Chapter 1

• Search Engine Marketing Effectiveness metrics include Cost Per Click (CPC), Transaction Conversion Rate (TCR), Return on Ad dollars spent (ROA), and Bounce Rate.
• The 4 Essential Financial Metrics are Profit (Revenue - Cost), Net Present Value (NPV), Internal Rate of Return (IRR), and Payback.
• Churn is the percentage of existing customers who stop purchasing your products or services, often measured in a year.
• Customer Satisfaction (CSAT) is measured by asking, “Would you recommend this product or service to a friend or colleague?” and is a leading indicator of future sales.
• Word-of-Mouth (WOM) is measured by the number of Direct Clicks + Number of Clicks from Recommendations / Number of Direct clicks.
• Take Rate is the percentage of customers accepting a marketing offer.
• Test-drive is a customer pretest of a product or service prior to purchase.
• When deciding whether to make a decision without research or to postpone the decision in order to conduct research, consider the potential payoff, the quality of the marketing decision, and the best use of available funds.
• Marketing Research is the collection and analysis of data from a sample of individuals or organizations relating to their characteristics, behavior, attitudes, opinions or possessions.
• Marketing Research is the application of the Scientific Method in searching for the truth about marketing phenomena.
• Marketing Research can help a company achieve the goal of creating valuable experiences for customers.
• Marketing Research is the systematic and objective process of generating information for aid in making marketing decisions.
• Marketing Research is one of the principal tools for answering questions because it: Links the consumer, customer, and public to the market through information used to identify and define marketing problems; generates, refines, and evaluates marketing actions; monitors marketing performance; and underlines the understanding of marketing as a process.
• The activities of Marketing Research include defining marketing opportunities and problems, generating and evaluating marketing ideas, monitoring performance, and understanding the marketing process.
• Marketing Research includes all forms of marketing and social research such as consumer and industrial surveys, psychological investigations, observations and panel studies.
• The process of Marketing Research includes specifying what information is required, designing the method for collecting information, managing and implementing the collection of data, analyzing the results, and communicating the findings and their implications.
• Marketing Research is defined as: “the systematic and objective identification, collection, analysis, dissemination, and use of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing.
• Marketing Research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company.
• Marketing Research is the application of the scientific method in searching for the truth about marketing phenomena.
• Marketing Research is the function which links consumers and the consumer to the organization through information - Information used to identify and define marketing problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve our understanding of marketing as a process.
• Pricing research by its nature also involves consumer quality perceptions.
• A marketing channel is a network of interdependent institutions that perform the logistics necessary for consumption to occur.
• Distribution research studies aimed at selecting retail sites or warehouse locations that will physically distribute products in support of the distribution channel.
• Promotion research investigates the effectiveness of advertising, premiums, coupons, sampling, discounts, public relations, and other sales promotions.
• Media research helps businesses make decisions about which media alternatives are best suited to convey the intended message.
• Pricing research represents typical marketing research and involves finding the amount of monetary sacrifice that best represents the value customers perceive in a product after considering various market constraints.
• Promotion is the communication function of the firm responsible for informing and persuading buyers.
• Firms spend more time, money, and effort on advertising research.
• Integrated Marketing Communication (IMC) is the concept that all promotional efforts (advertising, public relations, personal selling, event marketing, and so forth) should be coordinated to communicate a consistent image.
• Types of Business Orientation include Product Orientation, Production Orientation, Marketing Orientation, and Stakeholder Orientation.
• Consumer research is essential in Marketing Orientation.
• Marketing Orientation emphasizes customer tastes and desires.
• Production Orientation emphasizes efficiency and low costs.
• Marketing Orientation is the corporate culture existing for firms adopting the marketing concept, emphasizing customer-orientation, long-term profitability over short-term profits, and a cross-functional perspective.
• Product Orientation emphasizes product superiority.
• Marketing-oriented firms focus on how the firm provides value to customers more than on the physical product or production process.
• Product-oriented firms prioritize decision making in a way that emphasizes technical superiority in the product.
• Process research is important in Production Orientation.
• Narrow or even niche markets are served in Product Orientation.
• Production-oriented firms prioritize decision making in a way that emphasizes efficiency and effectiveness of the production processes in making decisions.