Marketing Mix Magazine Sept Oct 2008

MarketingMix M E A S U R A B L E

M A R K E T I N G

I N S I G H T S

I Vol 26 Issue No. 9/10 I 2008 I R25.00 incl. vat

MarketingMix

CONTENTS

I 02 I Book Review

I 25 I Expert Opinion: Nici Stathacopoulos

Marketing Mix reviews Value Through Values, by Jerry Schuitema, and discovers how working from the heart can take marketing to the next level.

Nici explains why the consumer should be the centre of your business universe.

I 04 I Direct Marketing News

I 26 I Content Champions 2008

Marketing Mix reports back from the CRM Masterclass.

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I 06 I Expert Opinion: Keith Wiser

I 32 I Expert Opinion: Jonathan Gluckman

Keith tries to unpick the definition of direct marketing.

Jonathan talks about online retailing.

I 07 I Expert Opinion: Richard Duncan Richard shares his thoughts on the impact of brain drain.

Marketing Mix’s media expert contributors round up the content champions.

I 35 I Township Marketing Key learnings and tips from the Marketing Mix Township Marketing event.

06 21

Ronen Aires takes us through his busy week, and an aural cleansing.

I 37 I The Chartered Marketer and the Services SETA

I 10 I Brand Anatomy

The Services SETA has revived the Chartered Marketer Designation.

I 08 I 7 Day [B]itch

All Gold celebrates 100 years.

I 12 I Youth Insights

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Find out more about the elusive youth markets, and how you should be marketing to them.

Gary explains how retailing in the townships should work.

I 41 I Expert Opinion: Janine Lloyds

I 16 I New Research Methodologies

Janine stresses the importance of a good reputation.

Marketing Mix finds out what new and exciting methodologies and themes are shaking up the research industry.

32 I 21 I Expert Opinion: Gaby De Abreu Gaby explains how to advertise to teens.

I 44 I Expert Opinion: Nicci Columbine

In the first of a series of columns from Hello Computer, Benon explains why conceptualisation should be the first step in building a brand online.

Nicci shares her views on contact centre based campaigns.

43 I 23 I Expert Opinion: Jonty Fisher

I 24 I Expert Opinion: Walter Pike Walter ponders the power of social media.

I 42 I Experiential Marketing Highlights from the EXP African Experiential Summit.

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I 22 I Expert Opinion: Benon Czornij

Jonty shares some tips that help brands connect with the ‘prosumer’.

I 40 I Expert Opinion: Gary Nelson

I 46 I Marketing At-Retail ZaPOP’s MD, Riaan Labuschagne, shares his learnings on the lower LSM retail marketing scene.

12 I 48 I Law Mix: Darren Willians and Eric Levenstein Darren and Eric explore intellectual property rights and the 2010 FIFA World Cup.

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by chris kyparissis BOOK REVIEW

Value through values Last month I attended drupa, the world’s largest printing exhibition in Dusseldorf, Germany. During an interview with a trade publication I was asked which trend had made the greatest impact on me. It is the way in which all major stakeholders in the industry have begun to take environmental issues to heart, from sustainable forests by the paper producers to alcohol-free and carbon-emission-reduced printing machines. With this in mind, the title of Jerry Schuitema’s new book conjured images of carbon footprints

and melting glaciers much like Al Gore’s An Inconvenient Truth or Matt Groening’s spoof in the recent Simpsons movie, An Irritating Truth. It turns out we really shouldn’t judge a book by its cover or even by its title. In this case, the book should be judged by its subtitle The power of giving in creating wealth. Using his vast experience in the front line of economic communications and business consulting as well as the University of Life, Schuitema attempts to awaken the giver that is within all of us. The central theme of giving more than taking

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is evident throughout all the chapters and discussions from taxes to wealth distribution. It contains many interesting economic facts and figures that anybody involved in business, from the student to the seen-it-all executive, will find useful. The best description of the book, however, is given by none other than the author when he says, ‘Again, let me remind you that this entire book is from the heart and an appeal to your heart. What is truly in your heart is what will make the best mission statement for your company and your personal life. The keys to success that apply to individuals and to countries also apply to companies. The overriding principle is that if people are taking more than they are giving they will create deficits and poverty. If they are giving more than they are taking they will create surpluses and prosperity. Having an external focus and developing people is as important to a company as it is to a country. Indeed it could not happen at a country level if it didn’t happen at the level of a company which is, after all, a cell of national economic activity.’ So who should read this book? Everybody! Unless, of course, you truly believe that you or the company you work for or the country you live in is filled to the brim with high-value individuals who have truly embraced the power of giving... And why should marketers in particular read this book? Because we are expected to do everything for everybody from learning to speak in terms such as ‘ROI’ when negotiating next year’s marketing budget with the CFO to writing the ‘damage control’ press release when a product line lets us down. We are expected to know all and do all in our companies so why not get some help in choosing the high road when new low roads are appearing on a daily basis. If this book provides a fellow marketer with a few more ideas, paths or destiny-embracing epiphanies then it was well worth the read. 

Value Through Values By Jerry Schuitema Griffel Media R157 (approximately)

ED’S NOTE

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PROPRIETOR AND PUBLISHER: Systems Publishers (Pty) Ltd. Tel: (011) 234 7008 North Block, Bradenham Hall, Mellis Road, Rivonia, Johannesburg PUBLISHER: Terry Murphy MANAGING EDITOR: Michelle Sturman e-mail: [email protected] EDITOR: Fulvia Becatti e-mail: [email protected] ADVERTISING MANAGER: Lethabo Tloubatla e-mail: [email protected] PRODUCTION: Spencer van Graan e-mail: [email protected] EVENT ENQUIRIES: Daisy Mulenga e-mail: [email protected] SUBSCRIPTION ENQUIRIES: Busisiwe Nama e-mail: [email protected]

www.marketingmix.co.za

I recently received an e-mail from a colleague on the topic of customer service. Basically, the e-mail told the tale of Wally, the New York cab driver who decided to stop complaining about his situation (highly competitive working environment, stressful conditions, etc) and start differentiating his business. Wally greets each fare professionally and hands over his mission statement presented on a laminated card which reads: ‘To get my customers to their destination in the quickest, safest and cheapest way possible in a friendly environment’. Wally’s car is spotlessly clean and he offers his fares coffee or soft drinks as well as a choice of reading material. He also offers a choice of radio station listening, and adjusts the air conditioning to the comfort of the passenger. He advises the best route to the destination and will also chat about the sights that will be passed on the journey. Wally’s approach to service has doubled his income and regular customers have started calling Wally directly when they need a cab. I wish we could see more of this sort of emphasis on quality service locally (though I don’t expect this to come from our taxi drivers). But as long as companies pretend that service is something they only need to provide when customers are happy with them, we won’t get anywhere near the level of excellence that Wally has achieved. After a reckless truck driver had bashed in the rear left lights of my friend’s car, he called his car dealership to find out which panel beater it recommended and endorsed to do the best repair job. He checked his car in with this company, expecting good results but the repair work carried out on his vehicle was dreadful. The colour-matching on the paint may just as well have been done by a colour-blind five-year-old. And the texture of the new paint was so grainy the car looked like it had acne. The repairs to the light fixtures on the car were shoddy too. Sub-standard, at best. The car was checked in a second time (though the panel beater never apologised for the terrible work carried out the first time around). This time, my friend arranged to leave the car with the panel beater for three weeks, while he was away on business – plenty of time to do a good repair job, surely? He also took the service consultant on a step-by-step tour of the repairs that would need to be carried out to get the car back to its former glory. But alas, he returned to find that they had simply painted over the first blunder and had neglected to repair the lights, as he had asked them to. My friend is now forced to fork out the thousands required to repair the ‘repair’ (insurance doesn’t cover the stupidity of panel beaters, apparently). He will also suffer the severely impacted resale value of the car (as confirmed by an assessor). All because he decided to follow the advice of the dealer. I shall point out here that once the Consumer Protection Bill becomes law, cases such as these might be taken to court (because advice may well be deemed a service) and the consumer will be favoured, I have been told. In this case, my friend would have been able to prove that he suffered financial loss as a result of following dealer’s advice and then trying to fix the ‘recommended’ partner’s mess. For now, all the consumer can do is write e-mails and letters, and yell at someone on the phone. My friend has written a letter of complaint to the powers that be. But do you think they have done anything about it? No. The dealership has not even deigned to respond to his e-mails and phone calls, and this ostrich approach (head in the sand) has lost it a very loyal and valuable customer (he’s a young, up-and-coming hot shot with a very powerful equally hot shot-esque network of friends). Not much ‘voorsprung’ in that, is there? But then, can their customers expect any more from them when they endorse companies and partners whose service is so utterly deplorable, and then pretend that thy had nothing to do with it…

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.

Database: List Perfect

3 461 Jan-June 2008

the C P B

Marketing Mix Events Programme •

Mobile Solutions Showcase: 7 November 2008

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Luxury Marketing Summit: 12 & 13 November 2008

•

Interactive Marketing Summit: 4 March 2009

Sponsorship and delegate enquiries: Lethabo: [email protected] (011) 234 7008

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CRM

Marketing Mix CRM Masterclass The Marketing Mix CRM Masterclass, brought together the industry’s direct marketing and CRM experts. Audrey Price-Dix, senior manager: Direct Marketing at Cell C, says that marketers should be careful when using Web 2.0 media, which is now the source of junk mail and marketing clutter. She suggests that direct marketers apply some of the traditional principles of DM to new media and Web 2.0 to get the best results. CRM is not limited to external stakeholders and customers, says Grace Harding, MD, Actuate. Internal marketing and media strategies are key for communicating effectively with the people in your organisation who convert prospects into sales. Internal communications are very measurable (they impact on attitudinal changes as well as behavioural changes and these impact bottom line), and it actually doesn’t matter which medium you use, as long as the message is packaged right and is relevant to your staff. Actuate’s research found that most employees’ preferred method of communication is face-toface interaction with the big boss. Communicating what’s going wrong with the service strategy or why customers are complaining, will do little beyond raising awareness. But asking them to define what kind of behaviours they think would prevent customers from making these complaints gets them on board and develops an understanding of how to become a proactive employee. Issy Zimmerman, Redgewoods director, doesn’t believe that CRM and loyalty building plans are the way forward for brands seeking loyalty in retail, since they don’t boost sales. Loyalty to a store is based on location, whether or not it is the only stockist of a particular product or brand and whether the shopping experience delivers something unique and exciting. When it comes to retail for the youth markets, Zimmerman stresses the importance of the nag factor, and the emotional link to the desired product (especially prevalent among kids). He also mentioned the ‘agecompression’ factor, which sees kids getting older much younger (10-year-olds don’t want to play with Tonka Trucks or Barbie Dolls – they want

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PlayStations and laptops) and retailers are having to adapt. Kim Aardweg, managing partner, BrandEQ, says that women are the major purchase decision-makers across categories, with huge purchasing power. “Not only does a woman have more money to spend today, but she also spends her husband’s money,” says Aardweg. Yet few brands take women’s needs into consideration, and need to respond with advertising and communications that take into account the following: Women communicate to build, and they want brands and sales people to listen to their needs and problems and help them to decide what to buy. Women don’t buy brands, they join them, says Aardweg. And they have major word-ofmouth power. Nici Stathacopoulos, managing partner, proximity#ttp, says that in seeking out greater value in return for spend, marketers need to focus less on technology and more on its application. We’re almost bypassing the Internet and going straight to mobile, in South Africa, adds Stathacopoulos. Women, children, teens and students need greater attention from marketers; these are market sectors that are not being appreciated for their full worth. Some of the key strategies that marketers will need to adopt to become more relevant in the Web 2.0 world include social networks and virtual games. She points to brands that are making use of websites, Facebook groups and the virtual game Second Life to get more marketing bang for their buck. She emphasises that consumers in this space want to collaborate and co-create with brands, and see themselves as being part of communities. These consumers are online to a greater extent than marketers are prepared to admit (even in developing states, the penetration of these platforms is high!). There are, however, a few rules of engagement… 1. Be useful: develop widgets and other cool and useful applications that will make users want to engage 2. Become a citizen and not a ruler; contribute to the environment in a useful way

3. Be interesting, because this is what people are looking for when they sign up to Facebook or Second Life. 4. Individualism is about values over intimacy – respect and celebrate the individuality of users. And be an individual yourself. 5. Let users and consumers participate and collaborate, let them design your products and customise their own interfaces, for example. 6. Be prepared to change 7. Wear your logo with care – if you brand everything, it becomes background wallpaper. Stephen Green, director, i5 Group, says that CRM strategies and initiatives need to have the support and engagement of all employees for them to work. When developing the technological solutions that deliver better CRM for companies, marketing managers should address the needs and priorities of sales, marketing, IT, and service departments, and find ways to make the technology more user-friendly to each of these departments. But having the technology alone won’t cut it, says Green; a keen understanding of the enduser’s needs and behaviours is vital, as is having buy-in from senior execs. Business drivers and goals must be quantified upfront and all departments need to understand how the interface will help them to do their jobs better (the interface, meanwhile, must take into account the specific needs of each department). Green emphasises that the usability of any system is more important than its functionality, so training is a must. Thamir Hassan, CEO, TransUnion Analytic and Decision Services, says that having LSM and demographic customer data is not enough. Credit data offers marketers information that describes behaviour, especially in terms of spending, credit potential and credit risk as well as ownership of property, cars, and so on. And where demographics are static and slow evolving data sets, credit data changes every month so trends become clear. This info can be used to understand and segment customers, and to develop models to predict their behaviour. Hassan stresses that marketers must familiarise themselves with the NCA, and must ensure that at all times their marketing is in line with its regulations. 

by keith wiser EXPERT OPINION

The start of the journey When debating with myself where to start with this series of articles, I asked myself how I could best be of interest (and for interest also read ‘service’) to both mainstream, ATL-focused marketers, as well as any direct marketers who may have inadvertently strayed into the den. My starting point therefore goes something like this. Few MMs (mainstream marketers) have an understanding of direct marketing. But it is also my contention that few DMs (direct marketers) have an understanding of direct marketing. Before I go on to justify that statement I need to back up a bit. A radio spot is a radio spot. A billboard is a billboard. The same holds true for a television spot, a print ad or a cinema commercial. These types of adverts are, in fact, quite simply and clearly defined by the channel through which they are delivered. Now compare the above with a definition of direct marketing I came across a while ago: ‘Direct marketing is a cybernetic relational marketing process which uses direct response advertising in prospecting, conversion and maintenance.’ Over the years I have made several attempts to understand what might be meant by a ‘cybernetic relational marketing process’, but have never even got close. I have got a bucket load of other definitions. Little surprise then, that we have created so much confusion. When confronting this issue for a book that I am writing, I contacted some of my colleagues around the world. Michael Killeen, the MD of an agency called Dialogue in Ireland, took the fairly straightforward approach when he said: “Direct marketing is communication to a tightly targeted audience that requests the audience to respond in some form. If it’s to a mass audience, it’s not DM.” Martin Krassnig from our affiliate in Austria took a totally different view. He said “We do not talk about direct marketing, but about integrated marketing. We find ‘direct marketing’ outdated and prefer to talk about dialogue marketing.” George van Nevel from DVN in Belgium probably sits somewhere in the middle. He described his agency as “an interactive agency that specialises in interactive communication.” I guess part of the problem is that direct marketing takes on many guises these days, for example, simple direct marketing (SDM), data-

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Our inability to simply, succinctly and successfully communicate who we are and what we do is just one of the issues we need to confront. There are many others.

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base marketing (DM), relationship marketing (RM), customer relationship marketing (CRM), customer value management (CVM) and entity relationship marketing (ERM). You will notice that most of the above can be described by a TLA which stands for Three Letter Abbreviation which is the ultimate TLA. Here’s another TLA: OGS, which is not yet actually recognised as a TLA but if I push it hard enough it could be. OGS stands for Other Good Stuff, which is being stoked by the digital revolution that now enables us to do the most amazing good stuff. Under this heading we have tools like search engine optimisation and dynamic content engines which have turned us into direct marketing wizards. Little wonder that those of us at the rock face are having more problems reaching agreement than the judge at a Jacob Zuma trial. Before I create the wrong impression, I should leap to the defence of my DM colleagues. I am not suggesting for one moment that as direct marketers we don’t know what we are doing. Instinctively and with much planning and attention to detail, we do it every day of our lives to deliver value to our clients or as direct marketers in our own businesses. But for as long as this lack of clarity remains around who we are, what we do and what our clear remit is in terms of operational areas in marketing, I would suggest that we will never take our rightful place at the top table. It still remains a mystery as to why we are not given more work and a larger slice of the communications budget. We know that we are the marketing snipers. Our aim is true. While others are spraying bullets all over the battlefield we deliver cost-effective solutions. I have come to the conclusion that this is the case because we, as direct marketers, are our own worst enemies. Our inability to simply, succinctly and successfully communicate who we are and what we do is just one of the issues we need to confront. There are many others. Over the next few issues I hope to demonstrate that we as MMs and DMs have far more in common than our equal inability to define direct marketing. 

