Operational Data Tools Chapter Eight. Copyright © Houghton Mifflin Company. All rights...

Operational Data Tools

Chapter Eight

Copyright © Houghton Mifflin Company. All rights reserved. 8–2

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


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


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



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



• 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



• 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


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


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 third-party media and research companies– Allow multi-party tracking

• Server log files

• Web analytics - software and people analyze collected data


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


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


Figure 8-1:Marketing Intelligence Process

Operational Data Tools Chapter Eight. Copyright © Houghton Mifflin Company. All rights...

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