waqar report

7/30/2019 Waqar Report

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E-MAIL DIRECT MARKETING

NCBA&E 1

DECLARATION

This is to declare that the work presented through this dissertation does not

incorporate without acknowledgment any material previously submitted for a degree

or diploma in any university and that to the best of my knowledge it does not contain

any material previously published or written by another person excepted where due

reference is made in the text.

MUHAMMAD WAQAR

November, 2012


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NCBA&E 2

DEDICATION

I dedicate my project work to my parents and friends. A special feeling of gratitude

to my loving mama and papa, who always pray for me and teach me to work hard.

They always cooperate with me in my every work and always help me when I want

them.

They always appreciate my work. I also want to dedicate this to my friends who are

always with me in the time of an hour and to a one special friend who always

encourages me and always teaches me to go up in every field of life and never

compromise on studies.


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NCBA&E 3

ACKNOWLEDGEMENT

All praises to the gracious, the greatest Almighty Allah Who blessed us with the

courage and made our efforts fruitful for the completion of this research to a happy

end. Without Allahs assistance, a project like this would never come to fruition.

It gives us immense pleasure to express deepest gratitude to our dignified teacher syed

anwar hussain for his advice and encouragement. His masterly expression, stimulating

criticism and able guidance compelled me to think freely and write independently

throughout my research thesis. I am grateful to him for this perceptiveness and

guidance during my final project.

I want to thank my friends specially, who helped me a lot in completing this thesis

with her knowledge and skills. They were always there for me whenever I needed his

help and needed to understand something.

MUHAMMAD WAQAR


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NCBA&E 4

RESEARCH COMPLETION CERTIFICATE

This is to certify that the dissertation entitled E-mail Direct Marketing submitted by

Muhamamd Waqar for fulfillment of the requirement for the award of degree ofMaster of Business Administration (MBA) to National College of Business

Administration & Economics, 40 E/1 Gulberg-III Lahore, Pakistan is a record of

candidates own work carried out by him under my supervision. The matter embodied

in this dissertation is original and has not been submitted for the award of any other

degree.

(SYED ANWAR HUSSAIN)

Supervisor


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NCBA&E 5

EXECUTIVE SUMMARY

This project is about E-mail Direct Marketing. E-mail Direct Marketing is very

common and useful tool for marketing. The purpose of this project is to practically

know about all the aspects of E-mail Direct Marketing which effect on customers

behavior.

This is a Thesis Report on E-mail Direct Marketing. In this thesis there is an

introduction of the E-mail Direct Marketing and behavior of customer towards E-mail

Direct Marketing and how they responded to E-mail Direct Marketing.

In this study we also discussed about customer relationship and study how E-mail

Direct Marketing can build customer relationship. We have conducted a research on a

sample size of 100, with the help of a questionnaire. The purpose of the research was

to know the effect of E-mail Direct Marketing on customer and how customers are

respond to E-mail Direct Marketing. We asked respondents whether they are satisfied

with the E-mail Direct Marketing and majority of people were satisfied with the E-

mail Direct Marketing .We have targeted our sample on the basis of gender

Finally we gave some suggestions to overcome this problem and make E-mail Direct

Marketing more effective.


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NCBA&E 6

TABLE OF CONTENTS

DECLARATION.1

DEDICATION...2

ACKNOWLEDGEMENT.3

RESEARCH COMPLETION CERTIFICATE...4

EXECUTIVE SUMMARY...5

CHAPTER 1..8

Introduction...8

History..8

CHAPTER 2....10

Literature review....10

CHAPTER 314

Problem statement..

14Objective of study14

CHAPTER 415

Research Methodology.15

Quantitative Research Method...15

Qualitative Research Method.15

Analysis of Findings.16


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NCBA&E 7

CHAPTER 5...25

E-mail marketing software.25

Requirements for e-mail marketing..25

Names of companies which used e-mail marketing..25

Screenshot of e-mail direct marketing.28

CHAPTER 6..30

Top uses of e-mail direct marketing30

CHAPTER 7..33

Conclusions & Recommendations...33

Conclusion...33

Recomendeations33

Annexures35

Market Analysis Questionnaire..35

References37


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NCBA&E 8

CHAPTER 1

INTRODUCTION

Introduction

Email marketing is directly marketing a commercial message to a group of people

using email. In its broadest sense, every email sent to a potential or current customer

could be considered email marketing. It usually involves using email to send ads,

request business, or solicit sales or donations, and is meant to build loyalty, trust, or

brand awareness. Email marketing can be done to either cold lists or current customer

database. Broadly, the term is usually used to refer to Sending email messages with

the purpose of enhancing the relationship of a merchant with its current or previous

customers, to encourage customer loyalty and repeat business and Sending email

messages with the purpose of acquiring new customers or convincing current

customers to purchase something immediately and adding advertisements to email

messages sent by other companies to their customers.

E-mail marketing have two types the first one is called Transactional emails.Transactional emails are usually triggered based on a customers action with acompany. Triggered transactional messages include dropped basket messages,purchase or order confirmation emails and email receipts.

The primary purpose of a transactional email is to convey information regarding theaction that triggered it. But, due to its high open rates (51.3% compared to 36.6% foremail newsletters), transactional emails are a golden opportunity to engage customers;to introduce or extend the email relationship with customers or subscribers, to

anticipate and answer questions or to cross-sell or up-sell products or services.

Many email newsletter software vendors offer transactional email support, whichgives companies the ability to include promotional messages within the body oftransactional emails. There are also software vendors that offer specializedtransactional email marketing services, which include providing targeted andpersonalized transactional email messages and running specific marketing campaigns(such as customer referral programs).

