Permission MarketingFinal

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PREPARED BY:-

KRUNAL PATEL(10m61)

PRATIK PATEL(10m68)KUSHAL PATEL(10m62)

SWAPNIL CHAUDHARY(10m75)

PRESENTED TO:

Dr. Darshana R. Dave

SUBJECT: CONSUMER PERCEPTION AND PREFERENCESABOUT PERMISSION MARKETING

G. H. Patel Post-Graduate Institute of Business & ManagementSardar Patel University,

Vallabh Vidyanagar.


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Permission Marketing : Permission marketing(also called invitational marketing) envisionsevery customer shaping the targeting behavior ofmarketers (Godin, 1999). Consumers empower a

marketer to send them promotional messages incertain interest categories.

Typically, this is done by asking the consumer tofill out a survey indicating interests whenregistering for a service.

The marketer then matches advertising messageswith the interests of consumers.


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Permission marketing offers the promise ofimproving targeting by helping consumersinterface with marketers most likely to providerelevant promotional messages. Manypermission-marketing firms (e.g. yesmail.com-

now part of the business incubator, CMGI) claimcustomer response rates in the region of 5-20%and since most use e-mail and/or mobiledevices, they are not affected by themeasurement problems of banner advertising.

Since the ads arrive in the mailbox of theindividual, it is likely that more attention wouldbe paid to them in comparison to banners.


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Even though permission marketing can be

implemented in any direct medium, it has

emerged as a serious idea only with the

advent of the Internet.

The two reasons for this are:

(1) on the Internet, the cost of marketer-to-

consumer communication is low.(2) The Internet has enabled rapid feedback

mechanisms due to instantaneous two-way

communication.


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Motivation for permission marketing on the Web hasbeen the failure of the direct mail approach ofsending unsolicited promotional messages. The primeexample of this is unsolicited commercial e-mail orSpam (Cranor & LaMacchia, 1998).

Senders of spam realize three things- the cost ofobtaining a new e-mail address is minimal, themarginal cost of contacting an additional customer isnearly zero (Shiman, 1996) and it is easy to deceivethe consumer.

Individuals provide their addresses at these places forother purposes and hence, this violates their privacyrights (Bloom, Milne & Adler, 1994).


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Milne and Gordon (1993) discuss the role ofcustomer permission along with volume,targeting and compensation in the context ofdirect mail. However, their reference is to an

individual's providing a direct marketer thepermission to share his or her personalinformation with others. In other words, theysee permission as a tool to establish privacyrights rather than to enhance targeting.

Gilmore and Pine II (1997) had also earlieridentified collaboration between marketers andconsumers as one form ofone-on-one marketing.


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Sheehan and Hoy (2000) also suggest thatpermission marketing may be a technique toreduce privacy concerns of individuals. Eventhough they do not use the term permission

marketing, Milne, Boza and Rohm (1999) proposethat opt-in methods (can act) as a trust-building alternative to more effectiveinformation control.

mobile advertising solutions still fail to solve the

user experience and business model issues thatstand in the way of widespread wireless industryacceptance of mobile advertising (Barwise &Strong, 2002) (Gupta, Kumar and Bhattacharya2004).


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To study the perception and preferences of

the people for permission marketing.

To find out the factor(s) that influences theconsumers perceptions about permission

marketing through email and SMS.

To explore the possible better ways in which

permission marketing can be carried out

through digital media.


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This study is confined to the permission

marketing in electronic media only.

Permission marketing in print media is notconsidered in the study..

The study is confined to Anand,

Vallabhvidhyanagar and Baroda city only.


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Research Method: exploratory

Sample Selection: Anand and V.V. Nagar, Baroda

Sample Size: 200

Sampling Method: Convenience Sampling

Survey Method: Personal Interview, Email

Research Instrument: structured Questionnaire


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It has been assumed that sample of around

two hundred would represents the whole

population.

The information given by the respondent is

unbiased.


