Marketing Mix magazine Jan Feb 08

MarketingMixS T R A T E G I C M A R K E T I N G I N S I G H T I Vol 25 Issue No. 11/12 I 2007 I R25.00 incl. vat

CONTENTS

Vol 26 No. 1/2 I 2008 I MarketingMix 1

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I 3 0 I PackagingFind out how the latest consumertrends are influencing packaging

I 3 3 I Expert Opinion:Jean-Claude LatterJean-Claude explains why it’simportant to keep track of yourincentive programme strategy

I 3 4 I Expert Opinion:Nicci ColumbineNicci explores the link between goodbranding and a good call centre

I 36 I Mobile marketingMarketing Mix talks about the nextmarketing wave, and explains howbrands can make a success of it

I 4 1 I Expert Opinion:Marc SpriestersbachMarc ponders new age bell ringing

I 42 I Community mediaMarketing Mix reports on the majortrends and issues impacting on thecommunity media industry

I 4 8 I Expert Opinion:Elan LohmannElan explores marketing online

I 5 0 I Expert Opinion:Nici StathacopoulosNici gives us the alternative ABCs

I 52 I Word of Mouthmarketing report backMarketing Mix delivers a report backon the 2007 Word of MouthMarketing workshop

I 54 I Marketing atretailGraeme Taylor explains theimportance of understanding theshopper’s mission

I 5 6 I Law Mix:Kathleen RiceKathleen explores the issues aroundundersea cable investment in SouthAfrica

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I 0 2 I Book ReviewMarketing Mix reviews Never mindthe sizzle... where’s the sausage:branding based on substance notspin, written by David J. Taylor, andfinds out about branding

I 0 3 I Ed’s note

I 0 4 I Direct marketingnewsMarketing Mix checks in with thedirect marketing industry

I 0 6 I NewsAll the latest gossip in the wonderfulworld of the marketing mix

I 1 1 I Expert Opinion:Richard DuncanRichard wonders whether thepitching process shouldn’t be morelike speed dating

I 1 2 I Brand AnatomyLevi Strauss tells us why it’s thedenim du jour

I 1 4 I Expert Opinion:Helen McInteeHelen has had enough with thegratuitous use of vulgarity in today’sadvertising and media

I 1 5 I 7 Day [B]itchNicholas Haralambous gives us aglimpse into the life of a bloggingbusiness strategist

I 1 6 I Gay MarketingMarketing Mix finds out whyspeaking to the gay market shouldbe on your list of priorities

I 2 4 I Eastern CapeIntelligenceThe Eastern Cape is thriving, and itholds great potential for brands.Marketing Mix finds out why

I 2 8 I Expert Opinion:Michelle Venter-DaviesMichele Venter-Davies explains whymarketers need to start marketingMarketing

I 2 9 I Expert Opinion:Don SearllDon tells us why 3D HD is the way ofthe future

MarketingMix

MarketingMix I Vol 26 No. 1/2 I 20082

Has David J Taylor lost the plot? Is this ateen novel, or is it a branding story?

A bit of both, actually. Taylor introduces us to

Bob Jones, a former sales employee, and now a

member of the brand management team at

Simpton’s Sausages. This is Bob’s journal, which

he keeps while he tries to make sense of branding

and marketing. On his first day, Bob realises that

he is out of his league; the other members of

the branding team are equipped with all

manner of branding and marketing jargon, and

they have a mission: to rebrand Simpton’s and

to ‘leverage’ the brand by launching a new

range of sausage pizzas. But Bob senses that

something is amiss: his experience in the sales

department has taught him that this brand is

on the rocks, and he wonders if such a radical

approach is really necessary.

The book follows Bob over the next

12 months, as he battles ‘brand immersion

workshops’, marketing agencies and company

politics, all the while trying to get branding

right. Over the course of the year, he develops a

mission, and values and vision for the Simpton’s

brand that truly take the sausages back to their

original recipe (and therefore, back to a solid

core set of values and brand promises). With a

tight budget and a small team of colleagues,

Bob has to take on consumer testing, manufacture

control, quality assessment, market research and

financial planning as well as the pitch to a

management team that is hell bent on the

sausage pizzas and a marketing strategy that is

aiming at the wrong market, in the wrong way.

All the while, Bob must also juggle his family

and personal relationships.

What’s most compelling about this book is

that the protagonist could be me or you, or the

guy sitting next to you; it is the story of the

average modern marketer, trying to make

sense of this ‘branding’ thing. The issues and

challenges that Bob encounters are the same as

those that face marketers everywhere. And the

solutions he finds could be the solution you’ve

been looking for.

This is easy reading (I managed to get

through the book in just two poolside hours

over the holidays). What’s more, it really

challenges the existing world of branding. Are

lateral brand extensions (brand stretching) really

going to uplift a struggling brand, or would it

do better going back to basics and improving

the core product? And then, is the core product

worthy of consumer attention and loyalty? Is

the packaging right? Is traditional consumer

research misguided and ineffective? Are product

innovations really innovative, or are they simply

going to add to the clutter and noise that

consumers are ignoring?

Each chapter in this book ends with

a few valuable lessons or tips, summed up

nicely by Bob. The book is written in an

intriguing way – readers of Taylor’s blog,

wheresthesausage.com, contributed to the

writing process, adding their experiences to the

mix. Taylor has also made sure to include plenty

of juicy case studies (also available on the blog),

so this is more than just a cute story – it is a

valuable source book. �

by fulvia becatti BOOK REVIEW

Never mind the sizzle... where’s the sausage?

By David J. TaylorCapstone Publishing Ltd R153

Never mind the sizzle... where’s the sausage?

ED’S NOTE


Dear Marketing Mix reader, it is with excitement that I

take over as editor of your favourite magazine. I hope we

will become firm friends in our search for marketing

insights. It is with gusto that I present you with the first

issue of the year – enjoy!

What does 2008 hold in store for us? Marketing Mix

has a great line-up of industry-relevant events and work-

shops planned as well as special editions that focus on

topics close to your hearts (research, magazines and

newspapers, and direct marketing). We will also have the

pleasure of announcing the launch of the Marketing Mix

website, www.marketingmix.co.za, soon (we are in testing

phase as I write this). The site will feature a comprehensive archive covering all issues of the

mag published in the past 20 years or so, as well as news and plenty of expert input. We are

toying with the idea of putting up a ‘Guess who’ page, with old pics we found of industry

personalities (there are some truly Dallas ‘80s hairstyles).

Meanwhile, how many of you have gone organic? You will have noticed that stores are

punting their organic produce and brands, and you can certainly expect more of this. And I suppose

it is a good thing. The question is, what makes a product organic. I mean, organic potatoes,

I get (they come out of the ground, and have never been sprayed or fertilised with anything that

is not natural or biodegradable). But organic dairy cheese… or organic water, I don’t get. Yes,

I have seen organic water being advertised locally; when I asked how this water came to be

organic, I was told that it is because the water has not been changed in any way; they have not

removed anything from the water, or added any minerals or chemicals. So is that it then – don’t

put anything in (or take anything out) of your natural produce, and it’s organic?

I fear that consumers will be taken for quite a ride by brands that simply slap the word ‘organic’

onto their labelling and justify it with airy-fairy mumbo-jumbo. There should really be a national

standard, a clear and well-defined set of criteria, so consumers know exactly where they stand.

Certification seems to be something that only a handful of brands are taking seriously and, as

yet, there does not seem to be a local governing body with the sole purpose of cracking down

on charlatans (and I suspect that quite a number of brands are taking advantage of this).

I wonder if the pending food labelling legislation will address this. Certainly, in the packaging

industry, there is a very strong trend toward labelling that is more responsible and accurate (see

the packaging feature on page 30 for more info).

And, while I am not saying that consumers have no responsibility in this regard (because they

should be researching this before they climb onto the fad-wagon), I do believe that brands have

an enormous obligation to do right first. Especially because young consumers are activists – any

sign of foul play, and they will burn your brand to a crisp.

One thing’s for sure, I am not going to buy another ‘organic’ soybean until I have researched

the truth out of it.

Oops! In Vol 25, issue 11/12, we referred to Lucille Van Niekerk as the editor of Beeld, when she

was in fact the general manager (she is now the CEO of RCP Media – congrats).

PROPRIETOR AND PUBLISHER:

Systems Publishers (Pty) Ltd.

Tel: (011) 234 7008

North Block, Bradenham Hall,

Mellis Road, Rivonia

PUBLISHER: Terry Murphy

MANAGING EDITOR:

Michelle Sturman

e-mail: [email protected]

EDITOR: Fulvia Becatti


SUB-EDITOR: Jenny Bastomsky


ADVERTISING MANAGER:

Robyn Andrews


PRODUCTION:

Spencer van Graan

[email protected]

SUBSCRIPTION ENQUIRIES:

Daisy Mulenga


Copyright of all material in thispublication and supplements are

reserved by the proprietors, exceptwhere expressly stated. The opinionsin this publication do not necessarilyrepresent the views of the publisher.

Database:List Perfect

3 938 Jul-Dec 2007

Organic for real?

News

To join, visit www.facilities.coza/dmaDMA fees are paid annually on the anniversary date of joining the organisation andare based on the size of your company. Payment can be made via cheque or EFT.An invoice will be e-mailed as soon as you have completed the online membership.Before you go to the link above in order to register to become a member, you willneed to have the following information available: � Your company details� Your company coordinator’s details ie

the person who will be responsible for keeping your company details up todate on a quarterly basis

� Your company decision maker’s details ie the person who will authoriseyour membership of the DMA and the essential payment of membership fees

� The details of staff members who you believe should receive informationupdates from the DMA on an ongoing basis. If you do not have all the detailswith you, your company coordinator can go back into the system at any timeto update these details

Contact details:(011) 577 [email protected] www.dmasa.org

The ninth founder member to join

the ranks of the DMA is Nedbank.

According to Vaughan Petersen,

Senior Business Manager, Nedbank Personal Loans Division,

it is the efficiency of the DMA in representing all stakeholders

which motivated the banking group to sign up. “Our

interest in the DMA is to support the fantastic work it is

doing in developing the industry as a whole, especially in an

environment in which compliance is constantly changing the

landscape,” he says.

Join the DMA…

Direct marketing news


Channel: M-Net Stars

Launch Date: 1 November 2007

Platform: DStv, channel 154

Ownership: M-Net

Programme Highlights: Films range from

classics, such as Pretty Woman and Splash,

to kids’ films (101 Dalmatians, Lassie), as

well as such greats as Father of the Bride,

Good Morning Vietnam, and Pearl Harbor.

Target market: According to Tracey

Hawkridge-Visser, manager: general

entertainment & specialist channels, this

channel is aimed at any and every DStv

viewer who loves movies.

Advertising rates: R2 500 to R50 000.

Details: This channel is perfect for movie

lovers, with a premiere a day. The channel is

focused on family entertainment, and so

boasts a line-up of feel-good movies. “Both

audiences and revenues on the channel are

looking good and it’s an exciting new

addition to our channel portfolio,” says

sales director, Chris Hitchings.

Channel: The Style Network



Ownership: Comcast International Media

Network (USA)

Programme highlights: Style Star, Fashion

Police, Fashion Trance and How do I look?

Target market: females, 18-49

Ad rates: This channel is not yet commercially

viable for local advertisers, but according

to OATS, audience performance will be

evaluated in the coming months.

Details: This channel is the fashion slave’s

ultimate fix. The focus is on beauty, leisure,

home decor, weddings, and the world of

fashion (and celebs, of course). This channel

holds great appeal for the young female

audience.

Channel: ONE GOSPEL



Ownership: Urban Brew studios

Programme highlights: Shows In Concert

With and Tonight are flagship programmes,

and are drawing in the largest audiences.

Target market: The Christian family.

Programming caters to adults, as well

as youth.

Ad rates: According to Abey Sibiya, head

of the channel, Urban

Brew is still working

on a rate card;

however, the channel

is working towards a

programme sponsor-

ship model. Sibiya

believes that the rates

will be very competitive.

Details: Gospel music

fans and fundis will

get a kick out of this

24-hour channel,

which features not only gospel worship

sessions and shows, but artist interviews,

music videos and game shows as well as

famous up-and-coming gospel artists.

According to Sibiya, the channel’s fan base

is growing fast, with interest from countries

such as Nigeria and Kenya. The channel is

currently building relations with Zambia and

Sudan to further grow its audiences (and

its resources).

