Mining Marketing Information from Web Conversations

Marketing in the era of the World Wide Web is still a growing field. Many great ideas came, worked for a while, declined in value, and disappeared. New technologies are always developing that provide additional opportunity and value in creating stronger methods of developing and marketing new products through understanding web conversation.

Web conversation is something we see everyday but don't really notice. It is everything people put on the web when they discuss products, needs, and other opinions about ideas and concepts. It is a type of user generated content that stays on the web and is good for analysis. A study by Tirunillai and Tellis (2014) show that user generated content is ripe for market analysis.

Consider the idea that you desire to understand what people are thinking about a particular product and its features. Popular products and features often develop forums that are used by interested members to analyze and discuss their ideas and opinions as they relate to that product. By reviewing the material it is possible to gain greater insight and value.

The problem is that it is time consuming to try and follow online customer chatter. Certainly it is better than nothing but it isn't the whole solution. By using analytical tools it is possible gather a wider array of information and use that information to understand products and services better. Scanning the web for a better sample of customer preferences is extremely helpful in decision making.

The process works a little like this.Using proper software and algorithms it is possible to calculate and analyze the types of works being used to describe products. If done over a longer period of time it is also possible to create trends that can be used in determining new product cycles, features, and overall brand exposure. The process is beneficial for those seeking to understand consumer sentiment.

New technology brings new opportunities for companies to develop higher levels of analysis. Brand image is the total collective perception of the product/service in public. In this case, consumer generate content acts as a type of speech while the analytical software seeks to break apart and understand the overall conversational trend. It is like listening to thousands of people at once to gain insight for future product and marketing development.

Tirunillai, S. & Tellis, G. (2014). Mining marketing meaning from online chatter: strategic brand analysis of big data using latent dirichlet allocation. Journal of Marketing Research, 51 (4).

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).

Using Business Intelligence to Make Business Strategic Decisions

Business Intelligence (BI) improves through the use of analytical data streams that help companies overcome market challenges and create internal growth mechanisms. Because the international business environment is complex and large it needs improved analytical tools to be successful. Small, medium, and large businesses are increasingly relying on BI to help them make strategic decisions. A paper by Khan & Quadri (2014) discusses the growing use of BI in everyday business decisions and how to improve on exiting models. 

Proper BI requires the collection of data, analysis of that data, and providing a conclusion on the meaning of that data. BI uses proper analytical methods based in scientific research to achieve its goals. The same principles that apply to any research study would also apply to the business intelligence and strategy formation; in theory anyways. 

BI has been defined as, “The process of collection, treatment, and diffusion of information that has an objective, the reduction of uncertainty in the making of all strategic decisions” (Zeng, et al. 2007). Such information is collected analyzed and then disseminated among those who can use the information to the advantage of the organization. 

BI relies in part on the collecting and analysis of information from the market environment. This can be difficult when there is data scattered all over the place. This is even more possible when even more data makes its way into cyber sphere and creates a type of data collection net that offers higher possibilities for global analysis. 

Data mining can be defined as the search for relationships and patterns that exist among data (Holsheimer & Sibes, 1994). In essence, data is an amebic entity that doesn’t necessary show anything in and of itself. It is up to the user to find patterns and make predictions of this information based upon what they understand and which type of data they can capture. 

The data’s fundamental practicality is the ability to put it to strong use. According to Stackowaik, et al. (2007), BI is the process of taking large sections of data, analyzing it, and then presenting useful report for managers to help them make accurate decisions. BI becomes more of an analytical tool that continually updates based on algorithms for real time decision making.  

BI has the ability to help companies grow and develop beyond their current decision-making processes. Proper strategy formation requires understanding how data can help narrow down the options and choose that which is most likely to influence and improve upon the successes of the business. Data is getting stronger and so will the need to analyze that data in new and more accurate ways. 

Holsheimer, M., & Siebes, A. (1994). Data mining: The search for knowledge in databases. CWI (Centre for Mathematics and Computer Science), Amsterdam, The Netherlands .

Khan, R. & Quadri, S. (2014). Business intelligence: an integrated approach. International Journal of Management & Innovation, 6 (2).

