Direct marketing statistics and mathematics
Offered subject to university approval
Dr Robin Pollard and Dr Tim Fry
6 points
* One 6 day week module plus two x 1.5 days
* Second
semester
* Peninsula (week module) and Caulfield (2x1.5 days)
*
Prerequisite: MKT9702
Objectives On completion of this subject students should be able to demonstrate sufficient knowledge and ability of direct marketing mathematics and statistics to permit the sound interrogation of modern direct marketing databases; interrogate direct marketing databases to determine interrelationships and structures that characterise customer profiles and behaviour; assess the marketing significance of the results from these interrogations, and the ability to apply that understanding in a competitive environment; forecast the profitability of proposed direct marketing activities. By modelling the market response and estimating characteristic parameter values, students will learn to determine the marketing mix that optimises a firm's profit or other quantitative objective.
Synopsis Introductory direct marketing mathematics Cost volume profit analysis, cost and cash flows. Basic catalogue analysis. The arithmetic of continuity or club plan marketing. Elementary financial modeling. Descriptive statistics and inference Data visualisation software. Calculation of interval estimates, requisite sample size. Multivariate dependence methods Multiple linear regression, analysis of variance (ANOVA). Mean time between purchase correlations. MultipleDiscriminant analysis. CHAID analysis. List selection and segmentation Direct marketing applications using multivariate techniques, viz. the RFM approach, segmentation from databases on the basis of fixed attributes, demographic and psychographic variables. Profiling. Gains chart development and analysis. Database analysis Uses of databases in media evaluation and planning. Testing of marketing mix variables, including offers, timing of offers, and creative design. Exploratory data analysis. Artificial neural networks (intelligent database mining). Lifetime valuations.
Assessment Assignments: 50%
* Examination (3 hours): 50%
Prescribed texts
Batra R and Shepard D The new direct marketing: How to implement a profit-driven database marketing strategy David Shepard Associates, 1995
Hair J R, Anderson R E, Tatham R L and Black W C Multivariate data analysis with readings 4th edition, Prentice-Hall, 1993
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