Contemporary Database Marketing

by Baier, Martin; Ruf, Kurtis M.; Chakraborty, Goutam

• ISBN13: 9780970451514
• ISBN10: 0970451512
• Edition: CD
• Format: Hardcover
• Copyright: 2001-10-01
• Publisher: Racom Communications

Table of Contents

Preface	17	(2)
Introduction	19	(4)
Section I Fundamentals of Database Marketing	23	(58)
Basics of Direct Marketing	25	(22)
What is Direct Marketing?	26	(1)
Database Marketing: The Next Step	27	(2)
Database Productivity: Customer Loyalty and Retention and the Lifetime Value of a Customer	29	(1)
The Direct Marketing Cycle	30	(1)
Full-Circle Marketing	30	(3)
Full-Circle Marketing
Plan and Identify Objectives
Acquisition
Retention
Research
Test
Validate
The Uses and Users of Database Marketing	33	(2)
More Ways to Maximize Cross-Selling Opportunities
Interactivity and the Convergence of Print, Broadcast, and Electronic Media	35	(2)
Personal Computers
Television/Telephone Hookups
The Smart Card
Privacy and Permission Marketing	37	(4)
Real-Time Database Marketing---with Permission
What about ``Cookies''?
Using Registration Information: A Web Site Directs a Visitor to a Reseller
Turning Madame Tussaud's into a Strategy-Driven Direct Marketer	41	(6)
Basic Principles for Developing, Maintaining, and Using a Database	47	(16)
Information a Database Should Contain	48	(2)
Database Essentials
Kinds of Databases	50	(2)
The Customer Database
The Prospect Database
The Enhancement Database
The Cluster Database
The Analytical Database
Designing a Database	52	(4)
Hierarchical Database
Relational Database
How a Relational Database Is Built
Example of Table Linked in a Relational Database
Using Merge/Purge and Match Codes to Eliminate Duplication
Mailing List Match Code
Merge/Purge Duplication Listing
Economic Value of Merge/Purge
Using Merge/Purge to Find Multibuyers
Other Uses of Merge/Purge
Maintaining a Database	56	(4)
Nixie Removal
Change of Address Update
Transactions Status Update
Database Security
Developing and Using a Customer Database	60	(3)
Data Enhancements	63	(18)
Data Sources and Collection	63	(1)
Data Warehousing	64	(1)
Data Mining	65	(3)
A Visual Example of an OLAP
Balanced Scorecard Dashboard
A Balanced Scorecard Dashboard
Drill Down and Drill Up to Intelligence
Outsource vs. In-House
Enhancing a Database	68	(2)
Identify Current Customers
Enhance the Database with External Data
Overlay Environmental Data
Use the Tools of Prediction
Use Analytical Tools and Techniques
A Guide to an Endless Array of Enhancements	70	(7)
Compiled Lists: The Range of Public Records
Telephone Directory Compilations
City (and/or Criss-Cross) Directories
Voter Registration Files
Real Estate Records
Rosters
Automobile and Driver's License Registrations
Lifestyle Compilations
Cooperative Database
Credit Reporting Databases
Respondents to Direct Offers
Compiling a Customer Profile	77	(2)
Using Customer Profiles to Find New Customers
The Customer Database and the 80/20 Principle
Interactive Workshop 3-1: Using a Balanced Scorecard Dashboard	79	(2)
Section II The Essential Tools of Information Gathering and Analysis	81	(68)
Information Gathering: Sources and Uses of Data	83	(14)
Surveys and Experiments	84	(1)
Uses of Research: Identifying Problems and Objectives	85	(1)
Exploratory Research
Descriptive Research
Causal Research
Sources of Data	86	(4)
Secondary
Primary
Some Sources of Secondary Data
Primary Data Collection Methods
Experimentation (Testing) of Copy Approach in Fund Raising	90	(1)
A Primer on Survey Design	91	(6)
Example of Primary Data Collection Survey
Using Basic Statistical Concepts	97	(16)
