DATABASE MARKETINGDATABASE MARKETING

What is data?What is data?

It is not informationIt is not information

It is not knowledgeIt is not knowledge

Data, by itself, is a fact, or multiple Data, by itself, is a fact, or multiple facts, or a set of values that is facts, or a set of values that is available in a structured manner.available in a structured manner.

It is a kind of raw materialIt is a kind of raw material

WHAT DOES SUCH DATA MEAN?WHAT DOES SUCH DATA MEAN?

Seen out of context, without Seen out of context, without interpretation and application of interpretation and application of human mind it does not mean human mind it does not mean anything.anything.

It is just like a nugget, an objectIt is just like a nugget, an object

IT DOES NOT HAVE VALUE RELEVANCE, IT DOES NOT HAVE VALUE RELEVANCE, OR SIGNIFICANCEOR SIGNIFICANCE

With interpretation, or application of human With interpretation, or application of human intelligence it becomes—possibly– a source intelligence it becomes—possibly– a source of useful information and therefore of useful information and therefore valuable to your business.valuable to your business.

WHEN HUMAN INTELLIGENCE IS APPLIED WHEN HUMAN INTELLIGENCE IS APPLIED TO STUDYING DETAILS, INTERPRETING TO STUDYING DETAILS, INTERPRETING THEM AND IDENTIFYING PATTERNS THAT THEM AND IDENTIFYING PATTERNS THAT MAY BE USEFUL DATA BECOMES VALUABLE MAY BE USEFUL DATA BECOMES VALUABLE INFORMATIONINFORMATION

Therefore, collecting and storing data is Therefore, collecting and storing data is pertinent only if is a part of a strategic pertinent only if is a part of a strategic plan.plan.

DATABASESDATABASES

WHAT IS A DATABASEWHAT IS A DATABASE

Database is a set of collection of such Database is a set of collection of such structured facts stored in physical files and structured facts stored in physical files and managed by database management managed by database management systems. (DBMS)systems. (DBMS)

It is collection of facts which is potentially It is collection of facts which is potentially useful to the organisation when studied in useful to the organisation when studied in detail and interpreted for a purpose.detail and interpreted for a purpose.

The DBMS is a system that handles The DBMS is a system that handles the data so that you can access it in the data so that you can access it in a variety of ways.a variety of ways.

DATABASE MARKETINGDATABASE MARKETINGIT IS A TYPE OF BUSINESS METHOD. IT IS A TYPE OF BUSINESS METHOD. A PROCESS WHEREBY DATABASE IS A PROCESS WHEREBY DATABASE IS TURNED INTO A BUSINESS DECISION TURNED INTO A BUSINESS DECISION

WHY DATABASE MARKETINGWHY DATABASE MARKETING

Why Database Marketing?Why Database Marketing?

Informational ReasonsInformational ReasonsAvailability of abundance dataAvailability of abundance data

Permission to collect themPermission to collect them

Technological ReasonsTechnological ReasonsTechnology to collect and warehouse dataTechnology to collect and warehouse data

Technology and computing power available to Technology and computing power available to analyze themanalyze them

Availability of commercial software, some of Availability of commercial software, some of which are even “user friendly” (e.g. XL miner, which are even “user friendly” (e.g. XL miner, SAS enterprise miner)SAS enterprise miner)

Commercial ReasonCommercial ReasonInterest in generating intelligence to remain Interest in generating intelligence to remain competitive main market sharecompetitive main market share

Drive to be efficientDrive to be efficient

DATABASE MARKETING-DEFITIONDATABASE MARKETING-DEFITION

A More Inclusive Definition of Database A More Inclusive Definition of Database MarketingMarketing

Database marketing is a systematic Database marketing is a systematic approach to the gathering, consolidation, approach to the gathering, consolidation, and processing of marketing databases to and processing of marketing databases to learn more about customers and learn more about customers and competitors, select target markets, competitors, select target markets, compare customers' value to the compare customers' value to the company, provide more specialized company, provide more specialized offerings, as well as make other marketing offerings, as well as make other marketing and strategic decisions. and strategic decisions.

Data BaseData Base

OtherData

Customer Data

TransactionalData

Data Warehousing Data BaseData Analytic Tools/Software

MARKETING

DECISION

MEMORY

DATA QUALITYDATA QUALITY

VALUE OF DATA.VALUE OF DATA.

For data to be useful it must have certain characteristics to For data to be useful it must have certain characteristics to make it “good data”make it “good data”

1 ACCURACY1 ACCURACYA simple incorrect data entry is the most common form of A simple incorrect data entry is the most common form of data errordata error

2 INTEGRITY2 INTEGRITYIs the structure of data and relationship among entities and Is the structure of data and relationship among entities and attributes maintained consistently?attributes maintained consistently?

Eg “Qualifications: Graduate” used across the system or Eg “Qualifications: Graduate” used across the system or “Qualifications=Graduate” “qualifications graduate’ also “Qualifications=Graduate” “qualifications graduate’ also used?used?

COMPLETENESSCOMPLETENESSIs all the data complete?Is all the data complete?

VALIDITYVALIDITYDoes the data value within acceptable range of business?Does the data value within acceptable range of business?

TIMELINESSTIMELINESSIs the data available when required?Is the data available when required?

ACCESSBILITYACCESSBILITYIs the data easily accessible, understandable and usable?Is the data easily accessible, understandable and usable?

It is very essential for the team in charge of data to It is very essential for the team in charge of data to understand the user of dat.understand the user of dat.