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Highlights the decision that must be made on balancing customer acquisition and retention and de-emphasizing the structural issues involved in administering the independent contractor sales force.

This is an MIT Sloan Management Review article. It's a marketer's dream--the ability to develop interactive relationships with individual customers. Technology, in the form of the database, is making this dream a reality. Now companies can keep track of customer preferences and tailor advertising and promotions to those needs. For instance, a grocery store system could note that you recently purchased a sample size of dishwashing detergent and could offer you a coupon to buy the large size. Explores the impact of this development on marketing practices and gives practical advice on designing a marketing database and staffing an interactive marketing department. Also addresses customer fears and the public debate over marketing and privacy.