DATABASE MARKETING

Topics of discussion


Database definition
Database marketing defined
Who use database marketing
Database marketing and direct marketing
Benefits of data base marketing.
Customer relation ship management in database marketing
Database marketing with example
Advantages of data base marketing
Disadvantage of database marketing.
Present status
Potential in data base marketing

DATABASE

A possible definition is that a database is a structured collection of records or data which is
stored in a computer so that a program can consult it to answer queries. The records
retrieved in answer to queries become information that can be used to make decisions. The
computer program used to manage and query a database is known as a database
management system (DBMS).
Many professionals would consider a collection of data to constitute a database only if it has
certain properties: for example, if the data is managed to ensure its integrity and quality, if it
allows shared access by a community of users, if it has a schema, or if it supports a query
language. However, there is no agreed definition of these properties.

DATABASE MODELS
Various techniques are used to model data structure. Most database systems are built around
one particular data model, although it is increasingly common for products to offer support for
more than one model. For any one logical model various physical implementations may be
possible, and most products will offer the user some level of control in tuning the physical
implementation, since the choices that are made have a significant effect on performance. An
example of this is the relational model: all serious implementations of the relational model
allow the creation of indexes which provide fast access to rows in a table if the values of
certain columns are known.

DATABASE MARKETING

Database marketing is the technique of gathering all the information available about your
customer, leads, and prospects into a central database and using that information to drive all
your marketing efforts. The information is stored in a marketing database and can be used at
both the strategic and tactical levels to drive targeted marketing efforts.

A company that utilizes database marketing continually gathers, refines, and analyzes data
about their customers, their buying history, prospects, past marketing efforts, demographics,
and so forth. They analyze the data to turn it into information that supports all their marketing
and sales programs. More enlightened marketing companies also use customer and prospect
interests and preferences, generally gathered on their web site, to tailor marketing efforts right
down to the individual level.

WHO USES DATABASE MARKETING?

The most successful marketers on the Internet today are database marketers. Database
marketers can

1-Send targeted promotions to any segment of their customer and prospect lists
Measure the value of their individual customers.
2-Track promotional efforts, measure responses, purchases, and the return investment for
every dollar spent on their promotional efforts.
3-Database marketing has long been in the domain of the Fortune 500 - companies that

4-Spend millions of dollars on their marketing efforts. It is now in the domain of smaller
organizations with smaller budgets

DATABASE MARKETING & DIRECT MARKETING

Direct marketing describes a collection of tactics and communication channels (direct mail,
email, telemarketing, etc) that share a common attribute the results can be measured. (I
mailed 1000 letters, 10 people responded, and I made 2 sales). A common, if simplistic,
definition of direct marketing is marketing with measurable results.

Database marketing organizes a companys customer and prospect data so that it can be
used more effectively in a direct marketing effort. It is a way of organizing the whole marketing
process. Database marketing allows you to choose what to market to whom - and when,
based on the sum total of your knowledge and experience with a customer or prospect. Then,
assuming the use of good direct marketing techniques, you can measure the effectiveness of
the effort.

BENEFITS OF DATABASE MARKETING

The single most important benefit of database marketing is the ability to target your marketing
efforts, which means specific groups in your marketing database get specific messages that
are important to them. You will focus your marketing dollars on customers that are most likely
to buy and spend less on customers that are less likely to buy. The result is an increased
return on your marketing investment.
CUSTOMER RELATION SHIP MANAGEMENT
IN DATABASE MARKETING
A customer relationship management term is a decision support system that manages the
interactions between and an organization and its customers.
A CRM maintains customer databases containing customers names, addresses, phone
numbers, past purchases, responses to past promotional offers, and other relevant data such
as demographic and financial data .database marketing is the price of using CRM databases
to develop one to one relationships and precisely targeted promotional efforts with individual
customers.

The database marketing requires vast amounts of CRM data complied from numerous
sources, secondary data are often required for the exclusive purpose of developing or
enhancing databases .the transaction record, which often lists the item purchased, its value,
customer name, address, and zip code, is the building block for many databases. This maybe
supplemented with data customer provide directly, such as data on a warranty card, and by
secondary data purchased from third parties. For example-credit services may sell databases
about applications for loans, credit card payment history, and other financial data. squire
marketing (With its business content file and consumer content file services) and Beximco ,
collect primary data and then sell demographic data that can be related to small geographic
areas, such as those with a certain zip code .(when the

Vendor collects the data, they are primary data, but when the database marketer incorporates
the data into his or r database they are the secondary data).

