THESE ARTICLES HAVE BEEN REPRODUCED WITH THE PERMISSION OF DMA US.

Part II of a two-part report by your editor of a recent trip to Moscow for a speaking engagement. Part I (November, 2007) talked about the difficulties and the marketing potential in this sleeping giant. This time, we look at some true bright spots around Moscow. All the more reason to join DMA's Trade Mission to Moscow and Kiev this coming April 2008. Be sure to read the details about the Mission at the end of this article. And sign up to join us now! - Editor.

To be sure, there is much that is charming about Moscow in warm
weather. It is delightfully situated alongside the Moscow River -- an extremely fast-flowing river that surrounds the Kremlin on two sides. The Kremlin, a Russian word for "fortress," dates from at least the ninth century, and is a massive and most awesome structure. A visit to it is absolutely essential. I was delighted to discover quite by accident that my arrival coincided with the weekly performance of a demonstration marching and riding regiment of the Russian Army, very professional and stirring.

I was quite taken with the restoration of the cathedrals and residences inside the Kremlin. Delightfully, both inside the Kremlin chapels and outside, one would often encounter local singing groups of four or five voices who would periodically break into song. When you encounter this in a church, with its small, high-vaulted stone ceilings and walls, the haunting Russian hymns fill the heart as well as the ear. Surprisingly, the chambers in these churches are rather small but very high, and the ceilings are rounded so that sound resonates delightfully. The largest room in St. Basil's in Red Square could not comfortably hold more than 20 people, it seemed to me. Perhaps Russian architects were instructed to keep rooms small to prevent mobs from forming, or perhaps simply to provide more small rooms for plotting.

Naturally, life goes on outside politics, and on this sunny day in Moscow, the parks were full. It being a Saturday, a wonderful custom was on display in Red Square. Red Square is probably one mile long and a quarter-mile wide. It is paved entirely in cobblestones and is slightly crowned in shape, so that the water runs off on all four corners. On one long side is the Kremlin wall, easily 5 stories high or higher, with gates and guard towers, each with its own unique name, and roof, often with a clock.

In Red Square, this vast, but somehow strangely accessible and nearly intimate public space, tour groups gather and pass, Moscovites meet and stroll, and wedding parties come to have their pictures taken in front of St. Basil's Cathedral, the Kremlin, and the Gum Department Store. And like wedding parties everywhere, the brides are charming, and the grooms patient.

It's Not There Yet Granted, other parts of Russia and Moscow are not so charming. Much of the city seemed to be about as focused and organized as I found the immigration officials at the airport and the "help" at the conference where I spoke . In fact, much of Moscow, while straightforward, is in many respects a frightening, if not terrifying, place.

Most of Russia is apparently not all that different from 12 years ago.

Moscow is a modern city in name only, and only in its center. Early 20th-century trolleys still run on their tracks driven by forbidding-looking ladies of a size and demeanor that will reduce any disruptive customer to silence very quickly. The airport, which inside is as modern as they come, from the outside looks like a continuous harshly occupied construction zone -- scaffolding everywhere, dangerous-looking holes in the ground, and many particularly inactive construction employees standing around smoking and shrugging their shoulders.

Needless to say, walking the 5 km back to my hotel from my speaking engagement was an experience in enormous contrasts.

Underground Delights
Along the way, I gathered courage and entered the Metro -- and fell in love with it. For the equivalent of 17 cents, you can explore this incredible system of gorgeous -- sumptuous, even -- subway stops. This is an extended multi-chambered museum of wonderful art in tile, statuary, glass, and much else. In the stations, there are wide hallways with high vaulted ceilings, all tiled. Be there in rush hour, and you'll appreciate their size! Many of the train stops are very distinct, some with stained glass displays and exquisite chandeliers, and there are even tours of the subway - much like museum tours -- which review in great detail the wonders there.

Some of the wonders are also human. I was surprised in one stop to hear what sounded like a string orchestra playing classical music. There they were in front of me, as I turned a corner -- a nine-piece classical group playing Handel! Before them, a violin case open to receive contributions. It was unprecedented in my experience, which is not short, to see everything from a base fiddle to cellos and a viola there with the violins. In another station, I found a jazz accordionist with a drummer similarly engaged, this time playing very good jazz, indeed.