Basic Working Concepts: Population and Sample	98	(1)
Descriptive Statistics	98	(5)
Measures of Central Tendency
Using Central Tendency Measures
Measures of Variability
Frequency Distribution
Sample Frequency Distribution
Normal Distribution
Sample Normal Distribution
Inferential Statistics	103	(7)
The Law of Large Numbers
Confidence Intervals
Hypothesis Testing, Statistical Significance, and P-Value
More on Hypothesis Testing
Two Types of Errors in Hypothesis Testing
Interactive Workshop 5-1 Using Excel for Confidence Intervals and Hypothesis Testing	110	(3)
Using Excel for Confidence Intervals and Hypothesis Testing
Summary of Statistical Terms
Data Analysis Tools and Techniques	113	(36)
Bivariate Analysis	114	(12)
Cross-Tab and Chi-Square Analysis
Sample Cross-Tab Relating Credit Card Balance to Gender
Sample Chi-Square Test of Relationship of Credit Card Balance to Gender
Independent Sample T-Test
Group Statistics Example Relating Amount Charged to Gender
Example of Independent Sample T-Test of the Relationship of Amount Charged to Gender
Group Statistics Example Relating Response to Lists Correlation
Example of Independent Samples T-Test Relating Response to List
Correlation Analysis to Show the Relationship Between the Age of a Credit Card Use and the Amount Charges
Scatter Diagram Visualizing Non-Linear Correlation Simple Regression
Output of a Simple Regression Analysis
Multivariate Analysis	126	(13)
Multiple Regression
Output of a Multiple Regression
Logistic Regression
Output of a Logistic Regression Analysis Aid/CHAID Analysis
Example of a CHAID Analysis
CHAID Classification Table
Principal Components Analysis
Cluster Analysis	139	(2)
Interactive Workshop 6-1 Using Excel for Cross-Tab Analysis	141	(1)
Using Excel for Cross-Tab Analysis
Interactive Workshop 6-2 Excel for Independent Sample T-Test for Means	142	(1)
Using Excel for Independent Sample T-Test for Means
Interactive Workshop 6-3 Using Excel for Independent Sample T-Test for Response Rate	143	(2)
Using Excel for Independent Sample T-Test for Response Rate
Interactive Workshop 6-4 Using Excel for Correlation Analysis	145	(1)
Using Excel for Correlation Analysis
Interactive Workshop 6-5 Using Excel for Simple Regression	146	(1)
Use of Excel for Simple Regression Analysis
Interactive Workshop 6-6 Using Excel for Multiple Regression Analysis	147	(2)
Using Excel for Multiple Regression Analysis
Section III Database Marketing Strategies and Program Applications	149	(116)
The Lifetime Value of a Customer	151	(20)
Rate of Response: What Should It Be? How Is It Measured?	152	(1)
Determination of Break-Even And the Lifetime Value of a Customer	153	(2)
Break-Even Determination with and without Promotion
Interactive Workshop 7-1: Establishing Break-Even Point for a Single Sale	155	(2)
Direct Mail Marketing Profit Worksheet
Interactive Workshop 7-2: The Continuity of Value of a Customer Over Future Time	157	(3)
LTV, Continuity Value of a Customer over Future Time
Interactive Workshop 7-3: Enhanced LTV: The Lifetime Value of a Customer with Cross-Selling	160	(4)
Enhanced LTV Calculated in a Product/Source Mix
Planning, Forecasting, Budgeting, and Evaluating	164
Interactive Workshop 7-4: The Recency/Frequency/Monetary (R/F/M) Formula	163	(5)
Evaluation of Customer Database Records by Recency, Frequency, and Monetary Values of Transactions (R/F/M)
Interactive Workshop 7-5: Forecast Model That Views Customers as Investments	168	(3)
A Build-up Forecast/Budget with LTV Enhancement
Exercises in Determining Lifetime Value
Consumer Market Segmentation	171	(12)
The Nature of Market Segmentation and Penetration	171	(1)
