Marketing Mix Magazine May June 07

MarketingMix

CONTENTS

I 0 2 I Book Review

I 3 4 I Direct to Home

Marketing Mix reviews Brands & Gaming by David Nichols, Tom Farrand, Tom Rowley & Matt Avery, discussing the ways in which marketers could and should be taking advantage of the explosion in gaming

Direct to Home is not unsolicited junk mail but a sophisticated and targeted marketing medium

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I 4 0 I Expert Opinion: Nici Stathacopoulos Nici brings us a report from the

I 0 4 I Ed’s note

Dubai Lynx Direct and Digital Awards

I 4 1 I 7 Day [B]itch

I 0 6 I The DMA Education, the Assegai Awards and an update on the Privacy legislation

Margot Bertelsmann, editor of men’s

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mags Zoo Weekly/Weekliks, takes us

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through a frantic week

I 0 8 I News I 4 2 I Expert Opinion:

All the latest gossip in the wonderful world of the marketing mix

Gary Harwood Gary says that if there’s an itch, scratch. He’s referring to brands and

I 1 5 I Expert Opinion: Helen McIntee

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Investigates small town marketing

relationships

I 4 4 I Consent Marketing Marketing Mix brings you a

I 1 6 I Brand Anatomy

reportback on the pending data legislation that will affect marketing

Go Banking has relaunched its brand after discovering all is not as it should be

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Thought Leaders

I 1 8 I Expert Opinion: Richard Duncan

I 4 6 I Research Four of our local research thought

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leaders offer their advice and opinions on a large range of topics from rear

Richard looks at how if you put garbage in, you get garbage out, with reference to research

view mirrors and experiential to the changing face of marketing

I 5 4 I Expert Opinion:

I 2 0 I Education

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What to look for in short-courses and where to actually study

Yoav Tchelet Yoav explains why online really does work

I 2 4 I Sports media Marketing Mix looks at sports sponsorship and how to get the best deal

26 I 5 6 I Law Mix Frank Joffe gets clarity on certain critical areas of the Designs Act

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by michelle sturman BOOK REVIEW

Brands & Gaming – The Computer Gaming Phenomenon and its Impact on Brands and Businesses The opening chapter starts with a description of a Saturday night out for trendy youngsters in Kuala Lumpur. It’s not about nightclubs and bar hopping – these hipsters are in a six-storey shopping mall. They are not shopping either – they are playing or watching others who are participating in online gaming. Before you start griping about this never happening in South Africa, have you asked your kids lately what they are doing on the PC or counted the hours they spend on the PS2 or Xbox? The authors state: ‘But this is not simply an Asian phenomenon. It is just the most public manifestation of a mega-trend that is sweeping the entire world: the swift and irresistible rise of gaming at the very heart of global entertainment culture.’ Here are some facts that the authors throw at you: the worldwide gaming industry is bigger than the film, music and home video industries and has a market value of over US$25 billion. Some other interesting tidbits include the ages of gamers. Those of us over the age of 25 grew up with the first handheld games and the introduction of the PC, including Tetris and Pacman. Apparently many of us are still gaming, albeit with more sophisticated platforms such as Wii, Xbox and PlayStation. According to Datamonitor UK, the highest percentage of PlayStation 2 users are aged 24-34. Hardcore gamers even have their own world championships – World Cyber Games – with corporate sponsorship and hefty cash prizes. This is serious business. It is expected that massively multiplayer online first-person shooters (MOFPS) and massively multiplayer online role-playing games (MMORPG) will become the mainstay of gaming in the future, especially since the new generations of PlayStation and Xbox offer online capability as well. What does all this mean for the market-

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MarketingMix I Vol 25 No. 5/6 I 2007

ing industry and what do you really need to know in order to harness this audience? The authors point to the amazing success of Lara Croft, a digital character who became a worldwide celebrity. (Incidentally, few in the marketing world took much notice.) Some adventurous brands such as Jeep and Sony Ericsson have created their own video games to launch new products, generally

known as ‘advergaming.’ While there are numerous options available, such as gaming event sponsorship, the one that should get you excited (and the most difficult to achieve now) is in-game advertising. This already takes place to some extent, although not necessarily deliberately. Take the FIFA series or Colin McRae Rally games, for example. As the authors rightly point out, it would be strange to play a football team that didn’t have the correctly branded shirts or to drive a no-name rally car. However, while gamers will accept authentic branding

that adds value to the overall gaming experience, a mass assault of brands within a game will simply be rejected. (McDonald’s foray into The Sims is a great example of how not to do it.) The authors also deal with many misconceptions, such as gaming inducing violent behaviour and all gamers being smelly male teenagers. In point of fact both young and old are gaming – and the biggest gaming audience is female. The most essential chapter is Press “start” to Play – Leveraging Gaming for your Brand. It offers the necessary practical steps to enter the gaming psyche with a brand. Vital Do’s and Don’ts: Do stay out of the game itself and use your size and power to do something only you can do. Don’t do your own content or jump into bed with just anyone. Along with really pertinent questions to ask yourself before jumping into the arena, it hints at the likely appearance of the gaming industry in the coming years and at what you should know – about cellphone gaming, for example. While you could read this chapter on its own, reading the rest of the book as well helps to put everything into perspective. A very useful glossary and FAQs section is included at the back, along with handy contacts for the major games publishers. As this is a new marketing arena, Brand & Gaming is an exciting and dynamic read and provides an excellent first step for getting involved. g

Brands & Gaming By David Nichols, Torn Farrand, Tom Rowley & Matt Avery Palgrave Macmillan R650

by michelle sturman ED’S NOTE

Good o n e I received an e-mail recently from The One Show, telling me all about One Show.TV. For those of you who haven’t received the information, the nominated TV ads are on www.oneshow.tv and the public has been asked to vote for their favourites. Lowe Bull’s Get a Girlfriend is up there as well as Net#work’s Ghost Pops. My personal favourites are all of the Skittles ads and Jam for Asiasoft Corporation from Thailand. The e-mail was right. Without the website I would never get to see these ads (unless of course, I was at the One Show). According to Meredith Turner, account executive for The Rosen Group, although a lot has been done to promote OneShow.TV it has taken off due to word of mouth more than to any other efforts to promote it. “A further bid to drive people to the site has included press releases as well as Mary Warlick, CEO of the One Club, undertaking a radio media tour to promote it. The New York Times has also covered it,” she says. What I love about all of this is the fact that a made for TV ad that wins a Pencil is now recognised by those beyond the ad industry. OneShow.TV has opened up South Africa’s advertising to the world – to anyone and everyone who’s online. If I were an ad woman, I’d be making damn sure that my fabulous creations were posted on MySpace, just for a start. Then I would let viral marketing take over while I sat and basked in the glory of 70 million people worldwide viewing my ad. At the time that Meredith got back to me (which was immediately, given the time difference) on 30 April, Simba Ghost Pops was sitting at number nine in the public’s vote. Way to go! A quick perusal of the finalists for The One Show showed that SA was ranked at number five, having made it through with a total of 29 ads – a great result so far. A look at One Show Interactive and lo and behold, not one for South Africa – pretty pathetic so far. I’m hoping that the success of OneShow.TV will spur some of you into action.

blog: http://mmxsa.blogspot.com

PROPRIETOR AND PUBLISHER: Systems Publishers (Pty) Ltd. Tel: (011) 234 7008 North Block, Bradenham Hall, Mellis Road, Rivonia PUBLISHER: Terry Murphy EDITOR: Michelle Sturman Email: [email protected] JOURNALIST: Fulvia Becatti Email: [email protected]

SUB-EDITOR: Sarah Webster Email: [email protected]

Database: List Perfect

ADVERTISING MANAGER: Robyn Andrews Email: [email protected] PRODUCTION: Spencer van Graan Email: [email protected] SUBSCRIPTION ENQUIRIES: Daisy Mulenga Email: [email protected]

Copyright of all material in this publication and supplements are reserved by the proprietors, except where expressly stated. The opinions in this publication do not necessarily represent the views of the publisher. Picture courtesy of EIMAGE

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MarketingMix I Vol 25 No. 5/6 I 2007

DMA

Direct training programmes launched The Direct Marketing Association of South Africa (DMA) has launched the first two of a series of training programmes that focus on the techniques of direct and interactive marketing. The DMA courses are the only DM courses that are NQF aligned and companies are able to benefit in terms of the skills levies that they have paid. “As a method of doing business, direct marketing encompasses everything from customer acquisition and retention processes database development; ecommerce; integrated communications to loyalty and customer relationship management (CRM) programmes. Direct marketing is the fastest growing form of marketing worldwide – in all its different forms it accounts for about 60 per cent of the total advertising expenditure in the USA. The DMA courses offer newcomers to the DM industry a solid grounding. They also represent an opportunity for people who are already in the direct industry to refresh their skills and to monitor new trends and technologies,” says Brian Mdluli, CEO of the DMA.

The first two training programmes are: The Certificate in Direct & Interactive Marketing This course has been updated and redeveloped. It is aligned to NQF Level 4 Marketing unit standards and is accredited by the Services SETA and endorsed by the DMA. The course takes place over six days (two blocks of three days each) and the programme provides a comprehensive overview of direct and interactive marketing as well as a set of key skills to apply immediately back in the workplace. It represents a total of 34 credits on the National Qualifications Framework (NQF).

The Essentials of Direct & Interactive Marketing This course offers a full overview of direct marketing and takes place over two days. It focuses on how DM fits into marketing and business plans and is designed to provide basic skills. It represents 8 credits on the NQF. Both these programmes guide the learner through a step-by-step learning process, based on an integrated relationship marketing model. The model itself is grounded in many years of practical experience in the South African market and takes the latest international developments into account. It provides a framework for the planning, implementation and measurement of all direct marketing outcomes. “Both the Certificate and Essentials programmes are packed with real examples of interactive marketing activities – often drawn from the personal experience of the presenters – to illustrate the principles. They are offered by wellknown direct marketing educators, practitioners and authors, Steve Bird and Rory Duckles, joint winners of the DMA Gold Assegai Award for Direct Marketer of the Year in 2000. Overall you gain the latest know-how directly from the experts in a coherent format that ensures continuity between subject areas and easy comprehension,” says Mdluli. The courses are aimed at direct and general marketing managers, product managers, marketing assistants, advertising agency personnel (strategic planning, client service, media planning, creative) and suppliers to the industry (printers, list brokers, mail houses, database developers). DMA members qualify for a 20 per cent discount on the course fee. For more information on the programmes, please visit www.dmasa.co.za. To book telephonically please call Shanelle on (011) 706 2358.

Founder Members are offered the following:  One year free DMA corporate membership  A free (full day) customised educational seminar about direct marketing, presented by industry specialists  Representation on the DMA website  Logo on all pro bono DMA ad placements  Six free tables over the course of 12 months at various DMA events  Showcasing at various relevant exhibitions and conferences  An official Founder Member certificate  An opportunity to join the planned mentoring programme Special consideration will also be given to Founder Members through Marketing Mix, with respect to:  Nominating topics and being invited to provide expert opinions, leading sponsorship rights and occupying premium advertising positions within Marketing Mix  Nominating topics for executive roundtables that are hosted by Marketing Mix  A customised communication programme that can be implemented with the DMA and Marketing Mix

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MarketingMix I Vol 25 No. 5/6 I 2007

DMA

Privacy legislation update At a DTI presentation during the first week of April it was confirmed that the following changes (amongst others) would be made to the Consumer Protection Bill. This is a quote from the DTI presentation: Sections 11 –13 The general concern with this section was that it was duplicating both the ECT Act and the proposed Privacy Bill. After further consultations with the law commission and Justice department, it was agreed that the section would be revised as follows: a) The definition of ‘personal information’ would be deleted b) Section 11 would be deleted c) Consumers can either register a preemptive block or be removed from a marketing list on request d) Suppliers must implement measures to facilitate ‘opt outs’ by

Right on Target… DMA Awards

consumerse) The Commission can establish or recognise a register for preemptive blocks. The Bill will not deal with the collection, retention and distribution of personal information. These (matters) will be addressed by the Privacy Bill. “This is really good news and will help us in our negotiations with the SA Law Commission. The latest draft of the Protection of Personal Information BIll has been released to the DMA for comment. The Legislation Sub-Committee has decided to prepare a new submission and to meet with the Law Commission as soon as possible, as in our view the new draft of the bill is far too restrictive,” says Andy Quinan, chairman, Legislation Sub-Committee, DMA.

Join the DMA… To join, visit www.facilities.coza/dma

July 2007 will see the ‘refreshed’ Assegai Awards re-launched into the market. “The direct industry needs its own awards as it has very specific criteria. Measurable marketing awards will encourage best-of-breed campaigns and are essential to our industry and the country. Our Corporate Members and Members Agency have made their requirements for DMA Awards very clear,” says Michelle Perrow, original founder of the Assegais in 1999 and DMA Board Member responsible for this portfolio.

Marketing Mix caught up with Michelle to ask her a few questions about the awards… MMX: How far into the new Assegai Awards process are you? MP: We have established an industry representative body which is currently finalising all aspects of the awards. This includes the Assegai structure, categories, judging criteria and so on. Interest in awards sponsorship has already been expressed by a number of our large corporates. MMX: Will there be any links with other DMA’s? MP: Yes, both Brian Mdluli our executive director and I are liaising with international DMAs and with FEDMA. Our aim is to get them involved and ensure that we produce world class awards. MMX: What about timing? MP: We are looking to introduce the new Assegai’s in July 2007 with a Gala Event planned for October 2007 or early November 2007. For more information on the DMA Assegai Awards 2007 contact Michelle Perrow on (011) 808 1600 or e-mail [email protected].

DMA fees are paid annually on the anniversary date of joining the organisation and are based on the size of your company. Payment can be made via cheque or EFT. An invoice will be e-mailed as soon as you have completed the online membership. Before you go to the link above in order to register to become a member, you will need to have the following information available:  Your company details  Your company coordinator’s details ie the person who will be responsible for keeping your company details up to date on a quarterly basis  Your company decision maker’s details ie the person who will authorise your membership of the DMA and the essential payment of membership fees  The details of staff members who you believe should receive information updates from the DMA on an ongoing basis. If you do not have all the details with you, your company coordinator can go back into the system at any time to update these details Contact details: (011) 577 2780 [email protected] www.dmasa.org

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NEWS

Channel: CNBC Africa Launch Date: 1 June 2007 Platform: DStv, Channel 54 and Sentech Vivid Ownership: 70 per cent of CNBC Africa’s funding comes from the Middle East The core investment group also has ownership in CNBC Arabia and CNBC Pakistan, both channels are affiliates of CNBC Africa. CNBC Africa’s ownership structure involves a 30 per cent investment by the IDC. CNBC is part of NBC Universal. Programme highlights: The Other Dimension – an interactive political economy programme looking at the issues that influence business on the continent. Kaleidoscope – a nightly business magazine show highlighting trends, interesting

developments, lifestyle and entertainment. Late night feature programmes each weekday looking at and interacting with editors and journalists, entrepreneurs, mining issues, matters of concern for ordinary people on the continent, personal finance and close encounters with Africa’s personalities Number of viewers: Over 1.5 million subscribers across the continent. (DStv) Target market: Financial and business professionals that need useful and up-to-date business and markets information. Decision makers and the influential on the continent, including business leaders, senior mangers, government officials, diplomats and civic leaders. Ordinary people that have an interest in knowing

and understanding the business of Africa, as well as just getting to know more about the continent and its people Advertising rates: Run-ofair 50x30” spots per week: R87 500 Details: CNBC Africa is the first international business news channel in sub-Saharan Africa. The cornerstone of the channel will be business news, financial markets information and in-depth analysis throughout the day. There will be live crossings to key African markets for comment and analysis, along with regular crossings and updates from Europe, Asia and the US. Regular news updates during the day and a news report each evening will be featured. Journalists include Peter Ndoro, Nikiwe Bikitsha

and Brownyn Nielsen. Programming strategy: A unique feature will be live coverage of the opening and closing of key African financial markets. Programming will be about information and news that consumers can use to make decisions and stayed informed. While a number of bureaus will operate immediately including Cape Town, plans are for bureaus across Africa, including Botswana, Nigeria, Kenya and Tanzania. The channel will broadcast from Johannesburg. CNBC Africa will broadcast 24/7 with 12 hours of local programming, cutting across to international affiliates throughout the day for market updates and breaking news.

NEWS

Contact me

The VIP club

Contact Centres World Africa is back again, bringing with it the latest cutting-edge solutions from around the world as well as a host of international and local speakers. Some of the discussions include: South Africa as a BPO destination, setting standards for quality, effective agent motivation and outbound contact centres. The Masterclass schedule includes: connecting conversations and coaching secrets.

