Today we discussed the differences between the business model and the revenue model. For example amazon and The Wall Street Journal The methods used to attract people to their product/services are: amazon- aggregation; WSJ- Content provider. This however, this is not their source of revenue, which is why both models differ. Amazon’s source of revenue is through e-commerce, associates, and advertising. WSJ’s source of revenue are subscriptions.
Explain the customer lifetime value (CLV) concept. Thinking about a specific firm, how could it use the concept of CLV to increase the overall profitability of its customer base?
Brand recognition, Loyalty. It is cheaper to service existing customers than to find new customers..the key is retention, keep your customers by providing superior customer service, adding value to the customer purchase and use experience. retention ismost often the result of adding value tothe customer purchase and experience.
For example, a company sending its customers offers exclusivly for online customers.
How is testing different from marketing research?
Testing gets behind what people do, you have a test, you have a choice, you see what people buy and what they don’t buy.
Market research is more about what people think.testing invloves creating a marketing program, delivering to people that meet their target criteria , the track the actions consumers take as a result
Why and how does testing offer opportunities to Internet marketers?
Its like an experiment that looks at what happens, it shows the real world, when on the other hand marketing research showwhats behind. , it measures marketing related behavior in a realistic context
Explain the related concepts of data warehousing and data mining.
Data warehousing is the central repository that links different databases, it has 4 basic components( mkt mgt, other bus areas, mkt support, and external.
Data mining is The analytic process and specialized analytic tools used to extract meaning from very large data sets