Overview of Database Marketing

Experiential Marketing
 Database Marketing

• “Database marketing is a systematic approach to the

gathering, consolidation, and processing of consumer
data (both for customers and potential customers) that is
maintained in a company's database”.
 Advantages of Database Marketing

• New ways to market smarter and reduce costs.

• New ways to market additional products or
services.
• New ways to keep customers—through extended
product usage
The Up-Sell: An Untapped Source Of Profit
 The Up-Sell: An Untapped
Source Of Profit
• Sell them more of the same product.
• Sell them a more expensive version of the
product.
• Create continuity or automatic purchases.
The pyramid to the left shows a way to
conceptualize your database.
The Cross-Sell: Marketing Other
Products
Another important feature of database
marketing is cross-selling. What other
product can be marketed to your database
and secure your relationship with your
customer.
A database also allows you to develop
new products, based upon analysis of
product/category strengths and buying
patterns of brand merchandise
 Types of Database

1. Online Database
2. Offline Database (CD-ROM)
3. Internet Database
Bibliographic Databases
Numeric Databases (Census based)
Full text Databases
Directory Databases

2. EXTERNAL DATABASE
Yellow pages & business wise directories.
Phone data service
Internal database
Info USA
Thomas Register
 Types of Marketing Data
• Behavioral Data
Behavioral Data involves metrics of customer
interactions and performance with a specific company.
Typical variables include total sales to date, total sales
within the last six months, total number of returned
items, returned items as a percent of shipped items,
average dollar sales, average time between sales,
percent of sales at discounted price…the list goes on
and on. Company-specific information about customer
behavior is often considered to be the key determinant of
future behavior.
• Attitudinal Data
Attitudinal Data emphasizes the nature of the customer’s overall
values and specific relationship with an individual company. Not all
of a company’s customers will feel the same way about the
company. Some examples include product quality, breadth of the
product lines, level of service, price, convenience/availability, etc.
• Demographic Data
Demographic Data generally includes variables such as age,
income, gender, years of education, presence of children,
occupation, home value, ethnicity, marital status, etc. While there
are several ways to acquire customer demographic information, the
most common approach is to purchase demographic enhancement
data from an outside supplier. The supplier matches your customer
list against a large compiled consumer database using name,
address, phone number, etc., and then appends the demographic
data from the compiled database onto your file
• Online Data
Online Data including information from the Web
site’s log files, shopping cart, e-mail, on-site
search, keywords and other advertising/referral
programs, third party syndicated data (e.g.,
Coremetrics, HomeScan Online, Hitwise)… The
number and types of online channels/data
sources (e.g., Mobile phones, podcasts) keeps
on growing, and DSA is committed to staying
abreast with and making the best use of each
new source of data.
 Customization of
Marketing Mix
Product Management of
Planning Intermediaries

Data Warehouse
Relationship
Targeted
Marketing
Promotions

Sales Force Customized

Productivity Services

Benefits of data warehousing in CRM

Experiential Marketing

Experiential marketing gives customers in-depth
experiences with products in order to give them enough
information to make the purchase decision.


It refers to actual consumer experiences or interactions
with products for the purpose of driving the sale of that
product – i.e. marketing – not merely the consumer
seeing an idealized experience in a TV, print, or radio
advertisement.


Experiential marketing is the difference between telling
people about features or benefits within the confines of
the thirty-second TV spot and letting them experience it
and get their own "a-ha!" event.1
• Experiential marketing gives customers an opportunity to
engage and interact with brands, products, and services in
sensory ways that provide the icing on the cake of providing
information.

• Personal experiences help people connect to a brand and make

intelligent and informed purchasing decisions. The term
"Experiential marketing" refers to actual customer experiences
with the brand/product/service that drive sales and increase
brand image and awareness.

• It's the difference between telling people about features of a

product or service and letting them experience the benefits for
themselves. When done right, it's the most powerful tool out
there to win brand loyalty.
 IKEA Hotels
Given the commoditized status and lack of differentiation
of many hotel chains like Hampton Inn, Fairfield Inn, Red
Roof Inn, etc., imagine if a particular chain partnered with
IKEA to decorate their rooms with simple, clean and
comfortable bedroom furniture. This fact alone would
give that hotel chain a significant point of differentiation .
The hotel chain also gets the economic benefit of
furniture at prices that are even better than wholesale
prices on generic furniture. IKEA gets significant
"consumption-experience level" exposure to target
customers at a fraction of the expense of TV ads.
Consumers get to experience IKEA furniture "in action"
which undoubtedly would give them enough first-hand
experience information to make future purchase
decisions.
Finally, some creative "consumer insights
research" opportunities can even be built in, such
as allowing visitors to select from among
differently decorated IKEA hotel rooms and
tracking such decisions to gather which items are
most popular or even how to make IKEA's in-store
bedroom sets more appealing. In summary, both
the hotel and IKEA achieve "experiential
marketing" which drives greater marketing
effectiveness (i.e. hotel chain differentiates
themselves from others; IKEA lets customers
actually experience their products prior to going to
a store), delivers a more impactful experience to
customers, and even reduces costs for both
parties.
 Experiential marketing
• Experiential marketing gives customers an opportunity to
engage and interact with brands, products, and services
in sensory ways that provide the icing on the cake of
providing information. Personal experiences help people
connect to a brand and make intelligent and informed
purchasing decisions. The term "Experiential marketing"
refers to actual customer experiences with the
brand/product/service that drive sales and increase
brand image and awareness. It's the difference between
telling people about features of a product or service and
letting them experience the benefits for themselves.
When done right, it's the most powerful tool out there to
win brand loyalty
 For example,
An experiential approach to launch a brand may be more effective
and relevant than anything that television/print advertisements will
offer. For example, Mahindra Tractors wanted to launch their Hy
Tec brand which was a strong hydraulic tractor aiming to help
farmers saw the field.
To show this technology to the farmers they engaged them through a
technique in which sensors were fixed to the hydraulic and a large
LCD monitor was placed for the farmers, which captured the
movement of the cultivator on an ECG graph. This activity was easily
understood and remembered by the farmers and the sales graph was
tremendously increased.
Why Experiential Marketing?

Creative experiential marketing,

when applied correctly, will lead
to greater impact for the
consumer, increased
effectiveness for the advertiser,
and even cost savings relative to
traditional advertising or
marketing techniques
 Benefits
• Provide significant opportunities to
accumulate information and insights about
customers prior to, during, and after their
interactions with a particular product and
even after purchase of said product.
• The best way to attract and retain
customers is to create experiences within
them.
 5 E’s
• Experience: Through relevant live involvement
marketing, this brings the voice, the sound, the
personality and the taste of the brand to life.
Bring emotion to your brand and the brand
closer to the consumer’s heart.
• Engage: Engage your audience. Break out of the
norm. Be different. Do something different, say
something different. Something that consumers
have never heard before.
 5 E’s
• Economize: the experiential solution. One of the
many strong aspects of experiential marketing is
the opportunity to create programs at any scale,
recognizing at any level we look to make
everything as efficient as possible
• Evangelizing: Evangelize your audience. Give
your audience a unique and interesting experience
to talk about so that they will tell a friend, a
coworker, a relative.
• Evaluate: Measure the ROI, the return on the idea.