Effective:

Autumn 2001

If adding a Graduate component to an existing course, check here ___

Course Number: *	260-445		Cross Listed Number:
Course Title:	Database Marketing

(limited to 65 characters)
 

15 Character Abbreviation:	Database Mktg
25 Character Abbreviation:	Database Marketing

Sponsor:		Jimmy Peltier		E-mail Address:	Peltierj@uww.edu
Department:		Marketing		College:	Business and Economics
Co-sponsor:				E-mail Address:
Department:				College:
	* You MUST verify course numbers with Registrar's Office prior to submitting (x1211)

Other Programs Affected:

Marketing Major, Marketing Minor (possibly advertising major and minor if they choose to include these courses)

Check if course is to meet any of the following requirements:
X__ None	__ Writing	__ Computer	__ Diversity	__ General Ed and Area

Credit/Contact Hours: (per semester)
Total lab hours:			Total lecture hours:	45
Number of credits:	3		Total contact hours:	45

Check if course is repeatable:		X_ No	_ Yes		(if yes, answer the following questions)
§ No of times in major				No of credits in major
§ No of times in degree				No of credits in degree

Enter the appropriate titles if the course is required in any of the following:
Major Title(s)
Minor Title(s)
Emphasis Title(s)

Course justification

Advancing technologies have changed how marketers interact with prospects and customers. As a consequence, the field has evolved from marketing to the "masses," to developing one-on-one relationships. At the heart of one-on-one marketing is the practice of knowing the precise needs of customers and developing marketing strategies that are tailored to these needs. One of the most critical aspects of this evolving approach to marketing is having a detailed database that contains a multitude of relevant customer-related information on which solid marketing decisions can be made.

The rapid emergence of the electronic information is intensifying the need to produce graduates who understand how database information fits into the development of strategic marketing plans. The Department's Advisory Board has echoed the need for our students to have exposure to database marketing theory and applications. Unfortunately, and as elaborated by the Direct Marketing Association, the prominent professional organization in the field, there is an extreme shortage of graduating students who have had solid exposure to database marketing. In response to this shortage, marketing departments all across the U.S. are changing their course offerings to include database marketing and related material.

The proposed course is designed to prepare students to compete in the new age of marketing and to provide businesses with a stream of qualified applicants.

The Department of Marketing at UWW has been at the forefront of this revolution. Specifically, we were one of the first departments to offer a direct marketing course, and most recently, an Internet marketing course. We would like to continue our efforts of having a relevant curriculum for our students.

It is important to note what this course is not. It is not a course in database construction. This material can be found in other courses. Rather, this course is designed to provide students a detailed understanding of the strategic "use" of a marketing database.
 
 

Relationship to program assessment objectives

As specified in the Department’s annual report, the proposed course meets four important program goals.

Develop a high level of technical ability—Database marketing is at the forefront of technological development. The proposed course exposes students to highly technical material and provides hands-on experience dealing with this technical information.

Increase analytical thinking and problem solving skills of students—Through the course, students will solve a variety of unstructured problems and complete assignments that require analytical skills.

Enhance students’ written and oral communication—Through assignments, projects, and presentations, and group projects, students will have the opportunity to enhance how they communicate with others.

Instill students an appreciation of the significance of ethical issues and their implications with business practice—Database/information acquisition is an area where unethical behavior can occur, especially regarding consumer privacy. The proposed course will focus in detail on legal issues that drive undesirable behaviors.
 
 

Current faculty are prepared to teach this class. In addition, to make room for this course, the Department of Marketing will be dropping Franchising (260-339). The course will be slotted into the normal rotation of courses. As a consequence, no new faculty positions or additional resources are needed. However, recent retirements have provided an opportunity to recruit new faculty who could also teach in this emerging area.
 

Course description:

Advancing technology is enabling marketers to create individualized customer relationships in situations where previously such relationships were not possible. This course is designed to increase students' understanding of how technology, specifically the customer database, is used to design and implement marketing strategies. Special attention will be devoted to studying the types of information needed in a customer database and how this information can be integrated into the marketing decision making process.

Course requisites: 260-311 Principles of Marketing

If dual listed, list graduate level requirements for the following: N/A
 

Course objectives and tentative course syllabus:

REQUIRED READINGS

Hughes, Arthur M. (2000), "Strategic Database Marketing: the Masterplan for Strategy and Managing a Profitable, Customer-Based Marketing Program," 2^nd Edition, McGraw Hill.

Supplemental readings will be placed on reserve in the library or handed out in class.