Example- Agora shopping mall customer relation ship management contains a database of
previous customers, including what purchase they made during the EID holidays, each year
the shopping mall sends last years gift list to customers to help them send same gift to their
friends and relatives.

DATABASE MARKETING EXAMPLES

1-Your clothing store is going to have a sale on childrens clothing. Rather than mail a
postcard to the whole customer list, you mail the postcard only to customers who have
purchased childrens clothing in the past. The result of that targeting effort will be reduced
marketing costs and increased return on your investment.

2-You are about to introduce a new product line of very attractive purple widgets. In your
database you select two lists; people who have purchased your widgets in the past, and
people who havent. You design a special introductory offer for past widget buyers and send it
to all of them.

3- Then you send a special first time buyer offer to just part of that list of non-widget-buyers
to see if your offer works. If it produces good results, you send the offer to the rest of the list.
If not, you either save your money or design a new offer and test again.

4-A sporting goods company has a web site on which people can sign up to receive special
offers. At the same time, people can indicate their areas of interest soccer, camping, tennis,
etc. They can also indicate a preference for receiving offers by mail or email. At the beginning
of camping season, the sporting goods company selects four different lists:

*Customers that have purchased camping equipment or indicated an interest in camping and
prefer email offers

*Customers that have purchased camping equipment and prefer offers by mail
Prospects that have indicated an interest in camping and a preference for email

*Prospects that have indicated an interest in camping and a preference for mail

Four different marketing campaigns are designed, implemented, and the results are
measured for effectiveness. Everyone has received offers that interest them (camping) using
the delivery method (mail or email) they prefer. There is no junk mail in this effort, and
marketing dollars have been utilized very efficiently. The chances for a profitable marketing
campaign have been maximized.


By analyzing your marketing database you determine that your best customers meet certain
identifiable criteria, say married couples with children. On the mailing list sign up page on your
web site, you ask people to indicate if they are married or have children, thereby identifying
them as likely prospects to become good customers. Further, you rent a prospect mailing list
and limit the selection to married couples with children as a way to target your prospecting
efforts more accurately.

Database marketing facilitates to work more intelligently by making marketing decisions
based on facts gleaned from your marketing database. The result is enhanced sales with
limited marketing expenses and better return on your marketing investment.




















ADVANTAGES OF DATABASE MARKETING


1-It helps to build the strong relationships with the individual customers.

2-It creates the employment because collect the data need sales people also implementing
and managing the data need special it people.

3-It helps create the prcising targeted promotions.

4-It easily interacts between an organization and its customers.

4-when launched the new products database helps because know about the different
individual customers.

5-It helps targeted the different promotional efforts with individual customers.





DISADVANTAGES OF DATA BASE MARKETING

No proper rules and regulations in Bangladesh.
Unauthorized access on the personal information.
Expensive data collection.
Sometimes overlapping the one person information to other.
When loose the information then faces the various problems.
Lack of knowledge about database.


DATABASE MARKETING IN BANGLADESH








Database marketing is the new concept in Bangladesh. Day by day this concept established
in Bangladesh. Today is very essential for the use of database marketing because of the
large volume of customers .There are many industry in Bangladesh started to used the
database marketing , like-Agora, Pqs, Minabazar, Bank-standard chartered, South east,
Dhaka bank, Pharmaceuticals-Square, Bexmeco,communication industry-Grameen phone,
City cell. Data in this industry practice of using customer relationship management database
develop one to one relation ship and practice targeted promotional efforts with individual
customers.

Database marketing in Bangladesh define the two way one is present status other is potential.

PRESENT STATUS

Actual database marketing that we know about the definition is not really in our country. Very
few organizations to follow the database marketing. In the bellow describe the some industry
that uses the database marketing.


Banking sector

Database marketing is used in banking sectors. Now in Bangladesh the use of database
marketing is increasing day by day. There are many banks in Bangladesh. The banks are
Brac Bank, Southeast Bank, First Security Bank, City Bank and so on. Like the foreign
banks they also focus on their clients. They keep database for clients information or for other
relevant data. The banking sectors always have to know about their clients, their transaction
process, and debit-credit and so on. So it is not possible for remembering all clients
information without database in marketing. So they keep database to record the clients
information. Not only that but also their transaction balance, which check is deposited, their
account is active or not, and their account history all information are stored in database
marketing. For this database marketing they can take any decision quickly. They send
greetings card to their clients in holidays like Eid, Pohela Boishakh and New Year and so on.
This is how they maintain good relationship with their clients through database marketing.