The DMA has launched multiplatform functionality for its Opt

Out Register: SMS, Internet and call centre.

Consumers can SMS the word DMA, followed by their ID

number to 34385, or they can call 0861 DMA DMA (362

362), or register online at www.dmasa.org.

Thus far, 35 000 consumers have registered – the register

is updated monthly.


NEWS

Fastest rising (global)1. iPhone

2. Badoo (online community)

3. Facebook

4. Dailymotion (online

entertainment video

site)

5. Webkinz (stuffed animals that also exist

in a virtual world)

6. youtube

7. ebuddy (instant messaging)

8. Second Life

9. hi5 (online community site)

10. Club Penguin (virtual playground for kids)

Fastest falling (global)1. World Cup* (obviously fell as the 2006

World Cup ended)

2. Mozart

3. FIFA

4. Rebelde* (Mexican soap opera)

5. Kazaa (peer-to-peer downloading site)

6. Xanga (online community)

7. Webdetente (online magazine for guys)

8. Sudoku

9. Shakira

10. mp3

*featured in the 2006 fastest-rising list

Google news mostpopular searches(global)1. American Idol

2. youtube

3. Britney Spears

4. 2007 cricket world cup

5. Chris Benoit (former

wrestler who killed

his family and then

himself)

6. iPhone

7. Anna Nicole Smith

8. Paris Hilton

9. Iran

10. Vanessa Hudgens

(High School

Musical star)

TV Shows1. Heroes

2. Lost

3. House

4. 24

5. Bones

6. Jericho

7. Reba

8. Scrubs

9. Greek

10. Caveman

Movies1. Transformers

2. 300

3. The Simpsons

Movie

4. Epic Movie

5. Bee Movie

6. Harry Potter

7. Hairspray

8. Cars

9. Iron man

10. Amazing Grace

Ringtones1. mosquito ringtone

2. 24 ringtone

3. the office ringtone

4. silent ringtone

5. crazy frog ringtone

6. high pitch ringtone

7. final fantasy ringtone

8. ultrasonic ringtone

9. transformers ringtone

10. spider pig ringtone

Diets1. Weight Watchers

2. Jenny Craig

3. Volumetrics

4. Slim fast

5. Atkins diet

6. Beck diet

7. Ornish diet

8. Zone diet

9. Best life diet

10. Mediterranean diet

Who is...1. who is god

2. who is who

3. who is lookup

4. who is jesus

5. who is it

6. who is buckethead

7. who is calling

8. who is keppler

9. who is this

10. who is satan

What is...1. what is love

2. what is autism

3. what is rss

4. what is lupus

5. what is sap

6. what is bluetooth

7. what is emo

8. what is java

9. what is hpv

10. what is gout

South Africa Top Gaining Queries: December 20071. Satanism

2. Fly fishing

3. Thank you cards

4. Juliette Lewis

5. Eid (Muslim holiday

to mark the end of

Ramadan)

6. Mouse

7. Ronnie Coleman (Pro

bodybuilder)

8. Mount Amanzi (holi-

day resort)

9. Silverstar casino

10. Wedding invites

11. Landscapes

12. Sportsmans Warehouse (sport shops)

13. Formula 1 hotel

14. Shockwave (free online game site)

15. Costume hire

Google Zeitgeist

Every year Google provides the ‘zeitgeist’ of the most searched for topics, peopleand words through its search engine. It provides a great insight into what’s hotand what’s not.

© 2007 DreamWorks Pictures (Paramount)

NEWS


Marketing Mix caught up with Odette Roper, the new CEO of the ACA, to find out

more about her plans for the ACA and the Apex Awards.

Marketing Mix: What are your plans for the ACA?

Odette Roper: As the new CEO of the ACA, I am going to try to build a bridge

between the advertiser and the marketer, using the Apex Awards as a tool. These

awards will change perceptions of the advertising industry, and will tell people that

there is real value in it, and it does generate sales and impact bottom line. It is our

mission to get marketers to sit in on workshops and learn about advertising

performance excellence. Historically, the workshops were conducted to help the

agencies understand how to compile their Apex entries. In future we are going to

extend the invitation to both marketers and advertisers in order to showcase the

effectiveness of advertising. It will present an opportunity for the agencies to work

with their clients to prepare their Apex entries.

The Apex Awards recognise campaigns that deliver results, are measurable and

attributable. We’re telling marketers that ads do work.

But overall, I believe that the ACA needs to be more relevant. Not only to

members, but also to its clients; they must get more value out of the ACA. We

want to help members to find ways to contribute to their companies. To this end,

we will be building a web portal, where members will have access to information

and documents that will help them with: for example, employment contracts or

guidelines for best practice. I think this will really help the new, small businesses.

The website will also allow us to communicate with our members and the industry.

Aside from this, we will also be focusing on engendering the right skills in AAA

students, because the industry needs leaders. Usually, it is at the graduation

ceremony that students are told what the industry needs from them, and this is too

late. We need to do this from the beginning of their studies. The ACA intends

working more closely with the school and to achieve this, we set up an Ops

Committee portfolio to deal with issues pertaining to education in our industry. The

portfolio is chaired by one of the ACA board directors; various other members of

the ACA board. Industry players are also roped in to assist the portfolio chair. With

involvement by various industry representatives, opportunities for guest lecturing,

for example, are increased. By inviting guest lecturers from the industry – captains

of industry – to address the students and share on-the-job issues with them, the

students will gain real exposure from day one.

Furthermore, we will build a closer relationship between the school and the

industry and in turn, create access to the industry for graduate students.

MM: How will you be furthering the Apex Awards and what’s the value for

marketers?

OR: Our focus is on educating the advertising industry on the Apex Awards. Case

studies need to be presented in such a way that results and data are clear. Other

awards recognise creativity in advertising or individuals who excel in marketing. The

Apex Awards recognise performance excellence, so the agency that has an Apex

Award on its mantelpiece can be proud of itself.

This year, we are accepting digital entries, which are sometimes easier to put

together. We understand that putting the entry together is hard work, and so we

ran workshops for advertising clients and agencies to create a better understanding

not only the value of the Apex Awards, but also of what the entry process requires

of them and their agencies.

Furthermore, we will be working hard to compile the Apex book as it serves as a

valuable reference, for students, marketers and clients. The Apex Case Study Book

will be published 12 to 18 months after the gala event, and will be available for

purchase directly from the ACA.

The Apex gala event will be held on 10 April 2008. Contact the ACA on (011)

781 2772 or visit www.acasa.co.za for more info.

Urbandictionary.com

California car pool: when each

member of a group uses their own car to

go to the same destination. Typically,

describing the case where the group is

together at the start or close enough to

share rides.

Cuddlingus: the act of cuddling,

spooning or snuggling. When two or

more people lay down in an intertwined

position.

Spendy: expensive.

Reality distortion field: (noun) the

expression used to describe the persuasive

ability of managers like Steve Jobs (the

term originated at Apple Computers in

the 1980s, to describe his particular

charisma). Those close to these managers

become passionately committed to possibly

insane projects without regard for the

practicality of their implementation or

competitive forces in the market place.

Blacking out: to turn off any device

that people can reach you with

(cellphone, two-way, computer, home

phone, Morse code, etc) in order to avoid

a certain person.

Nekkid: nekkid is not simply being

without clothing – it means you are

getting nekkid for mischievous purposes.

Naked is natural; nekkid is naughty.

Disneyfication: the act of taming the

world to make it all safe, clean and

completely similar to a theme park. To

remove the sharp edges and darkness

that are life.

The ACA and the Apex Awards


NEWS

Already showingDamagesGlenn Close heads this legal

thriller alongside Ted Danson.

The first few episodes have aired and it’s explosive.

The CoconutsLocal comedy based on a white family that

are trapped in black bodies after angering

ancestors. The maid becomes a black woman

trapped in a white woman’s body.

Feast of the UninvitedLocal drama set during the Anglo-Boer war

focusing on how it affected everyday people,

fundamentally changing them in ways they

could never imagine.

Are you Smarter than a Fifth GraderBased on the US version of

the hugely popular game

show, South Africans now

have the chance to win a

million. Definitely worth watching for a) to

test your own knowledge or lack thereof and

b) to watch the contestants display their lack

of knowledge in front of the nation.

Private PracticeA spin off from Grey’s

Anatomy, this show, featuring

Dr Montgomery, should

prove hugely popular.

Pushing DaisiesAn off-beat comedy about a

guy who can briefly raise the

dead simply by touching

them. Highly recommended.

Samantha Who?Doing well in the US, this half-hour

comedy features Christina Applegate as the

unlikable Samantha Newly. An accident leaves

her in an eight-day coma where upon waking

she tries to redeem herself.

Bionic WomanThe usual comic comic-book

hero stuff will probably make

this a hit. Jamie Sommers has

a car accident that leaves her almost dead,

until a top secret technology not only saves

her life, but gives her special powers.

Back to YouFrasier fans will be pleased that Kelsey

Grammer is back on screen, this time as a TV

news presenter.

Coming upElla BlueLocal drama set in the ‘60s about a woman’s

journey through the process of race classifica-

tion in terms of the Group Areas Act.

Dirty Sexy MoneyFrom the guys who brought

us Lost, Six Feet Under and

Brother & Sisters, Dirty Sexy

Money features a star-studded cast, including

Donald Sutherland, Alec Baldwin and Peter

Krause. This show can’t fail to draw in the

crowds and is being touted as the 21st century

satirical version of Dallas and Dynasty.

UnhitchedThe Farrelly brothers turn

their cameras to TV with this

comedy about a group of

newly single friends in their thirties.

The Big Bang TheoryIn the top 20 for CBS Primetime,

this comedy follows the lives of

two brilliant but nerdy friends whose lives

get turned upside down when a beautiful

girl moves in next door to them.

The Sarah Connor ChroniclesThis one-hour drama follows on

from Terminator 2: Judgement Day

and Sarah Connor and her son John are still

fighting for their lives and the human race.

Lauded by fans and critics alike, this should

be a sure-fire hit locally.

JourneymanMeet Dan Vasser, a man whose

life is perfect until he inexplicably

starts to journey back in time,

causing all kinds of trouble in the present.

Some will love it, others will hate it.

Women’s Murder ClubIn the top 10 of ABC

Primetime’s viewing, Women’s

Murder Club is based on James Patterson’s

bestselling novels about four successful

women who decide to set up a murder

investigation team.

ReaperThis comedy drama

aired to rave reviews

from the US critics and should be a hit here

with teens and twenty somethings. The basic

premise is about a guy (Brett) who, on his 21st

birthday, discovers his parents sold his soul to

the devil. Brett is tasked by Satan to hunt

down, and return evildoers let loose on earth.

ChuckThis is one for the teens. Chuck

is a mid-twentysomething who

downloads government secrets

into his brain. Clever plots and humour make

this one a winner.

LifeAnother cop show, this time featuring

a cop that returns to work after he has

just been released from prison for a

crime he didn’t commit.

Army WivesPopular in the US, this one-hour drama is

Desperate Housewives on an army base.

Gossip GirlAimed at a young audience, Gossip Girl

revolves around a blog that imparts all

the latest scandal about a group of

spoilt Manhattan teens.

Tell Me You Love MeBased on three couples and their shared sex

therapist, this drama offers an unconventional

and frank look at modern relationships.

Mad MenSet in the swinging ‘60s, Mad

Men takes a look at the advertising

sector in a world that is rapidly

changing. Surprise sleeper hit of this year perhaps.

CalifornicationStarring David Duchovny,

Californication is an adult drama

about a guy who struggles to

raise his teenage daughter whilst trying

to revive his career and struggling with

various addictions.

New TV showsM-Net has a host of new shows for 2008 some of which are destined to become huge hits. Marketing Mix gives its views on which shows will

be hits based on US and UK ratings as well as critics’ reviews and gut instinct. For the local shows, Marketing Mix expects them to be winners.

NEWS

Will consumerconfidence affectyou?

Simplify to succeed

The results of the latest MasterCard

Worldwide Index of Consumer Confidence

have been released and, (not surprisingl),

South Africans are not as positive as they

were a year ago.