Keith Wiser MD, 5th Dimension

(011) 781 6396 [email protected]

EXPERT OPINION by richard duncan

The great brain drain SA is losing millions of rands worth of professional expertise every month. Fact or fiction? Along with many African nations, SA has been suffering from a brain drain for the past 20 years, but the degree of human capital flight (the technical term for brain drain) from the country has been particularly pronounced in the last decade. This combined with a reduction of immigrations and a more stringent immigration policy has meant a net loss of skills. Some sources, notably in government, have claimed that the brain drain is over stated and that an encouraging number of South Africans are returning to the country. Is this a reality, blind hope or a misguided misconception? While there have been efforts to persuade South Africans to return to the country, at times it must seem like pushing water uphill for those in government charged with the responsibility of reversing the statistics. It’s hard to argue with the immigration trend, the facts of which are:  SA has lost 25 per cent of its graduates to the US alone.  South Africans account for 9.7 per cent of all international medical graduates practicing in Canada. This is to say nothing of their peers in the UK, Australia and New Zealand.  Out of all the medical graduates from Wits University in the past 35 years, 45 per cent (2 000 physicians!) have left the country.  Australia, New Zealand, Canada and the UK account for 75 per cent of all emigrations. According to SA’s own Bureau of Statistics, it estimates that between 1-1.6m people in skilled, professional or managerial occupations have emigrated since 1994. For any country, bar the US perhaps, this is a substantial pool of qualified experts to lose. While the brain drain may only represent three per cent of the total population of 47 million people, invariably the emigrations are coming from the more educated and skilled sector of the population. This is further compounded by the official calculation that for every one of these skilled emigrants, 10 unskilled people lose their jobs. That’s anywhere between10 and 16 million people’s livelihoods affected directly by the brain drain. The reasons cited for leaving one of the world’s most beautiful countries? Not surprisingly, safety and security, general dissatisfaction with the cost of living, the level of taxation, and the poor standard of public and commercial

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I In a survey conducted in SA, two thirds of the sample said they had given the idea of emigration some thought, whereas 38 per cent claimed to have given it a ‘great deal of thought.

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services. Affirmative action and career stability/prospects have also been major drivers whose importance is growing and directly affects any remaining confidence in the protection of what to date has been a privileged lifestyle. It has also been said that the impact of affirmative action has seen a shift in skilled labour into early retirement, alternative careers and industries, and a growth in self-employment and consultancy businesses as the displaced workforce seeks alternative career prospects. For some, this has led to the decision to leave the country. Whatever the statements made by the South African government regarding the actual emigration numbers, one only has to turn to the governments of Australia, Canada, New Zealand and the UK to learn the actual number of immi-

grants from SA. Here are the facts (sourced from each government’s Department of Immigration and/or census data):  At the time of the 2006 Australian census there were 104 120 people in Australia who were born in SA. More than half of them had arrived since President Mandela became President in 1994. ‘Packing for Perth’ has become slang for South Africans leaving their country.  The number of South Africans living in Canada between 1996 and 2006 increased by 30 per cent.  Between 1991 and 1997 SA didn’t feature on the UK’s top 10 emigration list. In 1998 and 2000 the country came 8th, 5th in 2001, 2002 and 2004, 4th in 2002 and 3rd in 2003 and 2005.  In numbers terms between 1991 and 1997 the average number of arrivals from SA in the UK was anywhere between 900 and 1 300. This doubled in 1998-9 (2 260-2 955), doubled again in 2000-1 (4 300-4 755) and doubled yet again in 2003-5 (7 850-9 635).  Since 2002 the number of citizen applications in the UK by South Africans has steadily grown past previous records and continues to increase each year with 7 735 citizenships granted to South Africans in 2006, an alltime high.  In New Zealand, South Africans account for just under nine per cent of the total immigration pool. In a survey conducted in SA, two thirds of the sample said they had given the idea of emigration some thought, whereas 38 per cent claimed to have given it a ‘great deal of thought’. I wonder how many others are now giving the thought of emigrating serious consideration and just how worried the South African government is that the brain drain is far from over and in danger of becoming more pronounced in the next few years and immediately following the FIFA World Cup in 2010. 

Richard Duncan founding partner, The Partnership Sydney, Australia

+61 41 1549 791 [email protected]

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7 DAY [B]ITCH

Ronen Aires, CEO, Student Village

01/09/08 My alarm goes off at 6am. My first thought is why do alarm clocks have to be so damn punctual!?! I kick into fully awake mode while working through my first cup of coffee and chatting to our points man in Dubai, where we’re taking a good look at some truly exciting possibilities. I load the kids into the car and get into traffic on the way to school. By 9am I’m at the office in our weekly sales meeting, enjoying contributing to the energy among the team as we brainstorm new concepts for clients wanting to reach the youth market. The rest of the day is spent catching up with key people in the business, my inbox and a potential new client and – in between all of that – thinking of ways we can continue to make positive changes in the lives of SA’s students. I head off to gym around 5.30pm while frantically returning calls from earlier, and then spend a few hours at a friend’s birthday dinner at Bottega in Parkhurst. I’m home around 11pm to prep for our Tuesday morning staff-meeting, where I’m reviewing insights from leadership guru Benjamin Zander’s book – The Art of Possibility – with the Villagers. I still have so much to do before I fly out to Dubai tomorrow...

04/09/08 I arrive back in Jozi. The crisp air, blue skies, crazy taxi-drivers, smiling faces and Seattle Coffee is always such an amazing welcome. I head straight back to the office to prepare for an important client pitch. The team is on point and after a kick-ass presentation we go out for a catch-up drink. By 6pm I have a headache that only Myprodol knows how to handle. My phone rings – I have forgotten about a client’s product launch. I sneak in and out by 7pm and then head home to sleep.

02/09/08

05/09/08

I’m at the office at 7.45am to take a quick peek at my inbox before the door closes for our staff meeting at 8am – zero tolerance for latecomers! This is one of the most important meetings of the week – a chance for the entire team to update each other on where they’re at and where they’re going. The door opens again at 9am and my mental ‘to-do’ list is growing exponentially. I focus on contacting my key clients, checking the monthly management accounts and making sure current projects are running smoothly, and of course, charging my Blackberry. I shoot off to spend some time with the kids, before heading for the airport. As I get through passport control, I’m cursing the decision to take my laptop with me – why are we treated like terrorists these days? I’ve got just enough time to buy some fragrance and have a quick meal (I don’t do airline food!)

At 6am I enter into serious negotiations with my alarm clock and manage to secure a 45-minute extension. After dropping the kids at school, I head off to the gym. I’m in a management meeting at 9.30am and then start a series of back-to-back meetings until 4pm. Exhausting – sometimes. Exhilarating – always. At 4pm I’m with my personal mentor, Merle Friedman, going through some work-related and personal growth strategies. At 5pm I head off to Tony at Salon Roma (one of Jozi’s best-kept secrets) for a shave and a shave (beard and head).

03/09/08 The plane touches down in Dubai at 5.30am and already it’s nearly 40 degrees! I go to meetings throughout the day, marvelling at the energy and pace of this city. I find time to chill out and recharge – courtesy of a quick snow-ski and shopping session at the Emirates Mall – before meeting an old client, recently relocated to Dubai, at Nando’s. It’s so refreshing to meet a South African who is not on ‘happy gas’ about Dubai and is looking forward to returning to SA in the future. I’m back at the airport at midnight.

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06/09/08 I sleep in until 10am, head off to the gym and then on to see Patricia, the Soul Doctor, to have an energy-healing session. With my chakras intact and energy renewed, I spend the rest of the day with the kids. Thomas the Tank Engine proves to be a great sedative – for me.

07/09/08 I take the kids out for breakfast and then off to the zoo, and spend the rest of the day with family. By early evening I’m prepping for Monday morning, followed by a meeting with a community organisation about an upcoming event. Then it’s off to see Jerusalema. It’s always better on the big screen – and who can go wrong with a quality local production like this? 

by ALL GOLD BRAND ANATOMY

100 All Gold years Any South African will tell you that there is just one tomato sauce brand worth dipping their chips into. All Gold Tomato Sauce. Celebrating 100 years as a top selling South African icon, All Gold Tomato Sauce is well set to continue its message of crammed full goodness, for the next 100 years. It was from humble beginnings in 1908, that All Gold Tomato Sauce was first introduced and has since grown to include a number of products renowned for their quality and taste. From crammed full tomato sauce to great tasting jams, All Gold continues to make ordinary food, extra-ordinary.

Marketing a century: To celebrate its 100th birthday, All Gold has launched a monthly competition cash prizes to the value of R100 000 with runner-up prizes of R1 000. Until November 2008, consumers have the chance to SMS the barcode of their favourite All Gold product to the competition line. This campaign is being supported by a mix of TTL advertising including activations and strategic PRO. To talk to All Gold’s illustrious career, Vatiswa Sineke, marketing manager of Condiments and

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Ingredients, dug out of the archives the popular ‘giant bottle’ TV commercial (featuring children cramming 36 tomatoes into one bottle of All Gold Tomato Sauce), endorsed by the All Gold 100 years stamp of approval. Exciting new radio spots, with the revised classic All Gold jingle was created to bring a true the sense of fun the brand is well known for. Category driven print ads further increased the awareness of the All Gold range, strengthening the brands core message of crammed full goodness. Advertorials and branded recipe pages appeared in relevant consumer magazines, to give mums (key shopper) the freedom to turn her ordinary meals into an everyday delicious experience. The All Gold website (www.allgold.co.za) was modernised to be more interactive and educate the great uses behind the wide range of products. It features the history of the brand, more simple to use recipes, product information, brand news, and a consumer contact form to further assist the consumer with more tit bits and great in-kitchen ideas. Sineke said that the online recipe databank was a popular destination followed by the consumer care line which was often flooded with recipe requests.

BRAND ANATOMY

Making a good brand great!! Part of the All Gold brand success was the result of relevant brand activations that spoke to the hearts and minds of the All Gold consumer, who often expressed the fact that they saw the brand as their partner in the kitchen. “In line with the value set of the brand”, explains Sineke, All Gold’s partnership with Spar in the Unite Against Hunger campaign and participation in the All Gold Shoprite Boerewors competition spoke to the brands commitment to events South Africans hold dear, but highlighted the fact that the brand is loved both inside and outside of the kitchen. Other innovative alternative media uses incorporated community activations. This is where All Gold took the opportunity to educate consumers about food, cooking, catering and business skills to show the clear benefits behind quality products. “In essence, if quality products are used, quality clients are retained” says Sineke.

Health kicks In terms of global trends towards healthier eating, All Gold Tomato Sauce can stand proud – the high levels of Lycopene found in the natural tomatoes acts as an antioxidant, which contribute to the fight against cancer and heart disease. “Consumers are far more savvy and are exposed daily to information about healthy foods and their important role in a balanced diet. We have always been proud with the fact that All Gold can comfortably comply with these trends and will continue to hold the principle of quality at the core of our brand proposition”, says Sineke. The All Gold website carries ingredient information for every All Gold product, allowing the consumer to be more aware of what goes into every All Gold product and ultimately into every meal. With the introduction of Gold Tomato Sauce Light, a clear consideration for the healthconscious tomato sauce lover has been catered for; artificially sweetened, it carries less sugar than regular Tomato Sauce and can form part of a Weighless programme. “All Gold Tomato Sauce carries no preservatives, no colourants nor thickeners. We respect the consumer’s health, and will always opt for the healthier option when we source ingredients,” says Sineke. In fact, she adds, the All Gold brand recognises that it has become more important than ever for brands to start educating consumers about healthier lifestyles and future advertorials featuring healthy All Gold recipes will promote this.

Pricing right At a time when most shoppers are tightening the purse strings, All Gold products are holding

strong. Sineke says that since most consumers consider the Tomato Sauce an every day product, they are reporting satisfaction with the current pricing. In fact, the larger 750ml size is the brand’s number one seller. “Actually, I haven’t seen a trend towards smaller packs, in fact the trend is towards brands that deliver on true functional benefits, as the risk of spending on a cheaper alternative that fails to deliver are more costly” she says. Looking ahead, we can expect All Gold to continue to deliver great quality crammed fill products, great taste that turns your ordinary meal into an extra-ordinary one.

The All Gold timeline: 1908: launch of All Gold Tomato Sauce 1959: mass production of All Gold Tomato Sauce in Paarl and Langlaagte 1990: launch of TVC featuring giant bottle 1992: All Gold wins Gold at the Monde Quality Awards, in Brussels (affirmed the quality of All Gold products from a dietary perspective) 1993: launch of new All Gold Hot and Spicy Tomato Sauce variant 2000: All Gold Pasta Pronta was launched (first ready to eat pasta sauces on the market) 2003: launch of new cream based Pasta Pronta variants 2004: All Gold launched its upside down squeeze tomato sauce, in new packaging. TGI Finance Week voted All Gold the No. 1 icon food brand in South Africa 2005: the brand was again voted the No. 1 icon food brand in SA. 2007: All Gold was voted one of the Top 10 brands in South Africa. All Gold Upside Down Squeeze range is also launched, introducing five new flavours to the range.  Article issued by All Gold

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YOUTH MARKETING

Pictures courtesy: Campus Media

Youth Insights The youth of today are tomorrow’s up-andcoming shoppers and business hotshots, and they represent a hefty proportion of the total South African population. There are the challenges of understanding this market and speaking to it successfully on the one hand, and navigating new marketing laws and guidelines on the other. According to Youth Dynamix, the under 24 market numbers 25.6 million, 53 per cent of the total South African population. “Not only does the youth market represent more than 50 per cent of SA’s population, statistics generated by the Sunday Times Generation Next 2008 survey suggest that the youth market makes tens of billions of rands of purchases annually and influences considerably more,” says Jason Levin, MD, HDI Youth Marketeers. Andrea Kraushaar, youth strategy and research director, Youth Dynamix says that: “From a potential point of view, the youth market should be considered as three markets in one.” As a primary market, that has its own money to spend on its

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own needs and wants; as an influence market (influencing the parents’ and family’s spending) and as a future market. “Teen girls particularly are as key to marketers as women consumers,” says Khwezi Magwaza, editor, seventeen magazine. “What’s cool to teen girls will often filter to all other consumer groups as the measurement of what’s in.”

Marketing to the youth Marketers are not speaking to the same type of teenager they spoke to a few years ago, and this is in great part thanks to technological developments. Internet and mobile use has climbed steeply. Youth Dynamix has found that Internet usage has doubled from nine per cent in 2005/6 to 18 per cent in 2007/8, among 10-12 year olds, while for the 12-15 year olds, Internet usage is up 12 per cent to 32 per cent. Lower LSMs (LSM 5-7) report a lower usage of Internet compared with the LSM 8-10 youth. “Fifty three per cent of 16-24 year olds are online,” reports Kraushaar.

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Helena Gavera, Hip2B publisher, points out that higher LSM youth may have Internet access at home, while lower LSMs access it at school. Seventeen per cent of 7-9 year olds have their own cellphone, while 56 per cent of 7-15 year olds have access to a cellphone when they need it. Ownership for LSM 5-7 is at 81 per cent, while among LSM 8-10 it’s at 95 per cent. For 19-24 year olds, ownership is at 86 per cent. And MXit is gaining in popularity, according to the research, with one in three 13-15 year olds listing MXit as one of their primary uses of a cellphone. Youth Dynamix’s research has also found a marked increase in the number of youth accessing the Internet through their mobile phones. “This is going to play an important role in providing access to the Internet across the LSM brackets thus creating more convergence,” she says. Meanwhile, HDI Youth Marketeers’ research has found that tweens, teens and young adults as a whole, visit websites and social sites more than twice a day. The results also show that there is a

YOUTH MARKETING

correlation between age and Internet usage (the older they are, the more often they are online – although young adults are online slightly less than teens, probably because of time constraints). More than 40 per cent of youth surveyed report that they use their cellphones to access the Internet regularly. The constant access to media and technology has taught youth to become serious media multitaskers and as a result today’s youth are defined as having continuous partial attention. In other words, they are watching TV, but they are also sending text messages and chatting to friends on MXit at the same time, and are probably also listening to music via an iPod. Their attention is never exclusively dedicated to one medium. This has created a new imperative for brands – not only do they need to be available in the new media space, but they need to be available 2 across a variety of media at one time. Hip2B , for example, is available across various platforms outside of the print title – website, electronic newsletters, mobisite, brand ambassador programme, TV show, roadshows and so on. “Although print offers a unique experience, youth have never been the biggest readers of magazines in any market,” says Gavera. The good news is that technology is enabling brands to reach a wider youth market. “With such huge disparities in wealth and living conditions there are still many differences between socioeconomic groups in SA. Nevertheless, technology is increasingly drawing them together,” says Fiona Thompson, editor, National Geographic Kids. Brands are warned that the new age of media has created new expectations. The youth expect any communication to be a two-way exchange. Brands are also reminded that the youth are very sceptical of traditional marketing and advertising, filtering out what they don’t want. “Marketers can’t dictate how or when their product is engaged with, rather the teen decides how it fits into their lifestyle, which could be very different to what the marketer had intended. Brands will have to share values with their consumer rather than broadcast their own,” says Gavera.

Brand Speak The youth market is exceptionally brand conscious, but not brand loyal, says Richard Perry, operations manager, Student Radio Networks. And they demand quality and service. He goes on to say that brands need to be in their direct means of consumption, and should offer them further information and total honesty. It’s about perceived value, after all.

Stimulii’s top tips for youth marketing 1. Don’t speak down to them 2. Allow them to co-create the product 3. Engage with them on the platforms they naturally turn to 4. Never assumer that you know more about them than they know about themselves 5. Be novel in your message 6. Don’t try and trick them (once you do, you’ll lose their trust) 7. Account for how sophisticated they are 8. Youth are fickle 9. They are socially aware and environmentally conscious 10. Youth are more well rounded than the previous generation and they expect to be heard. For example, a large amount of Obama volunteers are below the voting age 11. They trust their opinions and value themselves, and believe their opinions are valid and deserve to be heard 12. They live in both the real and virtual space and cultivate their virtual personalities 13. Be careful not to impose advertising on them.

