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Electronic Marketing Chapter 12 Capturing Customers’ Profiles and Data Management Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 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 5/24/2017 2004 Joel Reedy and Shauna Schullo