The study also found that 66 per cent of

banked adults expressed an interest in

travelling abroad (up from 30 per cent in

2005). The number one reason for travelling

abroad? Shopping for anything from apparel

to luxury items and electronics. Visiting family

and friends followed as well as sightseeing

and business.

The study was conducted in October 2007,

and asked consumers to make predictions

about the next six months. This study was

carried out prior to Eskom’s debacle, and the

announcements about interest and prime

lending rates that are shooting up. So while the

results do not take these issues directly into

account, they do indicate future trends and

predictions, and reveal consumer sentiment.

According to Eddie Grobler, general

manager, Africa, MasterCard WorldWide, US

consumer spend is at its lowest in 15 months;

world GDP growth rates are in a decline, and

are only expected to recover around 2010.

“Interestingly, developed countries are seeing

a slowdown, while developing countries are

still going strong,” he says. SA’s overall index

score has dropped from 86.5 per cent this

time last year, to 83.7 per cent.

The indexes show that consumer

confidence has declined in regard to

employment (job availability and job security),

regular income and the economy in general.

As interest rates and inflation climb, consumers

feel the pinch. Second or moonlighting jobs

are lost as employers cut costs. Marketers can

expect a drop in household spending too.

And while the Quality of Life Index remained

stable at 80 per cent, though there is no

doubt that power cuts, potholes and interest

rates have impacted negatively on this since

the October study was carried out. “The NCA

has not had much impact – perhaps the

consumer feels more protected. Or perhaps it

is still filtering through,” says Mike Schussler,

Chief Economist at T-Sec.

Confidence in the stock market remained

stable, but it will be interesting to see how

this is affected in the next few months.

The Constitution started it, and the National Credit Act has taken it a step further – plain

language, and the emphasis on communicating in a way that the ordinary citizen can

understand. The Consumer Protection Bill, due to be enacted in 2009, will take it even further,

ensuring that consumers aren’t duped or misled by contracts and marketing messages that are

filled with jargon, small print and hidden clauses.

There are three core areas that are affected by new legislation. The first is content. What goes

into contracts, advertising and marketing communications must be comprehensive, fair and

honest. For example, fees and insurance terms must be accurately explained upfront. Bait

advertising is no longer permitted.

Secondly, wording must be accurate. Certain phrases are not permitted according to new

legislation, so marketers should brush up before they sign off their communications (the National

Credit Regulator’s website, www.ncr.org, has info about this). For example, ‘blacklisted consumers

welcome’ is now illegal. Likewise, ‘no credit checks’.

Thirdly, the format of an ad or a contract must adhere to specifications for font size,

or equal prominence of terms and conditions, for example. Small print is no longer

permitted. Cooling-off periods must be explained in writing as well as explained verbally to

the consumer.

Requirements and conditions must be made obvious, and must be written for the average

consumer, with minimum experience. “Treat all customers as if they are first time borrowers, or

first-time buyers of your services and products,” says Candice Burt, a plain language lawyer and

partner in Simplified. Even DVD rental stores will have to ensure that their contracts speak to a

consumer who has never loaned a DVD before.

“Many of the agencies we have approached are struggling with this, because their business is

built on creative concepts. But we believe that this is simply a challenge to them to create

creative advertising that is also fair,” says Frances Gordon, partner, Simplified. She adds that

agencies might do well to revise their creative processes to include legal review of all copy and

design before the concept has been developed (instead of afterwards, as so many agencies are

doing now).

Look out for the Protection of Personal Information bill, which will further enforce these

regulations, in the next few months. Gordon and Burt warn that while regulations usually can’t

act backwards, there is talk that the Consumer Protection Bill may be able to. So any brands that

are trying to sneak one last rogue campaign in before this becomes law could find themselves

dealing with a nasty law suit in a few months’ time.

For more information visit www.simplified.co.za.


NEWS

A classic crooner with striking

vocals. He will be touring in March

Rock, blues – powerful and ambitiousJoe Cocker

With a Little Help from my Friends

Good Charlotte

Broken Hearts Parade

It’s fun and young. The well-known

band tours SA in March

Punk rock – upbeat, elation and energetic

Johnny Clegg

Cruel, Crazy, Beautiful World

The local legend is touring again and

receiving favourable media attention

World – honour, positive and patriotic

Loyiso

Dali Wami

Beautiful, melodic and romantic ballad;

perfect for Valentine’s seasonR&B – romantic, warm and loving

Gang Of Instrumentals

Cry For Me

A crossover hit that is very popular Afro pop – uplifting and happy

Cassandra Wilson

Sunshine

Powerful chorus that is captivating Jazz – lustful, yearning and vulnerable

DJ Nu-Mark

Imagine

Funky instrumental take of the John

Lennon classic that will be instantly

recognised

Hip-hop – kindness and peaceful

Shawn Lee

Bollywood

Quirky and funny instrumental with

Indian charm

Chill – fun and spirited

Easy Star All-Stars

Money

Well-known and groovy Pink Floyd

cover done reggae style

Reggae – relaxed and comfortable

Puff Johnson

Forever More

Huge hit in urban market with strong

romantic and loving associationsR&B – smooth, sensual and slow

Which music is currently

enjoying its 15 minutes of

fame or would make a brilliant

soundbed for an ad? The list

below includes a wide range

of local and international

music styles and, most

importantly, it highlights

which songs are hip and

happening within different

target markets right now.

The following list is courtesy

of Roy Harman, who manages

South African artists and works

on various music entertainment

productions and events.

For more information on

how to match your brand

with an appropriate song

e-mail [email protected]

or call 083 407 4928

Just add music

Act and song Why it’s hot Genre and emotion evoked

EXPERT OPINION by richard duncan


Millions of rands are wasted each year inthe pitching process.

New accounts are critical to fuel an agency’s

growth, replace clients that have left and budgets

that have been lost, and fertile ground for them

to flex their strategic and creative muscles.

Certainly, pitching for accounts is a necessary

part of the advertising game and not that

dissimilar to the tender process in other sectors,

but agencies seem to occupy an unenviable

position that they struggle to retreat from. They

certainly haven’t helped their cause by allowing

themselves to get caught up in the excitement

and frenzy of pitches. They have also had to

contend with increasing corporate governance

bureaucracy that may have the clients’ best

interests at heart, but certainly fails to take

into account the uniqueness of the advertising

creation process.

From my own experience as both a marketer

selecting agencies and an agency executive

trying to be selected by prospective clients, I

have seen first hand the disruptive influence of

Procurement Departments who increasingly

wield enormous power within corporates across

the globe. Sadly, it usually manifests in a

destructive manner in the pursuit of saving a

few pennies.

As you have probably surmised, I am not

convinced that marketers have got the pitching

process right, nor do I feel that a pitch is the

best way to go each and every time. I certainly

am not impressed when I hear of pitch lists of

six, eight or even a dozen contenders. I think

three is more than sufficient. Any more suggests

that the client doesn’t know what they are

looking for. Either that or they’re lazy. On top of

that, I personally think twice before agreeing to

pitch on an account if the client is not prepared

to offer some sort of pitch fee, however small,

to help towards costs. Having witnessed some

pitches turn out to be no more than fishing

expeditions for ideas or aimed at pressurising

the incumbent to drop their prices, pitches

without pitch fees seem like commercial

Russian roulette.

For me, one of the key measures of selecting

an agency is the chemistry between them and

the client, both in terms of company culture

and shared values as well as on an individual

level. The pitching process doesn’t always allow

for the true chemistry to reveal itself as everyone

is ‘acting’ on their best behaviour and trying to

anticipate and meet the client’s expectations.

While a pitch will test an agency it is perhaps

not the most realistic setting in which to put

an agency to the test. More often than not, the

agency doesn’t have full access to the facts and

will rarely be able to engage the client in the

same way as if they were already awarded

the business. This leaves the agency open to

misunderstandings and misinterpretations and

can allow one agency to win on the basis of

one clever idea.

Rather than the straight pitch, I am a firm

believer that a series of chemistry sessions and

meetings combined with a thorough review of

agencies’ credentials and consultation with

their existing or past clients can reveal far more

than the false setting of a pitch.

Besides the obvious resource wastage that

pitches entail both in terms of hard costs and

people, pitches can prove disruptive to an

agency’s normal operating practices and are not

the most responsible way of procuring business.

Ask yourself this: Who ultimately pays for the

costs incurred in agencies’ new business pitches?

I think pitches in their current form are

outdated. Certainly pitches serve to galvanise

and motivate staff, but at the same time they

put huge pressure on staff and rarely generate

work that sees the light of day.

In short, pitches have become an accepted

way of doing business because agencies have

failed to stand their ground and instead have

chased the money, often at enormous costs.

For clients, I suspect that pitches have

become a crutch of sorts for them to lean on.

They may be a way of levelling the playing field

and enabling apples to be compared with

apples, but I personally think that they are a cop

out as there are better ways to draw comparisons.

Any marketer worth their salt should be able to

identify the key characteristics, strengths and

weaknesses of an agency without having to

resort to a full-scale pitch.

Sadly, many executives rely on the protection

of the decision by a committee and try to

rationalise the selection process of what is often

an emotional purchase decision, like buying a

house. Perhaps there is something to be learnt

by comparing pitches with dating. Which route

would work best I wonder; the five-minute

speed date, the long drawn out engagement,

the pre-arranged marriage or the good

old-fashioned dinner date? �

Richard Duncan

Sydney, Australia+61 41 154 [email protected]

The pitching game

Any marketer worththeir salt should be able to identify the keycharacteristics, strengthsand weaknesses of anagency without having to resort to a full-scalepitch.

“

”


Levi’s jeans were born at the time of the 1873

California Gold Rush – an apt origin for what is

arguably the world’s ‘gold standard’ denim

brand. The Levi’s jeans brand arrived in South

Africa formally in the mid-1990s, when the

country’s social and political environments were

more in line with the company’s values and

ethics (this was a company that had opened

racially integrated factories in the American

South before it was mandated by government).

But as Debbie Gebhardt, marketing director

of Levi Strauss South Africa says: “The Levi’s

brand was far from unknown in South Africa

when the company made the decision to enter

this market. In fact, the brand was highly

sought after, with people bringing Levi’s jeans

home for friends and family whenever they

travelled abroad. This ‘limited availability’ added

to the inspirational appeal and desirability of

the brand, and together with its renowned

high quality, ensured that its entry was met

with enthusiasm.”

Levi’s jeans have been worn by everyone from

rock rebels and music icons to screen stars and

even presidents. Today, the brand competes

with designer denim labels, in an ever more

crowded apparel market. “Consumers are faced

with so many choices and for those that can

afford it, niche brands offer the opportunity to

buy into an elitist lifestyle which caters to a need

to stand out from the crowd. To say, however,

that this is a movement by the mass market is

not the case in the South African context. The

Levi’s brand is by far the market leader in the

jeans category and designer brands remain for

those that can afford their super premium

prices,” says Gebhardt. Levi’s has its own super

premium range – the Levi’s Blue and Levi’s

Copper ranges. Also, a limited edition collectors’

range of T-shirts (the ‘1 of 100’ range), created

in collaboration with up-and-coming young

designers, was recently launched.

The appeal of a pair of Levi’s is not limited to

its fashionability. The Levi’s brand is marked by

Target market“Levi’s’ target market is free-thinking 16 to 24-year-olds, split 60/40 male/female. They are confident,highly social individuals who value originality andlook for quality and authenticity in products. Theylove brands and buy into those that allow them toexpress their own sense of style while deliveringcomfort and credibility,” says Debbie Gebhardt,marketing director of Levi Strauss South Africa.

“The Levi’s brand has always had strong associa-tions with timelessly youth-relevant platforms, such asmusic. By staying in touch with what’s happening atgrass roots level with the youth in SA throughconsumer dialogue, trend watching & occasionalfocus groups, the Levi’s brand manages to maintain its relevance in an increasingly competitiveenvironment. What’s important is that the brand stays true to itself in everything it does, andbuilds on proven areas of success while constantly innovating to stay fresh,” she says.

According to Gebhardt, the 501 jeans range is still the top selling locally. The women’s Evajeans (developed locally for the specific proportion of the African figure (smaller waist to hipratio) has also been successful.