Back to the Inequalities Above-Ground Returning above ground brought me back to the realities of Russian society. Coming up to the sunshine, I approached a corner some 30 yards away, and it
appeared to me I must be passing a military building, since there in front were three armed and uniformed security personnel in bulletproof vests. As I approached them, up came an extraordinarily long Mercedes-Benz, black with tinted windows, which released in front of the building an extremely attractive, young, long-legged blonde woman, and a much shorter, much less slim, and very dark-looking chap in an ankle-length black leather coat. The "soldiers" were extremely deferential to these two, surrounded them, and led them to the doorway of this building -- which now I understood to be an exclusive restaurant.

Next to the restaurant were three Lamborghinis, lots of BMW SUV's and a couple of Maserati's. The extremes became more apparent as I walked on another 50 feet past a similar restaurant to find the "guards" pushing away a pitiful old lady who I later found kneeling at a Metro exit, head bowed, with a dirty tin can and a hand-written sign. We are told by others that the bottom of society in Russia is totally neglected -- that those without relatives or a support structure of some kind are indeed in dire straits.

Despite the obvious and apparent poverty here, there are pockets of substantial wealth, some of it illicit and nearly obscene in its size and power. One of the latest developments throughout the Mediterranean is the development of enclaves of Russian real estate buyers of yachts and shore property who pay enormous amounts of cash, millions of dollars, when closing their transactions.

There is also, however, a rapidly growing middle class in Russia. Normal, educated folks with accruing discretionary income. For that reason, as I mentioned in the first installment last month, I am convinced this country is one that must not be ignored by international marketers.

Trade Mission to Moscow and Kiev

Therefore, as announced last time, DMA is organizing a trade mission and study tour to Moscow and Kiev in April. I have been invited back to speak to the catalog conference at that time, and will be delighted to take with me anyone who is interested in exploring these two fascinating markets. We shall construct a Web site to keep the membership informed as the program
comes together. Naturally, as I did on my trips to London, Lille, Paris, Shanghai, and Beijing, I will craft the program and visits to the wishes and needs of the participants. At a minimum, we will visit the Posts, major banks, the US Department of Commerce in each city, and other service providers in both locations.

For further information on the Trade Mission to Moscow and Kiev in April 2008, and to help formulate the program, please send an email to international@the-dma.org and simply put "Russia trip" in the subject line. We will keep you fully informed as the Mission agenda is developed. -- Charles Prescott

BM_2II. Monthly Snapshot: Saudi Arabia

Beginning this month, Currents & Crossroads will provide a snapshot view of the economy, political situation, culture, demographics, development, and business environment of another country. This series is intended to provide useful examples of market research of a preliminary nature -- and some useful sources to use to further that research. Featured this month: Saudi Arabia. - Editor.

Inspired as we were by meeting one of our members in DMA07 in Chicago -- BRIDGES of Jeddah -- and the recent trip by our COO Ramesh Lakshmi-Ratan to speak at a postal conference there, we have decided that Saudi Arabia will be the subject of our first profile.

Demographics
Since nothing happens in business until someone sells something, let's look first at the demographics of the country -- the buyers.
The Kingdom of Saudi Arabia has a surprisingly crowded and growing population of 27,600,000 people, of whom 5,500,000 are immigrant workers, predominantly from the Middle East and Africa. With a birth rate of 30 per thousand per year, and a death rate of 3/100, the population is expected to grow by 80% by 2050. Although there is plenty of space -- the country is about one fifth the size of the continental United States -- most of it is uninhabitable desert.

And while the entire country has only 13 people per square kilometer, 81% of the population lives in the urban areas of about 14 cities -- chief of which are Jeddah, the commercial capital; and Riyahd, the political and second commercial capital. In these cities, the population density is high -- up to 1,000 people per square kilometer. And with 147 automobiles per 1,000 people, the country is certainly not overburdened with vehicles.

Population Profile
Saudi Arabians are a healthy and fairly well-educated population, with life expectancy at birth being 77 for women and 73 for men. There are no children under 5 reported as underweight or lacking vaccinations, and 91% of births are accompanied by trained medical personnel. The literacy rate is 92% for women 15-24, and 95% for men in the same age range. However -- and this is troubling -- only 63% of school-age girls attend secondary school, and only 70% of school-age boys do so. www.prb.org

The economy is about half as prosperous as that of the United States, with Gross National Income on a purchasing power parity basis of US16,620 (US12,464 non-ppp), which still puts it in the "high income" category.

