Direct Marketing in the Financial Services Industry

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Journal of MarketingManagement 1994,10 377-390

s Thwaites and irect M arket ingin theSharonC.I. Lee Financial Serv ices Indu strySchool of Business and jj^.^ ^^^.^^ presents empirical rese rch findings on the use ofEconom ic Studies direct marketing by arepresentative sampleofU K financialser-University of Leeds vices institutions. A number of similarities and differences be-

UK tween banks building societies and insurance companiesareidentifiedinrelation to direct marketing program mes and the useof particular direct marketing techniques. While acknowledgingsome exceptions theresearch concludes that there isscopefor agreater appreciationof the strategic valueandworkings ofdirectmarketing. Institutions could usefully focus attention on achiev-ing fuller integration of direct marketing w ith other m arketing ndcomm unication activities and securing improvements in testingd t b se quality and timing.

ntroductionMost businesses operate in complex and competitive environments wherede-m and s are constantly changing an d increasing levelsofresources and man agem entattention arefocused on attracting and retaining customers. This situationpro-moted themarketing concept which Kotler (1988) describesas thedetermination,and subsequent satisfaction, of customer needs and wants more efficiently andeffectively than one's competitors. Marketing represents theinstrument throughwhich this satisfaction has been deliveredand hasshow n rapid g rowth overthepast decade.While marketing approac hes basedonmass comm unication, with general adver-tising and promotion directed toamass m arket, have beeninevide nce. Bird (1989)considers that media fragmentation has reduced the effectiveness ofthis approach .As markets break down into heterogeneous segments a more precisely targetedmarketing technique is required which createsa dialogue with smaller groupsofcustomers,andaddresses individual need s. This situation, coupled w ith ch angingdemographics and lifestyles, decreasing data processing costs and escalating mediaand sales force costs,hascontributed to thegrowth of direct marketing (Holderand Owen-Jones 1992). Employed alongside other advertising and promotionactivities, direct marketing cancreate and reinforce brand awareness, maintaincustomer loyalty and sell goodsand services directly. Consequently, it notonlyfulfilsaprom otion role with in the mix bu t serves as a distributive function. Itis th isfunctional plurality which makes direct marketingan extremely potent marketingtool.

Despite the rapid growth of direct marketing the academic literature remainsundeveloped and little empirical workhasbeen u nde rtake n. This paper seeksin


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8 DesThwaites and haronC I Lee

sector where direct marketing has gro w n significantly, particularly since198Financial institutionsnowrepresent someof the major usersof direct marketintechniquesin theUK (Jefkins 1990).

irect MarketingThe US Direct Marketing Association describes direct marketingas aninteractivsystemofmarketing which uses oneormo re advertising mediatoeffectameasuable response and/or transactionatany location . Basedonthis definition Roberand Berger (1989) highlightthe keyelemen ts which contributeto theeffectiveneof direct marketinganddistinguishitfrom general m arketing.

Firstly, direct marketingisinteractiveinthatthecompanyandprospectivecutomer engage in two-way personalized communication. It represents a dialogurather than a monologue. Responses, or even non-responses, provide valuabinformation and can beusedtobuildaprofileof theindividual.Forexample,thcompanycandetermine the specific communication which generated a respons(e.g. direct mail, TV direct respon se)and thechannel through whichtheresponswas directed (e.g. mail coupon, freephone 0800 num ber). Conversely a nonresponse, while raising questions about the product offer, mayalso raise dou babout media, timing etc. This information is added to the company databasewhich aids planningandensures more focused campaignsin thefuture.Aneffetive database will triggertheright com mun ication to the right target customerathe right time, through theright m edium, thereby enhancingthecustomer'speceived value (Woodcock 1992). Muchofthis activityisinvisibletocompetitors,trait less apparentinmass m arketing.

