Data-based marketing is the technique of gathering all the information available about your customer, leads, and prospects into a central database and using that information to drive all your marketing efforts. The information is stored in a marketing database and can be used at both the strategic and tactical levels to drive targeted marketing efforts.
A company that utilizes database marketing continually gathers, refines, and analyzes data about their customers, their buying history, prospects, past marketing efforts, demographics, and so forth. They analyze the data to turn it into information that supports all their marketing and sales programs. More enlightened marketing companies also use customer and prospect interests and preferences, generally gathered on their web site, to tailor marketing efforts right down to the individual level. Data-based marketing has long been in the domain of the Fortune 500 - companies that spend millions of dollars on their marketing efforts. It is now in the domain of smaller organizations with smaller budgets!