It should be noted that some 35% of the employed population from 24 to 55 is immigrant labor (5.5 million), employed primarily in the oil sector. Many Arabs from nearby countries are employed in the kingdom, and there are significant numbers of Asian expatriates mostly from India, Pakistan, Bangladesh, Indonesia, and the Philippines. There are fewer than 100,000 Westerners in Saudi Arabia, and they occupy a unique marketing niche, it would appear. (See III. Letter from Saudi Arabia, this issue.)

Challenges to Business

Employment Issues. Unemployment/underemployment are issues in Saudi Arabia. Only 82% of the male population over 15 is economically active, and only 18% of women over 15. In a relatively young country -- where 38% of the population is under 15, and only 2% are older than 65 -- this may be of concern as a matter of civil society going forward. This demographic cohort will be a big group, with 2,300,000 more people aged 15-24 joining the working age population by 2024, raising it to 9,900,000.

This in fact is a bit of a demographic time bomb: how to educate and employ these huge numbers in an economy that is predominantly service-based, and with its diversification out of an oil-based economy only beginning to occur.

Under-employed, partially educated, and bored young people are a societal concern. However, the government is well aware of this issue, and its development policies for the last 5 years and for the next 5 are focused on both issues: diversification and employment.

Strict Law. The law in force in Saudi Arabia, with the exception of some commercial-related statutes, is Shari'a, or Islamic law, which is extremely strict as concerns the position of women, and the complete prohibition of consumption of alcohol.

Interestingly, Islamic law forbids paying interest, and thus there is developing in the Middle East and KSA in particular very sophisticated banking and lending practices to accommodate the needs of business and the dictates of faith. This has ramifications for the growth of credit card lending, we suppose.

Economy and Ease of Doing Business
The economy most definitely is based on oil, which makes up 95% of the government's budget, 45% of the GDP, and 90% of export earnings. With 25% of the world's proven oil reserves, Saudi Arabia won't go broke soon, but even so, the government recognizes it must increase the role of the private sector, which today only accounts for 40% of the GDP. Thus, it has encouraged and continues to encourage private and especially foreign investment, which we analyze below.

In terms of ease of doing business, as reported by the World Bank's annual Doing Business2008, Saudi ranks 23rd of 178 countries, just ahead of Austria (24), and slightly below the Netherlands (21) and Germany (20). This is a jump of 10 places in one year, due mainly to major improvements in reducing the minimum amount of paid-in capital to a level below the average for Organization for Economic Cooperation and Development (OECD) countries. In the past, the required minimum was in excess of $80,000, a major disincentive. Now, there is no minimum required amount.

Despite this major change, a microscopic examination of the World Bank's findings reveals Saudi's business environment to be still slightly behind the OECD average, and in some cases well behind. It is true that Saudi ranks well in terms of the ease and cost of registering property, and importing and exporting goods. Also, it stands high in terms of protection for investors and transparency of government procedures. As for taxes, they are almost not a consideration, amounting to 2.1% of profits versus an average of 20% in OECD countries. It takes less time and paperwork to comply, also.

However, there are major negatives, including dealing with agencies to obtain licenses (costlier, and with more procedures). It is easy to hire employees, but very expensive to fire them, requiring severance of up to 80 weeks' pay, versus an OCED average of 26 weeks. And, critically for any business, especially a direct marketer, the only credit bureaus are private, and coverage of the population is low -- at 23% versus 60% in the OECD.

Also, enforcing a contract takes longer (635 days versus 433) and costlier (27% of the claim versus 18%). In addition, it will take you nearly 3 years to close a business instead of 1.3 in the OECD, and you will recover on average only 29% of the value of the business, versus 74%. http://www.doingbusiness.org

Communications Profile
The Saudi Post is quite respected in the country, although it should be borne in mind that currently, they only deliver to rented postal boxes in the post offices themselves -- and many of these are shared by a number of families. In short, the recipient pays to receive mail, as in the US and Europe until the 1840s. This means that it is difficult to do targeted marketing, but not impossible. In addition, the Post has a well-thought-out business plan to create a national delivery point database, assign street addresses, and begin delivery to residential addresses within the next 3 years. This bodes well for the growth of the Post and direct marketing.

