In the buying decision process, one of the activities included in ...

[joesmith1212]

In the buying decision process, one of the activities included in the search for products and suppliers is examining various online and print publications.
 
 Indicate whether the statement is true or false

Question 2

Marketing databases are used by businesses for three concrete tasks or specific applications. Identify and define all three. Then select one and demonstrate how it is used by a well-known corporation, manufacturer, retailer, or service provider.

[ktidd]

Answer to Question 1

True

Answer to Question 2

Businesses use marketing databases in at least three specific applicationsthe RFM analysis, the frequency marketing program, and the cross-selling effort.

An RFM analysis provides data on recency, frequency, and monetary elements. This means it reviews the database and tells the marketer how often a customer is buying from the company, how recently that customer has made a purchase, and how much that customer is spending. In this way it calculates the value of the customer, based on past behavior and purchasing patterns.

A frequency marketing program recognizes and reinforces buying behavior in preferred customers. It has three elementsa database to hold its collective memory; a benefit package to attract and retain customers; and a communication strategy to keep an ongoing dialogue going with the firm's best customers.

A cross-selling effort identifies customers who have already purchased one of the firm's products and creates a marketing strategy to encourage them to purchase other products the firm offers.

In an extension of cross-selling, a firm can turn this information around and do just the opposite. It can determine which types of customers have bought a certain product, and then pitch that product to others in the database who share some of the same characteristics or demographics.