Presentation to the Diploma Ceremony University of Parma, 4 December 2003

1. Presentation to the Diploma CeremonyUniversity of Parma, 4 December 2003 by Alastair Tempest Director General Federation of European Direct & Interactive Marketing

2. This presentation will cover: • Trends in direct marketing, customer relations & integrated marketing • Statistics on DM • Some futurology • The new e-communications revolution • Beware regulations! • Things to think about

3. Where is Direct Marketing going? • DM aimed to acquire and to sell • It has developed to become interactive – embracing retention, CRM, brand building, as well as information, acquisition, offer ….. etc. • But, as always, it is long term. “DM is dead – long live DM!”

4. Integrated, Multi-channel Marketing • Move from selling/offer to: - retention techniques, and - brand building Requires new skills to build brands through DM

5. The Customer Journey Targeting Acquisition Advocacy Conversion Retain Activate Cross Sell Upsell

6. Multi-channel – Following the Customer Journey • Using the media mix intelligently to reach the customer; attract; hold; “cuddle, love and protect”. • Through use of media and marketing disciplines – DM, advertising, sales promotions, loyalty schemes, sponsorship, viral campaigns, games, etc. • The secret is in the mix

7. Brand/ Product Awareness R & I Call toAction Purchase Handover After sales Cross-sell /upsell Follow-up ActivityMedia ¶ ¶ ¶ TVAdvertising ¶ ¶ ¶ PRESS ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ INSTORE ¶ ¶ ¶ ¶ BROCHURES ¶ ¶ ¶ ¶ ¶ ¶ ¶ DIRECT MARKETING ¶ ¶ ¶ RADIO ¶ ¶ OUTDOOR/ CINEMA ¶ ¶ ¶ ¶ ¶ ¶ ¶ INTERNET ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ EMAIL Source: harvestdigital@

8. European DM Spend in Euro million Source: FEDMA 2002 Survey on Direct and Interactive Marketing Activities in Europe

9. Growth of DM Expenditure in Europe(Euro millions) Source: FEDMA 2002 Survey on Direct & Interactive Marketing Activities

10. United States Central Asia Rest of North America Sub- Sahara South America Western Europe Middle East Pacific Rim Take Off Growth Highly Developed Embryonic Current State of Direct Mail Development TIME Source: Study done for the UPU by Arthur D. Little

11. Potential DM Estimates by Region 2005 Source: Study done for the UPU by Arthur D. Little

12. Paper Power will continue… • Colour brochures – large • Catalogues • When signature (still) needed • When there’s a gift in the package • People who hate technology • People who are poor • People who like paper • People who want privacy … but… Source: Trends Analysis by Dr. Patrick Dixon

13. Internet Ultimate Direct Marketing Tool • Banner adverts in response to web activity • Instant testing of slogans • Total data on clicks/sales Source: Trends Analysis by Dr. Patrick Dixon

14. E-Mail Marketing Trends Study Source: Arial Software

15. E-Mail Marketing Trends Study 12% 12% 76% Source: Arial Software

16. Book download: 0.25 secs 20 page report: 0.01 secs 20,000 emails: 120 secs 2 hour Videolink: 7200 secs The Future is Video How will I use 2 megabits per second? Source: Trends Analysis by Dr. Patrick Dixon

17. Digital TV – Total Response • Every household in UK by 2007 • Web/TV becomes one • Interactive personal adverts • Advertising becomes infotainment • Client knowledge is everything Source: Trends Analysis by Dr. Patrick Dixon

18. E-Commerce, “Spam and Cookies” • E-Commerce Directive (2000) being implemented. • EC in major spam debate. • Electronic Communications & data privacy directive adopted 2002. • “Soft opt-in” for all electronic marketing communications (e-mail, SMS, etc.). • Opt-out if the data was collected “in the context of a sale of a product or a service”. Does this mean that a sale must have been completed? • Warnings and opt-out for cookies.

19. Main Government AffairsIssues 2003 • Data Protection • Marketing and Commercial Communications, Distance Selling and Consumer Credit • Postal Services • E-Commerce • Self-Regulation

20. What’s FEDMA’s role in EU • EU Legislation proposed by the bureaucrats (The Commission). FEDMA uses its contacts to influence the drafting. • EU proposals go to the European Parliament – FEDMA lobbies the EP constantly. • EU proposals also go to the Member States (Council of Ministers) – FEDMA co-ordinates the national lobbying by the national DMAs. • Finally, we help with advice and provide a network for the national implementation of the EU laws.

21. FEDMA’s Code In June we completed 7 years of negotiations with the national data protection authorities (DPAs) and EC on a general code* We will now start negotiations on annexes covering specific issues (on- line DM, phone marketing, etc.) This is what’s called “co-regulation”. We hope it will reduce the national differences in DP rules. * Copies available on request or on our website (www.fedma.org)

22. Thought for the day: In marketing everything has its own values and differences: - Products differ - Producers/brands differ - Customers differ - Media/communications differ - Economics change “Change is the only constant factor!”

23. Issues we need to look at  Research: we need more generic research on DM media. There’s a major lack of good research (e.g. even on mail).  Promotion: we need more promotion of DM as a discipline (are we not becoming “marketing”?).  Education: we need more education – how can we expect young stars to shine without education (there are fewer professors of DM in Europe than in Illinois!)  Inform: Consumers also need to be assured, their trust and confidence gained – and kept!  Best practices, etc.

24. Thank you for listening!Every Success in your future & don’t forget….We are your voice in Brussels - help us to protect your interests! FEDERATION OF EUROPEAN DIRECT MARKETING (FEDMA) 439 Avenue de Tervuren B-1150 Brussels - Belgium Tel. +32 2 779 42 68 - Fax + 32 2 779 42 69 http://www.fedma.org info@fedma.org