Strategic use of Database Marketing for Marketing Decicion-Making

The purpose of this study is to examine the current uses of database marketing, intelligence building and marketing decision-making; as well as identifying the future uses of database marketing in marketing decision-making. The paper adopted a descriptive research approach in describing the current uses of database marketing and its associated uses in marketing decision-making. The research reported in this paper utilised secondary data - thus, the paper adopted a literature review method and synthesises of the literatures formed the basis of the argument presented herein. The study finds that there are two broad sources of database marketing-internal and external sources and companies utilise these sources in building customer and competitor database marketing. Companies are currently using data from the database marketing to make decisions that in turn yields return on investment. There are two implications offered by this study, one for academics and the other for managers. For academics, this paper adds to the body of literatures in this topical area. Further researches are required to empirically test across national and international boundaries, the use of database marketing for marketing decision-making using the prepositions proposed in this paper. Study research instrument developed in this paper in a five point likert scale and attached herein, requires further researchers to test the instrument for content and construct validities, as well as testing for reliability using Cronbach alpha coefficient with a minimum threshold of 0.7. For managers, this paper has predicted future uses of database marketing, which will no doubt refine managers’ thinking towards future uses of database marketing for marketing decision-making. Database marketing discussed in this study requires that for effective decision-making, organisations have to grow and nurture customers and competitors’ data, build marketing intelligence and consistently monitor these data for return on investment. The paper notes that the future of database marketing will become more exciting, as companies cultivate and develop special units saddled with the responsibilities of keeping and maintaining database marketing.