Microsoft Creates Integrated Marketing Group

Microsoft announced the creation of a new global marketing communications group yesterday, a move John Kahan, general manager of Microsoft’s global relationship marketing group, called a “natural next step” for the company.

Having “one voice” and integrating direct marketing efforts into other advertising is one component of the initiative, Kahan told Direct Newsline. “This is a big move for Microsoft. In the past direct and online was planned separately from advertising. This will help us to better integrate and plan accordingly.”

Overall, the Redmond, WA-based software giant is seeking to create a central unit to streamline common global marketing processes and data infrastructure.

The move also integrates the company’s corporate Web site, Microsoft.com, into the marketing communications group. The site gets over 225 million unique users per month, said Kahan, noting the company wants to better take advantage of those customer touches.

The new group — which will directly and indirectly manage upwards of $1 billion of marketing expenditures and Microsoft’s agency relationships with McCann Worldgroup and Young & Rubicam Brands — will be led by Mike Delman.

Steve Petitpas is general manager of worldwide advertising, Kahan oversees relationship marketing and Jeff Singsaas will continue to serve as general manager of events.

DMA Unveils Its New Strategic Plan By Ray Schultz The Direct Marketing Association is finally going to do what its members do — that is, market to different customer segments.

“In the past, the DMA would have gone to the entire population, with the same message for each member,” said CEO John A Greco, Jr. Now it seeks to offer “selective packages of services tailored to the needs of members.”

That’s only one part of the DMA strategic plan unveiled by Greco yesterday during a press conference.

In the works since early last year, the DMA board of directors has approved the five- to ten-year road map and Greco now has the job of implementing it.

While short on specifics, the document calls for the DMA to expand the “convergence zone” between marketers, consumers and legislators.

It also mandates that the DMA provide more relevant services to its members, and that it foster the use of direct marketing by all sectors and in “all existing and future channels.”

That means developing world-class skills in several areas, including political representation, consumer research, member segmentation and developmental programming.

These goals will be reflected in the DMA’s fiscal 2006 budget. In addition, the association will develop metrics to measure its own performance, and these will be the basis of its compensation and appraisal programs, Greco said.

This strategic plan is the DMA’s first since 1997. As part of it, the DMA will try to expand “the economic and cultural environment in which direct marketing can flourish.” And it will help members “create mutually beneficial relationships through the responsible acquisition of, access to, and use of relevant customer/donor information.”

The DMA found in research that its members want four things: Political representation, education, market making (or help with networking) and research. But the order in which they rank these things depends on how large a percentage of their business comes from direct marketing.

For example, pure or high-intensity companies, those that rely on direct marketing for 90% to 100% of their sales, are most interested in representation, or lobbying by the DMA.

Primary companies that pull 50-89% of their revenue from direct marketing, place education and market making at the top of the list. And secondary direct marketers — those who draw from 1% to 49% of their sales from DM–want research.

Greco hopes that that low-intensity direct marketers and customers will be “important new participants in this strategy.” The plan also recognizes that suppliers are a key part of this “value chain.”

The DMA chief also revealed the following during a Q&A session with reporters:

*Recognizing that almost all of its members are active online, the DMA will try to free the Association for Interactive Marketing from its silo. That means spreading the “benefits that accrue to AIM members” to the entire membership base.

*The DMA will “ratchet up” enforcement of its ethical rules. How will it balance the conflicting legislative needs of different member groups? If there’s no consensus, the DMA will study the problem and then “lean to one side or the other,” Greco said.