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What is email marketing?

I have read about email marketing as a profitable business but do not have much of an idea about it. Can anyone explain it to me please and how it is beneficial? How can email marketing be done easily? Please give me some suggestions on it, thanks in advance for any suggestions.
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1) A list of email addresses of people who are interested in the niche that you're operating in.
2) Products or services to sell to those people.
You can't just bombard people's email accounts with sales pitches though. You need to provide value to them also, in terms of information and advice.
Simon Dalley - http://www.growtraffic.co.uk
Reduced Time/Effort
Real Time Messages
Personalized Messages
Ability to segment customer info
More frequent communication
Ability to test marketing info prior to more expensive commitments
Ability to track sales & user engagement
-B
http://www.bburkeconsulting.com
http://www.aweber.com/easy-email.htm?id=451931
http://spaswank.com/aweber
http://www.sellingzeroesandones.com/getresponse