[...]... retention The XYZ Bank, Tesco, and E-tailer Z examples involve customer development 1.1.2 Database Marketing, Direct Marketing, and Customer Relationship Management We can shed more light on the definition of database marketing by considering its close cousins, direct marketing and customer relationship management (CRM) Indeed, direct marketing and CRM overlap strongly with database marketing While each of... • • Chapter 27: Designing Database Marketing Communications Chapter 28: Multiple Campaign Management Chapter 29: Pricing Introduction Why Database Marketing? Organizing for Database Marketing Customer Privacy and Database Marketing Part 2: Customer Lifetime Value (LTV) Part 3: Database Marketing Tools: The Basics Part 5: Customer Management Acquiring Customers Cross-Selling and Up-Selling Frequency... carefully chosen First, database marketing is fundamentally about using of customer databases The “customer” can be either current customers or potential customers Firms have data on their current customers purchase behavior and demographic and psychographic information, as well as the firm’s previous marketing efforts extended to these customers and their response to them For potential customers – prospects... 3 1.1 What Is Database Marketing? 3 1.1.1 Defining Database Marketing 4 1.1.2 Database Marketing, Direct Marketing, and Customer Relationship Management 5 1.2 Why Is Database Marketing Becoming More Important? 6 1.3 The Database Marketing Process 8 1.4 Organization... data and implementing the results 1.1.1 Defining Database Marketing While the above examples provide an idea as to what database marketing is about, it is useful to formally define the topic The National Center for Database Marketing, quoted by Hughes (1996a, p 4), defines database marketing as: Managing a computerized relational database, in real time, of comprehensive, up-to-date, relevant data on customers, ... a catalog mailing is used to update “recency”, “frequency”, and “monetary” (RFM) variables for each customer These become part of the database and are used to develop future targeting strategies 1.3 The Database Marketing Process 9 Table 1.1 Database marketing activities Acquiring customers • • • • Retaining and developing customers Cross- and up-selling Customer tier programs Frequency reward programs... 859 Chapter 1 Introduction Abstract Database marketing is “the use of customer databases to enhance marketing productivity through more effective acquisition, retention, and development of customers. ” In this chapter we elaborate on this definition, provide an overview of why database marketing is becoming more important, and propose a framework for the database marketing process.” We conclude with... of his marketing efforts, “I know that half of my marketing is wasted; my problem is that I just don’t know which half.” The promise of database marketing is to identify which marketing efforts are wasted and which are productive, thereby allowing the firm to focus on the efforts that are productive Database marketing does this by identifying customers for whom the marketing effort will pay off, and then... the store This is not direct marketing but it is database marketing The second component of the application, training salespeople to recognize particular market segments as they shop in the store, is more along the lines of direct marketing In summary, database marketing, direct marketing, and customer relationship highly overlap They differ in points of emphasis – database marketing emphasizes the analysis... Evaluate Learn Fig 1.1 The database marketing process 1.3 The Database Marketing Process Database marketing is implemented through a process depicted in Fig 1.1 The process originates in an environment characterized by the firm’s overall database marketing strategy, its organization, and legal issues (especially privacy) These factors determine the nature of problems the firm faces, and how they will be solved . Introduction 3 1.1 WhatIsDatabaseMarketing? 3 1.1.1 DefiningDatabase Marketing 4 1.1.2 Database Marketing, Direct Marketing, and Customer RelationshipManagement 5 1.2 Why Is Database Marketing Becoming. S. Database Marketing: Analyzing and Managing Customers Ingene, C.A. and Parry, M.E. Mathematical Models of Distribution Channels Chakravarty, A. and Eliashberg, J. Managing Business Interfaces: Marketing, . field and the process of conducting database marketing (Chapter 1). That process begins with a database marketing strategy, which in turn leads to the question, what is the purpose and role of database