94.7 Highveld Stereo has embraced the online and digital world beyond the limitations of RAMS to find out more about its audience through the introduction of its loyalty programme, Club VIP. It is also a way of recognising the ongoing support of its listeners. “The development of Club VIP is a response to the request from ourselves and our advertisers to understand more about what makes our listeners tick and to be more accountable for the campaigns that we run,” says Ryan Till, group general manager, Primedia Broadcasting. Club VIP was launched in mid-January and already has just under 80 000 registered and active members. The programme concentrates on five main daytime shows 6am-10pm and revolves around random keywords that are mentioned by the presenters throughout the day. The objective is to encourage listeners to tune in for longer periods of time. Membership is free and entry mechanisms are mostly through SMS (R1.50) – members earn points per keyword used. Entries are also

What: Contact Centres World Africa 2007 Where: Sandton Convention Centre When: 27-30 August 2007 Website: www.terrapinn.com

received via the station’s website and through a mobile website. “The mobi site – using the Internet on your phone – is an exciting initiative. Although usage is still low we’ve already seen a big increase in these entries since we launched the club. We’ll continue to ensure that we’re active in this space and want to be the first mobile site that listeners visit,” says Till. There are three ways of using points earned: a shop at which items can be purchased; campaigns for giveaways and members can also burn points to enter a draw. According to Till, a few commercial campaigns have also posted great results for clients. For example, members are asked during on-air promotions to visit a particular retail outlet to get a specific piece of information in order to earn points. “The best thing about these promotions is that you can create a profile of exactly who entered when. Club VIP is a business tool that allows us to understand more about our listeners and to build a deeper relationship with them. It also enables us to offer our advertisers better value and response rates. We are really only scratching the surface now,” says Till.

Pencil case panels Marketing to kids with all the rules and regulations is difficult and the most difficult part is probably trying to reach them in the first place. Now you can do this by using the product of a new venture between The Themepack Company and Primedia Face2Face: Trendcase Media markets to schoolchildren by inserting billboards (Trendcards) into transparent pencil cases. While the pencil cases are already in retail stores – along with inserts that are available for purchasing – this new venture will see them being distributed nationwide to children in the lower LSM brackets for free. The aim is to reach one million schoolchildren during this year. The double-sided Trendcard inserts may be used for advertising as well as for highlighting social issues. According to Warren Deerans, CEO of The Themepack Company, HIV information was printed on a Trendcard and given to a group of children during research that tested the effectiveness of the medium. After just one week of exposure, their knowledge had increased by 67 per cent. The children were not deliberately made

aware that the information was on the card or that they would be tested at a later stage. Campaigns can be run regionally or locally, with a minimum run of 50 000 and three consecutive inserts. Schools are put on a route list and re-visited 8-10 times a year. Older insert cards can be collected, depending

on the campaign. When buying a package, both the gender and the area can be selected and once the creative is provided the pencil cases are handed out together with the first insert. Follow-ups take place approximately every month and are based on the school calendar.

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NEWS

Undiestanding underwear Putting on a pair of panties (knickers, briefs, grundies) for a woman is not quite the same as it is for a guy who is putting on his Y-fronts (does anyone still wear them?) or boxers. Women have a much more intimate relationship with their bras and panties. In order to understand the booming underwear industry, Bateleur Research went snooping through peoples’ intimates. Bateleur set out mainly to understand the female perception of underwear compared to the male perspective. Women’s underwear – bras and panties – can be broken down into three main categories: comfortable, sporty and seductive:

Bras Comfortable: full cup; little or no detail; natural or skin tone colours; thick straps Sporty: tight fitting; ventilation holes; no underwire; crossover backstraps; natural colour fabric Seductive: black and rich colours; underwired; padded; intricate detail.

Panties Comfortable: little or no detail; tight fitting with hidden panels; skin tone or natural colour; cotton or stretch material; full bottomed aka granny knickers Sporty: thin hemlines and stitching; natural fitting; cotton; colourful with little or no detail Seductive: high detail with lace and embroidery; high cut, sit on the hip, usually a G-string; bright colours or black; silk and delicate materials. While the above may appear to be common sense, responses from interviewees – especially male – may be surprising. Men say that a woman’s underwear adds to the excitement – rather than being a hurdle to overcome – before engaging in sex (which is great news for

Website of the month –

women). They also seem to think that women wear sexy and seductive underwear all the time! However in reality, women opt for comfort, fit, hygiene and support first. This only then followed by seductive. Men characterise women who don’t wear sexy underwear as those who wear ‘granny knickers’. According to women, underwear has personality: conservative women are associated with natural tones and practical underwear and outgoing women are associated with underwear that is exciting and brightly coloured. However both men and women agree on the definition of sexy underwear. Colours have certain connotations: black is classy, elegant and sexy; red is seductive and showing off; pink is naughty and fun and skin tones are unattractive and mature.

www.adcritic.com

The best part of this website is that you are able to watch and download the latest TV ads from around the world. You can also check out the latest print ads and interactive work submitted by creatives from international agencies. It includes a news section, interview video clips with creative legends, selected articles from Creativity magazine and a place to submit your work. You can also subscribe to the e-mail newsletter if you prefer not to have to remember to visit the site all the time for the latest updates.

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NEWS

Sweet creative

Adobe has unleashed its largest software offering ever with the launch of its Creative Suite 3 (CS3) product line. In keeping with today’s ever-expanding media landscape, CS3 includes almost every creative workflow tool available for designers and developers. The integrated package provides development and design tools for print, web, mobile, interactive, film and video production. There are six configurations of CS3, which can be bought on their own or all together in the Creative Suite Master Collection. CS3 Web Premium, for example, offers a set of tools for web and interactive design and development that includes new versions of Dreamweaver, Flash and Fireworks, as well as updates of Photoshop, Illustrator and Acrobat Professional. CS3 Design Premium includes the

above enhancements plus an upgrade to InDesign, facilitating the creation of print publications as well as website, rich media and mobile content. For video and rich-media professionals, CS3 Production Premium includes After Effects, Encore and Soundbooth as well as Illustrator, Flash and Photoshop. It caters for film, broadcast, web, DVD and mobile devices. One of the more innovative releases is Adobe Device Central CS3, specifically designed for those who are working on and creating mobile content. A library of more than 200 mobile device profiles from cellphone OEMs and operators is built into Device Central. These include details of the capabilities, constraints and features of individual devices. Content previews are available, using realistic mobile device skins to test the appearance, performance and behaviour of the content.

NEWS

Mission impossible? Those who missed CK Prahalad on his recent trip to Johannesburg missed out. Best known for his book, The Fortune at the Bottom of the Pyramid, Prahalad talked about how to cater for the poor masses and about what businesses should be looking at in order to compete in the future. While Prahalad used many examples from India and other emerging markets, including South Africa, the general feeling from the floor was that a few of the innovative ideas cited were unworkable locally. Marketing Mix got the feeling that far too many copyright: Business Report marketers are simply unwilling to try new ideas that target those living on or below the poverty line – even if this global market is worth trillions of dollars. The following are excerpts taken from his presentation: According to Prahalad, the broad idea is not about positioning yourself in an industry space: it’s about discovering an industry space.There is a preoccupation with benchmarking best practices and if we all continue to benchmark each other, everyone will gravitate to mediocrity. We should be preoccupied with focusing on the next practice rather than the best practice. The key is to recognise the range of opportunities that exist in the emerging market; focus on consumer insights that have not served before and figure out how to leverage technology and new distribution systems etc to reach them. Prahalad suggests that companies tend to look at the current situation, do a budget and call it strategy. He says that companies should rather imagine a future and then fold the future into the company. In other words, companies should move from budgets to innovation. Disruptive business models should be built. By this Prahalad means: does it radically alter the economics of the industry (budget

airlines); does it maintain and improve functionality (IT); does it make it difficult for incumbents to react (generic medicines); is it sustainable and built on logical, internally consistent business principles (single-serve sachets) and does it enlarge the size of the market (cellphones)? Another vital aspect of building a successful company is paying attention to the drivers that will change the way we look at the world. These include the convergence of technology, boundaries and ubiquitous technology. Instead of being passive buyers, consumers are going to become procreators. The following areas will have a significant impact on the way we do business and should also be taken into account: brain studies, nano technology, maths, genetics, artificial intelligence, communications/ computing, global warming, energy, search engines and imaging. Prahalad points out that price-performance envelopes are changing faster than anyone expected. What does this mean for managers? It means that everyone can have advanced technology solutions. In a local context it means that we are not limited to what we can do in the townships. High-tech is not only for the rich – the only limitation is our imagination. Taking the opportunity to use poverty to leapfrog ahead requires imagination. Poor people don’t only have cellphones today – they can also use technology. Many assumptions regarding those at the lower end of the market have proved to be wrong. As an example Prahalad cites pre-paid cellphone cards that require money upfront and rake in millions of rand. Global consumer trends also need to be taken into account. These include: an awareness of individuality and experience, involvement, risk taking, experimentation, technology-mediated relationships, global community, green and a focus on the future.

Eye popping Daniel Levy and Ryan Silberman, founders of PopEye Wrap-a-Rental Media, have taken a simple idea and turned it into big business with the concept of advertising on car hire company cars. They offer advertising space on a range of Tempest Sixt cars, which are based at all major airports. “We have had a phenomenal response to our products as well as to this innovative concept,” says Levy, PopEye Wrap-A-Rental CEO. PopEye Wrap-A-Rental offers two distinct services: the Wrap-A-Rental and Adopt-A-

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Rental products. The Adopt-A-Rental product involves placing marketing paraphernalia in the entire national Tempest Sixt fleet. The Wrap-A-Rental package offers marketers ad-space on branded fleet cars, as well as marketing paraphernalia inside the car (including samples, pamphlets, brochures, etc). Tempest Sixt ran an online pole for 10 days, asking whether clients would rent a car that is wrapped in branding. Of the 1 500 who responded, 90 per cent said that they would do so if this meant lower hire rates. In this case both consumers and advertisers win: consumers get cheaper rates while advertisers get exposure. Each rental car cov-

ers an average of 4 500 km and is seen by approximately 20 000 people each day. The Panel Mosaics offer marketers a variety of panel sizes and positions, thereby providing full branding as well as great flexibility and choice. “Outdoor media is restricted in various regions of South Africa, which is why our product is unique and desirable. We can brand 100 cars based at Cape Town airport and put our clients’ branded umbrellas and cooler bags into them. These cars invariably make their way to the beach – and so do the free products,” says Levy. For more information and ad rates, visit www.wraparental.co.za.

NEWS

Just add music

Act and song

Why it’s hot

Genre and emotion evoked

Ok Go Here We Go (treadmill video)

Winner of Grammy and MTV awards for best video. Syndicated by Nike (US) and MTN

Rock – youthful, energetic, positive

Mims This Is Why I’m Hot

1.4 million ringtone downloads in the Us in two months. No 1 for three weeks on Billboard Hot 100. Very catchy

Rap – powerful and masculine

Kelis feat Will I Am It’s The Weekend

Kelis and Will I Am sing about having a fun time on the weekend – for any social brand

Pop – fun, mainstream, young and upbeat

Naturally Let It Rain

Seven guys sing powerfully and captivate a cappella style. Their first single Feel It is one of the biggest hits of the year. Interesting sound; will cause curiosity

Pop – crossover – young and old. Fresh and vibrant

A quirky fun phenomenon of a song from France

Pop – light-hearted, charming, cute, happy

Herman Dune Wish That I Could See You Soon

Chemical Brothers All Rights Reserved

Powerful electronic music from a classic band

Dance – uplifting, energetic, speed, drive

Suzanne Vega New York Is A Woman

Strong awareness and favourable attitudes towards her unique vocals will cause an audience to listen

Jazz – soft, quirky, peaceful, relaxing

Tasha Baxter Fade To Black

Instant and catchy; it’s happy, recognised and liked

Pop – cheerful, fun, friendship, social, full of life

DJ Bongz As Long As You Love Me

Well-known and great for a bash

House – anthemic, forceful, festive

Hip-Hop Pantsula Jabba

Very crossover and popular ad

Hip-Hop– patriotic and positive

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Picture courtesy of EMI

Picture courtesy of EMI

In the first of a new column, advertisers and brand owners are given an insight into which music is currently enjoying its 15 minutes of fame and to the sounds that would make a brilliant soundbed for an ad. It includes a wide range of local and international music styles and most importantly, it puts marketers in the know by highlighting songs that are hip and happening within different markets right now. The following list is courtesy of EMI Music South Africa. Please contact Roy Harman Tel: (011) 911 1513 E-mail: [email protected]

NEWS

Taxi TV Provantage TTV is another way of reaching the millions of commuters that travel by taxi daily. In this case the advertising travels with them in the form of TV screens, keeping them entertained for the duration of the journey. Created by Provantage Media, the TV screens are only installed in new Quantum taxis and are conveniently situated for passengers to view. The screens are robust and lockable and content is preloaded onto a chip, which is then loaded into the TV by specialist technicians. Each screen possesses a barcode that records vehicle registration, driver details and (significantly) driver routes. Drivers receive a fee for having the TV. After intensive research involving taxi drivers, it was decided that the TV screens would not have sound as 70 per cent of drivers didn’t like it. They do however have unique content on a 30 minute loop. Advertising content is set at 30 per cent and could rise to 40 per cent in the future. Preferential packages are available to accommodate exclusivity in certain categories and deals consist of monthly or yearly packages. Content (all of which is in English) includes film reviews, lotto tips, quizzes, moments in history, hip and happening events, beauty makeovers and funnies. A tie-in with Kick Off magazine content has also been agreed. “The recommendation for advertising on Provantage TTV is to create something unique while remembering that there is no sound. We are able to offer regional advertising as well as an integrated package across our other brand activations. However, it must be stressed that the TV ad should be able to work as a standalone,” says Rene Venter, new product development manager, Provantage Media.

Two hundred screens have been launched nationwide. These will be followed by a further 200 in June and another 100 in July. There will be a second roll out at some point in the future. Independent research into Provantage TTV was undertaken last month by Markinor. A major component was ‘to achieve a better understanding of commuters’ needs, likes, dislikes and attitudes around the new concept of in-taxi advertising.’ 100 respondents were interviewed over one week and interviewers travelled in taxis to observe reactions and responses to adverts on TTV. It was found that forms of advertising seen or heard in the past week, in the taxi, TTV came top with 100 per cent, above radio (91 per cent), ad outside the taxi (74 per cent), billboards (65 per cent), pamphlets (31 per cent) and print ads inside the taxi (30 per cent). In terms of advertising awareness, prompted awareness was generally high with ads for Nokia, Aquafresh and Clover; Kick Off led the way with 85 per cent prompted awareness. What is more telling is a fictional product ‘Goo’ was created for and only exposed on TTV. ‘Goo’ generated an unaided recall of 32 per cent and aided recall of 66 per cent. For content, Comic Relief had the highest recall (54 per cent), followed by a Nokia competition, makeover, HIV and SA history. Ninety nine per cent of respondents claimed the screens were totally visible for the entire duration of the journey, with 88 per cent aware of what was flighted on the screens. The majority of commuters spend between 25 and 40 minutes in a taxi.

Brandz The 2007 Brandz™ Top 100 ranking has been released, along with a few surprises. The fastest growing sector is fast food, followed by luxury, motor fuel, personal care and technology. Long live the consumer! Millward Brown interviewed over one million consumers regarding almost 40 000 brands worldwide. For further information visit www.brandz.com

The top brands by category: Top 10

BV 06 (US$m) Apparel: Nike Beer: Budwesier Cars: Toyota Fast Food: McDonald’s Financial Institutions: Citi Luxury: Louis Vuitton Mobile/wireless: China Mobile Soft drinks: Coca-Cola Motor Fuel: BP Personal Care: Gillette

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10 290 9 977 33 427 33 138 33 706 22 686 41 214 44 134 5 931 17 954

Google GE Microsoft Coca-Cola China Mobile Marlboro Wal-Mart Citi IBM Toyota

BV 06 (US$m) 66 434 61 880 54 951 44 134 41 214 39 166 36 880 33 706 33 572 33 427

EXPERT OPINION by helen mcintee

Bush basics Three months ago I took a huge plunge – I packed up my house, my daughter and my city life and moved to Hoedspruit. For those of you who don’t know, Hoedspruit is a very small town in Limpopo, roughly 120km from Tzaneen and 160 kms from Nelspruit. I mention these distances only because they give you an idea of how far I have to drive to get to my nearest Woolworths! Hoedspruit, according to my map, has 18 streets and not a traffic light in sight. We are therefore not pestered by people who are selling super glue or cellphone chargers. In fact, the only trader of this nature (that I have seen) is the car guard who tries to sell catapults on the side. We have a Friendly 7-11 store that closes at 9 pm and until recently, only a Spar for groceries. When the longawaited Pick ’n Pay store opened last month, it was as if the circus had come to town – there was a real carnival atmosphere with loud music, sweets for the kids and balloons! While Hoedspruit doesn’t have a CNA or specialised bookstore, there are two garages, the ever present Wimpy and a gem of a bottle store with a selection of wines that I consider vastly superior to most in Johannesburg. There are also many hardware and building supply stores (for which I am grateful, as these have always been on my list of favourite places to shop!) As a professional marketer of some 25 years standing, I have been intrigued by the marketing methods that are implemented in small towns such as Hoedspruit. It has occurred to me that so many of us (professional marketers) spend most of our working days (and nights) slogging it out in tall buildings, analysing the pros and cons of advertising in the Sunday Times or scraping huge budgets together for a new campaign on M-Net or 94.7 Highveld Stereo. In doing so we have perhaps lost touch with the millions of people who don’t live in the concrete jungle. Marketing here is as basic as asking the friendly owner of the gift shop to shove your pamphlets into her customers’ paper bags. Alternatively you might place a small advert (usually designed in Microsoft Word) in either the Hoedspruit Week or the Kruger 2 Canyon. Both of these are read from cover to cover and

“

Don’t you think that this ‘non-city’ market is perhaps one that marketers should assess and consider? It might be worth its weight in gold.

