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Direct Marketing

Direct Marketing

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MARKETING INTELLIGENCE & PLANNING 13,6

Direct marketing: rise and rise or rise and fall?
Martin Evans, Lisa O’Malley and Maurice Patterson Focuses on the growth and future direction of direct marketing from the point of view of “user” companies

Introduction
The direct marketing industry has been the fastest growing sector of marketing communications for more than a decade (Key Note, 1994). However, “it has not yet truly come of age as a medium” (Young, 1993), and for this reason it is difficult to define or quantify precisely. Exactly what constitutes direct marketing is still very much under debate. For example, many experts view direct response advertising as being an integral element of direct marketing, whereas Key Note excluded this in their estimates of industry value in 1994. Definitional difficulties occur because direct marketing is neither a medium (like direct mail) nor a channel of distribution (like mail order): “Rather it is a means of communication which encompasses both media and channels, and multi-media and multi-channels at that” (Young, 1993, p. 33). It has been traditionally defined as “an interactive system of marketing which uses one or more media to effect a measurable response and/or transaction at any location” (Squires, 1993, p. 40). This element of “measurable response” differentiates it from traditional advertising. Although still in the early stages of development, direct marketing spend within the EC is already in excess of $20 billion with the UK accounting for 12 per cent of this total (Mayes, 1993). The overall figure represents a growth of 8 per cent since 1990 alone. Different estimates of growth abound because of the diverse views as to what exactly constitutes direct marketing. For the purposes of this article we consider direct marketing to include: q direct mail; q direct response advertising; q telemarketing; q leaflet drops; q inserts;
Marketing Intelligence & Planning, Vol. 13 No. 6, 1995, pp. 16-23 © MCB University Press Limited, 0263-4503

samples; and q home shopping.
q

Although more developed in larger markets and by the most powerful manufacturers, direct marketing is also “the best placed tool to help small and medium-sized companies protect themselves from big companies with massive advertising budgets” (di Talamo, 1994, p. 261). It is as appropriate to a small highly-defined audience, as to a large segment of the population (Young, 1993, p. 31), and can be used internationally as well as within the domestic market. Indeed, di Talamo (1994) suggests that it could play a major role in opening up Europe for business. In order to contextualize the future direction of the industry, some of the reasons why so many companies are embracing direct marketing techniques are discussed. The article then reports on an empirical study of consumer reactions to being directly targeted. Such reaction could be of particular importance to the industry and may well determine its future success. Finally, advice is offered to companies currently involved in direct marketing (or about to embrace these techniques) as to how they can positively promote future industry growth and reduce the sort of consumer concerns identified in the empirical research. This is particularly important in view of the possibilities of greater restrictive legislation in the coming years.

Growth in direct marketing
The focus of this article is on the ability to target rather than the need to target. However, it is important to understand the context which facilitated the recent – and possible future – development of the industry, and therefore this will be briefly illustrated. A number of environmental factors have increased companies’ need for (or desire to) target consumers more effectively. These can be broadly categorized as changes in market behaviour, and companies’ increasing disillusionment with traditional marketing communications media.

