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Marketing Mastermind Magazine:
Technology Trends: Database Marketing
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Database marketing plays an important role in the modern business world. As market changes accelerate and the cost of technology declines, more industries and companies are adopting database marketing. Database marketing helps to effectively use data about consumers to sell one's products and also maintain continuous relationship with them. Many marketers outsource the collection of consumer data and also carry out data marketing activities. Several service providers have emerged to meet this requirement.

 
 
 

A database is a collection of information that is orga- nized so that it can easily be accessed, managed, and updated. In one view, databases can be classified according to the type of content: bibliographic, full-text, numeric, and images.

Stone and Shaw (1987) have defined database marketing as follows: "Database marketing is an interactive approach to marketing communication, which uses addressable communications media (such as mail, telephone, and the sales force) to target its audience, to stimulate their demand, and to stay close to them by recording and keeping an electronic database memory of customer, prospects and all communication and commercial contacts, to help improve all future contacts."

A relatively more recent definition by Roberts (1997) goes as follows: "Database marketing is the application of statistical analysis and modeling techniques to computerized, individual level data sets. It is used to support the development of cost-effective marketing programs that communicate directly with identified customers and prospects, and to track and evaluate the results of specific promotional efforts. Database marketing implies planned communication with individually targeted customers and prospects over an extended period of time to promote repeat purchases of related goods and services."

 
 
 

Marketing Mastermind Magazine, Database Marketing, Electronic Database, Marketing Communication, Marketing Programs, Customer Relationship Management, Online Registrations, Financial Services, Data Warehouse, Brand Loyalty, Transaction Data, Business Data, Software Packages.