Questions 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 databases?
Answer
Forbes business model
relies heavily on advertising to supplement revenue from paid subscriptions, so
it is constantly looking for ways to helps its advertisers reach Forbes readers
more efficient. Therefore, a customer database will be useful for Forbes because
Forbes did not need to employ third party to analyses their customer data
instead of just using database to know each individual customer activity on
Forbes. By doing so, Forbes can target their campaigns more precisely and
increase their circulation
As for Kodak, Kodak relies
more heavily on actual data in its Oracle customer database which complied from
direct purchases and registration on Kodak’s website and photo sharing site.
From this customer database, Kodak can easily track customer behavior and
improving their strategy on marketing, promoting, distribution and pricing. A
customer database can be so useful as it can consolidated data on all its
marketing activities, target each type of customer precisely, and measure
effect of each channels. By doing so, Kodak can improve their performance and
popularity.
If these companies had not
kept their customer data in database. These companies may need to conduct more
complex work as the status of everything is unknown. Companies do not have
customer information, no wonder what are they seeking and do not know what they
need especially most up-to date info of customer was unidentified. As a result,
companies cannot scale their business well as the management team in the
companies cannot make wise decision competent to customers’ need as there is no
database to track customer behavior. Companies may also lost loyalty as there
is no more customer relation between each other. As companies can concern
customer by sending promotional email or message reminder to get customer
attention all the time. Furthermore, companies cannot forecast companies’
long-term financial value for the business as there is no customer response on
price perception.
Question 2
List and describe two
entities and several of their attributes that might be found in Kodak’s
marketing database
Answer
A customer database is helpful to companies like
Kodak because it lets them see who their customers are, so they can market
specifically to them, and it lets them know what their customers are
purchasing. If these companies did not have customer databases then they would
have to find another way to gather the same information such surverys. The
information that gets housed after a customer purchases something is crucial in
marketing strategies and production strategies. A company like Kodak could
figure out which product is selling a lot of which is not selling and ramp up
production or cut don production. Kodak could also market to specific age groups
or specific regions with the information they gather from purchases.
An entity would be a customer’s name, and the
attributes would be their address, purchase history. An entity could also be an
age group. Attributes could include specific age, where they are from, what
they purchase, what they would like to purchase and how they are attracted to.
The profile of buyers for Kodak c130 multi-function
printer can be differentiated from that of people who purchase Kodak's more
advanced especially office 6150 printer. Armed with that information Kodak is
able to target each type of customer more precisely with its retail packaging,
product descriptions, and advertising placements. Instead of advertising its
entire ink-jet printer in a broad publication, Kodak will target prospective
6150 buyers through a lower-cost combination of print ads in niche magazines,
web banner ads on selected sits, and e-mail lists of small-office or
home-office owners.
Kodak can also measure the actual effect of
promotional offer, customer segmentation and messaging across all of its
channels. Armed with that effect, Kodak can track what kind of device is used
and providing efficient solutions.
Question 3
How did better data management
improve each company’s business performance? Give examples of two decisions
that were improved by mining these customer databases.
Answer
Forbes used SAP Business
Objects software to analyses its own readership data, examining variables of greatest
interest to advertisers to know and understand each individual who interacts
with its brand that help Forbes increase their circulation indirectly. While
Kodak with asking the customer by asking the database concept improve its
company platform in many ways.
Improving decision
making-data warehouse.
A data warehouse is a database with archival,
querying, and data exploration tools (i.e., statistical tools) and is used for
storing historical and current data of potential interest to managers
throughout the organization and from external sources (e.g., competitor sales
or market share). The data originate in many of the operational areas and are
copied into the data warehouse as often as needed. The data in the warehouse
are organized according to company-wide standards so that they can be used for
management analysis and decision making.
Data warehouses support looking at the data of the organization through
many views or directions. The data warehouse makes the data available to anyone
to access as needed, but it cannot be altered.
A data warehouse system also provides a range of ad hoc and standardized
query tools, analytical tools, and graphical reporting facilities. The data warehouse system allows managers to
look at products by customer, by year, by salesperson, essentially different
slices of the data. Normal operational databases do not permit such different
views.
Improving decision on
pricing
Data mining is not particularly new — statisticians
have used similar manual approaches to review data and provide business
projections for many years. Changes in data mining techniques, however, have
enabled organizations to collect, analyze, and access data in new ways. The
first change occurred in the area of basic data collection. Before companies
made the transition from ledgers and other paper-based records to
computer-based systems, managers had to wait for staff to put the pieces
together to know how well the business was performing or how current
performance periods compared with previous periods. As companies started
collecting and saving basic data in computers, they were able to start
answering detailed questions quicker and with more ease. This help the
companies to decide how much pricing for the services or product that are
enough to cover overall expenses with a high profit in long term projection.
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