DIRECT MARKETING ASSOCIATION OF SOUTH AFRICA

A JOURNEY THROUGH THE REGULATORY FRAMEWORK

What is direct marketing?

“Direct marketing is the interactive use of marketing media to stimulate an immediate behavior modification in such a way that the behavior can be tracked, analyzed, and stored on a database for future retrieval and use”.

Bob Stone

Direct Marketing Association3

Capitalizing on the use of data and media channels to enhance the end user experience and maximize ROI

What is direct marketing?

A recession is a terrible thing to waste!

Disclaimer

• The views expressed on this presentation are my own and do not necessarily represent the views of the association

• The presentation should serve as a guideline and not legal advise.

• If this was legal advice I would have sent you invoices by now!

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I LIED!Consumer Protection Act

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Our journey today1. Brief history of the DMA• Laws that affect Direct Marketing

The Constitution and Bill of Rights Act 108 of 1996The Promotion of Access to Information Act no 2 of 2000The Promotion of Administrative Justice Act no 3 of 2000Electronic Communications and Transactions Act no 25 of 2002 Electoral Act of 1998Identification Act of 1997Unfair Discrimination and Promotion of Equality Act of 2000Unfair Businesses Act of 1988The Lotteries Act no 57 of 1997National Credit Act no 34 of 2005Consumer Protection ActProtection of Personal Information Bill

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Brief History of the DMA• Re-Founded in November 2005• The DMA currently has 291 members and 10 founder

members• Members range from agencies to large corporate

companies and service providers• Our 10 founder members are AVIS, HOME CHOICE,

ABSA, FNB , NEDBANK, MTN, SAPO, PLATINUM e-PRODUCTS, COMPUTER FACILITIES AND RCS GROUP

• The DMA currently holds self regulatory status from the DTI

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More media = greater sophistication- more laws to deal with

mail

TV

Radio

Print

Unaddressed

E-mail E-Commerce

Mobile

Telephone Specialized printWord of mouth

Sales promotionSponsorship

E-mail

12

DM-Driven Demand Adds 8.3% to US GDP

$1.2 trillionUS GDP

=14.1 trillion

DM Spend in 2007/2008Direct marketing tool Amount spent in 2007AMS R 100,000.00 SMS R 3,330,000,000.00 MMS R 338,423,437.50 DIRECT MAIL R 475,000,000.00 CATALOGUE R 1,500,000,000.00 CALL CENTRE R 1,000,000,000.00 DIRECT TO HOME R 1,665,400,000.00 INTERNET ADVERTISING R 254,000,000.00 ESTIMATED EXPENDITURE R 8,753,323,437.50 04/18/23

DM Spend in 2009-ESTIMATE

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Direct marketing tool Amount spent in 2009AMS R 500,000.00 SMS R 5,500,000,000.00 MMS R 1,000,000,000.00 DIRECT MAIL-SAPO R 575,000,000.00 CATALOGUE R 1,200,000,000.00 CALL CENTRE R 1,000,000,000.00 DIRECT TO HOME R 2,000,000,000.00 EMAIL AND DIGITAL R 500,000,000.00 INTERNET ADVERTISING R 300,000,000.00 DATA BASE AND ANALYTICS R 500,000,000.00 MAIL HOUSE AND INSERTS R 100,000,000.00 AGENCY FEES R 2,500,000,000.00 ESTIMATED EXPENDITURE R 14,950,500,000.00

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‘DON’T COUNT THE PEOPLE YOU REACH, REACH THE PEOPLE WHO COUNT’

- Reimer Thedens

Never before has one industry been hit by so many Laws!!- lets start our journey through the law jungle!

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Consumer Protection Act 68of 2008

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RIGHT TO STOP UNWANTED MARKETING MESSAGES- WE DON’T CALL IT JUNK MAIL.

SECTION 11

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TIME TO CONTACT THE CONSUMERS

SECTION 12

EXPIRY AND RENEWAL OF FIXED TERM AGREEMENTS

SECTION 14

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COOLING OFF PERIOD – 5 WORKING DAYS

SECTION 16

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PLAIN AND UNDERSTANDABLE LANGUAGE

SECTION 22

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DISCLOSURE OF PRICE AND SERVICES

SECTION 23

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DISCLOSURE OF INTERMEDIARIES

SECTION 27

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GENERAL STANDARDS OF MARKETING

SECTION 29

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Honest? Win a Nissan 1400

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BAIT MARKETING- GOODS ADVERTISED MUST BE AVAILABLE

SECTION 30

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NEGATIVE OPTION MARKETING

SECTION 31

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DELIVERING GOODS WITHOUT PAYMENT

SECTION 32

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CATALOGUE MARKETINGSECTION 33

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TRADE COUPONS AND PROMOTIONS VOUCHERS

SECTION 34

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LOYALTY PROGRAMMES- INTENTION TO HONOUR PROMOTIONS

SECTION 35

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PROMOTIONAL COMPETITIONS

SECTION 36

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REFERRAL SELLING/MARKETING

SECTION 38

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UNCONSCIONABLE CONDUCT

SECTION 40

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CONSUMERS RIGHT TO DEMAND QUALITY PRODUCTS AND SERVICE

SECTION 54

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GUARANTEES AND WARRANTEES

SECTION 56

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LIABILITY FOR DAMAGE TO GOODS

SECTION 61

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• Each individual employed in DM Advertising creates increased demand for more than five other employees in production…*

The Importance of DM in our Market

Siyabongabrian@dmasa.org

www.DMA121Club.com

www.dmasa.org0861 DMA DMA

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