Essay Title: 

Information for Marketing Decisions

March 24, 2016 | Author: | Posted in technology

Likely benefits of customer database to marketing research

An online bookstore would stock different categories such as biographies , books for studies , children ‘s books , comics and graphic novels , books on computers and Internet , crimes , thrillers and mysteries , books on health , family and lifestyle etc . To an online bookstore , target marketing is the only way to survive . In an intensely competitive environment , an online bookstore has to first of all offer facilities not available with a brick-and-mortar bookstore . To this end information on customers is of vital importance and without this information [banner_entry_middle]

, the market that the online bookstore must target cannot be researched . This is where the customer database comes in . The customer database will have different categories of information on the customer these categories being geographic , demographic , behavioral and psychographic in nature . Data in these four categories can be cross-referenced to provide valuable insights into customer ‘s mindset The management of an online bookstore is always thinking : why should the bookworm , instead of visiting the brick-and-mortar bookstore and actually getting a feel for the books , surf online ? The answer is that the online bookstore has the customer database using which it sends reminders to different target markets about new arrivals

A customer database tracks the different categories of books that a particular customer buys . Therefore with the help of a customer database , customers can be grouped based on categories of books . With the help of a customer database , the online bookstore knows which customers to target for which categories of books . A customer who is a fan of Harry Potter books will be eagerly awaiting the arrival of the next installment . As soon as the installment is available in the market the online bookstore sends him an instant automated alert . This increases customer loyalty . It pays more to indulge the existing customers than to pursue new ones . To this end the customer database has no alternative . Using the customer database , the online bookstore can help a particular customer build his or her book collection with informed suggestions . In fact , using the information on that customer ‘s behavioral and psychographic aspects , the online bookstore can get more and more money out of that customer by encouraging that customer to move in new directions in terms of reading habits

Cross-referencing between categories of books and groups of customers can yield which products are generating more profits . The online bookstore can then focus on developing those categories of books more Market research using the database might indicate that thrillers and children ‘s books generate the greatest level of profits while books for study are not doing that well . The online bookstore in that case , during an economic downturn , focuses more on building its collection of thrillers and children ‘s books . The online bookstore might also want to expand in terms of categories of books . In that case , the business already has a large database of customers upon whom to conduct a survey Using the results of the survey , the online bookstore can decide… [banner_entry_footer]

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