Transcript ABC Presentation by Sarel du Plessis

MA(SA) – The Way Forward
ABC - Johannesburg
Monday, 14 November 2011
Adding value to your business
ABC Presentation 14 November 2011
ABC or ABA in the near future?
• Not sure what the 3rd Q sales figures are going to look like, but I bet
there aren’t many (or any) titles showing strong growth!
• Why is that?
• A visit to the AMA and attending many newspaper conferences
around the world (INMA/WAN-Ifra/etc) simply confirms what we all
know by now…
• There are more people (read audience) in the world online than
offline, and yes, the gurus now call newspapers, magazines and
outdoor OFFLINE – quite disturbing in a way
• What has simply not happened YET, is that advertising budgets
haven’t followed the audience
• BUT IT WILL…SOON!
ABC Presentation 14 November 2011
A few truths that keep print publishers
awake…
• The production costs and subsequent replacement costs of
newspaper and magazine printing presses and inserting equipment
are astronomical and therefore not sustainable
• The distribution costs and infrastructure required to reach the
audience is astronomical and therefore not sustainable
• The business model of newspapers in todays fast moving world is
flawed and the content of your morning newspaper is actually 12
hours or more old – the world doesn’t work that way any more
• The green issues of paper and saving trees as well as the carbon
footprints of the millions of vehicles required to distribute stock
• Broadband is on our stoep and will be widely available soon
• Mobile devices such as smartphones and tablets are changing the
way people consume ALL information, including news
• Digital cost of entry into content markets vs. printing and distribution
ABC Presentation 14 November 2011
So what is the future of offline media?
• Publishers will tell you that newspapers and magazines will be
around for a long time to come
• Prof Guy Berger pronounced some years ago that the last
newspaper will be read in 2041…and then added, MAY 2041
• Sales graphs of most newspapers – trended over a 20 year period –
will reveal the real facts, and especially during the last 10 years,
indicating an exponential decline in the newsprint platform
• I predict that newsprint has a 10 year window to still generate
revenue
• But the operative word in NEWSPAPER is NEWS and not PAPER
• Many brands will continue to live on in other and new exciting
platforms yet to come
• The concept of an aggregated total audience (ATA) excites
advertisers and should be used as a sales tool immediately
ABC Presentation 14 November 2011
And all of this freaks us out..a little
• In the USA there are now specialists treating people for Facebook
addiction – never heard of newspaper addiction!
• Your mobile phone is now closer to you than any other living or dead
thing in your life!
• Losing your mobile phone, and therefore your address book and
saved message, is cause for such stress that already 2 people have
reportedly committed suicide
• According to developers the solution to losing mobile phones or theft
of these very expensive devices is to….implant the sim somewhere
in your body and connecting it to your sensory network!
• Email is a thing of the past
• A new universal iconic language is slowing developing
ABC Presentation 14 November 2011
A timeline of marketing SA
CASE STUDY
What happened to the marketing industry in South Africa?
an OBJECTIVE view of
the situation, 2006.
MARKETINGWEB published this case study, submitted to them by an
industry insider who wishes to remain anonymous, in the interests of
learning lessons from it to apply to future bodies representing
marketers.
ABC Presentation 14 November 2011
It all started with the DMA…
The DMA, the Direct Marketing Association, had its origins in the 70s with the
establishment of direct mail houses. It was not until 1982 when the then van Zijl, Schultz,
Lund, and Tredoux, an advertising agency that had tenuous links with Ogilvy & Mather
Worldwide, set up Ogilvy Direct, under an import, Joost van Nispen. Indeed, David
Ogilvy’s ‘secret weapon’, direct marketing, had arrived with a vengeance. Measurable,
efficient and accountable, direct marketing came of age and somewhat clumsily educated
South African business into recognising that junk mail was not direct marketing. That it
was a legitimate part of the marketing mix and further could and did use a multimedia
approach effectively. The DMA came of age.
Though, of necessity, the fragmented industry around direct marketing remained small
with some advertising agencies jumping on the bandwagon of ‘direct’, offering clients ‘full
service’ and coincidently benefiting bottom line. Its income stream emanated from
sizeable donations from suppliers, through to both company and individual subscriptions.
Marketing in South Africa, was for a long time equated with advertising. But as USA
marketing influences and trends reached South Africa, a clearer industry and
subsequently business understanding developed. ‘Sale’ was no longer a 2 four-letter
expletive and the marketing/sales continuum understood and
recognised.
