Research Proposal

On
The impact of direct marketing in increasing sales: a case study of
HSBC Bank plc, UK
SUBMITTED BY
Student Name: Bhavana Ketankumar Dave
Student No/ID: 140331/1

Submitted in partial fulfilment of the requirement for the degree in

MA in Marketing and Innovation
In collaboration with Anglia Ruskin University
and the London School of Marketing

Table of Contents:
Name of the content
Title Page
Table of contents
Executive Summary
1.1. Introduction and background of the study
1.2. Background of the case studied organization
1.3. Research aim
1.4. Research Objective
1.5. Research questions (RQ)
1.6. Rationality of the study
2.1. Preliminary literature review
3.1. Research design and philosophy
3.2. Data collection methods
3.3. Sampling methods and data collection
3.4. Data processing and presentation
3.5.Ethical Issues
4. Time Frame
Reference and Bibliography

Executive summary:

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The primary focus on direct marketing strategy is to build close and interactive relationship
with the customers by an organization and thus to increase sales of its products and services
to the customers.
The key objective of conducting this research would investigate and critically analyse the
major impacts of direct marketing strategies in increasing sales in an organization using a
case study of HSBC bank plc within the UKs financial service sector.
The researcher will obtain and reveal the most common and relevant issues and concerns that
represent that direct marketing strategies are playing vital role in increasing sales in an
organization like increasing sales at HSBC bank plc within the UKs financial service sector.
The information for this research would obtain through case studied organization through
interview, survey and document study and these data depict that direct marketing strategies
have key roles and contributions to increase sales of financial products and services at HSBC
bank plc within the UKs financial service sector.

1.1. Introduction and background of the study

The concept and practice of direct marketing strategies are most key aspects for an
organization. These mainly focus on interacting with customers by an organization directly in
relation to influence them to make purchase decision at the organization (Meisner, 2006).
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For instance, Lisa (2010) has stated in marketing management of an organization the concept
and practice of direct marketing is getting very common and it is growing faster than almost
other marketing activities around the global markets.
It has been recognised that there are several impacts either positive or negative of the direct
marketing strategies in an organization and this study is designated to explore and analyse the
positive impacts of direct marketing strategies in increasing sales in an organization using a
case study of HSBC Bank plc within the UKs financial service sector.
Marketing relationship recognizes each client as an individual, with their specific individual
needs. This is the basis to personalize every interaction with a client based on their interests
and preferences derived from the knowledge that they have about it (Henning-Thurau and
Hansen, 2000).
As an example, Henning-Thurau and Hansen (2000) have mentioned that the results are
messages, offers and proposals relevant to the customer, adding value to the relationship,
reinforcing the link with the brand and improve communication efficiency.
The direct marketing as such is an action to each customer. In the case of financial
institutions, being intangible products and services, difficult to differentiate customer, sales
promotion aims to increase sales quickly and short-term, through incentives such as gifts,
giveaways etc. within an organization (Lisa, 2010).
According to Liikanen (2012), it has been recognized that there is increased use of direct
marketing activities all over the world. Compare to other forms of direct marketing the
practice of direct mail and internet has been getting very common and increasingly using by
organizations across the world. In recent years banks have perceived the need to move from
mass marketing to a more personalized marketing (Liikanen, 2012).
According to Ekinci et al., (2014) marketing is also the prime tool of the banking sector
because it satisfies customer benefit and deals with both the banker and the customer. It deals
with the customer by providing their deep wants and desires and also the banker because it
assists in identifying and targeting potential clients. This is because it efficiently allocates
resources and has a great impact on other aspects of economic and social life. The power of
marketing is essentially the same but there may be some qualitative and quantitative
differences like fewer products and services moving through the system and various types of
services offered.
This research is based on the use of direct marketing strategies at HSBC and its impact on its
turnover and market development within the UKs financial service sector (Bennett &
Kottasz, 2012, p.147). The aim of this research is to identify the external factors that
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influence the adoption of promotional strategy at HSBC, and to provide the recommendations
to escalate its promotional strategies to increase its market share through the market
penetration and market development.
1.2. Background of the case studied organization:
HSBC, one of the worlds largest banking and financial services organizations. HSBC has
6,300 offices in 75 countries and territories and 54 million of customers in its global
operation (HSBC Group, 2014).
A key focus of HSBC bank is to become the worlds leading international bank and for this
reason the organization has developed and implemented its business strategies based on two
long-term trends such as (HSBC Group, 2014):

