Database marketing involves building and maintaining customer databases to contact customers, facilitate transactions, and build customer relationships. It requires a large investment and may not always yield accurate assumptions as customer situations and loyalty can change. Database marketing is less effective when products are one-time purchases, customers do not show loyalty, individual sales are small, information gathering is costly, or there is no direct contact between seller and buyer.

1. CREATING CUSTOMER VALUE AND
RELATIONSHIPS

3. Database marketing is the process of building,
maintaining and using customer databases and other
databases to contact, transact and build customer
relationship.

4. DATABASE KEY CONCEPTS
Customer
Database
Business
Database
Data
Warehouse
Database
Marketing
Data
Mining

5. Cons of Database Marketing
Situations are not conducive
Requires a large well placed
investment
Assumptions may not be true
always
Unwillingness of customers
Difficult to be customer oriented

6. Product is once
in lifetime
purchase
Customers do
not show loyalty
Unit sale is small
Cost of
information
gathering is high
No direct
contact between
seller and buyer
Database is
not
worthwhile
when

7. Credits
• http://survey.cvent.com/blog/customer-insights-2/the-key-to-data-based-
marketing
• http://www.dbmarketing.com/2010/03/900/
• http://www.inc.com/karl-and-bill/how-do-you-define-customer-value.html

8. Created By :-
Soham Nayak , NIT Calicut
Internship with Prof Sameer Mathur, IIM
Lucknow
www.IIMinternship.com