BRAND ANATOMY

The denim standard

BRAND ANATOMY


its focus on ethical codes of business and product

manufacture as well as its ongoing commitment

to the community and the environment. “How

products are made, by whom and with what –

all these factors are becoming more important

to consider, and this is borne out by consumer

studies globally,” says Gebhardt. The company’s

business policies include, among others,

addressing social biases; as early as the 1920s,

the company was advertising in Spanish and

Chinese, to specifically target and serve these

often neglected markets. During the 1960s, it

would not open new plants in those US towns

that imposed racial segregation. And in 1991, it

was the first multinational company to develop

a code of conduct that made provision for the

individuals who manufacture their products; the

company set guidelines for the safety and health

of its employees as well as for their treatment in

the workplace.

The company’s guidelines also take the

environment into consideration, with Sourcing

and Operating Guidelines, Global Effluent

Guidelines and a Restricted Substances List, all

of which seek to control the impact that Levi’s

manufacturing has on the environment. “As a

brand, we have always prided ourselves on a

‘profits through principles’ approach; and this is

reflected through our Terms of Engagement

contract that we employ with our suppliers,

which devotes a chapter to environmental

sustainability,” says Gebhardt.

Globally, Levi’s was the first major brand to

launch a fully sustainable pair of jeans (Levi’s

Eco Jeans) in mid-2006, while locally there are a

few projects in the pipeline. “We are currently

conducting a project with the National Cleaner

Production Institute (NCPI) to further ‘green’ our

facility. We have also recently introduced video-

conferencing to cut down our employees’ travel

and are launching a small 100 per cent organic

cotton line that aims to educate the consumer

on the lack of ‘green’ manufacturing options in

South Africa,” says Gebhardt. “This is an

important issue to which everyone needs to

contribute but ultimately consumers have the

opportunity to drive that change.”

Community involvement and support, as well

as a dedication to social issues, such as the Aids

pandemic, have also given the Levi’s brand a

certain leverage. Locally, Levi’s has four

Community Involvement Teams (CITs), which

identify and organise several community projects

each year. “The programme is driven and

managed by the staff as opposed to management.

Locally, we have focused particularly on helping

those in need, from the elderly to street children,”

says Gebhardt. These initiatives include Levi’s

Original Music (which supports local original

music) and the Levi’s Red for Life programme,

which addresses the HIV/Aids pandemic.

Gebhardt says that the denim brand has built

itself and leveraged its initiatives through its

commitment to a local association with a

property literally embedded in its genes – music.

South African musicians lend their voices and

their fan appeal to Levi’s causes, making the

brand message irresistible to the youth that are

the target.

Another brand dimension which holds

huge market appeal is the sassy advertising

campaigns that have, over the decades, made

this brand a firm favourite. You may remember

the ad featuring the ‘blind’ voyeur in the petrol

station bathrooms or the sexy blonde who uses

train tracks to cut her jeans? Levi’s is making

good use of this ‘street cred’. “I believe that as a

sexy brand, we are demonstrating to people,

specifically the youth, that you can be sexy AND

responsible. And, encouragingly, we have

seen this approach resonate more and more

particularly with the younger generation – we

see it reflected by the youth,” says Gebhardt.

The Levi’s brand appeals to just about

everybody, regardless of age or race. According

to Gebhardt, the brand achieved this through its

use of relevant, local properties in its Original

Music and Red for Life campaigns. “Levi’s is one

of the most widely recognised brands in the

history of the apparel industry. It has evolved

for over 135 years by remaining firmly in

touch with the youth market. Going forward,

the brand will remain true to its pioneering

heritage, seeking to uncover consumer

insights, probing global trends and innovating

to meet consumers’ ever-changing needs,”

says Gebhardt. �

Red for LifeThe Red for Life programme uses a variety of media platforms to reach its target market (particu-larly the youth) with its messages. “While traditional ATL mediums like TV and radio are stilleffective in driving awareness, I would argue that their ability to influence or inspire action out ofthe receiver – particularly on weighty issues such as HIV/Aids – is questionable. We have foundsuccess through a more interactive, non-traditional approach because, for this communication,it’s important that it engages the receiver in totality. It should add value to their lives, challengetheir thinking and cater for their needs, fears and preconceived ideas. And what makes thispossible is that non-traditional media allows one to be specific when targeting the endconsumer,” says Gebhardt.

TV and radio are also expensive, while non-traditional media approaches (mobile testingcentres, condoms, etc) make a difference and drive real value for the brand. And by allaccounts, it’s working. “Over 51 000 people have been tested, including many top localmusicians and celebrities, the offices of the President, two United States Congresswomen, theCOO of the SABC and DJ Fresh and his team, live on air,” says Gebhardt. The campaign washelped along by the SMS service established in collaboration with Karabo; people could SMStheir location to the service, and it would reply with the details of the testing station nearest tothem. The service received over 2 000 SMSes in a little over six weeks.


What has become of creative writing,clever journalistic reporting and the smart,

skillful use of the English language? Where

have the verbal artists and language craftsmen

gone? I write this not as a prude – I use slang

and enjoy a risqué joke at the best of times,

but since when did it become acceptable for

the printed and spoken word of companies

and broadcasters to include swear words,

vulgar common language, sexual innuendos

and even blatant in-depth descriptions of sexual

organs and activities? And yet a bigger

question is: When did it become necessary to

stoop this low to sell goods and services?

Currently, we have casinos depicting phone

sex. We have voices (well, noises!) on the radio

simulating orgasms. Guavas and oysters

appear on huge public billboards advertising

strip clubs and, my favourite, simply because it

is so obtuse and reminds me of a calendar to

be found in a panel-beater’s workshop, a

naked women holding a piece of cake apparently

advertising a Cape Town restaurant.

Furthermore, there has now arisen an apparent

obsession with bodily functions. A toilet roll

manufacturer says that we should be quite keen

to overindulge in vindaloo as, with its product,

we will look forward to sitting on the loo longer

(yeah right!) It seems too that marathon

runners suffer from diarrhoea while running.

(Gee, thank you for telling me that).

Motor car companies refer to ‘cardinal

knowledge’ (sic), I discovered the word

‘decadent’ being used to sell mayonnaise and a

financial services company using phrases like

‘bullshit’. None of this is clever writing – it’s

boring and unintelligent.

Where is the originality, the beautifully scripted

words that invoke in the consumer thoughts of

the real benefits of the product, the real positive

sense of what they are buying? Granted, there

may be many people out there who enjoy this

type of humour and perhaps they like to

visualise themselves stuck on the bog all

morning, feeling endlessly grateful for their

double/triple/quadruple ply toilet tissue. But I

think you may find just as many people who

would rather use their imagination than be

thrown figuratively into a small room that smells

rather badly.

Perhaps in the early days of ‘independence’,

when we were revelling in our freedom,

certain members of the community may have

misinterpreted the Constitution as a wonderful

piece of work that says ‘we can do, say, and

behave’ in whatever way takes our fancy.

In fact, to that end, I was blown away when

reading that apparently the word ‘fokol’ can,

in certain circumstances, be used on radio as it

is regarded as a colloquialism and is, by and

large, acceptable to speakers of indigenous

languages (BCCSA ruling). However, this does

not extend to the English version of ‘F*ck all’!

Now I give up… surely they mean the

same thing!

Recently, I gave my daughter the weekend

newspaper magazine as it contained an article

on her latest teen heartthrob. However, I

noticed while flicking through it that, while

there is a lovely pic of Zak Efron… just a

couple of pages before it is an advert that

screams ‘weak erection, early ejaculation’.

Two pages later there is a beautiful pull-out

educational supplement for children….

followed directly by the good old ‘date club’

(we are not prostitutes or escorts) classifieds.

Do we not do market segmentation

anymore? Do marketers not identify specific

target markets? Are audiences all the same?

Are we all just moving towards one-size-fits-all?

I have finally reached the conclusion that

copywriters, journalists and even scriptwriters

have lost the plot (pun intended). I used to enjoy

watching Isidingo with my daughter but even

that has become unbearable – rape, gangsters,

drugs, murders, election fraud, affairs, mercenaries,

corruption and so on. Where is the good stuff,

does it have to be bad or rude to entertain?

And after reading a recent newspaper report,

I cannot believe that a journalist reporting on

the horror of an attempted rape resorted to

using words such as ‘vagina’ and ‘penis’. I

would assume that in a crime of this nature

those body parts are generally the ones used –

how tasteless and offensive to the victim to be

quite so blunt!

To me the English language in South Africa

today is a vision of its former self – please can

we all do something about it before we

degenerate into adopting a series of grunts with

finger movements? �

Helen McInteeacademic directorIMM graduate School of Marketing(011) 628 2038 [email protected]

Vulgarity – I don’t buy it

by helen mcintee EXPERT OPINION

To me the Englishlanguage in South Africatoday is a vision of itsformer self – please can we all do something about it before we degen-erate into adopting aseries of grunts with fingermovements?

”

“

7 DAY [B]ITCH


21/01/08I don’t wake up at 5am. I won’t claim to. My alarm goes of at 6.30am,

sometimes… Today is one of those. The alarm goes off, I scramble to shut

it down. Fifteen more minutes’ sleep. Then I’m up, showered and shaved.

Clothing is important to me so I make a point of taking time to pick out

what I wear. It’s not always worth it though.

Then breakfast, tea, check e-mails, blogs, blog aggregators and feeds.

Pack everything up and I’m on the road.

The trip to work isn’t too bad: twenty minutes to half an hour and the

day begins in earnest.

Login to PC at work, check e-mail, blogs and feeds. Then coffee.

Smoking is a part of my day that I cannot refuse (10am, 1pm, 3pm and

home time are smoke breaks).

I get through meetings, blog posts, e-mails and more, and then I head

home. Twenty minutes to an hour and a half, depending on how much

shedding of its load Eskom is doing.

22/01/08Got a meeting in Pretoria at 11.30am. Honestly considered not going in

to work. Loads are being shed. But meeting has to happen.

Get to work, the usual again: login, e-mail, feeds, blogs, blogging and

twitter (chat).

Leave for Pretoria to meet with the chairperson of GoldenKey. It’s a

long drive.

Check e-mail on the road and respond. Get to the University of

Pretoria, check e-mail again, blog a bit. The meeting is extremely positive.

Back in the car and back to work. The whole round-trip takes close to

four and a half hours. Joy.

Work finishes. I visit my girlfriend (after all, tomorrow night is boys’

night). Head home.

23/01/08It’s ‘8 Thirsty Wednesday’. This means drinks with the lads. Rush through

the day. Straight from meeting to meeting to work and then to

McGinty’s.

I call ahead to book a table. Done. Send out the weekly ‘8 Thirsty’

e-mail to the lads. Response follows and the meeting is set.

Talk sh*t for the entire night, end up discussing drug testing in golf

and whether it’s worthwhile. No conclusion.

24/01/08Thursday is a very in-between day. This week even more so. Eskom has

gotten me down. I am depressed about SA and it’s hard to be depressed

when you run www.sarocks.co.za. I am that guy. The one who holds the

positive flag for everyone. It’s not happening.

Go to work; smoke. A

bad start to the day. 10am,

smoke. It’s getting worse,

now with a headache. No

training.

Gym? Ha! As if I have time. I must make time though.

Leave work after dealing with IT department, student societies,

chairpeople, writers, editing, marketing, sales and subscription

departments, all in one day. Lovely.

Definitely heading to gym.

Get to gym, and it’s dark. No lights, no generator. That’s twice in one

week. Awesome. No gym. No dinner, no nothing. Ah, the problems of

the privileged.

25/01/08Friday is a tough day. It’s hard to wake up because I know it’s party night.

That means a full day of about 20 to 22 hours of wake-time. Mission

through the day but at least it’s THE WEEKEND BABY! (Thanks Gareth

Cliff for that one.)

I Facebook people to see what plans are lined up for the weekend.

I also twitter, blog, e-mail, blog and check RSS feeds.

Leave work at a fantastic 6pm. Go straight to a dinner, then to

Manhattans. Stay till 4am, by which time I have been awake for about

22 hours or so... Finished.

26/01/08No rest for the wicked, they say. Wake up reasonably late. Make breakfast

for my girlfriend and we eat outside under the cloud cover. Get straight to

work on blogging and connecting with people who’ve been waiting for

me all week. Send out e-mails and start compiling blog posts for the

week on both my blogs. Also planning the launch of a new blog, so

I have lots of work to do there.

End off the day with drinks at Bulldogs. Why Bulldogs? I work right

there everyday, then get taken back to that area for drinks? Please man.