ABC Presentation 14 November 2011
…and then came SASOM…
Enter SASOM, the South African Society of Marketers under the
stewardship of Hugh Lendrum. SASOM represented the ‘marketers’; no,
not individuals, but the companies involved in marketing, who
employed ‘marketers’ and via a marketing budget, used marketing
techniques to generate sales.
But, again vested interests reared, and SASOM went the way of all
flesh and bit the dust. Important to note that here again the fractious
nature of the industry was highly apparent.
This is not a criticism, but an observation of the time reflecting the
history of marketing in South Africa.
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…and SASOM became ASOM…
Derrick Dickens became available out of the demise of BBDO where he
was Client Service Director on Datsun, soon to become Nissan. He
was appointed Executive Director of a new body that the marketing
companies decided to form out of the remnants of SASOM –ASOM, the
Association of Marketers of South Africa. ASOM pulled in all the big
guns and all the captains of industry to either serve on the board or to
in some way, be associated with the association, giving it class and
credibility amongst its business peers. The establishment of ASOM was
very clearly designed to recognise MARKETING COMPANIES
interests, needs and importantly, the marketing budget and to represent
the interests of the companies. And, as an important by-product, the
interests of a developing, formal, commercial marketing industry. It was
never designed nor contemplated that it would represent individuals,
though it would recognise individuals through the Loeries, the Protea
Award and the subsequent B2B awards.
ABC Presentation 14 November 2011
…and ASOM became MFSA…
The 3-f’s at work. Fractured, fragmented and fractious. An egocentric
industry caught up in its own self-importance and multiplying costs by
three; three administrations, three boardrooms, three executive
directors, three finance departments. Three different sets of awards.
Three wiz! The list is endless! The DMA representing the industry,
interested companies and individual practitioners. ASOM, by far the
largest in terms of budget and influence, representing the marketing
industry in its widest sense as well as the marketing companies. And
then the IMM, the education of individuals.
When the new government or for that matter anyone, needed to speak
to the marketing industry there was no one body to speak to. A series of
consultative meetings was the order of the times.
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…and the MFSA…well,sadly…
The Marketing Federation of South Africa (MFSA) is to be wound down
following a decision by its Board on Friday September 30, 2005. The
decision follows several interventions by the Board to deal with
management problems, which arose at the organisation during 2004.
MFSA Chairman Jabu Mabuza says that the MFSA will be wound down
in a voluntary, orderly process. “The Board applied their minds to the
options available and decided to take the tough but prudent course of
action”, says Mabuza. He said that the decision leaves the
marketing community free to set up a new representative body.
“The MFSA Board wishes to thank the staff who continue to do their
best despite difficult conditions,” says Mabuza.
ABC Presentation 14 November 2011
…enters MA(SA)!
Enrico du Plessis took up the task to set up a new representative body
for the marketing community.
April 2006 a shelf company First Ready Development 787 was
incorporated under the Companies Act as a Section 21 company
trading as The Marketing Association South Africa or MA(SA).
MA(SA) has a Code of Conduct and is managed by a Chief Executive
Officer reporting to a board of directors. The present chairman is
Brenda Koornneef, Business Executive: Group Marketing and
Corporate Strategy for Tiger Brands Limited.
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Governance and operations
MA(SA) Board
– AGM &
Constitution
2 seats –
Individual
members
CMSA
MPSA
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Individuals
Oversight
Committee
(Audit)
10 Seats –
Corporate
Members
Industry
Initiatives
Mission and Vision
• ABOUT: The Marketing Association of South Africa MA(SA)
• MA(SA) provides a representative voice for organisations and
individuals within the South African marketing industry. The
association seeks to provide leadership, mentorship, support and
guidance to the industry and promotes the concept of selfregulation, independent and credible research and professional and
ethical marketing practices encapsulated through the chartered
marketer and marketing practitioner designations. The association
is actively involved in influencing national policy, legislation and
strategy on marketing and related business issues.
ABC Presentation 14 November 2011
Value proposition of membership
Marketing, in essence, is the art of adding value to business.
So how can the Marketing Association of South Africa add value to the way you do
Business?
For a nominal fee, as an Individual or Corporate Member, here are just some of the
benefits you can enjoy.