1981. During the 1980s. Now transactions can take place. or personal contact (i. The relevance of individualism to the current context is that companies need to communicate with market segments in more individual and focused ways. Combined. Direct marketing has become more competitive Recession is in many ways responsible for growing concern among companies that marketing expenditure needed to show quantifiable returns (Uncles. the cost of advertising on television spiralled even though audiences were diminishing due to fragmentation and increased leisure interests. hobbies.. if compared with the cost of conventional media. One important development is the fragmentation of consumer markets which has increased the difficulties of communicating with customers through traditional channels. aimed at limited segments of consumers. appreciate and respond to being targeted with relevant and individualized marketing. In effect. In particular.DIRECT MARKETING: RISE AND RISE OR RISE AND FALL? 17 Changes in market behaviour A number of key issues have changed the structure of the consumer marketplace. ethnic origin. Evans and Blythe. Individualism has led to a proliferation of sub-groups or segments within society based on a variety of criteria – music taste. telephone or fax. Howlett (1993) estimates that less than 5 per cent of business-to-business marketers have proper evaluation systems. as well as the traditional demographic variables of age. one indictment of the industry is that there is little evidence of widespread evaluation of campaigns by companies. fashion taste. 25). these factors have significantly contributed to a reduction in the effectiveness of traditional media. radio and press has grown to the extent that “clutter” is a real problem. Direct marketing was able to accommodate this demand. Evans et al.e. little empirical evidence is sought by companies. has made database marketing extremely cost efficient. in that it is “the one communications discipline which not just claims to be accountable but which can really answer the question: how much did we actually sell as a result of this activity?” (Young. 1992). For example. Direct marketing is becoming relatively efficient. These niche markets. the increasing costs of traditional media have meant that direct marketing has become more competitive. 1993. Manufacturers must also take some responsibility for increasing fragmentation of markets. holding and using customer data. The ability to be measured by tracking response enquiries and sales from direct marketing campaigns is one of the benefits direct marketing has over other forms of promotion. sex and income. However. marketers need to find more direct methods of reaching consumers. manufacturers began to fragment markets as a means of obtaining growth. direct response can provide short-term incentives to bring about a purchase at the point of sale – in the home. Market fragmentation may be partly explained by an increasing trend towards individualism. This proliferation of products and segments has been further exacerbated by the phenomenal growth of retailers’ own brands. This. 1994). the move from transactions based only on cash to increased use of credit and debit cards has facilitated the growth of non-store retailing. interests and employment. In addition to being accountable. 1994). However. a salesman’s visit). During this period. Declining effectiveness of traditional media An increasing emphasis on leisure interests has led to more intense competition for consumers’ time and attention. At the same time. the empirical research indicated that “clutter” may also be emerging as an increasing problem among the more heavily targeted groups. the amount of advertising on TV. New. Companies began to demand accountablity. At the same time people may be more ready to accept. As many consumer products reached maturity in the late-1970s and early1980s. Changes in the way people shop is an aspect of market behaviour which greatly influenced the growth of direct marketing. 1994). p. TV’s share remained static at . As a consequence. 1994). 1988. as suggested by Payne (1993): The key dynamic which has most influenced thinking has been the cost of collecting. This would not be possible without widespread use of non-cash payment methods. Direct response advertising is particularly well placed to effect an immediate purchase from consumers from the comfort of their home. and the behaviour and expectations of consumers. It was no longer acceptable to be unaware of which half of the money spent on advertising was wasted. more specialized products were aimed at limited segments of consumers. religious beliefs. manufacturers “demassified the market” (Achenbaum. This suggests that. either via mail. A manifestation of such trends is that direct mail’s share of advertising spend moved from 7 per cent in 1988 to 11 per cent in 1992 (DMIS. although direct marketing has the potential to be accountable. 1994. have increased the wastage ratio in traditional advertising (Shine. Whereas traditional TV advertising was concerned with image building and providing information. In fact. The manifestation of such pluralism in society can easily be seen in the high street where there is greater diversity in styling than was the case 15 years or so ago. there is evidence to suggest that people are becoming more orientated to selfexpression and “inner direction” as opposed to following mass social movements (Evans.