27/01/08Sundays, bloody Sundays. I love Sundays and this one is no exception.

Wake up and make breakfast. Get the Sunday Times. Spend a few

hours reading David Bullard’s column, blogging, playing Xbox 360 and

checking e-mail.

Then I veg out. Sundays are ‘takeaways and a DVD’ days. The 8pm

movie usually stinks. We get Steers and a DVD and watch ‘till I fall asleep.

My girlfriend wakes me on her way home.

The week officially ends with me reading the book of the moment:

Gonzo. �

Nic Haralambous – editor/blogger/business strategist


What do Hugo Boss, Mumm Champagne,Flexbender, Exclusive Books, Bacardi and 5FM

have in common? In a nutshell, they have

successfully marketed to the gay community (or

LGBT – Lesbian, Gay, Bisexual and Transgender –

community). These are brands that have realised

the potential that the LGBT market has, and

have also taken the right steps to communicate

with it effectively. And you can bet your fabulous

Pink Rand that they have more support and

loyalty from this community than those of their

competitors who have been slow to

acknowledge this market.

It is estimated that about 10 per cent of the

population of developed countries is lesbian or

gay. Locally based Hot Salsa Media has been

conducting research since 2001, it has found

that 10.8 per cent of the adult market is gay or

lesbian. “In perspective, in these groups there

are more gay and lesbian people in SA than

there are white people,” says Viv Quann, senior

group strategist, Hot Salsa Media.

However, research is difficult to carry out.

“The respondents are difficult to identify as the

only element they have in common – their sexual

orientation – is invisible or intangible,” says

Quann. According to Morne Ebersohn, publisher

of local gay magazine Wrapped, there is the

problem of where to sample from. “We have no

database to draw on for a study of this market.”

Nonetheless, the profile of the gay community

has been raised, thanks to the entertainment

media (think Will & Grace, Queer Eye for the

GAY MARKETING

Think pinkCourtesy Queer City Productions

GAY MARKETING


Straight Guy or The L Word, all of which screen

on DStv), and new legislation (specifically, the

Civil Union Act, which now recognises same

sex marriage). This has opened up huge

opportunities for the hospitality industries here.

Ezemvelo KZN Wildlife Resorts has seen a jump

of over 300 per cent in bookings and a 100 per

cent increase in the number of LGBT weddings

at its resorts, reports Quann; all this simply

because it marketed itself correctly and has

trained its staff in dealing with gays and lesbians.

Mainstream media coverage of gay events

has boosted the gay community and gay events

industries. “All the media coverage has helped

us to start doing bigger things, because brands

and companies trust us to do bigger things,”

explains Pieter Rossouw, MD, Queer City

Productions.

Stereotypes, generalisations and assumptions

have blurred the marketer’s understanding of

this sector. “The gay market is one of many

sub-cultures, and these must all be understood,

which will take time,” says Ebersohn.

The 2006 Gay Press Report placed the buying

power of the gay and lesbian market in the USA

at US$641 billion. Mark da Mata, marketing

executive at Pink Advertising, says: “while it is

true that a fair proportion of the sector is in the

upper LSM bracket, there are a few things that

should be taken into account.”

For example, gays and lesbians have been

found to be far more entrepreneurial than other

populations. Hot Salsa Media found lesbians

earn as much as heterosexual men, with 25 per

cent earning more. Compare this with studies

that put heterosexual men and women side by

side, and you find that 34 per cent of these

women earn less than men. “That’s because

one in three lesbians is a successful entrepreneur

and one in four gay men is an entrepreneur; for

their heterosexual counterparts it is one in six,”

says Quann. This is usually because gays and

lesbians don’t have the family responsibilities

that heterosexuals have, although Hot Salsa

Media reports that locally, 24 per cent of

lesbians and five per cent of gay men have

children living in their homes.

Further food for thought, is the fact that a

fair proportion of gays and lesbians are

students, falling into the 18 to 22 age group.

“They are students without disposable incomes.

Yet this is the right place to create loyalty and

build a brand,” says Rossouw.

One thing’s for sure: brands are starting to

show greater interest in this market. The 2006

Gay Press Report found that advertising in the

gay and lesbian press was up 205 per cent since

1996, reaching $223.3 million. Over 183

Fortune 500® brands were active in the gay

market as of 2006 (compared with 150 brands

in 2004). The report found that the most

popular product categories are travel, financial

services, automotive, fashion and entertainment.

Locally, this market is still wanting for services

and products that take their needs to heart.

Ebersohn explains: “The gay market is not

under-served, but it can certainly be better

served.” says Ebersohn.

Gay media in South Africa:Wrapped magazineMambaonline.comMambagirl.comGay PagesExitGaypeers.comThe Pink TongueBravo Brava, Radio 2000.

In perspective, in these groups there are more gayand lesbian people in SA than there are white people, Viv Quann, Hot Salsa Media. “ ”

Cou

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y Q

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Cit

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oduc

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Courtesy Queer City Productions


He points to the financial services industry,

which may have realised that gays have

disposable income, but have not developed

financial packages or products tailored

specifically for them. “Retirement packages,

banking and other financial instruments should

take these consumers very seriously,” says Joe

LaMuraglia, founder and managing partner of

US-based Targeted Diversity Marketing and

publisher of gaywheels.com.

Consider Subaru, which started marketing

just one model of its vehicles to the LGBT

market two years ago; “We surveyed the market

first to ascertain percentage of ownership of this

brand on the outset. It was 0.5 per cent. At the

end of the second year, this had jumped to 3.5

per cent, which is over R2 million in revenue,”

says Quann.

In the US, LGBTs have specific websites

geared to them, such as gay financial network

www.gfn.com; there does not seem to be a

local equivalent. But locally, gay couples who

are living together but are not married, do not

have the option of a joint bank account, while

airport lounges do not keep gay magazines.

Ebersohn emphasises how the first bank, airline

or hotel, to take that step will lead the market.

Snuggling up to the LGBT market is not

always easy. In the US, conservative, right-wing

groups (such as the American Family

Association) launch boycotts against companies

that advertise in the gay media, making it even

more daunting for brands looking to follow in

their footsteps. But it’s about time that brands

got excited about talking directly to this market.

“The advertising interests and receptiveness of

the gay market is not being addressed by the

traditional and most of the existing gay media.

We think that in the gay community there is

enormous advertising potential that is laying

bare,” says Ella Lay, content manager,

gaypeers.com.

Specialist agencies, such as Pink Advertising

and Hot Salsa Media locally, may offer brands

the best understanding of this market, and will

know where, how and when to break through

the clutter of traditional marketing messages.

Advertising to this market must be subtle and

must show an understanding of the gay lifestyle.

“The gay market is tough and unforgiving. You

can’t lead them by their noses,” says Rossouw.

Da Mata adds that understanding gay

relationships is also key. “But more important is

the understanding that being gay is not a sexual

thing. It’s about lifestyle and mindset,” he says.

Segmenting by age group or lifestyle interests is

more positive. LaMuraglia suggests that religion

and politics be kept out of ads. One-size-fits-all

ads, catering to the masses, won’t endear you

to this market (keeping in mind that gays and

lesbians will have different needs and shopping

habits, for example, and also that the LGBT

market has various sub-cultures, each of which

wants to be addressed directly). “Use a

gay-targeted message to relate to the target

market… if you are going to show people,

don’t show a straight couple. Take time to think

about your market,” says La Muraglia.

Marketers who are concerned that targeting

the LGBT market will alienate their straight

customers should tweak their campaign material

accordingly, so that the messages and creative

they place in gay media is suited to the

audience and is sensitive to it. Nando’s has

done just this – consider its ‘chicken to come

out for’ campaigns, as seen in gay print titles.

The good news is that specialised targeting of

the gay market increases the perceived quality

of the brand, and gays will pay more for these,

GAY MARKETING

EventsCape Town Pride festival:www.capetownpride.co.zaJohannesburg Pride Festival:www.joburgpride.orgThe Pink Loeries: www.pinkloerie.comMother City Queer Project:www.mcqp.co.zaOut In Africa film festival: www.oia.co.za

Courtesy Q

ueer City Productions

Courtesy Q

ueer City Productions


according to da Mata.

Brands are reminded that they should be

seen to be in it for the long term. “Many

companies have mistakenly believed that they

can come into the LGBT arena, throw a few

bucks at the market for a month or two and the

market will be so grateful it will run and buy

their products or services immediately,” says Quann

A company’s service also needs to address

this market correctly. “Your staff members need

to learn to speak without bias or assumption.

They shouldn’t assume that every person they

speak to is straight, married and has kids. If they

are married and have kids, staff shouldn’t

assume that they are married to someone of the

opposite gender,” says Quann. Non-gender

specific language is especially important.

Traditional media formats targeting the local

LGBT community are seeing major growth.

Wrapped magazine, for example, has watched

its sales figures growing from just 32 per cent in

April last year to around 70 per cent in

December. The Pink Tongue, a recently launched

community newspaper, published by

Independent Newspapers Cape, is taking

gay news and lifestyle features to the gay

communities around Cape Town and Gauteng.

Distribution of the title’s 15 000 free copies is

through various gay-owned and gay-friendly

establishments. “Before the paper was

launched, various NGOs (such as the Triangle

Project) were approached and they all gave

the thumbs up to the concept,” says editor,

Gary de Klerk.

The newspaper is tasked with challenging

homophobia, and it achieves this by featuring

and following up on current news, including

articles dealing with homophobia. The publication

embraces homosexuality and publishes a

mainstream monthly publication that shows gay

life and lifestyles. The newspaper is the ideal

environment for cars, cosmetics, banks and

investment companies, travel operators, alcohol,

speciality brands, shops and clothing stores.

“Brands and products need to be aware of the

fact that the gay market is picky; it is aware of

the fact that it is often ‘targeted’ by brands and

is therefore in a position to choose who it wants

to support,” says De Klerk.

The good news for marketers is that when

targeting the LGBT market, they are freer to

experiment with events, activations and online

tools. “As long as it’s the right product and it is

presented in the right way,” says Rossouw, who

has watched some brands try to enter this

market and fail miserably.

Events are one affordable option for brands

seeking exposure to this market. Rossouw has

also found an increasing number of brands

want to get involved, especially as the quality of

event production improves. “It’s not that there

is hesitation on the part of advertisers or sponsors.

It’s just that until recently, there was a lack of

structure in the planning of events – proposals

and documentation, for example, and the

exposure for these events,” he says. Events must

be of a high quality – the market demands it,

and because it is becoming increasingly

acceptable to be openly gay or lesbian, events

really need to deliver something extraordinary.”

Da Mata further emphasises donations to

gay causes and the development of corporate

policies should be looked at. Global Rental (a

locally based company offering local and

international car rental services) is allocating five

per cent of its profits to two LGBT non-profit

organisations. The campaign relies on LGBT

websites to forward an e-mail advertising the

services of Global Rental and the LGBT initiative

that it has committed to, so that it eventually

GAY MARKETING

Gay car of the year:www.wheels24.co.za recently held the second annual Alternative Car of the Year Awards,in which car fanatics cast their votes in categories, including Corrupt Politician’s Car,Straight Car and Gay Car. Nominees in the Gay Car category included the BMW 3 Series Cabriolet, Mini Cooper, AlfaRomeo Spider and Audi TT Roadster. But the winner, with a whopping 8 700 votes, wasthe Peugeot 207 Coupe Cabriolet. According to Wheels24 editor, Wilmer Muller, the keycharacteristics highlighted by online voters, which set the Peugeot apart includedstylishness, fashion ability and uniqueness.


becomes viral. “This is measurable, to the cent,

actually, as it is online bookings done through a

single URL created only for this campaign,”

explains Quann. The brand is successfully building

its profile among a market of which a large

portion are successful, upper LSM individuals,

who have more opportunities to travel and

therefore more opportunities to use the rental

services provided by Global Rental.

Online tools are great options. “The gay

market talks and interacts online a lot more

than straight markets do, with chat rooms,

social networks and dating sites allowing more

social interaction. These platforms also allow

them to meet other gays without possibly

offending others,” says da Mata.

