Download Chapter Four

Chapter
Eight
Operational Data
Tools
Chapter Eight
Learning Objectives
• To learn database basics and how databases
benefit Internet marketing
• To understand how data warehouses and
data mining are operational data tools
• To describe privacy-sensitive techniques
used to develop consumer profiles
• To recognize the importance of the marketing
intelligence process and how it is conducted
online
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8–2
Operational Data Tools
and Databases
Operational data tools - computer-based
techniques used to learn about
• Own operations, web site, Internet
activities
• Competitor's online activities
• Environment
• Customers - current, past, potential
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8–3
Operational Data Tools
and Databases (cont’d)
• Privacy advocates are incensed that
• Marketers collect masses of data
• Without consumer knowledge or consent
• Do not give consumers opportunity to edit
own data
• New data tools used surreptitiously
• Collecting broader, more sensitive data
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8–4
Operational Data Tools
and Databases (cont’d)
Should the Internet be …
• Opt-in
– No data collected without
subject’s approval
– Ask before collect
• Opt-out
– Must ask to be excluded from data collection
– Cease collecting only on request
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8–5
Operational Data Tools
and Databases (cont’d)
• Databases - collection of data
structured for computer retrieval
• Data - sets of text, numbers, other
elements input into a database
• Marketing data
– Demographic, transaction, lifestyle, behavioral,
technical
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8–6
Operational Data Tools
and Databases (cont’d)
• Database - electronic file cabinet, process to
retrieve data
• Database construction - involves information
technology and marketing
• Relational databases - data stored in linked
tables
• In-house databases
– Own data
• Compiled databases
– Purchased from other sources
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8–7
Data Warehousing and Mining
• Data warehouse - electronic storage,
extraction and management system
• Data mining - machine learning,
knowledge discovery
– Machine-driven methods
– Looking for hidden patterns, relationships in
databases and warehouses
– Can answer “what if?” marketing questions
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8–8
Collect and Apply
• Privacy-sensitive tools
• Cookies - small data files placed on user’s
computer by web site’s server
• Bugs (beacons) - gif images placed by thirdparty media and research companies
– Allow multi-party tracking
• Server log files
• Web analytics - software and people analyze
collected data
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8–9
Collect and Apply (cont’d)
• eCRM
• Electronic customer relationship management
• Broad strategy for applying data-derived
knowledge to develop more effective
marketing tactics
• Widely promoted; less widely adopted
• Costly, complex, often disappointing
• Dynamic web pages provide personalized
content
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8–10
Marketing Intelligence
• Process - system for collecting and
transforming data
• Content - knowledge for marketing
decision making
• Not espionage!
• Legal, ethical collection of public data
• Focused in-house, externally, both
• Requires timely, relevant, accurate data
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8–11
Figure 8-1:
Marketing
Intelligence
Process
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8–12