Database Marketing
Database marketing is a form of direct marketing, in which a database of customers or potential customers can be collected, collated and used to generate and distribute personalised communications. These communications often directly promote the companies products and services.
There are many standard sources of data that can be used for database marketing activities. In the UK there are a number of specialist companies dedicated to providing such data, local authorities are also a very good data source. Companies also acquire prospect data, for database marketing, directly through the use of contests, on-line registrations, donation forms, application forms for free products or contests, product warranty cards, subscription forms and credit card application forms.
Database marketing differs from direct marketing primarily in its greater emphasis on statistics and the analysis of data. A typical marketing database will collate information such as age, sex, demographics and consumer’s behaviours and preferences. From this valuable information estimates about the target market can be put together and an appropriate future marketing strategy can be planned and executed. As a result of this greater emphasis upon analytical strategies, database marketing is a more relevant and subsequently more effective marketing practice.
To the uninformed, database marketing because of its use of mass distribution, may seem like spam. However this is not the case as spamming i.e. the mass scale mailing of random recipients “who have not opted in” is seen to be the marketing equivalent of carpet bombing. Database Marketing on the other hand is far more effective as it involves more planning and analysis. A fine example of Database marketing is a personalised targeted letter or e-mail campaign to customers who have given their permission to be contacted, that is happy to receive marketing communications about offers that may interest them. This form of Database marketing benefits both the customer and the marketer.
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