Data Mining and Market Intelligence for Optimal Marketing Returns

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The authors present a practical and highly informative perspective on the elements that are crucial to the success of a marketing campaign. Unlike books that are either too theoretical to be of practical use to practitioners, or too soft to serve as solid and measurable implementation guidelines, this book focuses on the integration of established quantitative techniques into real life case studies that are immediately relevant to marketing practitioners.
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Editorial Reviews

From The Critics

"This book is a must read. It shows you how you can transform data into winning marketing strategies. The trend towards marketing science is certain and this book provides a systematic framework for firms to bring science into marketing decisions."
Teck H. Ho, Professor of Marketing, Haas School of Business, University of California, Berkeley

"Susan Chiu and Domingo Tavella present a practical and highly informative perspective on the elements that are crucial to the success of a marketing campaign. Unlike books that are either too theoretical to be of practical use to practitioners, or too soft to serve as solid and measurable implementation guidelines, this book focuses on the integration of established quantitative techniques into real life case studies that are immediately relevant to marketing practitioners."
Mike Milligan, Vice President, Marketing Communications, The Xerox Corporation

"This book is an excellent no-frills one stop shop for proven approaches to quantitative marketing and should be a valuable reference to practitioners who subscribe to the notion that data-driven decisions are critical to mounting successful marketing campaigns in today's crowded marketplace. The authors' emphasis on practical application of analytics and detailed discussions of the relevant business issues through real-world business examples make this book a useful and immediately applicable resource for tackling today's quantitative marketing challenges."
Albert Thong, Director, Business Marketing Operations,
Cisco Systems

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Product Details

  • ISBN-13: 9780750682343
  • Publisher: Taylor & Francis
  • Publication date: 5/22/2008
  • Pages: 294
  • Product dimensions: 6.20 (w) x 9.10 (h) x 0.90 (d)

Meet the Author

Director of Business Intelligence Center at Ingram Micro, Inc., where she is responsible for advanced analytics and marketing research consulting. Susan Chiu has over 15 years of quantitative marketing research experience and has held positions in analytics, data mining, and business intelligence with Cisco Systems, Wells Fargo, Providian Bancorp, and Safeway Corporation. Susan Chiu has a Masters degree in Statistics from Stanford University.

Domingo Tavella is Adjunct Professor at Berkeley s Haas School of Business, where he teaches quantitative finance at the Masters in Financial Engineering program. He is also president of Octanti Associates, a boutique consulting firm in quantitative techniques for financial risk modelling. Domingo Tavella has extensive expertise in data analysis and modelling techniques applied to a large variety of situations, ranging from business issues to complex engineering problems. Prior to his involvement with UC Berkeley and the finance world, Domingo Tavella was a senior scientist at NASA Ames Research Center, where he pioneered the application of distributed supercomputing in solving aeronautical engineering problems. He has written two successful books on quantitative modelling applied to finance (Wiley and Sons). Domingo holds a Ph.D. in Aeronautical Engineering from Stanford University and an MBA from UC Berkeley.

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Table of Contents

Chapter 1: Introduction to Strategic Importance of Metrics, Marketing Research and Data Mining in Today's Marketing World
• The Role of Metrics
• The Role of Research
• The Role of Data Mining
• An Effective Eight-Step Process for Incorporating Metrics, Research and Data Mining into Marketing Planning and Execution
- Step One: Identifying Key Stakeholders and their Business Objectives
- Step Two: Selecting Appropriate Metrics tp Measure Marketing Success
- Step Three: Assessing the Market Opportunity
- Step Four: Conducting Competitive Analysis
- Step Five: Deriving Optimal Marketing Spending and Media Mix
- Step Six: Leveraging Data Mining for Optimization and Getting Early Buy-In and Feedback from Key Stakeholders
- Step Seven: Tracking and Comparison of Metric Goals and Results
- Step Eight: Incorporating the Learninng into the Next Round of Market Planning
• Integration of Market Intelligence and Databases
• Cultivating Adoption of Metrics, Research and Data Mining in the Corporate Structure