Gaypeers.com, a local social networking

website, was launched in October 2007, and

now has over 1 500 members. Lay says that the

majority of the members are LGBT (between

80 and 85 per cent are male). “There is a small

percentage of straight individuals joining the

website as well. However, it must be stipulated

that the content on the website and the

marketing activities are solely directed towards

the LGBT group.” She says that online marketing

is highly popular and efficient for advertisers

who want to market their products within the

gay community, especially because the Internet

is the only medium that covers the gay community

thoroughly and extensively. “Even in

underdeveloped, suppressed and highly

homophobic societies such as Uganda, the gay

community groups or gathers together and

stays in touch via the Internet,” she says.

Website mambaonline claims to reach

43 000 people a month through its lifestyle

website. The site reaches urban gay men and

women aged 18 to 45. Site content includes

weekly lifestyle features, daily news,

entertainment and a popular online dating

service (Meet Market), which boasts in excess of

18 000 members. According to a survey of

visitors to the site, 76 per cent own PCs; 60 per

cent are regular cinema-goers and restaurant

diners. Fifty-two per cent travel internationally

every two years. Eighty one per cent are

frequent magazine readers, and 21 per cent

have a personal income above R15 000 a month.

Look out for the growth of targeted ad

networks, says LaMuraglia, as these will help

marketers speak to LGBT consumers in their

own voice and on their own turf. “The

proliferation of blogs and social media networks

has increased the raw number of gay

consumers online, but from a marketer’s

perspective, it is difficult to manage multiple

campaigns to an increasingly fragmented

market,” he says.

Get the marketing, communications and

service right, and your brand is in for a long and

rewarding love affair with the LGBT market,

because this is a brand loyal market. Hot Salsa

Media found respondents prefer to purchase

from gay-friendly companies, even if their prices

are higher. They feel it is important not to buy

from companies who are hostile toward them.

Eighty per cent of respondents reported that

they would change their attitudes towards

purchasing brands that support them, with

73 per cent saying that they would purchase.

Fifty-seven per cent of respondents reported

that they have changed the brand they

purchase based on a company’s positive stance

toward the gay and lesbian community. Of that

number, 76 per cent stayed with the brand for a

year or more. “The best thing about this market

is that they become brand ambassadors when

they are served in the right way,” says Rossouw.

LaMuraglia too points to gaywheels.com surveys,

which saw 86 per cent of GLBT respondents

considering a company’s policies towards them

before purchasing a product. “Statistically, we

are loyal to brands that are gay friendly and that

support our media,” he says.

And once the gay market has adopted a

brand and endorsed it, the straight market will

quite likely follow suit. “Gays are perceived as

chic and to have style,” says Rossouw, pointing

to the metrosexual trend as one example of a

gay-pioneered trend.

It would seem that the LGBT market is

untapped, and in need of brands bold enough

to snuggle up with it. But not all brands will

benefit from a foray into gay marketing. The

fashion, cosmetics, fragrance and car markets

will find it relatively easy to get a foot in the

closet door. Baby products, on the other hand,

should avoid trying to woo gays. “While there

are a lot more gays adopting children now, this

is still a small niche,” says Ebersohn. �

GAY MARKETING

Who is the gay market?Mambonline has done some research, and has found that:� Over 65 per cent of this market falls between LSM 8-10� Over 80 per cent aged over 25 own their own homes� Over 15 per cent own a second home� Over 70 per cent take more than five power breaks in upmarket settings a year� Over 25 per cent are self-employed entrepreneurs� Over 30 per cent have tertiary education


The Eastern Cape is home to some of SouthAfrica’s treasures: the Karoo, Addo Elephant

Park, the Tsitiskamma forest as well as pristine

beaches. This is also the home of the Iron Man

competition. The region is well supplied with

airports, railways and ports. With investments

numbering in the millions, and development

initiatives promising to further grow this region,

it is a market area that cannot be ignored.

Marketing Mix takes a closer look at this

province, and all that it offers the marketer.

OverviewAMPS 2006 figures found that 14.8 per cent of

the total population lives in the Eastern Cape;

almost 53 per cent are females. Thirty-two per

cent of the province’s population is aged 16 to

24; 24 per cent is aged 25to 34. Twenty eight

per cent of the Eastern Cape population has a

household income of between R600 and

R1 000 a month; 5.4 per cent earn between

R8 000 and R14 000. Total provincial personal

disposable income is estimated at an annual

R50 billion.

Almost 80 per cent of the province’s residents

speak Xhosa as a home language. English and

Afrikaans are home languages for 4.8 per cent

and 11.5 per cent of the population respectively.

Eighty five per cent of the province’s population

is black, with almost eight per cent coloured

and seven per cent white. AMPS also found that

there has been an increase in truck advertising

in the province, and it is the biggest consumer

of Amstel Lager.

The Eastern Cape’s economy saw growth of

4.8 per cent in 2005 (up from 4.2 per cent in

the preceding year). Annual GDP growth is also

on the up. The main contributors to this

growth are finance, real estate and business

services, followed by government services and

manufacturing. The automotive industry is a

major source of investment and GDP for the

province. General Motors invested R700 million

in a plant, when it launched the H3 in South

Africa. Volkswagen is awaiting completion of its

R750 million paint shop. And Daimler Chrysler is

upgrading its facilities in East London. Farming

and horticulture generate around R2 billion for

the province, according to Stats SA.

“The Eastern Cape has 15 per cent of South

Africa’s population with Port Elizabeth and East

London being the sixth and seventh largest

cities respectively, with populations well over

one million. These consumers, having not been

targeted by marketers, are not yet necessarily

brand loyal,” says Simon Wall, sales director,

Tractor Outdoor. “With the massive infrastruc-

ture expenditure in the Eastern Cape and with

disposable incomes growing, leading marketers

are provided with an opportunity to entrench

their brands in the Eastern Cape,” he says.

Industrial developmentsSeveral industrial development zones (IDZs) are

attracting local and foreign investment.

According to information published on

www.coega.co.za, the 11 000-hectare phased

Coega development zone will create industry

clusters dedicated to export manufacturing

companies in the region. This IDZ is set to

attract foreign and local investment in the

manufacturing industries; the sites are serviced,

and there are flexible lease and utility prices. Key

priority investment sectors include metals,

textiles, automotive, services, chemicals and

energy. News reports indicate that a deepwater

port is being built in this zone, and this has

attracted investment from Alcan aluminium

smelter as well as a Seark shrimp farming project

(both of these investments amount to millions).

The East London Industrial Development Zone

has grown since its inception in 2002, to

number more than 100 fully serviced sites and is

home to DaimlerChrysler South Africa as well as

renowned component manufacturers. It also

offers opportunities to businesses in the

automotive, marine aquaculture, agro-processing

and pharmaceutical industries. This IDZ is also

focused on attracting local and foreign

investors. Some of these projects may be

affected by the power crisis, but it seems they

will continue to run smoothly for now.

“The Eastern Cape has not been affected by

load shedding to the degree that Johannesburg

has – we are managing it,” says Neil Hart, MD,

Boom Town Advertising. It is involved in the

Govan Mbeki renewal project, which is

modelled on such urban regeneration projects

as we have seen in Newtown, Johannesburg.

“With regard to the Govan Mbeki renewal

project, it is a longer term project where a

number of things have to be addressed first in

EASTERN CAPE INTELLIGENCE

Eastern Cape rules

© Graeme Bridger



order to progress to a stage where investors

can be approached,” says Hart. This

development is worth about R50 million,

says Hart, while that of Coega is worth around

R30 billion. He says that the major golf estates

in the region as well as game reserves

should be watched; they will continue to draw

foreigners. He points to the Shamwari Game

Reserve, which has been voted the Best Game

Reserve in the World for the fifth year running.

“Coega is also one to look out for as it is

expanding rapidly, as well as the Kouga

Development Agency,” he says. As Wall

explains, these developments will continue to

attract Indian and Chinese companies, especially

since South Africa is seen as a launching pad

into Africa.

TourismTourism in the Eastern Cape is faring well, with

figures showing growth in the number of

visitors (particularly foreigners) to the province.

Media mixRadioAlgoa FM reaches 786 000 listeners every week

(RAMS 2007), 57 per cent of which are male.

The majority of listeners are between the ages

of 16 and 49 years (with the core market falling

into the 25-49 year category). Almost half of lis-

teners are black; and 35 per cent are coloured.

About 334 000 listeners are in LSM 7-10, and

this group has recorded 24 per cent growth,

according to United Stations.

The station’s format is adult contemporary;

Summer Lovin’Nelson Mandela Bay Tourism and the Eastern Cape TourismBoard’s Summer 2006/7 Research Survey reported the followingfindings:• 84 per cent of respondents were domestic tourists and 16 percent were foreign tourists; this shows a decrease of 4 per cent indomestic respondents compared with the 2005/6 period, and anincrease in foreign respondents from 11 per cent.• Of the foreign visitors, 25 per cent were from Africa. • The majority of domestic visitors were from Gauteng, followedby the Western Cape, Eastern Cape and KZN.• Most of the respondents from abroad were from the UK,Ireland, Germany, Sweden, the US, New Zealand, Australia,Switzerland and Italy. • Compared with previous years, there has been a markedincrease in visitors from Ireland, Botswana and the UK.• There was a fairly even spread of respondents from each agecategory, with 31-40 year olds accounting for 20 per cent ofrespondents. They are followed by age groups 16-20, 41-50, 26-30 and 51-60. • In terms of occupational status, the strongest market is profes-sionals, which account for 35 per cent of respondents. They arefollowed by students, self-employed, state employed, pensioners,other and unemployed.• The majority of respondents stayed in Nelson Mandela Bay for11 days or more. Twenty-five per cent stayed 3-5 days, 18 percent between 6-8 days and 14 per cent between 9-11 days. Thestatistics reflect that, compared with previous years, there is anincrease in people staying for 11 days or longer, as well as anincrease in short stays.

• The majority of respondents indicated that they have visitedNelson Mandela Bay more than three times. Most of the first-time visitors were foreign visitors. • There has been an increase in the use of self-cateringaccommodation, second homes, guest houses, camping/caravanning accommodation and backpackers’ lodges. • The majority of respondents spent more than R500 or more perday per person. • Most respondents made use of a telephone to book accommo-dation, followed by Internet/e-mail, travel agent and tour opera-tors, walk in, family and friends, timeshare, booking agency andother. However, for international visitors, booking via Internet/e-mail was more prevalent.• Most respondents were motivated by friends and relatives tovisit Nelson Mandela Bay. Twenty per cent were motivated bytheir previous visits, followed by Internet recommendations, mag-azine exposure, brochures and business. • While shopping and entertainment is less of an attraction thisyear, the beach is increasingly an attraction to visitors. The wildlifeand adventure pursuits have also seen increased interest. • The majority of respondents said they perceive Nelson MandelaBay as a safe destination. Only two per cent of respondents saidthat it is unsafe. • The wind, the beach and the weather are the least enjoyedaspects of the area.• Only 30 per cent of respondents were aware of the SummerSeason Programme this year compared with previous years (this may be because the campaign started late due to financialconstraints). However, overall ratings for the Summer Seasonprogrammes were all high.

Radio listening (RAMS Feb 2008 and AMPS 2007)

Station Past 7 days Ave day Ave HH income Average


programming includes the usual news, sport

and weather as well as community and local

information. “Our local advertisers get to feel

more of an ownership and involvement being

close to the station and its personnel, but both

national and local advertisers benefit from our

focused approach,” says Algoa FM sales manager,

Dennis Karantges.

CKI FM Stereo also operates in the region as

a national SABC station. There are also a hand-

ful of local community radio stations which

serve the smaller communities.

NewspapersThe newspaper sector is well developed, with a

range of daily, weekly, weekend and free

community titles distributed in the province.

According to AMPS 2007 figures, newspaper

penetration in the province has risen to 26.5 per

cent, from 25.2 per cent the previous year. And

while this is still the lowest penetration across

the country, this is a sector that looks set to

grow, especially in developing regions (the

townships and new development zones). “Our

province has also seen a recent boom, so there

are many more businesses springing up, which

means there are more advertisers,” says

Mauneen Charter, Chief Sales Officer, Avusa

Community Newspapers. Two new malls opened

in Port Elizabeth, with a third opening in April

2008. “Once these developments attract talent

and empower people economically, newspapers

in the area might see an increase in circulation

and readership,” says Reinard du Plessis,

advertising manager, Die Burger Oos Kaap.