”

back again, probably because they are almost guaranteed to feature someone that you know. These publications have become the local ‘directory’ of services and are especially useful for town newcomers like me. Rubbish bin advertising is also still extremely popular. It’s a very useful guide when you want to find a specific store in Hoedspruit – you just drive around its 18 streets and look for the store in question. There is a sizeable notice board situated

near the ATM and while you are waiting in the queue (of usually only one or two people) you are able to peruse the employment opportunities. You can also examine what’s for sale and what new events are taking place over the weekend. Apart from the notice board, most stores or restaurant windows feature notices such as the feeding times for the friendly hippo down the road or the contact details for the local hockey club. Road signage is very effective because it displays telephone numbers written in large and visible letters. (This is how I tracked down the local beauty spa.) After living in the city for so long, I also find the high level of service extremely impressive. (This is a marketing method that so many huge companies seem to leave out of their plans.) I can phone the local butcher and he will quite happily select, cut and wrap the order for me to collect later on in the day. When purchasing some furniture, I was informed by the shop owner that delivery was no problem at all as the “the lady at the clothing store has a bakkie.” None of this ‘small time’ marketing is due to a lack of money – it just works. Consider that Hoedspruit is set among the very best of South Africa’s game lodges. It is situated about 40 kms from the Kruger Park and has a small but beautiful award-winning commercial airport that caters to tourists by offering twice daily flights. It is surrounded by big farming estates and has a large and active air force base. Many people, both in and around the town, are self-employed city life ‘refugees’ or business owners. For these individuals it is a matter of forgetting all the fancy competitions, glossy magazine advertising and massively expensive newspaper ads – it’s about getting back to basics. Don’t you think that this ‘non-city’ market is perhaps one that marketers should assess and consider? It might be worth its weight in gold. g

Helen McIntee director, IMM Graduate School of Marketing

(011) 628 2038 [email protected]

Vol 25 No. 5/6 I 2007 I MarketingMix 1 5

by fulvia becatti BRAND ANATOMY

Get ready, set, go banking In 2006, Go Banking began to conduct specific customer research, which would guide the complete overhaul of the Go Banking brand. In spite of the belief that they had a strong presence in the market, they were disappointed with the brand’s acceptance and felt that their customers had a lot to teach them. “Following the customer research we decided to take some time out to improve,” says head of strategy, Steve Bedingfield. Now Go Banking is back with a new look, a new feel – and plenty of bang. They addressed issues in six key areas that included: the price and convenience of the products; the reliability and responsiveness of the brand and the staff; the brand itself and how customers related to it. While customers appreciated the fact that the product made banking convenient and easy, they were unsure about Go Banking’s positioning and exactly what the brand offering was. It was unclear whether Go Banking was a Pick ‘n Pay loyalty card, a shopping card or a bank card. “As a result we found that our customers’ confusion led to the erratic and limited use of their accounts,” says Bedingfield. Customers also expressed concerns about the reliability and credibility of the product, since it was not established within a traditional banking environment. “It didn’t have the gravitas of a serious bank behind it, even though it is a division of Nedbank’s business. Customers don’t want Pick ‘n Pay to be their bank.” Taking this feedback into account, Bedingfield brought together a team of specialist companies and individuals to tackle each area of the Go Banking brand and to collectively engineer the brand’s direction. Y&R Hedley Burne was tasked with the ATL and brand strategy; Amorphous developed the new brand look and feel as well as the website; Nota Bene worked on the media planning

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and Blue Apple was placed in charge of the BTL, direct marketing and copy writing. Grapevine Communications tackled the PR. “Throughout the process we did it together and all the involved parties made an input and were able to have their say. It was as though they were holding up a mirror, which was painful at a lot of stages because we were proud of the way we had been doing things, even though our customers didn’t relate to it,” says Bedingfield. In addressing the look and feel of the brand, the Go Banking logo was simplified in the hope of making it more attractive to customers. To overcome the issues that were related to the identity and function of Go Banking, the Nedbank and Pick ‘n Pay name brands were separated from the Go Banking brand name in the logo (although the green and blue logo colour scheme pays tribute to its parent companies). Promotional literature was revamped to make it reader-friendly: it now reinforces Go Banking’s role as a bank (clarifying consumer confusion). “All our literature – from brochures to website and call centre engagements – has been simplified to tell it just like it is. While previously our material (and approach) tried to tell the whole story at once, we now tell it simply and in digestible, bite sized chunks, resulting in better understanding and improved messaging,” says Bedingfield. The literature is now devoid of the marketing/sales pitch and the banking jargon that had previously confused customers. He has since received letters and e-mails from Pick ‘n Pay staff indicating their approval of the new literature: its colourful design and simplicity have made it more attractive to customers. “We believe that if we give you the right facts, you will make the right decision – and we do believe that we have the best valuebased offer,” says Bedingfield. Go Banking boasts great rates, no annual card fees and pricing that has remained

BRAND ANATOMY

unchanged over the past three years. Their cards have also been revamped. They have done away with the Gold and Silver status of clients, opting instead to provide all their customers with the best service and the best treatment. Previously the bulk of Go Banking’s promotional activity was predominantly represented in-store – literally only in-store – and this had entrenched consumer belief that this was a Pick ‘n Pay loyalty or cash card. “We have improved our in-store message and have moved the bulk of our activity into the marketplace through varying degrees of media and PR activities,” says Bedingfield. The focus is on fun but not at the expense of serious banking. The service is now outbound and engages customers on a voluntary basis, whereas previously the in-store sales staff pushed sales. Today the Go Banking brand is advertised through the use of outdoor billboards, radio campaigns, TV advertising and consumer media (business publications etc where, according to Bedingfield, the message is best received). The brand now also makes use of direct marketing platforms, including SMS interactions. The 500 silhouette cut-outs are perhaps the team’s favourite promotional component. These are placed in store (and in other key locations such as major road intersections). The life-sized silhouettes generate buzz, cause disruption and carry a provocative message. “They are strategic and more mobile and allow us to respond very quickly in our campaigns. Hiring a crowd of 500 people is difficult – and we already have them in the form of these silhouettes,” says Bedingfield. The Go Banking call centres also underwent a makeover in response to customer feedback. Some of the major related issues included the fact that individual agents were dealing with specific tasks and that customers would be handed from one agent to the next in a single phone call. They had to call different numbers (depending on their enquiries) and often did not know which number to call. Queuing times were too long and first call resolution was limited to a few enquiries. Now call centre agents work in a comfortable and spacious environment. “This has gone a long way to improving the morale and commitment of the agents,” says Bedingfield. They also receive extensive training on everything from general life skills to banking skills, etc. As a result of this multi-skilled training, first call resolution is at 90 per cent. “We now have only one call centre

number and very few IVR options, which ensure quick access to a call agent.” The team has received numerous compliments on the improved call centre experience, including a very positive Finweek (15 March 2007) review. While the brand’s new positioning has not yet undergone official evaluation and measurement, it has already seen very positive results. Bedingfield points to a growth in real active accounts; growth in usage per account (ie transactions per account holder); account holders using their accounts beyond the Pick ‘n Pay environment; growth in the usage of account facilities (such as debit orders, Internet banking, etc) and a sales increase relative to the increased brand awareness and overall transaction growth. He adds that the success of the rebranding lies in the increased activity of the customers. A further positive development is the improved rapport that Go Banking has with Pick ‘n Pay staff, who now take the initiative in providing the team with feedback. They also receive training and will hand out call centre business cards when they cannot answer a customer’s questions about Go Banking. “They are happier because they no longer feel trapped by complicated customer questions,” explains Bedingfield. Brochures at the till points are taken up more rapidly and online and call centre traffic has increased. The new website is more intuitive, allowing visitors to find the information they need swiftly. “While the measure of our success is how quickly we have raised the bar, we’re not resting on our laurels. Every day we have to behave in a manner that gets us closer to the five out of five rating,” says Bedingfield. He adds that the revamped Go Banking brand is aimed at those who enjoy contemporary society; who want to be in the now and who are progressive and willing to express their identity through the choices they make. The Go Banking customer is looking for liberation from traditional banking methods and wants banking to be easy, fun, uncomplicated and simple. “We are definitely attracting an astute customer who understands banking. In the month since our relaunch we are happy with the progress we are making, which is in line with our plans.” g

Vol 25 No. 5/6 I 2007 I MarketingMix 1 7

by richard duncan EXPERT OPINION

Garbage i n g

“Ensure that your research company has covered all the bases and that it has made the necessary contingency plans for the unforeseen.”

1 8 MarketingMix I Vol 25 No. 5/6 I 2007

This old adage is never truer than when it is used in the context of market research. The quality of the output of research groups is completely contingent on the calibre of their input. During a career that has spanned two decades I have sat in on some spectacular research groups and have witnessed my fair share of unmitigated disasters. The latter always comes at a great cost to clients in terms of wasted time and money. More often than not, the client walks away with a limited amount of new information. Occasionally the group moderator will tease out some real nuggets and great insights but generally, clients complain that they have heard it all before. There are many reasons for this phenomenon. Certainly great facilitators can make all the difference. If they are well briefed and if they prepare properly they can collect invaluable insights from group participants and get past the predictable answers. However, the formula for success shouldn’t rest entirely on their shoulders. In order to get it right the correct steps need to be taken right at the beginning of the process and each stage needs to be properly completed. Sadly this is not the norm and this is where we find the Achilles heel of qualitative research. Frequently the clients, be they marketing departments or advertising agencies, haven’t thought through what they are looking for. Sometimes this is because they are on a fishing expedition while at other times they are merely seeking to ratify an existing belief, concept or idea. A further complication arises when a project is rushed because the client has not allowed sufficient time for the exercise to be completed. This often means that the agency planner or research executive only gets the discussion guide to the client one or two days – and on occasion only an hour – ahead of the groups. The same applies to the research boards or animatics… On top of this the moderator is often only fully briefed just before

the first group starts. I have long since learnt that research groups should not be rushed and that a great deal of time, effort and concentration should be invested by all concerned in the early stages of any research project. There are also times when the right route requires fine tuning along the way and in these cases the discussion guide or group participant profile may be changed based on learning’s from the initial groups. Whilst this may appear to be wasteful, the knowledge gained should ultimately more than justify the additional time and money spent. While doing some desk research of my own before writing this article, I spoke to a number of research specialists here in Sydney and in South Africa. I finally turned to Research Surveys and recently retired CEO and doyen of the industry, Henry Barenblatt, for counsel on this matter. After considerable assistance from Barenblatt and his colleague Kudzai Guvi, the qualitative account manager, I spoke at length with Kim Krone, national qualitative projects manager. Her candour and insight into the industry was refreshing and furnished further proof of the high level of professionalism that I have come to expect from Research Surveys during my 11 years of working in South Africa. So where does qualitative research fall short and where does it sometimes come unstuck? While I discovered a few glaringly obvious areas (which I will cover) there was one in particular that was frighteningly simple and yet dramatically and disproportionately important to the final outcome of research groups. (Get this one wrong and frankly, it’s all a waste of time.) Firstly, what are the more obvious potential slip-ups? Not surprisingly, moderators don’t really know what participants look like before they walk into the room. This may give rise to problems that might be avoided if better intel is supplied upfront on each participant. It puts pressure on the moderator to manage and control groups and it becomes even more

EXPERT OPINION

n garbage out difficult if they have a troublesome participant. It also places an emphasis on the importance of proper training for moderators. If you have ever seen the old Henry Fonda movie (remade with Jack Lemmon) Twelve Angry Men you will remember the power that one person has to change the minds of others. It’s up to the moderator to watch out for this. Whilst I’m told that there is an industry surplus of moderators, the really good ones are rare. Wouldn’t it be great if there were a central database that kept a record of problem participants? Whilst most research companies have internal databases, they only become effective in the bigger research companies. SAMRA would be the only other viable alternative, since research companies tend not to share data for practical and legal reasons. Consequently there is no formal black list. Have you ever wondered whether the new product that you are investigating and the new brand positioning that you are testing will remain a secret after a research group – and whether the participants will tell their friends or families? Not all participants sign confidentiality documents and in any event, how would you trace a leak back to one of them? This brings us to the major Achilles heel of qualitative research groups. The key to success or failure starts with the recruitment process. No matter how good the moderator, the facility being used, the support material that is prepared or the discussion guide, if you have the wrong people in the room you might as well go home early. The accuracy of the information provided by the group participants completely depends on their honesty. Since people can become stale and ‘coached’ they fail to qualify to attend groups if they have been over-exposed to similar research groups and are research groupies of a sort. This can directly affect the value of the group’s output. Standard SAMRA guidelines stipulate that they should not have been to more than four groups; should not have attended a group in the last six months and

should not work for a related business. If participants fail to disclose the correct answers to these questions, either at recruitment or in the screening questionnaire when they arrive, they can directly compromise the probity of the research findings. The recruiters themselves (the people who go out and recruit the group participants) represent another aspect of the recruitment process. Have you ever given them a thought? On the whole they are freelancers who are only paid for the quality participants who show up. They tend to come from all walks of life rather than having some sort of formal qualification or industry accreditation. Some are exgroup attendees and where they live is often more important than who they are. This is clearly a recipe for disaster because the quality of the work varies according to each person and this fundamentally undermines the potential for consistency in recruiting group participants. To use a gambling analogy, it’s like changing the croupier each time the roulette wheel is spun – it resets the odds. How do they recruit? Some recruit through their networks and through word of mouth. This is fine, provided they conform to SAMRA’s rule that not more than two people in a group may know each other. Then there is the intercept recruit who is identified at a specific place, eg in front of a yoghurt fridge in a supermarket. Whilst this allows the recruiter to find relevant people, this method does have its flaws. Some also recruit by using the telephone, which is the least desirable because it’s non-visual and so further limits effective screening. Finally, there is ‘list recruiting’ where the specific details of known customers (such as BMW drivers) are provided by the client. This is one of the most difficult routes since acceptance levels are affected by the fear of this being a sales tactic, even if recruiters have an endorsement letter or an introduction from the client. The recruiters don’t have any formal training for this process, although some companies do

run workshops to update them on the desired procedures. Research Surveys has realised the importance of this area and are appointing a recruitment manager to improve the quality of their recruiters. The business of recruiting for business-to-business research is more complicated and has given rise to specialist companies that find group participants. This automatically raises the professionalism bar. Among the key things to remember when embarking on a qualitative research project are making sure that you know who your consumers are and setting the correct recruitment criteria. Don’t be afraid of setting more filter questions. This may require additional funding and time but the results should justify the costs. You should also avoid approaching groups with a preconceived notion – and don’t react if you don’t like the truth that emerges. While it is your prerogative to ignore it, if this is the case, you should ask whether you should be conducting research at all. I hope that this article has served to help you to appreciate some of the potential flaws and pitfalls in qualitative research groups. Given the cost of running groups these days, it seems logical to me that any loose ends in the recruitment and preparation phases should be tied up before you sign any cheques. I am not advocating the demise of groups nor do I believe that they cannot be effective. I simply believe in the old adage that ‘forewarned is forearmed.’ Just ask the right questions to put your mind at rest. Ensure that your research company has covered all the bases and that it has made the necessary contingency plans for the unforeseen. You cannot do more than that. As long as market research is driven by human nature it will remain more of an art than a science. g

Richard Duncan Sydney, Australia

+61 411 549 791 [email protected]

Vol 25 No. 5/6 I 2007 I MarketingMix 1 9

by fulvia becatti EDUCATION

A learning

curve

Change is a constant within the marketing environment and marketers continually need to keep up to date on the latest trends. Courses and workshops offer an ideal way for marketers to extend their knowledge and skills in bite sized sessions. “Things change all the time and generic courses tend to be quickly outdated,” says Alexia Georgiou, academy manager, Africa Academy for Communications. When discussing change one must also enquire about industry transformation. Is transformation being effected – and what is being done to address this issue? Short courses and workshops offer great value for qualified marketers who are simply wanting to up-skill. What should one be looking for? Georgiou believes that a hands-on approach and a concise, cost effective package are ideal. Kathy Mumford, marketing consultant, IMM Graduate School of Marketing, punts the value of relevant content that is presented in the right contextual ‘language’ as well as the appropriate application of theory. As Eva Csernyanszky, owner and founder of the Friends of Design Academy of Digital Arts puts it: “The courseware should be up to date and should integrate mediums across different software applications. The course itself should mirror what’s hot out there and equip you to take it further on your own.” Dr Ludi Koekemoer, head of the AAA School of Advertising, speaks of the importance, value and applicability of focused content. Mumford believes that good courses involve the sharing of ideas and experiences. She adds that they should add value to one’s CV, while also providing one with skills that can be applied in the working environment. A good course is recognised by the relevant institutions and agencies. (Registration with the Department of Education and Services Seta accreditation are among the right

2 0 MarketingMix I Vol 25 No. 5/6 I 2007

credentials to look out for.) “I think the secret really lies in having a good team of lecturers. They should have more than a few years of experience in their field of practice and even more importantly, they should currently be in the process of creatively integrating the technologies themselves, pushing boundaries and experimenting with what they know,” she says. Ramon Thomas, managing director, Netucation, agrees that facilitators should have a track record in the use and implementation of the media and methodologies that they teach: “A good course is one which has a practical component; one that you can learn by doing. A bad course only includes theory and you’re expected to figure it out on your own when it comes to the practical implementation.” Conceptual thinking and problem solving modules are also very valuable, particularly in developing creativity, says Csernyanszky. It’s becoming ever more important to develop skills in new media, particularly in Web 2.0 (blogging, social media, etc), throughout the marketing, advertising and creative industries. Thomas says, “Most graduates are going into the workplace with very little understanding of how these new technologies work – those who have taken it upon themselves to learn more about them may only be partially prepared for the task at hand.” With the vast array of courses, workshops and presentations on subjects that range from branding and new media to digital design, there is no excuse for marketers who don’t take advantage of the learning opportunities that are available. “There is a huge need for training and development in our industry,” says Georgiou. There is also a need for marketers to refresh contextual input, such as changes in the legislative, competitive and consumer environments, says Nicola Kleyn, senior lecturer, Gordon Institute of Business Science. What should you be learning more about?

