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MARK2038 Data Base Marketing Strategies II. Week 7 Instructor: Santo Ligotti Email: Today’s Agenda. List Management Digital marketing Overview of the Internet Three e-business strategies How to evaluate marketing web sites Housekeeping Discuss Assignment #4

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MARK2038 Data Base Marketing Strategies II

Week 7

Instructor: Santo Ligotti


today s agenda
Today’s Agenda
  • List Management
  • Digital marketing
  • Overview of the Internet
  • Three e-business strategies
  • How to evaluate marketing web sites
  • Housekeeping
    • Discuss Assignment #4
    • Discuss Group Project
  • In today’s lecture you will learn:
    • List Management and the relevancy that list rentals play in enhancing 1:1 Direct Marketing initiatives
    • How to search for lists and determine appropriate targets for either acquisition or retention strategies
    • Digital marketing
    • Overview of the Internet
    • Three e-business strategies
    • How to evaluate marketing web sites
it all starts with the list
It all starts with the list
  • A listis a collection of names and addresses used by direct marketers to target offers.
  • The list determines:
    • WHO will ultimately receive your message
    • The total number of interactions possible for the campaign
    • The total projected revenue from the campaign
list types and sources










List Types and Sources







house lists
House Lists
  • House List: an internal list compiled from internal customer records.
    • Can contain purchase data and purchase patterns
    • A valuable asset
    • House lists can be “bartered” (traded) with strategic partners
house list sources
House List Sources
  • accounting records
  • shipping records
  • records of inquiries
  • warranty cards
  • survey research results
response lists
Response Lists
  • Response List: an external list made up of individuals who have already exhibited a type of interaction desired by the firm.
  • = “Another firm’s house list”
  • Examples:
    • Buyer lists
    • Attendee/Membership/Seminar Lists
    • Subscription lists
    • Donor lists
compiled lists
Compiled Lists
  • Compiled List: an external list that includes records without any previous indication of willingness to respond, but with some defined characteristics.
  • Examples:
    • Consumer compiled list
    • Consumer lifestyle-enhanced list
    • Business compiled list (directories)
example cornerstone canada www cstonecanada com
Example: Cornerstone
  • Overview
    • Cornerstone provides creative prospecting solutions, and solutions for designing and executing database management strategies. They help initiate and sustain lasting relationships with your most profitable customers.
    • Currently, they broker over 1,400 lists containing over 265 million listings
  • History
    • Founded in 1987, Cornerstone has constantly built on past successes to become Canada's largest prospecting and database management resource


Check out their glossary of terms

Check out their industry primers for direct mail, email lists, and merge-purge services

  • If you were purchasing a single response list for an upcoming direct mail campaign, which one would you choose?
    • List A: bought a similar product
    • List B: bought within the category
    • List C: bought something by mail

bought an identical product by mail

bought a similar product by mail

inquired about your product

bought within the category

bought something by mail

any other action by mail

affinity another perspective
Affinity – Another Perspective

Most Effective

  • Active Customers
  • (bought in last x months)
  • Inactive Customers
  • (bought in > x months)
  • Former Customers
  • Select Prospects
  • (high propensity to buy)
  • Other Prospects


Least Effective

list management
List Management
  • The role of list managers
  • Selection criteria
  • Seeding
  • Data hygiene
list management roles
List Management Roles
  • List renter:the list “buyer”
  • List compiler: the company or person who compiles the list
  • List broker (CORNERSTONE):an intermediary who:
    • Maintains list hygiene and suppression
    • Provides recommendations, discounts, etc.
    • Typically paid on a commission basis
selection criteria
When was the list last updated?

How deliverable is the list? (hygiene)

What selections are available, and at what cost?

What is the source of the list?

Is the list owner a member of the CDMA?

What is the rollout potential of the list compared to rollout fees?

Size and turnover

Selection Criteria
selection criteria costs
Selection Criteria - Costs
  • “Premium” lists contain:
    • Recently verified contacts (30-90 days)
    • Proven mail-order buyers
    • Contacts with highly detailed profiles
    • Hard-to-find customer data
  • “Bargain” lists contain:
    • Unconfirmed contacts
    • Inquired instead of purchased
    • Names/addresses only
  • Seeding: a common practice by list compilers/brokers of adding disguised names and addresses to monitor list usage.
data hygiene
Data Hygiene
  • Data hygiene: business processes that maintain the usability of customer data.
  • Reasons:
    • Non-standard/missing address data
    • Incorrect Name
    • Titles, Gender
    • Duplication
    • Inappropriate
    • Gone away, died
demonstration cornerstone
Demonstration - Cornerstone
  • You are the RESP Product manager at CIBC. RESP are Registered Education Savings Plan that encourage individuals to save for their child’s education with an added 20% contribution from the government. You need to encourage product uptake, but your database lacks information on which of your clients has children. You decide that external list rentals might help you augment your existing data base. You contact your list broker and ask for possible solutions
  • What lists are available?
this week
This week
  • Digital marketing
  • Overview of the Internet
  • Three e-business strategies
  • How to evaluate marketing web sites
  • Assignment 4 handout
the internet
The Internet
  • What is the Internet?
  • Who uses the Internet?
  • Database marketing e-business strategies
  • Related tactics
the internet1
The Internet
  • The Internet: a global network consisting of millions of interconnected corporate, government, organizational, and private networks.
    • Computers
    • With data
    • Users who send and receive the data
    • A technology infrastructure to move, create, and view or listen to the content.
other definitions
Other Definitions


  • A private network running internally within a corporation + using Internet standards (HTML, browsers).