Events Calendar 2008Nelson Mandela Bay Splash Festival, 21-24 March 2008; www.nmbt.co.zaIronman South Africa, 13 April 2008;www.ironmansouthafrica.comGrahamstown National Arts Festival, 26 June- 5 July 2008; www.nafest.co.zaKirkwood Wildlife Festival, 28 -29 June2008; www.widlsfees.co.za2008 Biltong Festival, 11 - 13 July 2008;www.somerseteast.co.za/biltongfeesRhodes Trail Run, 12 July 2008;www.rhodesrun.za.netCitrus Carnival, 16 August 2008.Hogsback Arts Festival, 21-30 September2008; www.hogsbackinfo.co.za/springAddo Rose and Garden Show, 25-27October 2008; www.addorose.co.zaUitenhage Street Carnival, 30 November-1 December 2008.

Eastern Cape community newspapers

Eastern Cape newspapers

Title Distribution Circulation(ABC Jul-Sep 2007)

Estimatedreadership

Readers

Title Circulation (ABC Jul-Sep 2007)

Readers



Community newspapers appear healthy and

stable. Many of the papers are looking at

launching online, following market trends, while

others have already done so.

The many developments in the province are

driving newspaper growth, though Charter says

that this is still in the early stages, and adspend

has been mainly in the dailies. “There is no need

for new newspapers at this stage as there are

sufficient to cover all areas,” she says.

Economic pressures will see newspapers in

the region feeling the pinch. “We can expect

less growth and consumer spend – money is

tight and people are scared to spend. But if they

have something to market or sell, they still need

to advertise, so we have not been adversely

affected as yet,” says Charter. She believes that

economic pressures will shake the industry up.

Du Plessis finds that Die Burger Oos Kaap’s

circulation has remained somewhat stable. “Due

to economic constraints, consumers are more

aware of their habitual/impulsive purchases and

cut down on non-essentials,” he says.

Community magazinesMyWeek has magazines in two zones in the

province, specifically East London (25 000

copies) and Port Elizabeth (30 000 copies); both

of these were launched in late 2007. “Both

publications have been well received by both

the readers and the advertisers,” says Amanda

Brinkmann, operations manager, Media24.

These magazines deliver readers with a high

income, and Brinkmann suggests that this

income stretches further than that of someone

living in Johannesburg, because comparatively,

housing costs are lower in East London and Port

Elizabeth. “I do not believe that the middle-class

market is more so or less so present in any

specific area – there is growth and forward

movement everywhere in SA,” says Brinkmann.

Outdoor advertisingThe outdoor advertising industry in the Eastern

Cape is growing steadily. “With the previously

limited outdoor media channels available to

local as well as national businesses in the

Eastern Cape, the growth in the outdoor media

industry in this area is providing a welcomed

solution for advertisers,” says Wall. He adds that

outdoor advertising in the region is subsequently

new, fresh and affordable compared to TV,

radio and print. Wall believes that the Eastern

Cape traditionally has not had good stock of

outdoor opportunities due to the conservative

outlook of the municipality and outdoor

advertising budgets being split between

Johannesburg, Cape Town and Durban.

“This has changed due to advertisers now

seeking to gain a foothold in the area and with

the municipality changing its view on outdoor

advertising,” he says. Clients can expect a larger

ROI than they might see in Johannesburg or

Cape Town, thanks to the affordability of sites

and the comparatively uncluttered environment.

“Prime sites are those situated in the heart of

the cities of Port Elizabeth and East London,

which attract consumers across all LSM groups.

Positive factors include good transportation

routes, diversified mix of retailers and service

providers, along with the rejuvenation of the

CBDs attracting consumers to the heart of

cities,” says Wall.

With economic pressures forcing consumers

to spend less on luxury items such as

magazines, Wall predicts that there will be an

increase in the use of outdoor. �

Eastern Cape conference venuesBushman Sands Hotel and Game Reserve: facilities include a Gary Player-designedgolf course, big game viewing and a spa. Conferences for between 12 and 90delegates; all venues are air-conditioned. Team-building events are also catered for. www.bushmansands.co.zaCape St Francis Resort: conference capabilities allow for hosting of up to 130delegates. Accommodation both self-catering and B&B. Various activities offered,including hiking, tennis and golf. www.capestfrancis.co.zaFancourt Hotel and Country Club Estate: hosts up to 250 people for conferences(and includes a conference hall, boardrooms, breakaway rooms and a ‘hidden’ timberbungalow. Facilities also include a golf course (hosted the 2003 Presidents Cup golfcompetition), spa and hotel. www.fancourt.co.za.Feather Market Conference Centre: Main auditorium can seat 1 187 guests; sixvenues as well as breakaway rooms. www.feathermarket.co.za.Kariega Game Reserve: conference facilities include two rooms able to hostbetween 18 and 80 people. Accommodation available in a number of venues.Activities include game drives, river cruises, mountain biking and fishing, amongothers. www.kariega.co.za.Nelson Mandela Metropolitan University (NMMU) Conference Centre:auditorium capable of hosting 120 delegates, with two smaller venues available for 40 and 12 delegates respectively; foyers ideal for cocktail parties and exhibitions for250 people; the restaurant caters for 130 diners. Venues also available on campus.www.nmmu.ac.za.Victoria & Alfred Guest House: three conference venues can host from five to 100 people. www.victoriaandalfred.co.za.Wavecrest Resort: Intimate conference centre seats 44 delegates. Various team-building activities also offered. www.hoquality.co.za/wavecrest.

Community radio listening (RAMS Feb 2008)

Station Past 7 days Ave day


After a recent call-in radio show, I was forced

to wonder, once again, how we attract the

right people to the marketing profession. The

programme topic was The Importance of

Career Guidance and it was frightening to

realise just how many scholars flounder when

making subject choices in Grade 9, and again

when deciding which career path to follow.

Having spoken to many parents, diverse

views were forthcoming. There are those who

believe that career choice is determined

parentally – based on family background and

cultural input (yes, there are still those who

believe that girls ‘waste tertiary education’).

Many parents suffer from ‘I Should’ve

Syndrome’. That is: ‘When I look back I realise

I should have been a lawyer, plumber or

salesman and so that is what I am

encouraging Johnny to do’. And some who

couldn’t give a continental and leave their kids

to find their own way or blame the school if

Sophie brazenly wanders into the world of vice

marketing (very profitable, I believe).

The most thought-provoking view, for me,

was offered by a gentleman who regards career

guidance in any form as a load of *&%$#@

because, after all, a “job is merely a means to

an end’ and kids should realise they need to

make a living and any old means will do. That

concerns me. I am sure there are relatively few

people making money out of what they are

truly passionate about. But many saying ‘if only

I had…’ or ‘I wish I could…’. Perhaps we could

institute a ‘job-swap’ programme – I am sure

that for every plumber wishing to be a

hairstylist, there is a stylist itching to be a

mechanic or a mechanic born to pursue

medicine. A swap around would probably result

in every square peg fitting neatly into its little

square hole. (Let me rethink that

mechanic/stylist fit!)

Bottom line, I come into contact with

many people who express an interest in

marketing, but aren’t sure exactly what it is.

There is the age-old confusion between

marketing and sales; marketing and

advertising; marketing and public relations. No

one outside the profession really knows exactly

what we do.

The OBE schooling system, despite its critics,

is geared to produce learners who are far more

sussed when it comes to real-world functioning.

They have, for example, been studying the

basics of advertising and film production since

Grade 7. They know what an income statement

and balance sheet are by Grade 9. The schools

are pushed to their limits financially and, sadly,

one of the areas considered a ‘luxury’ that many

cannot afford is career guidance. What are we

as a profession doing to go out there and spend

an hour or so supplementing textbook learn-

ing? Giving a few insights which fascinate so

many – once they know what we actually do!

Good qualitative researchers make a living

out of the ideas and input of the target

market. They have so much to say – and so

much to learn. On a small scale, I have had the

opportunity to interact with schoolchildren,

introducing them to case studies and getting

their input on the future of brands they relate

to. To see them mesmerised by the basic facts

about Wonderbra or M&Ms is rewarding. Their

views on how vehicles and cellphones should

be marketed responsibly are awesome. And yet

these young minds are lost to other

professions because no one is really

marketing Marketing.

Many have stumbled into marketing or

advertising by default. Several chose to study

advertising because they genuinely believed

that they were going to star in ads as a first step

to becoming the new Halle Berry. Thousands

opt for positions as sales reps as ‘a place to

start’ without realising the importance and

potential of this crucial role in business. The pro-

liferation of ’PR poppies‘ and ’event managers‘

bears testimony to the fact that hundreds are

clueless as to the real value of these disciplines –

PR is NOT downing shooters with clients at wet

T-shirt competitions and event management

goes beyond organising a dinner for three top

Party officials and their connections, lawyers

and hitmen.

Perhaps marketing professionals could make

one resolution for 2008. Could each one contact

one school, business economics teacher, matric

class, guidance teacher or one teen TV show and

go out there and market our profession – pas-

sionately – so as to educate, entertain and pass

that passion on to the young, vibrant minds out

there. They are the foundations of our brand

architecture for the future. Dare you! �

The marketing of

by michele venter-davies EXPERT OPINION

PR is NOT downingshooters with clients atwet T-shirt competitionsand event managementgoes beyond organising a dinner for three topParty officials and theirconnections, lawyers and hitmen.

”Michele Venter-Davies

faculty head: Marketing andAdvertising, AAA School (011) 781 [email protected]

“

marketing

We are born with stereopsis – the brain’samazing ability to instantaneously combine

two slightly different views into a single three

dimensional (3D) perception of the world

around us. Yet, up until now, most of our

media has been 2D. Finally, 3D technology is

coming to the fore and changing the way we

see the world around us.

After years of false starts, 3D imaging

systems are ready to go mainstream with the

advent of 3D autostereoscopic screens that

require no glasses. From cellphones to laptops

and monitors, the 3D boom is about to hit

your eyeballs. 3D is moving across all media –

cellphones, laptops, point-of-sale systems,

corporate presentations, cinema, Internet and

IMAX. The new 3D HD imaging technologies

will help bring a new dynamic to the world of

business, advertising, art, science and education,

and has already sparked intense debate. 3D

will also transform the public’s view of galleries

and museums, with virtual tours taking one

right into the buildings in which works are

housed and enabling one to walk around

the corridors and to be inside the painting,

visualising impossible scenarios. This creates a

completely different view, one that is not

available in the real world.

A digital revolution on convergence has been

the enabling technology for 3D re-emergence.

Although technically very complex, a huge

consortium of technological companies and

producers are working together to bring this

powerful technology to the fore.

3D displays have recently become both

increasingly popular and practical in the

computer graphics community. This interest can

be attributed to many factors. In our daily lives

we are surrounded by synthetic computer

graphic images in print and on television and

can now even generate similar images on

personal computers in our homes. We also have

holograms on our credit cards and lenticular

displays on our cereal boxes. And has it really

been so many years since we first saw Princess

Leia projected into thin air in the Star Wars

motion picture? With each new technology or

movie, the excitement seems to grow.

The developments in the computer graphics

industry have also done their part to make

spatial images more practical and accessible.

In the business of computer graphics, the

computational power now exists for desktop

workstations to generate stereoscopic image

pairs for interactive display. At the high end of

the computational power spectrum, the same

advances that permit intricate object databases

to be interactively manipulated and animated

also permit large amounts of image data to be

rendered for high-quality 3D displays.

3D power productsWindow on world (WOW) 3D display products

are unrivalled in their ability to show powerful

advertising messages on flat-panel plasma and

LCD screens. Images can be originally

produced in 3D or converted from existing 2D

for our state-of-the-art digital signage. Global

brands have seen significant revenue growth

generated through 3D screens, creating a

more real experience and message, thus

enticing the customer

Today there is a range of autostereoscopic

displays that can be used in applications

ranging from advertising to scientific

visualisation. As the demand for such displays

increases, the 3D HD and computer graphics

fields face the challenge of demystifying 3D

technology and simplifying the image

generation process by creating uniquely effective

3D images. Volumetric displays illuminate

points in a spatial volume. Parallax displays are

the most common autostereoscopic displays

and are compatible with computer graphics.