Insurance companies

In Bangladesh some insurance companies use database marketing. They store much
information about life insurance policy and general insurance policy and then they use this
database to give better customer service. They have database for recording individuals
information and insurance agents information. Through these kinds of information insurance
companies provide superior services to their customers. They keep the policy holders
information and also store the individual information who works in marketing. They provide
them service to use database through different types of software. From database they can
collect much information about policy maturity, policy lapse and premium and so on.

Not only had this mentioned sectors database marketing is used in other sectors also. The
sectors are Pharmaceutical, E-commerce, and Dhaka Stock Exchange and so on. Database
marketing lets you work more intelligently by making marketing decisions based on facts
gleaned from your marketing database. The result is enhanced sales with limited marketing
expenses and better return on your marketing investment.

GMG airways

GMG airways is the first private aircraft company in Bangladesh .They mainly operate in
domestically but now started operation in some foreign countries like, Bangkok, Indonesia,
new Delhi. In 2006 they are started to use database marketing .Every thing based on
database, it is in entire package, reservation, in local data collect the Dhaka office and then
this data send to the Bangkok office . They used the TIK software which provided the
Chicago.
Hotel Sarina
Internally developed the software called the software Mehman-starting from 2003. There
are 4000 clients and 2000 are regular clients.
Reservation- contact person no, company name, corporate level customers gave the discount
, also who are non corporate are given discount newly. When collect the reservation data, this
data through the software, then software ensure the reservation.
Reservation form-guest name, how to settle bill, room rate tariff, all are done manually and
then put in the system.Example-amain.md who is existing customers.


DATABASE POTENTIAL IN BANGLADESH

Database marketing is communicating directly with the customers and asking them to
respond in a tangible way. Database marketing is based on the principle that through
collecting and organizing information about your business, you can reduce the cost of your
businesss marketing efforts and increase profit.

Most developed countries are using database marketing so that they can not lose their
customers and they can easily negotiate with them. Like the developed countries Bangladesh
has also started to use database marketing. In Bangladesh not all organizations use database
marketing but they are influenced by foreign countries that use database marketing. As I
mentioned before database marketing is used in Telecommunication, Banking Sectors,
Pharmaceutical Company, Insurance Company and so on. But there are many other
organizations in Bangladesh that do not use database marketing. Therefore the actual results
in Bangladesh are not increased return on marketing investment. They have to utilize
database marketing in all sectors in Bangladesh. If they develop it in marketing then they will
get benefits---database marketing is the ability to target their marketing efforts, which means
specific groups in their marketing database get specific messages that are important to them.
If all sectors in Bangladesh use database marketing then it will be easy to communicate
customers, it will be possible and practical to manage large market databases on a desktop
computer. If a company launches a new product then they can use database to motivate
customers. Maintaining database they can reduce the customer cost. If you want to expand
your business then you can also use database marketing. When companies want to segment
their customers based on the analysis of differences in behavior, needs, or attitudes of their
customers, they can also develop database marketing. So there are so many benefits of
database marketing. Thus Bangladesh will have to know about database marketing and they
will have to implement it in all the sectors then they can increase their profit easily.


CONCLUDING REMARKS
Database marketing organizes a companys customer and prospect data so that it can be
used more effectively in a direct marketing effort. It is a way of organizing the whole marketing
process. Database marketing allows you to choose what to market to whom - and when,
based on the sum total of your knowledge and experience with a customer or prospect. Then,
assuming the use of good direct marketing techniques, you can measure the effectiveness of
the effort. The database has become the backbone of every profitable company.
Companies now recognize the database affects all customer communication touch-
points...from prospecting and acquisition to up-selling and retention. By streamlining
processes and implementing new technologies that will increase the bottom line, you can
provide your customers with a seamless multichannel experience. Therefore Bangladesh is
trying to enhance the use of database marketing in all sectors. Now some of the restaurants
are also using database in marketing. So I feel that if Bangladesh use database marketing in
all sectors then their profit margin will increase rapidly.