Database Marketing.

Definition: Database marketing is the analysis and use of customer databases to aid in the direct marketing of products.

One of the biggest challenges any sales enterprise faces is in finding potential customers for their products. Billions are spent each year in product marketing, though much of this expenditure is wasted through the use of inaccurate data and bad marketing decisions
In an effort to more effectively target potential customers, many enterprises use database marketing to build models of their target demographic group, track down these groups and focus their advertising budgets on them in the hope that it will result in an improved return on investment (ROI) from their advertising spend.

At its most basic level, database marketing is the analysis of databases holding information about previous or potential customers. These databases usually consist of basic personal details of customers along with details of their past transactions. The information is either gathered from internal sales data or bought in from other organisations.