For example. Technology provided the “means” by which consumers could be individually targeted. far more accurately. Furthermore. and therefore we can continue to expect databases to play a more strategic role in consumer marketing throughout the 1990s and beyond. This consecutive layering and linking of databases has greatly improved understanding and targeting of markets.e. electronic point of sale (EPoS) data can be downloaded daily. Indeed. 33). geodemographics with lifestyle databases (ACORN Lifestyle/CCN Chorus). for cross-selling. lifestyle and media habits.600 customer lists available on the market. Technology has clearly facilitated the analysis of census data into geodemographic clusters. However. However. 1992). p. which can identify the high value/frequent buyers. Provision of information Market research is the traditional method of collecting data on the market.600 customer lists available on the market Technology has developed sufficiently to allow the massaging and linking of databases – i. This can be seen in terms of provision of information and database utilization. The existing EPoS and electronic funds transfer at point of sale (EFTPoS) systems used by retailers enable them to record purchasing patterns. Thus. p. The latest development in this area is the introduction of smart cards on which vast amounts of information can be stored. via new methods. credit-worthiness and – increasingly – provide a scoring mechanism to decide what other products they might buy” (Payne. Companies are also developing their own in-house databases on existing customers and prospects. via store cards and. One possibility is that offers (at point of sale. new technology has improved the accuracy and ease of collecting more personalized consumer information. One estimate suggests that there are in excess of 3. The UK 1991 Census has provided updated versions of the various geodemographic systems and other databases. There has been phenomenal growth in the number and type of databases and lists being supplied. Some of the potentially most powerful databases originate from the Census data and comprise geodemographics. research technology has been developed to track the behaviour of individual customers. and for relationship building. they already have a great deal of information on their customers. 1992). or later through direct mail) can be made on occasions of special interest to the customer (such as birthdays) and new purchases can be added to the bank of information already held (Foenander. These can be generated from enquiries. people meters and home barcode readers can digitally record household media and buying habits in more detail than could the old-style set meters and panel diaries. and continues to drive growth and development within the industry. While market research in the form of surveys continues to be used. rather than asking a sample of consumers what they have bought. For example. 1993. 41). Retailers are currently introducing loyalty schemes. consumer panel research using set meters. or alternatively can be bought externally. recommendations and sales to the company. the need to communicate with consumers on an individual basis would simply have remained “an illusive dream” had there not occurred significant and opportune developments in technology. their profile. match special offers with individual consumers. with coupons for directly competing products being given together with till receipts at the point of sale. This information is already being used in supermarkets. Retail check-outs will have the ability to read some of this information and. allowing them to be profiled in terms of their demographics. Evans (1994) warns that this is leading to a twentieth century equivalent of the Domesday Book.6 28 per cent and the press share fell from 60 per cent to 55 per cent. although not as “smart” as smart cards. to give accurate and up-to-date information on actual purchases. On its own. Because of this there is a growing need to link and merge data to develop a greater understanding of patterns of response.18 MARKETING INTELLIGENCE & PLANNING 13. there is much concern among consumers. “even the best marketing database of current or past customers seldom holds the wide variety of data which needs to be used for analysis and selection purposes” (Squires. Database development and utilization Direct mail and telesales are dependent on a list or database of clients and prospects: “At the core of all these programmes is a database. information such as the personal details of the owner. factual data on purchasing behaviour is now being sourced. 1993. Competition among the providers of such information has also increased to such an extent that more aggressive marketing is being used to . as a consequence. previous purchases. There are in excess of 3. and even medical records. throughout the country. and even the Data Protection Registrar stated that because of increasingly sophisticated profiling there is a “grave danger that individual privacy will be whittled away” (Dwek. or geodemographics/lifestyle with in-house databases.

the profiles of the more heavily targeted groups are the same for both. More than likely. companies should be wary of this practice. However. 1990).and-a-half pieces every month (DMIS. If direct marketing continues to grow. aimed to examine consumer reactions towards receiving direct marketing and in particular to identify any perceived excessive targeting. This is being encouraged within the industry (Direct Response (UK). In particular. Further interesting findings include: q 67 per cent of respondents do not consider that direct communications provide information. However. However. industrywide research needs to be undertaken to identify nonresponders. Our study also confirms that the most highly targeted groups are ABs and those over 35. The empirical research These trends and events were taken as the context for an empirical research programme focusing on how consumers react to some of these developments[1]. companies must be careful not to replicate the same problems via new media. given that much direct communication is prospecting in nature. this is an important issue. the focus of the empirical research is limited to direct mail and telemarketing which is unsolicited by consumers.DIRECT MARKETING: RISE AND RISE OR RISE AND FALL? 19 attract user companies (Tonks. In the current climate of rapid expansion of levels of targeting. The empirical study. purchase in response to direct targeting. The implications of the findings for the future growth and direction of the direct marketing industry are then evaluated. Although actual levels are not quantified in our study. as list swapping can lead to abuse. over 35s and the “grey” market. q 95 per cent consider telemarketing to be unethical. q 47 per cent consider direct marketing to be an invasion of their privacy. that the trend towards individualism would lead us to expect consumers to welcome more and more individualized targeting. This is surprising given the high levels of targeting and low purchasing behaviour. and therefore it is necessary to distinguish for specific company/product offers into which categories consumers fall. The most significant (and expected) finding is that those respondents most frequently targeted are also most likely to consider their levels of targeting excessive. Attitudes towards direct marketing Using aggregate sample figures. the Royal Mail estimates that the average household receives six. and company-specific research to ensure the viability of the lists being used. this is encouraging for companies . 84 per cent of those over 55 considered their levels of targeting excessive. This is leading to growing “clutter” from direct communications to specific segments of the population – ABs. However. 1993). On this basis. The major issue to arise from this – and one which should be explored in future research – is whether people are simply not being targeted with interesting/ appropriate offers or whether there are people who will never purchase products or services (irrespective of how interesting the offer) in response to direct communications. and raises the profile of privacy concerns among consumers and legislators. non-responders will fall into both categories. for example. This may seem very low but. this aggregate figure disguises notable demographic differences. if ever. and q a further 71 per cent consider the sale of lists between companies to be unethical behaviour. and indicates that a great deal of communication from companies is inappropriate or of no interest to them. only 51 per cent of respondents consider their levels of targeting to be excessive. therefore. Companies also supplement existing customer/prospect data by “swapping” lists. Exposure to direct mail and telemarketing A total of 76 per cent of respondents claimed to receive individually targeted direct mail a few times per month. These responses signify a high degree of consumer concern over privacy issues and with the perceived unethical behaviour of direct marketing companies. and overuse of customer data. given that 89 per cent rarely. Given that direct marketing has been viewed as overcoming the “clutter” apparent in traditional media. This increases the levels of targeting of individual customers. in many respects. are consumers content to receive increasing amounts of individually targeted marketing communications? It could be argued. 1994). Financial services are the greatest source of mailings (52 per cent). This is important given that more and more companies (and charities) are attempting to communicate with the “grey” market via direct media. Purchasing behaviour via direct mail and telemarketing Only 11 per cent of the sample regularly purchase products and services as a result of unsolicited individually targeted direct marketing. only 14 per cent of respondents claimed to receive comparable levels of telemarketing. it does raise important questions about those who are being targeted. with household products (43 per cent) and charities (37 per cent) also being cited. Although other aspects of direct marketing are discussed within this article. q 76 per cent consider direct mail to be unethical. In contrast. misuse.

