Part 4. Advertising and Integrated Communication
Published Online: 15 DEC 2010
Copyright © 2011 John Wiley & Sons, Ltd. All rights reserved.
Wiley International Encyclopedia of Marketing
How to Cite
McCarty, J. A. 2010. Database Marketing. Wiley International Encyclopedia of Marketing. 4.
- Published Online: 15 DEC 2010
Database marketing involves the analysis of customer transaction data, along with other customer information (e.g., demographics), to segment customers and to develop marketing strategies to some or all of those segments. It employs a number of analytical techniques that are used to search for meaningful patterns and relationships in the customer data. Database marketing aids marketers in serving very narrow segments; the information available in databases allows marketers to provide customized marketing strategies to their customers.
Database marketing has been used by direct marketers such as catalog marketers for many years; recently, other kinds of firms, such as credit card providers, automobile rental agencies, brick and mortar retailers, casinos, and hotel chains, have found database marketing techniques useful. Charities and associations have also used database marketing. Database marketing is closely aligned with the concept of relationship marketing, focusing on the long-term relationship with the customer rather than the immediate sales opportunity.
- data mining;
- direct marketing;
- relationship marketing;
- RFM analysis