OBJECTIVES:

Database Marketing is designed to provide the student with the theory and concepts associated with using databases to enhance marketing programs and build strong customer relationships. In addition, the student will be involved in a project that is designed to develop the skills necessary to become a database marketer. Topics will include the paradigm shift to one-on-one marketing, calculation of RFM and life time value of customers, database design issues (though not construction), relationship building strategies, cloning your best customers, reaching out to prospects, and developing direct marketing offers. Emphasis will be placed on using a marketing database. The successful student should be able to assist an organization in using their database to make marketing decisions. Specific objectives include:

Developing an understanding of basic database principles and how to use Access, a very popular database program under the Microsoft Office umbrella. Because this course is more application and implementation based, only the basics of Access can be covered and some students might need to review interactive tutorials.

Developing an understanding of how a database can be used to develop strong buyer-seller relationships. Specific attention will be devoted to investigating how relationships are established and maintained over time.

The ability to manipulate a database is critical for making sound marketing decisions. A main goal of the course will be to expose students to popular database analytical operations, including Recency-Frequency-Monetary (RFM), Lifetime Value (LTV), and model construction. These activities will help students identify who their best customers are, which prospects best match their customers, how often various customers should be contacted, how successful their efforts were, and which strategies and tactics would likely be most successful.

Database marketing is only one aspect of marketing. As such, a key objective is to illustrate how database marketing can be integrated with other key elements of the marketing mix (product, price, place, and promotion), and how this integration will benefit the marketing planning process.

Most importantly, the course is designed to give students real and first-hand experience into how companies utilize databases in the marketing decision process. The assignments and project are designed to provide students an opportunity to show prospective employers that they are prepared to meet the challenges of the new age of marketing.

Projects/Written Assignments

Project: There will a semester long group project in this course. The project is designed to provide the student with the opportunity to gain practical experience in the manipulation and utilization of a marketing database. The project is an integral part of the course. It counts 40% toward your final grade. The project will consist of developing a database (provided by instructor or a company) and using it to provide customer service, clone customers, and develop direct marketing offers. The project will be graded on the merit of the work and the quality of the related paper and presentation. Each group will receive a grade for the written report and the presentation. In addition, each group member's contribution will be evaluated by the other members of the group. Individual project grades will be determined by adjusting the group's project grade by these peer evaluations.

Assignments: There will also be a number of minor assignments done either individually or in groups of two. Students are expected to complete all written assignments on time. These assignments will involve the application of RFM, LTV and other database analyses.

Exam 1 75 pts

Exam 2 75 pts

Exam 3 75 pts

Assignments 75 pts

Project 200 pts

TOTAL POINTS 500 pts
 

Objective #

Part 1: Database Marketing and the Web (Week 1) (see syllabus)

Strategic Database Marketing: An Overview

Part 2: Strategy Development (Weeks 2-12)

How to Build and Maintain Your Marketing Database/Sources of Data

ACCESS Primer--Review of Basics Only 1

Lifetime Value - The Criterion of Strategy 2,3

The Economics of Direct Marketing/ Mathematics of Database Marketing 2,3

Lifetime Value of Customers 2,3

Designing a Successful Customer Strategy 2,3

Building Profits with Recency, Frequency, and Monetary Analysis 2,3

Communicating with Customers

How to Build Dialogue With Your Customers 1,2

Providing Services to Your Customers 1,2

Building Customer Loyalty--Using Customer Profiles in Marketing Strategy

Profiling and Modeling/Lead Generation 3

Clustering: Short Cut Modeling 3

Cloning Your Best Customers and Other Prospecting Strategies

Understanding Your Prospects’ Lifestyles 1,2

Strategy Verification: Testing and Control Groups 3,4

Finding Customers Through the Web 1,2,4

Retailing and Packaged Goods 2,5

Building Retention and Loyalty in Business Customers 2,5

Financial Services 4,5

Why Databases Fail 1,2,3,4,5

Database Types That Succeed 1,2,3,4,5

Choosing Business Partners 2,5

Database Marketing and the Internal Struggle for Power 1,2,3,4,5

The Privacy Issue 1, 2

BIBLIOGRAPHY

Note: Most marketing journals are starting to publish in database marketing. The below list represents those that have been most active to date. * Indicates have in library or on-line access through EBSCO.

Advertising Age*

Direct Marketing Magazine*

European Journal of Marketing*

Frontiers In Direct Marketing

I Marketing News*

Journal of the Academy of Marketing Science*

Journal of Consumer Marketing*

Journal of Database Marketing

Journal of Interactive Marketing

Marketing News*

Target Marketing

Bacon, Mark S. (1997), Do-It-Yourself Direct Marketing Secrets For Small Business (2nd Edition), John Wiley & Sons, Inc.

Burnett, Ed (1997) Database Marketing: The New Profit Frontier, The Morris-Lee Publishing Group.

Hughes, Arthur M. (1998). Strategic Database Marketing, Chicago, IL: Probus Publishing Company.

McCorkell, Graeme (1997), Direct and Database Marketing, Kogan Page Limited.

Schmid , Jack and Alan Weber (1997), Desktop Database Marketing, NTC Publications.

