Direct marketing and sales promotion

Our main focus has been on the introduction of the Postal Services Bill and plans to part-privatise the Royal Mail.

ISBA has given their broad backing to the Government’s plan for the future of Royal Mail, agreeing with the plan to allow private investment because of the untenable position of Royal Mail. 

ISBA welcomed the Hooper Report, which recommended that Royal Mail should forge a 'strategic minority partnership' with a private company, and agree that this should be a postal operator with a proven record in transforming its business. Partnerships have been introduced successfully in European countries such as Denmark, where overall efficiency has been improved. 

ISBA believes that the company chosen for the partnership must be prepared to invest in Royal Mail's long term future. Although under the proposed deal regulators will continue to set the price of a number of postal services, there is at least the potential for price rises under the influence of a private company.   

Although Lord Mandelson believes that he can placate those MPs opposed to allowing private investment in Royal Mail, Hooper stated that his three recommendations should be implemented as a package and without delay. Any loss of momentum will further threaten the universal postal service. 

Paper-based direct marketing still constitutes a vital medium for many ISBA members and the ability to focus advertisers’ views in this area and reflect them to both postal operators and the regulator, delivers genuine results.

Nevertheless, environmental and sustainability issues are currently being felt more acutely in direct marketing than other areas of marketing communications. Because of government pressure, and a certain degree of public comment, the industry has acted quickly and decisively to improve its green credentials. 

ISBA was one of the founding partners of PAS 2020, a BSI standard aimed at reducing the environmental impact of direct marketing, which was launched in January 2009. PAS 2020 is the first standard of its kind dedicated to marketing activity, unlike the other more general schemes and qualifications for environmental practice elsewhere.

ISBA sees it as a vital tool for its members, some of whom will encourage their suppliers to gain PAS 2020 certification and thereby adopt best environmental practice. Several members are involved in the standard’s pilot programme, which will pave the way for full certification. 

Running a product promotion can help to drive sales and build a brand. Ensuring the activity is right for the brand and that it complies with the relevant legislation and regulatory constraints is essential, and ISBA plays a lead role in helping our members in both of these areas.

A key piece of recent legislation is the Gambling Act, which came into force in September 2007 and allowed the operators of gambling services to advertise for the first time. It also aimed to remove the need for a “no purchase necessary” route in prize competitions. ISBA issued guidance and hosted a briefing seminar, covering the regulatory, legal and practical implications, and involving senior Gambling Commission representatives.

Another area where ISBA is currently engaged is coupon mis-redemption, where consumers produce coupons which are accepted at the checkout despite not actually having bought the relevant product. This is merely compounding the problems of the couponing industry. 

Direct Marketing & Sales Promotion Action Group 

ISBA’s Direct Marketing & Sales Promotion Action Group is our key forum for discussing Direct Marketing and Sales Promotion issues and the driving force behind ISBA policy in these areas. Its membership includes representation from a wide range of business sectors. The group consistently focuses on industry best practice guidance. 

As well as lobbying regulators and government, the group is constantly working to improve both the image and the execution of direct marketing in the UK. The Direct Marketing and Sales Promotion Action Group welcomes representatives from across our membership and has its own resource page here.