Transcript Chapter 12

Electronic Marketing
Chapter 12
Capturing Customers’ Profiles and
Data Management
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Keeping the House in Order Critical to DB Development &
Management
• Good marketing programs are built on good information,
and good information is collected, categorized, and saved
for future analysis and usage
– Databases are formed from purchase transactions and
possibly, customer surveys
– Databases can be searched by people or computers
– The marketer should never underestimate the value of data
collection
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Keeping the House in Order Critical to DB Development &
Management
• Businesses began to formulate their database systems in
the late ‘60s and early ‘70s; what was very complex, has
become much more manageable, quicker to retrieve and
sort with much more power in the beginning of this century
• Database structure features:
– Every item has a unique record within the database
– These data are then linked in a hierarchical manner to the top
of the table
– The table is the main entity within a database that holds the
fields and records of the database
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Keeping the House in Order Critical to DB Development &
Management
• The conceptual elements of database design
– Data
– Technology
– Research technique
• Once the database application is developed, the ongoing
communications program to query current customers or
prospects can be initiated
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Measuring the Values of the
Database
• Accountability can be derived by giving specific attention to
the data within any database
• Customized products, new distribution and communications
channels, and multiple pricing options will drive 70% of
enterprises to reengineer and automate their marketing
practices
• Already traditional metrics are proving inadequate in
measuring marketing activities across multiple-product
categories, diverse placement channels, constantly
changing retailer discounting, and consumer sales price
points
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Measuring the Values of the
Database
• New fact-based metrics will let enterprises dynamically
allocate marketing resources to the activities with the best
return on investment (ROI)
• Technology and automation will be the keys in managing
these new marketing processes
• Vast amounts of detailed data that must be collected and
analyzed to make effective decisions in this environment
will task information systems
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Building a Transactional Database
• The best database for e-commerce is the transactional
database that is assembled by ongoing transactions with
customers
• With a transactional database that has an enabled or linked
data capture, a marketer’s company is able to keep track of
customers’ transactions or purchases
• The transactional database is considered superior to public
databases because the customer is already buying from the
marketer’s company
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
The Compiled Database
• The marketer may opt to use a compiled database, a
collection of public records such as drivers’ licenses, birth
records, hunting and fishing licenses, automobile
registrations, or marriage licenses
• As a plan for data management, the design of the tracking
system must be considered as well
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
The Compiled Database
• The marketer should decide how the company’s database is
to be assembled:
– Compiling customers’ profiles by demographic or geographic
information
– Compiling preferences by psychographic profiles
– Creating a proprietary database from the data of the company’s
activities with either consumers or business-to-business
customers
• Return of warranty cards
• E-mail inquiries
• Customer service data input
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Designing a Proprietary Marketing
Database
• The marketer is wise to have input from other departments
that might be integrated into the customer or prospect
databases
• The importance of integrating special data collection figures
in the planning stages will make the system development a
much smoother, “no surprises” production
• These questions, “who, what, when, where, and why” point
to the “how” of implementation, forming the basis for all
database ventures
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Designing a Proprietary Marketing
Database
• At the planning stage, thought should be given to the report
formats that display the data collection
– What are the important figures that drive the marketer’s
department?
– What is the measurement of consequence?
– What are the different expectations of efficiency?
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Software Systems for Traffic
Measurement to Web Sites
• As other components of the marketing process are
measured, so should the performance of a Web site for
attracting viewers and encouraging longer visits to the site
• There are several areas of accountability that bring
objectives and results into better focus:
– Counting unique visits (one person in one visit)
– The number of hyperlinks visited
– Recording the domain extension of the visitor (.com, .edu, .gov,
so forth)
– Keeping track of hourly, daily, and monthly visits
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Software Systems for Traffic
Measurement to Web Sites
• Key Web marketing terms:
– “Hit” is a request for a file
– “Visitors” are the number of unique persons accessing a site
– “Sessions” is a series of uninterrupted mouse clicks from a
visitor
• Like frequent customers, a repeat visitor is probably more
valuable to the site
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Software Systems for Traffic
Measurement to Web Sites
• Ways to estimate visitors:
– Issue “cookies”
– Require session identification
– Registrations
– Statistical software that try to filter the true numbers of page
views
– Clickstream analysis
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
A Quick Overview of Database
Definitions
• A database is a collection of information related to a
particular subject or purpose; data can be:
– Stored
– Manipulated
– Used in many ways
• A database file is simply a container for the data with many
small partitions dividing it into logical parts
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
A Quick Overview of Database
Definitions
• To store data logically, one table for each type of information
the marketer wishes to track should be created
– The first step in the process is to define relationships between
the tables
– The marketer can create queries, forms, and reports to display
information from several tables at once
– A form, report, or query may include information from any
number of tables
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
A Quick Overview of Database
Definitions
• What exactly does “relational” mean and how does it work?
– A relationship works by matching data in key fields with the
same name
– Matching fields are the “primary key” from one table that
provides a unique identifier for each record, and a “foreign
key” in the other table
• Type of data relationships
– One-to-many relationships
– Many-to-many relationships
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Understanding the Database
Elements
• A table is a collection of data about a specific topic, such as
products or supplies
– Tables organize data into columns that are called “fields” and
“rows,” known as records
• The marketer can use forms for a variety of purposes
– Create a switchboard or starting form to open other forms or
reports
– Create a data entry form to enter data into a table
– Create a custom dialog box to accept user input, then carry out
an action based on that input
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Understanding the Database
Elements
• Parameters that will be stored in the form’s design rather
than a table
– Descriptive text
– Graphic elements
– Expressions for calculations
• The items stored in an underlying record source are the
marketing data
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Understanding the Database
Elements
• Forms can be divided into sections to increase the
effectiveness
– Detail section
– Form header
– Page header
– Page footer
– Form footer section
– Sections in a sub-form, or forms within forms
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Understanding the Database
Elements
• Queries are the most mysterious of the database elements
– The marketer can use queries to view, change, and analyze data in
many different ways
– Queries can also be the source of records for forums and reports
– The most common type of query is a “select” query that retrieves data
from one or more tables using criteria the marketer specifies and then
the query is displayed in the order requested
– Queries are created using a wizard or are created from scratch in a
query design view
– A join line tells the database program how data in one table or query
relates to data in another query or table
– Another type of query is a crosstab query
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Understanding the Database
Elements
• A report is an effective way to present the data in a printed format
– The information in a report comes from an underlying table, query,
or SQL (Select Query Language) statement that is the source of
the report’s data
– Reports can be customized in the same manner as forms
– Each section has a specific purpose and prints in a predictable
order on the page in the report
• Report header
• Page header
• Detail section
• Page footer
• Report footer
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Understanding the Database
Elements
• Tips on gathering information over the Internet
– Limit information requests to a form that can be completed in
three to five minutes
– Do not ask for information that requires the user to leave her
workstation
– Limit response options per question
– Use open-ended questions when quantitative response
measurements are not necessary
– Build in questions that separate surfers from customers and
prospects
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo
Database Design
A good design is the foundation for creating a database that
accomplishes the goals effectively, accurately, and efficiently
There are 7 basic steps to designing a good database:
1. Establish the purpose of the database.
2. Decide what tables are needed to accomplish this task.
3. Determine what data will be collected and placed as fields in the
tables.
4. Identify those fields with unique values.
5. Determine how the tables will relate to each other. Review and refine
the design to be sure it accomplishes the goals of step 1.
6. Enter a sampling of data and create any other database objects that
are needed.
7. Design and implement the interfaces using forms, reports, and
queries to make the database productive and easy to use.
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
4/11/2016
2004
Joel Reedy and Shauna Schullo