A second feature of direct marketing is that thecommunication and respons(transaction) can take placeatany location, prov iding the pro spec t has access tothcommunication medium. It follows that direct marketing communications catranscend geographic boundariesandappeal toorganizations seeking toexpanintonewlocations.A third positive aspectofdirect m arketingisthatit ismeasurableandaccounable. Measures of effectiveness, suchas business generated and response rateallow organizations toassess thereturn on their investment thereby influencinbudgetingand future media selection. This contrasts with general marketingapproaches which use less informative surrogates suchasawarenessorrecall.Direct Marketing also exhibits several other specific co m petencies the m ost strikin g of which is thecapacity for precise targeting (Roberts and Berger 1989).Iaddition, it is highly controllable in terms of timing, message and creativitythereby allowing complex customized messagesto betransmitted. Furthermore,canbe the subject of exhaustive testing to establish which media, offer, priceincentive, creative, timing, etc.aremost a pprop riateto agiven target segm ent a ncam paign (Bird 1989).


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Direct Marketing 79

Figure 1 summ arizes the key distinctions betwe en g eneral marketing a nd directmarketing.

General Marketing Direct MarketingReaches a mass audience through mass media Com munica tes directly with the customer orprospectComm unications are impersonal Can personalise comm unicationsBy name/titleVariable messagesPromotional program mes are highly visible Promotional program mes (especially tests)relatively invisibleAm ount of promotion controlled by size of Size of budg et can be determ ined by success ofbudget promotionDesired action either Specific action always requ ired:Unclear InquiryDelayed PurchaseIncomplete/sample data for decision-making Com prehensive database drives marke tingpurposes programmesSales call reportsMarketing researchAnalysis conducted at the segm ent level Analysis condu cted at individual/firm levelUse surrogate variable to measure effectiveness Measurable, and therefore highly controllableAdvertising awa renessIntention to buy

Source Roberts and Berger (1989)Figure 1 Key distinctions between general and direct marketingWhile there are positive benefits to be derived from direct marketing theapproach is not without its critics, for example, telemarketing has developed a poorimage and can be seen as intrusive. Ho wev er, th e major com plaints revolve a roun dbadly timed and imprecisely targeted direct mail, kn ow n colloquially as jun kmail . In an attempt to reduce costs m any o rganizations take advan tage of regularcustom er m ailings to include othe r offers aim ed at ups elling or cross-selling. Whilethis strategy reduces costs its effectiveness is open to question as the communi-

cation arrives at a time determined by the organization and is probably unrelated tothe target customer's p urcha se cycle.The use of out of date or inaccurate lists has exacerbated criticism of direct mail inparticular and caused irritation to potential customers. Cobb (1992) highlights thedifficulty and expense of maintaining accurate lists and suggests that changes in acustomer list may run at approximately 9% per annum while business lists canreach 30% per annum. Identifying the most appropriate list is far from easy as, forexample, some 26 lists of Marketing Directors are on offer. While there are poten-tial problems with some direct marketing techniques managers must reduce these

to a minimum as the alienation of potential or existing customers is clearly not intheir interests.


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380 DesThw aites andSharon C I Lee

several decision variablestodevelopan effective campaign.The aim is toprovidthe right p roduct (OFFER)tothe right p erson (LIST)atthe rig ht tim e (TIMING)imanner which transforms attention into interest, desire, conviction and actio(CREATIVE). Several auth ors h ave c om me ntedon therelative impo rtanceoftheselements and there is general agreement that the list liesat the heart of direcmarketing by virtue of its role in defining the target customer. As Bird (1989suggests the most wo nderful mailing is unlikely to succeed if it goesto twrong target, whereas the worst mailingmaysucceed if it hits the right lisTimingandoffer aresimilarin importanceand rank secondto thelistbutabovcreative (Bird 1989; RobertsandBerger 1989; Woodcock 1992).

Direct Ma rketing ctivity and MethodsDirect marketing expenditure in Europe during 1992 rose to 20.76bn. basedoestimatesby theEuropean Direct Marketing Association reportedinMayes (1993)This representsanincreaseof8% over 1990 figures. S pen dingin theUK also rosto 2.56bn; divided b etween direct advertising 1.42bn, m ailings 1.04bnandtelemarketing/others 108m.The UK total represents 12%of European spendingaplacestheUK thirdin theexpen diture league behind German y (37%)andFranc(19%).This trendinthe growthofdirect marke tinginthe UK seemsset tocontinubased on a recent DunnHumby Associates (1993) survey which shows 67 companies planningtoincrease spe ndin g w ith only 7% cutting back.