The second type is direct marketing Direct email involves sending an email solely tocommunicate a promotional message (for example, an announcement of a special

offer or a catalog of products). Companies usually collect a list of customer or
http://en.wikipedia.org/wiki/Customer_loyaltyhttp://en.wikipedia.org/wiki/Advertisementshttp://en.wikipedia.org/wiki/Referral_marketinghttp://en.wikipedia.org/wiki/Referral_marketinghttp://en.wikipedia.org/wiki/Advertisementshttp://en.wikipedia.org/wiki/Customer_loyalty


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NCBA&E 9

prospect email addresses to send direct promotional messages to, or they can also renta list of email addresses from service companies.

History

Email marketing is the newest version of direct marketing. The sale slips, pamphlets,sale coupons which are put into one's post box are the traditional direct marketingtools. Instead of using the postal system, most of the businesses today opt for sendingmass emails to consumers with information of merchandises. Since email uses theInternet for transmission and software applications for content building andtransmission, the history of email marketing is also based on advent of Internet andrequisite software applications.

In the late 1980s, there were Bulletin Boards. These were the precursors of Internetforums. First, electronic advertisements appeared here and online business also took

place in these forums. The merchandises were basically small electronic goodsdesigned by technology savvy persons. The corporate biggies arrived here too in1987. Email marketing by that time was only among prominent corporations sellingtechnologies to it each other. By 1995, spread of desktop computers and penetrationof Internet almost into every household brought a surge in email marketing.

Though mass mailing software was first designed inside lab of MIT as open sourceproject back in 1982, it was quite elementary in structure. With increased corporateinterests in 1990s the software was augmented to a version with better control ofcontact lists, better reporting for an email campaign and support for scheduling. But, itlacked user friendliness. All the emails required to be generated from instructions at

command prompt. The first fully graphical enterprise email messaging system arrivedin 1991. Because of its user-friendliness, it earned loads of popularity. The samesoftware kept on evolving since then.

Email marketing needs software capable of mass mailing. Mass mailing or bulkmailing needs reporting failure of sending messages. Besides, it needs to be senteffectively as calculation of return on investment is attached to the success of mailingcampaign. But hitting the wrong customer with promotional mail only increased thedepth of spam mail in the customer's inbox. Realizing this, legitimate emailmessaging companies started studying clientele by offering registration forms tosubscribe to receive email campaigns and always with an option to unsubscribe.Besides, advent of spam filters forced some email marketing business to remodel theirsoftware to send mail to consumers. On the technical aspect, email marketing is nomore textual messages of marketing. Instead, it consists often of multimedia messagesnow.

Using bulk mailing software also reduced the cost of sending mails via postal system.Email marketing is becoming more and more popular.


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NCBA&E 10

CHAPTER 2

LITERATURE REVIEW

According to Grnroos (2000a, 33) a relationship has developed when the customerperceives that a mutual way of thinking exists between customer and supplier orservice provider. This definition emphasizes the attitudinal nature of a relationship. Afirm should create interaction and communication processes that support this feeling,but it is ultimately the customer who determines whether or not a relationship hasdeveloped.Grnroos (2000a, 35) categorizes customers as being in three different modes

depending on their interest in a relationship with the firm in a given marketingsituation: transactional mode, passive relational mode and active relational mode. Intransactional mode the customers interest is focused on making a successful purchase

and he or she can perceive continuous communication between purchases, such as ane-mail newsletter, simply annoying and time consuming. Customers in passiverelational mode are looking for the knowledge that they could contact the supplier orservice provider, by for example finding an e-mail address printed on a soft drink can,but they seldom respond to invitations to interact. Active relational customers arelooking for opportunities for interaction in order to get additional value and they canget disappointed due to a lack of contacts. The categorization points out that oneshould not always expect a customer to show high levels of interaction, even if he orshe does perceive the relationship marketing activities to deliver added value. Asstated by Grnroos (2000a, 36) for customers in a passive relational mode, arelationship-oriented marketing strategy is important, although it may not seem so.Relationship marketing activities can increase the value of a brand in the minds of acustomer in either passive or active relational mode, regardless of interactions. Feurst(1999, 163) brings out the inconsistent nature of actual customer behavior through anexample of a young customers typical preferences. If you give a youngster thechance to choose between a supplier that wants to create a learning relationship byrecording the customers personal data and a company that simply hands out the readymade product in exchange for payment, he or she is likely to choose the latter one.

The choice is made regardless of the fact that the first alternative would be morebeneficial to both the customer and the society in the long term.The example aptly demonstrates the need to explicitly communicate the relationshipbenefits to a customer in order to persuade him or her to switch from transactional torelational mode, as the behavior of an individual is often driven by short-termbenefits. In examining consumer attitude towards forming relationships withsuppliers,Peppers & Rogers (1993, 327-328) describe the transactional marketing approach ofusing mass media to communicate your message to consumers as an implicit bargain.The mass marketers pay a portion of a magazines production cost and in return thereaders view their ads. Due to the implicit nature of this bargain, consumers are free

to ignore the ads and mass marketers may freely harass many consumers with theirmessage in order to enlist a few new customers. When using any addressable, two-


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NCBA&E 11

way medium, the company and the customer make an explicit bargain, in which theparties collaborate and give something (service, information) to get something inreturn. The explicit bargain is based on mutual trust between the parties, which is anessential ingredient in any relationship and can therefore be seen as a requirement forconverting customers from transactional to relational mode.