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Research will use two types of data:

1. Primary data 2. Secondary data

1) PRIMARY DATA:

Primary data will be collected through

predesigned structured questionnaire.

2) SECONDARY DATA:Secondary data will consist of different

literatures like books which are published,

articles, internet and websites.


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Questionnaire printing : Rs. 200

Travelling expenses : Rs. 500

Miscellaneous Expenses :Rs. 300

Total :Rs. 1000


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Field and Laboratory Experiments

Laboratory experiment

An experiment conducted in a laboratory or other

artificial setting to obtain almost complete control

over the research setting.

Field experiment

An experiment conducted in a natural setting, where

complete control of extraneous variables is not

possible. Controlled store test

A hybrid between a laboratory experiment and a test

market; test products are sold in a small number of

selected stores to actual customers.


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Internal Validity

Validity determined by whether an

experimental treatment was the sole cause of

changes in a dependent variable or whether

the experimental manipulation did what it was

supposed to do.


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History

History effect

Cohort effect

Maturation

Testing

Testing effect

Instrumental effect

Selection

Mortality (or sample attrition)


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External Validity

The ability of an experiment to generalize

beyond the experiment data to other subjects

or groups in the population under study.


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Trade-Offs Between Internal and External

Validity

Often it is necessary to trade off internal

validity for external validity because alaboratory experiment provides more control

Laboratory experiments with many controlled

factors are high in internal validity, while field

experiments have less internal validity but

greater external validity.


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Basic experimental design An experimental design in which a single

independent variable is manipulated tomeasure its effect on another single dependent

variableSymbolism for Diagramming Experimental

DesignsX= exposure of a group to an experimental

treatment O = observation or measurement of the

dependent variable

R = random assignment of test units


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Quasi-Experimental Design

A research design that cannot be classified as a

true experiment because it lacks adequate

control of extraneous variables.


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Three Examples of Quasi-Experimental

Designs

One-shot design

An after-only design in which a single measure isrecorded after the treatment is administered.

One-group pre-testpost-test design

A quasi-experimental design in which the subjects in

the experimental group are measured before and after

the treatment is administered, but there is no controlgroup.


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Static group design

An after-only design in which subjects in the

experimental group are measured after being exposed

to the experimental treatment and the control group

is measured without having been exposed to theexperimental treatment; no premeasure is taken.

Pre-testpost-test control group design

A true experimental design in which the experimental

group is tested before and after exposure to the

treatment and the control group is tested at the sametwo times without being exposed to the experimental

treatment. Random assignment of subjects and

treatment occurs.


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Post-testOnly Control Group Design

An after-only design in which the experimental group

is tested after exposure to the treatment and the

control group is tested at the same time without

having been exposed to the treatment; no pre-measure is taken. Random assignment of subjects and

treatment occurs.

Solomon Four-Group Design

A true experimental design that combines the pre-

testpost-test with control group design and the post-testonly with control group design, thereby providing

a means for controlling the interactive testing effect

and other sources of extraneous variation.


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Completely Randomized design

Used when the researcher is interested ininvestigating the effect of one independent variable.

This design does not take into consideration theinfluence of possible extraneous factors such ascompetitors prices , weather conditions , size of

stores etc.

This design presupposes that these possible

extraneous factors have an equal influence on all test

units. This design is used because of its simplicity & it is

inexpensive to conduct.


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Randomized block design In this design the researcher has identified a single

extraneous factor that he or she thinks might affectthe test units response to the treatment.

Hence the researcher will attempt to isolate that

extraneous factor by blocking out its effects.

Latins square design

It attempts to block out the effect of two extraneousfactors.

It is more efficient and more complex to administer.Hence.

the researcher will attempt to isolate that extraneousfactor by blocking out its effects.

Hence the researcher will attempt to isolate thatextraneous factor by blocking out its effects.


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Factorial design

An experiment that investigates the interaction oftwo or more variables on a single dependent

variable.


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THANK YOU

Permission MarketingFinal

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