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Database Marketing

Part 4. Advertising and Integrated Communication

  1. John A. McCarty

Published Online: 15 DEC 2010

DOI: 10.1002/9781444316568.wiem04034

Wiley International Encyclopedia of Marketing

Wiley International Encyclopedia of Marketing

How to Cite

McCarty, J. A. 2010. Database Marketing. Wiley International Encyclopedia of Marketing. 4.

Author Information

  1. The College of New Jersey, Ewing, NJ, USA

Publication History

  1. Published Online: 15 DEC 2010

Abstract

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.

Keywords:

  • data mining;
  • direct marketing;
  • relationship marketing;
  • micromarketing;
  • RFM analysis