•
•
•
•
•
•
•
•
•
Access to a network of credible business and marketing professionals representation
The ability to influence national policy, legislation and strategy on marketing and
business issues
The assurance of world class educational and training standards for our profession
Guidance and support on issues of strategic and professional interest and importance
Enhanced personal credibility as a Marketing Professional
Immediate subscription to a code of professional conduct
Access to the official Journal of Marketing
Discounted rates to marketing and other business events
Participation in recognition programmes and awards.
ABC Presentation 14 November 2011
MA(SA) in relation to stakeholders
MEDIA –
associated
publications - JoM
REGULATORS – SETA,
SAQA, HED, QCTO
Related
Professional
bodies – ACA,
DMA, Prisa, etc.
MA(SA) –
MEMBERS
Individuals
& Corporate
Industry – SAARF,
ASA, ABC
Education
providers
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Industry as
employers
MA(SA) – Professional Body
Designations – CMSA &
MPSA
Corporate Members
The wider marketing
industry/environment
ABC Presentation 14 November 2011
Case Study Pointers 1
• MASA should be mindful of the widest definition of ‘marketing’ and take
into consideration its TARGET MARKETS.
• It should realise that the market place and consequently the industry
is DYNAMIC, cutting edge.
• It MUST service the needs of all of its component parts. Realising
exactly where the income streams lie and the work necessary to unlock
them. Service! Service! Service!
ABC Presentation 14 November 2011
Case Study Pointers 2
• MASA must embrace education, in particular recognise the need
for marketing qualifications. Chartered status is the only way to the
boardroom for marketers, and must not be neglected. This is not to say
that any new body should either usurp or duplicate the role of an
education institute.
• MA(SA) should be ever mindful of the failure of the MFSA
and accordingly operate as a marketing body largely representing the
marketing industry and marketing companies. A replacement for
individual representation should be sought along the lines of the
defunct IMM.
ABC Presentation 14 November 2011
Case Study Pointers 3
• Recognition should be given to those sections of the marketing
industry, which have decided to go it alone. PRISA, SAMRO and the
DMA. The independent education service provider, the Institute of
Marketing Management (Pty), Ltd and of course the Loeries (now a
section 21 company). What about the Loerie Education Trust? And the
former ASOM funded chairs of marketing? The marketers as
stakeholders in the Loeries?
• What about the Marketing Industry Trust (MIT) or rather its successor
in title, the Levy Collection Agency (LCA and today MAMCA) and the
funding of other industry-desired bodies, such as the ASA, the ABC and
the Freedom of Commercial Speech Trust?
ABC Presentation 14 November 2011
Case Study Pointers 4
• Relationships with government, organised business and other
marketing related associations; the advertising agencies, commercial
producers association, media bodies and the like, both private and
statutory.
• And the vexed, eternal question, whose money is the levy, anyway?
Who does it belong to and who controls its allocation and use?
• Marketers relationships with the Services SETA, MAPP SETA and
SAQA. African and European marketing bodies.
ABC Presentation 14 November 2011
Case Study Pointers 5
Possibly at this stage there are two major drawbacks to any future
success:
• Finance. Where will the funds come from to make this all happen or
will a lethargic industry sit back on its now non-existent laurels and
expect the usual volunteer willing horses to do the work. One
suggestion is for the top marketing-spending companies, by AdIndex
listing, to each contribute an amount to be used to re-establish
an ‘association’. Without funding, sustainability and legitimacy
become insurmountable problems.
• Expertise. There are many experienced and successful marketers
out there who would be more than willing to provide of their skill,
knowledge and expertise.
ABC Presentation 14 November 2011
The (possible) way forward
• A visit to the American Marketing Association (AMA) in Chicago
provided much food for thought
• Their brand positioning is “MARKETING POWER”
• Umbrella association for the full marketing definition that includes
classical advertising, public relations, direct marketing, online, etc
• No corporate memberships
• 37,600 individual members (Revenue Line 1)
• Range of marketing publications to members with advertising
(Revenue Line 2)
• Annual marketing conferences, themed and with international
recognised speakers (Revenue Line 3)
• Major Marketing Awards (ala Loeries) (Revenue Line 4)
ABC Presentation 14 November 2011
ABC Presentation 14 November 2011
And yes, I still love my newspaper…
ABC Presentation 14 November 2011
MA(SA) – The Way Forward
Johannesburg
Monday, 14 November 2011