Mobile phone penetration is high, with over 20 million reported at the end of 2006, nearly 5 times the number of landlines (4.5mm) -- and it would seem that mobile marketing is possible. One of our sources on www.wikipedia.com
http://www.wikipedia.com states that none of these phones have cameras,
since Saudi culture and law prohibit photographing women, but we have been informed by Saudi direct marketer BRIDGES that this is nonsense. They know of no such law, and "the majority, if not all mobile phones in KSA, are equipped with cameras." And since BRIDGES represents Sony Ericcson, and obviously keeps an eye on Motorola's and Nokia's offerings, they ought to know.

TV and Radio. There are over 117 television broadcast locations, and 43 AM and 31 FM radio stations. http://www.cia.gov No doubt these all are available as marketing mechanisms. In addition, the penetration of satellite television is enormous, and its content is essentially uncontrollable. This is having a huge impact on social attitudes and consumption patterns as customs, habits, and brand names from outside the Kingdom are beamed daily to Saudi viewers.

Internet. Only some 20% of the population has Internet access (4,700,000), and there are only some 218,000 broadband connections. (www.worldinternetstats.com http://www.worldinternetstats.com )

From the editor's personal experience, Internet access is carefully monitored and censored. YouTube is just one of the things prohibited. So are the Web sites of most Western news services, newspapers, and magazines. An Internet search uncovered only 13 ISP's in Saudi Arabia. (See accompanying graphic.) However, the impact of all those satellite television channels referred to above is evident.

Source: BRIDGES

Marketing Initiatives

Events marketing is a popular marketing tool in Saudi Arabia. Having been "educated" by the Western press to assume that these would be male/female segregated events, and that women could only attend public events with a male family member, we have been enlightened by BRIDGES that, "The truth is, we organize huge events in Saudi Arabia attended by both genders despite the fact that they are most of the time segregated. A great example...is the Jeddah Economic Forum, which takes place every year and is attended by huge numbers of male and female delegates... Women here leave their homes every day to go to school, college, work, and cafes."

And, our source mentions, it is not true that women must be accompanied outside the home by a male relative. However, women are not permitted to drive.

E-commerce is not exactly rife in Saudi Arabia, where the Internet has lagged in development.

DM in KSA. It would appear to us that direct marketing is still in its early days in Saudi Arabia, although it is being successfully used by multinational auto and fast moving consumer goods (FMCG) companies and sophisticated Saudi ones -- and banks, of course.

DMA is proud to have two member companies in Saudi Arabia:

BRIDGES is a multi-service firm providing a full menu of marketing, creative, and communication solutions, including CRM services, Web design and construction, direct mail, call centers, TV and video production (in Lebanon), electronic messaging, and media planning and strategy. In short, anything you would expect in a modern shop anywhere. The client list is extremely diverse and impressive. Their Web site, www.bridgescom.com
http://www.bridgescom.com , suffers from the Flash-affinity disease and takes an age to load, but it is very informative when finally penetrated. .

Drive Communication. Our second Saudi member, Drive Communication, part of the Dentsu empire, claims to reach 2,500,000 households with targeted messaging, and has an entertaining Flash-heavy Web site at http://www.drivecommunication.com , although it is light on content. The client list has the usual Japanese heavy-hitters(Toyota, Canon) and a number of local brands.

For an on-the-ground view of the state of DM in the Kingdom, see III. Letter from Saudi Arabia, up next.

BM_3III. Letter From Saudi Arabia

In response to our request to our member in Saudi Arabia, BRIDGES, to provide us with local insights into the state of the Saudi market, in addition to editing some very fundamental points in our article Monthly Snapshot: Saudi Arabia (this issue), Managing Director Khaled Yamak gave us these invaluable insights. -- Editor.
Regarding the DM situation in KSA, I am attaching an observational research report about Saudi youth that might help you get a clearer perspective of the market, as well as an online penetration statistics report.

It is true that we lack good data and the Saudi post is not fully developed,but still we use many other tools for targeted marketing such as door-to-door drops, courier companies (using our self-developed data of over three million), field activation programs, demonstration desks in targeted locations, a call center, and field visits to homes, corporate buildings, universities, and the like.

Moreover, we have a huge number of expats living in closed compounds where they exercise a fully "western" lifestyle -- such as access to gyms, swimming pools, and clubs. From our client portfolios, we know for a fact that the international clients are shifting 50% of their communication budgets to below-the-line and DM activities.

We have clients that deal with cars, FMCG, department stores, banks, and so on. As for the local companies, they have started shifting as well --however, at a slower pace than the multinationals.

