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Optimal Database Marketing: Strategy, Development, and Data Mining 1st Edition

5.0 out of 5 stars 6 customer reviews
ISBN-13: 978-0761923572
ISBN-10: 0761923578
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Editorial Reviews


A highly readable/useful book... Written for business people... It's strength is its orderly/focused approach to a complicated subject. -- Jane Weber, Secondmoment.org, October 3, 2002

From the Publisher

Chapter Content Summaries: Chapters 1 & 2 – These chapters lay the foundation for the book and explore general marketing database concepts and strategic considerations related to marketing database development.

Chapter 3 – The process of building a marketing database begins with a definition of what the database is expected to achieve in both the short and long term from a marketing perspective. Among other things, this chapter discusses the determination of the data requirements needed to meet the marketing objective including internal, external, demographic, psychographic and census level data.

Chapter 4 – A properly maintained database is key to cost efficient and effective marketing campaigns. In this chapter you will read about the standard database maintenance routines used by major direct marketers for purposes of scrubbing the data.

Chapter 5 – In most organizations, marketing is not responsible for establishing the technical specifications of the database. However, marketing personnel should have a basic understanding of database technology. With such knowledge, they will be in a better position to establish marketing specifications for the database that are reasonable and maximize effectiveness.

Chapters 6 & 7 – Proper sampling is key to ensuring marketing test results received are reliable and actionable. Once conducted you will want to determine what separates responders from non-responders, attritors and non-attritors, etc. In these chapters you will learn how to become intimate with the customer data for purposes of exploiting the information to its fullest predictive potential.

Chapter 8 – Segmentation is an essential component in marketing planning. Segmenting the customer file allows a direct marketer to more effectively and efficiently market products and services to consumers or other businesses. In this chapter you will learn why and how to segment the customer database and the various quantitative techniques employed including RFM analysis, cross-tabulation analysis, factor analysis and cluster analysis.

Chapters 9, 10 & 11 – The use of modeling arms a direct marketer with a powerful tool for identifying the customer most likely to order, pay or attrite. In these chapters, you will learn in an easy to follow format geared for the marketing what a regression model is, how to build a regression model, how to validation the model and how to create and use the gains or lift chart for purposes of making a marketing decision.

Chapter 12 – Key to the establishment of proper strategy for any database marketer is the tracking of customer counts, activity, demographics and value over time. Without such analyses a database marketer will be unable to make the best long-term decisions regarding names sourcing, offers or treatments.

Chapters 13 & 14 – Testing is the foundation upon which a direct marketer builds their business. Unfortunately, many direct marketers lack the necessary skills to properly design and analyze their test plans. In these two chapters you will be taught how to establish marketing tests that will yield reliable and actionable results and how to properly interpret those results. In addition, you will be taught the proper way to design your outside list tests and how to interpret test results with small sample sizes.

Chapters 15 & 16 – Many direct marketers are conducting business on-line as well as off-line in today’s competitive environment. These chapters focus on basic database concepts, both strategy and analysis, as applied to the Internet.

Chapters 17 – Marketers have to consider more than potential profitability when developing, maintaining and utilizing databases. Global, social and legal factors also need to be considered. This chapter examines these issues in addition to future trends in the marketing environment.

Who Will Benefit From this Book: - Marketing managers wishing to gain more understanding of database marketing practices to further their careers. - List managers wanting a more thorough understanding of database marketing practices. - Direct marketing executives requiring a solid overview of database marketing practices applied today. - Academics wishing to provide students with a strong foundation in database marketing applications and strategies. - Quantitative analysts desiring more understanding of the analytical process step by step. - Consultants wanting to better service their clients.

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Product Details

  • Hardcover: 424 pages
  • Publisher: SAGE Publications, Inc; 1 edition (March 26, 2002)
  • Language: English
  • ISBN-10: 0761923578
  • ISBN-13: 978-0761923572
  • Product Dimensions: 7.1 x 1.1 x 10.3 inches
  • Shipping Weight: 2 pounds (View shipping rates and policies)
  • Average Customer Review: 5.0 out of 5 stars  See all reviews (6 customer reviews)
  • Amazon Best Sellers Rank: #295,292 in Books (See Top 100 in Books)

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Top Customer Reviews

By Fredrick S. Ware on November 13, 2002
Format: Hardcover
Having read many books on database marketing, direct marketing, data mining & CRM as a consultant, I appreciate the story line approach heading up each chapter most. Many books fall prone to teaching "at you" rather than guiding the user along "through the experience of doing it".
A second critical factor to look for - once you've gotten through all the introductory books - is finding concrete info on how-to, best practices providing significant content and knowledge. This is the true value-add from the masters: learning is incremental and there must be true takeaways to get the 5 stars.
This said, the authors have made an extremely broad, detailed and well spun story out of a subject matter that can be to say the least, challenging... Moreover, the disciplines of customer analysis, database management & modeling, data mining, statistical analysis, marketing planning are all the focus of reengineering by many of today's major businesses.
Consequently, this book leads nicely and rather naturally into a major subject of the day for many IT & marketeers -- Analytical CRM. As such it is a must read for anyone interested in understanding how A-CRM works in many companies practicing DBM today.
A great next step would be to go from the marketing-IT function(-ing) to the broader enterprise, long-term (relational) infrastructure & practices preached by CRM. Show how the DBM process evolves in to and is transformed by meeting Customer Mgmt strategies. How would DBM work in a enterprise integration, near/real-time, customer interaction CRM initiative?
Finally, as an aside, in reviewing MANY course syllabi across the world in DM/DBM, I've OFTEN found this book as the course text if not mandatory-suggested reading.
I agree -- for all & anyone wanting a good complement to Shepard's seminal work - you can't do any better.
Buy it ! Good reading...
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Format: Hardcover
When I first became involved with database marketing in the mid-1990s, and through my tour of graduate school a few years later, books on the subject fell into two categories: basic and trivial, or advanced and impossible to comprehend. OPTIMAL DATABASE MARKETING is the perfect reference for what is probably the majority audience segment: marketing managers, senior executives, list professionals, data processors, professors, and students who want to understand all the elements of strategic planning and analysis *and* gain practical knowledge to apply professionally or in research endeavors.
In OPTIMAL DATABASE MARKETING, you get a wealth of material on two aspects of the process - for the price of one. Co-author Ron Drozdenko does a great job defining concepts and detailing potential objectives when building files. His coverage of technical specifications and issues is particularly useful.
As for the subsequent chapters: I don't think there has ever been a book written which covers database modeling, and statistical techniques germane to direct marketing, as comprehensively and clearly. Co-author Perry Drake manages to leave no stone unturned and yet convey knowledge in a style that's both understandable and easy to follow. This part of the book is worth the cost alone.
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Format: Hardcover Verified Purchase
I had the priviledge of taking Perry Drake's class when I was getting my Master's Degree in Direct and Interactive Marketing at New York University. The class was taught by Perry Drake himself, who is still teaching at NYU.

If you want to know statistics and how to manage databases and select lists for mailings from those databases, this is THE book. It is not a light read, and you'll need to have a solid understanding of statistics to grasp what's being done here. All that said, this is a really meaty book that will teach you what the pros know. Actually, to be honest, VERY few of the pros even know this stuff. That's based on a decade's worth of experience consulting for small direct marketing companies after I got my degree.

If you have a list, and a database, either you or somebody in your company should know what's in this book. Otherwise you may well be missing out on, oh, 10-20+% in potential sales. How's that for motivation?
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