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Direct Marketing and Personal Sales IMC TOPIC 5

Direct Marketing and Personal Sales IMC TOPIC 5. Chris Njunge Maksim Feofanov. Martin Evans ,  Maurice Patterson ,  Lisa O'Malley. The direct marketing-direct consumer gap: qualitative insights. Introduction: Consumers and DM. 1998 – over half of UK used phone for telebisiness (Transactions)

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Direct Marketing and Personal Sales IMC TOPIC 5

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  1. Direct Marketing and Personal Sales IMC TOPIC 5 Chris Njunge Maksim Feofanov

  2. Martin Evans, Maurice Patterson, Lisa O'Malley The direct marketing-direct consumer gap: qualitative insights

  3. Introduction:Consumers and DM • 1998 – over half of UK used phone for telebisiness (Transactions) • Now - Internet • Satisfaction with DM rate: • 1989 – 30% • 1995 – 45%

  4. Objectives: Investigation of changing consumer values Appropriateness of relationship marketing Consumer reaction to DM Methodology: Phase 1: Interview series (40). Phase 2: Phenomenological group discussions (9) The Study - Qualitative Research • Main goal: • To identify the issues that the industry should address

  5. Advantages: Convenience Greater product selection Disadvantages: Privacy concerns Control The StudyMajor issues uncovered

  6. The Study - Results • 1. Convenience: • Phone (Internet) vs. mail. • Phone (Internet) • More convenient • Speed (Immediate) • Reliability • Mail • Lack of time to read • Too much of it

  7. The Study - Results • Negative attitudes to overall DM volume increase: • Male 25-34 • General resistance/ ignorance: • Too much of it – doesn’t bother • No-response attitude – don’t sign up, don’t get on the list • Female 25-34 • Offensive, silly • Male 45-54 • Too much, overburden, slightly intimidating

  8. THE STUDY - Consumer perceptions • Positive:Form of discount, general convenience • DM gives information (Choice): • Informs about product variety, new products (Female, 25-34) • Reminds consumers of their needs: “Makes me want to try it”: (Woman 45-54) • Like if offers local services (Male 45-54) • Like if freebies (Male 18-24) • Negative: Control related, privacy • Can be more accurately targeted • Central data bank • Companies know everything you do • Trading of consumer information

  9. Poor targeting annoyance • Irrelevant targeting: • Content: (Both men and women) • Unsolicited offers • Improper target audience • Repetition of irrelevant offers • Women: • Color • Appeal

  10. Marketer’s Note • women and young men are more receptive, • men 25-34 less receptive, more ignorant, • men 45-54 – lowest reception, greater skepticism and negative attitude.

  11. Marketer’s note(Conclusion) • Relevance issues • Irrelevance effect– invasion of privacy concerns, control issue, • Consumer receptiveness effect (will pay less attention to mail offers if too much irrelevant). • Need for better targeting: • Interests (right offer), timeliness (right time), repetition, information processing effect • (create best ways for information to be processed better – visuals, content etc.) • More real offers vs. “traps” – “junk mail" effect • Control and privacy • Empower consumers to contact • Explanations about data collection and use • Control – internet

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