Mumford has this to say: “With regard to industry trends, I think that marketers need to gain knowledge about the following key aspects: new media (such as the cellphone and Internet), services marketing (i.e. intangible products) and global marketing (including marketing to different cultural groups).” Thomas emphasises the focus on multimedia experiences and campaigns as well as on user generated content (of course this includes word of mouth marketing, which has more power to drive sales than any other form of online marketing). “You cannot buy attention any more. You have to start thinking about how to amaze small groups of people or communities in the way that they prefer.” Kleyn lists financial literacy, as well as customer psychology and sociology, as another two areas that marketers need to focus on. For designers, having applicable skills is more important than having experience in the field. “This is where we stand after 30 years of the PC and 12 years of the World Wide Web. The medium through which we now communicate as a human race is the Pixel. This is a digital world and it’s the download era. If this isn’t influencing the way you think and produce, you are out of touch,” says Csernyanszky. Sadly – according to Lerato Ndoro, Group HR director, FCB South Africa – it seems that in the advertising and creative industries there is an attitude of been there, done that, know everything amongst the older generations. Generally, they don’t pursue extra training unless the agency conducts in-house training. The trend seems to be that it’s the younger crowd (who have been working in the industry for less than five years) who are hungry for knowledge: they are the ones who are taking the initiative to sign up for short courses to supplement their knowledge and skills. Other education issues that are impacting on the marketing and advertising industries relate to transformation. Is the industry doing

EDUCATION

enough to address this? Is it What to look out for in a good animation diploma? enough to hand out a few scholarAccording to Depth VFX (an animation ships to previously disadvantaged school based in Johannesburg), students every year? In a word, no. “The need is so great that there can the following aspects are important never be enough scholarships and considerations when it comes to choosing support,” says Mumford. While prean animation course: viously disadvantaged students may be awarded scholarships, they also • The length of the course (if the duration need support to survive a degree or is less than two years it will be more course. “You can take a student to a university – but do you know specific or focused and it might not qualify as an industry-recognised diploma) where he/she comes from? As far • Software applications (many jobs will require that you are familiar with specific software) as I am concerned, giving a scholar• Course tasks (should expose you to a diverse set of skills; should teach problem solvship is not enough. There is no holistic approach in these proing, practical application, time management and working to deadlines etc; should be grammes. We need to do more relevant in the real world) than just give money; we need to • Instructor experience and history (instructors should keep up to date with the latest focus on life both in and out of school,” says Ndoro. For many techniques and software developments; they should either work in the industry or township-dwelling students, the have sufficient industry experience; internships should be included as part of the cost (both financial and otherwise) curriculum) of travelling to and from an institution to fulfil a scholarship is greater • Post-course benefits (look for internships and exposure to the industry) than they can afford. It is therefore • Curriculum (must be relevant, cover all the basics and offer some sort of speciality) not surprising that the dropout rate • Fees (investigate as many schools as possible) is so high. The fact that they may not have support at home or in the • Post graduate employment rate (does your choice of institution guarantee employment township community exacerbates or have strong relationships with actual animation companies?) the problem. In addition, parents often have a poor understanding of • Internet access (this is essential to instruction and to independent research and learning) marketing as a career. “Maybe we • Personal goals and expectations. need to focus on delivering ‘bridgFor further details about Depth VFX, contact 08611 DEPTH or ing’ courses to take care of some of the gaps, rather than just providing email [email protected] or visit www.depthvfx.com. financial assistance,” says Mumford. She adds that schools are not doing enough to prepare students either: literacy virtually no black people in this industry. The to the theory and its practical application in and grammar are frequently underdeveloped, latest figure is in excess of 36 per cent.” He the field.” She insists that this will not be as are logical and rational thinking skills. has found that while agencies are taking in achieved without increased collaboration While Koekemoer is positive about the grownewcomers, they are not prepared to train between formal institutions and ing number of black students entering the and mentor the new staff or pay them agencies/companies. In order for this to hapeducation system, he acknowledges that the accordingly. Koekemoer says that although pen, she says, the marketing and advertising disadvantaged background of many students funding for scholarships and training is industries need to open up and position marhas not afforded them the kind of private becoming less of a problem, in general keting and advertising more attractively. school education that prepares them for tertiinternship programmes (such as the Seta proNdoro adds that in townships, for example, ary education. As a result, skills such as langramme) are not being utilised efficiently. parents have a limited understanding of guage proficiency do not meet industry stan“The money is there: employers just have to advertising and marketing and of how their dards and requirements. “We need to do kick-start the whole process and do the children will make a living in these fields. more to retain these students and help them paperwork in the correct manner. The indusOpening these industries up through open to get up to speed more quickly,” he says. He try is unaware of this fact and doesn’t trust days, career days and mentorship propoints to mentorship programmes and addithe seta,” says Koekemoer. Ndoro believes grammes, will make them more transparent. tional computer literacy classes as a suitable that perhaps internships and learnerships “Marketers need to work together to ensure means of student support. need to be incentivised so that more agencies that they have access to a professional body With regard to transformation, Koekemoer begin to offer them. “We shouldn’t only offer that promotes the growth and reputation of has this to say: “Five years ago, there were the training. We also need to expose learners the marketing profession,” says Kleyn.

Vol 25 No. 5/6 I 2007 I MarketingMix 2 1

EDUCATION

Who offers what: AAA School of Advertising: Marketing Part Time courses: The AAA Part Time Diploma in Marketing Communication (MC) specialises in Account Management, Brand Management or Media Management. It incorporates the following part time modules (candidates can enrol for individual modules): • AAA Module in Communication • AAA Module in Principles of Marketing • AAA Module in Business Management • AAA Module in the Practice of Marketing • AAA Module in Principles of Marketing Research • AAA Module in Integrated Marketing Communications • AAA Module in Consumer and Buyer Behaviour • AAA Module in Marketing and Advertising Planning Process • AAA Module in Account Management • AAA Module in Brand Management • AAA Module in Media Management

AAA Module in Brand Management This module incorporates the latest theory and the practical application of both brand management and account planning respectively. Course content includes: introduction to brands and brand equity; brand elements and brand identity; new products and extensions; brand management and the law, etc. Classes begin on the 2 June 2007 and end on 13 October 2007 (the exam is written on 27 October 2007 and requires a 50 per cent pass mark). Classes are held on Wednesday evenings and on Saturday mornings. The cost of the module is R7 350. For more information about this and other courses, contact Alison on (011) 781 2772 or e-mail: [email protected] or visit our website on www.aaaschool.co.za

Marketing Mix / AAA School of Advertising Competition

MarketingMix

The AAA School of Advertising (owned by the ad. industry via the ACA) is tasked with turning out achievers who are in demand and ready to be effective from day one. These are people who have experience and the ability to squeeze the last milligram of creativity from their brains. This includes creative media selection, creative marketing strategies and creative account or brand management as well as creative executions. The AAA School is the only one of its kind that is owned by the advertising industry. It is also the only one in South Africa that provides graduates with an internationally accredited diploma from the International Advertising Association, New York. AAA offers evening courses related to advertising and communications for working professionals who want to either polish or add to their skills. Candidates who have a minimum of two years of work experience in a marketing or advertising related field qualify to do a three-year Diploma in Marketing Communication on a part time basis. The school specialises in serious theoretical and practical learning that prepares people for the real world in an ad agency or marketing department. AAA School sources guest lecturers from the industry to provide insights into the experiences they have had in their designated fields. For more information regarding our part time course please call Alison on (011) 781 2772. You can also email Alison at [email protected] or visit our website on www.aaaschool.co.za AAA School is giving away one seat for their Brand Management or Media Management or Account Management course. One of our readers will have the chance to stimulate his/her intellect by attending one of the most prestigious marketing communications institutions in South Africa.

Competition Question Marketers are spending less on above-the-line advertising. What do you believe will be hot in the next three to five years if you take all possible marketing communication tools into consideration? (maximum 500 words) All you need to do is to respond to the question below and e-mail your answer to [email protected]. The winner will be announced in the July/August issue of Marketing Mix, so watch this space.

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EDUCATION

The National Electronic Media Institute of SA (NEMISA):

Netucation: Netucation is an online research organisation based in Johannesburg that focuses on understanding online opportunities. They are currently in the process of registering with the Services Seta. Visit www.netucation.co.za for more information. You can also contact Ramon Thomas on (011) 433 0134 or e-mail Ramon at [email protected].

NEMISA specialises in teaching the production and technical skills that are applicable to the TV, radio and broadcasting industries. It offers training in TV, radio, animation, broadcast engineering and multimedia design. For more information contact NEMISA on (011) 484 0538 or visit www.nemisa.co.za. Short courses: • Digital photography • Camera operations • HDTV for the broadcast industry • Advanced audio production • Autodesk 3D Max • Ten week animation course

Vega: The Brand Communications School Courses: Social Networking Success workshop (half day): “The major value of this course is that it offers a holistic picture of social media, marketing and what is often called Web 2.0, all in one package. This is a crash course to introduce participants to the specifics of the shift that social media are causing – firstly, through the production of content and secondly, through the consumption of content. The distribution system is changing and morphing into something that old school marketers are afraid to confront. This course empowers them with the confidence that they require to continue to advise their clients in the best possible ways,” says Ramon Thomas, MD, Netucation. He is currently negotiating with AMASA and the AAA School of Advertising to offer this course on a half- day basis to their members and students. The course will run on 25 May and 22 June 2007 at the LMI Academy on Hendrik Verwoerd Drive, Randburg. The cost of the course is R1 500 per person.

Blogging for Business (full day): This course is designed for people who work in the media, marketing, PR and journalism. It’s also appropriate for those who need to communicate internally with staff and externally with clients and partners. It covers such topics as: what is blogging? and corporate blogging; marketing your blog; blog and PR 2.0. It will also equip candidates with skills in podcasting and videocasting. This course assumes that candidates possess a basic knowledge of email and search engines. The cost is R2 500 per person. It will be held on 24 May and 21 June 2007 at the LMI Academy on Hendrik Verwoerd Drive, Randburg.

Online Social Media and Marketing (OSMM): This course is designed for people who work in media, PR and journalism, who need to communicate internally with staff and externally with clients and partners. It covers topics that include: blogging, podcasting and videocasting, RSS, understanding online distribution and contextual advertising. The course assumes a basic knowledge of email and search engines. It will be held in Johannesburg on 14 June 2007 at The Business Place, as well as in Cape Town on 21 June 2007 at Bandwidth Barn. The cost is R1 500 per person.

Vega offers a Diploma in Communications Management that is ideal for undergraduates as well as for the newly qualified who wish to further upgrade their skills. Marketers can apply for a range of individual modules that include the principles of branding; business communications; media planning and applied branding. Vega also offers two-to-four week part-time courses in Digital Media, ranging from desktop publishing to video editing. For more information on these courses and diplomas, call the Vega School on (011) 883 0130 and chat to Tanya Taylor. You can also e-mail Tanya at [email protected] or Thembi Mogala at [email protected]. Workshops will also be conducted during the year, covering such topics as The A to Z of Branding; Building Brands Online: New and Consumer-Generated Media and The Brand & the Law. For more information contact Roshni Nana on (011) 883 0130 or e-mail Roshni at [email protected]. Visit www.vegaschool.com.

The Africa Academy for Communications: The AAC offers courses and workshops each month on topics that range from branding and client/agency relationships to workplace assertiveness. Workshops: • Maximising your radio Rand (Bob Mabena, executive manager PCS, SABC); 23 May 2007, at Blandford Manor. • Copyright issues: who owns your brand? (panel of law and publishing experts); 29 May 2007, at Hackle Brooke. • Advertising and retail today (Muzi Khuzwayo, MD, Hunt Lascaris); 21 June 2007, at Hackle Brooke. Visit www.acasa.co.za for more information on the AAC and what it offers. Alternatively contact Alexia Georgiou on (011) 781 2772 or e-mail her at [email protected].

The Friends of Design Academy of Digital Arts: Short and Modular Courses are offered on the following packages (essential and advanced skills): • Adobe Indesign®

• Adobe Dreamweaver®

• Adobe After Effects®

• Adobe Illustrator®

• Adobe Flash®

• Migration Macromedia

• Adobe Photoshop®

• Adobe Flash Actionscript®

• Freehand®

• Apple iWeb®

• Apple Final Cut Pro®

Courses in web publishing are also available. All courses are available in hourly training packages for individuals. Group training is also available. For more information, please contact the Academy on (021) 461 9071 or e-mail [email protected] or visit www.friendsofdesign.net.

Vol 25 No. 5/6 I 2007 I MarketingMix 2 3

Picture courtesy of EIMAGE

by fulvia becatti SPORTS MEDIA

Putting your brand in pole position Picture courtesy of EIMAGE

Sports media is a passion-filled environment. According to SuperSport’s marketing manager, Andre de Villiers, audience and subscriber numbers have grown, as have sponsorships and advertising. “The larger events are sold out,” he says, “because live coverage draws the biggest audiences.” The PVR has met the needs of sports fans in particular as it allows them to catch rugby matches live while others in the house catch their favourite soapies. The facility to record programmes means that no fan is ever torn between which two events to watch. Print media is faring well. According to

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Clint Roper, deputy editor, Soccer Laduma, the paper’s circulation has increased to 50 000 when compared to this time last year. It hopes to give the national weekend papers a run for their money by 2020. In addition to increased circulation, Soccer Laduma has seen an increase in advertising sales. “2010 is playing a massive role here. FIFA regulations make it difficult for advertisers to get into this arena and this paper provides them with a way into soccer, particularly the PSL,” says Roper. The newspaper is also increasingly aware of the impact of new media and is planning the development of a new website

ADVERTORIAL

“In a country characterised by diversity, sport has become a

Sport. It makes grown men and women cry and pulls strangers together in their shared devotion. It can build the pride of a nation. It’s a trillion dollar industry, and today’s sports stars are worshipped as heroines and warriors. It’s not surprising then that brands spend billions worldwide associating themselves with sports and sports stars, and that sports marketing has become an integral part of brand budget. But how do you ensure that you receive maximum return on your investment?

binding force which unites

Sports marketing company MSCSPORTS has the answer.

communities. MSCSPORTS is

MSCSPORTS is a company which Makes Sport Count by maximising their clients’ ROI through customised and value-driven opportunities that have specific objectives, high measurability, and that deliver significant brand exposure to relevant markets.

committed to ensuring that your brand is associated with the right sporting entity. We have proven ability to deliver the maximum return on investment with definitive measures thus ensuring that you Make Sport Count.” – Neil Jankelowitz

Joint MD of MSCSPORTS, Neil Jankelowitz, believes that sport is the way forward for every business. “We partner with you and help your brand to seize value-driven and unique marketing opportunities that will place your brand firmly in the hearts and minds of South Africans.” One of South Africa’s most recognisable brands, and an MSCSPORTS’ client, OUTsurance, entered the sports marketing arena some 12 months ago through inter-alia, the sponsorship of the Supersport Update channel, as well as title full sponsorship of the road running event, the OUTsurance Gun Run in Cape Town. Marketing Manager of OUtsurance, Peter Cronje, explains how sport has offered a unique value proposition to his company. “Sport has become an experience in which fans and spectators get caught up in a world of passion, excitement and fun. The exhilaration that a close match can create is a unique memorable experience with which the product will be associated. MSCSPORTS has ensured that OUTsurance is in touch with our customers in ways which enhance their experiences and which have worked wonders for our brand.”

ADVERTORIAL

Another client of MSCSPORTS, is RAM Hand-to-Hand Couriers. This courier company has managed to achieve the ultimate marketing mix, by ensuring the broadcast sponsorship of South African Test Cricket on Supersport, and then supporting this ‘above the line’ campaign, with ‘below the line’ events, such as the RAM Captains Breakfasts. This event was a series of national corporate Q & A sessions, with cricket captains Graeme Smith and Ricky Ponting, hosted by Neil Andrews.

“Recently we held an event around the donations made by Tedelex to the BIDVest WITS University Football Club, and they ran the event from beginning to end. They organised huge media presence, handled all the logistics, and ensured that they invited all the right people. MSCSPORTS is committed to the football club. It’s not strictly business – they’re passionate about the team, and want to see us succeed. They are a part of the fabric of the organisation. They’re effective, and operate with true expertise.” Another key area of business for MSCSPORTS is event management, which involves the conceptualising and co-ordination of sports related events that deliver maximum value for our clients. We offer services that range from the concept creation, to the management of budgets, venues, branding and PR, catering and guest lists, media coverage as well as guest speakers and celebrities.

