Database Marketing ITS Benefits AND Disadvantages

Database Marketing ITS Benefits AND Disadvantages

Database Marketing ITS Benefits

AND Disadvantages


Miss. P. PIRAKATHEESWARI, Lecturer in Commerce,

Sri Sarada Faculty for Girls (Autonomous), Salem – 16.

 “Knowledge is a course of action of pilling up facts wisdom lies in their simplification”

–         Alexander Graham Bell


           The database Marketing is the course of action of making, sustaining and employing the databases (on the purchaser, merchandise, suppliers and resellers) for the reason of calling, transacting and making associations.  The database marketing and advertising is an interactive approach to marketing and advertising, which takes advantage of the individually addressable marketing and advertising media and channels these kinds of as mail, phone and the income power.


 The salient capabilities of database marketing and advertising include:

ü      Extending assist to a company to achieve its target viewers

ü      Stimulating the purchaser desire and

ü      Recording and sustaining an electronic database of the purchaser, and all industrial contacts, so that the small business company could increase their potential contacts and devise a a lot more real looking marketing and advertising strategy.

 Traits of Database Marketing 

  1. Every single genuine or likely purchaser is determined as a report on the marketing and advertising database.
  2. Every single purchaser report has facts (made use of to establish the very likely buys of particular merchandise and how they really should be approached) on:
  • Identification and access (eg. Name, deal with, phone No)
  • Purchaser demands & qualities (demographic and psychographic facts about buyers, the sector style and determination creating unit facts for the industrial buyers)
  • Campaign Communications (no matter if the purchaser has been uncovered to particular marketing and advertising communication strategies)
  • Consumers past responses to communications accomplished as a component of the strategies
  • Past transactions of buyers (with the company and perhaps with the rivals).
  1. This enables the company to choose on how to respond to the purchaser demands.
  2. The database is made use of to report the responses of the purchaser to the firm’s initiatives. (e.g. marketing and advertising communications or income strategies).
  3. The facts is also produced offered to the company’s marketing and advertising coverage makers which enables them to choose:
  • The target markets or segments correct for every single product or service or service.
  • The marketing and advertising blend (price tag, marketing and advertising communications, distributions channel, etcetera) correct for every single product or service in every single target current market.
  1. This phase is critical in romantic relationship marketing and advertising.
  2. The marketing and advertising strategies are devised in these kinds of a method to give the most pertinent facts that the company is in search of.

 The expansion of database marketing and advertising has been facilitated by:

  • The potent processing capability and the huge storage capacity of condition-of-the-art personal computers and
  • The method in which the telecommunication technology is harnessed to make the purchaser and current market facts offered to the broad assortment of workers concerned in the marketing and advertising and income workplaces.

 Benefits of Database Marketing

             The a single-on-a single marketing and advertising, which directs the tailored choices to unique buyers, has supplied an more thrust to database marketing and advertising.  It has utilized the database to capture the interactions concerning a company and its buyers at every single stage of time and makes use of the facts investigation to look for for styles in these interactions.  These styles give the most attractive likely buyers apart from giving clues in customizing the merchandise, pricing and promotions of a product or service.  When utilized in the suitable method, the database marketing and advertising could give insights into the customer’s acquiring behavior throughout the product or service categories, so that the corporations could devise their programmes and programs to the “whole customer”, then the purchaser seen only by means of the slim view of their have merchandise and manufacturers.

 Disadvantages of Database Marketing 

  • The charge incurred in setting up the software program and components specifications has produced the database marketing and advertising costly in its institution.
  • The database typically demands new competencies and corporations from new analytical and determination-creating competencies in income and marketing and advertising to a revamped facts technique corporation that could support the completely new class of users.
  • The database marketing and advertising is dependent on the facts quality.  When the observational facts is potent, the corrupted observational facts could be ‘powerful misleading’.  The quality also is dependent on the quality of investigation and the extent to which the databases are joined.
  • Until now, the database marketing and advertising has been primarily made use of as a tactical tool.


The application of systems to excellent a lot more purchaser additional worth and to aid the coordinating of networks is of particular significance for a contemporary organisation and its networks.  A very well-integrated application of technology and workers alongside with working experience that could respond to the purchaser demands, inspire the buyers to use a full selection of merchandise/companies of company alternatively than confine to just a number of.

The new systems have radically altered the approaches in which quite a few service corporations offer with their buyers.  The most potent power for modify currently comes from the integration of personal computers and telecommunications.  The digitization will allow textual content, graphics, online video and audio to be manipulated, stored and transmitted in the electronic language of personal computers.  The more quickly and a lot more potent software program enables corporations to generate relational databases that incorporate the information’s about buyers with facts of all their transactions.  The corporations could utilize these databases for a) insights into new developments, b) new strategies to segmentation and c) new marketing and advertising chances.  The technological modify influences quite a few other kinds of companies much too from airfreight to hotels to the retail retailers.

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