Branding and brand development through direct marketing in the consumer financial services sector: The role of direct marketing

DMIS (2000a) Financial Cards Sector Report finds that although there is recall for the highest volume brands and direct mail does make customers more likely to deal with the sender, consumers hold negative attitudes towards direct mail. While brand relevance is a key component of brand strength, consumers underestimate the difficulties for direct marketers of acquiring and maintaining high quality data and of targeting, and ‘do not think direct mail is hard to do’, with more than 50 per cent of respondents questioning the relevance of card mailings: ‘they do not think senders have made much effort to find out what they are interested in’.

This reveals a strategic deficiency in financial services direct marketing, namely a relational objective, which is advocated by many writers. Research supports the argument that there is a weak level of relationship marketing in financial cards direct marketing:

‘Card issuers cannot assume that direct mail will make consumers want to deal with them, or that it makes them feel valued.’

Although both the branding process itself and one of the objectives of direct marketing can be viewed from a relational perspective, it appears from the literature review as though little research, since Pearson (1996), has emerged on the branding process in DM or on how to develop branding effectively or to build brand commitment through direct marketing in specific sectors, such as financial services. Although volume and spend on DM by financial services providers is high, consumers neither recall many financial services brands mailed, nor feel valued by the DM senders.

AIMS

The aims of this research are threefold:

— The first aim is to identify key criteria used by direct marketing brand- building experts and DM practitioners (who are also experienced in the financial services DM) to judge effectiveness in building brand awareness and brand commitment through direct mail.

— The second aim is to analyse DM brand experts’ and DM agencies’ views of DM branding in the financial services sector against key components for building brand strength and against dimensions for developing a brand- customer relationship identified from the branding literature.

— The third aim is to discover to what extent there may be barriers, specific to the financial services sector, to successful branding and the development of brand commitment through direct marketing.

Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

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