  • An intranet that value chain partners can partially access.
other definitions1
Other Definitions


  • The portion of the Internet that supports a graphical interface for hypertext navigation with a browser.
more than one web
More than one Web
  • The Web that most users access from PCs:
    • Low-bandwidth content
    • High-bandwidth content
  • Subsets of the Web with content specially designed for unique devices:
    • Web TV
    • Personal digital assistants (PDA)
    • Cell phones
    • Text-only browsers
diffusion of technology
Diffusion of Technology
  • Or Media Fragmentation, as we talked about last week, means that the internet has had to evolve to be a true 1:1 medium
  • Users demand not only accessibility, but customizability, it’s no longer okay to just have a great looking web site; people want something that makes them feel its their own space
  • So the internet evolution moves from 1 to many, to 1:1
  • A difficult task, but a necessary exercise
internet users
Internet Users*
  • 15.7% of the global population is connected

= 1.02 billion users

Source: Internet World Stats

internet users canada
Internet Users-Canada*
  • 67.9% of the Canaian population is connected

= 21.9 million users

Source: Internet World Stats

internet users demographics
Internet Users: demographics
  • 88% of connected users live in developed nations
internet use in canada and e commerce in the new economy
Statistics Canada publishes the HOUSEHOLD INTERNET USE SURVEY (HIUS) on a regular basis

The last published report was for 2003 data

There was no report published for 2004

There will be a report in 2006 reflecting 2005 statistics at the individual level

Internet Use in Canada and E-commerce in the New Economy
internet use in canada and e commerce in the new economy1
In 2003, based on the last survey

3.2 Million Canadian households actively participated in e-commerce

In total they placed 21.1 million orders, and spend over $3 billion dollars

This represented a 25% increase from 2002

Recent statistics from STATS CANADA show that:

Business to Consumer e-commerce sales were $8.5 billion (an increase of 183.3% from 2003)

Business to Business e-commerce sales were $19.8 billioin

Internet Use in Canada and E-commerce in the New Economy
internet use in canada and e commerce in the new economy2
Internet Use in Canada and E-commerce in the New Economy

E-Commerce sales in Canada, 2004, by selected sectors

e customers their demographics
E-Customers: their demographics
  • Younger
    • Most users are 18-34 years old
    • 35-44 year olds are not far behind
    • Age 55 and older use it the least
  • More Affluent
    • Households with above-average income (80% of Canadians with incomes of $80k or more per year) use it.
e customers how they live
E-Customers: How they live
  • Time-pressured
  • Information-overloaded
  • Mobile, yet connected
  • Customized entertainment
  • Expanded working hours
  • Diminished job stability and loyalty
  • Rise in entrepreneurial interests
e customers how they shop online
E-Customers: How they shop online
  • Self-serve
  • Anywhere, anytime
  • Access to more products
  • Emphasis on immediate fulfillment of needs and expectations
  • Strong desire to have a 1:1 experience, and they demand it
  • E-business is not just regular business
e business major applications
E-Business: Major Applications
  • E-communications
    • Messaging prospects and customers
  • E-commerce
    • Selling, logistics, data sharing online
  • E-care
    • Customer service and fulfillment
businesses find it compelling
Businesses Find it Compelling
  • Many firms have greatly reduced marketing and fulfillment costs via electronic order processing, billing, and e-mail.
  • An “infinitely scalable” transaction channel
barriers to entry
Barriers to Entry
  • Web site development
  • Hardware and software
  • Rapid obsolescence
  • Learning curve

“Companies are learning to let customers come behind the counter and figure things out for themselves.”

- Arthur Middleton Hughes

strategic implications
Strategic Implications
  • Marketers who grasp what Internet technologies can do will be better poised to capitalize on information technology.
strategic implications1
Strategic Implications
  • New communication opportunities exist to reach customers beyond the telephone, television, postal mail, or other media.
  • Internet technologies can be integrated into existing marketing strategies, or used to redefine the way marketing is conducted.
is all e marketing direct marketing
Is ALL e-marketing direct marketing?
  • Direct marketing only occurs when messages are:
    • ____________,

(2) ____________ and

(3)_____________ .




common e business models1
Common E-Business Models
  • Pure play (
  • Enterprise “Click and Mortar” (FutureShop,
  • Online exchange (eBay)
  • Portal (Yahoo!, MSN)
  • Metamediary (
e business models commitment
E-Business Models: Commitment

PURE PLAY: A company devoted to only one line of business

pure play example netflix
Pure Play Example – Netflix
  • In the USA, Netflix rents DVD movies by mail:
    • Customer sets up a “queue” of movies they want to rent.
    • Customer rents 3+ DVDs at once —no return deadlines or late penalties.
    • After viewing a movie, customer slips it into a prepaid return envelope to mail it back to Netflix.
    • A few days later, they receive the next DVD on their list.
    • Netflix builds relationships one at a time through customer-driven personalization and convenience.
typical strategic goals
Typical Strategic Goals
  • Develop e-marketing infrastructure
  • Promote web site as an additional point of contact, not a replacement
  • Migrate customers to the Web
final points
Final Points
  • Next week, no class, intercession week
  • Assignment #4 due June 27th, 2006
  • Work in your group projects
  • I will post a detailed marking scheme early next week