Table4highhghtsarangeof media whicharecommonly usedas thebasisfdirect marketing programmes. While tbe various media can be used independently, Roman (1988) strongly advocates integrated direct marketing.Thelogicusing multiple media is that different consumers respond in different ways togiven stimulus.Bytesting combinationsofmediathemost productiveand profitable blend can be established. Effectiveness is not, therefore, a function of thnumberofmedia u sedbut of thecoordinationofthose whicharenecessary.

irect Marketing in the Financial Services IndustryThe financial services sectorhas experienced significant demand and supply sidchanges over the last decade culminating in the removal of traditional linesdemarcation between institutionsand greater competition acrossa wider producrange. These developments are well documented in agrowing bodyof literatur(Lewis 1984; Thwa ites 1989; EdgettandThwa ites 1990; Enn ew tal 1990; Thwaite1991; McGoldrick and Greenland 1992). Specific attention has focused on tbincreasing roleof marketing, bothat aconceptualand process level (Easingwoodand Arnott 1991; Thw aites and Lynch 1992), innovation (Moutinho and Meidan1989;Thwaites 1992) and strategies for coping with a more hostile environmen(Ennewetal 1990; Thw aitesandGlaister 1992).


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applications which are particularly valuable to financial services suppliers (Martin1991):lead generation for sales force;generation of retail traffic; keeping customers sold on product/service; cross-selling to existing cus tom ers; up-selling current an d n ew produ cts to existing customers;direct selling of new products.Rapid technological developments in the financial services sector have providedtime and place utility and reduce d th e need for custom ers to go into their branch toundertake transactions. Consequently sales opportunities have diminished. It is

here that direct marketing can provide the comm unication med ium th roug h whichmeaningful long-term customer relationships can be developed. Direct marketingalso offers scope for the removal of specific activities from the branch network to acentral location and provides an effective market entry mechanism for non-traditional financial institutions. As financial services institutions seek to generatemore profit per customer, while providing bespoke rather than standardized ser-vices, direct marketing may prove to be the most cost-effective way of developingand sustaining the relationship.

revious ResearchLittle attention has focused on direct marketing activities in the financial servicessector during the past decade, althou gh three studies do provide valuable insights.PA Management Consultants (1983) suggested that financial institutions (retailbanks, building societies and insurance companies) could exploit direct marketingmore fully. The techniques were very much in their infancy and would beenhanced through the development of more coherent strategies, and the acqui-sition of more information about customers and non-customers to improve target-ing. Testing also required significantly greater attention. No doubt one of thecontributory factors to poor targeting was the traditional approach to databasedevelopment which focused on account numbers. Consequently it was difficult toestablish a precise customer relationship. Eighty-eight per cent of the institutionssurveyed had experience of direct ma rketing altho ugh 75 of these we re mak inglimited u se of its full po tential. D irect mail was the m ost po pu lar m edia, followedby direct response coupons and inserts. The retail banks were the most sophisti-cated users of direct marketing although even this group had scope for muchgreater exploitation of the medium.

A more favourable p icture eme rged in 1986. Firth (1986) revea led tha t 89 ofban ks and 97 of building societies we re using direct ma rketing compared to only


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developments although more insurance/life companies had ado pted directema rketing (78 ).Ofparticular interest w as the fact th at almost 60 ofinstitutionhad established an in-house direct marketing department compared to less tha30 in 1986. Problems encountered varied across institutionsbuttherewascleevidenceofcreative co nstraints asadirect implicationofthe Financial Services A(1986). Nevertheless,thesurvey suggested high levelsofgrow th acrossallsectoover the coming 5 years.

Objectives and ethodologyBoth anecdotal and empirical evidence suggests that direct marketing inthe finacial services sector escalated following legislative changes in 1986 when deregulation led to increasing competition. It is reasonable to postulate that the morhostile environmentofthe 1990s will facilitate its con tinue d growth. Ho we ver,it irecognized that thelevelsofusagemaydiffer intermsof an institution's primbusiness activity, size,orexperienceof direct marketing.It is also suggested thmore firms will come to realize the strategic potential of direct marketing asoppos ed to viewing it as merely a tactical ma rketing tool. M ore sophistication couldbe expectedinrelation to direct m arketing cam paigns w ith specific reference to thtypeof media used, segmentation andtargeting techniques, evaluation me thodand the organizationofprogram mes either by specialist agencies, general adv etising com paniesorin-house dep artm ents. This stud y will, therefore, add to thedeveloping literatureon direct marketingbyheighteningourapp reciationof theuse and applications of these techniques by a range of financial services insttutions.

