At the heart of every direct marketing activity is a marketing database and its effectiveness depends on the amount and quality of customer information held by organisations. Database Marketing can be defined as the effort of organiations in compiling, analysing, using and maintaining data held about customers. This effort can assist organisations in contacting, transacting and building relationships with existing and potential customers (Jobber, 2009).
Database marketing uses databases of customers or potential customers to generate real value for companies. The concept explores why it is important for organisations to be aware of customer needs and explores key characteristics of database marketing.
Websites are an important marketing tool that has revolutionized database marketing. Contemporary sites with cookies can conduct a wide range of operations; almost similar to those that can be done by a live operator. Although the websites are not excellent selling tools, they are excellent research tools that allow customer bonding.
This is a popular method applied in determining clients that have high chances of responding to promotions. This method has been in prevalence for more than five decades, but there are still many entrepreneurs with no knowledge and experience of its correct application. It is a flexible tool that plays a major role in making database marketing successful.