as a means of ordering (in-bound) or to clean and update the database (out-bound). empirically reported here. which surveyed 221 major European packaged-goods companies. In this respect. with 68 per cent opening and reading. inadvertently. It may be that the term will be lost altogether as “integrated marketing” continues to develop. cannot be ignored by proponents of direct marketing. 1993). However. There is also evidence of a rosy future for direct response TV. Key Note (1994) forecast that it is likely to outpace growth in total advertising expenditure in the future. 600). Such concerns are already the subject of an EU directive on data protection. direct marketing will become increasingly difficult to separate as integrated marketing approaches fuse media and marketing disciplines. In addition. The difference in response rates may be due to higher levels of incentivized responses in consumer campaigns – in fact. However. 1994). before computer based interactive response handling mechanisms. although marketers were aware of its potential in the early-1980s. 80 per cent of consumers open direct mail. Furthermore. direct marketing will have both the knowledge and capacity to become more intrusive. Extensive lobbying by the industry has led to some concessions within the second draft directive (di Talamo. the better it will be for all concerned.4 responses per annum. 1994). For example. 1989. it may be some time before a common widely-used definition of direct marketing exists. Of direct mail responses from the consumer. a company might use direct response advertising to build a client and prospect database. and by UK and European legislators. Although 87 per cent of mail sent is prospecting in nature (DMIS. which is significantly contributing to the perception of direct mail as “junk” mail. and will clearly be beneficial for the industry. will lead to more complex use of consumer-specific information. by British Telecom. Despite high levels of unsolicited targeting. However. and the more recent introduction of Mercury’s 0500 Freecall. and consumers will see a phenomenal reduction in unsolicited direct mail. significantly paved the way for direct response. The ability to capture actual purchasing behaviour. Direct marketing would be seen as having “lost its ‘Cinderella image’ of the early 1980s to be recognised as an important tool in the marketeers’ armoury in its own right” (Beaumont and Inglis. found that three-quarters of the respondents believed direct marketing to be of great importance. This has experienced exceptional growth in the last few years and. it is encouraging for companies to note that 56 per cent of UK adults responded to direct mail in 1993 with the average responsive person making 3. such as TV and press. and to merge and fuse several data sources. Rise? The other side of the future coin shows a distinctly rosey picture of growth. Key Note. while a similar proportion thought it would be of even more importance by 1997 (North. technology could also. herald their decline. as a result of greater use of direct response mechanisms. The ethical and privacy concerns. in-bound . There is evidence of a rosy future for direct response TV In future. Technology has facilitated the growth and development of the fledgling database and direct marketing industries thus far. On this basis. which might then be used for a direct mail campaign in the future. rather than “cold” prospecting. The sooner marketers move to using direct mail in response to customers’ requests. however there is a continual threat of additional restrictive legislation. This will lead to more true “relationships” between marketer and consumer and will probably significantly alleviate privacy concerns among consumers and legislators. The average response rates to consumer campaigns was 9 per cent compared to 6. responses to prize draw campaigns achieved an average response rate of 13 per cent. 1994). encouraged increased use by advertisers and promoted acceptance among consumers (Young. Future: uncertain Fall? The use of consumer data for direct marketing purposes is clearly becoming more widespread. In terms of the former. important developments in telephone services and direct response technology has improved efficiency and reduced costs significantly. A 1992 study initiated by the International Direct Marketing Network (IDMN). however.6 These concerns are also being raised by consumer associations both here and throughout Europe. p. it is likely that manufacturers and retailers will see an increase in requests for direct communications. 1993). This growth is predicted to continue into the twenty-first century. of 0800 and 0345 numbers in 1985. there is a trend towards smaller mailings – as a result of better targeting – and this may to some extent begin to alleviate problems of perceived excessive targeting. the introduction. 47 per cent are to buy goods or order a service (Key Note.20 MARKETING INTELLIGENCE & PLANNING 13.6 per cent for business-to-business in 1993 (DMIS. the high costs of operating such a scheme prohibited its extensive use. Telemarketing may be used as a follow-up. 1994). 1994. Marketers will be able to target more accurately and more effectively. The more widespread acceptance of direct marketing techniques by both marketers and consumers has.