Following a comprehensive review of the literature, a questionnaire wasprepared, tested and subsequently mailedtothe C hief M arketing E xecutiveat16financial services institutionsin early 1992. The sampleof15 ban ks comp risedallthe major clearing, savingsandregional ban ksinEnglandand Scotland listedinthe City Directory, 1991.Allbuilding societies listed in the Building SocietieAssociation DirectoryofM em bers, 1991andstill opera tingin1992 were contacte(n=94). The sampleof5 insurance companies was draw nbyquota accordingtoclassofbusin ess (long-termorgeneral). Martin (1991) indicates that approxim atel25 ofall insuran ce com panies areinlong term bu siness, 64 ingeneral b usinesand the rest, composite. The sample is, therefore,arepre senta tive cross section othe major playersin theinsurance sector, basedon the1991 listingof theA ssocationofBritish Insu rers.

The natureofthe sampleoffinancial institutions closely resembles thatofFirtand Lindsay (1989) although a greater number of smaller building societiesarepresent. In certain cases similar questions have been included to facilitate moraccurate assessment of trends and developments and provide consistency ofmeasurement. The questionnaire containsarangeofdicho tom ous, multiple choic


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ResultsInspection of the responses to the postal survey indicate that 75% of financialservices institutions are involved in direct marketing activities (Table 1). Sixty-fiveper cent of these firms have only introduced direct marketing since 1986, whichconfirms the view that the techniques came of age following deregulation andincreased coriipetition in the mid 1980s.Table 1 Direct marketing activity

BanksBuilding societiesInsurance companie sTota l

Responses135339

10 5

Percentageresponse rate86-756-476-56 5 6

Number usingdirect marketing11383079

ercentage usingdirect marketing84-671-77 6 975-2

Am ong those institutions n ot using direct marketing at the time of the study 29%suggest it will be introduced in the near future. The major reasons given for notusing di rect market ing are not considered to be cost effective(44%), lack of requirement(28%) an dno perceived benefit(24%). This implies som e degre e of ignorance as to theworkings and applications of direct marketing. No differences are revealed be-tween the institutional groups o n qu estions relating to w heth er direct marketing isused or wh en it was first introduc ed.

Budget AllocationThe research suggests the distribution of direct marketing spend differs betweenfinancial ins titutions (P < 0.01). Seven ty-three per cent of ban ks s pen d in excess of1 million com pared to43% of insurance companies and 16% of building societies(Table 2). This does not automatically indicate a reduced commitment to directmarketing by either building societies or insurance companies but is to some extenta function of size. Indeed a positive association between asset size and budgetspend was identified r = 0.71,P


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Integration of Direct Marketing ActivitiesDespite the strong support in the literature for the effective integration of directmarketing with other marketing and communication activities this study confirmsearlier observations (Firth and Lindsay 1989) that financial services institutions stillhave some w ay to go in securing a de quate levels of integration (Table 3). This maysuggest that in some institutions direct marketing is considered as an ind ep en dentactical weapon to be utilized in response to particular situations, for examplechanges in interest rates, tax or pension laws.Table3 Integration of direct ma rketing activitiesDirect marketing integrated with Banks Buildingsocieties Insurance companies n =10) {n =36) {n =27)Above the line adv ertisin g 5-2 4-4 3-2Sales promo tion at point of sale 5 2 4 5 3 2Public re la t ions 2 7 4 4 2^5Figures represent a mean score based on a seven-point sca le .1 = never integra ted, 7 = fully in tegra te d.P < 0.05 in all cases.

A similar picture em erges in relation to the integration of different direct m arket-ing media. Only65%of institutions seek synergys from integration. The banks arehowever, much more effective in this regard with all but one of their numberseeking integration. The extent to which institutions integrate aspects of theirdirect marketing app ears to increase in line with the size of their budget (P < 0.05)which is itself related to the size of the organization, and the length of experiencewith the medium (P < 0.01).

