on previous transactions and other contacts, helping reps make the customer's experience easier and more relevant. For instance, "If a customer usually buys tulips for his wife, we [talk about] our newest and best tulip selections," says the company's vice president of customer knowledge management. "No one else in the business is able to connect customer information with real-time transaction data the way we can."23

1. Marketers watch consumer communication and what they do online. They use this information to personalize online shopping experiences. Is this sophisticated web research or a violation of consumer privacy?

2. Are there any laws in place currently to protect consumers in this area? If not, how can consumers feel protected when surfing various sites or chatting with others online?

3. What can marketers and organizations do in order to ensure that vital consumer information is private and that consumers feel comfortable visiting their websites and participating in data research?

Assignment 2 Parameters:

1. Accurate description and reference of all concepts and theories learned from course material.

2. Practical examples of concepts that lead to continuing interest in the topic.

3. Synthesis of concepts and theories from other course activities.

4. Well-organized, clearly presented work ( free from excessive spelling and grammatical errors)

5. Properly cited sources using APA 6thedition (Introduction, Conclusion, Cover page, Reference page)

6. No less than 2 pages in length

7. Ensure use of the assignment rubric

8. Required use of the following website as a guide to complete your analysis:

Reference no: EM131140635

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