Given a very cluttered media scene, which is also relatively expensive, DM is becoming a very competitive communication tool.

As for email advertising, it still is not trusted and not credible.

Currently, companies use their own data, as there is no law that prohibits that yet. If you ask me where we collect our data from, I would say through a combination of resources, the Chamber of Commerce, and through DM activities, events, promotions, and our call center.
Our deepest thanks to Khaled Yamak, who may be reached at:
k.yamak@bridges.com .

BM_4IV. Here and There

DM Execs May Well Consider Consulting Stints in Asia. There's growing reason to believe, since the Asia-Pacific region is home to the fastest-growing markets in the global economy, that its growing appetite for management talent has also made it the most exciting front in the global headhunting trade. The continuing expansion of national economies across Asia is spawning new companies and ratcheting up demand for experienced executive talent. Consider these facts:
* Hong Kong recently revealed the largest Internet IPO since Google.
* PetroChina became the world's largest company by market capitalization.
* The Bombay Stock Market recently hit 20,000 -- equal to 40 percent annual growth.
* The Chinese economy is slated to grow by a staggering 11 percent this year.

Source: Business Week

According to a recent report at BusinessWeek.com, most of the 10 largest companies by market capitalization worldwide are Chinese, and the vast majority of the world's largest companies are already doing business on the Chinese mainland. Many of the world's corporate executive staffing leaders are spending much of their time these days in Hong Kong -- and "deep in the rich headhunting grounds" of other booming Asian economies.

Increasingly, Business Week reports, these companies are paying headhunters for what they know, who they know, and how they might extend the company's brand and growth story to individuals the companies may someday wish to recruit.

And don't ignore Australia. Business Week reports that by 2016, the number of people aged 60 to 64 in Australia will double, creating "what will surely become a vacuum" for experienced management talent.

Might an Asia-Pacific consulting gig be in your future? Read more by clicking http://www.businessweek.com/managing/content/nov2007/ca20071115_903546.htm? chan=top+news_top+news+index_managing

Falling Birth Rate Threatens Japan's Workforce. China isn't the only one facing a large-scale future employment crisis. According to a recent report from Kyodo News featured in Japan Times Online, Japan's potential workforce could decline by some 10.7 million between 2006 and 2030 -- unless more women and senior citizens are encouraged to take up and keep jobs, according to a government panel's estimate released in late November.

The population of those aged 15 and older who are working or willing to work will slide from 66.57 million in 2006 to 62.17 million in 2017 before falling to 55.84 million in 2030, according to the estimate.

The panel at the Health, Labor, and Welfare Ministry aims to draw up policy recommendations in December to stem the anticipated decrease in the workforce. The panel will be calling for more efforts to help women find re-employment after leaving work due to childbearing and rearing, as well as more measures to entice senior citizens back into the job market.

A Sign of the Times: Japanese Classified Ads for Women Shift Online. At least one major Japanese recruiter has upgraded its recruiting practices to meet the needs of the times - especially for women. Travail, the Japanese weekly job-seeker's magazine produced by Recruit Co., has shifted all of its recruitment ads online, to its site at www.toranet.yahoo.co.jp.

Travail's Editor-in-Chief Naoko Tsukamoto (herself a 33-year-old working woman) recently told the Japan Times, "I like print media and I still believe in its potential. But the number of people who look for jobs through the Net has been growing so rapidly and dramatically, that I thought we should move online to provide services that today's customers want."

Travail primarily presents information targeting women. Consequently, most users are women, and about 60 percent are in their 20s and 30s. Tsukamoto said that since its remodeling, Travail has attracted an increasing number of users in their 20s.

But Travail has not ditched the print medium, according to the Japan Times. In October, it relaunched Travail as a "monthly glossy magazine" featuring stories about working women in various occupations. Each Yen550 issue, which has about 180 pages, sets a theme such as "Work and Marriage," and includes interviews with 50 or more women.

"Women often have time to ask themselves such things as 'What do I want from work?' or 'What life do I want to live?' when they are on the train going to work or at home before they go to bed," Tsukamoto said. "The monthly is aimed at helping them to think about these issues by presenting them with role models to inspire them to start searching for jobs." Makes good direct marketing sense to us.