Direct Marketing MethodsTable 4 identifies the different direct marketing methods used and highlightschanges since the 1989 study conducted by Firth and Lindsay. The data clearlyillustrate increased usage across the full range of methods.Table4 Use of direct marketing methodsMethod

Direct mailLeaflet insertsIn-house piggybacks

ercentage of institutions using theapproach1989 1992Fir th an d Lindsay This s tud y n = 70)976760

( = 77)978578

Pe rcentage inc rea se

02730


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Direct mail is extensively used and retains its position as the most popularme thod of direct ma rketing . The increasing use of leaflet inserts identified by Firthand Lindsay (1989) has continued and indeed escalated. This is largely due totighter advertising regulations brought about by the Financial Services Act (1986)whereby more detailed information must be given in relation to financial products.The most dramatic growth is in telemarketing, which offers a range of benefits interms of building and maintaining data bases, developing and updating lists,market measurement and testing, generating retail traffic, direct selling and cus-tomer care programmes. It provides a facility whereby elements of the directmarketing campaign can be integrated and indeed 81 of those institutions thatclaim they integrate aspects of their direct marketing cite telemarketing as themajor facilitating mechanism. The three institutional groups are relatively similarin their preference for particular methods of direct marketing. Only in the area ofoff-the-page adve rtising are real differences appa ren t. W hile91 of banks and 89of building societies adop t this approa ch only52 of insuran ce comp anies find it ofvalue (P < 0.0001). The complexity of many insurance and pension products,coupled with the disclosure ne cessary u nd er the Financial Services Act (1986), mayhave encouraged a move to leaflet inserts. Off-the-page is now used mainly togenerate leads, qualify prospects, encourage requests for more information and tosell produ cts which do not require long and complex exp lanations.

Segmentation and TargetingThe data presented in Table 5 indicate that a majority of financial services insti-tutions are heavily reliant on customer files, reflecting a high degree of cross andup-selling to existing custom ers. Ho weve r, 59 of respo nd ents admit that theirfiles are still account-based rather than customer-based. This inevitably presentsdifficulties in the development of meaningful customer relationships.

Table 5 Use of segmentation and targetingmethodsMethodCustomer fileAcornMosaicSocio-economicPinpointSuperprofits

Institutions using the ppro chNumber742618157

6

Percentage953323199

8Note: Some institutions use a variety of methods.

Of the geodemographic systems Acorn and Mosaic are the most popular with33 and 23 of institutions adopting the m . It is interesting to note the app arentdemise of socio-economic groupings in favour of more sophisticated techniques.


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Organ ization of irect Ma rketingThe research reveals tha t79%of institutions em ploy the services of specialist direcmarketing agencies rather than relying on their advertising agency. This represe ntsa significant change relative to the 53% revealed in Firth and Lindsay (1989). Thebanks (100%) and insurance companies (92%) invariably use specialist agenciesalthough this trend is much weaker in building societies at only 59% (P < 0.01).The major benefits attribu ted to specialist agencies are their experience in the u se ofa variety of direct marketing methods and creative and copy writing skills. There isno evidence to suggest that the use of direct marketing specialists is influenced byexperience in the use of direct marketing although institutions with larger budgetsare more inclined to use specialist agencies (P < 0.0001).The trend to create in-house direct ma rketing departm en ts identified in Firth andLindsay (1989) is maintained and 67% of institutions confirm their existence. Thisdevelopment is particularly strong amongst insurance companies (83%). Thepresence of a relationship between budget spend and an in-house facility is alsoapparent (P < 0.0001). Ninety-two per cent of those institutions spending in excessof 100,000 have their own direct marketing department. Given the link betweenorganization size and budget spend it is perhaps not surprising that the buildingsocieties are less inclined to create their own departments or use specialist directmarketing agencies.

Testing of irect Ma rketing MaterialsAs Bird (1989) em pha sizes testin g is the kernal of direct m arketin g . Unfortu-nately many financial services institutions are slow in heeding the message withonly 50% of respondents claiming to carry out this activity. No differences areevident betwe en the three groups in the extent to which they test. Interestingly theinstitutions that claim better response rates are those that employ pretesting ofdirect marketing materials (P < 0.001). Personalization of materials does notproduce evidence of improved responses.

