Database marketing is a form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes. The method of communication can be any addressable medium, as in direct marketing.
The distinction between direct and database marketing stems primarily from the attention paid to the analysis of data. Database marketing emphasizes the use of statistical techniques to develop models of customer behavior, which are then used to select customers for communications. For example a blinds company who is having a Christmas sells needs to use database marketing when they want to promote a vertical blinds or roman shades product in Christmas time. As a consequence, database marketers also tend to be heavy users of data warehouses, because having a greater amount of data about customers increases the likelihood that a more accurate model can be built. Another example for California motels who is having economy hotels in California, wants to promote their California motels at the time of valentine day. They can use such database marketing.
The “database” is usually name, address, and transaction history details from internal sales or delivery systems, or a bought-in compiled “list” from another organization, which has captured that information from its customers. Typical sources of compiled lists are charity donation forms, application forms for any free product or contest, product warranty cards, subscription forms, and credit application forms.
Ref: Wikipedia
Tags: Blinds, business management, california motels, database marketing, direct marketing, Online marketing
