Database marketing is the most successful form of marketing used by the marketers on the internet through out the world. Database marketing involves analysis and use of customer databases to promote the product or service in the direct marketing. There are two types of marketing databases viz. consumer databases and business databases. The data of the customers is collected in number of ways by the organizations and this information is stored in the database. This information collected through Database marketing is stored in a marketing database which can be used at both the strategic and tactical levels to drive targeted marketing efforts.
Data sources:
Database marketing is the analysis of databases which consists of personal details of the customers. The information is gathered from internal sales data or is taken from other organizations.
Data Analysis:
Once the data is collected, it is simplified and analyzed to produce valuable marketing information. If the database is limited, it can be analyzed manually and if it is a complex one, software tools are used to draw the conclusions. By studying the purchases made by consumers in the past, it can be possible to predict broad trends in their purchasing habits, which helps in accurate prediction of their future purchasing.
Marketing:
After analysis of customer database, next is to send the advertisements to the customers through different modes. With the growth in the technology, the businesses are able to reach the customers very easily and quickly. Electronic messages are more useful than transitional mailing because through electronic mail recipients can respond instantly, either by following a link in an email or opting in through an SMS.
Database marketing is found to be very useful to a business to increase its sales.
