Abstract:
Database mar1<eting can be a unique method of applying direct mar1<eting. With
its roots firmly in direct marketing principles, it goes beyond the technique of just
eliminating intermediaries. It accumulates data about prospects and clients,
processes it into useful information and employs it to mar1<et more effectively to
clients than that could be achieved by using only mass mar1<eting techniques.
More than only the basic transaction data is accumulated, for example, lifestyle
data, demographic data, reaction to previously held mar1<eting campaigns and
transaction history. This specific information is used to develop individualised
services, products and mar1<eting communication methods to approach the client
individually with offerings to suit the unique needs of the client.
Advantages of this approach to mar1<eting are effective segmentation, crossselling
enhancement and elimination of waste (both in monitory terms and the socalled
junk mail). If only clients who need a service/product, are approached with
a personalised service/ product, theoretically a 100 per cent success rate should
be achieved.
The empirical results indicate that Rudolph (1997: 15 - January/ February) is
indeed right with the following statement: Evidence of database marketing
entering South Africa is sadly lacking. The results confirm that the term Database marketing is confused with direct marketing and that suitable
systems, personnel and support from senior management are insufficient in most
financial institutions in South Africa. The recommendation is that a structured
approach should be followed, as explained in a model for database marketing.
This structured approach should be supported by top management, and should
be accepted by all members of personnel in the institution and by leaders with a
combined knowledge of marketing and information technology principles.