Customer loyalty can be defined as the degree to which customers are predisposed tostay with a company and resist competitive offers (Peppers & Rogers Group, 2002).As a measure, customer loyalty is the proportion of times a purchaser chooses thesame product or service in a specific category compared to the total number ofpurchases made by the purchaser in that category (Neal 1999, 21). While relationshipsare a central part of loyalty, they alone are not enough to make a customer loyal.The process of building customer loyalty is often described using a loyalty ladderwith five ascending steps: suspect, prospect, customer, client and advocate. Thepurpose of relationship marketing activities is to move the customer through a seriesof steps that culminate in the customer being an advocate for the companys product.

(Roberts & Berger 1999, 10-11.)Frederick F. Reichheld demonstrated the economics of loyalty in his 1996 publicationThe Loyalty Effect through examples from various lines of business, all of whichshowed a clear correlation between customer retention and company profitability. Heargued that while most managers understand the linkage which both customer andemployee loyalty has on revenues and costs, they are blinded by short-term financialindicators which drive them towards maximizing shareholder value instead of value tothe customer. (Reichheld, 2001,12-16.) Drawing comparison between the concept of loyalty and commitment in thecontext of the development process of a relationship, Dwyer et al (1987, 19) suggestthat commitment should be measured by three criteria: inputs, durability andconsistency. The first criterion of commitment is that the parties in a relationshipprovide relatively high levels of inputs to the association. This can mean significantexchange of economic, communication, and/or emotional resources. Second, thereshould be some durability of association over time.The parties need to have a common belief in the effectiveness of future exchange,which will enable them to bond and encourage the continued investment in therelation. The third aspect of commitment is the consistency with which the inputs aremade to the association. Inconsistency in input levels reflects low commitment andleads to a reduced reliance by the other party on the outcomes of the exchange. Socialbonds tend to weaken and dissolve over time unless actively maintained. (Dwyer et

al1987, 19.)

Don Peppers and Martha Rogers introduced the concept of one to one marketing in1993 in their book The One To One Future. It was based on a notion that recentdevelopments in technology had generated a point of discontinuity that allowedcompanies to start competing for business opportunities one customer at a time.By using interactive media to create dialogues with individual customers and masscustomization to tailor products and services to meet their expressed needs, it wouldbecome possible to provide the customer superior value compared to the traditionalway of doing business, which is based on making products for large segments andpromoting them through mass media. (Peppers & Rogers, 1993, 7, 10, 15.)


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NCBA&E 12

One to one marketing is a type of relationship marketing that focuses on theindividual customer. Its basic idea can be simplified to treat different customersdifferently. Being a customer-oriented company has usually meant being oriented tothe needs of the typical customer in the market, meaning the average customer. The

one to one ideology requires tracking the interactions of individual customers andacting according to this exact information instead of statistical averages.(Peppers & Rogers, 1999, 1.)By recording information about every interaction with the customer and customizingthe product and service accordingly, a company can establish a learning relationshipwith the customer. This type of a relationship becomes increasingly valuable to thecustomer as time goes by, which also means competitors ability to offer the samelevel of convenience decreases, thus locking the customer into the existingrelationship by offering superior value. (Peppers & Rogers, 1999, 2.) Individual levelinformation on customers has been used in marketing long before the adoption of ITsystems, but marketing theory has focused on mean values and masses (Gummesson,

1998, 146). With the introduction of new tools that make it possible to targetmarketing activities to individual customers instead of customer segments, it will nolonger be acceptable to rely solely on aggregate measures when managing customerrelationships.Customer relationship management (CRM) is a subject that has been discussed inmanagement literature since the 1960s, but its implementation has become a hot

topic only recently. CRM can be described as the discipline of identifying, attractingand retaining a companys most valuable customers. According to Curry et al (2000),the true business of every company is to make customers, keep customers and

maximize customer profitability.CRM is based on the notion that not all customers are equally valuable to a company.Following the Pareto principle frequently cited in business literature, the top 20% ofthe customers normally deliver 80% of revenues.More importantly, the top 20% of the customers deliver more than 100% of profits,meaning the majority of customers are actually unprofitable. It is therefore vital for acompany to target its marketing efforts towards retaining the top 20% of existingcustomers rather than spending it on communicating with non-customers who arelikely to be unprofitable. (Curry et al 2000, 17-21.)Identifying the most profitable customers has been a difficult task, but thedevelopment of analytical techniques such as data mining and the increasing amountof electronic customer touch points like web sites has enabled companies to start

pursuing this goal with a whole new level of intensity (Curry et al 2000). Due to itsheavy reliance on technological advancements, many have started to consider CRM asa combination of software and business processes rather than purely a marketingstrategy. While it is not reasonable to ignore the technical aspect when discussingCRM, one should remember that technology only provides tactical tools forimplementing a companys customer relationship strategy. (Greenberg 2001, 32.)

According to Tapp (2000, 4), the key to modern direct marketing is the capture ofindividual customer details at the first sale, so that the marketer can begin arelationship with that customer, subsequently treating them differently over time inorder to generate repeat business. This demonstrates the natural linkage between

direct marketing and concepts such as relationship marketing and CRM, as they allrevolve around the same key principles. The terms direct marketing and database


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NCBA&E 13

marketing are often used interchangeably. The general distinction made between theterms by Tapp (2000, 6) points database marketing towards strategy formulation,whereas direct marketing is focused on direct communication to customers. Assuggested by its name, engaging in database marketing requires the company tomaintain or have access to a marketing database. The definition of a marketing

database provided by Tapp (2000, 29) states it as a list of customers and prospectsrecords that enables strategic analysis, and individual selections for communicationand customer service support. The data is organized around the customer. Roberts

and Berger (1999, 165) further add that the content of the database has been collectedover a considerable period of time.A database holding records on individual customers is the basis of direct marketingactivities: marketing analysis, planning, implementation of programs and control ofall this activity. The advantage drawn from this database centric approach, comparedto general marketing, is that it forces a natural focus on customers rather thanproducts, again enforcing the natural linkage to relationship marketing ideology.(Tapp, 2000, 3-4.)