Furthermore, youth today will not be defined by the brands they choose to buy or wear. “But there are brands that they love and these have become so much a part of their worlds that they cannot picture life without them,” says Levin. There exists a dichotomy between the youth’s reliance on brands and their cries to be freed from the tyranny of brand conformity. “This is one of the key tensions in the youth marketing space. To coin a term, ‘ContrAddiction’ doesn’t speak to a new-age rebellion so much as it does to a new attitude in youth consumer behaviour,” says Levin. Youths aren’t even conscious of their addiction to contradiction, because this dichotomy of choice has become so much a way of life, he says. After all, with so many brands available to them, the youth can choose to align themselves to a cluster of brands rather than just one or two brands. One way to get the youth more involved with a brand is to encourage them to co-create the bran, and help them to customise the brand and the brand experience. “Even if young people are

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YOUTH MARKETING

interested in the same thing the world over, they also strive to customise any experience so it’s uniquely theirs,” says Magwaza. And there remains, as always, the appeal of celebs and characters that entice the youth. “There is a new zeitgeist with the popularity of characters such as Hannah Montana and those in High School Musical,” says Gavera. Though she says that there has been a move away from celeb endorsements to role models and brand 2 ambassadors (Hip2B has a brand ambassador programme, and the brand ambassadors play a role in influencing readers and students).

The Campus Media Media and Promotion Survey 2007 Key findings:  SMS and e-mail are the most preferred form of competition entry  Response to promotional pamphlets is still positive (but this has declined slightly).  Students respond to SMS promotional messages only if the information is relevant to them. They all check the small print and the cost of sending a reply to competition promotions via SMS. They will not enter if the cost of entry per SMS is more than R3.50.  Promotional staff attract students, but they prefer to approach a promotional stands versus being approached by a promoter.  The prizes and incentives that students most like to receive include cash, CD vouchers, T-shirts, CDs, cellphone airtime, cellphones and clothing.

Spending patterns What are the youth spending their allowances and incomes on? “It varies depending on what they need to cover with their disposable income – clothes, toiletries and entertainment. Of course, a new addition to their budget is their cellphone and airtime,” says Gavera. But, she adds, their spending habits, attitudes and brand choices are not determined by demographics alone. Youth Dynamix reports that the top five items that the 16-24 year olds are spending on are cellphones/airtime, clothing, fast food, snacks and cool drinks. “As they get older, the 13-15 year olds’ spending patterns start reflecting that of their older young adult counterparts,” says Kraushaar. As Perry explains, yesterday, students spent on needs, today they spend on wants.” If value is perceived in a product or service they will make a plan to get it by whatever means necessary. From working for it or using manipulation to get it. They spend the money they make virtually immediately to get something they want,” he says. While initially, this market was thought to be recession proof, research shows it is not. Consider that they are also impacted by rising food and fuel prices, and because their parents are feeling the pinch, they are having to make more of their fashion and accessory purchases themselves. “Since this market relies on disposable income from their parents, we do see a drop in sales when the economy is in a decline,” says Dene Strain, publisher, seventeen.

Marketing opportunities With the youth growing up fast, there are gaps in the market for new products and services that meet their needs. “Existing financial products are all about loans, while investment is completely ignored. I believe that if a student starts an investment portfolio at 18, by the time they are ready for retirement the investment would have grown

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Members of the HDI Junior Board of Directors

exponentially and made both the company with the product and the individual very wealthy,” says Perry. Levin agrees: “Even though the youth spend over R80 billion per annum, only 40 per cent of urban youth have bank accounts. This indicates that the banks are not appealing to the youth sufficiently for whatever reasons.” Cellphone networks have not capitalised on the youth market’s intense dependence on mobile communications. But for them to do so, they would need to make their services far more affordable (as MXit has done). In developing youth marketing strategies, says Levin, marketers need to stand by their brands and also find out (not by asking themselves) whether their brands can play in the cool space. “If they can, youthdom becomes their oyster, a la Guess. If, realistically, they are never going to be cool, then they should focus on brand and product intrinsics and make those interesting to young people,” he says. It is also key to have a strategy that understands the growing up process of young consumers; strategy should adapt to their physical and psychological developmental stage.

Legal The South African Advertising Standards Authority (ASA) recently published the Food and Beverage Code, which seeks to regulate the advertising of food and beverage products to children (particularly under the age of 12 years). This is in response to trends abroad, which sees governments stepping in to regulate advertising to kids, after research found that TV advertising does have an impact (albeit small) on children’s food preferences. Of course, there is also parental influence, family eating habits, school policies and the habits of friends and peers, etc which play a role in the child’s food preferences. “Today’s children are increasingly marketing and branding savvy – they are even learning about advertising in primary school,” says Kraushaar. The ASA Code is going to impact not only on marketers and advertising, but will also on TV advertising sales. “In terms of the new legislation, no official regulations have been passed by the government, meaning that we are operating in a self-regulatory environment,” says Kraushaar. The ASA’s guidelines are relevant and assist marketers in communicating with children in a way that is

YOUTH MARKETING

ethical and balanced, but also recognising them as consumers in their own right. “It is recommended that ethics become a sustainable part of marketing and communications to the youth,” says Kraushaar.

Media choice A few years back, the experts were predicting doom and gloom for the media, especially where youth markets were concerned. Yet research shows that the youth do engage with traditional media (TV, in particular has not seen major declines in youth audiences). However, these traditional media need to play by the new media rules (especially newspapers, who are no longer the trusted news source, and whose content is not appealing to youth, as the World Association of Newspapers discovered in its 2007 research). Radio stations are still pulling in youth audiences. 5FM was voted the ‘coolest’ radio station in the 2008 Sunday Times Generation Next survey, and while CDs (álbéit not necessarily bought ones) are still the most used source of music, radio comes in as the second most used source of music. The survey also found that the youth listen to radio daily, with more than half of respondents listening via their cellphones, and 30 per cent listening via Internet streaming. Student radio is growing and is coming of age, says Perry. The student radio stations have become more professional and competitive, and are attracting large (and loyal) audiences. And, contrary to popular belief, students do not necessarily migrate away from these stations as they get older. “Eventually, the market that used to listen to these stations will migrate to something that suits them, but this does not happen as quickly as one may think. That’s why you will find this loyal audience in student broadcasting and radio in general,” says Perry. He says that there are three groups that listen to the student stations. The younger group includes scholars that aspire to university student lifestyles. The second group is the 18 to 24 student life stage market, the majority of the audience. They have more expendable cash than ever before. “In the past this market was one that simply had enough money for alcohol, petrol and banned substances, while driving bashed-up ‘70s cars. Today, when you go to campuses around the country they are wearing designer clothing, driving expensive cars, using top of the range technological gadgets and simply seem to know what they want then go out and get it,” says Perry. The third market makes up those from early working class to nearing retirement. 

The Campus Media 2007 Student Lifestyle Survey The Campus Media Student Lifestyle Survey was completed by students aged 18-24. These are some of the key findings from the report:  41 per cent live in a student residence.  Compared to results from previous surveys, respondents indicated that they intended to go overseas for either very short periods (6-12 months) or for very long periods. Says Adrian Goosen, national sales manager, Campus Media, in previous years, students had been going overseas for one or two years to gain work experience, while now it seems they are opting to do shorter job or travel stints so they can return home and start working.  Their largest concerns are around finding a job and funding their studies.  The majority of respondents get income from bursaries, some from part-time employment, and some from an allowance. Indian and white students are more likely to get income from an allowance and from jobs.  79 per cent watch TV regularly. Most-watched TV programmes include the Bold and the Beautiful, Days of Our Lives, Isidingo, E! on DStv, Top Billing, the History Channel, Cartoon Network, National Geographic channel, Liga Soccer and Boots & All.  The magazines that the majority of students purchased monthly include SL, Car, Femina, Sports Illustrated, Fair Lady, Top Car, Men’s Health and FHM.  Beer is the favourite alcoholic beverage (followed by readytodrinks and spirits).  Coca-Cola, energy drinks and water are the most consumed non-alcoholic beverages. Goosen says there is a growing awareness of healthy eating and lifestyles, so there has been a growth in the consumption of wateras opposed to fruit juices and sugared soft drinks.  Favourite radio stations are: 99.2 YFM (Gauteng), 94.95 East Coast Radio (KZN), and KFM 94.5 (Western Cape). Claimed magazine readership:  White: You magazine, People, Financial Mail, Huisgenoot, Vroue Keur and Time.  Black: Drum, Time, heat and people.  Indian: heat (low magazine readership reported).  Coloured: Vroue Keur, huisgenoot and heat.  Jeans are the favourite item of clothing.  Favourite clothing brands: Diesel, Billabong, River Trader and Levis  Favourite footwear brands: adidas, Puma, Nike and Reebok  Make clothing purchases at Edgars, Truworths and Markhams primarily (most have accounts at these stores).  97 per cent of students own a cellphone and 85 per cent of students use prepaid packages. Vodacom, followed by MTN, Cell C and Virgin Mobile are the networks that most of the students use. 68 per cent pay their own cellphone bills (though Goosen makes it clear that they may be paying this with their allowance money).  45 per cent of students have a car.  89 per cent of students have access to the Internet (primarily via residence Internet access or Internet cafes on campus).

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RESEARCH

Online research:

Not there yet The research landscape in SA is very dynamic, and keeps up with global trends for the most part. As marketing moves from a model of talking to consumers with a one-size-fits-all approach towards a model of consumer control, so marketers need to find ways to engage more fully with consumers in a dialogue. “Research needs to adapt to this new reality and assist marketers in this ongoing process,” explains Neil Higgs, director: Innovation and Development, TNS Research Surveys.

Online research: viable? Moves towards Internet and mobile data collection are two of the foremost methodological changes that are driving research forward, according to Hendrik van Vuuren, marketing sciences director, Millward Brown. In the US and the UK, among others, online research is not only viable, it is a growing trend. In fact, many of the new research methodologies being developed abroad are Web2.0 based, says Higgs. Online research is considered cost-effective and has been shown to yield rich responses in qualitative surveys. “Online qualitative techniques are growing because they are less intrusive for respondents and can be more honest and run over several days or weeks. People respond in their own time and a great richness arises. The use of multimedia is growing in qualitative research as we realise that people engage all their senses, not just their cognition in processing ads and packs,” says Higgs. Blogs, bulletin boards, web diaries and online competitions can all be used by researchers to collaborate with consumers, and create conversations and experiences that yield juicy insights. “Consumers around the world are sharing more and more of their lives online. For insight, this is a huge opportunity,” says Dr Inka

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Crosswaite, semiotics specialist, Added Value. In fact, both qualitative and quantitative research stand to benefit from online methodologies. Michele Sohn, director HKLM Confluence, believes that when done right, online research can be very powerful. She points to brand-sponsored bulletin boards or social networks, which encourage consumer interaction with researchers who observe conversations or stimulate debate to generate new ideas, for example. However, Sohn stresses that there are ethical concerns around this; there have been cases of researchers using the bulletin posts and chat site discussions of consumers as research data, without disclosing to the participants that she was doing research or getting their permission to use their responses as research input. “There’s a difference between lurking and listening in, and creating a conversation,” she says. Online research might still be thought of as quite radical, since one has no idea who is really on the other side (they could be a competitor), says Sohn, and this may be another reason why we have seen limited uptake of online research locally. Some of the challenges of conducting online research are similar to the challenges for other research methods. The first obvious challenge is limited Internet penetration, but some argue that for targeting the upper LSMs and the youth (who have Internet access at school, university or their cellphones), online is viable. “While it is growing rapidly in SA, from a practical research point of view, online research is only really viable within the higher LSM segments of the market,” says Van Vuuren.

He goes on to say that since low-cost solutions are available abroad, he doesn’t believe that cost is a barrier to online research. “In fact, the Internet has become the most widely used data collection method employed by Millward Brown in the US market,” he says. “Pure research still needs to be sampled throughly and in the abscense of a cellphone database/listing, it’s pretty impossible to sample at all,”says Heidi Brauer, deputy chief executive officer, Ipsos Markinor. The issue is how to convince people to participate, says Sohn. “The average response rate for online research– except for online panels – is about one per cent. This is comparable to telephonic research,” says Sohn. Gifts and incentives remain an issue. Sohn has found that in general, research participants are less likely to be attracted to competitions with prizes with a value greater than R5 000 (there is the perception that the more valuable the prize, the smaller the chance that they will win). The level of participation in online research correlates directly with two major factors, she says. The first is the level of passion that the participant has for the brand or company that the research is about. Harley Davidson >p18

RESEARCH

owners, for example, are very likely to respond to surveys about their favourite brand than non-owners. The second major factor is the level of connectivity that the participant has with the brand; this refers to a physical and a conceptual connectivity. Think about the gym that you visit everyday for a workout versus the greengrocer whose store you visit once a month: you are more likely to respond to surveys about the former. “For business to business or staff research, you cannot do better than web-based research,” says Sohn. “For business-to-consumer research, it depends on the audience, and interestingly, it has nothing to do with LSM, and everything to do with the level of interest in the brand and its connection to it,” she says. >>p16

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We see the cellphone as a key means of contact for research. But it will also become the key means by which people link to the web as technological convergence grows. This means it will be a key heavyweight medium in the future.

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Social networks seem to be something of a super-trend, and some researchers argue that it does have potential as a research tool. “We are beginning to tap into this, but it needs care and someone highly familiar with the particular network speak,” says Higgs. “There is a concern that sometimes people will take on a persona that is quite false. Tread carefully for now.” Look out for the use of virtual worlds as research environments and tools.

Mobile research Research via mobile will grow hugely, say the experts. “We see the cellphone as a key means of contact for research. But it will also become the key means by which people link to the web as technological convergence grows. This means it will be a key heavyweight medium in the future,” says Higgs. Dr Crosswaite also believes that we will see an increase in the number of mobile research studies. “As the lines between the PC/Internet and mobile phones blur, we’re anticipating that these technologies will be used more and more to connect with and understand consumers,” she says. However, as Brauer points out, mobile questionaires are limited in terms of length as well as by virtue of the fact that the respondent must pay to reply. Control of the sample is also an issue.

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Shopper research Understanding how consumers shop and how they decide which brand or product to buy and why has become significant. “This is a growing area of research all over the world. In particular, the emphasis is placed on watching how people behave, rather than asking about their behaviour,” says Higgs. He reports that TNS is using ethnographic and observational techniques as well as regular questionnaire surveys to determine what happens in the shopping environment. Meanwhile, POPAI conducts Marketing At Retails Initiative (MARI) research abroad, which equips the average shopper with glasses that are fitted with tiny cameras. These cameras capture not only where in the store the shopper travels, but also how they interact with each product or brand and all the marketing material in the store. This therefore measures engagement with marketing and brands. Currently, POPAI SA is looking for sponsorship and the support of retailers and POP marketers to establish the study locally. Researchers are also turning to research into market barriers (factors that prevent a shopper from buying the brand they want to buy, so they are forced to buy a competitor brand). This type of research is helping merchandisers and marketers to refine their channel management and identify how competitors are gaining share in areas where their own brands are vulnerable. Shopping diary methodologies are allowing researchers to collect information about the catchment areas and average basket spend of consumers across various regions of SA (and therefore, across various socio-economic groupings too). Through this research, they gain insights into where they shop, when, for which items as well as why they purchased what they did, where they did.

Re-segmenting consumers Another trend in research is that of re-segmenting consumers according to need states, which understands that the individual is one consumer in one situation, but a whole other consumer in another. “This has led to the situation where new research techniques that can show how brands can leverage occasions rather than people will have a greater ROI than current conventional methodologies,” says Higgs.

The non-linear consumer Previously, it was believed that consumers were passive and that their decision-making is rational and linear. But Van Vuuren says that there is now

RESEARCH

a stronger push towards understanding the role of neuroscience in a research context and how the human brain responds to external brand and advertising stimuli. “The realisation that humans are non-linear will have a huge impact on research in the next few years,” says Higgs. He believes that in SA, there is still much work to be done to change marketer understanding of how the mind really works with regard to marketing messages. “Many marketers, advertisers and researchers cling to outdated models. The key issue is not to measure marketing interventions directly, but to focus on their direct effect on the brand. This can only be done by recognising that people make very quick decisions using their instincts – they use shortcuts termed ‘fast and frugal heuristics’, and this is completely changing the face of research and how we ask questions,” he says. Questionnaires that assume that the respondent thinks rationally are not valid according to the new thinking. Researchers are tapping into the needs of consumers and their non-rational thinking by using games and sensory tools. “Currently, insight tools are also asking less about the ‘why’ of behaviour and using more sophisticated methods to help people articulate their emotions, experiences and expectations of categories and brands,” says Dr Crosswaite.

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The consumer as a whole person The focus on wellness as a holistic concept is based on the thinking that to be well, a person must be in good physical health as well as emotionally and mentally healthy and balanced. “There is a growing realisation that people’s wellbeing drives the way they interface with the world. This has become a new focus of staff commitment studies, particularly,” says Higgs. Marketers find that the emotional state of the consumer has a fair impact on their behaviour and purchasing decisions. So understanding where a brand fits into their emotional mindset may unlock clues about how that brand can create a simulated emotional response and therefore drive the desired behaviours. A further focus on cultural insights seems to be on the hot list. According to Dr Crosswaite, understanding how culture influences people can unlock enormous insights for brands. “Typically, consumers can tell you about how they feel now and what they might like to tweak in their world. However, most people battle to articulate unmet needs and usually can’t predict what will happen in the future,” she says. Semiotics, ethnography

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and observational insights are used to understand and decode culture. This understanding can be further used by brands to adapt positioning messages to suit local markets and encode their communications with cultural cues that reinforce and deliver the brand’s messages.

where the tested ad is placed in the middle of a programme and mixed in with other typical ad clutter. Viewers punch their vote directly into a wireless device and the quantitative data is used to make recommendations.