How to Identify Consumer Market Segments	172	(4)
Geographic Segmentation
An Array of Characteristics Describing Consumers within Market Segments
ZIP Code Areas as market Segments
Demographic Segmentation
Psychographic Segmentation
Segmentation Based on Action Taken
Product Differentiation and Positioning	176	(1)
Identifying and Reaching a Database Market Segment	177	(6)
Mountain & Valley Resort Resident Property Owners' Data
Mountain & Valley Non-Resident Property Owners' Data
Business-to-Business Market Segmentation	183	(26)
How to Identify Business-to-Business Market Segments
Similarities between Consumer and Business-to-Business Markets
Standard Industrial Classification (SIC) System
North American Industrial Classification System (NAICS)
The Census Bureau's TIGER System
Other Business-to-Business Market Segments
Extended Data---New Business Enhancement Variables
Input-Output Matrices: Business Ecosystems and Lifestyles	189	(1)
Impact Analysis
Econometric Footprints	190	(2)
Available Labor Metric Footprint Map
Cluster Analysis: Targeting Business Customers	192	(2)
Understanding the Consumer Component
Unleashing the Power of Database Marketing: Location Analysis	194	(3)
Collecting the Data
Market Analysis
Distance Decay Graph
Interactive Workshop 9-1: Business-to-Business Market Segmentation	197	(10)
Top-Performing Business Clusters
Top-Performing Standard Industrial Classifications
Market penetration by Industrial Classifications
Market Penetration by Employee Size
Market Penetration by Annual Sales Volume
Market Penetration by Length-of-Time a Customer
Market Penetration by Census Geographic Area
Business Cluster Penetration Analysis of Customers
Distribution of Company X Customer Revenue within All Businesses
Lift in Market Penetration Resulting From the Model
(p. 1) Business Cluster Penetration Analysis
(p. 2) Business Cluster Penetration Analysis
(p. 3) Business Cluster Penetration Analysis
Detailed Composition of the Top Three Penetrated Business Clusters
Business Customer Profile Examples with Characteristics Indexed to U.S. Average
Interactive Workshop 9-2: Building a Business-to-Business Customer Profile	207	(2)
Structuring and Evaluating an Experiment	209	(26)
Experimental Designs	211	(3)
Experimental Designs for Structuring Tests
Designing a Random Sample	214	(2)
Definition of Terms
How to Determine the Size of the Sample	216	(1)
Interactive Workshop 10-1: Setting up an Experiment	217	(3)
State the Hypothesis
Develop A Priori Assumptions and Compute Sample Size
A Priori Assumptions and Sample Size Determination Structure and Perform the Test
Develop A Posteriori Analysis and Test Validity
Interactive Workshop 10-2: Calculating Samples Size And Limit of Error	220	(5)
Sample Sizes for Response Rates Between 0.1% and 4.0%. Confidence Level of 95%
Samples Sizes for Response Rates Between 0.1% and 4.0%. Confidence Level of 99%
Interactive Workshop 10-3: Measuring Difference	225	(2)
Response Rates from Test and Control Groups
Independent Sample T-Test Measurement of Significance of Difference Between Test and Control Responses
Interactive Workshop 10-4: Factorial Designs	227	(3)
ANOVA Test of 2x2 Factorial Experiment
Interactive Workshop 10-5 Use of Excel for Independent T-Test for Testing Response Rate between Test and Control Groups	230	(1)
Use of Excel for Independent Sample T-Test for Testing between Test and Control Groups
Interactive Workshop 10-6: Use of Excel for Analysis of Variance	231	(2)
Use of Excel for Analysis of Variance
Exercises in Structuring and Conducting an Experiment	233	(2)
