Polish Direct Marketing - time of growth /and limits/

1. Starting form 0 to current position2. Direct Marketing development - jumping over the limits. 3. Limitations thereat or chance for the market? 

- database and legal limitations    - Behaviors versus PR /Robinson List/.    - Direct Marketing  versus media / new tools - new picture/.

  4. Where do we go?  

Polish Direct Marketing Association

• Established in 1995• Almost 100 members – biggest and the most dynamic

Polish companies• Divided in five Working Groups: telemarketing

companies, advertising agencies, internet and mobile agencies, distance selling companies, data base brokers

• Member of FEDMA• More information: info@smb.pl

Poland - 2007

• Population – 38,9 mn. people• 312 000 square kilometers• Capital – Warsaw (1,8 mn. people)• GDP per Cap. - 16.600 USD• Economic growth - 7 %• Inflation rate – 2,0%• Unemployment rate – 14%• Estimated funds from UE 2007-13 – 67 bn Euro

Transformation from 1989

• Centrally planed economy• State owned industry• Average salary of 30USD• Inflation up to 3000%• No competition in media• No marketing

But even before 1989

• Private owned agriculture /2 mn/ • Strong craftsman sector 400.000• Huge „grey” economy• Great emigration approx. 10 mn• Since 1982 – „foreign” investors

2007 – marketing communication

• Value – 7 bn PLN.• ATL / BTL - 70/30• Strong competition in media• Clients overloaded and tired

with advertisements

On-line marketing

• % of population having access to Internet – 40%• Around 2 000 e-shops• E-commerce – 4-5% total retail sales• % of population buying via Internet – 20%• Share of sales via Internet in total DS - 20-25%

Telemarketing and Mobile Marketing

• 90% phone penetration• 40000+ seats in Call Centers• Very High acceptance of telephone offer• Popular SMS communication• Modern SMS technology

in the beginning but no continuation /no MT SMS/

Mailing Affinity

• 97% - have read mailings in the past year• 59% - regularly read mailings• 63% - have responded to mailings

at least once a year

Inclination to use DM offers

Yes77% No

23%

Limitations - thereat or chance for the market? 

• Technology – not an issue any more• Data bases

– no positive involvement of Polish Post and Telecommunication companies- serious quality problems- to high utilization rate

Limitations - thereat or chance for the market? 

• PR– relations with Media- fight for the budgets

• Conservative approach– e.g. Lottery acceptance– Erotic services

Basic regulations

• VAT rules /Polish Post – 0 VAT/• Corporate tax /accepted costs/• Personal data protection • Distance selling /privileges for customer/• Telephone selling• Telecommunication law /price announcement/

And self regulations

•Legal issues – growing number of regulations, more complex, more difficult, more expensive, more risky

Future is coming

• Growing power of Customer• Growth of the power of DM• Growing involvement of the state /positive or

negative/

„Nobody can be a prophet in his own country”

Future is coming

• Channel integration • Fast growth of Internet

but still stable conventional channels• Allegro and Merlin cases• At the end everything will be DIRECT

Future is coming

Future will be exciting!

Future is coming

Future will be exciting!

Thank you for your patience!

jacek@barankiewicz.eu