Database Marketing

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1. To start with

2. Database Marketing
a. Consumer Data
b. Business Data

3. Difference between direct marketing and database marketing

4. Why database marketing is increasing so rapidly?
a. Greater use of market segmentation
b. Emphasis on service and customer relationship management c. Changes in media
d. Changes in distribution structure and power
e. Lifestyle and demographic trends
f. Integration of business functions
g. Technological advances
h. More informed customers

5. Comparison between Aggregate and Database Marketing

6. Advantages of database marketing

7. Disadvantages of database marketing
a. Cost issues
b. Negative perceptions:

8. Advances in Database Marketing

To start with…

Its 7:15PM, Aarti, 29- year-old account executive for a tech company, stops at a supermarket in Southbury, Connecticut, on her way home from work. After picking up diet Pepsi, a few tomatoes, lettuce and a package of swiss cheese, she goes to the express checkout line. Aarti hands her store card to the clerk, who scans it prior to processing her order. Using the store card allows her to get a discount on the cheese. With her sales receipt, she also gets a `40 coupon for Ritz Crackers. The bill came to `60. Aarti paid with her VISA card.

Aarti picks up her mail before going into the house. There are catalogs from Bloomingdales, Home Decor, Shop Namaste and Pottery Barn. She puts the Pottery Barn catalog to the side. Her sister’s birthday is in two weeks and the items in the catalog are consistent with her sister’s decorating style.

In addition to the electric and VISA bills, she has a letter from the Volkswagen dealership thanking her for her recent purchase and a letter from the American Red Cross. Remembering that the Red Cross recently helped her friend who was caught in a flood, she makes a contribution by checking a box and entering her VISA number.

Aarti also got the new issues of Smart Business, Business Week and Self magazines. An ad in Business Week about a technology conference attracts her attention, and she fills out an attached response card requesting more information.

After dinner, she receives a phone call from an insurance company. At first, she is irritated by the call. She then remembers that her car insurance rates increase substantially since she leased her new Volkswagen and asks the person on the phone for a quote. Later that evening, she goes on the Internet to look for other insurance companies and requests three more quotes online.

Browsing the web, she remembers that she has almost finished the book she has been reading and goes to The Amazon page provides her with the suggestions based on her previous purchase, A certain Justice, by P.D. James, A new mystery by Elizabeth George in on the suggestion list. It can be shipped within 24 hours. Aarti places the book into the shopping cart and uses 1-click to check out.

Before leaving the Amazon site, she clicks on the Music tab and searches for Sarah McLachlan. She heard a new single by McLachlan on the radio and was curious about the other songs on the CD. Jeri listens to five cuts from McLachlan’s New CD but decides not order yet.

At 10:00 pm, she scans through the channels on TV and pauses at QVC when a bracelet grabs her attention. Calling QVC, she gives her account number that she used 2 months ago when she purchased a color printer. In less than 1 minute, the bracelet is ordered and she returns to scanning the channels.

Aarti’s daily routine is similar to the routines of millions of other people in the US and other countries. These transactions provide us with the goods and services that are part of our lives. In the scenario above, databases underlie all the transactions that Aarti made. They underlie the purchases in the grocery store, catalogs, TV...
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