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. The Study - Qualitative Research 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) Main goal: To identify the issues that the industry should address

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

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