E-mail is one of the most interesting new channels enabling interactive marketing.Kinnard (2000, xviii) defines e-mail marketing as the act of sending marketingcommunications to recipients who first request it. This definition makes a clear

distinction between permission based, targeted e-mail marketing and unsolicited,untargeted mass mailings often referred to as spam, which has to some extent givenemail a bad reputation as a contact medium in commercial relationships.

One of the underlying assumptions behind a permission based approach to marketingis that a customer who has given permission to be contacted by the marketer is a

better, more loyal, and more profitable customer overall. Combined with the fact thatmost email users find unsolicited e-mail marketing messages as intrusive and many ofthem have started to take measures in trying to protect themselves from receivingspam, there is little reason for any e-mail marketer to attempt building a relationshipwith customers without first acquiring their permission. (MacPherson, 2001, 14-17.)There are two main strategies for acquiring contact permission from the customer:option and opt-out. The opt-in policy means that the customer must explicitly state heor she gives the permission to be contacted by e-mail. This type of permission can beasked in, for example, the registration process of signing up for a username to anonline service. The opt-out policy requires the customer to actively unsubscribe fromthe e-mail contacts if he or she does not wish to receive them. A typical method of

using opt-out is to send the message to a list of e-mail addresses acquired fromexternal sources and provide the recipients with the option to remove themselves fromthe list by clicking on a link or replying to the message. (MacPherson, 2001, 15.) Theopt-out policy is not a recommendable approach if the target of e-mail directmarketing is to build lasting customer relationships. It takes the power away from thecustomer in favor of creating opportunities for the marketer. Because customers donot ask for opt-out based communication, the messages are unanticipated and oftenirrelevant, which makes them far less effective than opt-in e-mail messaging. (Godin,1999, 229-230.)


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NCBA&E 14

CHAPTER 3

PROBLEM STATEMENT AND OBJECTIVE OF STUDY

Problem statement

The major problem in E-mail direct marketing is very few peoples are cheaking their

inbox on regular basis and this is a serious problem because many people which they

are not cheektheir mail box they dont know what is company or product offer so in

that case we can not achieved customer loyalty and build customer relationship.

Objective of study

The objective of the research is to examine how response data from direct marketingemail campaigns could be utilized in measuring the development of a customerrelationship in the context of an end-user loyalty program. In order for directmarketing campaigns to be considered as customer dialogue in a relationshipmarketing sense

Build customer relationship Increase customer loyalty Gives latest updates about product to customer Increase customer value Direct interaction with customers


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NCBA&E 15

CHAPTER 4

RESEARCH METHODOLOGY

Data collection methods

Data collection method is important for any kind of study. They are of two types:

1- Quantitative research methods2- Qualitative research methods

1-Quantitative research methods

Quantitative research is concerned with testing hypotheses derived from theory orbeing able to estimate the size of a phenomenon of interest. Depending on theresearch question, participants may be randomly assigned to different techniques. Theresearcher may collect data on each participant and situational characteristics in orderto statistically control their results. The following is the method by which thequantitative research is done:

QuestionnairesA questionnaire is a series of questions asked to individuals to obtain

statistically useful information about a given topic.When properly constructed

and responsibly administered, questionnaires become a vital instrument by

which statements can be made about specific groups or people or entire

populations.

2-Qualitative research method

It plays an important role in impact evaluation by providing information useful to

understand the processes behind the observed results and assess changes in peoplesperceptions of their well-being. Qualitative methods can be used to improve thequality of survey based quantitative evaluations by helping generate evaluationhypothesis, strengthening the design of survey questionnaires and expanding orclarifying quantitative evaluation findings.


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NCBA&E 16

Analysis of Findings

The respondents of this survey were the students of National College of businessadministration and economics and local people. The total number of respondents was100. The questionnaire contained 12 questions. Using the SPSS-18 software I havecalculated the Correlation of the question answered by 100 respondents. Following isthe representation of each question. Following are correlation of Q1 Q4 withhypothesis and interpretation

Do youthink that e-mail direct

marketing iseffective in

buildingcustomer

relationship?

Is e-maildirect

marketingis helpful

in thecontext of

gaincustomerloyality?

Is e-maildirect

marketingis helpful

in decisionmaking ofpurchasing

theproduct?

Do you

thinkthrough e-

mailmarketingcompany

canincrease

theircustomers?

Gender of

Respondents

.276 .352 .265 .275

.006 .000 .008 .006100 100 100 100

Do youthink that e-mail directmarketing iseffective inbuildingcustomerrelationship?

1 .530 .341 .173

.000 .001 .085

100 100 100 100

Is e-maildirectmarketing ishelpful inthe contextof gaincustomerloyality?

.530 1 .350 .209

.000 .000 .037

100 100 100 100

Is e-maildirectmarketing is

helpful indecision

.341 .350 1 .301

.001 .000 .002

100 100 100 100


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NCBA&E 17

making ofpurchasingthe product?

Do you

thinkthrough e-mailmarketingcompanycan increasetheircustomers?

.173 .209 .301 1

.085 .037 .002

100 100 100 100

Hypothesis

Null hypothesis (H0)

There is no correlation between the EDM and customer relationship. The relation

between variables is insignificant.

Alternative hypothesis (H1)

There is a correlation between the EDM and customer relationship. The relationbetween variables is significant.

Q1 Interpretation

Here the correlation coefficient between EDM and customer relationship is 0.276 withp value .006 which showing significant correlation between EDM and customerrelationship. Its indicating positive and weak relationship between EDM andcustomer relationship. The positive relationship indicate that respondents are agreewith EDM is effective in building customer relationship.