Role of irect Ma rketingRespondents were asked to rank six roles of direct marketing commonly quoted inthe literature (Table 6). Direct ma rketin g's m ost valuable co ntribution is in relationto cross-selling, although trading-up and generating leads for the sales force alsoscore highly. Looking at the different institutions, the banks place greater empha-sis on direct marketing for cross-selling and encouraging existing customers totrade-up. They are less convinced of its ability to keep customers sold on services,selling to new prospects and lead generation.


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Table 6 M ost valuable role of direct ma rketingRoleLead generation for sales forceGeneration of retail traffic

ank orderofimportance1st2 1 '

(28)6(8)Keeping the custom er sold on service 11

Cross-sellingTrading-upSelling to new prospects

(15)34(44)19(24)10(13)

2 n d8

(11)7(10)12(16)24(31)15(19)10(13)

3rd8

(11)4(6)15(20)8(10)26(33)7(9)

4 th11

(15)11(15)2 6(35)6(8)9(12)15(19)

5th2 1

(28)15(21)8(11)4(5)7(10)19(24)

387

6th9

(8)35(41)3(4)2(3)2(3)17(22)

* To be read2 institutions reported Lead genera tion for sales force as the most valuable role ofdirect marketing. This represents 2 8% of the sam ple (rounde d).Some institutions ranked certain roles equally and consequently column totals do not equal 100%.Specific Com petencies of Direct MarketingThe benefits of direct marketing methods compared to other elements of the com-munication mix are assessed through an open question. Not surprisingly a broadrange of views are expressed, although several features are cited by institutions ona regular basis; accountability a nd measu rability (49%) and precise targeting (43%)are the most common responses. Control and flexibility (24%) and one-to-onecom munication (23%) also receive supp ort, b ut regrettably testing benefits are onlymen tioned by 10% of respon den ts. The distinctions betw een institutions are in theareas of control and flexibility where the banks are more supportive of this benefit(P < 0.05). They also place greater credence on testability. (P < 0.001).

Problem reasFirth and Lindsay (1989) identified a number of areas which were a source ofconcern to direct marketers. Of particular relevance to banks was the ability toobtain accurate and up-to-date (clean) lists, although it was suggested that thisproblem may reduce in line with database improvements and investments ininformation technology. Lead time and creative were also highlighted althoughdivergent trends were evident. Lead time was becoming more problematic whilecreative was becoming less so. Building societies expressed concern about analysisproblems, primarily resulting from resource constraints, while insurance com-panies cited cost, despite assumed savings of commission through direct sales.

The current study reflects some changes with 69% of institutions reporting costas a problem. Insurance companies are still more emphatic with 81% highlightingthis feature. Lists are the second area of concern (46%) and as in 1989, banksexpress greater dissatisfaction than the other institutions (64%). Building societies


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Summary and ConclusionsThe rapid grow th of direct marke ting in the latter half of the 1980s appe ars to haveslowed somewhat during the 1990s. Nevertheless thefinancial services markeremains highly competitive and the positive contribution mad e by direct m arketingin relation tothe acquisition and retentio nofcustomersissettocontinue. However, this research highlightsavarietyofapproaches, someofwhichareclearlysub-op timal. It is vital that the re is fuller integ ration of direct marketing w ith othe relements ofpromotion anddistribution. Perhaps thegrowth of in-house direcmarketing departments will contributeto anappreciationofthe strategic value ofthe medium in developing and sustaining customer dialogue.While there is some evidence of a systematic approach to the use of direcmarketing the research suggests thatincertain cases,notonlyistherealackofcomprehensionof the strategic benefits, but alsoalackofclarity ab out the work-ingsofdirect ma rketing . For exam ple, greater consideration sho uldbegiventocompiling effective databases and integrating information sources withaviewtomore sophisticated targeting. Inadd ition, significantly mo re attention shou ldbeplaced on testing, as this identifies which proposition and delivery mechanisms areappropriate, and on aspectsof timing. The combined effectofthese m easures wilbe to improve cost effectiveness and reduce chargesof junk mail .The evidence of greater use of several media within direct marketingpro-grammesis a positive developmentasdifferent cam paign s dem and different a p-proaches basedonparticular objectives, pro du cts, target m arkets, etc. Experiencewith a range of techniques will lead to more effective integration and bring benefitsthrough synergy, reinforcement and improved response rates.Direct marketing has m uchtooffer financial services inst itutions th roug h lever-aging their investments in more traditional elements of tbe communication mixand providingadistributive function. The evidenceof this research isthatfor anumberofinstitutionsagreater appreciationof the role and applicationsofdirecmarketing will be necessary if tbe real benefits of this adaptive and valuablemedium are to be gained.