On these bases. . this medium is clearly set to grow. Furthermore. however. Self-regulation implies that industry members adhere to specific codes of practice. their customers and legislators as more sophisticated technology develops (Fletcher and Peters. reduce the threat of further restrictive legislation. In support of more widespread utilization. the Data Gatherers and Response Handlers (DAGAR) group formed in 1994 will only supply fulfilment and response services for advertising which meets the code. the UK is considered to be the most successful – perhaps because of the Advertising Standards Authority’s (ASA) experience and success as an independent regulator for more than 30 years. The main function of the DMSSB is to administer an accreditation scheme for all types of supplier within the direct mail arena. depending on the size and rate of response. be some restrictions to the growth of direct response media due to a scarcity of callhandling bureaux capable of dealing with large response rates (Cobb. there will be more scope for reaching tightly-defined audiences at highly competitive rates. but also from those who seek such services. The Direct Mail Services Standards Board (DMSSB) was set up in 1983. new authorities and codes of practice have been implemented over the last ten years or so. the shopping channel. they are required to pay a levy on advertising mail. q Direct response mechanisms may increase the demand for direct communications. Similarly. particularly in highly targeted groups. Applicants must abide by British Code of Advertising Practice (BCAP) and other relevant codes. and integrated marketing will be the likely result. is already available within the UK. In order to promote the spirit of self-regulation. however. and generally further the interests of the industry. the industry throughout the EU has responded through increased lobbying and by attempts to police itself. QVC. Given the developmental nature of the direct marketing industry. Criteria for recognition are stringent. 1994). clearly making the medium more accessible to companies with smaller budgets. and identifies the more common problems breaching the relevant codes. Key Note (1994) estimate that direct response TV commercials accounted for 15 per cent of all 1993 advertising minutes in the UK. and has paved the way for further industry growth. q “Clutter” is likely to grow. Titford (1994) provides a more detailed description of the roles of all self-regulatory bodies. The handbook of registered agencies is freely available and should be consulted by advertisers Guarding the future A number of issues are likely to be of continued importance for the industry. not just from those who provide direct marketing services. providing protection for consumers to the satisfaction of regulators in both the UK and Europe. and only work for clients who do likewise. companies involved in direct marketing should adhere to the following guidelines: q If running a campaign using an external agency. and funds the Mailing Preference Service[2]. In addition. There will be more scope for reaching tightly-defined audiences In terms of the actual levels of utilization of this medium. 1994). 1993). TGI found that nearly 35 per cent of their representative sample of the UK population had made telephone calls as a result of advertisements seen on TV and in the papers over the previous 12 months (Young. Between 1989 and 1992 the percentage of press and TV advertising revenue for which direct marketers were responsible rose 10 per cent to 28 per cent (Coad. 1993). only use companies recognized by the DMSSB. with the objective of “maintaining and enhancing the highest standards of practice in the directmail services industry and direct mail generally” (Titford. the UK List and Database Suppliers (LADS) group will refuse to provide mailing lists for any advertising or promotions which breach the codes.DIRECT MARKETING: RISE AND RISE OR RISE AND FALL? 21 calls using freephone numbers and trained operators cost between £1 and £3 each. Technology has halved these costs. The long-term success of the industry. These include: q Increased concern over privacy and ethical issues for companies. This supports ASA’s work overseeing direct marketing complaints. With widespread predictions that more commercial airtime will become available over the next few years (through satellite and cable). In terms of this policy of self-regulation. an established trading record has to be demonstrated along with evidence of financial probity. As far as the ethical/privacy issue is concerned. q More widespread and thorough campaign evaluation is likely to occur in future. will be based on the continued support. up from 10 per cent in 1991. There may. Such schemes have been seen to work effectively. alleviate consumer concerns over privacy. 1994).