Hypothesis


There is no correlation between the EDM and customer loyalty. The relation between

variables is insignificant.


There is a correlation between EDM and customer loyalty. The relation betweenEDM and customer loyalty is significant


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NCBA&E 18

Q2 Interpretation

In second question the correlation coefficient value EDM and customer loyalty is0.352 with p value .000 which showing significant correlation between EDM andcustomer loyalty. Its indicating positive and weak relationship between EDM andcustomer loyalty. Here respondents are agree with EDM is effective to gain customerloyalty.

Hypothesis

Null hypothesis (H0)There is no correlation between EDM and decision making. The relation between

variables is insignificant.


There is a correlation between EDM and decision making. The relation betweenvariables is significant

Q3 Interpretation

Here in the third question there is positive and weak relationship between EDM anddecision making. The correlation coefficient value is .265 with p value .008 whichindicates the significant relationship between EDM and decision making. The positivecorrelation coefficient value indicates that EDM is supportive in decision making.

Hypothesis

Null hypothesis (H0): There is no correlation between EDM and increase customer.

The relation between variables is insignificant.

Alternative hypothesis (H1): There is a correlation between EDM and increasecustomer. The relation between EDM and increase customer is significant

Q4 Interpretation

In the fourth question correlation coefficient between EDM and increase customer is0.275 with p value .006 which showing significant correlation between EDM andincrease customer. Its indicating positive and weak relationship between EDM andincrease customer. The positive relationship indicate that respondents are agree withEDM can increase the customers.


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NCBA&E 19

Correlation

Correlation of Q5-Q8 with hypothesis and interpretation

Gender ofRespondents

By usinge-maildirectmarketingcan itincreasethe saleofproduct?

Do youthink thate-maildirectmarketingcanpromotethebusinessof acompany?

Do youthink e-maildirectmarketingiseffectiveingrowingaBusiness?

Is e-maildirectmarketingisan easywayto interactwithCustomers?

Gender ofRespondents

PearsonCorrelation

1 .335** .119 .121 .082

Sig. (2-tailed)

.001 .239 .229 .419

N 100 100 100 100 100By using e-mail directmarketingcan it

increase thesale ofproduct?

PearsonCorrelation

.335** 1 .180 .391** .132

Sig. (2-tailed)

.001 .072 .000 .189

N 100 100 100 100 100

Do youthink that e-mail directmarketingcan promotethe businessof acompany?

PearsonCorrelation

.119 .180 1 .307** .185

Sig. (2-tailed)

.239 .072 .002 .066

N 100 100 100 100 100

Do you

think e-maildirectmarketing iseffective ingrowing abusiness?

Pearson

Correlation .121 .391**

.307**

1 .146Sig. (2-tailed)

.229 .000 .002 .149

N 100 100 100 100 100

Is e-maildirectmarketing isan easy wayto interactwithcustomers?

PearsonCorrelation

.082 .132 .185 .146 1

Sig. (2-tailed)

.419 .189 .066 .149

N 100 100 100 100 100


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NCBA&E 20

Hypothesis

Null hypothesis (H0):

There is no correlation between EDM and sale. The relation between EDM and sale is

insignificant.


There is a correlation between EDM and sale. The relation between variables issignificant

Q5 Interpretation

In fifth question there is weak and positive relationship between EDM and salebecause correlation coefficient between and sale EDM is 0.335 with p value .001which showing significant correlation between EDM and sale. The positiverelationship indicate that respondents are agree with EDM is effective to increase thesale of a product.

Hypothesis


There is no correlation between EDM and promote business the relation between

EDM and promote business s insignificant.


There is a correlation between EDM and promote business. The relation betweenEDM and promote business is significant

Q6 Interpretation

In sixth question the correlation coefficient between EDM and promote business is.119 with p value .239 which showing there is no significant correlation betweenEDM and promote business the relationship between promote the business and EDMis weak and positive.


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NCBA&E 21

Hypothesis


There is no correlation between the EDM and growing a business. The relation

between EDM and growing a business is insignificant.


There is a correlation between EDM and growing a business. The relation betweenEDM and growing a business is significant

Q7 Interpretation

In seventh question the correlation coefficient between EDM and growing a businessis .121 with p value .229 which showing there is no significant correlation betweenEDM and growing a business. The relationship between respondents and EDM isweak and positive. Here respondents positively responds towards EDM is effective ingrowing business.

Hypothesis


There is no correlation between EDM and interact with customer. The relation

between EDM and interact with customer is insignificant.


There is a correlation between. EDM and interact with customer .The relationbetween variables is significant

Q8 Interpretation

In eighth question the correlation coefficient between EDM and interact withcustomer is 0.82 with p value .419 which showing there is no significant correlationbetween EDM and interact with customer. EDM and interact with customer havepositive and weak relationship here respondents are not agree with EDM is not easyway to interact with customers.


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Correlation of Q9-Q12 with hypothesis and interpretation

Do youthink e-maildirectmarketing ishelpful tokeepcustomersup to date?

Is e-maildirectmarketingishelpfultool forOnlinebusiness?

Can itdevelopbuyer andsellerrelationship?

Is it an easyway tocollectfeedbackaboutproductfromcustomers?

Gender of

Respondents

.067 -.014 -.084 .112

.510 .892 .404 .267

100 100 100 100

Do you think e-maildirect marketing ishelpful to keepcustomers up todate?

1 .000 .582**

.131

1.000 .000 .192

100 100 100 100

Is e-mail directmarketing is helpfultool for onlinebusiness?