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Enn ew, C , W atkins, T. and W right, M. (1990),Marketing FinancialServices Oxford,Heinemann.Ennew, C , W right, M. and W atkins, T. (1990), New C om petition in FinancialServices ,Long RangePlanning Vol. 23, No . 6, pp . 80-90.Firth , L. P . (1986),Direct Marketingin theUK Financial ServicesIndustry1986 unpub-lished MBA Thesis, University of Bradford.Firth, L. P. and Lindsay, D. (1989), Direct Ma rketing in the UK Financial ServicesIndustry Kingston Business School.Ho lder, D. and O we n-Jones, C. (1992), W hy Direct M arketing W ork s . In:The bsolute Essentials (Teddington), The Direct Marketing Centre, p. 6.Howcroft, B. (1992), Co ntem pora ry Issues in UK Bank Delivery System s ,Inter-national JournalofService IndustryManagement Vol. 3, No. 1, pp . 39-56.Jefkins, F. (1990), The Secret of SuccessfulDirect Response Marketing Oxford,Heinemann.Kotler, P. (1988), MarketingManagement: Analysis Planning Implementation andGontrol (6th Ed.), New Jersey, P rentice-Hall.Lewis, B. (1984), M arke ting Bank Services , TheService IndustriesJournal Vol. 4,No.3, pp. 61-76.Lewis, B. (1991), Service Quality: An International Co mp arison of Bank Cu s-tomers' Expectations and Perceptions ,Journal ofMarketingManagement Vol. 7,No.1, pp. 47-62.McGoldrick, P. H. and G reenlan d, S. J. (1992), Co mp etition B etween Banks andBuilding Societies in the R etailing of Financial Service s ,British Journalof Manage-ment Vol. 3, pp . 160-179.Martin, T. (1991),Financial Services DirectMarketing Maidenhead, McGraw-Hill.M ayes, R. (1993) Eu ro spend for DM Climbs to Top 20bn .PrecisionMarketing 23August, p. 6.M outinho, L. and Meidan, A. (1989), Bank Custom ers' Perceptions, Inno vationsand New Technology , International Journal ofBankMarketing Vol. 7, No. 2, pp.22-27.P.A. Management Consultants Ltd. (1983),Direct Marketing inFinancial Institutions:APreliminary Survey London, P.A.

Roberts, M. L. and Berger, P. O. (1989),Direct MarketingManagement New Jersey,Prentice-Hall.Roman, E. (1988), Integrated D irect M arketing: Techn iques and S trategies for SuccessNew York, McGraw-Hill.Scarborough, H . and L annon, R. (1989), The Man agein ent of Innov ation in theFinancial Services Sector ,Journalo fMarketingManagement Vol. 5, No . 1, pp . 5 1 -62.Stone, M. and C larkson, A. (1989), MIS and the Strategic De velopm ent of Finan-cial Institutions ,Marketing Intelligence andPlanning Vol. 7, No. 12, pp. 22-30.Thw aites, D. (1989), The Impact of Env ironm ental C han ge on the Evolution of theUK Building Society Industry , TheService IndustriesJournal Vol. 9, No. 1, pp.40-60.


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Process in Financial Services ,JournalofProduct InnovationManagement VoN o.4, pp . 303-313.Thw aites, D. and G laister, K. W. (1992), Strategic Re spon ses to Environm entaTurbulence ,International JournalofBankMarketing Vol. 10, N o. 3, pp . 33-40W oodcock, N . (1992), H ow to Get the Best O ut of Your D atab ase . In:The bsoluEssentials(Ted dington), The Direct M arketing C entre, p . 3.


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Direct Marketing in the Financial Services Industry

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