SAMRA moves in line with Companies Act

According to SAMRA chair, prof. Adré Schreuder, the array and scope of challenges facing the marketing research industry are such that the appointment of a fulltime secretariat/CEO can no longer be delayed.

"Restructuring the membership base"

"Implementation is now vital to navigate the uncertainty and overreaction related to the implementation of the Consumer Protection Act (CPA) and the planned Protection of Private Information Act (POPI). It will give form to the association's strategic intent by restructuring the membership base towards becoming a fully representative association and to assist in further professionalising the organisation, thereby protecting clients as well as end consumers.

"Under a new SAMRA dispensation, the current council could function as a proper board of directors, leading the way strategically instead of operationally, as per the King reports on corporate governance. This means the operational head and CEO will have to perform several additional executive tasks within the mandate of the board," he explains.

One of its strategic objectives going forward is to involve users of research services, ie corporate companies and organisations more. To this end, the restructuring of membership is being thoroughly investigated and current members (both research suppliers and users) consulted across the board.

"By involving more users and securing their support, research should once again take up its rightful place among research clients. There are far too many management committees and executives that simply do not recognise the value and role of solid research, often discarding it as an unnecessary expense," says Schreuder.

Consumer Act concerns

The issue of consumer protection within the ambit of CPA and proposed POPI is also of paramount importance. Since the April 2011 formalisation of CPA, many clients and SAMRA members are uncertain about the implications for marketing research activities.

SAMRA can now officially state that research operations of SAMRA members are exempt from the CPA as marketing research (including social and opinion polling research) is distinct from marketing activities.

"This should in no way be seen as a disregard for the principles of consumer protection, but instead the DTI exemption of research should ensure that professional and legitimate marketing research maintains its rightful place, ultimately to the benefit of the consumer.

The implication of CPA exemption provides clarity for marketing research clients in South Africa to ensure that direct marketing activities are not confused with marketing research activities, especially concerning consumer consent.

Marketing research play a pivotal role

The continued practice of "sugging" (selling under the guise of research) now becomes an industry concern that threatens the sovereignty of professional marketing research and requires very close cooperation between SAMRA and the Direct Marketing Association of South (DMASA).

Says Schreuder, "Legislative aspects of consumer protection should never prohibit legitimate survey research contact with consumers, as was the case in earlier legislative scenarios in Europe and Australia, because the communication channel between research suppliers and consumers would be closed completely.

"While we have not yet reached that stage, the introduction of POPI may well have a negative effect, ultimately to the detriment of consumers. Without marketing research, (including social and opinion polling research) consumer protection would be virtually impossible."

SAMRA likewise has a leadership role to play in ensuring that the South African research houses and marketing research play a pivotal role on the continent, he concludes.