Michelin Guide Names Tokyo the Gourmet World Capital. Perhaps those Japanese job-seekers should look to the restaurant business. The newest Michelin guide published in early November awarded Tokyo a total of 191 of its coveted stars -- compared with 98 in Paris and just 54 in New York. This officially places Tokyo as the Gourmet Capital of the World. The biggest surprise for locals, according to the Japan Times, was the weight given to Japanese restaurants in the ratings. When news first surfaced that the guide was in preparation, it was thought that only Western cuisines would be ranked. After all, it was reasoned, no French guide could properly understand Japanese cuisine. But the results showed that of the 150 starred establishments listed by Michelin, 89 serve Japanese cuisine -- twice the number of French restaurants honored.

BM_5V. Is There a Real Marketing Opportunity in Social Networks?
This is the latest installment in an ongoing series of articles by direct marketing consultant Ruth P. Stevens. This time, some ways that marketers can capitalize on the new social media phenomenon -- as long as they know the rules to play by. -- Editor

Last month , I discussed the marketing opportunity found in new Internet media like blogs, podcasts, and RSS feeds. Now, it's time to turn our attention to another new Internet media phenomenon: social networks.

Social networks are set up to allow people to connect with each other. With their roots in early Internet bulletin boards, social networks enable fast, creative interaction among users.

* There are networks around business contacts, like LinkedIn and openBC (based in Germany).
* There are networks around particular consumer demographics, like MySpace and TagWorld for the youth crowd, CarSpace for auto enthusiasts, and ParentsConnect for young parents. Many of these networks have attracted large numbers of registrants and fast rates of growth. MySpace, for example, boasted 100 million profiles as of August 2006. Rupert Murdoch's News Corp. bought MySpace late summer for $580 million -- an amount that looked crazy then, and now looks pretty smart.

Marketers Can Capitalize in Three Ways
OK, so plenty of people are connecting on these networks. They are sharing information about themselves in detailed "profiles," exchanging photos and music, and discussing all kinds of topics. But how can marketers take advantage of this fertile environment? So far, there are apparently three ways : advertising, market research, and PR.

1. ADVERTISING. Most social networks accept standard banner and text advertising as well as sponsorships. But the ad formats can get a lot more creative, too. Two examples:

* MySpace allowed Wendy's to create an actual profile for a cartoon character of its distinctive hamburger, called Square, who has already garnered 78,000 links with so-called friends, meaning other MySpace users who were charmed by the posting.

* NBC television created a contest for its hit show The Office on YouTube, the video-clip-sharing site that Google has agreed to acquire for $1.65 billion.

The research company eMarketer estimates that 2006 will see $280 million spent on advertising in social network sites in the US, with another $70 billion spent in other markets. Still small potatoes, but growing fast.

2. MARKET RESEARCH. One benefit of its MySpace purchase to News Corp is the testing out of new ideas for media and entertainment. Market research companies are quickly figuring out how to harness these communities for research purposes. MarketTools, which created the leading online survey tool Zoomerang, now offers a service that allows marketers to create their own customized social networks -- similar to consumer panels of the past – in order to pose questions and get feedback and ideas. Some observers feel that, ultimately, the greatest value to marketing from social networks will be fresh ideas -- far more valuable than mere advertising.

3. PR. The most obvious application in the free-wheeling world of consumer-generated media, of course, is public relations -- namely, building buzz and influencing conversations. Marketing agencies are developing clever ways to participate in social networks, by posting comments, maintaining blogs, and tailoring their press releases directly to consumers and bloggers. However, the lack of control in these spaces presents a risk. For example, BurgerKing and VW, trying to get involved in MySpace by building fake profiles, have recently received considerable negative reaction from users.

Remember to Play by the Rules As marketers consider developing a strategy for the social networking phenomenon, they should keep the following in mind: RULES TO PLAY BY IN SOCIAL MEDIA

1. Examine whether your company has the DNA to play in this space. It requires a willingness to take risks, to avoid "marketing-speak," and to be candid -- or at least to appear candid.

2. Involve your PR professionals, who are trained to figure out ways to manage conversations. (Advertising professionals are more adept at delivering paid messages.)

3. Designate an employee, or hire an outside service, to monitor how your company is being discussed online. React to the discussion the same way you would handle a mention of your company -- positive or negative – in traditional media. But remember that, in the online world, you need to act more decisively, and with extra speed.

4. Identify influencers in these networks, and look for ways you can influence them in your favor. Ideas: invite them onto an advisory board; send them early information about new products.

5. Keep in mind that the social networking phenomenon may fall apart as rapidly as it rose. This is unproven territory, a shifting sand. Hedge your bets.

