Today’s Journal of Marketing Debate,hosted by Jeremy Maggs; focused on Direct Marketing or Marketing Direct, titled – “Is traditional marketing as we know it dying, or is it dead?”

The panel included:

• Debi Loftie-Eaton – Managing Director, Wunderman SA
• Brian Mdluli – CEO, DMA
• Michelle Perrow – Strategic Director, Lesoba Difference
• Andrew Ambrogioni – CEO, Action Ambro’s
• Howard Fox – Marketing Director, Gordon Institute of Business Science (GIBS)

Direct Marketing is argued to be a properly developed and strategic discipline (direct marketing can be one of the most effective brand builders in the mix); and it has moved beyond simply the notion of paper flyer’s into a highly sophisticated database process, where customer loyalty is maintained and rewarded and potential customers are tracked down and targeted with the precision of a stealth bomber.

Here are some of the important points from today’s marketing debate:

Howard Fox – Marketing Director, Gordon Institute of Business Science (GIBS)

• Weakness of Direct Marketing is ‘mass personalisation’ by data bases e.g with sending letters to consumers – they don’t speak to the individual
• Direct Marketing is about person communication.
• Direct mail revolution should not focus on being channel driven.
• Creative restraints exist that exceed the ability of the database limiting the information the database can get from an individual – “Marketers can never claim to know the consumer fully from 5-10 questions in the database”, Howard Fox.
• Direct Marketers want involvement and participation in the brand – getting a more personal participation with the consumers will lead to effective Direct Marketing.

Andrew Ambrogioni – CEO, Action Ambro’s

• Everything we do is direct marketing – brand advertising – uses every single channel we utilize.
• “Advertising is about being intrusive and let’s not act as though you will create a long lasting relationship” – Andrew Ambrogioni.
• Direct Marketing is not complicated and it’s about reaching the market in the most optimum way.
• Advertisers should test and re-test with direct marketing – some companies are afraid to put a significant amount of their budget into Direct Marketing.
• Data analysts should be marketers and they should understand the data collected.
• Case Study: Direct mail and digital marketing is working – proven correlation with visits to the website.

Debi Loftie-Eaton – Managing Director, Wunderman SA

• Direct Marketing aims to change behavior of the market.
• Direct Marketing gives accountability to the advertisers – above and below the line (you know who you are talking to and what the results are).
• Marketers are not investing in proper data base back-end that gives insights that are relevant to understand the consumer better.
• A lot of direct marketing crosses the border by getting all information through continuous data collection – not a once off event.
• Case Study: Microsoft product launch worked well with above the line marketing.
• Data strategy is important to target the market efficiently.
• Digital and Social Media in the future will become important for Direct Marketing.

Michelle Perrow – Strategic Director, Lesoba Difference

• Direct marketing is changing – companies need to understand and communicate well with the market (be a honest and credible brand).
• Advertisers are afraid of using Direct Marketing due to the accountability aspect.
• Self profiling – engage with the consumers (what are your likes, what are your dislikes) so you can understand them more.
• Case Study: Exclusive Books have a very robust database – consistent application process and constant investment in the database.
• Important to collect data with ‘relevance’ – not just collecting data.
• In the future all marketing will be Direct Marketing.

Brian Mdluli – CEO, DMA(Direct Marketing Association)

• Direct marketing is an industry on its own- it has grown over recent years.
• Consumers want to understood and Direct marketers want to be treated as individuals not just a consumer
• Brands can get proven results on Direct marketing RIO.
• Direct Marketing is a ‘multi–channel’ industry using TV, internet for example.
• Direct marketing is trying to drive education to the industry and community.
• DMA is moving towards ‘identifying the consumer’ and their needs.
• Privacy Issue: there is a problem of buying and selling of stolen database – DMA is addressing the issue.

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The next Journal of Marketing Debate: “Cause Related Marketing” -Thursday 19 August.