Answer to Question 1
A marketing database is a powerful source of information, and, within a giant retail company like this, those who don't have access to it can become envious of those who do. In addition, the effective use of the database can lead to increased funding for the department that is responsible for direct marketing efforts. Often, this additional money comes from other departments' budgets. That always creates conflict. The database can also reallocate promotional budgets. Therefore, the advertising agency for this retailer may work only with conventional media and therefore may lose income to other companies that offer direct marketing expertise.
Answer to Question 2
False