Still to come Internal marketing and employee satisfaction Employee satisfaction is an interesting topic, and one that is attracting more attention perhaps because of the Generation Y trends (this generation is renowned for job hopping and dissatisfaction with certain elements of the traditional workplace). Being able to measure employee satisfaction means understanding what keeps good staff for longer and how to exploit and engage their passion in the workplace. Sohn believes that there is no difference between staff and the consumer (they are both consumers, after all). She points to the growing trend towards research that tries to align staff behaviour with customer expectations, and tries to predict which personalities will create the best staff group when put together. Internal research is often not given priority status, says Sohn. “Internal research surveys often don’t respect staff’s time,” she says. Too often, companies create negative behaviours by making internal surveys compulsory and/or boring, time consuming and repetitive. Sohn believes that short format surveys with a mix of quantitative and qualitative questions, designed in a delightful and entertaining way, would get a far better response from employees.

Measuring TV The DStv-i return path audience measurement, which is set to be launched locally in early 2009, will offer audience measurement for the fragmented audiences of the many digital channels now on offer. According to Brenda Wortley, director of Oracle Airtime Sales Strategy and Research Division, December will see OATS recruiting 4 000 DStv homes. “At last, we are getting to viable electronic capture in a field where there is instant transfer of data to head office. Until now, the risks of in-field electronic data capture have been high due to poor battery life, the possible loss of data if a unit is stolen or lost, damaged or becomes faulty, plus high capital and insurance costs,” says Higgs. Ipsos Markinor’s new advertising research unit, ASI, will offer clients TV advertising research, amongst other copy testing solutions. Its Next*TV offering allows for final-stage testing, which takes place in consumers’ natural viewing environment,

Looking ahead, we may expect to see research taking on new areas of market interest, such as the green revolution and impact of CSI. “I still think rural market research is neglected,” says Higgs. A focus on brand experiences will also come to the fore. “People seem to be moving away from the pure accumulation or consumption of things and towards a desire to gain experiences. Communications, promotions and experiences that really engage and connect with consumers are a focus,” says Dr Crosswaite. Research will also become more about observing consumers and engaging with them in their world instead of asking them questions. “Technology will also allow us to let the consumer direct the research; social and networking groups online, mobile cameras and voice- or video recordings that can be uploaded in live time, all observed and analysed by a professional will provide an interesting and potentially a more detailed window on consumers’ lives,” says Dr Crosswaite. The focus on determining ROI and accountability looks like it’s here to stay. “Measurability is a major challenge for marketers,” says Keith Stevens, MD, Added Value. “However, the challenge is often that the elements that contribute to brand growth are often run and tracked by different departments in a business. The key challenge is to move from functional/silo tracking and measurement (vertical) to joined, horizontal tracking and measuring from the point of manufacture to the point of purchase.” He believes that smart brands will move away from long-term tracking, to consistent tracking of just one or two critical key performance indicators. “Especially given the current economic climate, there is a strong focus on the return on media and marketing investment. More and more CEOs are demanding that marketers justify the marketing investment they are making and as a result we are seeing the emergence of a range of short- as well as longer-term modelling techniques,” says Van Vuuren. Look out for new methodologies that layer consumer and market research with elements, such as financial data, to deliver ROI analyses, brand portfolio optimisations and so on. 

EXPERT OPINION by gaby de abreu

Tapping into teens... Teenagers: a breed all of their own with heavyweight spending power to tap into… if you can speak their language. This unique group of consumers can be one of the most fickle or most loyal – depending on how you relate to it… The teenage market is particularly complex. While being aspirational, it is driven largely by key individuals within the group who dictate what is ‘in’ and what is ‘out’. It is also one with numerous sub-divisions; depending on anything from age to music. Creating brands teenagers can relate to means you need to know exactly who you are speaking to – and can correspondingly tap into their paradoxical moods, reaching them in non-conventional ways to which they can relate. The starting point for any teenage marketing or branding activity is to know your brand: its personality, message and values. Understanding these will give you a much better idea as to which group of teenagers you will be able to tap into. It will also help you identify opportunities to adapt your message slightly for others in these segments. You will soon see if it works for both the sporty and the cool groups, for example, and how it can be tweaked or adjusted without losing its core identity. Nike is an example of a brand that has managed to do this; creating clothes and accessories that can be worn for sport and are equally as trendy when worn in malls or when ‘hanging out’. Environment is therefore vital when it comes to teenagers – looking specifically at how to create a relationship with them in their environment; knowing exactly where the teenagers you want to talk to spends most of their time – in movies or music shops, for example. Profiling is critical. You need to know about trends in this market and aspirations, and tap into these. This means you have to look at how they communicate with each other in their environments and ensure that your brand will work in these situations. MXit, the Internet and anything mobile are critical media

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By knowing your teenage market intimately – who they believe they are and, more importantly, the environments in which they place themselves, you can successfully tap into this high-powered consumer segment and potentially make them customers for life.

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that must complement your identity. Your brand must be as comfortable and relevant in these as they would be in the more traditional spaces of TV and billboards – and far more selective in the media it chooses to promote itself. The occasions when teenagers will interact with your brand are similarly critical. You have to maximise interaction with your brand in specific spaces, looking at how the occasion can enhance your brand messaging. If your brand of clothes or trainers appeals to 14-year-old boys who spend most of their time hanging out together in townhouse complexes with their cellphones and bikes then it’s important that your brand can supply them with cellphone games, wallpapers and ringtones that they will interact with when they’re by themselves and when they’re with their friends. You also have to tap into their fast-paced, highly stimulating world and Generation ‘Y’ characteristics – in other words, keep them entertained; highly stimulated; and wondering what you’re going to dish up next. The teenage market will always remain a paradox as it is simultaneously desperate to fit in and belong to something. The trick when it comes to branding then is for your brand to create the ‘something’ they want to belong to: aspirational yet exclusionary at the same time. In short, teenagers are looking for brands that essentially mirror themselves and their complexities; something they can relate to. By knowing your teenage market intimately – who they believe they are and, more importantly, the environments in which they place themselves, you can successfully tap into this high-powered consumer segment and potentially make them customers for life. 

Gaby De Abreu Creative director, The Switch Group (011) 706 9370

[email protected]

Vol 26 No. 9/10 I 2008 I MarketingMix 21

by benon czornij EXPERT OPINION

The first step to building your brand online: conceptualisation With the Internet providing access to an even deeper pool of knowledge and resources as well as businesses providing competitive services worldwide, it has become more vital than ever for a company to differentiate itself and its brand online. Recent advances, such as Web 2.0 have allowed for innovative and exciting ways for companies to engage their customers and attract new ones. But before any of this can happen, the company is required to create an innovative website concept. In July 2008, there were over 175 million websites, and with users becoming ever more Internet savvy, website conceptualisation is a vital part of the online branding process. What distinguishes a powerful piece of communication from the ubiquitous online clutter is a deep understanding of the digital environment, coupled with experience in the marketing field. This allows a brand to be effectively conceptualised and an effective digital campaign implemented. The idea behind a website often defines the user’s experience with the brand and, more importantly, sets it apart from the competition. The choice of concept will distinguish your brand from the competition. You need to be able to engage your target audience in a meaningful and rewarding manner, while simultaneously delivering your defined objectives. A question a marketer needs to ask in order to develop a successful website concept is: how best can a website serve my business objectives? For a marketer to find the best digital agency for a company’s needs, a thorough understanding of business objectives is vital. Only then will you be in a position to seek the right partner to facilitate your vision. Most companies are looking to either generate revenue from their website or to use it as a tool to drive a powerful brand experience to assist in their positioning. Web developers often specialise in key areas of technology. It is therefore vital to understand the company’s web strategy before approaching the various agencies to develop a successful conceptualisation of it. A digital agency that understands these objectives will help you to create a successful brand

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Creating an ‘ease-ofbrowsing’ impression relies on a thorough understanding of your market through key insights so you’re aware of what they are looking for.

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without embellishing it with unnecessary fluff. Steer clear of agencies that try to sell you concepts that aren’t really necessary or applicable to your brand’s fundamental conceptualisation. Other than being intimately aware of the

company’s target audience, it is important to encourage this audience to engage with the site. We call this human activity on a site ‘signposting’. It is the act of guiding your users to demonstrate certain behavior in order to achieve your objectives. Most companies understand that the content of the site needs to reflect the company or its objectives. However, to sustain human activity on the site, it needs to appear to be intuitive to browse. Creating an ‘ease-of-browsing’ impression relies on a thorough understanding of your market through key insights so you’re aware of what they are looking for. Should a user deviate from the defined path to attain other information, it should be a very simple procedure. This is called ‘usability’ and is one of the critical success factors of a website. For conceptualisation to work, the concept needs to be relevant, unexpected and tap into a universal emotion. A good example of this is the website of film services production company, Moonlighting (www.moonlighting.co.za). The creative and conceptual nature of this site appeals to its target audience of international ad agencies seeking to shoot their adverts in low-cost locations. The company feels its key distinction from its competitors is how it stages its productions, hence the visually captivating and engaging website. The concept was to venture ‘inside the mind’ of Moonlighting to explore its service offerings. If a marketer has a website but wants to add to it, conceptualisation will not really be a part of this process. However, if a pre-Web 2.0 site needs to be updated to incorporate new innovations in light of rapidly developing technological innovations, a redesign of the website may be required. This will allow the site to accommodate additional functionality, perhaps a video player, and engaging the user in a more dynamic and interesting manner. 

Benon Czornij Founder and technical director Hello Computer (021) 488 1380 [email protected]

EXPERT OPINION by jonty fisher

Power to the people: The new era of blogs and social network marketing In modern marketing, word of mouth is crucial to the success of your product or service. It’s accepted that 10 per cent of us influence the purchasing behaviour of the other 90 per cent – a scary thought when you consider the potential power that this 10 per cent wields for your brand. Enter the era of the ‘prosumer’. Blogs, social media and citizen journalism are all real-life examples of prosumers in action as consumers now take a dual role – producing and consuming information for themselves and countless other decision-makers. Bloggers and avid social networking users now hold the key to marketing success, providing their own, sometimes misguided, opinions on the way you are selling, marketing and advertising your brand. And it’s just the beginning…

Blogs Since the launch of Blogger in 1999, blogs have revolutionised the way we communicate. Blogs have reshaped the web, impacted politics, shaken up journalism and enabled millions of people to have a voice and connect with others. And while many marketers still discount the relevance of blogs, remember that the globe’s largest blog (from China) gets 50 million page views per month – that’s on par with our own Media24, which gets as many views across its whole network. But, in this foreboding world of citizen journalists, how do tech-savvy brands maximise their potential with these prosumers? How do companies go about protecting their reputation while ensuring their products are garnering positive praise from the world’s most influential bloggers? 1) Find the opinion leader The best way to find prosumers or prominent bloggers is through blog aggregators such as Technorati (http://technorati.com) or Afrigator (www.afrigator.com). Search the brand category, then the blog directory and, if possible, frequently used tags. 2) Connect with the blogger It’s now time to make contact. Don’t pretend to have followed the blog for months but rather state your intentions upfront – you feel that your brand is perfectly represented by the blog and would like to pursue some possible marketing options.

3) Sponsor the entrepreneur Rather than purchasing banner advertising on the site, why not interact with the blogger and provide them with some real assistance? Potentially offer to pay for a radical overhaul of the site or an upgrade of the existing technologies – this way you are able to forge a relationship with the blogger, while allowing for the natural integration of your brand into the blog. 4) Support a section If a site overhaul is out of your financial range, why not consider sponsoring a popular section or suggesting a new one? Your brand or product could provide the up-to-date World Cup results on a soccer site or you could provide prizes for the most regular commentators or best responses to a specific posting.

Social networks The world of social networks is a daunting one for marketers. At last count, MySpace.com had over 300 million users, Facebook boasted over 62 million active accounts and business networks such as Plaxo and LinkedIn featured over 15 million profiles each. Social networks hold huge opportunities for brands. The personal, interactive nature of social networks means that brands have the chance to present themselves to users in their own, personal space – allowing for a

more memorable and individual interaction. Added to this, brands can leverage the natural endorsements given through groups and personal associations with brands, almost functioning as free market research into their specific consumer set. But, how do you successfully leverage your brand within a social network? 1) Create a brand profile Register your own brand group as the ‘official’ offering on the relevant network. You can then make access to related groups and communities, inviting them to join this sanctioned brand group. 2) Continuous communication To ensure your community is constantly up to date and involved, make sure that relevant content is always available and a host of topics offered to allow users to interact personally with the brand. 3) Encourage collaboration Run a contest to devise a new campaign slogan or solicit entries for the next advertising spot – it will enable users to interact on a new level, while providing cost-effective creative straight from your target consumers! 4) Register your own network A very big idea but one that is sure to win you prosumer praise. Represent the interests of your consumers by starting a social network, for example, a fantasy league network for a sporting goods retailer. The people formerly known as the audience have transformed. Blogs and social networks have become vital tools in the arsenal of marketers worldwide and any brand looking to promote and protect itself should seriously consider the influence these resources have on consumers’ purchasing behaviour. The new era of prosumers is here and they’re brand savvy, marketing aware and prime for the taking. Ensure your brand harnesses the potential of these new ‘super consumers’ before you are left behind choking on the dust… 

Jonty Fisher Head of strategy, Traffic (011) 425 7111 [email protected]

Vol 26 No. 9/10 I 2008 I MarketingMix 23

by walter pike EXPERT OPINION

Why social media should be impacting your thinking South Africans are connected to social media. If you are connected to the Internet you are very likely to be participating in social media. Even right now if you have a cellphone in your pocket you’re connected to the Internet and social media. SA has one of the highest penetrations and usage of cellphones in the world. International ad servers rank it in the top three countries internationally as consumers of mobile advertising, just as once we were one of the top five most connected countries. If you are a marketer and you are ignoring social media you may already be a dinosaur. Perhaps not quite a dinosaur yet, but certainly perched precariously on the edge of the tar pit! Technology has created the ability for people to connect, any and all people and on a massive global scale. It has also allowed information to be accessed, accumulated, stored and shared in a manner we could never have dreamed would have been possible. What is more, we don’t even need to look for information – it finds us through sexy RSS feeds. The control of information has always been an important source of power. In the commercial world information about products and services has been carefully managed by the business itself. Brands have been built and positioned through advertising and carefully controlled PR spin for so long that we think that’s the way things are, that business owns its brand. The social web has effectively shifted the power in the transaction. The customer is now irrevocably in control; information, opinions and thoughts are now all in the public domain, people are sharing their opinions with not only their immediate circle but with the world. The most important market conversation now is not between the business and the customer, it is the conversation between your current customer and your prospective customer. The power in the transaction is being transferred to the market, which is talking among itself. The power of controlling what the market reads is gone, and will never be back. A.G. Lafley the chief executive of Proctor and Gamble recently commented on the necessity of marketers to realise that the power has moved out of the hands of brand management and is

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Social media also changes the way we coordinate, motivate and manage our staff, whom we can see as urls in an organisational cloud rather than a block on an organogram.

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way we must think about markets and how we think about marketing and branding, and how we engage in the market conversation instead of trying to manipulate or instruct it. Even the way we think about media must shift; the focus on getting eyeballs, viewers or readers is changing to seeking effective engagement. Opportunities to see is becoming a redundant concept as consumers actively opt out of advertising they don’t wish to view. Social media enables us to identify our target markets to the unit of one, the individual. This implies that the widespread use of mass media will continue to reduce in effectiveness not only because of the lack of trust consumers have in the process of brand manipulation, but also because products and services can be customised, personalised and delivered economically and profitably to market segments that were previously just too small to identify. Social media also changes the way we coordinate, motivate and manage our staff, whom we can see as urls in an organisational cloud rather than a block on an organogram. Check it out; your business probably has staff pages on Facebook, where your employees are hanging out. There are many who feel that social media is just another buzzword, a fad soon to fade away like many others have. Web 2.0 and Web 3.0 are not just technology, they are a response to a fundamental change in the way society connects, how information is understood and how perceptions are being formed. Adapting and changing to them means a complete rethink in the way we understand data, information and customers. It also means adjusting the way we coordinate and build businesses. It even forces a change in the way we measure organisational performance. For the real marketer this represents a huge opportunity to deliver value, because nothing else is going to cut it in the new marketing landscape. 

