Database marketing is a fairly new and modern method of promoting a business and is beginning to be used in place of more traditional methods of direct mail shots and customer leaflet dropping.

Database programs are usually used in order to ease complications that are experienced by companies to determine exactly who their target customer is and helps to minimise on time and effort when it comes to reaching out to that customer.

Databases hold information such as previous customers and what they have bought, details of market research that has been conducted and are often bought from companies holding details on those customers.

Businesses that can – be that the larger corporations and retailers – will use a tailored database management system that allows them to analyse demographic profiles of their target group, where they are, and exactly how their advertising budget can be maximised to adjust current marketing methods and market to a chosen group.

Smaller companies still use database marketing, however often on a much smaller and less involved scale, though some companies are still confused at how it works and just how to use the programs to their advantage.

Where Does Information Originate
Unfortunately, some methods used to gain information on customers do not comply with any kind of moral and people tend to be put off by direct marketers – being approached in the street is often not convenient and not welcomed, but the majority of ways to gain information are deemed safe.

This kind of information is often provided by the customer who authorises the recording of information by leaving a tick box blank – I think we’ve all seen those!

You may see these whilst making a purchase, or being tempted into buying a product or service, and the temptation is often ‘to win a prize or reward’.  Lots of the information is collected by websites when we register for email updates.  The information can be sold on which is quite possibly why some companies do not use database marketing due to the negativities surrounding the way information is obtained..

It remains to be seen if smaller companies are able to use this method of marketing as a more regular business tool, but it will certainly stay popular within the direct marketing world that is the bigger budget companies.

This entry was posted on Saturday, November 22nd, 2008 at 12:00 am and is filed under Web Marketing.
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