It has been revealed that the world is becoming more connected because of world trade
activities including globalization and industrialization of the world. HSBC bank has
planned to expand its international markets in response to the world trade activities. For
instance, it has been identified that HSBC bank is expecting 35 markets to generate 90%
of the world trade growth as well as similar percentage of cross-border capital flows at
the organization.

It has been identified that HSBC has planned to extend their size four times higher than
current capacity by 20150 in order to facilitate different demographic peoples and this can
be termed as a key business strategies to expand its markets all over the world.

As an example, the researcher would like to mention following marketing strategies at HSBC
bank

Branding: This marketing strategy is aiming to make HSBC brand as the worlds leading
brand for corporate social responsibility and providing excellent customer services.

Personal financial services: This marketing strategy is driving tool for the bank that help
them to reach more customers at an individual level. Thus, the organization gets an
opportunity for intense marketing scope.

Consumer finance: This marketing strategy is extending the business at large scale and
help the organization for penetrating more customers.

Commercial banking: This marketing strategy is playing important role in international

customer base through effective relationship management; and

Private banking: This primary focus of this marketing strategy at HSBC is to provide
highest value or personal clients around the globe.
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However, HSBC that is operating internationally is experiencing some difficulties to acquire

a sensible market growth and market share in new markets because of its limitations on using
direct marketing strategies at the organization.

1.3. Research aim

This study aims is to determine the impact of direct marketing strategies in increasing sales
by focus on the case of HBSC that can regard as the primary aim of the study. The secondary
aim of the study is to focus on the significance of direct marketing for the purpose of building
stronger brand image in the UKs financial service sector by HSBC Bank plc.
1.4. Research objectives
The most common and important objectives for the research study would be as follows:

To identify and analyse the major factors that affect the use of direct marketing strategies
at HSBC Bank plc;

To identify and analyse factors that needed to be included to increase sales at HSBC Bank
plc;

To analyse and evaluate the importance of direct marketing strategies to build stronger
brand image in the UKs financial service sector by HSBC Bank plc;

To assess and evaluate the impact of direct marketing in increasing sales at HSBC Bank
plc within the UKs financial service sector; and

To make or develop appropriate recommendations in line with issues and concerns

derived from the literature review and primary research works of the role and importance
of direct marketing in increasing sales at HSBC Bank plc within the UKs financial
service sector.

1.5. Research questions (RQ)

The primary focus of this research project will be identifying and analyse the impacts of
direct marketing strategies in increasing sales using a case study of HSBC bank plc within the
UKs financial service sector. So, the researcher will use following two major research
questions:
RQ1: How the direct marketing for banking services in the HSBC affects its turnover?