Walter Pike now with the consumer. “Consumers are beginning in a very real sense to own our brands and participate in their creation, we need to begin to learn to let go.” What this does is fundamentally change the

faculty head: Marketing and Advertising, AAA School of Advertising [email protected] (011) 781 2772

EXPERT OPINION by nici stathacopoulos

Engaging the customer and seeing the results Patrick Collister (the founder and publisher of The Big Won and editor of Directory – worth subscribing to) recently said ‘if you lack or proof that direct is the ugly sister of advertising, come to Cannes’. We are leading up to Christmas and are living in tumultuous times; global economic meltdowns, political instability and a fluctuating exchange rate make it harder to engage the consumer. After all, when there is little money left over for necessities – let alone luxuries– marketers need to become more focused on their consumer in innovative and engaging ways; seeking out those who will buy and those who will refer and, most importantly, those who will come back. A friend of mine recently bought her daughter a brand-new Mazda2. When I asked her why, she said they shopped around for a while, on and off line, but the reality was the service at the dealership was what engaged them; she and her daughter were treated like serious buyers, who might come back. My friend has never owned a Mazda before; but her daughter has the potential of buying at least five Mazdas in her life time to suit her changing lifestyle. I am selling my house. I have been for four months and signed a sole mandate: I was absorbed by the sales speak of the agent and its marketing promises. It lived up to its marketing promise but not to its service promises. In these trying times, one would think it would engage me and update me and keep me close so that it could sell my house and I would refer it to friends. To the MD’s credit (which is why I am not naming the company), when I e-mailed my agent and copied the MD out of immense frustration, he called me within minutes to apologise – no excuses. When she called me all she had was more excuses – how can you excuse bad service? The mandate has expired and the other agents in the area have swooped – three have accepted to sell my home with no mandate and with my commission structure request. It’s not about the sale, but about the service. Let’s see if one of them can show me estate agents are about service! No matter how good your marketing campaign

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Traditional campaigns will drive shoppers into stores, but they have less money than they had last year; rising interest rates and inflation mean their disposable income is lower than ever.

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is, your back-end needs to work. A client of ours recently put a major campaign on hold as the IT infrastructure is not ready. Frustrated as we all are, we know this is the right decision; going to market knowing your prospect will be inconvenienced the moment they call to take up the offer will damage the brand, and in the highly competitive arena it plays in, the one thing it has is its brand’s reputation. A great one-to-one campaign cannot sell an inferior product. Consumers are too savvy these

days to be taken in by the creative speak alone. They do research and look carefully into what else is on offer and then they spend their money. So no matter what you think, make sure your offering is the best and make sure your campaign engages. And to quote Bob Thacker from Office Max in the USA, ‘if you don’t have big bucks, you had better have big ideas!’ I was recently scanning through some marketing books for information, and came across a number of case studies which detailed Lehmann Brothers and Merrill Lynch – it does worry me when I read how enormously successful their efforts were, to see their downturn now. It highlights the fact that marketers need to ensure their efforts are sustainable (and yes, I understand the global effects that have caused the downturn of these companies, but if marketers want to continue justifying their existence to the bottom line and to their boards, they need to ensure their efforts are long term!) Finally, a note on retailers. Having recently attended the RAC retail conference, I was enthused to see how companies such as Office Max and J C Penney still use catalogues and segmented mail campaigns to retain their most valuable and most growable customers. Christmas is around the corner – where will our retailers concentrate their marketing budgets? Traditional campaigns will drive shoppers into stores, but they have less money than they had last year; rising interest rates and inflation mean their disposable income is lower than ever. Yet in spite of this, there are still many consumers who won’t leave a store because a product is slightly more expensive than that of the one down the road; if the service is excellent and the range suitable, they will shop with you as they have done in the past few years. They need to buy gifts and if they have been loyal to you over the years, your Christmas catalogue will entice them. Now it’s up to you to keep them there, and keep them coming back. 

Nici Stathacopoulos managing partner, proximity#ttp (011) 447 7093

[email protected]

Vol 26 No. 9/10 I 2008 I MarketingMix 25

CONTENT CHAMPIONS

Content champions

2008 Marketing Mix asked a few media experts to give us their pick of SA’s best media based on their content mix. The experts in question are Trish Guilford, Associate Media Director, The MediaShop JHB; Nazeer Suliman, MD, Universal McCann; and Ryan Williams, group MD, NotaBene. Marketing Mix also made its selections.

Nazeer: Olympics coverage on SuperSport.

The criteria: the contributors were asked to state which media in each category has the best content mix relative to its target audience or reader. Audience ratings and circulation figures were therefore not considered.

Marketing Mix: SuperSport. Self-explanatory.

While this is not a scientific benchmark, the results of this survey indicate which media have been successful in creating content that meets the needs and interests of its audience. These are the media that are top of mind for media planners.

Trish: SA Sports Illustrated. This magazine covers all sports and with its Afrikaans edition, offers a cross over for male and female sports fanatics. It also has the opportunity to carry a front cover which is pertinent to that specific month’s sporting highlight which is always a big draw card for ensuring sales. Within the Touchline publishing group, this magazine has the opportunity of getting international material but has a good balance of local content which is vital to ensuring the status quo.

The opinions expressed herein are not the opinions of Marketing Mix magazine. Any regional skewing of results is due to the fact that contributors are Johannesburg based, and this was purely coincidental.

TV Best reality content Trish: SA’s Biggest Loser. Appearing on e.tv and an inspiration to a number of South Africans – a good choice and a local production to boot. Nazeer: Zola 7. A local and tremendously successful reality show with a recipe that empowers and uplifts! Ryan: American Idol. This is easily the most successful reality property globally in terms of viewership, content spinoffs and multiple media platform tie-ins. Marketing Mix: SA’s Biggest Loser. Locally produced and focused on a major issue: obesity. This programme gets people thinking about healthier lifestyles, while entertaining them.

Ryan: SuperSport. Broadest range of sporting events and the only full coverage of international sports. The rights win for certain local soccer properties is a coup.

Magazines Best sports magazine

Nazeer: SA Sports Illustrated. Still the only unrivalled general interest sport magazine in SA. Great depth and coverage of mainstream sport.

Best sports content

Ryan: SA Sports Illustrated. Broadest coverage of sports in SA. Although some other sports magazines have higher circulations, my view is that SA Sports Illustrated deserves the award because of the breadth of sporting content it delivers, at a consistent level of quality.

Trish: SuperSport. For any sports fanatic, SuperSport offers so much that even avid sports watchers are torn between stations. Covering both local and international sports, and with the new DStv Compact offering, it does cater for all.

Marketing Mix: SA Sports Illustrated. For covering not only the favourite local sports, but also a mix of specialist sport interests. This magazine is a cover-to-cover read for the sports enthusiast since it offers investigative features as well as news snippets and entertaining reads.

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CONTENT CHAMPIONS

Best women/family interest magazine Trish: Women & Home and Real Simple. Two wonderful magazines that cover women’s interests as well as home topics – so two magazine categories rolled into one.

Marketing Mix: Men’s Health. Perfectly aligned to the guys who subscribe to or purchase it. While women are not officially the target market, it attracts a fair number of female readers who use it for health tips.

Best general interest magazine Nazeer: Real Simple. A clean read with pragmatic advice. An ‘organic’ option to the countless other ‘artificially fertilised’ magazines with extra additives. Ryan: Shape. Consistently good coverage of female lifestyle, while encouraging a healthier and more balanced approach to living (especially as it pertains to content around a broader look at a healthier woman and does not promote artificial values for what normal women can aspire to and also places value on other aspects beyond relationships, fashion and ‘size-zero’ physiques). Marketing Mix: Move! Because it really has hit the target market and has found itself a niche serving a market that has otherwise been ignored. Real Simple has also found its own niche; excellent format, with short articles and bitesized chunks of valuable information. We love the green issues.

Best men’s magazine Trish: Best Life. A magazine that has broadened the men’s magazine category without cannabalising any specific title too much.

Trish: You/Huisgenoot/Drum. One has to take all three into consideration as together they undoubtedly offer the best reach into the local market. The content may not be everybody’s cup of tea, and if you ask around most people say they don’t read the magazines – but we all know if you want a response to a competition these three magazines come out tops every time! Nazeer: Drum. An improved formula and mix with substantial content Ryan: Popular Mechanics. Although circulation is small and has been reasonably flat over time, the content is unique for locally published titles, and of a high quality compared to similar international titles. This content is also important because of the broader issues in SA with regard to science and technology development – titles like Popular Mechanics serve a crucial role in stimulating interest in tomorrow’s scientists. Marketing Mix: Drum. An iconic magazine that has clawed back its iconic status. And You, a great general read, addressing real issues. It doesn’t need cover mounts to sell, cuts across all LSMs and offers a wide mix of content from recipes to affordable fashion trends as well as celeb news, advice, kid’s content, and motoring reviews. Even intellectuals sneak a peek at this one!

Best Afrikaans magazine Nazeer: FHM. For pushing the skirt up higher. A true guy’s magazine Ryan: FHM. Although the content is decidedly ‘laddish’, FHM consistently delivers content that appeals to its sector of male audiences, which is evidenced by its strong circulation performance since its launch. Unlike some major competitors, the content retains a degree of freshness in every issue, despite being based on common (and static) editorial pillars over time.

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Trish: De Kat. An outstanding upmarket Afrikaans magazine with fabulous editorial and layout. It doesn’t offer a huge reach, however, it is a very glamorous magazine of very high standards that many products should be associating themselves with. Nazeer: Visi. Still tops – amazing editorial and design. Ryan: Tuis. In a competitive home décor sector (over the past five years), Tuis has carved out a strong niche in this market by delivering content that reframes the standard approach in this sector, that is more ‘everyman’ solutions to home décor and investment. Marketing Mix: Visi. Such a beautiful magazine! People pick it up for its aesthetic value and very valuable niched content.

CONTENT CHAMPIONS

Best youth magazine Trish: National Geographic Kids. A fabulous magazine that does a great job from an educational perspective while making it fun and interesting without kids realising that they are learning something. Also a great magazine for projects. Nazeer: None. Not SL, not Y, not Hype. We wait expectantly. Ryan: No clear preference as so many titles in this market have closed down. Marketing Mix: seventeen. Aside from content that is perfectly targeted to the needs and interests of the average 17 year old girl, it also boasts a website that offers all kinds of fun and relevant content and applications, as well as major interactivity with the seventeen brand. Plus, the seventeen Urban Scouts are the ideal link between the real world of the 17 year old and this magazine, allowing seventeen to stay on top of its game.

Newspapers Best weekly newspaper Trish: Sunday Times. A good all-rounder catering for the different reading and information requirements of the South African population. Nazeer: The Mail & Guardian. No sacred cows and no holy cows. A truly independent weekly with foresight, rather than hindsight – the M&G uncovers next week’s stories rather than reporting on the week that was. Ryan: Sunday Times. Continues to deliver content that captivates the nation. Its success could be measured by the scale of references made to Sunday Times articles in other media and media stables. Although the content has not significantly changed over time it is still a winning formula. Marketing Mix: Mail & Guardian. Intellectual reading, with a mix of politics and scandal, business news, and so on. Plus, a great website, which offers up-to-date reporting.

Ryan: Business Day. Remains a definitive daily business content resource and is generally the default resource for South African businesses. Marketing Mix: Daily Sun, for obvious reasons. And The Times, targets the younger reader with a quick roundup of all the daily news one needs to know. Plus, the newspaper refers these readers to its website which boasts rich multimedia that appeals to the title’s readers. It’s just perfect for today’s generation.

Best weekend newspaper: Trish: Sunday Independent. The environment is not as cluttered as some of the other weekend papers, the editorial makes for interesting reading and whilst the print order and readership is not nearly that of the well used weekend newspapers, it offers an interesting market in the three main metrolpolitan areas: Gauteng, Western Cape and Kwa-Zulu Natal. Ryan: Sunday Times. Nazeer: The Weekender. Great paper stock (and hence, repro quality) and great editorial as well as an amazing travel section to see you through those lazy weekend moments. Marketing Mix: The Weekender. For the businessman who doesn’t want to do business on the weekend but wants to keep in touch with all the things that are relevant to him and his high-flying life.

Best newspaper supplement Trish: Sunday Times Lifestyle. For a wide variety of editorial which, as with the main body, caters for different reading and info requirements.

Best daily newspaper Trish: Daily Sun. The success story of the decade. It continues to grow its readership in what most said was a very hard market to reach. Its articles are topical and the reporting is unbiased. Nazeer: The Times. Provides fresh news essentials in quick, digestible bites. A great mix of hard news, opinion, sport, jobs and infotainment.

Nazeer: Wanted Magazine. For proving that opulence need not be garish. Brilliant fashion photography, editorial and a great quality read. Definitely a wanted read. Ryan: No preference in this sector. supplement content across titles tend to be of similar quality. Although Business Report is carried by other titles it shouldn’t be viewed as a supplement. Marketing Mix: Business Day’s Wanted and Sunday Times Lifestyle. Both of these titles address their target readers and address their needs and interests with content that is stimulating.

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CONTENT CHAMPIONS

Radio Best national station

Online Best website

Trish: 5FM. The station understands its broad target market and its programme line-up caters for it. Over the years the station has morphed and adjusted accordingly, sometimes it has gone on a tangent in the wrong direction; however, it has managed to correct this and has continued to offer a good mix of DJs and content.

Trish: www.24.com. This site has everything you need and is easy to navigate. It also has great maps and directions for those without GPRS devices!

Nazeer: Metro FM, for being a great alternative to 5FM. Ryan: SAFM. Continues to deliver very high-quality content. Business and industry commentary is the strongest across all national radio broadcasters. Marketing Mix: 5FM. This station is very popular with its target audiences, precisely because it offers the radio content that appeals to them. DJs have a very loyal following, and the station also aligns itself to key events (such as the Virgin Fest, taking place later this year). Its website is also ideally targeted to listeners and offers great interactivity.

Nazeer: Google as a landing page period. For providing a map and journey to anywhere. Ryan: News24. One of the largest websites for local traffic, but more importantly starting to steal a significant share of younger audience who are drifting away from newsprint as an access point to news content. Syndication of this content across platforms is evidence of the quality (although some content is derived from the Reuters network). Marketing Mix: www.thetimes.co.za. For multimedia content that really speaks to younger readers. Plus, the website works in tandem with the newspaper (the latter refers readers to the former seamlessly).

Best media newcomer

Trish: YFM. A fabulous youth station that caters for those young at heart too! It’s a station that has become a culture and a lifestyle, and it’s one station that has successfully broadened its offerings with a magazine, a great website and now the Y-academy to scout for new talent.

Trish: Blaque Magazine. An upmarket glossy magazine targeting the black urban male in the top LSM groups. This magazine is welcomed by readers as well as advertisers, who now have an opportunity to reach this market with a good quality publication. A nice competitor to Best Life and Men’s Health too (competition is always good!). I just hope it gets the advertising support it deserves.

Nazeer: Kaya FM. For interesting radio formats, cleverly themed music genre months, brave reality concepts and good music.

Nazeer: Destiny Magazine. A complete and intelligent business, home, décor and fashion digest for the successful and motivated woman.

Ryan: Highveld Stereo. Although heavily dependant on a core group of presenters, with no clear succession plans, this station delivers loyalty in a highly competitive Gauteng market. Its social initiatives combined with innovative approach to radio content means that this is still the strongest content contender in the regional radio market. Special mention should be made of 702 for a recent resurgence in popularity – this could be reflective of a shift in audience preference among early adopters/opinion formers in the Gauteng market.

Ryan: No preference for the past 12 months.

Best regional station

Marketing Mix: East Coast Radio for managing to cover the diverse populations of KZN and doing it so well. And Highveld Stereo for offering Gauteng listeners something unique and relevant. The loyalty of its listeners is a significant indicator of this. Both these stations have managed to share content across their websites and draw listeners with podcasts, competitions, blogs and more.

30 MarketingMix I Vol 26 No. 9/10 I 2008

Marketing Mix: www.thechewmagazine.com (online magazine). Launched in August 2008, it promotes local and international fashion, design and styling. For the trend setters of Generations X and Y, this is the ideal virtual magazine; downloaded for free, it is an uber cool read.

A few comments from the editor: In general, the sports media appear to be doing a very good job with their content offerings (and perhaps, given the passion that fans have for their sport of choice, this is inevitable). It is interesting to see that in spite of new niche sport interest magazine titles being launched (which supposedly offer a smaller, though far more engaged audience, and very niched content), the judges did not select any of these. This begs the question: have the titles marketed themselves strongly enough to create familiarity with the media planners? Or, is it a matter of the clients chasing bigger audience numbers instead of a more engaged, smaller readership? In the youth magazine category, it seems that the closure of some of the youth titles has eroded the confidence in the media in this sector. It will be interesting to see what the youth titles, such as seventeen, 2 Hip2B and National Geographic Kids, do to reinvigorate their audience figures, their content offering and advertiser/media planner confidence in them. 

The 1st Luxury Marketing Summit 12 & 13 November 08 Sandton Sun Hotel, Johannesburg Understanding how to reach and influence premium consumers could help you take your brand into a premium realm. Keynote speaker: Greg Furman, Chairman of the Luxury Marketing Council of the USA (www.luxurycouncil.com).

Today’s luxury market: The luxury ‘best customer’, the luxury marketer: trends, issues and best marketing practices Greg Furman (chairman of Luxury Marketing Council) explains how the luxury market’s changing, and how to win greater share of wallet with the premium customer.

Luxury stats Neil Higgs, director: Innovation and Development, TNS Research Surveys will overview all the primary sources of income and trend information concerning the rich and the aspirational rich.

Luxury and the SA Market: The role of premiumisation and premium brands Erna George, from the Added Value group, discusses global trends driving luxury and premium, as well as the difference between the elitism of luxury and the wider accessibility of premium.

The Luxury mindset Grant Anderson, from Investment Cars (and Armormax) will explore the ‘luxury mindset’, and how to developed effective communication strategies for this market.

Luxury media – an expert appraisal Millward Brown experts share insights gained through their research and tracking of top brands.

Marketing to luxury brands – defining the who, how and why Kim Aardweg, manager partner, Brand EQ, defines the luxury market and discusses how to market to them.