Joint MD of RAM Hand-to-Hand Couriers, David Lazarus, explains how his return on investment is monitored. “Through MSCSPORTS, we appointed a leading sports marketing research company to monitor our investments. This, alongside the fact that MSCSPORTS constantly conducts their own research, has seen both MSCSPORTS and RAM Hand-to-Hand Couriers consistently delighted with the results, showing significant above the line exposure and enhanced brand equity in our field.” Jankelowitz believes that “hands-on” management is key. “We are well aware that we have a way to go to achieve our mission of becoming the ‘best sports marketing company in the world’. However we know what we have to do and we love doing it. It’s all about constant communication and involvement with your client.” MSCSPORTS has managed the BIDVest Group’s sports marketing portfolio for a number of years, which has included the sponsorship of the horseracing channel, Tellytrack. This sponsorship has seen BIDVest reach their higher LSM target markets, whilst investing in and supporting the sport of horseracing. In addition, MSCSPORTS manages the BIDVest Wits Football Club account, which includes event management, consultancy and public relations. Derek Blanckensee, CEO of BIDVest Wits University Football Club, explains how the PSL outfit works with MSCSPORTS.

In addition to the RAM Captains Breakfasts, MSCSPORTS has also conceptualised and managed the official PSL Awards After Parties with Castle Lager and SoccerLife, as well as the Official SAA Supa 8 After Party, and the Sowetan Extra Time soccer sessions in association with The Famous Grouse Malt Whisky. Another of MSCSPORTS’ core competencies is the production and selling of licensed signed sports memorabilia. Joint MD, Barney Girnun explains how the sports memorabilia department works. “We are the official licensee for Cricket SA and SA Rugby, and have established, sound and credible connections all around the world with regards to securing golf and other sport-related memorabilia items. All of our items come with certificates of authenticity guaranteeing that the autographs and items are the originals. To date we have raised over R10 million for various charities through the auctioning and selling of our prized pieces.” With the 2010 Soccer World Cup approaching, and a major sporting and business opportunity on the horizon, many corporates have begun to see the benefits of associating their brand with sport. Neil Jankelowitz concludes. “In a country characterised by diversity, sport has become a binding force which unites communities through patriotism. MSCSPORTS is committed to ensuring that your brand is associated with the right sporting entity. We have proven ability to deliver the maximum return on investment with definitive measures thus ensuring you Make Sport Count.” To contact MSCSPORTS, please call Caroline McKay 082 904 6848 or visit www.mscsports.co.za

Picture courtesy of EIMAGE

SPORTS MEDIA

2010 FIFA World Cup: Guide to FIFA’s official marks Official marks include: the logos, words, symbols, titles and other trademarks associated with the 2010 FIFA World Cup. FIFA owns the rights to the official marks, which are protected by trademark registration laws and/or copyright laws, as well as laws of intellectual property. FIFA has outlined the basic Do’s and Don’ts that govern the use of these official marks. These aim to prevent Unauthorised Association (i.e. the creation of an unauthorised commercial association). The use of official marks that create unauthorised association is prohibited in advertising, promotion, games and competitions or ticket promotions. They may also not be used: in editorial, commercial match schedules, company and website names; on merchandise and in-store decorations; in internet technology (ie websites, hyperlinks, online ads, blogs, MMS, SMS, WAP communications). For more information, contact the Local Organising Committee’s Emmy Casaletti. Contact (011) 567 2010; e-mail: [email protected]. Visit the FIFA website at www.FIFAdigitalarchive.com.

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which they hope to launch in conjunction with the new PSL season around the end of July. “It will be unlike anything else out there,” says Roper. While he cannot as yet divulge any details about the content of the website, he says that they are investigating what gets people excited, keeping in mind that Soccer Laduma has always been a ‘paper by the people, for the people.’ Similarly, the growth in the mobile sphere is something to be considered. “This is a massive area. Africa will certainly be communicating through the medium of the cellphone in future – more so than the Internet – and even entry level phones will enable access to the Internet,” says Roper. The Big Brother of the sporting world – sports sponsorship – offers obvious benefits for brands. These include: exposure and differentiation in an otherwise fragmented and cluttered media environment, positive brand associations with sports teams and sports stars, as well as merchandising opportunities that boost brand exposure and help to build brands. “South African culture is very powerfully sport-oriented and sponsorship ‘gives back to the population,’ which helps to increase brand affinity,” says Morne du Plessis, MD: Navitute, a SAIL Group company. He adds that sports sponsorships can create corporate hospitality and CSI opportunities that are good for business. “There is considerable pressure on SA brands to show their humanitarian side and big budgets are put aside for the creation of a caring perception,” says Dominique Smith, MD, Provantage. He believes that while sponsorships are not always engineered with the objective of driving sales, they are effective brand building tools that place brands top of mind. “The decision-making

SPORTS MEDIA

Global Brands Group SA Global Brands Group (GBG) has been appointed FIFA’s exclusive worldwide licensing representative, as well as store operator for FIFA branded retail operations. According to the FIFA press office and Mark Methany, CEO and co-chairman, Global Brands Group, GBG has also been granted the rights for the onsite concessionaire for all FIFA events. As such, they will sell merchandise at stadium venues during the 2010 FIFA World Cup South Africa. GBG will also negotiate with third parties who wish to get involved with merchandise sales. For more information regarding licensing matters (with particular reference to the official marks), contact Nicholas Bloom at GBG’s South Africa office. Email Nicholas on [email protected].

Picture courtesy of EIMAGE

process is helped by the sponsorship property,” he says. Sponsorship-related events and competitions allow brands to engage with fans in the live environment. Competitions, for example, can create aspirational opportunities that are not available to the average Joe (or even to the wealthy Joe). “Even if you have a lot of money, you still don’t have the means to meet Schumacher or the Manchester United football team. Sponsorships and competitions allow for the creation of these opportunities,” says Smith. According to the BMI Adult SportTrack™ reports, direct sponsorship spend grew from R63 million in 1985 to R2 613 million in 2006 (an annual compound rate of about 19.4 per cent). Including leverage spend, almost R5 billion was invested in local sponsorship in 2006. The report found that by comparison Adspend had increased at a rate of 16.1 per cent per annum. The end result was that while sport sponsorship was only 7.8 per cent the size of adspend in 1985, this had increased to nearly 14 per cent by 2006. “Figures indicate that worldwide sponsorship spend has increased by 81 per cent in the last decade. However this growth is slowing down, as witnessed by the reduction of year on year growth from 14 per cent in 1999 to seven per cent in 2000,” says du Plessis. In fact South Africa’s sponsorship growth outperforms that of other markets. According to BMI-Sport Info data, SA’s average 2005 on 2006 growth was placed at 18 per cent (the figures for North America and Europe were 10.5 per cent and 10.9 per cent respectively). While sponsorships appear to be increasing, a lot of money can be wasted due to a lack of strategic planning and thought. According to Smith, marketers frequently neglect sponsorships and waste sponsorship budgets through poor understanding and flawed processes. “Sports sponsorships fall short of the mark because companies spend big money to buy them but don’t have the budget or knowledge to leverage the investment, which consequently doesn’t reach its full potential. They buy a TV package to create awareness but emotively this does nothing for the brand,” he says. He adds that industry gurus recommend operating on a one-toratio (adspend to leveraging budget). “So if you spend R1 million on buying a sponsorship property, you should spend at least R1

Which sports are the most popular?

(BMI-Sport Info)

In terms of sponsorship support, the big five sports (which account for more than 65 per cent of the total sponsorship spend in SA) are: soccer, rugby, cricket, motor racing and golf. More than 50 per cent of the total hours of TV coverage is allotted to these sporting codes.

Big players: who are the major sport sponsors in SA? (BMI-Sport Info) According to BMI-Sport Info, around 50 per cent of the annual direct sponsorship spend is generated by the Telecoms, Banks, SA Breweries’ flagship brand Castle, South African Airways and Sasol. This applies to the three most popular sports codes (soccer, cricket and rugby).

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SPORTS MEDIA

Which are SA’s favourite sports? According to a Markinor TeleBus survey (a total of 1 500 respondents, representing the adult population with home telephones): 36 per cent enjoy watching soccer 19 per cent enjoy watching cricket 18 per cent enjoy watching rugby 4 per cent enjoy watching tennis 3 per cent enjoy watching motorsport 2 per cent enjoy watching athletics and wrestling respectively 1 per cent enjoys watching golf.

Soccer is most favoured by blacks, while whites prefer watching rugby. Indians favour cricket, while the coloured community enjoys all three major sports. The survey found that in general South Africans are optimistic about the country’s readiness for 2010, with 45 per cent of respondents believing that South Africa is prepared for the World Cup. It’s not surprising that whites are the least optimistic racial grouping, with less than a third of the group believing that SA is ready for the World Cup.

Soccerex 2007: Soccerex 2007 (hosted by the Gauteng Province) will take place from 26 to 28 November at the Sandton Convention Centre. This international forum brings together the world’s experts and is not to be missed. (This years’ speakers have not yet been confirmed but some of last year’s speakers include Joseph Blatter, FIFA president, David Gill from Manchester United FC, Andy Knee, Philips head of sponsorship and Eric Cantona, former Manchester United player.) For more information visit www.soccerex.com or email [email protected].

Picture courtesy of EIMAGE

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million on leveraging it,” he says. If not, it will in all likelihood not deliver the expected ROI and this further undermines the sponsorship. Neil Jankelowitz, MD, MSCSports, believes that: “The key to a successful sponsorship strategy is to set clear objectives prior to entering a sponsorship, with definitive measurables for post-campaign assessment. It is also key to try and own the property.” For Roper one of the major issues affecting sports is that naming rights are being sold indiscriminately. While selling the rights to stadium names is not problematic, the sale of team naming rights is destroying fan affinity for sports teams, especially because they change every few years when one sponsor’s contract is succeeded by the next. “You don’t see this happening overseas. For example, in the UK the club names are sacred and they don’t allow brands and sponsors to buy the team naming rights. They understand that fans identify with the club name. Local advertisers and marketers, as well as sporting teams and clubs, need to be mindful of their supporters in this regard,” says Roper. Du Plessis believes that the biggest misconception about sports media and sponsorship is that it’s isolated in the marketing mix, in spite of the fact that it can extend the impact of other elements (including advertising, sales promotion and PR) in an environment where consumers are more open and receptive. “In South Africa, sponsorship is often cut off from other communication elements, decreasing its effectiveness. Internationally, integration is the sponsorship buzz word,” he says. He quotes research by Redmandarin (a UK based sponsorship consultancy), which found that an overwhelming 83 per cent of respondents believed that greater levels of integration would enable sponsorship to meet their objectives, whereas only 56 per cent integrated sponsorship into PR, 52 per cent into advertising, 36 per cent into sales and 20 per cent into direct marketing. “Sponsorship without a plan is merely a logo on the field but through an integrated through-the-line approach, it has the ability to bring your brand into people’s lives,” says du Plessis. Jankelowitz echoes this sentiment, stating that too many marketers see sports sponsorship as a ‘fun thing to do’ rather than an intricate vehicle that can deliver significant ROI on all fronts. A further criticism of the industry is that

SPORTS MEDIA

Refreshing the Vision: key aspects of the 2006 Redmandarin Sponsor’s Survey (This survey, conducted during June and July 2006, measured the responses of sponsorship professionals and executives from companies in 18 countries situated around the world. Redmandarin is based in the UK. For more information and research reports, visit www.redmandarin.com) Findings: • 79 per cent of respondents claimed to have a sponsorship strategy and 59 per cent reported a global strategy. It is believed that 39 per cent of sponsorship strategies are signed on the whim or preference of the company chairman • 88 per cent of respondents reported setting sponsorship objectives prior to buying rights; seven per cent did not. Five per cent didn’t know whether objectives were set or not. Extrapolating from annual European sponsorship spending, Redmandarin suggests that almost R9,5 billion is annually allocated to sponsorships without a clear rationale • Over 80 per cent of respondents claimed that all areas – including the fit between the brand and the sponsorship property, competitor activity and the interests of the target audience – were researched prior to sponsorship rights acquisition (with the dominant forms of research being ‘existing research’ and ‘personal judgement’) • The respondent ratings for the most important objective for sponsorships: 81 per cent brand equity building; 74 per cent brand awareness; 54 per cent driving sales; 39 per cent stakeholder relationship management; 37 per cent motivating employees • 39 per cent of respondents reported that sponsorship plays a ‘very important’ role within the organisation’s overall marketing and communications plan • 56 per cent of respondents reported that sponsorship was ‘very integrated’ with PR, while 52 per cent also said this about advertising. 83 per cent of respondents believed that improved integration with other areas of marketing would improve the capacity of sponsorship to meet its objectives • 67 per cent of respondents had a budget for sponsorship evaluation. The most popular evaluation methods were internal company feedback, sales data and existing brand tracking • 61 per cent of respondents reported that they would definitely use, or consider using, ambush marketing. What can sponsorship do better than other marketing disciplines? Responses: create an emotional connection with consumers; generate rapid brand awareness in new markets; offer new communications or content opportunities

there is a lack of innovation, the result of a handful of key players monopolising the industry. “Mentions of sponsorship clutter have slowly begun to creep into the market as the industry becomes not only more commercially sophisticated but also more widely accepted,” says David Sidenberg, head of BMI’s Sponsorship Strategy & Rights Division. Differentiation will become increasingly challenging if this industry continues to grow. “The customer is becoming aware of and frustrated by commercial clutter, even in sports events. Sponsorships will need to become more intelligent and be targeted to specific markets and populations,” says du Plessis. This raises concerns about the satura-

tion of the sponsorship environment. The major sporting codes are over-traded, making it difficult for smaller brands to get involved. “Sponsorship is over-traded in SA and it is difficult to find a unique property and occupy centre stage with it. Brands must try to find an exclusive niche, which is aligned to the brand, rather than jumping into an over-traded space. Alternatively, they should create a new property,” says Smith. The Red Bull Downhill Extreme is one example of this. “They have created their own sponsorship property and no one will take them on in this space,” says Smith. Smaller niche sports (such as mountain biking), which have not been bought out by

Picture courtesy of EIMAGE

The most popular sponsor brands named include Red Bull, Heineken, Adidas, BMW, Nike and Vodafone.

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SPORTS MEDIA

Picture courtesy of EIMAGE Picture courtesy of EIMAGE

deep-pocketed sponsors, hold potential value for smaller brands. “These have particular value for challenger brands that are entering the market that need to create awareness quickly,” says Smith. New sporting codes (think basketball and martial arts) are seeing a growth in their local fan-base and they too hold potential. However, these sports need committed sponsors if they are to become self-sustaining and avoid the yo-yo effect that a series of short sponsorships will have. “When it comes to sponsorship property, brands must go into the deal with a view to being involved for three to five years,” says Smith. He adds that short term projects and sponsorship deals allow brands to “test the waters.”

Which is SA’s favourite rugby team? According to a recent survey conducted by BMI, the Blue Bulls take this title with a support base in excess of two million. The Blue Bulls now account for more than 20 per cent of the total rugby support base and have generated more exposure for sponsor Vodacom than any other team (thanks to their performance in the final stages of the Absa Currie Cup and the Vodacom Super 14). However BMI reports that rugby still has a long way to go to match the support of SA’s top soccer clubs. Both Kaizer Chiefs and Orlando Pirates boast fan bases that are two or three times larger than that of the Bulls. Furthermore these fan bases stretch countrywide, while the support bases for rugby are still concentrated around one or two regions (accounted for by the fact that the top two soccer teams account for 70 per cent of the total soccer support base, while the top two rugby teams account for only 40 per cent).

