COMMERCIAL DATA BASES

Specialized research firms develop ongoing commercial databases, which contain information on population traits, the business environment, economic forecasts, industry and companies performance, and other items. The research firms sell access to their databases to clients. Generally, databases are available in printed form, on computer disks, CD-ROMs, or tapes; and as online downloads from the Internet.Among the best-known database services are ABI/Inform, ProQuest, InfoTrac Web, Dow Jones Interactive, and Lexis-Nexis.

DATABASE MARKETING – Data-base marketing may be defined as a computerized technique that compiles, sorts, and stores relevant information about customers and potential customers; uses that information to highlight opportunities and prioritize market segments; and enables the firm to profitably tailor marketing efforts for specific customers or customer groups.

Data-base marketing works like this:

1. It creates a bank of information about individual customers.
2. It uses that information to analyze buying and inquiry patterns, thereby creating the ability to target goods and services more accurately.
3. It can be used to promote the benefits of brand loyalty to customers at risk from competition.
4. It can fuel sales growth by identifying customers most apt to buy new goods and services.
5. It can increase sales effectiveness.
6. It can support low-cost alternatives to traditional sales methods, which can be of strategic importance in markets where margins are being eroded.

Worldwide, millions of organizations now use some form of MIS. Progressive firms (and divisions within the same firm) are transmitting and sharing marketing information with each other-quickly and inexpensively. One-half of Fortune 1000 companies and one-half of large retailers are actively engaged in database marketing. These are among the firms with well-structured marketing information systems:

1. 3M, whose best-known products are Post-it Notes and Scotch tape, operate in more than 60 countries. It recently introduced a $30 million online information system and all its senior executives get their information from the online database.

2. British-based retailer Marks & Spencer uses information generated from customer credit cards to better tailor its marketing efforts. It recently revamped its process for supplying products to stores after studying its customer database.

3. Louise’s Trattoria, a 13-unit chain of Italian restaurants in Los Angeles, reviewed the information from computer-scanned customer receipts that were electronically stored in the firm’s data warehouse. It learned that its customers were more interested in “California Italian” (as opposed to traditional Italian) foods, healthful menu items, and that its patronage was skewed more female. It then revised its strategy accordingly.

The Importance of Marketing Information

Information is the life blood of any successful company. But essentially we must say that ‘marketing’ information is the life blood of your company. In this article we will list down why this statement is true to the hilt?The first reason for giving this importance to marketing information is due to the ever changing consumer demand factor. Companies which essentially deal in mass product making and distribution, do so anticipating mass consumer demand. So every marketing manager has to keep updated information about his/her consumer’s needs and wants. Consumers need, wants, tastes and fashion sense tends to change in this dynamic economy.

If as a Marketing Manager you do not have the information about your consumer’s latest wants and desires, you may end up spoiling your company’s entire predictions for success. Just like consumer tastes can change, so can the forces of demand and supply which are considered as economic indicators.

Therefore a marketing manager should have adequate information about the latest trends in market supply, demand and price change. Moreover in order to forecast fcabout the future a marketing manager is always dependent on economic indicators.

Second reason why we consider information so important for a marketing manager is due to the complexities of today’s marketing process. Markets are expanding to different geographies and nations. Hence the marketing department needs adequate market intelligence system. Because markets are expanding, you may also face competition from the global market too and not just from the only company in your locality.

So in order to take important decisions pertaining to your marketing and sales activities, you need information about what your competitors are doing. To outguess and predict your competitor’s behavior, you hence need good information. Another point that we can take from the ever expanding markets is the chance to innovate as per market conditions.

For example when the market felt an energy crisis, alternative sources of energy were discovered and companies are now making a successful business using these. So, in order to innovate you need information. New markets, new products, new technologies are all based on latest facts and figures.

Another reason, why as a marketing head you need information, is to bridge the gap between your consumers and your company. Just because you are isolated from day to day market realities, can lead to dissatisfaction among your consumers. For example if your distributor is not providing apt services, your consumers can go against you. So how to know where the problem lies? Only through communication and information flow.

And finally why you should strive to collect updated information for your marketing activities –because you need to make proper marketing plan and forecast. The plans and forecast released by marketing department becomes the foundation for other department’s plans. So if you go wrong, the entire company may fail. So try to get more and recent information to give life to your marketing activities and to your company too.