and Inglis. p. (1981). Vol. “In search of new blood”. This growth is set to continue. 1994) and in any case contravene the Market Research Society’s Code of Conduct. A structured non-probability sample approach was adopted. pp. T. Notes 1. ensure that the mailing preference and telephone preference lists are consulted regularly. Direct Response (UK) (1993). 21 No. the cost-effective opportunity for direct marketing has increased. p. Never use the telephone book for indiscriminate cold calling. based on personal interviews with over 500 consumers with reference to age. (1989). both consumers and companies will need to be better educated as to what is acceptable and what is not acceptable. SSRC. Cardiff. R. (1992). 33). Cobb. However. 16. (1993).000. combined with increasing fragmentation of markets and a subsequent decline in the effectiveness of traditional advertising media. as it becomes more widely accepted “its very breadth means that it appeals to a wide segment of users in a variety of ways” (Young. pp. “The advertising environment of the nineties. 21 October. 2. European Journal of Marketing. Do not. Conclusion As the relative cost of computer databases. London. . “Geodemographics in practice: developments in Britain and Europe”. Part 5. 587-604. 27. the most heavily targeted groups – ABs. Better information should lead to improved targeting and therefore less junk mail. Coad. “Variations on a theme”. Vol. 44-8. Members of the DMA are required to comply with the wishes of people on that list not to receive unsolicited mailings. as highlighted by this empirical research. 23 No. Given that the direct marketing industry is still relatively young. over 35s and the “grey” market – exhibit the highest levels of concern. pp. more detailed information on consumers. Journal of Database Marketing. Regularly clean and update your own internal databases. but also in terms of consumer responses and attitudes. trade bodies and the Consumers Association. honest and truthful.A. “High tech’s threat to privacy”. MEG research seminar. 2. A. gender. Monitor and evaluate campaigns. If in doubt. self-regulation requires that all companies involved in using direct marketing adhere to the established codes of practice. in the future. “Consumer behaviour toward fashion”. Such practices serve to undermine both the market research and database industries in the long run (Fletcher and Peters. will further erode individual privacy. (1994).22 MARKETING INTELLIGENCE & PLANNING 13. p. traditionally averse to such approaches. London. (1993). pp. The consumer concerns over privacy and ethical issues. Environment and Planning A. Evans’ (1994) concerns of the Domesday scenario may become a reality.g. However. 33-6. 32-44. consult the DMSSB. Marketing. 16 September. M. profiling. (1988). To this end. particularly in terms of telemarketing and direct response advertising. Lincoln Centre. Vol. Legislation is unlikely to solve this problem. Marketing. At present. M. 27 April. 1 No. report the offending company to the DMSSB.J. the American regional managers meeting”. 1994. pp. cold call or mail consumers who have registered their wish not to receive unsolicited marketing communications. Marketing. 36. This. Evans. K. as a result of References Achenbaum. J. and social grade in several UK cities (Manchester. The Mailing Preference Service (MPS) is an independent body supported by the Royal Mail. laser printers and other technology needed in direct marketing has fallen. they are likely to become more prevalent as the sophistication of database targeting increases. are real. not just in terms of response rates and cost per 1. “Response and reaction”. May. Portsmouth and London). N. 23 July. (1992).R. Beaumont. Do not sell or swap lists without first ensuring that proposed campaigns meet the BCAP requirements of being legal. under any circumstances. If you receive such calls yourself. Rather than being alleviated. R. di Talamo. we will see many companies. Direct Mail Information Services (DMIS) Report (1993). Direct Response (UK). indeed many view more restrictive legislation as exacerbating an already tense situation. University of Strathclyde. 141) and therefore may serve consumers better in the longer term. The success of self-regulation will also be dependent on consumers using the facilities provided to them (e. If internal direct mail or telemarketing campaigns are being undertaken. Do not attempt to sell to consumers either via mail or telephone under the guise of market research. Self-regulation “goes beyond the minimum requirements of legislation and has to be adhered to in spirit as well as to the letter” (Titford. “Protecting data from protection”. MPS and TPS) and registering complaints on offending companies.6 q q q q q seeking to use third-party services to produce their direct marketing campaigns. Evans. 254-64. Direct Mail Information Services (DMIS) Report (1994). moving into the direct marketing arena in the future. “Dedicated follower of fashion”. 1993. In this respect. Dwek.J. has led to massive growth in the direct marketing industry. p. 3. decent.