The Planet Fitness Platinum case study Jonathan Winstral, Planet Fitness, talks us through the challenges of setting up a premium health gym concept.

The power of influence and PR Utilising sophisticated PR techniques to create a premium ambience and to influence opinion leaders. Speaker to be confirmed.

The luxury marketing mix Greg Furman discusses innovative collaborations among luxury brands.

Luxury communication and branding Anina Malherbe, founder of Vivid Luxury Marketing, discusses the best ways to achieve luxury brand positioning and communications.

One to one marketing – getting personal with premium consumers Mark Angus, CEO, Innoviate, explains how to utilise smart digital tools to enhance direct marketing techniques and influence the top earners.

Communicating with young affluents Andrea Kraushaar and Ane Bothma-Landman share insights from the Youth Dynamix research.

Determining the right formula for luxury goods: maximising desirability, while restricting accessibility Gaby De Abreu, The Switch Group

Living the good lifestyle Former Miss South Africa, Claudia Henkel, managing editor of Morafic Wealth, a recently launched premium lifestyle title, will talk about selecting content for premium readers.

Pricing: A two day workshop R6 750 plus VAT per delegate. R6 250 plus VAT per delegate for three or more delegates.

Enquiries: Daisy Mulenga, [email protected] (011) 234 7008 Sponsorships available: Robyn Richen, [email protected] (011) 234 7008

by jonathan gluckman EXPERT OPINION

Online retailing:

lessons to learn The retail industry in SA faced a gloomy start to 2008, with Stats SA’s figures showing a retail growth rate of only 1.5 per cent year on year leading up to the traditional holiday boom that turned out to be more of a damp cracker. Our online retailers, however, had a joyous time up to the end of the last year. According to tech researchers World Wide Worx, more than 20 per cent of 2007’s online shopping was done over the holiday period, and they predict it will likely grow. This is an urgent heads-up to the local retail industry that it needs to understand more than the most basic idea of Web retail as an ‘online shop-front’. It’s also great news for the increasingly complicated network of online businesses operating as service providers to online retailers – an entire industry that most traditional retailers have very little knowledge of. This world of ‘search engines’, ‘price comparison sites’, ‘retail aggregators’, ‘search affiliates’ and other arcane organisations is staggeringly massive. Globally, says JPMorgan, revenues for the worldwide search industry will hit US$30.5 billion this year, up from US$26.2 billion last year, with expectations of an annual growth rate of 28 per cent over the next four years, hitting $60 billion by 2011. Many of SA’s better online retailers understand the mutualism between them and the ‘online search’ crowd – go to Jump.co.za or PriceCheck.co.za and see how they allow you to search for items at the best prices across several leading online retailers. At the same time, most of our traditional retailers are still trying to work out their own online shopping plans, never mind how they can plug into the crazy new ecosystem of the online space. It is critical that retailers start to build an understanding of the parallel online services industry. To succeed online requires new partnerships with web marketing specialists, especially those in the search space. In the US, a whole industry has grown up around ‘Black Friday’ – the first shopping day after the Thanksgiving weekend in the run-up to the Christmas/Hanukah/what-have-you present and entertainment frenzy, characterised by gridlocked traffic, chock-a-block shopping malls

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“

Luckily, we don’t have to learn from scratch – we can pick up the lessons that US and European retailers have learned so painfully over the past few years.

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and slathers of special offers. Compared to 2006, last year saw traffic to sites advertising Black Friday specials increasing earlier than ever before, and peaking 52 per cent higher than previously (according to research company Hitwise). Searches on the term ‘black friday ads’ are up 91 per cent from the previous year, and have increased a jaw-dropping 954 per cent since 2005. Compare this explosive growth in search traffic on independent ‘aggregator’ sites to the big retailers’ own websites, which only increased by a moderate 13 per cent over 2006 (Hitwise US Retail 100 Index). Whether retailers like it or

not, more and more people are hitting the aggregator sites rather than the ‘official’ sites. The big US retailers have mixed feelings about the ‘Black Friday’ advertising sites, which allow shoppers to cherry pick the best specials, and also often leak specials that the retailer was hoping to announce when it suited it. But in general they understand that it’s better to capitalise off third-party search systems than attempt the impossibility of muzzling them. There are now three major ways for online retail customers to find what they want – go to a retailer’s site directly, go to an aggregator/price comparison site, or simply use a search engine such as Google. It’s a tricky business, and online retailers are still coming to grips with how to maximise each online customer acquisition method – it’s complicated, subtle and changes constantly. Retailers in SA are facing a massive learning curve – it’s not enough to spend millions on an online shop front, but ignore how consumers are increasingly using the web. Whether retailers like it or not, web-savvy consumers are very aware of the power of online search, and how it allows them to find what they want at the best price. Retail giants need to leverage off the sometimes considerable expertise, energy and effort of thirdparty sites and affiliates, but without compromising their brands and marketing strategies. Retailers in this country are taking a drubbing, with spiralling food prices and interest rate hikes dampening consumer spending. Online retailers in SA are in the pound seats of growth – even if total retail spend is not increasing rapidly, online spend is becoming an ever bigger slice of the pie. And this is despite the fact that most retailers are barely off the first page when it comes to building an online sales channel. Luckily, we don’t have to learn from scratch – we can pick up the lessons that US and European retailers have learned so painfully over the past few years. 

Jonathan Gluckman Head, Business Development Clicks2customers (021) 442 5044 [email protected]

TOWNSHIP MARKETING

Effective marketing in the townships workshop Townships are dynamic, and no two townships are the same. As Alistair Duff, director of Strategic Development, McCann Worldgroup South Africa, explains, townships cannot all be marketed to as a homogeneous market. Duff’s research into the townships of Soweto, Alexandra and Orange Farm has illustrated that there is a distinct mindset that differentiates consumers across these townships. He urges marketers to realise the fortune that is at the bottom of the pyramid. “The Black Diamond is much smaller than we think,” he says, encouraging marketers and brands to look beyond these definitions. Mutually beneficial marketing is key. Beatrice Khubeka, MD, African Response, says there is a growing trend of black people with increased spending power, and here, image is important. However, as much as there is spending power, inflation and credit crunches have hit the township market hard. Shopping decisions are being made more carefully, with trends now towards buying in bulk or switching to lower price alternatives (maize meal instead of rice or cordials instead of ready-to-drink fruit juices). Brad Aigner, MD, Freshly Ground Insights, has found that the bulk buying in township malls is impacting (albeit marginally) on vendors and spaza shops. He stresses the need for brands entering this market to make long-term commitments to community involvement and upliftment. Township malls are perceived to be cheaper. Marketers need to be aware of differentiation of prices between the urban and township malls, and make sure that they don’t create perceptions of disparity between what they offer suburban consumers and what they offer rural and township consumers. Frans Van Der Colff, Pick n Pay, explains how the group got involved in local township communities with great success. At store openings, green shopping bags are distributed to shoppers, while engagement in activities that help children and pensioners creates positive word of mouth. Locals are hired to manage and run the stores in the townships. The stores interact with local hawkers and supply them with hawker packs. They sell bread outside their stores in kiosks run by local vendors at a reduced price. This allows the Pick n Pay stores to be perceived

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as helping the community instead of hampering the efforts of the local vendors. Outlets are always strategically situated near or at the taxi ranks, and in the suburbs to make it easy for people to shop there. Then, it’s about stocking quality products and specific product categories that are consumed by the local market (tripe, for example).

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Government has set a budget of R7.7 billion for the taxi re-cap programme, which seeks to improve safety and formalise the taxi industry.

Geraldine Mitchley from the Knowledge Factory, believes that internal data (shopper spending habits, for example) are a rich source of information, which can be augmented with external sources of marketing intelligence to better understand customer needs. Geographical analysis is valuable and allows for linking together of insights to get a more comprehensive picture (tracking property prices, where people shop, and so on). Combined with demographic data, this sort of analysis allows one to identify nuances that tie sub-clusters together and differentiate them from one another. Gill Mkhasibe of the Alternative Consultancy, says that over the past few years, the growth of malls and shopping centres in the townships has brought top-end brands into the townships. However, she is concerned that the malls may not be the investment they are made out to be, since poverty and unemployment leave many township dwellers without the disposable income needed to shop at the malls. Mkhasibe says that there is growth in immigrant traders (Pakistani, Bangladeshi, Indian and Somali) who tend to settle in pockets. A number of them are taking over the old general dealer stores, and Mkhasibe says they are very entrepreneurial. The township traders offer distribution in every street in every township, and could therefore help dominant brands fight against the ‘new guys’ that are now in the major supermarkets. However, the tough working conditions and low literacy levels of these traders is a challenge for marketers. Your

”

TOWNSHIP MARKETING

products need to be differentiated and need to market themselves, says Mkhasibe. Understand that perceived value is more important than price. It’s not about how much money people have, it’s about the perceived value in the offer. Jacques du Preez, MD, Provantage, estimates that about 55 per cent of our population (25 million people) resides in a township. The townships are being upgraded and there is formalisation of trade. There is more disposable income than ever before, and there is also increased mobility. More than 20 million South Africans commute through about 60-plus hubs across SA. Across the provinces taxis dominate as the major mode of transport, (with more than 15 million people depending on them). Taxi, bus and train commuters spend more than R30 billion, so there is tremendous spending power. Government has set a budget of R7.7 billion for the taxi re-cap programme, which seeks to improve safety and formalise the taxi industry. Commuter environments are being developed and upgraded, but marketers cannot just carry out campaigns here. Traditional media categories are becoming more cluttered and more and more brands are turning to out-of-home and outdoor media, globally. This is because these media cannot be zoned or tuned out. And given that the average commuter spends between 30 and 60 minutes a day in a taxi, bus or train, this is a no brainer. But Du Preez points out that only 5.5 per cent of marketing spend is allocated to transit media. He believes this is because there is a lack of understanding of these media platforms and the transit/commuter markets. Linette Imrie, Pepper Portfolio manager at Primedia Lifestyle, says that in planning a township marketing communication, language and culture should be a priority. This will impact not only how you communicate, but also what appeals to the market. For example, in urban activations, giving away a car in a competition is viable. But in some of the rural townships, a cow or a goat is a far more valuable prize. Make use of local suppliers, educate and invest in them, and exploit their creativity. Turn taxi drivers into tour operators and informal traders into retailers (especially since the shopping malls have encroached on their markets). Politics are important: the local councillor is not always respected by the community, so keep your ear on the ground. Due to a combination of low literacy rates and an increased ‘take me back to my roots’ phenomenon, it’s incredibly important to advertise in a combination of languages. Service

is an issue that retailers must address, as is the product offering – some retailers only stock products meant for the Western market. Mannequins and shop fronts are predominantly white, so customers do not relate to them. Tumisang Moatshe, Youth Strategy Consultant, Youth Dynamix, has found that the youth in the townships are largely LSM 5-7, with a low disposable income. They tend to spend more on instant consumables, including snacks, entertainment, connectivity (cellphone), and fashion and brands that are linked to image and peer groups. Average spend on weekends is around R250-R300. They are not saving at all (they spend conspicuously), so there is room for banking groups to give financial advice. These are early adopters of electronics, and will give their parents advice on electronic goods and tech gadgets. These youth are uber-indulged and uberstimulated; they want a concentrated life. So marketers need to offer them something out of the ordinary (experiences that cannot be bought). And while they are highly aware of their consumer rights, they are not prepared to assume the committed responsibilities.

“

Service is an issue that retailers must address, as is the product offering – some retailers only stock products meant for the Western market.

Aloice Lombard, project manager for Maponya Mall, shared her learnings of the township markets through her experience in launching and marketing the mall Consumer categorisation was complicated. Each consumer sub-group has a specific state of mind, and this was a more relevant segmentation tool than any other. Lombard identified three main groups of consumers: The traditional Soweto consumer, who is cash strapped (LSM 2-5); trading hours need to take into account that they leave the township during the day to work, so stores need to stay open later to accommodate this. Younger, more demanding Soweto consumers: they know what they want, where to get it, and will abandon you if you don’t measure up and deliver. It’s important to get their attention from the start. Afropolitans: These are trendsetters; they are African but also cosmopolitan. They are future focused and have money to spend. Show your commitment to this market, and don’t let it down. Keep your business models flexible and don’t wait for them to fit into your model, says Lombard. 

”

Vol 26 No. 9/10 I 2008 I MarketingMix 35

SERVICES SETA

Professionalising marketing On 11 June 2008, the South African Qualifications Authority (SAQA) formally registered two professional designations for marketers: the Chartered Marketer (SA) national certificate (which until this year was without formal backing after the demise of the Marketing Federation of South Africa, the MFSA), and the Marketing Practitioner (SA). These designations are recognised by the 17 countries in Europe which form part of the EMC (the European Marketing Confederation), and will soon be recognised in Australia too. In reviving the CM(SA) designation, and offering the MP(SA) designation, the Services

36 MarketingMix I Vol 26 No. 9/10 I 2008

SETA hopes to bring much needed credibility to the marketing profession. “Chartered Marketers should be confident to hold senior marketing positions in organisations, or lead small businesses, being thoroughly tuned into satisfying client needs and delighting customers. I anticipate that the value of the currency will grow, with a widening remuneration gap developing between non-designated marketers and chartered marketers. They are already instantly recognised by fellow professionals as having achieved a high degree of mastery,” says Colin Hudson, current Chartered Marketer (SA).

The Chartered Marketer (SA) Since January this year, the Services SETA has been working to update the current list of registered CMs, and is now also signing up new incumbents. “There are about 250 South African Chartered Marketers who have retained their designations, and another 60 are going through the process that will ultimately lead to a board exam and an evaluation by peers, as is common to most senior professional designations. There will be a natural limit – probably about 500, but the potential for marketers at middle management level to achieve MPSA must be enormous – probably up to 10 000,” says Hudson.

SERVICES SETA

Governance, Small Business or Entrepreneur or Consultant, or Academic). This will impact on the number of points that must be obtained in each category of CPD. New CMs must submit a CPD report for evaluation, and if they have accumulated sufficient points, they are called for interviews and board exams. If these are passed successfully, they are awarded the designation of Chartered Marketer. Existing CMs, on the other hand, are not expected to pass exams or interviews – if their CPD portfolio proves that they have accumulated sufficient points, they retain their status. The chartered marketer is one who has a minimum of 10 years’ line– and managementlevel marketing experience, and a proven track record of practical marketing mastery at strategic level. Typical positions include: chief marketing officer; marketing director/manager; CEO; sales director/manager, business owner/entrepreneur.

The Marketing Practitioner (SA)

Colin Hudson, current Chartered Marketer (SA)

Chartered Marketers that initially qualified through the Institute of Marketing Management or the Marketing Federation of South Africa are required to re-register by signing the code of conduct and submitting it to the Services SETA. Also, they must participate in compulsory Continuous Professional Development (CPD)

activities, both unstructured, and registered. They are then required to complete and submit the CPD record card by 31 October 2008, for evaluation. They are expected to have accumulated 50 CPD points over the 12 months leading up to this deadline, and should also have selected the context in which they will operate (ie Corporate or

The National Qualifications Framework (NQF): This Framework is designed to create a single, integrated, national education and training framework for the whole nation. It hopes to make it easier for learners to enter the education and training system, as well as to progress within the system. Through these processes, the Framework also improves the quality of education and training in South Africa. This is essentially a quality assurance system, given that it sets out the standards and qualifications that are required to uplift education and training in South Africa.

The marketing practitioner is someone who has a minimum of three years’ experience in marketing, preferably at middle management level with supervisory experience. They have a proven track record of practical marketing competence at tactical/operational level. Typical positions include: brand manager; product manager; field manager; account executive; sales representative; marketing assistant; business owner/entrepreneur. They are required to follow the same protocols and fulfil the same criteria as the CM(SA) candidates (although they are not required to write a Board Exam). “The Marketing Practitioner designation should be viewed as a stepping stone in a marketer’s career development. Typically, a marketer with an undergraduate qualification and a minimum of three years experience in marketing management would be eligible to embark on the MPSA programme. Chartered Marketers recognise Marketing Practitioners as people taking their professional marketing career development seriously. In comparison, one would expect a Chartered Marketer to have had at least 10 years of marketing experience at a senior level,” says Hudson. To qualify to enter the CM(SA) or MP(SA) programme:  Competence needs to be demonstrated by the qualifying individual at different stages of their personal and professional development. The individual needs to:  Be deemed competent against the standards described in the integrated NQF 7 or NQF 5 qualification;

Vol 26 No. 9/10 I 2008 I MarketingMix 37

SERVICES SETA

Demonstrate vocational competence against the criteria defined by the Services SETA;  Maintain the currency of their professional competence through participating in a programme of continuous professional development (CPD), as determined by the profession;  Subscribe to a code of conduct that is monitored and co-ordinated by the profession or professional body serving that profession;  Retain membership of the professional body responsible for the enforcement of the code of conduct;  Gain practical working experience through working experience or participation in an internship. Competence can be measured by describing the types of activities such an individual will need to have participated in whilst on-the-job; and  Act in a way that places the interests of the public s/he serves above his/her own interests. Furthermore, in order to qualify for the CM(SA) or MP(SA) programme you must also demonstrate that you are currently able to:  Coach other marketers in key aspects of marketing  Conduct research and apply relevant research outcomes  Develop and implement marketing plans, strategies and campaigns  Develop and optimize marketing budgets  Integrate other business unit objectives to the marketing objectives  Communicate with stakeholders  Aspire to the principles of marketing  Integrate all other disciplines across the different fields of marketing. 