RQ2: What are the external factors influencing the choice of adaption of direct marketing
strategy for the HSBC?
For answering the RQ1, the direct marketing of HSBC will be taken as independent variable
while the profits and turnover will be taken as dependent variables.
For RQ2, the external factors that influence the direct marketing strategy of HSBC will be
taken as independent variable while the adoption of direct marketing strategy will be taken as
dependent variable.
1.6. Rationale for the study
As the competition in every field is aggressively increasing and new entrants in the market
are popping up, it has become a challenge for the existing players in the market to do
aggressive marketing for their survival (Ekinci et al., 2014, p.17). This research is based on
the impact of direct marketing strategy on the sales of HSBC Bank PLC UK, which will
highlight that how HSBC bank can survive and grab a good market share in UK banking
industry by using the direct marketing strategy.
2.1. Preliminary literature review:
According to Nash (2000) a process of communicating information of product/service of an
organization to target customers through providing physical marketing materials is called
direct marketing within the organization.
In similar view, Mullin (2002) has mentioned that direct marketing simply refers to marketing
of a product and/or service to a target customer through direct contact with the customer by
an organization. In addition, Mullin (2002) has stated that a communication practice between
the organization and the customers with no intermediary agencies and organizations while
delivering message.
In this part, the author would like to mention some key definitions and concepts of directing
marketing strategies in an organization as follow:
Bird (2000) described direct marketing as an advertising activity which creates and
exploits a direct relationship between an organization and its target customer as an individual
within its defined markets.
The Direct Marketing Association (DMA) direct marketing is the process of achieving
marketing objectives by an organization to make a direct contact with its target customers. In
simply, direct marketing is refers to the process of delivering message or information of

product/service to target customers by an organization without an intermediary person or

indirect media at the organization.
The stronghold of banks has for the most part taken quite a while, and not many have
accomplished a solid position on outside markets. Promotion of financial services is an
understudied range (Peck et.al, 2013). As stated by Brassington and Pettitt (2000), it can be
said that direct marketing has key positive impact on the long-term relationship between an
organization and the customers. They have mentioned that direct marketing is an intelligent
arrangement of marketing materials and marketing activities as well as use most related
marketing channel to reach to target customers.
In addition, Brassington and Pettitt (2000) have mentioned that direct marketing has been
playing vital positive impact on creating customer database that has been playing outstanding
role to build or create long-term and strong relationships between the organization and the
customers.
Lee (2002) stated that there are innovative efforts in the marketing management of
organizations and for this reason most of the organizations have been focusing towards direct
marketing and administrations as telephone, mail, or machine transactions. This has been
providing wider opportunities and chances to organizations to reach to wider segment of
customers and thus to increase its sales of products and services within the marketplace.
HSBC is investing large amount of money for direct marketing activities as strategic drift
within the UKs financial service sector (McElhatton, 2011). As an example, McElhatton
(2011) has mentioned that HSBC is diverting money into some direct marketing activities
like responsive press advertising and targeted communications rather than television
advertisement.

3.1. Research design and philosophy:

According to Saunders et al. (2009) research philosophy means the researchers view towards
the object and reality of the subject within the proposed research project. A particular view of
the researcher is most common and important in order to collect most relevant and
appropriate data and information from different sources.
According to Saunders et al. (2009) there are four major research philosophies that include:
positivist, realist, interpretivist and post-positivist.

For the purpose of collecting and deriving both qualitative and quantitative data in the field of
direct marketing strategies and their impacts in increasing sales of financial products and
services at HSBC bank plc within the UKs financial service sector, the researcher will
follow positivist research philosophy (a way of gaining knowledge from positive verification
of observable experience that holds key principles of objective reality.
The mixed research approach will be used in this research project for the purpose of
collecting both qualitative and quantitative data about direct marketing strategies and their
impacts on increasing sales of financial products and services at HSBC bank plc within the
UKs financial service sector.

3.2. Data collection method:

This research project would be an exploratory research and aiming to collect both qualitative
and quantitative data about the impact of direct marketing strategies in increasing sales in an
organization such as at HSBC bank plc in the UKs financial service sector. Survey using a
questionnaire with the customers at different branches of HSBC located in London, UK; and
semi-structured interview with the management personnel at HSBC bank at London, UK
have been used for the purpose of collecting both qualitative and quantitative data.

3.3. Sampling method and sample size:

Simple random sampling will be used for the purpose of selecting sample in survey and thus
to collect data about the impact of direct marketing strategies in increasing sales at HSBC
within the UKs financial service sector.
3.4. Data presentation tools and techniques
In order to displayed data in research report and analyze it the researcher will use following
techniques:

Descriptive statistics to present interview results;

Tabulation to present quantitative data;

Graphical and diagrammatic presentation of the quantitative data; and

Discussion and explanation of the qualitative data.

