TARGET MARKETING
Article Reprint July 2000

Targeting European Executives


By Leland Kroll

In the mid 1990s, globalization was all the buzz, and everyone wanted to get on board. But, particularly with b-to-b projects, it wasn't as easy as simply transferring the U.S. model overseas.

Mailers soon realized international mailing was more expensive than domestic and that they often couldn't fulfill orders without quality overseas channels established. It was sexy and it was new, but it was different, and many mailers couldn't make a go of it. Then the global financial downturn hit, even the boldest of direct mailers axed their international initiatives.

More recently, the global economy has experienced a resurgence. Europe has re-emerged as a major arena for direct marketers. For example, in Germany, Europe's richest economy, direct marketing sales almost doubled in the last three years, from $15 billion to $26 billion. This coincides with what experts note as a gradual relaxation of Germany's historically rigid data protection laws.

According to The Direct Marketing Association's International Council, the major factors contributing to a resurgence in European direct marketing activity are Internet growth, the liberalization of Europe's postal agencies and other technological advances that facilitate globalization.

Direct mailers considering the design and implementation of a b-to-b mail campaign targeting European executives should note the following hallmarks:

1. Understand the data card. Be sensitive to the difference between data sourced overseas and data developed in the States. In Europe, the roles of manager and broker are not as clearly defined as they are here. With people having multiple roles, you have a greater chance of duplication. Your list broker should help avoid the duplication of files.

Be aware that many managers promote lists in their native currency, so the broker will have to convert the funds. It is possible that there may be adjustments based on currency fluctuations and timing.

There are a number of other nuances. For example, "turnover" on a European data card refers to sales volume. Also, SIC codes are not the same. For example, the current U.S. SIC for manufacturing is 20-39. Internationally, they use a different coding system based on European classifications. It is similar to our SIC codes but uses a different structure. On many international data cards, industry selectivity is more of a general business orientation or general industry.

2. Know your culture. Europe is not a homogeneous market. For example, German executives are more sensitive to privacy issues than some of their neighboring colleagues. In Italy, by comparison, there are relatively few privacy rules.

Direct mailers must be aware of many cultural distinctions. For example, there are particular differences in formal salutations when mailing to executives. For instance, a top-level British decision maker is called a managing director rather than president.

3. Have people on the ground. The traditional role of thumb was: If your mailing works well at home, it will probably do just as well overseas. This is not necessarily the case. Often times mailers have difficulty just making connections because of the time difference. Local attention and involvement is imperative.

For example, mailers must determine how each business-to-business market differs from the other, adapting their marketing models accordingly. This may be accomplished by establishing the appropriate "channels" for conducting international business. For example, when marketing to European executives, have a European distribution partner.

4. Have a great Web site. The Web is becoming a significant factor in European commerce. An estimated 35 percent of all Europeans are regular Internet users. Keep in mind, however, that Europeans pay more for Internet access.

Some people are tip-toeing back into Europe on the Internet. Web sites enable mailers to reach efficiently and cost-effectively into the European markets with b-to-b offers. The appropriate direct mail campaign effectively drives business consumers to your Web site, serving as your global storefront.

In some cases, it's a good idea to have different sections of the Web site for different parts of the world. The European segment of your Web site should differ from the Asian segment.

5. Don't assume your ahead of the game. European b-to-b direct marketing has come of age. We have to work in a collaborative environment, with respect for our European prospects and partners. If you are using a list of business publications with European subscribers you'll typically have a very sophisticated database. These are global-minded executives who have set themselves apart from the mainstream of consumer lists.

Overall, your campaign should allow you to reach a new generation of executives and a slew of sophisticated and global-minded consumers.

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