Problem:
This assignment addresses both direct marketing and the issue of privacy. One of the most challenging issues for direct marketers is privacy. Privacy affects a direct marketer's ability to both find and reach its audience. This has been an ongoing concern for GGI and now is the time to address it in a formal manner.
Use the textbook, Library, and Internet to do research on direct marketing and privacy issues in direct marketing, and then prepare a presentation, to be given to GGI's senior management team, which answers the following questions:
Question 1. What is Direct Marketing (DM)? Describe at least three forms of communication that direct marketers utilize (e.g. direct mail catalogs).
Question 2. What are the key benefits and challenges with each of these three approaches? Give your answer from both the consumer point of view and from the marketer's point of view.
Question 3. How do direct marketers obtain consumer information?
Question 4. What are some of the issues faced in effectively and appropriately using this data?
Question 5. What is personalization?Give examples of personalized marketing.
Question 6. What does a marketer hope to achieve with a personalization strategy?
Question 7. What are the key factors of a personalized approach?
Question 8. How could GGI use direct marketing in this project and at the same time protect the customer's privacy?
Case Scenario:
Global Gadgets Imports (GGI) began operations in 1992 as an importer of home decor and gift items. Initially, GGI imported from various Asian manufacturers and sold its inventory through a network of distributors and other intermediaries who supplied to the retail and mail order catalog market. In 1995, GGI opened its first retail store. This decision was fueled by a desire the owner had to be closer to the consumer and capture the high profit margins possible through eliminating the distributors. The success of this one location led to the opening of ten additional stores in a three state region, while the distributor business also continued to grow.
After ten years in business, GGI deals almost exclusively with one manufacturer so import and distribution functions are somewhat optimized. However, over the last year, revenues from the wholesale business have been slipping, while store sales remain flat. Management believes the weakness to be marketing. GGI has a few ideas that might turn the business around and bring new growth. They want to hire you to give them guidance and direction on this marketing project.