So, each tool/technique was appropriate to make clear understanding on the impact of direct
marketing strategies in increasing sales in an organization using a case study of HSBC Bank
plc within the UKs financial service sector.

3.5. Ethical Issues

The researcher being an employee of the case study bank collection will be an easy approach
to the participants, which enables him to collect the primary data without any difficulties.
Moreover, the data has been collected on the permission of manager without violation of
privacy and confidentiality policies of bank.
In relation to complete this research project, the researcher will followed and maintained all
code of conduct and code of ethics during data collection and conducting both interviews and
survey for and also ask consent of the key interviewees for an instance, researcher has sent a
letter of informed consent to the authority of HSBC bank plc for the purpose of seeking
permission to conduct interview with management personnel and to carry survey with
customer at HSBCs branches.
4. Time Schedule:
The time schedule for conducting this research is illustrated below:
Key milestone

Week 1

Week 2

Week 3

Week 4

Week 5 Week 6 Week

7

Chapter

1:

Introduction
and
background
Chapter
2:
Literature
Review
Chapter

3:

Research
Methodology

10

Week
8-9

Chapter

4:

Analysis

of

Research
Findings
Chapter

5:

Conclusion and
Recommendati
on.
Printing

and

Binding
Final
Submission

References and Bibliography:

Bennett, R. and Kottasz, R. (2012). Public attitudes towards the UK banking industry
following the global financial crisis. International Journal of Bank Marketing, Vol-30, No-2,
pp.128-147.
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Berry, T. and Wilson, D. (2001). On target: the book on marketing plans. Eugene, USA: Palo
Alto Software, Inc.
Bird, B. (2000). Marketing insights and outrages: a collection of pithy pieces from marketing
magazine. London, UK: Kogan Page Limited.
Brassington, F. and Pettitt, S. (2000). Principles of Marketing, 2nd Edition, Harlow, UK:
Pearson Education Limited.
Creswell, J. W. (2013). Research design: Qualitative, quantitative, and mixed methods
approaches. London, UK: SAGE Publications Ltd.
Creswell, J. W., Vicki, L. and Clark, P. (2011). Designing and conducting mixed methods
research. 2nd edition. California, USA: SAGE Publications, Inc.
Henning-Thurau, T, and Hansen, U. (2000). Relationship marketing: gaining competitive
advantage through customer satisfaction and customer retention. Berlin, Germany: SpringerVerlag.
HSBC

(2014).

HSBC:

your

sales

strategy

[Online].

Available

at:

https://www.knowledge.hsbc.co.uk/tools-and-resources/article/your-sales-strategy [Accessed
date 16 June 2014].
Kitchen, P. J. and Pelsmacker, P. (2004). Integrated marketing communications: a primer.
Oxfordshire, UK: Routledge, an imprint of Taylor & Francis Group.
Lisa, S. (2010). Contemporary direct and interactive marketing. 2nd edition. New York, USA:
Pearson Education, Inc.
Mullin, R. (2002). Direct marketing: a step-by-step guide to effective planning and targeting.
London, UK: Kogan Page Limited.
Nash, E. (2000). Direct marketing: strategy, planning and execution. New York, USA:
McGraw-Hill Professional.
Saunders, M., Lewis, P. and Thornhill, A. (2009). Research Methods for Business Students.
5th edition. Harlow, UK: Pearson Education Ltd.
Wilson, J. (2014). Essentials of business research: a guide to doing your research project. 2nd
edition. London, UK: SAGE Publications, Ltd.
Zikmund, W., Babin, B., Carr, J. and Griffin, M. (2012). Business research methods. 9th
edition. Mason, USA: South-Western Cengage Learning.

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