1. Using email for Marketing ISPA 8 September 2004 John Arnesen

2. Acknowledgement – Marketing Federation of Southern Africa Background IPSA requested that a representative of the Marketing Federation of Southern Africa present the mfsa Guideline on using email for marketing to this conference IPSA requested that a representative of the Marketing Federation of Southern Africa present the mfsa Guideline on using email for marketing to this conference –www.mfsa.co.za –mfsa setting up GAMPP (Generally Accepted Marketing Principles and Practice) which would include this guideline.

3. Acknowledgement – Marketing Federation of Southern Africa Background continued GAMPP GAMPP –Codes, Standards, Legislation, Guidelines, Best practice. First edition 2005. –Profession is gaining substance (teeth) Also wanted a non-technical marketer. Also wanted a non-technical marketer. –Professional member of mfsa –Chartered Marketer –Commercial perspective –Still in a strategic marketing role at SAQA

4. Acknowledgement – Marketing Federation of Southern Africa The Marketer’s perspective

5. Acknowledgement – Marketing Federation of Southern Africa Consider Mercedes vs BMW Mercedes vs BMW ABSA vs Standard Bank ABSA vs Standard Bank Vodacom vs MTN Vodacom vs MTN Pick‘nPay vs Checkers Pick‘nPay vs Checkers SAA vs British Air SAA vs British Air Castle vs Windhoek Castle vs Windhoek All actually very similar ito specifications, performance and price All actually very similar ito specifications, performance and price

6. Acknowledgement – Marketing Federation of Southern Africa Differentiation In addition to providing quality and value they maintain and grow market share by continuously enhancing: In addition to providing quality and value they maintain and grow market share by continuously enhancing: –Brand equity (perception) –Experience (sensory) –Design (look and feel) The digital medium provides new and exciting ways to do this The digital medium provides new and exciting ways to do this

7. Acknowledgement – Marketing Federation of Southern Africa

8. Marketing paradigms!

9. Acknowledgement – Marketing Federation of Southern Africa Paradigm 1 20 th Century 20 th Century –Customer was satisfied with tangibles. 21 st Century 21 st Century –Tangibles are a given! Intangibles will provide the significant differentiator

10. Acknowledgement – Marketing Federation of Southern Africa Paradigm 2 20 th Century 20 th Century –Idea –Product –Market –Sell –Happy consumer 21 st Century 21 st Century –Understand customer –Understand need –Develop solution –Present and Satisfy –Receive payment

11. Acknowledgement – Marketing Federation of Southern Africa Paradigm 3 20 th Century 20 th Century –The important things were Value for money Value for money Good service Good service reliability reliability 21 st Century 21 st Century –The important things are Values of the corporation Values of the corporation Relationship with the community Relationship with the community Integrity/reputation Integrity/reputation

12. Acknowledgement – Marketing Federation of Southern Africa Marketing today Way beyond the 4 P’s Way beyond the 4 P’s –Product, Price, Promotion, Place Is both a Science and an Art Is both a Science and an Art –GAMPP Is becoming a profession in its own right Is becoming a profession in its own right –4 Std Based Q’s on NQF 7 plus Professional status CM(SA)

13. Acknowledgement – Marketing Federation of Southern Africa Marketing perspectives Just like Finance: Marketing is everyone’s responsibility Marketing is everyone’s responsibility Marketing is disciplined Marketing is disciplined Marketing requires a unique set of resources Marketing requires a unique set of resources Marketing has a range of sub functions Marketing has a range of sub functions Marketing is measurable Marketing is measurable

14. Acknowledgement – Marketing Federation of Southern Africa Marketing scope Research Research –Needs, Trends, Opportunities Strategy Strategy –Position, Branding, Products/Services, Packaging, Channels, ROMI Communications Communications –Above the line, Below the line, PR Customer Management Customer Management –Retention, Acquisition, Service, Data

15. Acknowledgement – Marketing Federation of Southern Africa The guideline….

16. Acknowledgement – Marketing Federation of Southern Africa Understanding the Guideline Mfsa Corporate and individual members subscribe to the code of conduct Mfsa Corporate and individual members subscribe to the code of conduct –Moral obligation to comply with all codes and guidelines –Mfsa, if need be, will take action against a member. (self regulation) –mfsa adopts a positive approach of encouraging compliance