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Sadly, not all sporting codes are managed ethically and professionally and this is another aspect that marketers must keep in mind when they consider which sports to sponsor. Local rugby management, for example, is frequently in the news, battling issues around transformation, mismanagement and corruption, etc. South Africa’s growing township markets are also worth considering. “You have the obvious sports in these areas, such as football and you have the challenger sports, such as ballroom dancing, which is (surprisingly) hugely popular,” says Smith. Sponsorships have not always been easy to measure in terms of evaluation, although a growing industry emphasis on measurability and feedback is changing this. “Companies are now more committed than ever to dedicating significant funds to tracking studies, trend analysis, qualitative research and ROI analysis,” says Sidenberg. He says that it’s no longer enough to only consider exposure when selecting and evaluating sponsorships: measuring and quantifying the amount of media exposure generated is not ROI. He insists that while media tracking will always remain an important benchmark for the measurement of marketing spend, association levels and impact are gaining greater relevance. According to the BMI Top Companies Survey 2006, 93 per cent of respondents claim that a synergy between sponsorship objectives and overall brand communication objectives is important. “Integration and Reputation remain the most important challenge for the industry. In fact, this is becoming more and more critical than ever, given the speed of technology and the rapid convergence of media platforms,” says Sidenberg. With the rise in rights fees, only those brands that take a strategic approach to sponsorship, fully integrating brand and communication objectives with sponsorship objectives, will survive. Smith encourages marketers to develop campaigns that use mechanisms such as SMS, which allow for interaction with consumers as well as for measurable feedback. “Evaluation is a key element in managing and implementing a successful sports marketing campaign. Without it you might as well have purchased a vehicle without any tyres. As long as the evaluation methodology is consistent and in

SPORTS MEDIA

Motorsports: what’s SA’s favourite? According to the recent Do Motorsports rev up Brands global survey conducted by Synovate in early 2007, Formula One is the most popular sport wordwide (followed by 60 per cent of motor racing fans). The survey also found that

Picture courtesy of EIMAGE

more than a third of SA motorsport fans stated that they would be influenced by a manufacturer’s success on the racing circuit when buying a car or motorcycle. The vehicle manufacturers that are most associated with motorsports find Ferrari and BMW in the top positions globally. Ninety two per cent of fans cite TV as the preferred medium through which to follow motorsport (four per cent read the newspaper or magazines and three per cent go to the track).

line with market standards and norms, it is reliable and efficient,” says Jankelowitz. An evolving media environment (and the development of new media technology) has impacted positively on sports sponsorships. “A recent study from Starcom Mediavest showed that advertising awareness has dropped by 17 per cent in PVR households, whereas sponsorship awareness has only fallen by four per cent. The obvious benefit for sponsorship is that it reaches the consumer in the environment of their choice,” says du Plessis. This has made sponsorships the favourite promotion and marketing choice for many companies, even though they have had to adapt (as have traditional advertising media) to factors such as increased media fragmentation and clutter. “Sponsors have had to become more discerning by making use of new media and innovative channels to create ‘two-way communication’ with their customers,” says du Plessis. Sports media are also evolving with the times by developing online platforms – some of which are supplemented with video highlights and interviews, podcasts, etc – and mobizines. “The obvious benefit of these forms of media is that they allow the sports fan almost unlimited access to sports content and information worldwide. The use of digital platforms also enables sports content to be immediately available on demand,” says du Plessis. He insists that this is of particular significance amongst the younger generation of sports fans, who are more selective about the marketing messages and media that they choose to consume. “Companies that are able to make use of new media most effectively stand to benefit because they will be ‘chosen’ by the consumer,” says du Plessis. Touchline recently secured the rights to sell

Who’s leading the pack? Title:

Total circulation (ABC Oct-Dec 2006)

Soccer Laduma

303 461

Kick Off

55 462

Sports Illustrated

43 024

Tight Lines

36 278

Golf Digest

30 545

Amakhosi

30 494

Complete Golfer

26 233

Magnum

20 986

Runners World

18 033

SA Rugby

10 118

advertising on www.cricinfo.com (SA’s largest sporting website). “Cricinfo.com has one of the most sought after cricket statistics resources in the world. As such they are regularly credited on TV and radio,” explains Andrew Gillett, publisher, The Wisden Cricketer and Sports Illustrated SA. He anticipates that this platform will draw many high profile advertisers, given the affluent market that cricinfo.com attracts. “Rates are based on CPM with banners at R100, skyscrapers at R120 and a content box at R150. However, sponsorships for sections are available, as are opportunities to include The Wisden Cricketer magazine in a tailor-made package,” says Gillett. He adds that the high traffic generated by the Cricket World Cup (2.3 million page impressions and 111 000 unique users in March 2007) has allowed advertisers to enjoy great exposure. g

Vol 25 No. 5/6 I 2007 I MarketingMix 3 5

by fulvia becatti DIRECT TO HOME

Taking it home Direct to Home marketing is defined as the below the line, one-to-one communication that happens when an advertiser’s pamphlet/ sample/flyer/brochure reaches the consumer at his/her home. Is this just unsolicited junk mail? “It’s precision marketing and it has the ability to reach the right target market with little or no media wastage. It means that the right brands are delivered into the right hands,” says Melvin Chagonda, MD, Primedia @ Home. While marketers may have their doubts, Dalene Muller, sales manager, Newspaper Leaflet Distributors (NLD), insists that they fail to see the medium’s effectiveness. “It is the most effective medium for the lowest cost… and it is as reputable as any other medium.” Direct to Home is an easily personalised medium that has great reach. Distributors are able to reach millions of households across South Africa in a matter of hours or days. Marketers are able to target their audiences by distributing material directly to the regions

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they live in – something that can’t be done with old media. “The ROI is high because of Direct to Home’s affordability and the reduction in media wastage. In Australia door drops are the most frequently used medium and in the UK they are second only to TV,” says Chagonda. He adds that this industry is worth a cool R300 million locally. Caroline Nunes, managing member, Vibrant Direct, maintains that while it’s not always easy to measure ROI relative to adspend, a successful Direct to Home campaign can have a marked influence on in-store foot traffic and brand awareness – and even on store turnover. “Marketers need to realise that for a third of the price of a normal campaign they can reach a more selective market within a specific time period. They can also achieve better results,” she says. Muller argues that Direct to Home is as measurable as any other medium and that it will generate a response if the marketing offer is good enough. “The cost per point of other

DIRECT TO HOME

mediums is much higher. With Direct to Home you are able do much more with much less. A pamphlet can provide far more relevant information than a 30 second TV spot,” she says. From a creative point of view this is a flexible medium and with the new technological advances in digital variable printing there are plenty of options and opportunities for innovation. “If used correctly this service can be a very valuable source of information for consumers,” says Brian Mdluli, CEO, Direct Marketing Association (DMA). This is a medium that is not limited to any one geographical area or LSM market. As Muller points out, it’s the quality of the marketing offer concerned that creates its relevance. “For example most areas – both higher and lower LSMs – are all interested in being kept informed as to what is on offer locally,” adds Nunes. Perhaps Direct to Home’s most noteworthy ‘super power’ is its ability to reach into townships and rural areas, while also being able to reach the ‘boomed off’ suburbs of the upper LSMs. This medium therefore reaches those who have TVs, Internet and a PVR, whilst also reaching those who only have a radio and a battery powered hot-plate. “Whether it is used for emerging, established or potential markets,

it is capable of reaching farther and wider than any other medium,” says Nunes. This wasn’t always so. According to Chagonda, a few years ago the suburbs (upper LSM markets) were seeing a decrease in numbers attributed to the number of booms and access restrictions. He says: “This seems to have leveled off now as illegal restrictions are being removed by councils.” According to sources Media24 hopes to address the problem of restricted access to complex and cluster developments soon. Direct to Home is seeing growth right across the country. “This is mirrored by the growing need and demand for freesheets and by the number of new freesheets that are being launched,” says Muller. There is clearly both a need and a desire for the kind of information that is delivered by Direct to Home. Muller adds that the use of Direct to Home media is a great way to reach the emerging markets that are based in the townships, particularly if good reading material is involved. Increased literacy is reflected by the growth in print media and Direct to Home is booming in

these lower LSM markets. “The daily increase in the number of houses that are built in the townships means that there is a daily increase in the number of homes that are available for distribution,” says Chagonda. “This trend is expected to continue as the new housing department’s low cost initiative gains momentum and as RDP houses continue to be built.” The growth in the number of shopping malls and

DIRECT TO HOME

commercial nodes has already had a major impact on businesses in existing malls. The malls which have been servicing townships but which are not located near them are seeing the greatest impact. (For example South Gate mall, which used to service Soweto, is losing ground to the recently established Jabulani Mall in Soweto.) According to Chagonda the current township consumer question in this regard is: ‘Why should I incur transport costs, if I can buy the same product within walking distance?’ This perception should drive Direct to Home marketing on a national scale. The fact that the number of homeowners is increasing on a daily basis is providing a further boost for this industry. “These new home owners are hungry for beneficial and relevant information,” says Mdluli. Furthermore, Chagonda adds that the new housing development laws (which require all housing developers to allocate between 20 and 25 per cent of the area to low cost housing) will lead to greater accessibility.

What is the DMA doing for Direct to Home marketing? “We are in the process of finalising our code of conduct and have submitted our codes to the Department of Trade and Industry for their perusal and approval. Furthermore we have engaged players in the industry to come up with suggestions on how Direct to Home can become a source of information rather than just being unsolicited mail, which is what consumers perceive it to be. The DMA has also added a service that allows consumers to log onto our website and place their names on our ‘do not contact’ list. This is aimed at reducing the amount of unsolicited marketing material that is sent to the consumer,” says Mdluli. For more information and to view the DMA’s codes of conduct, visit the DMA website www.dmasa.org. On the flip side, questions are being raised about the future of direct marketing, considering the pending consumer protection legislation. As Chagonda puts it, this act will have a significant impact on clients as well as on Direct to Home agencies. “Whilst a lot of marketers are concerned about the pending legislation, I believe that we as marketers have an opportunity to become more consumercentric and to listen to what consumers are saying,” says Mdluli. He believes that the industry will have to revamp some of its operational models in order to remain relevant to the consumers they serve, especially because more and more home owners are becoming frustrated with information that does not add any value at all. Marketers need to find innovative ways to speak to target audiences. “I believe that we need a paradigm shift in terms of using

DIRECT TO HOME

personalised/addressed information to speak to the needs and wants of individuals, rather than just putting out information and hoping for the best. We must move away from being peddlers of unsolicited marketing and move towards being information brokers,” says Mdluli. It seems that industry regulation and industry standards are major issues. Chagonda believes that industry regulation needs to be tightened and polished. In his opinion unscrupulous players damage the credibility and perceived effectiveness of the medium. This is a sentiment that is echoed by many of the industry’s major players. “Everyone needs to operate to the same high standards of distribution. Those of us who are doing things correctly invest significantly in the process,” says Muller. “It’s not just about having an oakie in a bakkie delivering pamphlets. We must demonstrate that this is a reputable medium,” she says. It boils down to reputable distributors – who have access to reliable data that includes target audience demographics (population sizes, where they dwell, etc) – advising marketers on where and how to best distribute their items for maximum impact and minimum wastage.

They also audit all distribution processes and services and provide marketers with measurable results and feedback. As Direct to Home moves forward, Chagonda points to the UK market in which ‘brands in hands’ seems to be the trend. This is a more experiential and activation-based form of Direct to Home marketing, which involves sending out samples and brands to the right target groups. “It’s the only medium that utilises all of the five human senses,” he says. He refers to the following very successful Gillette Sensor campaign in Europe in which a leaflet was distributed informing households that plastic packets would be distributed over the following few days. People were asked to place their old shaving machines in the packets and to leave them outside on a specific day. Each bag was swapped for a new Gillette Sensor shaver and two blades. “Over 200 000 bags were exchanged – it was a huge success. The same programme has now been run in Holland, Spain and Belgium,” says Chagonda. This platform is ideal for our lower LSM markets where single servings and samples could go a long way to boosting brand awareness and sales. g

by nici stathacopoulos EXPERT OPINION

With CRM its Showtime! I recently returned from judging the Dubai Lynx Direct and Digital Awards – solely for the North African and Middle East region – and was very pleasantly surprised to find that there were some wonderful ideas that worked really well. We considered Axe deodorant to be the best of the simple banners in the online environment. It is well-known that in the UAE one cannot depict anything remotely sexual. The agency had created a banner using the word MALE and when the consumer moused over the can of Axe in the corner, it sprayed out FE and S on either side of the word, in this way creating FEMALES. Although I know that many of my esteemed creative colleagues worldwide would roll their eyes at this, I thought it was ingenious. A few select agencies (or their London based colleagues) in the UAE have the accounts for some of the most highly profiled property developers in the world. In order to secure a Sheikh’s attention – and an appointment to one of the multi-million dollar hotel developments – the company has the opportunity to present a once off ‘box’ that contains concise and accurate information that is presented in the most elaborate fashion. We judged eight such boxes – the first was Perspex, the second was wood and the third was an aluminum accordion style box. Each was complete with a heavy set, photographic depiction of the architecture, style and imagery that represented each developer’s vision. After we had seen the first three we decided that none of these boxes possessed any of the differentiating factors that we were looking for. In my opinion, while it is all very well throwing a great deal of money at a pack, the result sometimes still lacks innovation and creativity. Showtime is not only about the pretty pictures that are used in a mailing or on a microsite. It’s about creatively utilising your resources to ensure that consumers are truly delighted when they engage with your brand. They should do a dance around your pack, which should be personalised and surprisingly fresh in its approach. They should hunger for every word in your letter and act instantly. How do we get to this point? We need to be given the time, money and license to do it. Let’s begin with the budget. I recently rec-

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“

Think of the delight of the consumers who receive a letter that is absolutely personalised and that arrives on a stock which makes them feel instantly rewarded for their behaviour.

”

ommended to one of my clients that she should rather segment her database and mail her high value clients than try to reach the entire database with a letter and an envelope. (This is not rocket science – it’s just that I presented the idea to her in a creative way). She agreed wholeheartedly and we are now producing three tiers of communication pieces

that are appropriate to her three data sets. Even the lowest priced postcard needs to have a clever appearance to engage the consumer promptly. A marketer should always remember that today’s low value customer may turn out to be tomorrow’s high value customer. Let’s move on to the subject of the brief. I am in the process of training my account management staff not simply to take an order but to experience the client’s brand as best they can. We now require the team to write creatively about the brief and to impart emotional insights rather than pure facts, before it reaches our creative director. With regard to time: shamefully, we all find ourselves without enough time to complete a great creative idea (we’ve all ended up with only half a mailer or a microsite just to make a deadline). Sadly, our teams don’t have the luxury of sitting down with paper houses and suppliers of innovative elements. They don’t have sufficient time for the meeting and they have even less time available to print on velvet or to manufacture a special box. This said, it’s surprising how we can find both the time – and the suppliers – when we most need to. After years of being told that I could not possibly laser print on anything heavier than 160gsm bond – and certainly not on anything with a finish to it – we have recently found suppliers who are able to deliver exactly what we need. Think of the delight of the consumers who receive a letter that is absolutely personalised and that arrives on a stock which makes them feel instantly rewarded for their behaviour. Now lets get back to the entertainment experience. Imagine being the producers of the theatrical production, the Lion King. Every moment – from cast to consumer; from layout to advert – has to be a show. Now imagine being the marketing director of a great brand and proudly sitting back and signing off on a direct marketing piece that is in itself a show. g

Nici Stathacopoulos CEO, proximity#ttp (011) 447 7093 [email protected]

7 DAY [B]ITCH

Margot Bertelsmann, editor, Zoo Weekly/Weekliks 20 /04/07 Ah, Fridays! Here at ZOO HQ Fridays are post-deadline days. Everyone trundles in a bit later than usual and a bit more hung over than usual, before settling down to a calm day of magazine-making. Yesterday Steve Tanchel photographed Survivor-hottie Jacinda Louw for a ZOO cover. (M-Net has just announced that a new season of Survivor is starting soon, so it’s a perfect reason to remind our readers of Jacinda). Today art director Mike McLeod and I have the pleasure of looking at the pictures from the shoot and selecting the final versions to be used in the magazine. Next out is the upcoming cover – we’re featuring the 101 Hottest Models 2007. Who to put on it? Decisions… decisions... Ah – would you look at the time? 3.30pm already. Just in time to catch the Australia/New Zealand match on telly. It’s a hard job but somebody has to do it. Now we’re off to the local drinking hole Su Da Da (we’ve renamed it ZOO Da Da in honour of the amount of time we spend there) to bid a sad farewell to Ivor Price, assistant editor of ZOO Weekliks. He’s returning to the Cape to become a publisher – lucky man!

21/04/07 Urgh!

24/04/07 Deadline day number 2: Somehow between the madness I manage a moment to observe that our semi-fictional ZOO character, The Zoode, is gaining popularity and has a constant online presence at www.zoo.co.za. I spend 20 idle minutes on the site (watching hilarious Zoode videos and reading his blog), giggle and make everyone else in the office watch it too. Enough. On a weekly magazine there is no time to write more than this on deadline day.

25/04/07 22/04/07 Spent some time doing paperwork. It’s performance appraisal time at ZOO! It would be criminal to bore you with the details.

23/04/07 7.50am: Deadline day! Today and tomorrow we go to print, a day earlier than usual because… 10.21am: … of the public holiday this Friday. We’re… aah… 11.47am: … also welcoming a new assistant editor on ZOO Weekliks, Johan Vos, at the staff meeting today. 12.32pm: I’m still furiously signing off pages before rushing to an interview with KykNet’s Gons. Actually, it’s a double whammy of TV today. I’m also chatting to the guys from Glitterati tonight about ZOO’s World Bikini Model International 2007 competition. Entries close on 11 May so we are busy publicising the event to encourage models to enter. This means that I have to be on TV with two previous years’ winners – gorgeous bikini models both. Great. I, sadly, am styledeficient. This is less of a problem than it would be if I edited a women’s mag, of course. I must remember this next time someone asks me how it is that I, a woman, edit a men’s mag. Answer: “I’m too much of a naff dresser. I am only allowed in men’s mags!” I stopped smoking four kilograms – and four months – ago by using the Allan Carr easy way to stop smoking method. (Sure, it’s propaganda but it seems to have worked.) So ZOO style editor Chrisna Raft will have to work her magic on me. I don’t want to look too shabby next to the 21-year-olds! Luckily she’s on the ball and has already selected some outfits I might wear. Off to the dressing room!

Somehow we get up again on the next day, say goodbye to ZOO issue 27 (which we’ve nurtured over the past seven days) – and start filling those 200 empty pages all over again. 10am: Today starts with a lengthy production meeting and a lot of brainstorming. We settle on a cover girl and a feature idea. Since the Cricket World Cup semis are on there is much Aussie-bashing in the air – and Australians always like to brag about how dangerous and poisonous their wildlife is! Rubbish! In ZOO issue 28 we take a ZOOstyle look at the killer critters that populate Africa and why they’re much harder than anything the Aussies could come up with. 3pm: All work stops as the beer arrives at ZOO HQ and we all settle down to watch the South Africa-Australia CWC semi-final. 3.20pm: Ah. Yes. We may need to rethink that feature.

