Fluent Essays

Do the homework in the Word Doc. Textbook is attached. ThanksChapter 7 exercise 1. Below are three pairs of customers residing on the ACME Direct database. Who, from each pair, is most likely to order a nature video series from ACME Direct? If you cannot make a selection, please explain. If you feel you need more information to make an informed decision, state what you need. If you need to further manipulate the data to answer the question, do so. a) Customer Date of Entry onto the Database M. Jones 8/17/93 R. Smith 9/22/98 b) Customer Total Number of Video Products Paid Ever S. Samuel 14 D. Hawkins 5 Total # of Total # of c) Customer Products Paid Ever Promotions Ever T. Thomas 13 170 A. McGraw 4 40 2. ACME Direct test mailed a sample of 10,000 customers a promotion for a brand-new book club on 9/15/98. You will be e-mailed a portion of this sample in Excel by PDD. What the file should look like is shown on the next page. All characteristics were frozen point-in-time of the mailing. In addition, the sample has been updated with who responded (ordered) to the book club offer. This sample only contains 26 of the 10,000 names test mailed. The percent of customers joining the club was an astounding 50\%. a) Using Excel determine the correlation coefficient of joining the club (“ordering”) to “total promotions sent.” b) Using Excel determine the correlation coefficient of joining the club (“ordering”) to “total paid orders.” c) Are there any problems you can think of with respect to using “total promotions sent” on its own as a predictor of ordering? d) Create the ratio variable “total paid/total promotions sent” in Excel. e) What is the correlation of “ordering” with the new ratio variable constructed in part d? f) How does the correlation calculated in part e compare to the correlations calculated in parts a and b? Explain. g) Determine the order rate for each cell by tallying the total names falling into each cell and denoting how many of them ordered. For example, only one person in the sample had “Total Products Paid = 0” and “Total Promotions Sent = 0-20” and this one person was not an order. Therefore, the response rate for this cell was 0.00\%. h) If your breakeven is 60\% or better for this new book club which cells in the above cross tab could you profitably promote? Excel File to be e-mailed to you for Question #2, Chapter 7 3. Assume the universe the sample was drawn from for the cross-tabulation analysis done in class (Figure 7.6, Chapter 7) represented 1,256,479 names (Customers with 5+ paid orders in the past 24 months). During the assessment of this cross-tabulation, we noted in class that the product manager identified five cells/groups of names she could profitably promote and meet her break-even criteria of 3.00\%. If the product manager decides to promote these five cells/groups of names from this universe of 1,256,47Sheet: Chapter 7 - Small Sample Customer_Name Entry_Date Total_Paid Total_Prom Order Abraham Brown Collins Davis Erikson Franks Green Hall Irwin Jackson Kaiser Lewis McManus Nottingham Oslo Pratt Quaker Richmond Stevenson Thompson Underwood Vickers Wiley Xavier Young Zorrow This data set represents only a portion of the 10,000 sample that ACME mailed to test a new book club. The legend for each data element is as follows: * Entry_Date = date the customer entered onto the customer file. * Total_Paid = the total number of products each customer has paid for since coming on file. * Total_Prom =A5 the total number of promotions that each customer has been sent by ACME. * Order = the customers response to the test book club offer (1=joined the club, 0=silent)Drozdenko-FM 2/26/02 6:02 PM Page v Copyright © 2002 by Sage Publications, Inc. All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher. For information: Sage Publications, Inc. 2455 Teller Road Thousand Oaks, California 91320 E-mail: [email protected] Sage Publications Ltd. 6 Bonhill Street London EC2A 4PU United Kingdom Sage Publications India Pvt. Ltd. M-32 Market Greater Kailash I New Delhi 110 048 India Printed in the United States of America Library of Congress Cataloging-in-Publication Data Drozdenko, Ronald G. Optimal database maketing: strategy, development, and data mining/ by Ronald G. Drozdenko and Perry D. Drake. p. cm. Includes bibliographical references and index. ISBN 0-7619-2357-8 1. Database marketing. 2. Electronic commerce. I. Drake, Perry D. II. Title. HF5415.126 .D76 2002 658.8’4-dc20 2001005596 This book is printed on acid-free paper. 02 03 04 05 10 9 8 7 6 5 4 3 2 1 Acquisitions Editor: Marquita Flemming Editorial Assistant: MaryAnn Vail Production Editor: Claudia A. Hoffman Indexer: Molly Hall Cover Designer: Michelle Lee Drozdenko-FM 2/26/02 6:02 PM Page vi Contents Preface xv Supplemental Material xvii Acknowledgments xix Foreword xxi 1. Introduction to Database Marketing Concepts 1 What Is a Marketing Database? 3 Trends Leading to the Use of Databases in Marketing 4 Market Segmentation 5 Emphasis on Service and CRM 6 Changes in Media 7 Changes in Distribution Structure and Power 8 Lifestyle and Demographic Trends 9 Accountability for Marketing Actions 10 Integration of Business Functions 11 Technological Advances 11 More Informed Customers 12 Database Marketing Versus Aggregate Marketing 13 Advantages of Database Marketing 15 Disadvantages of Database Marketing 16 Cost Issues 16 Global Markets 17 Competition From Traditional Retailer 17 Negative Perceptions 18 Framework for This Book 18 Chapter Summary 19 Review Questions 19 2. Stategic Database Development in the Marketing Planning Process 21 Computerized Databases 23 Customer Databases Versus Other Marketing Databases 24 The Need for Strategic Planning 25 Developing a Systematic Plan for Using Marketing Databases 26 Drozdenko-FM 2/26/02 6:02 PM Page vii The Marketing Planning Process and Database Implementation 27 Situational Analysis 28 Establishing Marketing Objectives 29 Strategy Development 30 Strategy Development, Targeting, and Product Positioning 32 Marketing Programs 33 Distribution 34 Promotion 34 Price 35 Product 35 Monitor and Control 36 Databases and the Planning Process 36 Chapter Summary 37 Review Questions 38 3. Defining Customer Data Requirements 39 Data Needs Determination 40 Fulfillment, Marketing, and Prospecting Databases 41 Data Residing on the Marketing Database 41 Internal or House Data 41