TABLE OF CONTENTS The internet, e-commerce, the continuing rise of direct marketing and increasing emphasis on customer retention over customer acquisition are only a few of the factors affecting the way firms carry out modern day business. Firms have to move fast, keep up with the latest developments and trends and invest in the most relevant software and systems to stay ahead of competition. Database marketing is two words. The first word implies that data is organised and stored in a computer system. The second implies that firms use this data in their marketing and sales programmes.
Database marketing is a marketing and sales system that continually gathers, refines and utilises information and data that then drives relevant marketing and sales communications programmes. Examples of this are sales calls, direct mail pieces and advertising to selected companies to acquire new customers, retain customers, generate more business from existing customers and create long-term loyalty. Database marketing is more than just a data retrieval system. While direct marketing describes a collection of marketing communication tactics such as direct mail, telemarketing, response advertising, etc., database marketing describes a way of organising a company's total marketing and sales process. It is very broad and can have impact from market research and product development all the way through customer service. Information about customers that is accurate and available to everyone can transform a company's market capacity.
Database marketing is about focusing and targeting. Databases take the guess' out of marketing programmes.