26/04/07 Shoot day at ZOO! Yay! We’re shooting four lovely models who appear in the Axe Mostesses advertising campaign – you know, those gorgeous, fantasy air hostesses who cater to the every need of the lucky, lucky passengers. You’ve probably seen the ad on TV. If not, go and look for it on YouTube. My favourite co-Bob Dylan fan, Nick Boulton, is the day’s snapper and much of it is spent inside an airplane at Lanseria airport. Our aim: to show our loyal readers the Axe Mostesses looking hotter than you’ve ever seen them before. That way, when they see the Mostesses at the FHM 100 Sexiest Women in the World 2007 party, they will be intrigued – and buy a ZOO the next day! I go home, delighted to be working with the coolest team this side of that new planet they just found. I have the best job in the world. And I know it. g

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by sean mccoy EXPERT OPINION

The seven year itch: Brands and relationships You’ve been together for a couple of years when you begin to sense that the thrill is waning. The spark seems to have gone and complacency is creeping in. Things seem to be the same all the time. Maybe you need something different or perhaps you just want something different. Despite the predictability of it all, the routine is comfortable in a benign sort of way and the reasons for making a change aren’t quite compelling enough. Or are they? Could this be the infamous ‘itch’? I’m speaking about the branding cycle here and its obvious similarities to the cycles of a human relationship. Sadly there simply isn’t a formula for guaranteed success. Both require sustained hard work, loads of intuition, attention to detail coupled with big picture thinking, constant shifts in approach to meet changing needs and demands at certain times… and luck. The branding itch is a reality. Whether it comes after seven years or 17 years there is no empirical evidence to suggest a definite timeframe. In fact in my experience, given our rapidly changing environment and the pace of technology and globalisation, it is increasingly evident that most brands need to revisit their expression to the market every three to five years at the very least. Thomas Friedman in his book The World is Flat highlights several drivers of change (most notably that of technology) and spells out the dramatic impact they have had on business and social change. Professors Jonas Riddersdale and Kjell Nordstrom of the Stockholm School of Economics describe the advent of ‘serducts’ and ‘provices’ in their book titled Funky Business. They dramatise the blurring of the boundaries between what constitutes a product and what constitutes a service – and how we as consumers and brand builders distinguish between them. For example in the South African banking arena, new entrants into the fray, changing market dynamics and the emergence of a growing middle class have presented very interesting challenges for the established players. These challenges have accelerated their need to evolve. The majority of banks have recently redefined and clarified their offerings to meet the needs of a changing market. For example, FNB modernised the brand’s visual language

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“

Branding is about relationships. If there’s an itch… scratch it. Like relationships, some brands simply need work more often than others.

”

by bringing in a fresher, simpler identity to complement the bank’s vision. Others such as Nedbank and Rand Merchant Bank have recently updated their corporate images, simplified their brand architecture or redefined their brand positioning in order to reconnect with their target markets. Go Banking (Pick ‘n Pay and Nedbank’s low-cost financial services arm) has just launched its own refreshed brand to broaden its appeal. The pace and process of change in a brand

cycle vary enormously. It’s all about resonating with the market. All great brands evolve. Some undergo radical change while others tweak quietly and more often. Coca-Cola, for example, updates its brand every 12-18 months. No one really notices any obvious changes and the updates are sufficiently frequent and subtle for the brand never to be perceived as dated or radically altered. While other brands such as Johnny Walker have opted for a periodic update of the brand’s graphic language and iconography, they have also managed to reinvent themselves by changing the brand activity. How did Hush Puppies resurrect themselves from the brink of extinction to become contemporary style icons? How did our grandfathers’ tipples of choice become the life and soul of the party? Jack Daniels and Jaegermeister are now the hottest drinks in the coolest places. It wasn’t so much about what these brands looked like, their success lay in what they did. The brand activation was spot-on. How do we know when a brand needs an update? Does it manifest as an urge or a need to change? I guess that if we had all the answers, all brands would be great – and golden wedding anniversaries would be run-ofthe-mill. Brands can defy the law of gravity. The solution lies in a combination of art and science. It’s important to have a clearly defined brand platform in order to have a reference point for ongoing health checks. This provides a foundation for directing all brand activity. Brand custodians constantly need to evaluate brand performance intuitively and by using measurable means such as research and brand valuations (and obviously performance). Successful brands are guided by visionary leaders who understand the market. They are able to anticipate changes in it and instinctively manage the ebb and flow of their brand’s connection to it. Branding is about relationships. If there’s an itch… scratch it. Like relationships, some brands simply need work more often than others. g

Sean McCoy managing director, HKLM (011) 461 6600 [email protected]

by fulvia becatti CONSENT MARKETING

On 27 February 2007, Marketing Mix in conjunction with the Direct Marketing Association (DMA) and Kodak, hosted the Consent Marketing Workshop and brought together thought leaders in the legal and direct marketing industry. The workshop was held to address the pending data protection legislation which will affect marketing (with particular reference to direct) and change the way that marketers target and communicate with customers. The legislation, which includes the National Credit Act, the Consumer Protection Bill and the Protection of Personal Information Bill, will require that consumers consent to the collection and use of their personal information. While it will offer the customer protection from unsolicited emails, phone calls and SMSes, in so doing it will create huge barriers for the direct marketer as well as for the many businesses that have relied on this form of communication with their customers. The National Credit Act, the Consumer Protection Bill and the Protection of Personal Information Bill fall under Section 14 of the Constitution. They stipulate that the individual has the right to privacy, which includes the right to refuse to accept (or to pre-emptively block) any electronic communication, especially when this communication is for the purpose of marketing goods and services.

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THE ACTS: The National Credit Act regulations will come into effect on 1 June 2007. It is known that the Act will promote a more accessible and responsible credit market and that it will address imbalances and over-indebtedness, while regulating credit bureau and providers. The Act defines personal information as that which belongs to an individual or that which is not generally known to others. Furthermore it states that when entering into consumer credit agreements, the consumer must be given the option to opt out of telemarketing, e-mail or SMS campaigns. The Consumer Protection Bill was drafted in March 2006 and is expected to become law before the end of this year. According to Brendan Hughes, an IT legal consultant at Michalsons ICT Attorneys, South African Courts have traditionally regarded confidential information as information which relates to a truly personal realm or information in which a person could be said to have a proprietary interest. However, the new Bill defines confidential information very broadly and gives all personal data confidential status. This includes names and contact information.

CONSENT MARKETING

Getting to grips with the legal terminology The Protection of Personal Information Bill (Michalson’s Attorneys): is expected to become law around midpersonal info or personal data: information relating to the name; 2008. The Bill consists of eight principles that have been adapted from EU legislation. address; identity number; race; gender; reproductive status; marital status; Inter alia, these include: national, ethnic or social origin; employment or criminal history; financial infor• processing limitations (consumers must mation; sexual orientation; age; physical or mental health; disability; religion, give consent; they must be approached directly and they must understand what conscience or belief; culture, language or identifying detail assigned to a person info is being collected and how it will be data subject: the person to whom the personal information relates used) consumer: a person to whom goods or services are advertised, offered, • purpose specifications (which state why the information is being collected) supplied, leased, sold or delivered in the course of business • dictates regarding the information quality data controller or responsible party: the person who determines the and the openness with which the commanner in which and purpose for which data shall be processed pany operates (companies should register with the Information Protection data processor: the person who processes personal information for the Commission and all processes should be data controller or responsible party transparent) • security safeguards that protect consupplier: a person who offers to supply or supplies any goods or services in sumer information (list owners must take the course of business all precautions to keep their customers’ processing: any operation or set of operations concerning personal personal info confidential) • guidelines for individual participation information which includes the collection, recording, organisation, storage, (which control how individual company updating or modification, retrieval, consultation, use, dissemination, employees access and correct consumers’ transmission, distribution, merging, linking, blocking, erasure or destruction of personal information) • accountability (deals with the penalties personal information. for those who do not follow policies). The Bill stipulates that the information must be collected directly from the consumer, unless it already exists in (measures for dealing with complaints) and penalties (for companies a public record. Companies purchasing database lists from a third party who do not comply with codes). The constitutional right of privacy is must ensure that consent is obtained for the use of the lists. Once brought into the spotlight, since consent is required in the form of an again, personal information must be kept confidential and may not be opt-in rather than an opt-out. used without the consent of the consumer, unless it is for the purpose The pending legislation is very positive for the consumer who does of performing legal or contractual obligations or used in a situation in not want to be harassed – but it presents some mighty challenges for which the information processing is necessary for upholding the legitimarketers. “They’re using a sledgehammer to kill a gnat,” says Andy mate interests of a party. (The latter is something of a legal loophole in Quinan, chairman of the DMA Legislation Subcommittee. He points to that companies can try to fight the legislation by arguing that their the concise Argentinian legislation as a more efficient example of electronic communications with consumers are legitimate.) consumer protection and privacy law. This Bill calls for the establishment of an Information Protection Analysts suggest that customer consent drives and a close examination Commission as well an Information Protection Officer to whom of company systems and strategies are a priority. It is also a good idea companies must report to justify their data. (This is then subject to the to adopt the industry code of conduct. As Christiane Duval, Legal and officer’s investigation). It also makes provision for enforcement Consumer Affairs director, DMA, points out, this legislation calls for a high degree of transparency and the exercising of great responsibility in the manner in which Where to from here? Duval recommends the companies gather and handle consumers’ personal following best practices: information. Companies must change their current • Entrenching a culture of self-regulation and certainty in the industry practices and revise or establish company policies. Staff training is also necessary. Duval believes that • Anticipating and enhancing current legislation the DMA (and industry) codes of conduct will need • Gaining government confidence to be supplemented by satellite codes that will • Developing a process of re-dress govern privacy guidelines, telemarketing, purpose, consent and opt-outs (which will become a new • Establishing an association with would give the industry credibility as business), as well as e-commerce and other such well as liaising with the authorities and guiding ethical practices. specific forms of marketing. g

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RESEARCH THOUGHT LEADERS

Experiential Marketing: A new word for some ways of doing things by Jan Hofmeyr Why has above-the-line’s share of marketing budgets fallen steadily in the past decade or so and how – if at all – is this connected to a predominance of what I call ‘mercenary managers’? Let’s try to answer these questions and in so doing say something sensible about the importance of experiential marketing. i). The emergence of the mercenary manager In years gone by one of the most difficult but successful ways in which you could become wealthy was to start and own a successful business. In recent years however, this has been replaced by an important and easier alternative. Get yourself hired to run a really big company; appoint a compensation committee composed of people like yourself and sit back and enjoy the bonuses that they vote to add to your package! This is the modern ‘mercenary manager.’ This person is not a business owner but a manager. Competition has forced businesses to become more efficient than they used to be. In a world in which the winner is the one who can drive out costs while improving revenue, the mercenary manager (usually an accountant) is king. Employees and shareholders have lost their power. Capital efficiency rules. What does all this have to do with marketing, you may ask? The problem is that marketers are struggling to prove that their use of capital is efficient – and market researchers are battling to provide measuring instruments that are able to substantiate this. What can we conclude, to the extent that we can conclude anything? ii). There is a problem with advertising… There is really no problem with advertising. Like all tools, advertising has a role to play in the creation of brand value. The question however, is how much brand value does advertising create? Marketing researchers provide two methods for answering this question. The first is to create what is known as a marketing

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response model. The second is to look at what are known as ‘split cable TV’ tests of advertising effectiveness. In the first method we take all the inputs that we can find that may play a role in a brand’s sales and we use statistical techniques to quantify the impact of each input. In the second method we split a scanner panel into two, pipe advertising to one half and not the other – and then look at what each half buys over the days that follow. Either way, in the end conventional advertising accounts for somewhere between seven per cent and 15 per cent of a brand’s sales. Up to 80 per cent is accounted for by other factors, the largest portion of which (40 per cent-50 per cent) is what the model makers call ‘brand equity.’

This being so, we need to ask ourselves what the most effective way is of building a strong historical heritage and reputation? The answer does not lie in advertising. Direct brand experience is by far the most important source of what people believe about brands. Word-of-mouth from credible sources (like industry experts or trusted friends) comes second and marketing communication (including advertising) limps in third… Quite simply, most of what impacts on how people feel about a brand either has to do with the direct experience of what the product folks have created – or with factors that are communicated about the brand

which are beyond the marketer’s control. iii). What is experiential marketing and why does it work… While there are multiple definitions of experiential marketing, the heart of all experiential marketing is the attempt to harness the power of the direct brand experience by exposing people to the brand in ways which are under the marketer’s control. Sampling is one of its simplest forms and ‘event marketing’ represents a more sophisticated option. Brand events give marketers a chance to manage exposure in a way which reinforces the intended brand imagery. Brand immersion – which is what a properly constructed brand event is – has far greater power than conventional communications when it comes to shaping brand beliefs. Over time the scope and sophistication of experiential marketing has increased significantly. The viral campaign that drew people into the world of The Blair Witch Project is a great example. When properly managed, experiential marketing delivers multiple benefits: • It pervades the experience of the actual brand consumption with a range of complementary experiences which touch all the senses • It creates ‘buzz’ because the people who participate willingly tell others about the experience they have had • It creates editorial – provided that it generates news interest. Experiential marketing is therefore the primary means by which marketers can leverage the two dominant ways in which people form brand beliefs, ie direct brand experience and credible word-of-mouth. Given this phenomenon we can expect spending to continue to be diverted from classical advertising to new marketing methods like experiential marketing. g

Jan Hofmeyr (Ph.D.) international director of Innovation for Synovate’s Brand and Communications Practice

RESEARCH THOUGHT LEADERS

People who ignite brands: understanding wildfire marketing by Neil Higgs The new marketing – using influence Marketers have one thing in common – they want their brands to grow as fast as possible. Recently there has been an explosion of new and innovative media types to exploit the new connectivity that exists between people because of SMS, e-mail and the Internet. This phenomenon is expanding beyond the personal electronic medium and a number of new terms have been coined: network marketing, viral marketing, brand ambassadors – all of which amount to various forms of ‘influence marketing.’ To date this arena has grown in a rather haphazard way. ‘Wildfire marketing’ brings these elements

together by embracing a wider concept that acknowledges that we are social beings who influence each other in a myriad of ways through the networks that we all have and by being the particular types of people that we are. It goes beyond the traditional wordof-mouth concept by specifically examining our levels of self-esteem, our roles in these networks and the recognition and respect that we receive in them. It considers the non-verbal cues that we transmit by looking at our overall state of mind and our optimism about the future. “The way we think about brands is old. Modern people have evolved beyond the passive consumerism of the mass media age to the active consumerism of the global information age. Young consumers are not defined by the mass media marketing of their

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parents – they are defined by their experience of complex networks, from their sophisticated mastery of modern technology to their heightened levels of awareness through global media. In this connected age, the small Internet website is as powerful as the massive global media company. Entire nations are swayed by small groups and new ideas spread around the world like wildfire.” – Studio Riley

Implications drawn from local research for brands and ads Seventeen per cent of the population (24 per cent in metropolitan areas) can be classified as ‘Igniters’ – people who can have a radical effect (either positive or negative) on a brand. This comes from the recent Wildfire Spectrum™ study (3 500 adults across South Africa) which explores what this means for brands and advertising. The study, conducted in conjunction with the Unilever Institute for Strategic Marketing at UCT, has led to an understanding of the importance of knowing how people at the top end of the Wildfire Spectrum (Igniters and Smoulderers, together termed ‘Hi Fire’ people) feel about a brand or an ad when compared with those lower down the spectrum (Damp squibs and Burntouts, together termed ‘Lo Fire’ people). The following example represents the findings of a Wildfire brand profiling exercise in which peoples’ warmth or coldness (feelings of distance or proximity) towards a brand were measured across the brand’s Wildfire Spectrum, using a special ten-point colour/warmth/proximity scale: For this brand 33 per cent happen to be Igniters; 63 per cent are Hi Fire and the rest are Lo Fire. The fact that the Igniters and Hi Fire people are much more negative about the brand than the Lo Fire people, means

that the brand is potentially on its way down. A solution that catches the imagination of the Hi Fire segments is the only way to save this brand. In an ad evaluation people’s attitude to the brand needs to be measured pre and post exposure to the ad: This shows a highly significant improvement in disposition to the brand post exposure to the ad amongst those at the top end of the Wildfire Spectrum – the chances of the brand being positively ‘sold’ by influential people has risen considerably. It is not important what they feel about the actual ad: all that really matters is how it affects the range of their feelings towards the brand. The more igniters there are for brands that are visibly consumed, the better. This is a sign of future brand growth. For brands that are less visible, having more Igniters is good if the brand has ‘buzz.’ Similarly having more people in the Damp Squib or Burnt Out categories is a sign of a brand’s likely demise. Fortunately those we classify as ‘Burnt out’ have small networks and are not very visible. Damp Squibs can be bad news as they may still have fairly active networks and as they generally have a subduing and negative influence in them.

