PROS AND CONS OF DATABASE MARKETING

Organized collection of comprehensive information about individual customers or prospects

Customer Database

How are this

databases used?

Data Warehouses & Mining Data is collected and organized into Data warehouses, where marketers can analyze

them to draw inferences about an individual customer

Pros

a To identify prospects

aTo decide relevant

customers for different offers

a To deepen customer

loyalty

a To reactivate customer purchase

a To avoid serious

customer mistakes

Cons

aSome situations are just not conductive

to database management

a Large Investment and Skilled

Staff

a Everyone may not be customer

oriented

a Not everyone wants

relationship

a Assumption may not hold

true

a

Disclaimer

Created by Palak Goyal, IIT Kharagpur during an internship by Prof. Sameer Mathur, IIM Lucknow

IIMInternship.com