Chapter 5: Asking the Customer by Asking the Database

1) Why would a customer database be so useful for a company such as Forbes or Kodak? What would happen if these companies had not kept their customer data in database?

Answer:

Customer database be so useful for a company such as Forbes or Kodak because to make a better and proper decision on their business level. Customer database also useful for understand their customer behavior and at the same time needs and wants of their customer. Customer database helps them to find out their target customers. Customer database also helps to examining Forbe’s entire reader’s population, using the data it had already accumulated on a regular basis. Kodak has been able to replace its crude customer “personas” with detailed in depth profile of customers groups and buying based on actual data.

If these companies not kept theirs data in database mean they cannot conduct their business activities very well. They might not able to take good decision on their business level. They also unable to fulfill their customers according to their needs and want and at the same time cannot find the accurate target customers of their companies. They also might unable to advertise their products in proper ways.

2) List and describe two entities and several of their attributes that might be found in Kodak’s marketing database.

Answer:

A) Two entities are :

• Allowing customer data to drive marketing decision.

-This entity help Kodak companies successfully transition from making photographic film to becoming a leading provider of imaging technology products and service, including digital photography.

• Make decision on top-down manner

- This made with annual budgets for broadcast, print, direct mail, online, e-mail and other marketing program based on previous year’s spending. Campaign were built around fictional customer “personas” that were more aspirational than real.

 B) Several of their attributes that might be found in Kodak’s marketing database are Kodak now     relies more heavily on actual data in its oracle customer database, which maintains data on 50 million customer compiled from direct purchases and registration on Kodak’s web site and photo sharing site, customer-service interactions from social networks. Kodak supplement these data with demographic and psychographic information purchased from third party database vendors. Instead of combining data from numerous spreadsheets, the company has consolidated data on all of its marketing activities, including customer targets, campaign plan, budgets, list and results.

3)  How did better data management improve each company’s business performance? Give examples of two decisions that were improved by mining this customer database.

Answer:

Data management improve each company’s business performance

• Controlling and securing product-related data
• Improving the ability to quickly find and reuse information
• Sharing product knowledge with other departments

Forbes

• Using SAP Business Objects software to analyze its own readership data, examining variables of greatest interest to its advertisers.
• Understand each individual who interacts with its brand.
• Help Forbes’s advertisers target their campaigns more precisely
• Help Forbes publications increase their circulation.

Kodak

• Allowing customer data to drive marketing decisions
• Measure the actual effect of promotional offers, customer segmentations and messaging across all of its channels.