Shaver, Dick (1996), The Next Step in Database Marketing -- Consumer Guided Marketing, John Wiley & Sons.

Shepard, David (1999), The New Direct Marketing: How to Implement a Profit-Driven Database Marketing Strategy, 3rd Edition, NTC Publications.

Stone, Bob (1999), Successful Direct Marketing Methods (7th Edition), NTC Business Books

Adolf, Ruediger, Stacey Grant-Thompson, Wendy Harrington, and Marc Singer (1997). What Leading Banks are Learning About Big Databases in Marketing. McKinsey Quarterly, Issue 3, 187-190.

Berger, Paul D. and Nada I. Nasr (1998). Customer Lifetime Value: Marketing Models and Applications. Journal of Interactive Marketing, 12 (1), 17-30.

Comer, James M., Raj Mehta, and Terrence L. Holmes (1998). Information Technology: Retail Users Versus Nonusers. Journal of Interactive Marketing, 12 (2), 49-62.

Day, George S (1998). Commentary: Organizing for Interactivity. Journal of Interactive Marketing, 12 (1), 47-53.

Donnor, Suzanne and Cathy Dudley (1996). The Search for Profitable Customers. ABA Banking Journal, (August), 19-20.

Durgee, Jeffrey F., Gina C. O'Connor, and Robert W. Veryzer (1996). Observations: Training Values into Product Wants. Journal of Advertising Research 36, (6), 90-99

Englis, Basil G. and Michael R. Solomon (1995). To be or not to be: Lifestyle Imagery, Reference Groups, and the Clustering of America. Journal of Advertising, 24 (1), 13-22.

Gilbert, Faye W. and William E. Warren (1995). Psychographic Constructs and Demographic Segments. Psychology and Marketing, 12 (3) 223-237.

Glazer, Rashi (1999). Editorial: Winning in Smart Markets. Journal of Interactive Marketing, 13 (1), 2-4.

Haeckel, Stephan H. (1998). About the Nature and Future of Interactive Marketing, Journal of Interactive Marketing, 12 (1), 63-71.

Iacobucci, Dawn and Jonathon D. Hibbard (1999), "Encompassing Theory of Business Marketing Relationships (BMRS) and Interpersonal Commercial Relationships (ICRS): An Empirical Example," Journal of Interactive Marketing, 13, 3 (Summer), 13-33.

Kestnbaum, Robert D., Kate T. Kestnbaum, and Pamela W. Ames (1998). Building a Longitudinal Contact Strategy. Journal of Interactive Marketing, 12 (1), 56-62.

Mulhern, Frank (1999). Customer Profitability Analysis: Measurement, Concentration, and Research Directions. Journal of Interactive Marketing, 13 (1), 25-40.

Parsons, Andrew, Michael Zeisser and Robert Waitman (1998). Organizing Today for the Digital Marketing of Tomorrow. Journal of Interactive Marketing, 12 (1), 31-46.

Peltier, James W. and John A. Schibrowsky (1997). The Use of Need-Based Segmentation for Developing Segment-Specific Direct Marketing Strategies. Journal of Direct Marketing, 11 (4), 53-62.

_______, _______, and John Davis (1996). Predicting Payment and Non-Payment of Direct Mail Offers. Journal of Direct Marketing, 10 (2), 56-66.

_______, _______, and John Davis (1997). Understanding the Antecedents to Defaulting on Direct Response Financial Obligations. Journal of Direct Marketing, 11 (1), 45-54

_______, _______, and John Davis (1998). Using Attitudinal and Descriptive Database Information to Understand Buyer-Seller relationships, Journal of Interactive Marketing, 12 (2), 32-45.

_______, _______, and John Davis (1999). Interactive Psychographics: Cross-Selling Opportunities in the Banking Industry, Frontiers in Direct Marketing.

_______, _______, and Don Schultz (2000). Leveraging Customer Data to Develop Longitudinal Contact Strategies. Frontiers in Direct Marketing.

Peppers, Don, Martha Rogers, and Bob Dorf (1999). Is Your Company Ready for One-to-One Marketing? Harvard Business Review, 77 (1) 151-160.

Petrison, Lisa A., Robert C. Blattberg, and Paul Wang (1997). Database Marketing: Past, Present, and Future, Journal of Direct Marketing, 11 (4), 109-125.

Voss, Glenn B. and Zannie Giraud Voss (1997). Implementing a Relationship Marketing Program: A Case Study and Managerial Implications, Journal of Services Marketing, 11 (4), 278-298.

Webster, Frederick E., Jr. (1998). Commentary: Interactivity and Marketing Paradigm Shifts, Journal of Interactive Marketing, 12 (1), 54-55.

Wheatly, Jim (1998). Unleashing the Power of Enhancement. Target Marketing (October), 106-111.