Stackowiak et. al. (2007). Oracle data warehousing and business intelligence solutions. Indianapolis: Wiley Publishing, Inc.

Zeng, et. al. (2007). Techniques, process, and enterprise solutions of business intelligence, 6, 4722.

The Benefits of Niche Markets on Small Business Success

Small and large businesses use different approaches to successfully navigating their markets based upon the resources available to them. Large businesses reach for larger target segments while smaller businesses focus on attracting a smaller group of motivated customers. Niche markets offer an entry position for small business to start building their customer base before expanding into new niches.

Small Business Does Well in Underserved Markets

Small businesses are likely to succeed in markets currently not being served sufficiently by other businesses. They do so through creating brand recognition among those that desires their unique types of products and services.  Highly motivated customers will recognize the brand the next time they consider making a purchase.

For example, it would be extremely difficult for a small business to compete against a large retail outlet by selling disposable pens. However, through selling unique pens, customized pens, embroidered pens, and handmade pens they can offer products that larger stores wouldn’t find lucrative enough to carry in their national chains. 

Customers will remember the specialty store as the easiest and most convenience place to purchase their chose products. The customer weighs and balances all of their options and knows that such gifts are easier to obtain from the customized provider. There is little reason to drive from store to store trying to save a few dollars when a specialty store has what you want. 

Small Business Can Expand Revenue through Complementary Products and Services

Once a small business reaches a sustainable level within their niche product/ service market they can consider adding additional products and services to expand revenue streams. In the example of pens, the business might also consider complementary niches such as unique stationary and paper.  

Selling similar niche products provides opportunities for overlapping benefits (Bruggeman, et. al., 2012). Pens and stationary are categorically connected in consumer minds and if they are looking for high quality pen and paper they have a place to obtain these items. The two types of products regularly attract the same types of people. 

Niche business also allows for successful niche marketing that improves the success rate of the business (Rankin, 2007). Marketing efforts can be focused specifically toward those customers who are most likely to buy a particular product.  Such efforts cut down on waste and low investment returns in business expenses. 

Bruggeman, J. et. al. (2012). Market positioning: the shifting effects of niche overlap. Industrial & Corporate Change, 21 (6). 

Rankin, M. (2007). Niche marketing allows advisers to build habitat for business success. Employee Benefit Adviser, 5 (12).

E-Marketing Effectiveness and Small Business Management

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Small business owners sometimes wonder whether e-marketing can have a significant impact on their sales. Business is about positive return on activities and e-marketing is one tool some small businesses don’t yet understand.  A study by Eid & El-Gohary (2013) discusses how there is still a lack of systematic empirical evidence regarding online marketing but by analyzing budgets, tools, pre-sales activities, and after-sales activities, performance and effectiveness of marketing in 114 small businesses they can get a better perspective of e-marketing activities. 

Small business maintain similar characteristics that puts them within the same broad category. Small business are independently owned, managed by the owners, financially connected to the owners, and most of the important decisions are made by the owners. The use of decision e-marketing is not that familiar among many small business owners and they will need a personal investment of time, effort and resources to make it work. 

When small businesses are successful in their e-marketing practices they can find an increase in profits, market share, brand equity and productivity. Their business moves to a higher level of customer attraction and retention that helps them grow their opportunities both personally and financially.  Marketing costs can be reduced for businesses that successfully find a mix that works for them. 

It was found that the EM budget, pre-sales marketing and after-sales marketing explain 71.4% of e-marketing performance 76.3% of marketing effectiveness. E-Marketing can have an impact on successful sales generation. There is a net positive result of marketing and sales returns in the virtual world. The use of specific skills didn’t seem to be as important as engaging in the overall process of online marketing. Companies that begin move, study, explore and implement online marketing campaigns regularly find their bottom lines improving. 

To people who have run their mom and pop shops for years advertising in their local newspapers, building displays, and attracting customers with sales the transition to online can be difficult. They need not give up what works in traditional approaches to enhance those messages with online components. It wouldn’t be recommended anyway. Marketing is about finding what works and seeing how the different methods of marketing mix together to create effectiveness. 

Eid, R. & El-Gohary, H. (2013). The impact of e-marketing use on small business enterprises’ marketing success. Service Industries Journal, 33 (1).