17. Acknowledgement – Marketing Federation of Southern Africa Email a new form of Direct Mail? Initially thought by most marketers to be similar. In fact just a new medium similar to Print, Radio, TV and Outdoor! Initially thought by most marketers to be similar. In fact just a new medium similar to Print, Radio, TV and Outdoor! mfsa Committee (born out of the DMA) which I joined concluded that email was in fact significantly different and therefore need a separate guideline. (to counter SPAM) mfsa Committee (born out of the DMA) which I joined concluded that email was in fact significantly different and therefore need a separate guideline. (to counter SPAM)

18. Acknowledgement – Marketing Federation of Southern Africa Core differences in business (my perspective) No effective filters No effective filters –Post and for that matter all other mediums can be screened out Cost insignificant Cost insignificant Invades time I could be using to do other work Invades time I could be using to do other work

19. Acknowledgement – Marketing Federation of Southern Africa Reason for guideline Excellent tool that unless well managed would be “blocked” out of the marketers tool kit Excellent tool that unless well managed would be “blocked” out of the marketers tool kit –Some worrying trends in that regard already Educate the marketing community of how best to make use of the tool. Educate the marketing community of how best to make use of the tool. –Still a long way to go…

20. Acknowledgement – Marketing Federation of Southern Africa SPAM is… Unsolicited email - in other words there has been no prior relationship between the two parties Unsolicited email - in other words there has been no prior relationship between the two parties Can be done individually or in bulk Can be done individually or in bulk All commercial (advertising and promotions) communications included in the definition All commercial (advertising and promotions) communications included in the definition

21. Acknowledgement – Marketing Federation of Southern Africa Upfront requirements Express verifyable permission Express verifyable permission Clear understanding of purpose Clear understanding of purpose Choice to opt out simple Choice to opt out simple Ongoing choice to opt out Ongoing choice to opt out

22. Acknowledgement – Marketing Federation of Southern Africa Senders must also ensure…. Data bases are clean Data bases are clean Failures are regularly deleted permanently Failures are regularly deleted permanently Publish their privacy policy Publish their privacy policy Have a valid postmaster and abuse address Have a valid postmaster and abuse address Ensure email is not objectionable Ensure email is not objectionable

23. Acknowledgement – Marketing Federation of Southern Africa Bulk email senders must… Maintain complete and accurate records Maintain complete and accurate records Have a valid and workable removal procedure Have a valid and workable removal procedure Apply the same removal procedure per unique brand Apply the same removal procedure per unique brand The agent (if outsourced) complies as above The agent (if outsourced) complies as above

24. Acknowledgement – Marketing Federation of Southern Africa All marketing messages must include…. Accurate sender details Accurate sender details Valid contact information Valid contact information Clear honest subject line Clear honest subject line Automatic option for un-subscribing Automatic option for un-subscribing Authorisation if sent by agent Authorisation if sent by agent

25. Acknowledgement – Marketing Federation of Southern Africa Where responses are called for… The terms and conditions must be clear The terms and conditions must be clear This is especially important where personal data is requested. A specific message should be included stating that this data will not be used for other commercial activity. This is especially important where personal data is requested. A specific message should be included stating that this data will not be used for other commercial activity.

26. Acknowledgement – Marketing Federation of Southern Africa Senders must also… Use extreme caution when using third parties Use extreme caution when using third parties Focus on properly segmented customer groups Focus on properly segmented customer groups Respond promptly Respond promptly

27. Acknowledgement – Marketing Federation of Southern Africa Who needs to know this? Academics Academics Marketers Marketers IT Practitioners IT Practitioners Marketing industry service providers Marketing industry service providers –Research –Communication –Agents –CRM partners

28. Acknowledgement – Marketing Federation of Southern Africa Where do we stand? Extensive communication to mfsa members has been done Extensive communication to mfsa members has been done Also significant media exposure Also significant media exposure IT world is still leading the discussion! IT world is still leading the discussion! –IT world is introducing anti SPAM products Marketers by “osmosis” are integrating email into the marketing mix Marketers by “osmosis” are integrating email into the marketing mix –1998 IMM ran the first 3 day course on e Marketing!

29. Acknowledgement – Marketing Federation of Southern Africa Closing comments Too valuable to loose Too valuable to loose Lots of educating still needs to be done Lots of educating still needs to be done Blow the whistle where needed Blow the whistle where needed Work together with all the parties in the value chain Work together with all the parties in the value chain Compliance become a natural a way of doing business Compliance become a natural a way of doing business

30. Acknowledgement – Marketing Federation of Southern Africa Thanks for listening Questions Remember www.mfsa.co.za