.000 1 -.105 .064

1.000 .299 .527

100 100 100 100

Can it develop buyerand sellerrelationship?

.582**

-.105 1 .302**

.000 .299 .002

100 100 100 100

Is it an easy way tocollect feedbackabout product fromcustomers?

.131 .064 .302**

1

.192 .527 .002

100 100 100 100


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NCBA&E 23

Hypothesis

Null hypothesis (H0): There is no correlation between EDM and keep customer up to

date .The relation between EDM and keep customer up to date is insignificant.Alternative hypothesis (H1): There is a correlation between EDM and keep customerup to date. The relation between EDM and keep customer up to date is significant

Q9 Interpretation

In ninth question the correlation coefficient between EDM and keep customer up todate is 0.67 with p value .419 which showing there is no significant correlation

between EDM and keep customer up to date . Its indicating positive and weakrelationship between gender of respondents and EDM.

Hypothesis


There is no correlation between EDM and helpful tool. The relation between EDM

and helpful tool is insignificant.


There is a correlation between EDM and helpful tool. The relation between EDM andhelpful tool is significant

Q10 Interpretation

In tenth question the correlation coefficient between EDM and helpful tool is -0.14with p value .892 there is negative and weak relationship between EDM and helpfultool. Which showing there is no significant correlation between EDM and helpful tool

.The negative result shows that respondents are not agree with EDM is helpful tool forbusiness.

Hypothesis


There is no correlation between EDM and buyer and seller relationship. The relation

between EDM and buyer and seller relationship is insignificant.


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NCBA&E 24


There is a correlation between EDM and buyer and seller relationship. The relationbetween variables is significant

Q11 Interpretation

In eleventh question the correlation coefficient between EDM and buyer and sellerrelationship is -0.84 with p value .404 there is negative and weak relationship betweenEDM and buyer and seller relationship which showing there is no significantcorrelation between EDM and buyer and seller relationship .The negative result showsthat respondents are not agree with EDM will not build strong relationship betweenbuyer an seller.

Hypothesis


There is no correlation between EDM and feedback from customer. The relation

between EDM and feedback from customer is insignificant.


There is a correlation between EDM and feedback from customer. The relationbetween EDM and feedback from customer is significant

Q12 Interpretation

In last question the correlation coefficient between EDM and feedback from customeris 0.112 with p value .267 which showing significant correlation between EDM andfeedback from customer. Its indicating positive and weak relationship between EDMand feedback from customer. The positive relationship indicate that respondents areagree with EDM is effective to get feedback from customers


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CHAPTER 5

E-MAIL MARKETING SOFTWARES

LISTSERV Maestro

LISTSERV Maestro is a complete email marketing software solution. Designed forboth beginner and advanced email marketers, the software allows you to easilyengage your subscribers with targeted, intelligence-based opt-in campaigns. Theworkflow-oriented interface, interactive reporting and unparalleled job managementfeatures make LISTSERV Maestro the premier solution for all email listcommunicators.

LISTSERV Maestro ALLOWS YOU

Easily target and reach your audience in the most cost-effective way Create sophisticated on-the-fly target recipient lists based on a variety of

demographic data

Connect directly to your company database to pull out names and addresses Create sophisticated HTML and text messages and preview them before

delivery

Track every open-up and click-through of the messages that are sent Produce graphical reports on how the campaign is going

Kayvu (Beta)

Kayvu (Beta) is a new hosted email marketing service now being beta tested. Tailoredespecially for small and medium-sized organizations, Kayvu is feature-rich, yet easyto use and quick to learn. Kayvu provides the most essential permission-based emailmarketing functions. If your needs grow, you can always upgrade to the moreadvanced ListPlex Maestro email marketing service.
http://www.lsoft.com/products/maestro.asphttp://www.lsoft.com/products/maestro.asphttp://www.lsoft.com/products/maestro.asphttp://www.kayvu.com/http://www.kayvu.com/http://www.kayvu.com/http://www.kayvu.com/http://www.kayvu.com/http://www.lsoft.com/products/maestro.asphttp://www.lsoft.com/products/maestro.asphttp://www.lsoft.com/products/maestro.asp


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EASE Maestro

EASE Maestro is a hosted email marketing service that offers an alternative to ListPlax Maestro for customers who do not need a virtual domain name or customizedtracking URL. Data hosting is also available.

Why EASE Maestro recommended

Why EASE Maestro?

Cost-Effective EASE Maestro can save you money since you do notneed any new hardware, software or technicalpersonnel. Instead, our experienced staff will ensurethe delivery of your email messages.

User-Friendly The web interface and its job management featurestake the hassle out of email marketing, guiding youthrough the entire campaign development process,from message creation and target group selection toresponse evaluation and analysis.

Flexible EASE Maestro offers multiple levels of open-up,click-through and action tracking, ranging from blindto personal, and offers a built-in way to obtainpermission for personal tracking from subscribers.

Scalable The capacity of our state-of-the-art hosting serversoffers great scalability if your daily traffic were toincrease. The EASE Maestro service allows for plentyof room for growth.

Secure EASE Maestro is the only service of its kind withbuilt-in virus protection. The system is engineered forfast, automatic virus database updates and protectsyour campaigns from harmful viruses.
http://www.lsoft.com/products/ease_maestro.asphttp://www.lsoft.com/products/ease_maestro.asphttp://www.lsoft.com/products/ease_maestro.asphttp://www.lsoft.com/products/ease_maestro.asp


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What is required for Email Marketing?

