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MAIL<br />
An international comparison of letter item volumes per<br />
capita reveals distinct – and, in some cases, substantial –<br />
differences between individual countries. These differences<br />
can often be attributed to factors that are specific to<br />
the individual country, such as the large percentage of<br />
financial mail items (mail delivery of checks) in the<br />
United States.<br />
Letter items per capita<br />
700<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
728<br />
460<br />
U.S.A. Netherlands*<br />
435<br />
France Great<br />
Britain<br />
Source: UPU 1998, *TPG for the Netherlands<br />
Germany Spain<br />
For us, this comparison with our European neighbors<br />
and the sustained growth seen in German letter sales<br />
point to even further growth potential. The rise of the<br />
fax machine in the 1990s, for example, did not lead to<br />
any significant decline in sales in Germany. Nonetheless,<br />
the traditional standard letter is faced with the<br />
threat of substitution over the medium term. Sales<br />
could fall off particularly in the area of business communication<br />
(B2B) as the result of electronic data interchange<br />
(EDI) activities and e-mail.<br />
By contrast, we expect to see continued growth in B2C<br />
volume. The liberalization of Europe’s telecommunications,<br />
electricity and insurance markets has led to an<br />
increase in the number of providers and consequently<br />
to more letter mail, such as bills, personalized advertising<br />
(direct mail) and the like. The expansion in the<br />
online banking business will also lead to ever-larger<br />
B2C letter mail volume.<br />
The spread of the Internet is bringing global transparency<br />
– and global competition. This in turn creates<br />
324<br />
247<br />
111<br />
more pressure to advertise. All providers have to ensure<br />
brand awareness in their respective segments. They also<br />
have to present and offer their products and services in<br />
such a way that they set themselves perceptibly apart<br />
from the competition and can consequently attract and<br />
retain customers. For this reason, the future of marketing<br />
is to be found in the individual approach. Direct<br />
advertising – addressed and unaddressed advertising<br />
items – acts as a kind of personal messenger and opens<br />
up an active dialogue which binds the customer to the<br />
company on an individual basis. This increasingly calls<br />
for target group-oriented products and services that<br />
offer customized solutions. Sales and consultancy strategies<br />
for specific industries, response processing, credit<br />
checks and collection services are just a few of the services<br />
that are in strong demand from small and mediumsized<br />
businesses in particular. Paper-bound direct mail<br />
is also expected to benefit from this scenario, even in the<br />
Internet age. A comparison with countries, which in<br />
some cases have even higher levels of personal computer<br />
and Internet penetration, reveals the untapped<br />
potential the German market has to offer in this area.<br />
1999 advertising market<br />
Percentage of<br />
gross domestic<br />
product<br />
1.50<br />
1.25<br />
1.00<br />
0.75<br />
0.50<br />
0.25<br />
40.8 18.0 11.8 3.8 Percentage of<br />
population<br />
using the Internet<br />
1.64 1.51 0.93 0.69 Total<br />
1.39<br />
1,39<br />
1.31<br />
0.83<br />
0.46<br />
0.25 0.20<br />
0.10<br />
0.23<br />
U.S.A. GB D F<br />
*addressed and unaddressed advertising items<br />
Sources: Zenithmedia Market Research, NUA, 1999, NOP Research<br />
Group, Business Areane Stockholm, AIMC ProActive, Osservatorio<br />
Internet, IDC Research, Interactive Media Brussels, Amarach<br />
Consulting<br />
Management Report<br />
Other<br />
advertisement<br />
Direct mail*<br />
17