Data Based Marketing
What is
Database Marketing?
Today, the most important
power source is information.If the companies and governments can manage
information and data, the faster and more stable they can develop economically. Information
management is also extremely important in marketing.Philip Kotler shares the
following information with us in his work on this subject:
“Today, marketing is increasingly becoming a battle
for knowledge rather than a battle to have other resources. The volume of
information a company has can be its main competitive advantage.” (KOTLER,
Philip, a.g.e., s. 103)
In this environment where
information is being fought for, companies have always turned to database
marketing in order to use the information they have more efficiently.They have
determined customer-oriented company policies by storing and processing the
data they receive from existing customers. Emre CEYHAN,
a graduate student at Uludag University (2006), addressed the subject as
follows in his thesis on higher education:
“In recent years, companies in the new marketing to
find oppotunities, to changing customer characteristics and to purchasing
behavior to examine and to better communication with customers,to finding new
customers and build closer relationships with existing customers in order to
protect as well, “data-based marketing= using database marketing.” (CEYHAN, 2006, s. 14)
The easiest way to make
custom production for the consumer is to know the customer's information. The
easiest way to achieve this is by using knowledge banks or databases in
marketing. Emre Ceyhan discusses the subject in his
master's thesis as follows:
“With the increase in the value of information in
businesses and the development of a customer-oriented marketing approach,
companies have turned towards systematic studies to collect, store and use this
information in a beneficial way about the customers with whom they are related.
With this orientation, the concept of data-based marketing has emerged.
Data-based marketing includes a detailed collection of data on the relationship
between the business and the customer, consists of successive applications, and
ensures the timely and accurate organization of information. Database marketing
is the understanding of marketing based on the use of customer databases or
other databases.” (CEYHAN, 2006, s. 17)
The most comprehensive definition
on the subject make by the National Center for Data Based Marketing in the
United States:
“According to the definition made by the National
Center For Database Marketing in the United States, data-based marketing; For
the purpose of developing a high quality in the computer environment with a
relational database system management of comprehensive and up-to-date data on
researches, expectations and concerns to obtain information, the most
appropriate way is to deliver the desired messages to the right person, at the
right time, by developing the prediction models. to identify sensitive
customers and permanent sales relationships and to increase the recycling of
unit costs for marketing, as a result of this, to reduce the cost of
unit orders and to increase the profits by continuing this structure.”(Src: USA National Center for Database
Marketing)
Purpose
and Importance of Database Marketing:
There is a lot of
information pollution related to data-based marketing. Since our study has a
scientific and academic purpose, we directly share the information that Emre
Ceyhan shared in his master's thesis under this title. Some purposes
and importants:
1.
“The
reason for creating the database is to record the information that the business
or any person or organization thinks they will need later and to obtain output
or reports from this information as required.”
(CEYHAN, 2006, s. 15)
2.
“Firms
use data-based marketing in order to offer the right proposal to the right
customer, at the right time, with the right channel, by improving their skills
in customer relationship management.” (CEYHAN,
2006, s. 14)
3.
“Uğur
Özmen, Managing Director of Dışbank Retail Banking Product Development explains
this process as follows: “With which product does your customer start purchasing,
and which product continues? If these are registered in the database, when we
enter the database, we can say that the vast majority of customers with some
features switch to the Y product after starting with the X product. When we can
say this, you can have the opportunity to introduce people who started with a
product to offer it while they think about this new product.” (CEYHAN, 2006, s.17-18)
4.
“The
main purpose of database development is to reach the marketing department and
the relevant parts of customer data, and to determine the most appropriate
relationship method.” (CEYHAN, 2006, s.29)
5.
“It
allows determining the customer group that will provide the most return. The
most important value of the customer database is that it allows monitoring the
relations with customers and the company. In this way, the company avoids
inefficient efforts by determining the customers with whom it will establish a
long-term relationship and directs its resources to the right target.” (CEYHAN, 2006, s.29)
Briefly, data-based
marketing is the storage of information produced within the enterprise,
obtained as a result of special research or obtained from various sources and
utilizing this information in relations with customers.
The
Importance of Database in Marketing:
Today, there is a fact that
everyone accepts. That is, the cost of gaining new customers is much higher
than the cost of holding the customer at hand. For this reason, companies have
begun to satisfy the customer at hand and to maintain their loyalty. While
providing this, the most important weapon of the companies is the database. Emre Ceyhan
gives the following statement of Peter Drucker, who is an expert in management
and marketing in his master's thesis:
“According to management guru Peter Drucker, the
primary task of a company is to create a customer. In order to manage the
customer relations, the customer must first be recognized.” (CEYHAN, 2006, s.16)
Databases should contain
information that is free from unnecessary and repetitive information, that can
serve many independent applications and that are related to each other. The
information contained in the database should be accessible at any time and
their output should be available. It should also allow the preparation of the
reports and the necessary modifications to them. The most important feature of
marketing based on a well-structured and programmed database can be said to be
the full recognition of the customer and to ensure that the properties are
presented to the customers. For example, Emre Ceyhan shares the following
information with us as an example:
“In
large companies or shopping centers where many products are sold to a customer,
databases are also used to develop a coordinated approach to the customer for
new sales. For example, in shopping made from Carrefour, the data related to
the products received while paying from the cash register are transmitted to
the databases of the company instantly and another product supporting the
products received by the customer is given as a gift and the customer is
provided to try this product as well.” (CEYHAN,
2006, s.23)
Marketing management
automation is developed in order to evaluate the large amount of information
generated by data-based marketing. In this way, the system automatically
identifies opportunities and threats, and measures against them are brought to
the agenda. A large amount of information density has
brought up the concept of “Big DATA”.
We have stated that the data
coming from the users are very important in database marketing. The data that
is accumulated and available in today's world is called Big Data. Thanks to BD,
many data can be processed in an institutional sense and can be used as an
economic income. As can be seen from the table, the income
level of the US marketing is expected to increase over the years.
Steps
To Be Followed in Data-Based Marketing:
Steps to be taken in
data-based marketing: Emre Ceyhan mentions 6 stages in his master's thesis,
although it varies according to the work to be done and instant situation.There
are six steps:
1. Determination of
Candidates
2. Registering the Candidates'
Names and Other Information in the Database
3. Analysis of Data
4. Establishing
Communication with Customers
5. Analysis of Results
6. Ensuring Continuity
(CEYHAN, 2006, s.36)