An insight from the world of neuroscience People at different points along the Wildfire Spectrum process marketing messages differently. Hi Fire people are more efficiently approached by an ad style that allows for quick absorption and that simply reminds them of their brand – iconographic, visceral, emotive and instinctive. They make buying decisions more instinctively and unconsciously. Lo Fire people need more rational reassurance and an ad style that reduces the agony of those decisions that have a greater cognitive component. g

Neil Higgs director: Innovation and Development, TNS Research Surveys

RESEARCH THOUGHT LEADERS

The Changing Face o f Marketing and Communication by Hendrik van Vuuren Life in marketing used to be much simpler and more straightforward than it is today. In the past, marketers segmented consumers based on their demographic information. Most consumers had traditional roles and responsibilities and the buying power and decision making processes were clear for most categories. However, today’s consumer comes in multiple guises and is much more complex. Marketers have been forced to respond to the growing sophistication of consumers and marketing paradigms that were developed in the 1950s when products were sold by focusing on their quality and functional benefits and through mass production. By the 70s this process had evolved beyond pushing brands based on their functional and emotional platforms – and by the late 90s it had reached a stage where marketing had become contingent on building strong consumer relationships. The modern day marketer is faced with a

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consumer who wants personalised brand solutions as well as functional and emotional brand superiority. This opens the door for personal and participatory marketing activities that have the ability to offer integrated customer experiences across all points of contact. In recent years the evolution of consumer marketing customisation has been coupled with the ever-increasing pace of consumer technology development. The basic mass media channels of the early 50s have developed into highly individualised and customised channels such as third screen technology (cellular, PSP, iPod and other personalised communication channels). The proliferation of media has accelerated at an exponential rate over the past 20 years. When The Boston News-Letter published the first newspaper advertisement in America in 1704, they could hardly have foreseen that 300 years later there would be more than 40 different channels for marketers to use for the communication of their messages to

RESEARCH THOUGHT LEADERS

consumers. Along with the increase in channels, the number of commercial messages that consumers are exposed to on an average day have increased from around 130 in 1975 to more than 1 300. In order to appreciate how the media landscape is changing, it is important to understand consumer interaction and the role of each communication channel within the greater media context and marketing environment. Certain media serve as background, eg outdoor, sponsorship and radio. Radio is frequently ambient sound in the environment, present at times when other tasks are primary – reading, working and of course driving. According to Veronis Suhler (a specialist international media merchant bank) radio has shown steady increases since 1998 and is the most widely consumed medium internationally. This trend is mirrored in the South African market, with radio listenership (past 7 days) sitting at 92.7% (AMPS 2006 RA). Although the big commercial stations are showing a consistent decline, there is a strong growth in community station listenership. Radio still remains the key communication channel for much of the rural South African population. For the most part TV has a relatively low focus and viewers tend to sit back and have it ‘come at them.’ This is beginning to change, particularly with the advent of interactive TV and the use of PVR’s, remotes and other control mechanisms. Web streaming, branded content and placements within TV shows tend to follow the same pattern. Internationally there are significant declines in terrestrial television viewing. This growth of cable/satellite viewing – which exceeded terrestrial penetration in 2003 – has resulted in significant increases. Global data clearly shows that in 1984 an average 12 spots were required to achieve 100 GRP’s/AR’s. Currently the number of spots required to achieve the same reach is closer to 67. In South Africa, research conducted by Charles Foster (managing director, Millward Brown South Africa) has highlighted that the number of new (non retail) TV commercials launched per year has increased five fold, from around 500 in 1984 to more than 2 500 in 2006. However, the average peak noting and impact of these commercials have decreased substantially. In addition, the amount of exposure required to reach peak noting has increased significantly. This effect has been considerably more

dramatic in the higher income segments of the market, where satellite television penetration is at its highest. Coupled with the increased controls that ICASA have placed on television advertising availability, this has lead to an escalation of spot prices across all channels as well as high levels of television media inflation. Magazines and newspapers tend to offer greater readership engagement because of the way that readers actively consume them. They also have an entertainment and diversion component, which tends to soften their focus. Internationally, magazine and newspaper consumption is stable, a trend that is

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a significant increase in the number of titles available (from 63 in 1998 to 106 at the end of 2006 – AMPS 2006 RA). The strength of magazines remains their ability to convey highly targeted messages in an intimate and trustworthy manner. In-Store signage is able to fulfill the informational role when the shopper is actively seeking something. It has become one of the primary focus areas for communication. At a global level the activation marketing spend of many clients surpasses their demand building advertising spend. According to Veronis Suhler, the Internet is

We need to be constantly aware of how to reach consumers with marketing messages – and of how this information needs to change based on its interaction with different channels

reflected in South African newspaper readership data. There are marginal declines evident in the South African market across almost all LSMs for magazines, although there has been

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the fastest growing communication medium in the world. In the United States it has become the greatest contributor to advertising and brand awareness and online advertising spend is estimated to reach (US$)1.5 billion by 2010 (eMarketer report). Internet penetration is growing rapidly in South Africa, although it is still relatively small at 6.4% (AMPS 2006 RA). It is limited to the higher income segments of the market, where it is as high as 65% (AMPS 2006 RA). While still a niche market, it offers the opportunity to communicate specifically targeted messages to certain segments of the population. In conclusion, it is clear that the world of traditional marketing and communication is changing rapidly. South Africa is not isolated from these changes. We need to be constantly aware of how to reach consumers with marketing messages – and of how this information needs to change based on its interaction with different channels. Furthermore, due to the growing aversion to advertising, the increasing importance of channels such as word of mouth and consumer blogs is opening up an entirely new world of experiential marketing possibilities for the successful marketers of the future. g

Hendrik van Vuuren research director: Millward Brown SA

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RESEARCH THOUGHT LEADERS

Rear view mirrows and front windscreens (or why loyalty is a great thing to measure) by Heidi Brauer Driving a car requires multiple simultaneous activities that are non-negotiable. Whilst shifting gears, changing lanes, choosing a CD to listen to, separating fighting children and taking calls on the cellphone, there are really two key things that need to be done constantly and at the same time as the other stuff. We have to look through the front windscreen and regularly look into the rear view mirror. In order to obtain a complete set of integrated data that enables us to drive the vehicle effectively and safely and to navigate the roads and hazards, we need to know both where we’re going and where we’ve been. It’s no different in business. Navigating the strategic and operational elements of the business environment without a holistic and integrated set of measures is impossible. So why try to do it? Some businesses have no measures at all and many are only working with fragmented and retrospective information. The trick is always to think FTCPOV (from the customer’s point of view). Customers experience an organisation in a holistic and integrated fashion – and this is exactly how we should measure our relationships with them. While there are companies that believe deeply in only using gut feel, in organisations where research is used – whether it happens to be DIY or whether it takes place with a research partner – a whole menu of things may be measured. So how does one describe a ‘rear-view’ measure or a ‘front windscreen’ measure? Most often, someone will measure something to do with satisfaction, the strategy person will measure pricing, the brand person will measure brand health/strength/affinity and perhaps advertising recall/affinity/effectiveness, the customer service person will measure complaints, the sales person will track retention/churn and sales figures and so it goes. These are ‘rear view measures’ which are good things to keep a track of – just not in the way that it’s typically done. The fact is that customers experience

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things in a whole and connected fashion, even if they are not aware of it. I judge the till staff at Woolies by using one set of expectations; I judge the till staff at Shoprite by using another. These expectations consist of things that are related to brand, quality, value, price and image and I ‘smush’ them all together (un- or sub-consciously) as I rate them. When I evaluate the experience at the till (satisfaction if you like) I do it in the context of what I expect from the brand experience. My evaluation is influenced by the advertising, the price I pay, the brand promise and the overall quality that I expect in terms of each of these things. So the fact that these are all actually ‘rear view measures’ aside, it’s

really best not to create artificial scenarios for a customer to assess in a vacuum – this is not real life. Assuming that we measure these things in a whole and connected way, all that we end up with is a view of how it was in the past. Did the customers stay? Did they leave? Did they like the experience? Did they like the price? Did they like the advertising? You get my drift. Now try and drive your car while only looking into the rear view mirror. It’s impossible. So now let’s get to the ‘front-windscreen’ measures. This is where loyalty comes into play. For a start we need to get into the same headspace about what loyalty is – and it’s easier first to deal with what it isn’t. The science teaches that it isn’t about ‘buy a dog’ (blind following and acceptance); it isn’t about staying forever (‘Gee, he’s loyal, he’s been here since 1963’) and it isn’t about

having another loyalty card in my wallet (a la airlines, financial services companies, the place where I buy my toiletries and the sushi restaurant chain). Although loyalty programmes may be a precursor to the thing called loyalty, they don’t take it’s place. Real loyalty requires me to connect with two things as a customer – the attitudinal and the behavioural (the future behavioural stuff). So if I feel committed (attitudinal stuff) – and I intend to continue this relationship, at least in the short term – I am a truly loyal customer. Actually, I’m not too fussed about what we call it – my concern is that we stay true to the science. We need the predictor or future view of how a customer intends to act, to add to the historical view of his or her experiences. We then have true loyalty or deep engagement – call it what you will. The experiential or satisfaction stuff, the brand stuff, the pricing stuff and so on, are all influencers of or precursors to the loyalty construct. What are the consequences or results of having truly loyal customers? (Here’s why this is crucial for marketers.) The consequences are the essential business enhancing behaviours that we all want from our customers – they’ll stay longer, buy more, recommend us (the latest global hot thing to track and manage), resist offers from competitors and limit their search for alternatives. The science has proved that a set of good experiences alone do not predict these future desirable behaviours. Yes, we do have to look at the churn/retention, sales and figures, as well as measure brand and experience and such – and ask the customers about their intended behaviour – all at the same time. We then have a complete set of integrated data, from both the front and rear views, with which to navigate the business. It is doable. You do it every day in your car! g

Heidi Brauer marketing director, Markinor

by yoav tchelet EXPERT OPINION

Online – what is that...? I get the same argument day in and day out from agencies and clients: ‘Online doesn’t work’ or ‘online is boring’ or another favourite of mine, ‘I have a website; what more is there?’ I have a short answer for all you sceptics and doubters out there: “Online works and is crucial for marketing success.” The web has come a long way since the early beginnings of Internet marketing and the use of banner advertisements and archaic search marketing. There are a number of options available, including rich media and advergames, Pay Per Click (PPC), Search Engine Optimisation (SEO) and many more. I always try to emphasise that Internet marketing is the sum of the correct integration of any offline marketing activities and/or strategies plus the planning and strategic execution of all available online marketing channels. So you’ve just spent thousands on a new website – what now? Perhaps you’re still spending your current marketing budget on TV, radio, print etc? Without combining online with your offline marketing mix, you will always be one step behind. Internet marketing is the most measurable of all marketing mediums. It allows for targeting accuracy that is way ahead of any offline medium and it can be as engaging or as interactive as you wish. It all depends on what you would like to achieve. You also need to plan in order for this to happen. The online media plan is the foundation on which any planning and creative conceptualisation must be built and any campaign requires that you consider the target market and the message and results you’re looking to attain. Certain channels such as SEO take longer to implement and have to have a longterm focus in order to achieve results. Rich media campaigns, where technology such as Flash, video and other interactive elements are used, are generally used for shorter campaigns that require more of an impact. There will be a use for banner ads for some time to come, as long as they are part of a well-planned and integrated online marketing campaign in which a combination of channels such as search marketing, blogs and rich media are used. There is a false notion that there are not enough publishers in South Africa across

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Make sure that you are not wasting your media – something we still see with South African publishers who use pop-ups. Please do not squander your advertisers time and money – pop-ups are tantamount to spam.

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which to spread campaigns. Even if this were true, by using Geo-Targeting technology you are able to ensure that your advertisements are shown only to users from South Africa – or any other country, region or even city of

your choice. Creative campaigns can also be targeted according to time of day, operating system etc. Channels such as blogs, podcasts, RSS etc, are often used to backup online marketing activities, depending on the media plan and strategy. A question also arises regarding Flash versus gif/jpeg etc. There is no reason not to use Flash for any creative execution on the web. If you work with a company that has a decent ad-serving and online marketing platform, you can set up a campaign to show Flash by default. However in the event that the user is not able to use Flash, a gif/jpeg or other format can automatically be shown. Other exciting online marketing channels such as Advergames (essentially an interactive game integrated with an advertiser’s branding and message) and interactive video are priceless vehicles for brand equity. With an Advergame your target market interacts with your brand. This is something that you can measure. It involves a recurring motion of playing and interacting – great for your return on investment. This brings us to the matter of measurability. Creative that uses a technology such as Flash allows for tracking beyond impressions and click-throughs. You can track interactions in the creative with razor sharp precision. What other medium affords you the opportunity to do this in real-time? There are no rules or predefined formats for online media plans. I like to think of all online media plans as a finely tuned set of mini-plans that utilise comprehensive research, technology and online marketing experience. Make sure that you are not wasting your media – something we still see with South African publishers who use pop-ups. Please do not squander your advertisers’ time and money – pop-ups are tantamount to spam. There are many opportunities for marketing in the online world. Provided that you understand what you want to achieve, plan correctly and take the time to explore the existing opportunities, you will see results. g

[email protected] director, iLogic Tel: +2711832 2800 [email protected]

MarketingMix

C RM

Masterclass ‘07

5th June 08h00 – 12h30 Southern Sun, Grayston Johannesburg

Learning about the best experiences from the best people and all very relevant to SA. Most importantly you will be able to ask your questions in one-to-one sessions with some of South Africa’s most successful CRM practitioners, just look at the names below. Morning workshop organised by Marketing Mix in association with the DMA and lead by Nici Stathacopoulos, a very eminent CRMer indeed.

Programme: Topic

Speaker

Title

CRM Trends Worldwide

Nici Stathacopoulos

CEO, Proximity#ttp

Technology, Enabling CRM Solutions

Yaron Assabi

CEO, Digital Solutions Group

Changing Customer Behaviour Tsogo Sun Gaming

Noleen Bruton

Marketing Director,

How Custom Publishing Builds Loyalty

Bridget McCarney

CEO, New Media Publishing

Integrating Data Effectively

Liz Venter

Marketing Manager, Ford Motor Company

Use of Effective Contact Centres

Craig Ireland

CEO, Velocity

B2B Direct Marketing

Thierry Boulanger

Marketing Manager, HP SA

CRM Research

Heidi Bauer

Director, Markinor

It will be a busy morning. You will learn a lot and also will get good answers to your questions. The charge is R1 500 plus VAT and 3 or more delegates reduces the charge to R1 250 plus VAT per delegate. To register e-mail [email protected] or call Robyn on 011 234 7008 See you there, Terry Murphy Publisher Marketing Mix

by frank joffe LAW MIX

Registering designs Assessment of novelty:

Clarity on certain critical areas of the Designs Act has finally been achieved, thanks to a recent – as yet unreported – judgment of the Supreme Court of Appeal. In addition to establishing important design-related principles, the judgment in Clipsal Australia (Pty) Limited v Trust Electrical Wholesalers [2007] SCA 24 (RSA) is the first Appeal Court judgement to deal with registered designs under the present Act. The issues in question include the following:

The court confirmed that in line with the established principles for patenting inventions, it is not permissible to mosaic different pieces of the prior art in attacking the novelty of a registered design. Generally speaking, the prior art consists of all matter that is in the public domain at the date of application for the relevant design. Furthermore, the assessment of novelty must be assessed against the background of relevant prior art, ie the definitive statement and drawings have to be assessed in the light of the state of the art to determine the degree of novelty achieved. This is so because where the measure of the novelty of a design is small, the ambit of the monopoly is small.

Sets of articles: The Act permits the filing of a design application for a ‘set of articles,’ defined as a number of articles of the same general character, which are ordinarily on sale together or intended to be used together and to all of which substantially the same design is applied. The court held that the object of the provision is to enable an applicant to obtain registration for the design of more than one article for the price of one. The Act stipulates that what constitutes a set will be determined by the Registrar of Designs. The court held that if the Registrar had registered articles as a set when in truth they did not form a set, it was at best a matter for review and could not be raised as a defence for infringement or serve as a ground for revocation. The judgment further establishes that the registration of a set of articles as such cannot be used in interpreting the scope of registration. Each member of a set has its own individuality and must be assessed on its own. In short, the registration of a design applied to a set of articles provides a costeffective way of registering a number of related designs and the issue of whether such articles do in fact comprise a set is one for the Registrar to decide. In the absence of an application for a review of the Registrar’s decision, the registration of a set of articles may not be used as a ground for the invalidity or revocation of a registered design.

Originality:

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Whole or part: The judgment confirms that an applicant for a design may elect to isolate an aspect of his

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The registration of a design applied to a set of articles provides a cost-effective way of registering a number of related designs and the issue of whether such articles do in fact comprise a set is one for the Registrar to decide.

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design with the object of claiming novelty or originality of a particular feature. This is achieved via the filing of a definitive statement as part of the application. Should such a statement not be filed, the whole of the design will be considered, not only for the purposes of novelty and originality but also for infringement.

The court found that the present Act differs structurally from its antecedents to the extent that it requires that a design has to be both new and original. While the Act requires that novelty be tested against the prior art, there is no measure against which originality has to be tested. The court held that the meaning of the term ‘original’ when applied to aesthetic designs, is the same as or akin to the meaning of the term in copyright law, ie that the design should not have been copied from another source.

Infringement: The court held that a test for infringement was not a trademark infringement test and that the issue was not whether or not there was confusion or deception. Thus it would be wrong to introduce concepts developed in a trademark context, such as imperfect recollection. Rather, a designs test is closer to the patent infringement test and relies on the good sense of the tribunal to decide if the substance of the invention or design has been pirated. g

Frank Joffe managing director, Intellectual Property Bowman Gilfillan (011) 669 9000 [email protected]