This document summarizes key aspects of database marketing and relationship marketing. It defines database marketing as using customer lists and additional customer information to target prospects and develop customer profiles. Relationship marketing incorporates identifying and building customer databases, delivering personalized messages based on customer data, and tracking customer relationships over time. Both aim to better understand customers to strengthen relationships and increase customer retention and lifetime value.

1. Aaker, Kumar, Day
Seventh Edition
Instructor’s Presentation Slides

2. Emerging Applications of Marketing Research:
Database Marketing and Relationship Marketing

3. ©
Database
Definition
◦ A customer list to which has been added information
about the characteristics and the transactions of
these customers. Businesses use it to cultivate
customers and develop statistical profiles of
prospects most like their present customers
Marketing Research 7th Edition
Aaker, Kumar, Day

4. ©
Need
◦ Define your target group
◦ Go into your database
◦ Create a matched set
◦ Expose the test variable
◦ Minimize other marketing efforts while the test is
going on
◦ Allow test program enough time to work
◦ Measure results by comparing the two groups’
sales
◦ Take action. If test results warrant going ahead,
then
◦ Implement it
Marketing Research 7th Edition
Aaker, Kumar, Day

5. ©
Elements
◦ A unique identifier such as an ID or match code
◦ Name and title of individual and/or organization
◦ Mailing address, including ZIP Code
◦ Telephone number
◦ Source of order, inquiry, or referral
◦ Date and Purchase details of first transaction
◦ Recency/frequency/monetary transaction history
◦ Credit history and rating
◦ Relevant demographic data for consumer buyers
◦ Relevant organizational data for industrial buyers
Marketing Research 7th Edition
Aaker, Kumar, Day

6. ©
Benefits
◦ Customers are easier to retain than acquire
◦ Determine their “lifetime value”
◦ Developing relationships with customers
Marketing Research 7th Edition
Aaker, Kumar, Day

7. ©
 Rebate Cards
 Suggestion Cards
 Warranty Registration Cards
 Free Subscription Offer Cards
 Directly Ask Consumers
Marketing Research 7th Edition
Aaker, Kumar, Day

8. ©
Guerilla Tactics
 Get the product right
 Use low-tech targeting and creative thinking
 Use other people’s data (OPD) first
 Buy new media
Marketing Research 7th Edition
Aaker, Kumar, Day

9. ©
 Active
 Inactive
 Inquiries
 Value Added Databases
◦ Overlay of multiple databases
Marketing Research 7th Edition
Aaker, Kumar, Day

10. ©
 Recency of Purchase
 Frequency of Purchase
 Monetary Value of Purchase
 Validating Prospect Profiles
 Benefits of Database Marketing
Marketing Research 7th Edition
Aaker, Kumar, Day

11. ©
Fundamentals
 E-commerce influence
◦ The impact of the net on purchases made entirely
off-line
 E-commerce ordering
◦ Captures the orders that are placed on-line but paid
for later via telephone or in-store
 E-commerce buying
◦ Combines ordering and paying on-line
Marketing Research 7th Edition
Aaker, Kumar, Day

12. ©
Real-time marketing
◦ The marketing process of personally customizing
goods or services that continuously update
themselves to track changing customer needs,
without intervention by corporate personnel, and
often without conscious or overt input from the
customer
Marketing Research 7th Edition
Aaker, Kumar, Day

13. ©
Relationship Marketing Incorporates Three
Elements
 Identifying and building a database of current and
potential consumers which records and cross-
references a wide range of demographic and
purchase information
 Delivering differential messages to these people
through established and new media channels
based on consumers' characteristics and
preferences
 Tracking each relationship to monitor the cost of
acquiring the consumer and the lifetime value of
his/her purchases
Marketing Research 7th Edition
Aaker, Kumar, Day

14. ©
 The process of developing and implementing
various forms of persuasive communications
programs with customers and prospects over
time
 The goal of the IMC is to influence or directly
affect the behavior of the selected
communications audience
Marketing Research 7th Edition
Aaker, Kumar, Day

15. ©
Qualitative Methods
 Jury of Executive Opinion
 Sales Force Estimates
 Surveys of Customer Intentions
 Delphi Approach
Marketing Research 7th Edition
Aaker, Kumar, Day

16. ©
Quantitative Methods
 Time-series Extrapolation
◦ Trend projection
 Causal Models
◦ Leading indicators
◦ Regression models
Marketing Research 7th Edition
Aaker, Kumar, Day