The benefits of qualifying as a Chartered Marketer (CM): Thebe Ikalafeng, from the Brand Leadership Group, says that the CM designation is the highest endorsement of aptitude, skill and experience for the marketing professional. “It signals that you are the best in your field, and that you have all the right qualifications and experience,” he says. Chartered marketers will gain the following key benefits as a result of the CM qualification: 







 



Membership of the professional body, which means contributing to the growth of the marketing profession as a whole Improved performance in one’s current role, since the continuous re-training ensures high quality skills and contributions, as well as contributions in the form of social responsibility Professional development process sharpens awareness of the need for additional knowledge and skills too Enhanced career prospects that arise as a result of greater expertise. In addition, CPD can help you identify gaps in your present knowledge or skills which may not be immediately relevant in your present role, but which limit the range of opportunities, which you could consider in future. Increased learning capacity, as a result of reflection on learning, and knowledge application Greater confidence and self-esteem Organisational benefits, since one’s company also benefits from the added value of an increasingly effective contribution on its board Social benefits, because CPD contributes to the professional development of learners.

Achieving CM(SA) or MP(SA) status The individual is required to register with the Services SETA (by signing a code of conduct) and complete the initial workshop. During the workshop the required competences will be unpacked in order to guide you in providing the required evidence. At the end of the first workshop your portfolio will be submitted for assessment. All candidates must undertake CPD activities over the next few weeks, and they must keep a Portfolio of Evidence (PoE) of the documents and materials to support these activities. An interim workshop will serve to guide the portfolio work, and gives the candidate an opportunity to discuss problems and issues with peers and supervisors. Approximately four weeks are then allocated for the completion of the PoE, which is submitted

Ivor Blumenthal, CEO of the Services SETA

thereafter for assessment by accredited assessors. Based on the PoE, the candidate is then required to make a presentation, motivating their eligibility

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for the designation. MPs are then assessed, for accreditation (successful candidates attend graduation). CM candidates are required to

SERVICES SETA

A Chartered Marketer has demonstrated that he or she is able to: 

 



 



Apply a range of financial and / or statistical formulas to plan and measure the results of strategic marketing efforts Plan, prepare and present high level proposals to role players and stakeholders Integrate all aspects of marketing in meeting the broad objectives of the organisation and ensure that marketing strategies and activities are integrated and co-ordinated with those of other key parts of the organisation Demonstrate that strategic marketing efforts contribute directly towards the bottom line of the organisation Demonstrate professional conduct to ensure sound strategic marketing practices. Conduct research into global and / or national marketing practices and use findings to add value to the organisation In order to maintain your status as Chartered Marketer you are required to prove that you are currently competent against these criteria, through engaging in specific CPD activities.

write a board examination at this stage, and then overall results are verified by the Services SETA. Successful candidates graduate from the programme. To maintain their status, MPs and CMs are required to accumulate a certain number of CPD points each year, and must abide by the Code of Conduct. The CPD PoEs must submitted for evaluation, every two years for assessment. One needs to understand that an individual does not automatically retain the CM or MP status for life. Instead, they must continually develop their competencies, and prove themselves multi-skilled, multi-dimensional individual. It’s also about accountability and good governance; a chartered marketer who does not meet the standards set out by the Services SETA will lose his/her status. “A further benefit of the CMSA programme is the international recognition afforded by the European Marketing Federation (EMC) which recognises the South African designation as being the equivalent of their ‘Senior Marketing Professional’. This should facilitate international appointments, and assignments. As an example, the leader of a local marketing services agency promotes his EMC certificate to European clients who want someone in South Africa whose level of expertise they can count on, and who also knows and understands the African market – that’s clever use of the reciprocity,” says Hudson. “Achieving the CMSA professional designation indicates a high level of mastery in marketing. In time this will be recognised in industry, as Chartered Marketers show their mettle as marketing directors, brand managers of top brands, and leaders of customer centric organisations. It indicates a combination of knowledge, skill and

practical experience in attracting and retaining customers, and consistently generating income,” says Hudson.

Continuous professional development The continuous professional development that is undertaken by marketers in the Services SETA CM(SA) and MP(SA) programmes is key, because it emphasises lifelong learning and the maintenance of a high standard of professional conduct. Essentially, this means that the Services SETA assesses and values proof of mastery, which is gained experientially in the workplace. Failure to remain professionally competent should prevent such individuals from being able to work within a specific sector. “The essence of CPD is to earn sufficient points to retain your position on a register. This means having access to the best. Through a consultant, Dr Michele Serfontein, an outstanding programme of activities is underway, involving top local and international facilitators. These exciting sessions have been well attended. CMs can also earn points through making presentations, mentoring entry-level learners, or through contributing to reputable marketing and business publications,” says Hudson. It is precisely this high standard of professional conduct and real world experience that will uplift the marketing profession.

be of an active or output-type nature (requiring the individual candidate to design, develop of deliver programmes and workshops, or write papers that will deliver information to an audience). The CPD points are calculated as follows: one hour of participation equates to one point. So, 50 points equates to 50 hours of CPD activities. The activities that qualify for CPD include:  Reading, writing and the submission of marketing articles  Attending and presenting marketing related lectures  Coaching, mentoring or supervising individuals in the marketing field, or being coached, mentored or supervised  Attending, facilitating and developing marketing related courses and seminars  Reading, developing, presenting and publishing marketing related papers  Being a member of or serving and actively participating in a marketing related professional body or bodies  Serving and actively participating in a community organisation; and  Developing an individual development plan or implementing elements of an individual development plan.

Looking ahead “The results of related professional associations collaborating with the CMSA will quietly unfold over the next few months,” says Hudson. “For example, once members of the DMA have achieved a certain number of points from their process, they become eligible to start the CMSA programme. Whilst their evidence will obviously be mostly direct marketing related, as long as they can demonstrate mastery in it, and show sufficient proficiency in other aspects of marketing, they will find a pathway into the CMSA programme. The same will apply to market researchers and senior level conference and event organisers,” he says. The Public Relations Institute of South Africa (PRISA) is also sharing knowledge of their sophisticated internationally adopted professional designations and CPD process, says Hudson, so that one will eventually be able to gain convertible credits from different but related streams. 

The CPD requirements: Candidates must accumulate a total of 50 points over a 12 month period, by participating in relevant activities. Thirty per cent of the activities must be of a passive of input-type nature (attending educational programmes and workshops, for example), while 70 per cent of the activities must

For more information, visit http://www.serviceseta.org.za, or contact Dharmisha Govind, tel (011) 276 9600 e-mail [email protected]

Vol 26 No. 9/10 I 2008 I MarketingMix 39

by gary nelson EXPERT OPINION

Targeting townships There has been much speculation in the industry and the media as to the effect shopping mall development in townships will have on local retail businesses, with most predictions being quite negative. In fact, a recent study done by the Bureau of Market Research stated that convenient access linked to price competitiveness and the extended shopping experience at large chain stores in these new malls suggest harmful consequences on the turnover and employment of small township retailers. However, the same study also states that while 75 per cent of businesses located less than 1km or a 15-minute walk from a mall reported a decline in their profits, this dropped to 36 per cent when located 4km away, with the percentage decreasing even further the greater the distance from the mall. And herein lies the rub: while there is a definite negative impact on local businesses in the immediate vicinity and therefore product penetration around the malls, there is a very positive spin off … the further away we move from the mall or economic hot spot, the more opportunity there is for expanding the client’s catchment area. This is demonstrated clearly in a recent survey we ran for a battery manufacturer. While the introduction of a mall in the Atteridgeville area showed that people around the mall indicated they would purchase from the mall, only a few kilometres away in Saulsville, 85 per cent indicated they would still buy batteries from the local general dealer. Traditionally, the focus on distribution into the townships has been on products to a large retail store. This store would then run off or ‘feed’ to a number of smaller stores. While the mall may have interfered with this process, what can happen now – with a few small changes in strategy – is even deeper market penetration into more outlying areas by servicing or distributing brands into even more retail stores outside the formal business hub. This deeper market penetration can also be secured by alignment with multipurpose or highly influential points in the community. It is important to ensure that the most influential stores are called on in all areas of operation. To ensure this, ailing stores are constantly replaced by those that are able to offer products right across the FMCG continuum. These stores not only provide goods

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It is my belief that if sophisticated solutions, that is planning and technology, are implemented for what is essentially an unsophisticated market, an untapped source of consumers can be accessed for clients.

”

and services but also become convergence points for leisure activities such as playing pool and soccer tables. Many stores are also used as pay out points for social grants and pensions, and these should be included in the most current route lists. The more influential the store, the greater the potential to become a convergence point for various community members. Furthermore, by implementing changes in the routes of vehicles stocking township stores and vehicle tracking to ensure compliance with the new routes and through the implementation of technology, the negative can fast become positive. It is my belief that if sophisticated solutions, that is planning and technology, are implemented for what is essentially an unsophisticated market, an untapped source of consumers can be accessed for clients. Considering the thousands of stores in the townships the untapped potential is mind boggling. In terms of what we are doing to ensure effective reach for our clients’ brands, all vehicles are scientifically deployed using current data such as black disposable income, population census data and so on that helps us to identify economic hot spots and catchment areas. In addition, we have installed a geo-mapping system as well as a sophisticated data-capturing system that will dramatically improve quality and turnaround times for client report backs. In terms of data collected during store rounds, the following information is imperative: product penetration versus competitor penetration, trader insights, consumer comments and to a large degree what the opposition is doing that gives it the edge and pricing trends as well as other factors and in-store opportunities that could be used to improve visibility and top-of-mind awareness for our clients’ brands. This combination of deeper penetration, use of technology and data collection ensures continued viability and, in fact, huge potential in township retail for the local and general dealer-type stores – despite the advent of malls in the townships. 

Gary Nelson CEO, Primedia Face2Face (011) 475 1419 [email protected]

EXPERT OPINION by janine lloyd

What’s in a good name? Socrates once said: “Regard your good name as the richest jewel you can possibly be possessed of – for credit is like fire; when once you have kindled it you may easily preserve it, but if you once extinguish it, you will find it an arduous task to rekindle it again. The way to gain a good reputation is to endeavour to be what you desire to appear.” The corporate identity or brand of a company along with its reputation is its greatest asset. The legitimacy an organisation receives because of its reputation should be carefully guarded. The power of being trusted and believed is enormous. The proliferation of information and media, intense public scrutiny and constant corporate change has created confusion, distrust and cynicism that continue to erode the reputations of businesses with their employees and the public. Why care... unless reputation contributes to a company’s business or stock performance. The bottom line is that it does. Business experience and research has demonstrated time and again that a good reputation helps a company to sell its products, recruit the best and the brightest, and attract the most desirable business partners. Industry research* has revealed that individuals who are familiar with a company are more likely to evaluate it more favourably and it is more likely to lead to behaviours that support the corporation’s strategic goals – recommending products and services, and the corporation as an investment. Corporate reputation plays a large part in your target audience’s forming an opinion of your products and services, therefore public relations (PR), as a strategic management function, has as its key mandate to help organisations build reputations and establish market credibility. As a term public relations has often been mistaken for publicity; however, it is about helping an organisation and its public adapt mutually to each other by building goodwill. PR encompasses publicity, advertising, media relations, investor relations, employee relations, promotions, issues management, public affairs, and industry and community relations. All with one common aim: to gain public understanding and acceptance. At the heart of PR lies communication. As a PR professional I am not just a fan because it is my business, but because my business reflects who I am. As a communicator I am adept at the art of communicating yet I have also learnt that communicating without strategic intent or planning is akin to putting on a play without a script or rehearsals.





Monitor individual communications and refine as necessary Review communication plan and adjust accordingly.

Be what you desire to appear

Strategy and planning Considering PR is a strategic management asset with the corporate reputation as its charge, developing a PR or communications process that will enhance and protect your reputation is paramount. Below is a step by step process to guide you.

Step 1: Define what is required Conduct a ‘situation analysis’ – what is your current reputation or standing with your public? Conduct research or look at existing market research, conduct a strategic counsel with relevant parties.  Segment the target audience – know who all your publics are  Align to business strategy – ensure you understand the business strategy and key goals  Develop an overall PR objective for each target audience group  Ensure you have clear, realistic and measurable goals.

Step 2: Develop a plan – think strategy before moving to tactics 

   

Develop the PR process – audience, message, content, channel Ensure accurate messages that fit the audience Define activities, set goals and timelines Create feedback and measurement mechanisms Determine accountability and resource requirements.

Step 3: Implement and measure 

Roll-out PR activities

Remember that reputation is not just what others think or say about you, it is also about being ‘what you desire to appear’. The public wants to buy from companies that deliver on their promises. Should you break these promises you are eroding the very essence of your company’s reputation. When considering your overall PR strategy and communications messages it is critical to consider your company or brand promise. A good PR campaign builds up the reputation of your company to deliver on its promises and brand values. What would MTN’s Everywhere you go pay-off line mean if you couldn’t get your cellphone to connect nearly everywhere you go. MTN’s core brand positioning is shown through its latest adverts which highlight ‘Go’ people – the igniters of fantastic ideas and those individuals who are prepared to mobilise their potential, to go and invent, create, challenge and change things in their life experience. This is the essence of the MTN brand promise to which the company lives up to as a progressive, innovative, leader with people who have a ‘can-do’ attitude. Do not make promises that you cannot keep; even though you may have developed a good reputation, remember you could just as quickly destroy it. Don’t insist your PR department, advertising and marketing people communicate messages to the market which undermine your reputation because they are simply not true. Just as PR can build your reputation so too can reality quickly turn your reputation into a bad one. In the words of Abraham Lincoln: ‘You can fool some of the people all of the time, and all of the people some of the time, but you cannot fool all of the people all of the time.’ *Understanding is the beginning of approving: Vapid Platitude or Cornerstone of Public Relations? By John Gilfeather, VP Roper Public Affairs, NOP World and Tina Carroll, Ph.D. Candidate, University of Miami, March 2005. www.instituteforpr.com 

Janine Lloyd PR coach and CEO Livewired Communications 0861 548 394 [email protected]

Vol 26 No. 9/10 I 2008 I MarketingMix 41

EXPERIENTIAL MARKETING

Experiential marketing summit The 2nd African Experiential Summit took place on 3 September and offered a mindboggling wealth of useful information on experiential marketing, branding and sponsorship. Experiential marketing is becoming an increasingly important element of the marketing mix as consumers begin to tune out the more traditional advertising noise in favour of a more personalised approach. According to Ryan Fitzsimons, CEO of Gigunda Group, experiential fits perfectly with the new consumer because it is ‘the discipline of creating engaging, experience-based programmes that drive a brand message to the one-on-one conversation level.’ As Dr Jannie Hofmeyr, head of Innovation at Synovate, pointed out in his presentation Connections, you create strong brand commitment by connecting the brand to things that people really care about. But, he says, it takes time to build that connection. However, once the connection is made, you own the image and the buying behaviour follows. This is where experiential marketing can speed up the brandconnection process. Andy Rice, chairman of Yellowwood Brand Architects agrees and his presentation dealt with media clutter. “This isn’t just about clutter; it’s about media proliferation beyond all reasonableness. The way to break through is to stop acting as media and advertising. Our brains are hotwired to be attracted to those things that interest us. So, entertainment first, brand message later; this is the trick to breaking through the media clutter. Is it any wonder that consumers choose their own media carefully, and that they often ignore ‘traditional’ media in the process?” he asks. The change that marketers cannot ignore is that marketing and advertising are about the consumer. “Experiential marketing is truly about customers. Most traditional marketing is – despite what marketers say – usually product focused. Look at the concepts and methodologies of

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traditional marketing: choice models, conjoint analysis, and feature and benefits segmentations. They are all about the product, not the customer,” says Bernd Schmitt, PhD – Robert D Calkins Professor of International Business and executive director of the Center on Global Brand Leadership at Columbia Business School. Schmitt, the keynote speaker at the Summit, used Apple, Mini and Starbucks as prime examples of companies that focused on the experience. “How does a brand fit into a consumer’s lifestyle – what do the customers want and how can a brand help them to enrich their lives? This is how brands must think now,” says Schmitt. According to Schmitt, as experience of a brand increases, so do the positive impressions and purchasing intentions – provided, of course, that the product is up to the match. To ensure that experiential marketing works, it must focus on purchase and consumption with research on consumer insight looking at customers as rational and emotional. “It also means a move from a product focus to a consumption situation while looking at the socio-cultural environment,” says Schmitt. According to Schmitt, there are five strategic modules: sense, think, act, relate and feel, and marketers need to look at product environments, events and sponsorships, people, visual/verbal identity and website. Experiential marketing is not as easy as it seems. The ultimate aim for any brand is to get a customer to fall in love with it – destination devotion. “If we’re seeking destination devotion, it means we’re looking for quality trial opportunities

(QTOs) – how can we introduce someone to the brand or reintroduce them to a brand that breaks the mould. This is when we need innovation. Our definition is the following: innovative QTOs only happen when brands discover and maximise those crucial points of highest untapped potential,” says Fitzsimons. But, he adds, although leading with innovation creates buzz, it is not up to the marketers to finish this buzz, but to keep providing new, exciting and fresh ideas for the target market. One way to keep the buzz going is finding the right influencers. Carol Abade, CEO of EXP gave her presentation on Influencing the Influencers in Africa, demonstrating the unique appeal of experiential marketing and finding influencers across the continent. Over the past five to 10 years, the markets in Africa have changed and, therefore, so must the marketing approach. “Influencing the influencers is one way of dealing with the changes as they are key in linking

EXPERIENTIAL MARKETING

communities together but you have to actually go out and find these people. Influencers don’t wait for you to ask; they tell you and give you the details. Effective segmentations allow us to be able to talk to the right audience, at the right time in the right way. This is where influencers come into play,” says Abade. She also says that finding the right influencers can provide invaluable consumer insights into the different target markets, which are insights that would not be found any other way.

