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Topic 4 Database Marketing

The document discusses database marketing, including defining database marketing, common applications like selling additional products to existing customers and maintaining customer relationships, obstacles to implementing database marketing programs, and who benefits most from database marketing like organizations and customers. Database marketing involves building, maintaining and using customer databases for direct marketing purposes.

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Hanna Charissa Avendano
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145 views16 pages

Topic 4 Database Marketing

The document discusses database marketing, including defining database marketing, common applications like selling additional products to existing customers and maintaining customer relationships, obstacles to implementing database marketing programs, and who benefits most from database marketing like organizations and customers. Database marketing involves building, maintaining and using customer databases for direct marketing purposes.

Uploaded by

Hanna Charissa Avendano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Database

Marketing &
Data Mining
Database Marketing
Data Database
• New oil in the generation • Where we build, collect or
• Facts collected for gather facts collected in
reference or analysis order to organize it for
future reference or analysis
Base
• Bottom of something for
support
• Where you collect
something
Customer Database
• Organized collection of comprehensive data
about individual customers/prospects that is
current, accessible and actionable for such
marketing purpose as lead generation, lead
qualification, sale of a product or service or
maintenance of customer relationships
Database Marketing
• Is the process of building, maintaining and
using customer databases for the purpose of
contacting or transacting
• Form of direct marketing where RELEVANT
information 1. LEGALLY AND ACCURATELY
obtained from customers are being 2.
ANALYZED in order to 3. PLAN AND
IMPLEMENT MARKETING STRATEGIES thus,
(result) BOOSTING SALES AND REVENUE.
3 Stages
• Data Collection
• Transformation of data into
knowledge
• Development of business
Strategies
Common Database
Marketing Applications
3 Broad Categories
1. Selling products and services to NEW
customers
2. Selling additional products & services
to EXISTING customers
3. Monitoring & maintaining existing
customer relationships
Selling additional products & services to
EXISTING customers

• Cross selling – different from what previously


purchased
• Up-selling – upgrade the product or service
he/she currently purchased
• Market-basket analysis – examining the
composition of items the customer had on
single purchased occasion
• Recommendation Systems
Monitoring & maintaining existing
customer relationships
• Customer Attrition (churn analysis) – finds
patterns in customer’s purchase or
complaint behavior that suggests he/she
will become an ex-customer
• Customer Segmentation – grouping
customers based on their past
purchases/other factors
Obstacles to
Implementing a
Database Marketing
Program
Different Obstacles:
• Data decay
• Data accuracy
• Incidental cost
• Environment
• Technical obstacles/Complexity of data
Who Stands to Benefit the Most
from the Use of Database
Marketing?
3 factors in driving the return
to database marketing
• Larger number of customers of the
organization
• Customer transactions can either be
the result of normal operations or use
of a strategy
• Acquisition and loss of a customer is
expensive to the organization
Who benefits?
1. Marketers/Business/Organization

• Make your marketing communications more


targeted
• Improve efficiency & effectiveness of your
marketing
• Develop better customers relation and loyalty
Who benefits?
2. Consumers/Customers

• The customer experience is personalized


• Customers receive an improved service
Leading industries:
• Telecommunications
• Financial institution
• Travel industry players
• Educational institution
• Non profit organization or charities

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