Implementing a Marketing Database

 

 

PART 1

 

Discussion—Implementing a Marketing Database

Every company gathers information on customer preferences and buying history in order to improve their long-term customer relationships. Maintaining a customer database requires protecting the confidentiality of the information.

Consider the following scenario:

Sara is the marketing manager of a small human resource (HR) consultancy firm. She wants to address improving customer relations and understanding and managing consumer behavior. She would like to implement a process of using a database to assist her company in its marketing efforts. She is also concerned about online privacy versus off-line privacy.

Now, respond to the following:

• How would you address Sara’s concern about the level of privacy in an online versus off-line database?
• What are ways in which she might be able to use the database for better understanding consumer behavior and building customer relationships? Provide at least five such ways.

 

 

Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation.

 

References,

 

PART 2

MUST Follow the following instructions:

• review and comment on the two peers’ responsesbelow.
• when responding to the peers, use an approach that encourages a deeper level of discussion. This can be accomplished by asking probing questions, providing an example from your own experience, and/or supporting a different perspective with additional resources.

 

Response #1

By: (Dre’von Badger)

 

Valuing data privacy is an important aspect that marketers such as Sara should take into consideration. Sara should look at the potential risks that are associated with an online database versus an offline database. Customer data is a critical asset for businesses that needs to be protected in order to keep business going. According to Jim Leone with Direct Marketing Trends, “Failure to protect this information carries risk that has increased by many orders of magnitude with the formation of the Consumer Financial Protection Bureau (CFPB). (Leone, 2013)” The CFPB is a United States government agency that ensures banks, lenders and other companies treat consumers fairly (Consumer Financial Protection Bureau, 2018). Another risk that is associated with an online database is the loss of customers and investors through from a damaged reputation from the result of any incident. Although the goal is to gather information to improve customer relationships, if something goes wrong, a firm can do the exact opposite of their goal.

 

The use of a database can help better understand consumer behavior and build customer relationships in the five following ways:

1. The Average Purchase Size from a Consumer: Business will have the opportunity to see exactly how much products a consumer is buying from them.

1. Retention Costs: This allows a business to see exactly what their consumers need or perhaps are looking for in order to keep them coming back. Customer satisfaction is a great way for a business to retain their consumers and even attract more.
2. Customer Happiness: Customer satisfaction is a great way for a business to retain their consumers and even attract more.
3. Consumer Demographics: This allows a business to see the various segments within their customer base. This normally contains in-depth information such as demographics, sources of influence, motivators, average income and so on (Marketing Donut, n.d.).
4. Value Alignment: A business will have the opportunity to see if their sales are in alignment with their intended target audience.

References

Consumer Financial Protection Bureau. (2018). Home Page. Retrieved from Consumer Financial Protection Bureau: https://www.consumerfinance.gov

Leone, J. (2013). Online vs. Offline Data: Which is More Effective?Retrieved from Direct Marketing Trends: https://www.iwco.com/blog/2013/12/13/online-vs-offline-data/

Marketing Donut. (n.d.). Understand your customers better with big data. Retrieved from Marketing Donut: https://www.marketingdonut.co.uk/direct-marketing/your-mailing-list/understand-your-customers-better-with-big-data

 

 

 

Reference,

Read peers’ answers below.Provide substantive comments by contributing new, relevant information from course readings, Web sites, or other sources

 

 

Response #2

By:(Stephanie Robinson)

 

How would you address Sara’s concern about the level of privacy in an online versus off-line database?

The truth is that most companies if not all collect data from their customers spending habits. The reason why companies collect data from their customers spending habits is to target customer for new products based on their spending habits. Customer spending habits helps companies and marketers alike to cater products for a specific target groups or demographics.

How company’s collect date can range from a purchase at a supermarket or airline tickets purchase habits companies usually sell their customers personal data to a third-party marketing firm who then in turn track a customer’s personal spending habits. Alongside with a customer demographic and there you have it a customer’s profile is created.

Each time that a customer visits a site that’s when the use of cookie technology is used. Cookie technology refers to a chip that is deposited on your computer from a small text file. Cookie technology help companies collect information for them to target certain advertisements for their target customers. It wasn’t until I started this class that I paid more attention to pop up ads on social media.

What are ways in which she might be able to use the database for better understanding consumer behavior and building customer relationships? Provide at least five such ways.

A company’s great success lies in their ability to learn about the consumers’ needs and put them into action as soon as they know everything. Having a sound database is the first step for success but that alone is not enough. Good strategies should be planned to understand what the customer expects few options to understand consumer behavior and building customer relationships are

1. Consumers track can be checked using his database. The marketing department can analyses of what product the consumer is in search of and use software such that giving preference to the consumers search.
2. Few customers will not be tech savvy. They would personally like to be updated about the products they search for. This personal communication in many cases will be a success.
3. One best way of communication a customer personally is through e-mail which gets the desired effects. Many customers will leisurely respond to our queries when asked about their particular needs.
4. Information’s given about one particular product for many times will make the consumers check out about it.
5. Rewards and motivational factors will surely interest the customers.

 

References

 

Encyclopedia. (n.d.). Retrieved from https://www.pcmag.com/encyclopedia/term/40334/cookie

Estevez, M. (2017, November 27). The Importance of Surveys. Retrieved fromhttp://www.foliomag.com/importance-surveys/

Staff, I. (2018, April 11). Consumer Financial Protection Bureau – CFPB. Retrieved fromhttps://www.investopedia.com/terms/c/consumer-financial-protection-bureau-cfpb.asp

 

Reference,