Windows based PC Internet Connection Email Marketing Software Textfile or Database with Recipients Email Account

Email Marketing Software Used by Thousands of Organizations,

Here flews are followings


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E-MAIL MARKETING SCREEN SHOT


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CHAPTER 6

TOP USES OF E-MAIL DIRECT MARKETING

Newsletters

The top use of email marketing by leaps and bounds in 2007 was newsletters. Thefrequency varied greatly from some organizations opting for a monthly newsletter andothers using weekly, bi-weekly, bi-monthly, or even the very ambitious (for contentrich organizations) daily. It remains very clear that sending out an email newsletter toyour customers is an effective communication tool. Many businesses use their emailnewsletter as an important brand building exercise. The more the business can keep its

name (or logo) in front of customers, the more that company will be the top choicewhen the customer needs to make a purchase. Furthermore, by providing good qualitycontent in these newsletters, companies can establish themselves as a leadingauthority on the topic.

2007 also made it very obvious that the success of an email newsletter is based on thequality of the content. Businesses who tried to send out an email newsletter withoutreally having much to say saw increased unsubscribe requests, while those businessesthat provided high quality content experienced rapid viral growth.

Most email marketing software solutions offer a wide variety of newsletter templates.By choosing the right email marketing software for your newsletter, your business canfind a template that fits perfectly with your brand's look, feel, and color scheme.

Special Promotions / e Coupons

Email marketing acted as a key driver of new sales in 2007, as companies offeredspecial promotions or e Coupons to their mailing list subscribers. By sending out anemail marketing campaign to all past customers, businesses found that special deals(whether it was a discount, free shipping, etc.) tended to cause an instant spike insales.

Since e Coupons have proven time and time again to be highly effective, most emailmarketing software solutions offer customizable e Coupon templates that can easilybe adapted to suit any specific offer.

Offering exclusive coupons to mailing list subscribers has statistically been proven toincrease the size of any businesses mailing list. Many offline companies have startedputting signup forms near their cash registers to prompt people to sign up to receivespecial e Coupons. Since these consumers are already interacting with your business,and since consumer behavior studies tell us that people love savings' or discounts',this really is the perfect way to help put your mailing list growth on turbo.


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Event Announcements

Another area of growth for email marketing in 2007 was the use of email marketing

software to announce company events. These events range from open houses, to townhall meetings, and anything in between. In the past year, many companies andorganizations discovered that email marketing software provides a quick, easy andcost-effective way to spread the word about your event, then track responses andattendees.

Another popular category of events was concerts and entertainment shows. This typeof email marketing campaign was especially popular among MySpace artists andbands. These artists usually place an email marketing mailing list signup box on theirpages, so that they can gather the email addresses of fans who visit their MySpacepages and keep them up to date on shows, new releases, etc. To make this process

easier, many email marketing software providers offer a free MySpace mailing list toall users. (And, of course, if the artist or company has a regular Web page instead of aMySpace page, the free mailing list can be placed on the company Web page as well).

E Cards

E Cards were immensely popular in 2007 for several reasons. First, many consumersare becoming environmentally conscious and making the switch to e Cards instead ofpaper cards. These consumers realize that, in addition to the trees they're saving bycutting out paper, they're also eliminating the fuel and gas emissions that would be

used in physically mailing these cards. Secondly, companies and consumers alike arefiguring out how much money they can save by switching from paper cards to eCards. While a box of ten holiday cards can cost upwards of $20 (plus stamps andshipping fees), most email marketing software will allow you to send up to 1,000 eCards absolutely free no stamps and no shipping fees. Lastly, there's the speedfactor. While companies sending out paper cards have to hand write or individuallyprint each one, the smart companies sending e Cards only have to write their messageonce. The best email marketing software programs will automatically insert the namesof recipients in each message, so the company doesn't even have to do anything.

The trend toward e Cards was especially prevalent in the winter holiday season, as

companies sent out warm wishes to their customers, at virtually no cost. However,there are many other holidays throughout the year, and customers love to feelappreciated. Companies can tap into this benefit by sending out cards for Mother'sDay, Valentine's Day, Halloween, Birthdays and many other celebrations, as the bestemail marketing software programs offer special templates for each occasion. To getthe best bang for their buck, businesses can even combine e Cards with specially-themed promotions.


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Business Updates / Press Releases

Email marketing is not only a great way to send out newsletters, promotions, and eCards; it's also an excellent way to expand the reach of business announcements. Forexample, if you're sending out a press release, you might only think about using apress release distribution site to do so. However, you can expand the distribution ofyour release, and increase its impact, by also using email marketing software for thedistribution. This way, you can reach people you already know (for example,reporters you have been in contact with in the past, or current customers), and tracktheir interest in your press release.

Businesses have also realized that email marketing is a great medium for making

business announcements. For example, you may be moving or opening a new store,you may be re-launching your website, or you may start carrying a new line ofproducts. Either way, you can use email marketing software to tell your customersabout that.

In 2007, countless companies discovered the many uses of email marketing. Theysaved money, improved efficiency and effectively tracked their results simply bygetting on board with email marketing software. For some, the key advantage of emailmarketing software is that the best ones are really easy to use. That is, there is no needto fret if you don't have an IT guy, because as long as you can check and write emails,you'll be able to look like a pro with the right email marketing software.


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CHAPTER 7

CONCLUSION & RECOMMENDATION

Conclusions & Recommendations

The results of this research study clearly indicate that there is a significant and

positive relationship between EDM and customers.EDM is the best source to interact

with customers. By using EDM customer feel that company gives him value this is

the way through which company build customer relationship and it increased

customer loyalty.EDM uses many companies which companies discovered the many

uses of email marketing. They saved money, improved efficiency and effectively

tracked their results simply by getting on board with email marketing so I conclude

here that EDM is the effective way to communicate with customers and increase the

sale of company which already proven through research paper which I mentioned in

literature review .