Ruth P. Stevens consults on customer acquisition and retention, and teaches marketing to graduate students at Columbia Business School, and direct marketing seminars at DMA. She is the author of The DMA Lead Generation Handbook. You can reach her at ruth@ruthstevens.com .

BM_6VI. SnapShots

SAUDI ARABIAN RECYCLING GOES INTERNATIONAL. If you have ever left an old A/C on the curb for trash pick-up only to discover that it has either vanished or has been taken apart and picked through the next morning, then imagine this happening on a large scale in Saudi Arabia, where Al-Sale Eastern Co. Ltd has been leading the country in the recycling of ferrous metal. Scrap processors such as Al-Sale Eastern collect, sort, process, and then resell these otherwise environmentally damaging trash materials to companies in various industries. Full Story...

http://www.arabnews.com/?page=6§ion=0&article=104118&d=29&m=11&y=2007&p ix=business.jpg&category=Business

SAUDI COMPANIES GO GLOBAL. Saudi Arabia exports more than just oil. In recent years, the Kingdom has seen an ever-expanding group of steel, air-conditioning, pipe, and cement companies going multinational. Of the top 100 Saudi companies, 20 percent are now international operations, and the future promises yet a bigger expansion in coming years. Full Story... http://www.arabnews.com/?page=15§ion=0&article=89612&d=5&m=12&y=2007

THE SAUDI TOP 100. Arabnews.com has released its annual "Top 100 Saudi Companies" list. Kingdom Holding Company, Saudi Basic Industries Corp., and Saudi Telecom lead the pack, in first, second, and third place respectively.

While Saudi Basic Industries Corp. trails Kingdom Holding Company in second place, they far surpass Kingdom Holding Companies in number of employees, with 12,413, compared to KHC's 46. Interestingly, there is a separate "Top 20" list for Saudi business women and their enterprises.

The Saudi Top 100 Companies can be found here http://www.arabnews.com/supplements/Top100/top100_2006NEW.html

And the Saudi Top 20 Business Women can be found here http://www.arabnews.com/?mode=/supplements/Top20/Top20.htm

BM_7VII. Back to the Future

In a specially prepared address to the International Federation of Direct Marketing Associations on Sunday, October 12th, at DMA07 in Chicago, Trish Wheaton, , laid out her view of the major issues impacting direct marketing. Following is our report on that important speech. To receive your own copy of the full presentation, contact CPrescott@the-dma.org . -- Editor.

In the last five years, the model for marketing has changed dramatically from marketing as a "Town Crier" who yells out to the public every 20 minutes on television. Even old direct marketing was a bit like this, and was strangled by the above-the-line/below-the-line distinction. But here in 2007, we have to be "beyond the line." There is in actuality no line anymore. Consumers have too much choice, and marketers must recognize that the challenge today is to reach the consumer wherever he or she happens to be.

Today It's All About Convergence
Convergence is now what marketing is all about. It is convergence of media and it is convergence of branding and targeting. Every brand meeting in any agency today is about convergence -- and the use of multiple channels. Ms. Wheaton urged the DMA's of the world to provide the thought leadership necessary to build that convergence efficiently.

Accountability, of course, drives nearly all of what we do online, and the questions of what we will measure, by what metrics, and by what tools, is critical to success in a converged world.

Digital DM
The converged world is now digital as well. As we have noted in Currents before, the digital revolution is even more powerful and swiftly acting than that of Gutenberg's revolution in print. It is quite simply the most astounding revolution in the history of mankind for the collection, storage, manipulation, and transfer of information. And a big part of what we have to do with our new digital tools is optimize the windows to our companies that we put on the Internet every day.

What direct marketing brings to our digital endeavors is the discipline of testing. Ms. Wheaton showed us the case of Converse sneakers, which launched a Web site with all of its brands and styles of footwear carefully organized by type and style. Sales were mediocre. A careful tracking of consumers at the site revealed that they searched not by size, not by label, not by function, but by color. Reorganizing the site by color increased purchases 26% and raised the average order value by 20%.

Social Media and the Customer
A full 40% of people online have now contributed to online content. Of that 40%, 49% are over 30 years old. What this tells us is that CRM now actually means "customers really manage."

Thus, as a marketer, you must engage your online community, be

self-deprecating, don't take yourself too seriously, and fully participate in the Web 2.0 world. Ms. Wheaton gave as an example a Web site called 51tuangou.com, a Chinese group purchase site where consumers collect to set prices and place orders with manufacturers.