Some rules: There is a group of extraordinary people capable of including change  Profiling measures must be driven by lifestyle and not brand  The content of the message: you must have a story to tell  Identify your touch points  Identify the influencer’s environment  Advocacy, not traditional amplification, is key. But marketing in Africa cannot ignore traditional media either, in fact, anyone that is involved in experiential marketing will say that you cannot use it alone; it must be integrated into an entire marketing campaign. Unfortunately, there is little research conducted in Africa, but Telmar’s Sharon Penhallrick certainly agrees that a 360-degree holistic approach, along with innovation and effectiveness, plus quantitative and qualitative research are the only ways to conduct a media campaign in African markets. Penhallrick presented her paper Evolution and Revolution of the Communication Landscape across Africa, and stressed the need for marketers to know and understand the continent much better if there is any hope of conducting effective campaigns. She also stressed that markets are changing rapidly, driven by the introduction and adoption of technology and marketers mustn’t be fooled into thinking that each media has the same impact. Penhallrick gave figures for the whole of Africa: print makes up 46 per cent, radio 23 per cent, TV 16 per cent, outdoor 14 per cent and cinema one per cent. Across the continent, conventional media is 55 per cent and non-conventional 45 per cent. “You need to know about the culture of those you wish to target, for example: the conflict between traditional African culture and westernisation is a constant struggle, ethnic languages are slowly been replaced by new youth-led language and religion is very important. Football is the most popular sport,” says Penhallrick. Talking of football, Carl Monteiro, head of marketing for FIFA, spoke about the fan parks – named Fan Fest – that were hosted in Germany 

and the creation of the parks for the 2010 FIFA World Cup, which are perfect examples of consumers experiencing brand FIFA and the host country. Plus, it creates an experiential marketing platform for sponsors. However, according to Kim Skildum-Reid, founder of Power Sponsorships and one of the world’s renowned sponsorship gurus, most sponsorship money is completely wasted. But, she says, when talking about experiential marketing, sponsorship is as good as it gets – if it’s done right. “You can use sponsorship as an incredible authentic experiential building experience, but the two swear words of sponsorships are awareness and exposure.” Skildum-Reid explains that with a sponsorship, a brand is sponsoring something that people already care about, so you’re building advocacy straight into it. But, the two main objectives of a sponsorship should be changing target market perceptions and behaviours – and should not be just about awareness. She says that we are now – or should be – in the last generation sponsorship era. This means that the target market must gain from the sponsorship:  Put target market needs, wants and interests first  Ensure there are multiple, meaningful benefits for your target markets – treat them like people, not purchasers. “The result: Last Generation Sponsorship. Finally, sponsorship is focusing on the right thing – the target market. And what we need to do is embrace it and learn how to use it,” she says.

Recommendations: 









Throw out the rulebook and get strategic: sponsorship is about results, not history Get away from the sponsorship package mentality: best practice does not rely on logos, tickets, hospitality and endorsement Stop ‘supporting’ sponsorship: use sponsorship as a catalyst to make existing spends work harder Take a magic wand approach to leverage: if you could do anything to achieve your objectives and get that third win, what would you do? Measure what matters.

The full speeches from the presenters are available online at www.marketingmix.co.za. The 2nd African Experiential Marketing Summit was hosted by Exp. Partners were Marketing Mix, Absa, Toyota, Show-co, Purple Apricot and Ukubona. 

Vol 26 No. 9/10 I 2008 I MarketingMix 43

by nicci columbine EXPERT OPINION

Getting mileage from contact

centre-based campaigns Given the proliferation of brands in the global market environment, marketers are being constantly challenged to attract customers in new and innovative ways. Companies are being prompted to explore alternatives to ‘traditional’ channels to claim a space in the minds and purchasing decisions of existing and potential customers. As mobile and Internet-based media and communication has enabled global market presence for brands to reach consumers anytime, anywhere, 24/7, consumers are exposed to such a vast amount of information on competitive products and services, they are in the position to determine what best suits their purposes and budgets. This has only made marketers’ jobs more complex, necessitating more research and direct interaction to gain an intimate understanding of specific consumers’ needs and interests. Market segmentation has resulted in the need to differentiate communication with customers according to their profile and individual preferences. Moreover, for brands to gain presence among the clutter of images and messages that constantly bombard consumers, marketers need to ‘play’ in a space and context that consumers relate to, creating opportunities to communicate with them according to their lifestyle preferences. As comments Yaron Assabi, CEO of Digital Solutions Group. “In future the most powerful brands will be customer centric. In order to compete, successful companies need to get to know their customers and become their advocate”, emphasising the need for marketers to engage with customers the PC, mobile phone and Internet become the primary interface for communication, access to information and commerce, so increasingly companies are shifting their advertising and promotional activities to these channels. Says Assabi: “Companies that can provide comprehensive web-based applications that are accessible to the consumer via the PC (Internet/intranet or extranet), mobile handset, PDA, voice via voice XML, supported by a call-centre service, have the advantage. It is definitely a space that marketers should be focusing more on.” However, to capitalise on social and viral media, such as Facebook and MXit, where interactive communication enables users to interface with digital advertising and promotions, direct marketing takes on a different profile.

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Multi-channel digital direct marketing creates touch-point opportunities for companies to ‘talk’ to customers. However, according to independent research by the Gartner Group, only some 33 per cent of all global companies interact with customers via multiple channels. In SA companies still tend to use above-the-line media ‘push’ campaigns to create awareness of new products or services, spending inordinate budgets on high-impact advertising for relatively little return on investment. Continues Assabi: “The web is the most interactive and cost-effective marketing and sales channel, enabling customer self-service to reduce service maintenance costs. Personalisation and customisation is easy, making it possible for marketers to communicate with various groups of customers differently. Web-centric applications can update all of the service channels simultaneously thus ensuring consistent service across all channels. “

Call centres play a vital role in supporting multi-channel campaigns, both in outbound sales and inbound response to a call to action. As part of the multi-channel solution, agents’ responses can make or break a campaign, if they are inadequately briefed on the details and objective of a promotion or do not understand the essence of the brand. As discussed, a close relationship between marketing and brand managers as well as contact centres ensures that agents understand the objective of a campaign yet also convey the ‘spirit’ of a brand. Call centres are, of course, critical to determine the statistical success of a campaign in terms of call volumes and responses, but in conjunction with business intelligence, can provide reporting to determine and advise a client a particular channel may not be effective. Adds Assabi: “The web is by far the best reporting tool as access to information is available anywhere, anytime and can be differentiated based on security and authentication.” Further, contact centres also have a part in post-campaign and after-sales service to gauge customer satisfaction and inform clients by providing valuable feedback for marketers to improve future direct marketing initiatives. It is clear that in today’s integrated marketing environment, not only have contact centres become an extension of a company’s overall integrated interaction with the customer, but have also become a sophisticated tool to inform companies of customer preferences. Today, retaining customer loyalty is key to ensuring financial sustainability. Knowing how customers think, behave and live are all important for marketers to tap into what customer want from brands. Concludes Assabi: “Marketers need to think about how to improve the experience from the customer’s point of view. Using technology that improves service versus creating a barrier will enhance this experience. If done well, digital channel marketing can make customers feel tremendously valued.” 

Nicci Columbine managing director Columbine Communications (011) 880 8137 [email protected]

by riaan labuschagne MARKETING AT-RETAIL

MAR for lower LSMs On 12 September 1962 a young John F Kennedy tried to convince a nation in the midst of an economic slump and a devastating war to stand behind the impossible: the task of putting a man on the moon. His words were as inspiring then as they are today. In particular, his reason for putting a man on the moon strikes me as relevant: ‘We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard.’ Without a doubt we are in hard times, brought on by a global financial speed bump, high interest rates and escalating prices, to mention but a few. These are times where the cream is left off the cake and the basics have become the focus once again. Our observations on what consumers are doing in these hard times make for interesting reading. I work with a multitude of suppliers ranging from baby powder to glue, small to multinationals, importers and locals. One thing all of these suppliers have in common is that they want to speak to the consumer when he or she is walking past or close to their product. The interesting part of our viewpoint is not only do we see different strategies being executed by a multitude of companies into this market, but we also see what works. As times are really hard I would like to take a look at what we have seen in the lower LSMs, and more specifically the retailer with the undisputed low-price perception, Shoprite. During the past few months the effect of high interest rates, the corresponding high inflation and the National Credit Act has put a squeeze on most credit retailers. Although this effect has been felt by Shoprite consumers, the level of trust in what Shoprite promises has helped the company to record revenues and an all time share price high. It is this belief that Shoprite will sell at the lowest price that is not only having the higher LSMs move from Woolies and Pick n Pay into Shoprite but is also bringing their usual shoppers back for more. We have seen Pick n Pay and even Woolies* push pricing to the core in their advertising and promotion strategies, and it is in this metamorphosis from value to price that we see the greatest danger. When our clients are competing for the consumer’s purse, the best results both sales and revenue wise (good revenue is normally based on good sales without discounting, where good sales

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“

One thing all of these suppliers have in common is that they want to speak to the consumer when he or she is walking past or close to their product.

”

and poor revenue is normally due to strong discounting) have come from the suppliers selling their core values to the consumer and leaving the price perception to Shoprite. As one of SA’s biggest advertisers the ‘Lower prices you can trust, Always’ message will most likely be in our faces, on our doorstep and in our mail before we get to the store. We like to look at it as a partnership, one where Shoprite is creating the low-price perception in the mind of the consumer to the benefit of not only the consumer but also the supplier. Nowadays, the larger format stores such as the hypers carry as many as 60 000 lines. If we are really tuned into the market we may most likely only remember the price of 100 of these lines. Once we are in the store, the rest are sold on our perception of value and not price, as we have no reference to compare the label price. As a supplier the catch is to be in the store with the low-price perception with enough forward share so that Mr. Consumer will see you, will like what he sees and then pick you. If your value proposition suits the needs of the consumer holding your product then you have a sale. If you are in the store but don’t have the forward share, point of purchase (POP) media accentuates and artificially creates this exposure. It is this ability to create exposure, coupled with the fact that POP activities can correlate directly to unit sales, that has necessitated the move of more budget into the stores. Having said all of this, we have obviously looked at which parts are crucial in a successful in-store campaign and without fail we have found that price alone is not the pixie dust. Almost without exclusion the most effective in-store campaigns we have managed had the following in common: The benefits to the consumer were made clear in a format that was easily consumed. This format was a combination of colour, language and size. The product was differentiated. Although the size of the medium had an effect the most crucial factor was that the other lines in the same category lacked similar promotional material on or in front of it. 

Riaan Labuschagne MD, ZaPOP (021) 948 3188 [email protected]

CASE STUDY

Pepsi branding and sales awareness campaign 2008 Client: Ceres, Pepsi Campaign: Pepsi campaign 2008 Agency: ZaPOP Pepsi needed to increase awareness of its products across the country. In-store marketing was needed to drive sales.

Solution:

ZaPOP was recruited to deliver the in-store marketing and branding solutions for Pepsi. As a starting point, ZaPOP collected information about the brand, the target consumers and also the shopping preferences of these consumers. The 2006 Trade Search Omnibus study conducted by ACNielsen revealed that 65 per cent of South Africans prefer to do their shopping at Shoprite stores. Further research by Target Group Index (TGI) found that 30.7 per cent of shoppers who consume Pepsi products shop at Shoprite stores while 30.5 per cent shop at Checkers stores and 14 per cent shop at Checkers Hyper stores. Based on this research, ZaPOP decided to execute the Pepsi campaign across Shoprite Group stores nationally. The campaign was carried out between 26 May 2008 and 20 July 2008 in 192 stores across South Africa. Based on research conducted by TGI, ZaPOP knew that people who shop at Shoprite Group stores best respond to advertising on the shelf, where the brand is displayed.This guided its decision to recommend the use of category banners in the aisles as well as freezer catchers. Further TGI research also shows that the life-stage groups that are the biggest purchasers of Pepsi products are dependant singles, play school parents, and single parents, teen parents, nest builders and pre-teen parents are also fairly heavy consumers of Pepsi products. The majority of Pepsi consumers are LSM 6-9, English speakers, aged 16-44. Fifty one per cent of Pepsi consumers are male. All these findings were considered during the creative design process. The category banners and freezer catchers were designed to be aesthetically intriguing with the messaging: Pepsi has a new look. Express yourself more. These created consumer awareness, while a competition element with attractive prizes prompted trial and purchase of the brand, which drove sales.

Results Results from the 2008 campaign period (scanning data sales) were compared with total scanning data sales from 2007. It was found that year on year, sales increased by more than 160 per cent. Campaign sales research found that the Pepsi Max 2litre bottle and the Pepsi 330ml can were the best sellers for this period. Due to stock issues, the campaign did not have the impact it could have had. ZaPOP advised its client to monitor stock availability in stores, in future, as well as to increase the number of stores selected for the campaign. It has also recommended to the client the use of till posters and Radio Retail in future to further drive product and campaign awareness. 

Vol 26 No. 9/10 I 2008 I MarketingMix 47

by eric levenstein / darren willans LAW MIX

Intellectual property rights and the 2010 FIFA World Cup The rapidly approaching 2010 FIFA World Cup presents a host of opportunities for the wouldbe counterfeiter and infringer of various intellectual property rights. There are steps that the organisers and sponsors can take to protect their rights. Two major threats that will emerge leading up to and during the 2010 FIFA World Cup are the distribution of counterfeit goods and ambush marketing. South Africa has become a hunting ground for a proliferation of Chinese copies of various products. Over the years we have seen an increase in counterfeit and pirated CDs sold on the streets, together with ‘knockoffs’ of various clothing brands. More recently, direct infringement of rights relating to engineered products (by imitation, copying or simulation) has occurred. Given the magnitude of the 2010 FIFA World Cup, it is inevitable that opportunists will try to exploit the event to ply their illicit wares. The same principle holds true for ambush marketers. Major events such as the 2010 FIFA World Cup have become important vehicles for promoting and advertising products, and organisers of such events generally require a monetary payment for participation, typically through sponsorships. Ambush marketing occurs when a trader seeks to use the publicity value of an event to gain a benefit from it despite not having any involvement or connection with it and, more particularly, having made no financial contribution. An example of ambush marketing pertinent to the 2010 FIFA World Cup would be where a company gives away a ticket as a prize, without the organisers’ authority. Due to the stringent processes organisers follow, tickets that are resold or given away as prizes without their authority may well be cancelled and/or be regarded as invalid. In these circumstances, an innocent person who obtains a ticket in such a manner may be unable to gain access to the event. The 2010 FIFA World Cup organisers have made it clear that they intend aggressively pursuing wouldbe ambush marketers and all potentialinfringers of the intellectual property rights associated with the event. A solid starting point is that the Minister of Trade and Industry has designated the 2010 FIFA World Cup as a protected event under the Merchandise Marks Act. This designation makes

48 MarketingMix I Vol 25 No. 9/10 I 2007

Eric Levenstein

Darren Willans

it unlawful to abuse trademark rights in the context of a sponsored event. It is also aimed at preventing ambush marketers and trade mark infringers from attempting to capitalise on the huge publicity surrounding the 2010 FIFA World Cup. Anyone who contravenes these provisions commits a criminal offence. Furthermore, the organisers have registered the various FIFA trade marks (such as the mark ‘World Cup’ and the FIFA trophy) and, where appropriate, registered the designs. Thus, apart from the protection provided by the Merchandise Marks Act, they will have recourse through laws such as those set out in the Counterfeit Goods Act, the Trade Marks Act and the Copyright Act. The Counterfeit Goods Act provides powerful

civil and criminal remedies as well as mechanisms for the search, seizure and detention of suspected counterfeit goods. To use these remedies, a complainant can either bring a court application for a search-and-seizure warrant or lay a complaint with the relevant ‘inspector’. These proceedings usually take some time to resolve but, in the mean time, the seized products remain in detention and out of circulation. Thus, the remedies of the Counterfeit Goods Act are a forceful, practical mechanism against counterfeit goods. The Trade Marks Act can be used where an event organiser has a registered trade mark, such as the World Cup symbol, which is used to identify the event. Where an unauthorised person uses that trade mark to market goods, the organiser can institute civil court proceedings for trade mark infringement. Similarly, the Copyright Act provides for severe penalties in the event of copyright infringement of insignia or materials that constitute ‘artistic works’ or ‘literary works’. Unauthorised copying – either identically or in substance – can give rise to a claim of copyright infringement. It remains to be seen how the South African authorities and the High Court will police the various mechanisms in place to combat the infringement of intellectual property rights around the 2010 FIFA World Cup. Will such legislation effectively stop ambush marketing and trademark infringers? Certainly, the legislature is moving in the right direction and the designation of the 2010 FIFA World Cup as a protected event will assist companies and event organisers in the period before and during the sporting spectacle. Come 2010 and beyond, claims might well proliferate in our courts, where plaintiff companies seek to recover damages from counterfeiters and others unlawfully attempting to exploit the marks and brands of legitimate owners during the event. 

Eric Levenstein Director, Werksmans Attorneys (011) 535 8237 [email protected]

Darren Willans Senior associate, Werksmans Attorneys (011) 535 8324 [email protected]