Introduction

The blend of tracking customers’ transactions, their financial status, profile characteristics and financial value to the company has now become the bedrock marketing model for many businesses and is being extended by the use of many more sources of personal data. Furthermore, the last 20 years or so have seen a number of significant developments that have fuelled this even further. This chapter explores some of these together with possible social implications arising from their implementation.

More specifically, the chapter is structured around four themes. First, the positive contribution of the data-informed marketing model to both business and consumers. Second, the increasing range of sources of data for this model together with their nature and uses in marketing. Then there is discussion of possible implications for business, individuals and society of the ways in which the model is – and might – be operationalised. Finally, recommendations are made with regard to how emerging issues of concern might be addressed.

The contribution of the data-informed marketing model to business (and consumers)

First, the nature of the data-informed marketing model is briefly outlined. The model represents a major shift from relatively anonymised targeting via mass media communications, to the identification and targeting of named individuals. This is based, in part, on the rationale that there can be fewer ‘missed targets’ if marketers concentrate on those who are either known to have an interest in their products and services or possess characteristics that match those who do. There are also potential advantages to consumers, some of whom might want to be treated as individuals, so the data-informed model can result in more individualised direct forms of customer–organisation interaction. It also affords convenience advantages for many consumers because they can save the time that would otherwise be spent searching bricks and mortar stores.

Contribution to ‘the bottom line’

Consider the following: a TV advertising campaign for a gardening product might use primetime slots between 7pm and 9pm for which the audience might be five million households. The 30-second advertisement might cost £50,000 for nationwide coverage, and if there are three repeated exposures per evening for a month, costs would be around £4.5 million plus production and payment of celebrity opinion formers, of, say, £½ million.