Decision Making	235	(12)
The Decision-Making Process	235	(3)
An Example: The Case of the Entrepreneurial Raincoat Vendor
Simplified Example of Decision-Making: The Entrepreneurial Raincoat Vendor
Predictive Modeling	238	(1)
Response Rates Illustrative of Differences in Age and Marital Status Within a Broad-Based Compiled Mailing List
Using Multivariate Analysis to Make Decisions	239	(8)
Listing of 27 Characteristics and 103 Variables Describing 35,000 ZIP Code Areas
Lifestyle Factors with Associated Variables
Stepwise Multivariate Regression Analysis
Rank Ordering of ZIP Code Area Clusters According to Response Rate Predicted by Regression Analysis
Using Database Information to Create More Effective Promotions	247	(18)
Why People Buy	248	(3)
Intra-Personal Influences: Physiological and Psychological Needs and Motivations
Interpersonal Influences: he Impact of Environment on Behavior
The Nature of Demand	251	(6)
The Nature of Demand
Offers and Benefits to Customers
Persuasion Copy Example
Benefit Copy Example
Translating Features into Benefits
The Nature of Promotion	257	(3)
Direct Response Advertising: Message and Media
Interactive Workshop 12 Developing Targeted Promotions	260	(5)
Section IV Cases	265	(50)
The Mountain & Valley Resort (MVR) Ski Database	267	(24)
The MVR Ski Database	268	(3)
MVR Ski Database Availability
MVR Ski Database Elements
Proposed MVR Ski Database Analysis
Educational Value
Market Segmentation and Customer Penetration of the MVR Ski Database	271	(10)
Characteristics of Ski Customer Households
Ski Customer Rental Transaction Data
Ski Rental Customer Household Data (1)
Ski Rental Customer Household Data (2)
Household Cluster Penetration Analysis of Ski Customers
MVR Ski Household Cluster Penetration Chart
MVR Ski Household Cluster Household Penetration Quintiles
Correlation of Cluster Penetration with Demographics and Lifestyles	281	(8)
Correlation of Ski Household Cluster Penetration with 128 Demographic Variables (top 49 Shown)
Regression Analysis of 128 Demographic Variables vs. Penetration (partial)
Correlation of Ski Household Cluster Penetration with 1190 Lifestyle Variables (top 49 Shown)
Regression Analysis of Lifestyle Variables
Media Analysis
Media Analysis (partial)
Frequency Distribution by State
Interactive Workshop 13-1 Demonstration of Utilization of the MVR Ski Database	289	(2)
The Mountain and Valley Resort (MVR) Guest Database	291	(24)
Origin of MVR Guests by ZIP Code
Market Segmentation and Customer Penetration of MVR Guest Database
Household Cluster Penetration Analysis of Guest Households
Mountain & Valley Guest Transaction Data
Mountain & Valley Guest Household Data (1)
Mountain & Valley Guest Household Data (2)
Distribution of MVR Resort Guests within All Households
MVR Resort Guests Household Cluster Penetration Analysis
MVR Resort Guests Household Cluster Penetration Analysis
MVR Resort Guests Household Cluster Penetration Analysis
Correlations of Cluster Penetration with Demographics and Lifestyles	302	(9)
(A,B,C) Regression/Correlation Analysis of Market Penetration vs. 128 Demographic Variables
(A,B,C) Regression/Correlation Analysis of Market Penetration vs. 100 Lifestyle Variables
Media Analysis: Categories and Lifestyle Preferences of Customers
MVR Media Analysis
Interactive Workshop 14-1 Calculating Customer Penetration and Building a Profile of MVR Guests	311	(2)
Interactive Workshop 14-2 Calculating the Lifetime Value of an MVR Guest	313	(2)
Calculation of the Lifetime Value of a Newly Acquired MVR Resort Customer
MVR Resort Guest Customer Continuity
Suggested Readings	315	(2)
Index	317