Information Technology (IT)-Enabled Marketing

True relationship marketing requires a fundamental shift in attitude towards viewing the customer as a partner and a business asset to be managed

Each actual or potential customer is identified as a record on the marketing database DATABASE MARKETING

Types of data  Transaction data  Product data  Promotion data Prospect database Merging data from different proprietary sources may result in redundant data SOURCES AND TYPES OF DATA

CHARACTERISTICS OF DATABASE MARKETING Database marketing is an interactive approach to marketing, which uses individually addressable marketing media and channels To extend help to a company's target audience To stimulate their demand and To stay close to them by recording and keeping an electronic database memory of customer, prospect and all commercial contacts, to help improve all future contacts and to ensure more realistic planning of all marketing

ADVANTAGES OF DATABASE MARKETING The use of databases for targeting and analysis is powerful because it enables a shift from third-degree segmentations (or self – selection) to first degree segmentation: the creation of individually tailored offerings based on customer characteristics and behavior. It employs observation rather than inference.

CUSTOMER PROFILE DATABASE Profiling customers (or prospects) is the process of obtaining detailed information about them. This information can range from demographic to psychographic data. The results of profiling help a firm to determine the best messages to convey, products to target, and communications to avoid. There are six main categories of profile data for a Shopping mall : Contd…...

1.Customer sales potential 2.Customer characteristics 3.Summary of customer acquisition, retention and add-on-selling measures 4.Organisational/product charts of various shops and key personnel 5.Influences and specifiers for the visit and 6.Customer attitudes and motivation to shop CUSTOMER PROFILE DATABASE

CASUAL MARKETING DATABASES Casual marketing databases capture data on the marketing programs offered to individual prospects and customers. They are extremely complex to create, because firms rarely track marketing activities at the individual-customer level. However, they are also extremely valuable, because the information they contain can significantly improve marketing efficiency and effectiveness.

DATA QUALITY Data quality is measured by the results of the surveillance audit carried out by the firm from time to time. During this period, every customer or prospect interaction is tracked form different angles. These contacts sometime may not generate revenue, but each one can be linked to an expected or potential monetary value in the future. Hence the quality of data in the data warehouse is more important.

DATA WAREHOUSES AND DATAMINING Data mining involves the use of sophisticated statistical and mathematical techniques such as cluster analysis, automatic interaction detection, predictive modeling, and neural networking. Through data mining, marketing statisticians can extract useful information about individuals, trends, and segments from the mass of data

Database marketing help the firm to focus on the data and undertake certain analyses like Deciles and the RFM The RS Matrix is a tool used to target defectors MEASUREMENT IN DATABASE MARKETING

TECHNOLOGICALSHIP MARKETING In technologicalship marketing, IT tools are used to provide relationship-building credibility and opportunities

COST EFFECTIVENESS OF MAKING OFFERS THROUGH DATADRIVEN MARKETING A well-integrated application of technology, staff and operations that respond instantaneously to customer needs can produce miraculous results