Recommendations

Here I recommend some suggestions which I mentioned below.

Saturday / Sunday = Increased Response

the best days to perform a mail-out to your list are Saturday / Sunday in pakistan, asthis is when people are more receptive to communication. This means that they are

more likely to read your content and click on links, meaning more sales.

Repeat Email Communication

An auto responder is an email that is scheduled to be sent at a certain time intervalafter someone subscribes to your mailing list. Auto responders are a great way toautomatically follow up with your subscribers or provide them with more informationon your products/services. For example, if you provide a free newsletter, you couldsetup 3 auto responders for new subscribers: the first is sent 1 hour after theysubscribe. It contains a thank you message and a link to get 10% off your newlyreleased eBook.


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Consistency is the Key

If youre running a newsletter or frequent email publication, make sure you keep the

look and feel consistent from issue to issue. By keeping the look and feel consistent,you help to maintain and strengthen your brand and your image to your subscribers,which again will make it easier to close sales when you need to.vCreate a template foryour newsletter and whenever you need to create a new issue, use that template as thebasis for each issue

Build a list specifically themed around promotions, offering consumers firstaccess the latest deals

Integrate user-generated content to foster a sense of community through email Launch an "email marketing mini-series" to highlight time sensitive

promotions Use email and social media integration to launch a viral marketing campaign

designed to acquire new customers Run a promotion designed to boost email open rates

MARKET ANALYSIS QUESTIONNAIRE

Carried by:

Muhammad waqar

Purpose

The basic purpose of this questionnaire is to measure E-mail direct marketing

Audience

Local People, Businessmen, Tradesmen, Student


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National College of Business Administration & Economics

Lahore

MARKET ANALYSIS QUESTIONNAIRE

The aim of this questionnaire is to investigate about e-mail direct marketing asconsumer preference within different age groups. Also, this questionnaire is beingdesigned as a significant part of my dissertation. . All the personal information is usedfor research purposes and will be strictly confidential.

Please answer the following questions and tick the appropriate answer.

The questions measurement will be gagged as 1=strongly agree, 2=agree, 3=neutral,

4=disagree, 5=strongly disagree

No QUESTIONS 1 2 3 4 5

1 Do you think that e-mail direct marketing is effective in building customer

relationship?2 Is e-mail direct marketing is helpful in the context of gain customer

loyalty?

3 Is e-mail direct marketing is helpful in decision making of purchasing the

product?

4 Do you think through e-mail marketing company can increase their

customers?

5 By using e-mail direct marketing can it increase the sale of product?

6 Do you think that e-mail direct marketing can promote the business of a

company?

7 Do you think e-mail direct marketing is effective in growing a business?

8 Is e-mail direct marketing is a easy way to interact with customers?

9 Do you think e-mail direct marketing is helpful to keep customers up to

date?


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10 Is e-mail direct marketing is helpful tool for online business?

11 Can it develop buyer and seller relationship?

12 Is it an easy way to collect feedback about product from customers?


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REFERENCES

Curry, Jay & Curry, Adam. (2000). The Customer Marketing Method. How to

implement and profit from customer relationship management. New York. The FreePress.

Schultz, Don. (1993). Marketing From the Outside In. Journal of Business Strategy,14(4), 25-29.

Heil, Parker, Stephens: One Size Fits One. Building Relationships One Customer andOne Employee at a Time. New York: Van Nostrand Reinhold 1997

Agrawal, M.L.(2001): CRM- From Fad to Strategy, Keynote address to the CEOsConclave on CRM, Hyderabad, November 8, 2001.

Hughes, Arthur Middleton. (1996). Boosting response with RFM. Marketing Tools,Vol. 3 Issue 3, 4-8.

Curry, Jay & Curry, Adam. (2000). The Customer Marketing Method.How toimplement and profit from customer relationship management. New York. The FreePress.





Curry, Jay & Curry, Adam. (2000). The Customer Marketing Method.How to

implement and profit from customer relationship management. New York. The FreePress.





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Aijo, Toivo S. (1996), The Theoretical and Philosophical Underpinnings of

Relationship Marketing,European Journal of Marketing, 30(2), 8-18

Axelsson, Bjom and Geoffrey Easton (eds.) (1992),Industrial Networks - a New Viewof Reality, Routledge, London

Bejou, David (1997), Relationship marketing: evolution, present state and future,

Psychology and Marketing, 14 (8), 727-36

Bendapudi, Neeli and Leonard L. Berry, (1997), Customers Motivation forMaintaining Relationships with Service Providers, Journal of Retailing, 73 (1), 15-37

Webster, Frederick E. (1992), The Changing Role of Marketing in the Corporation.Journal of Marketing, 56(4), 1-17

Wilkinson, Ian and Louise Young (1994); Business Dancing the Nature and Role

of Interfirm Relations in Business Strategy,Asia-Australia Journal of Marketing, 67-

79

Parsons, A.J., Zeisser, M. and Waitman, R. (1996) Organising for Digital

Marketing,McKinsey Quarterly, No.4, pp 185-192.

Peppers, D. and Rogers, M. (1995) A new marketing paradigm, Planning Review, 23

(2), pp 14-18

Peppers, Rogers, Dorf: The One-to-One Fieldbook : The Complete Toolkit forImplementing a 1 To 1 Marketing Program. New York: Bantam/Doubleday Dell 1999

Peppers, Rogers:Enterprise One to One: Tools for Competing in the Interactive Age.New York: Currency/Doubleday 1997

Peppers, Rogers: The One-to-One Future. Building Relationships One Customer at aTime. New York: Currency/Doubleday 1993

Pine II:Mass Customization: The new frontier in Business Competition. Boston:Harvard Business School 1993

waqar report

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