Database marketing is essentially the technique of gathering all the information available about your customer, leads, and prospects into a central database. This central database is then used for the information, and it is this information then that drives all the marketing efforts.
This information collected in Database marketing is stored in a marketing database and then can be used at both the strategic and tactical levels to drive targeted marketing efforts.
A company that chooses to utilize the concept of database marketing for their marketing efforts continually gathers, refines, and analyzes data about its customers, their buying history, prospects, past marketing efforts, demographics, and etc.
The company also analyzes the data to convert the data into information and it is this information that supports all their future marketing and sales programs. Some of the more enlightened marketing companies also use customer and prospect interests and preferences, which are generally gathered from their web site, to tailor design the marketing efforts to the individual level.
Database marketing can also further be defined as a way of organizing a company's customer and prospect data so that it can be used more in a more effective manner in a direct marketing effort. Database marketing is also a way of organizing the whole marketing process. Database marketing allows the company to choose what to market to whom and when based on the sum total of the knowledge and experience that lies with a customer or prospect.