G. Uncles. Hampshire. 2 No. . Vol. Journal of Marketing Management. pp. “Euro spend for direct marketing climbs to top £20bn”. “Consumer companies take direct stance”. Vol. pp. Precision Marketing. Vol. (1993). 24-5. 1 No. “Domesday marketing”. 13-22. “Old customers: interesting new profits – how to grasp the dynamics of customer service marketing”. 55-9. 2. R. P. (1993). Evans. 141-50. working paper at Strathclyde Graduate Business School. Blythe. p. 2. Journal of Targeting. pp. (1994). pp. (1994). 105-14. 25-33. 2 No. “The use of databases in customer information management and their impact upon the market research industry”. Business Marketing Digest. Vol. M. “A practical man’s guide to direct marketing”. Marketing Intelligence and Planning. Titford. pp. D.J. (1990). “Self regulation in direct marketing”. “Direct response television”. L. London. and Peters. 335-50. Journal of Targeting. UK. M. Martin Evans is Professor of Marketing at the University of Portsmouth. Pontypridd. Proceedings of the Marketing Education Group Conference. Squires. M. “The use of targeting by consumer packaged goods/fast moving consumer goods companies”. (1994). and Blythe. B. Key Note (1994). 5. 6. D. “A new paradigm of consumer behaviour”.DIRECT MARKETING: RISE AND RISE OR RISE AND FALL? 23 Evans. Fletcher. J. (1994). pp. “Translating data into European opportunities”. July/August. Mayes. 229-37. M. 18 No. Tonks. 4. “Do you or your customers need a loyalty scheme?”. (1994). and Fahey. 8 Part 2. (1993). Evans. 2 No. pp. Young. (1993). July/August. July/August. in Bell et al. Southsea. Shine. Journal of Database Marketing. and Lisa O’Malley and Maurice Patterson are both Lecturers in Marketing at the University of Glamorgan. Vol. Journal of Targeting. Unity in Diversity. J. (1993). Payne. Vol. T. S. 18 No. Admap. (1994). Foenander. Marketing. University of Ulster. 3. Admap. pp. (1992). North. (1994). Measurement and Analysis. Direct Report. 125-38. Howlett. D. “Fashion buying behaviour and the new social paradigm”. August. Journal of Consumer Studies and Home Economics. (1993). Measurement and Analysis.. Scotland. August. M. N. “The use of smart card technology for target marketing in the retail sector”. pp. (Eds). pp. “Pinning down geodemographics”. Admap.J. Vol. Journal of Targeting. pp. K. 10 No. 2. Vol. Young. 20 May. 2 No. Key Note. 40-1. Mid Glamorgan. (1994). Measurement and Analysis for Marketing. UK. “The geography of direct marketing: getting better answers to ‘who and how and what?’ in terms of where?”.J. 35-7. 1. Measurement and Analysis. M. 1. 409-31. pp. pp. J. Vol. 4-10.

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