Basic Design Question Re Effective Relationship

Hi,

Probably a very simple question but I'm afraid my experience at this is
somewhat limited so...

In a database with a many to one relationship, say orders to customers, is
it preferable to have an UID for a customer and store this in the orders
table rather than the customer name, for example.

CUSTOMERS
++++++++++
UID: Name: Address: Postcode: etc
01 Alpha 12 Acacia Ave HN7YHH
02 Beta 23 Acacia Ave HN6YTH
03 Gamma 28 Acacia Ave HN7UYH

ORDERS
Customer Amount date
Alpha 100 20030823
Alpha 250 20030824
Beta 90 20030825
Alpha 800 20030825
Gamma 1000 20030826

Or is it is better to have:

ORDERS
Customer Amount date
01 100 20030823
01 250 20030824
02 90 20030825
01 800 20030825
03 1000 20030826

Assuming that the second option is the best, how far do I go? I can see how
it would beof benifit to do this for orders and customers where there may be
several hundred thousand orders and hundreds of customers, but for example
would I need to do this for a customer contact database with titles - eg
each title having a UID and using this ID in the customer table?

Thanks for taking the time to read this. Any advice is gratefully received.

Kind thanks

Chris S