Showing posts with label marketing trends. Show all posts
Showing posts with label marketing trends. Show all posts

Tuesday, December 9, 2014

Using Search Engine Behavior in Marketing Campaigns



Companies regularly seek out opportunities to improve their marketing campaigns to encourage higher levels of return from improved purchase rates. A paper by Ye, et. al (2014) discusses how companies use a number of metrics but often fail to incorporate search engine information into their marketing campaigns. By understanding how consumer interest leads to search behavior and eventual purchase companies can better design their marketing campaigns for greater effectiveness. 

Sales do not happen in a vacuum and often rely on pre-existing interest among consumers. Search engines and sites like Google Trends, Adwords, and others track search behavior of consumers. With 80%+ of consumers using the search engine to find information it can be used to help to develop stronger marketing processes that lead to higher sales. 

The search engine becomes a gateway to purchasing behavior based upon the cognitive processes of the consumer and the word choices he or she uses to find information. What is of interest to people will lead to improved sales. You may look at various categories on Google Trends to see general interest categories and their ranking. 

In today’s world, the search engine is an integral part of our lives and can influence how we understand the world around us. Information from products and services found in our environment can be better pinpointed online. Companies can use this search information to better develop stronger marketing programs that lead to higher percentages of conversion. 

Traditional marketing statistics often ignore pre-trending search information that occurs before purchases are made. They ignore these statistics because it can be difficult to understand and incorporate into data metrics. However, it is these general search trends that eventually lead to page visits and purchases. 

The authors bring forward a solid point that understanding search behavior and trends will have an impact of eventual sales as consumer interest converts to purchasing behavior. Since a large section of society uses the Internet on a regular basis it is possible to use some of that trending information to determine which products are going to sell well and which ones are not. The development of marketing programs should factor in popularity on search engines. 

Ye, et. al. (2014). Decomposing the impact of advertising: augmenting sales with online search data. Journal of Marketing Research, 51 (3).

Wednesday, February 12, 2014

Can Better Marketing Data Lead to Stronger Performance?


Data can lead to confusion or clarity. As the market becomes more versatile companies will need betters ways of measuring.  Research by Homburg et. al. (2012) delves into what makes successful marketing data management and what doesn’t. They use a more complex contingency-based model that studies the association between market performance and data through the concepts of breadth, strategy fit, and cause & affect. 

There are many examples of data systems that include dashboards and balanced score cards. The right kind of data can lead to conclusions about cause and effect and this can have great benefits for organizations seeking a path to navigate. Data management is a method of drawing key measurements from the environment and aligning organizational activities for greater market performance. 

The greatest benefits of data appear to be from those who seek to create a differentiation strategy. This means that the firm is selling products that compete within certain demographics. They are showing themselves to be different than others because of X or Y. Market differentiation is a common strategy among companies that desire to set themselves apart in competitive markets.

Data management works well when market complexity and dynamism are higher. It helps to create more clarity that encourages alignment with new market trends. When markets are constantly changing data provides a target that may not be available to other firms. Proper systems help to clarify, develop strategies, and focus energy toward specific targets. 

They found through 201 marketing responses empirical support for performance outcomes depending on the strategy, complexity and dynamisms of the market. Faster changing environments need better information that can guide decision-makers into making stronger strategic choices. The biggest pay offs are for those firms that differentiate themselves from others. When markets are larger and across different continents breadth helps to ensure you are capturing the right data. Secondly, the data must fit within the strategy of the organization and help them focus on what is important. Third, cause and effect information helps firms adjust their processes to create greater impact in the market. 

Comment:  Data for data sake is not beneficial. The type of data collected should be based upon the strategic needs of the organization. This data is then organized in a way that encourages useful conclusions. Since data organized improperly can mislead decisions it is important to regularly revisit the type of data being collected and how it is being organized. 

Homburg, et. al. (2012). Marketing performance measurement systems: Does comprehensiveness really improve performance? Journal of Marketing, 76.