Database marketing is a type of advertising scheme that utilizes a database management system for the purpose of advertising a particular product or service. Database management system or the DBMS is a computer program that stores and organizes data in a format that is useful to the user. It has the ability to perform simple mathematical operations and manipulate existing data to make it more organized and therefore more useful to the user. So how can it be of use to advertising exactly? Well, if a company has a particular group of data, this kind of advertising tool can be used to build up customer profiles in such a way that allows them to identify the actual target market for their specific type of business. This way, business owners can target their customers in term of advertising with greater accuracy and lesser cost.
You might ask how you can possibly save on this kind of marketing strategy. Well it's all very simple. With the use of an organized database, you are able to identify your specific target market and target whatever advertising schemes you have to that portion of the population alone and nowhere else. This way, you do not have to waste on advertising efforts on an audience that is not interested in buying your product or availing of your service in the first place.
After you have identified your target market, you can now use other advertising schemes to reach them or to effectively get their attention. And your options for doing so are numerous, from internet schemes, telemarketing, snail mails, electronic mails, print and television and so much more. And since database marketing is another form of direct marketing, it is very easy for you to determine the affectivity of such an advertising scheme.
The sources of data for this kind of market scheme can be very numerous. The more intensive the data is the better can businesses come up with personalized form of communication to reach their target market. Some database could even include a list of a customer's purchasing history which is extremely advantageous for businesses that fall under the preference of this particular consumer. And for businesses based in developed world countries such as the United States, these kinds of data are easily available from third party sources, solely for business use.
Today, apart from making use of these data as a marketing strategy, other businesses have made use of this as a means to improve their product and tailor make them according to the specific tastes and preferences of their target market. This way, businesses are able to establish a good and long lasting relationship with their customers.
Database marketing alone has solved one of the biggest problems in advertising and that is identifying a business' specific target market. In the past and even up until today, companies waste precious money on advertising their products to the wrong people. So do not let this happed to you and make use of database marketing today.
Author Resource:
Darren Dutton is the author of this article on Marketing in 2010 .
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