Sustainability and Social Responsibility
Ms. Wheaton's last point was about sustainability. She urged DMAs to be well in front of environmental problems, and points to programs developed by the UK DMA addressing DM's carbon footprint. She predicts that companies worldwide have five years to get out in front of the carbon issue -- or find themselves facing unbearable legislation. Carbon labeling will become common, she warns, and environmental taxes will probably be imposed.

"Consumers," she says, "Want to see responsibility on the part of business. And it is incumbent on us to research these issues and present our side of the story." She pointed out that the airlines together comprise only 2% of the carbon footprint of mankind's use of its resources, which is the same amount of carbon as is generated by running the world's computers. A complex issue and a complex calculation. -- If you would like a complete transcript of Ms. Wheaton's excellent speech, email CPrescot@the-dma.org , and we will send you one.

BM_8VIII. ECHO Kudos

Each month, we set out to bring you the details of a DMA International ECHO Award winner as a case study meriting deeper consideration. These are, after all, the "best of the best" from around the world. Members of DMA wishing to see the actual campaign showcased here, please contact the Global Knowledge Network Center at gknc@the-dma.org . To purchase the 2007 DMA International ECHO CD-ROM, visit the DMA bookstore http://www.the-dma.org/bookstore/cgi/bookstore . - Editor.

This month: Unilever/Dove: 'Dove Pro-Age' promotion Winner, Gold ECHO, and A. Eicoff Broadcast Innovation Award, 2007

MARKETPLACE CHALLENGE

"Dove Pro-Age" is a new line of products created for skin and hair care to help women in their best years realize the beautiful potential that lies within. This platform of products is not about anti-aging -- it's about pro-age, because Dove believes that "beauty has no age limit."

The 18-49 demographic is not growing - the 50+ population will grow from 89 million in 2006 to 111 million in 2016, a 25% increase in the US. There are several products targeting the 50+ woman, but Dove is the only brand that has released a full platform of pro-age products.

Dove seeks to induce an attitudinal change in the anti-aging category – from negative and fear-driven to affirmative and hope-driven - and in so doing, encourage and inspire more women who are entering what could be the most exciting stage of their lives to see the potential that lies within their skin and hair. Pro-age is Dove's commitment to this belief.

Target Audience

The Dove Pro-age user is 50+ years of age, preparing for/going through/has gone through menopause. She has acquired a certain degree of self-confidence she did not have when she was younger. She is proud of being a member of a generation that has changed all the rules of the game of life, and she is ready to challenge the rules of the beauty game too. She is not afraid of aging; instead, she is ready for the best part of life. In many ways, she is enjoying her 50s more than her 20s.

Target Audience Size 1,000,000+

MARKETING STRATEGY

The marketing strategy was to leverage Dove's core standard by using real women of different shapes, sizes, ethnicities, etc., to tell the pro-age philosophy and product story. Spread the word about the commercial that could not be shown on TV and encourage consumers to weigh in on the debate: "Beauty Has No Age Limit."



MARKETING TACTICS Dove created an advertising campaign/commercial that tastefully showcased nude real 50+ women. The launch was to be supported with compelling print and TV advertising - so compelling it was banned by the networks. Not to be deterred, Dove created alternative ads, which drove consumers to the www.doveproage.com Web site that Ryan developed to "see the banned ad" and weigh in on the debate that beauty has no age limit.

Direct tactics included:

* E-mail blast to Dove Loyal Consumers 50+

* Direct mail with samples and coupons to seed campaign and drive trial.

CREATIVE STRATEGY

How do you get women talking about the new pro-age beauty attitude? That was the question that helped inform our Web strategy. We felt our site had to garner attention by clearly stating the "beauty has no age limit" philosophy; sparking a debate among women by inviting them to share their thoughts on this new proposal; and, since this particular Dove effort rests on a unique product story, prominently display the line of hair and skin care items. Eye-catching graphics combined with targeted content and a lively chat room.

RESULTS

Within just over eight weeks of the launch of the sitewww.doveproage.com already performed well above the industry average. This highly engaging site met all the expectations of the specified objectives at the onset of the project. Consumers spent a healthy amount of time on individual product pages, which offered a wealth of information to satisfy a wide range of inquiries.

TOTAL COST

Rollout: $100,000-250,000