Chapter 2 Market Spending Models and Optimization
• Marketing Spending Model
- Static Models
- Dynamic Models
• Marketing Spending Models and Corporate Finance
- A Framework for Corporate Performance Marketing Effort Integration

Chapter 3: Metrics Overview
• Common Metrics for Measuring Returns and Investments
• Developing a Formula for Return on Investment
• Common ROI Tracking Challenges
• Process for Identifying Appropriate Metrics
• Differentiating Return Metrics from Operational Metrics

Chapter 4: Multi-channel Campaign Performance Reporting and Optimization
• Multi-channel Campaign Performance Reporting
• Multi-channel Campaign Performance Optimization
- Uncovering Revenue-Driving Factors

Chapter 5: Understanding the Market through Market Research
• Market Opportunities
• Basis for Market Segmentation
• Target-Audience Segmentation
• Understanding Route to Market and Competitive Landscape by Market Segment
• Overview of Marketing Research
• Research Report and Results Presentation

Chapter 6: Data and Basic Statistics
• Data Types
• Overview of Statistical Concepts
- Population, Sample and the Central Limit Theorem
- Random Variables
- Probability, Probability Mass, Probability Density, Probability Distribution and Expectation
- Mean, Median, Mode and Range
- Variance and Standard Deviation
- Percentile, Skewness and Kurtosis
- Probability Density Functions
- Independent and Dependent Variables
- Covariance and Correlation Coefficient
- Tests of Significance
- Experimental Design

Chapter 7: Introduction to Data Mining
• Data Mining Overview
• An Effective Step by Step Data Mining Thought Process
- Step One: Identification of Business Objectives and Goals
- Step Two: Determination of the key Focus Business Areas and Metrics
- Step Three: Translation of Business Issues into Technical Problems
- Step Four: Selection of Appropriate Data Mining Techniques and Software Tools
- Step Five: Identification of Data Sources
- Step Six: Conduction of Analysis
- Step Seven: Translation of Analytical Results into Actionable Business Recommendations
• Overview of Data Mining Techniques
The following data mining techniques are discussed in this chapter.
- Basic Data Exploration
- Linear Regression Analysis
- Cluster Analysis
- Principal Component Analysis
- Factor Analysis
- Discriminant Analysis
- Correspondence Analysis
- Analysis of Variance
- Canonical Correlation Analysis
- Multi-Dimensional Scaling Analysis
- Time Series Analysis
- Conjoint Analysis
- Logistic Regression
- Association Analysis
- Collaborative Filtering

Chapter 8: Audience Segmentation
• Case Study #1: Behavior and Demographics Segmentation
• Case Study #2: Value Segmentation
• Case Study #3: Response Behavior Segmentation
• Case Study #4: Customer Satisfaction Segmentation

Chapter 9: Data Mining for Customer Acquisition, Retention and Growth:
• Case Study #1 Direct Mail Targeting for Customer Acquisition
• Case Study #2 Attrition Modeling for Customer Retention
• Case Study #3 Customer Growth Model

Chapter 10: Data Mining for Cross-Selling and Bundled Marketing:
• Case Study #1: E-Commerce Cross-Sell
• Case Study #2 Online Advertising Promotions

Chapter 11: Web Analytics:
• Web Analytics Overview
• Web Analytic Reporting Overview
- Brand or Product Awareness Generation
- Web Site Content Management
- Lead Generation
- E-Commerce Direct Sales
- Customer Suuport and Service
- Web Syndicated Research

Chapter 12: Search Marketing Analytics
• Search Engine Optimization Overview
- Site Analysis
- SEO Metrics
• Search Engine Marketing Overview
- SEM Resources
- SEM Metrics
• Onsite Search Overview
- Visitor Segmentation and Visit Scenario Analysis
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