3D digital cinema immerses viewers in a virtual

world filled with images so vivid, they can’t help

but respond. Scientific studies have proven

conclusively that viewing in 3D results in deeper

impressions, better retention of information and

a more memorable experience. Science aside,

anyone who has ever watched an audience in a

3D theatre will see kids grabbing at thin air,

while adults smile and appear mesmerised. There

is huge growth potential in the digital content

and 3D markets. As of May 2008, 1 200 digital

3D cinemas will be open in North America and

by the end of 2008 over 3 000 digital cinemas

will have 3D capability worldwide.

Cinemas across the Western world are

converting to 3D, which will change the face of

advertising and the cinema experience. We saw

the 2006 FIFA World Cup Trophy Tour (and

tournament) filmed in 3D; this was a world first

that opened up huge possibilities for 3D HD,

live action and animation. �

Don Searll

director Haptics(011) 804 [email protected]

3D HD busts out


We saw the 2006 FIFAWorld Cup Trophy Tour(and tournament) filmed in3D; this was a world firstthat opened up hugepossibilities for 3D HD, liveaction and animation.

“

”

EXPERT OPINION by don searll


Packaging is no longer just the pretty paperthat covers your favourite cheese and

differentiates it from its neighbouring

competitor brand. It has the power to extend

the life of its contents, and maybe even call out

to your customers from the shelves, with jingles.

Packaging can change colour when its contents

are stale (or too hot to drink). And today, it can

also help to save the planet.

Marketing Mix takes a closer look at the

impact that consumer trends are having on

packaging as well as how new technologies

are taking packaging to places it has never

before been.

Going greenBirds do it, bees do it. And now Wal-Mart is

doing it. With the global focus on the

environment, and ways of preserving our

natural resources, the manufacturing and

packaging industries have come under fire.

‘Cradle-to-grave’ packaging (ie packaging that

ends up in rubbish dumps and landfills instead

of the recycling plant) is being booed by

consumers. Organisations are under pressure to

make products and packaging in a ‘cradle-

to-cradle’ system, where the maximum value is

extracted from existing materials, which in turn

are recycled, re-used or biodegraded in an

environment-friendly manner. The Sustainable

Packaging Coalition in the USA estimates that

worldwide, the packaging industry is valued at

around US$420 billion, and employs more than

five million people. The Coalition acknowledges

that sustainable packaging is a necessity, and is

helping packaging/manufacturing companies as

well as retailers to develop products and

packaging that are acceptable.

Already, consumers in the UK and US are

taking a stand against brands, products and

retailers that have not made a move to cut

excess packaging from their products. Wal-Mart,

for example, has developed a Sustainable

Packaging Scorecard. The retailer’s 60 000

suppliers must provide substantial info about

their packaging, and in so doing, are ranked

against other such suppliers. It may not be long

before local retailers initiate something similar.

According to John Gordon, director, Design

Partnership Brandertising, the global food

packaging industry is now worth US$100 billion

a year and growing at a rate of 10 to 15 per

cent each year. “Anything between 10 and 50 per

cent of the price of food today is for its packaging,”

he says. He also refers to recent research

conducted in Europe, which found that UK

households produce the equivalent weight of

around 245 jumbo jets per week in packaging

waste. More than three million tonnes of the

26 million tonnes of household waste produced

annually comes from packaging. Meanwhile,

150 million tonnes of packaging waste comes

from industry and commerce each year. “These

figures are startling and the race is on to dimin-

ish packaging to its utmost simplistic functional

form. Yes, we most definitely will be following

global trends in this regard,” says Gordon.

Locally, the green wave has not yet hit us as it

has the Europeans. “The green trend may not

have major consequence locally for some time.

From a manufacturer’s point of view, it requires a

lot of energy to make it happen,” says Maciek

Michalski, head of design, Joe Public. “Brands are

aware of it, but consumers aren’t pushing for it

yet. They are more concerned with their health

and the ready-to-eat foods.” Look out for

biodegradable materials, and soy or water-based

inks that will not damage the environment.

Petro-based chemicals will be shunned in favour

of corn and potato starch components. “Brands

and stores will be jumping on the bandwagon,

but they aren’t explaining what biodegradable or

recyclable means,” says Michalski. Some products

may promote their recycling processes, but there

are no recycling plants, so where does all the

recyclable packaging go? Brands will need to

address this holistically.

“All segments of the packaging industry,

especially food packaging, face environmental

issues. Yet packaging is integral to today’s

lifestyle. Nowhere would the loss of modern

packaging be more quickly felt than in the food

processing and distribution system. In

under-developed countries where packaging is

minimal or nonexistent, food losses of 30 to 50

per cent are not uncommon,” says Gordon.

Health kicksWith diabetes, hypertension and obesity

threatening developed populations, there is an

PACKAGING

Pack it in

PACKAGING


increasing focus on healthy living. “South

Africans are definitely health conscious, more so

after all the scares we have had around tainted

foods,” says Michalski.

Healthy school lunches are another trend to

watch out for. “But there is a major duality

here,” says Michalski. “You have to

communicate the health benefits to moms, but

at the same time you have to market to kids.”

Local draft regulations on food labelling and

advertising will change the way foodstuffs and

beverages market themselves. News reports are

indicating that foods that have been claiming

nutritional value and essential health benefits

will have to change their packaging and

advertising to show that they are, in fact, not

essential to a healthy diet. If these regulations,

proposed by the Department of Health, are

passed, fruit juices, iced teas, sweet biscuits,

cakes, desserts, fast foods, savoury snacks and

soft drinks will be affected. This is great news

for the consumer. But will these foodstuffs

survive once they have been labelled the

‘baddies’? Marketing Mix will provide updates

on the regulations as they become available.

Choices International Foundation recently

promoted the ‘Choices’ front-of-pack labelling

system, which sets a scientific benchmark locally.

“In South Africa, there is no one set of labelling

criteria across different companies. There is also

no standard nutrient profiling. The Choices

system is the first to set nutrient benchmarks

that brands must comply to,” says Ruksha

Maharaj, Choices SA programme coordinator. It

will help consumers to make healthier choices,

especially because they make purchasing

decisions within a few seconds and need this

info fast. Research has also shown that

consumers often find current labelling systems

confusing, and this system will address this. The

Choices system will be supported by a strong

marketing and educational campaign, which

will see everyone from marketing executives at

major brands, to dieticians and even the man

on the street learning more about Choices, and

what it means for health and wellness. “And

because product brands are integrated with the

Choices logo, consumers will be able to identify

their favourite compliant brands,” says Maharaj.

Whilst the local branch of this international

Foundation is still in the process of registering as

a Section 21 company, local brands in the

Unilever and Knorr stables have expressed

interest. And the good news is that there is a

local board of doctors and scientists who will be

managing the foundation’s local branch; they

will report to an independent international

board, which sees a local doctor representing

South Africa. “This Foundation, and the Choices

logo and labelling, are credible on their own,”

says Maharaj. “From a marketing point of view,

with health and wellness the fastest growing

sector globally, brands who sign up will naturally

have a better reputation amongst consumers.

And they will innovate in line with the criteria.”

It’s about what’s insideMarketers could be using packaging in a more

holistic way, says Gordon. “To touch on as many

of the senses as possible to get the brand well

represented on the shelf, good packaging is an

all-round experience,” he says.

The Design Partnership was recently involved

in the development of a new brand in the

Middle East called CHUE (Choose How U Eat).

“We literally turned things inside out with the

packaging and had a lot of fun with it. Usually,

most brands would cover their packaging on

the outside with creative visuals or slogans

indicating what is inside. Usually what is inside

is a burger in a grease-stained interior – a burger

coffin.” They decided to play down the exterior

of the packaging and deliver the final brand

punch on the interior. Hence, the burger clam,

once opened, literally became a ‘visual feast’.

Michalski believes we will start to see more of

this locally, especially because we have a large

‘ready-to-eat’ market. Look out for fast-food

packaging that is more appealing and functional.

“Food tastes better when it’s eaten from well-

designed packaging. Sophisticated consumers

will pay more if they get better packaging,” says

Michalski. He adds that South Africa has the

potential to be a leader in the design of packaging

that addresses the needs of the ready-to-eat

market, especially amid the global focus on

Story telling is important, because humans relate tothis. The brand story should be on the front of the labeland it should encourage the consumer to slow downand engage with the product.

“”

Wine in a boxDistell has launched a new range ofboxed wines – Wine on the Move – withthe aim of making its wines moreaccessible (consumers find wine bottlesdifficult to carry, open and preserve).The good news is that the Tetra Prismapackaging is 100 per cent recyclable.“Twenty-five Tetra Prisma packs, flat-tened after consumption, take up thesame amount of room as one emptyglass wine bottle. Hence a quarter lesstruck transporting waste, which meansless carbon emissions into theenvironment,” says Shelley Ellse, branddevelopment, Distell.


simple packaging that allows for greater

portability of food and personal items. “The

packaging experience should be clean, protected,

attractive, promise good flavour, usefulness,

convenience and no worries about contamination.

These attributes will win consumers’ hearts,”

says Gordon.

Long lifeParallel to the concerns about the environment

and our health, is the focus on food and product

waste. “New research projects are underway in

the UK to extend the storage life of fresh

produce by including natural additives in the

standard film mix, allowing produce to manage

the atmosphere within the packaging,” says

Gordon. “This will greatly improve the quality

and lifespan of fresh produce, decreasing

product loss in both the home and supermarket.”

Tiny fractures in the packaging allow the

produce to manage its own atmosphere, and to

hibernate effectively. It is hoped that this new

packaging will reduce food waste.

“A bioactive paper has recently been developed

overseas which is attached to the food packaging

on either the inside or the outside to indicate

the substance’s lifespan or any other problems.

This strip of bioactive paper could be creatively

incorporated into the packaging as a visual food

lifespan monitor,” says Gordon.

Packaging that talks…New technologies could see packaging talking

to the consumer. Gordon points to overseas

company MedivoxR, which has developed Rex

the (disposable) Talking Bottle. This bottle plays

back medication dosage information to visually

impaired patients; the message is either

pre-recorded by the pharmacists as they type in

label info or by patients themselves, by means

of the Rex Starter Kit (includes a special

recorder). The microelectronic technology in the

bottle allows only the user to record or change

the prescription info. A button on the side of

the bottle replays the message. “Wouldn’t it be

cool if Smarties, for example, came in a container

that started telling jokes when you opened it,

and warned you when you only had a few

Smarties left?” says Gordon.

Watch this spaceOther trends to watch out for include clever

packaging (innovative designs or the use of

non-traditional packaging materials). Although

it may be the smaller brands who lead in this

trend, as they are more likely to experiment.

Sarita, a new alcoholic beverage, has taken its

consumers’ needs to heart. Ring-pulls make

these bottles easier to open, and are therefore

ideal for women.

Michalski predicts that we will see more use of

locally made packaging materials for import items,

as this reduces the cost to the environment.

Single servings could also find firm footing in

developing markets; look out for brands

experimenting with this, says Michalski.

And then, look out for design that brings

nostalgia back into the mix. “Story telling is

important, because humans relate to this. The

brand story should be on the front of the label

and it should encourage the consumer to slow

down and engage with the product,” says

Michalski. Customised designs (for example,

Christmas designs) are another great option. �

PACKAGING

Unwrapping South Africa’s ethical consumersAdded Value has taken a closer look at South African consumers and ethical packaging,and has identified four major mindsets that are influencing the way consumers makechoices (see Marketing Mix, vol 25, issue 9/10 for a broader explanation; Ethical consumersunder the microscope). These are not mutually exclusive (consumers may show differentdegrees of each), but there is usually a dominant mindset. This will usually determinewhether their mindset is driven internally or externally. We examined how these mindsetsinform consumers’ choices when it comes to packaging.Empathising: The main driver is the show of solidarity (making small differences in theworlds of others). This is a strong mindset locally. These consumers want to feel proud,empowered and engaged; they respond to fair trade produce and donating to charity, so these should be made clear on packaging, without dominating branding. Also,educational messages should be included to help the shopper make the ‘right’ decision.Campaigns that involve the consumer work well (eg, the brand donates a portion ofspend to charity).Healthy Awakening: Choosing healthy for the good it does the individual, society ingeneral and the environment. This is a relatively strong mindset locally (especially becauseconcerns over diseases like HIV are driving consumers to accept responsibility for their ownhealth). These consumers want to feel pure, healthy and holistic, and respond to safe,healthy alternatives, including organic or super foods. They will read labels and look forinformation about ingredients, key health benefits and customer care line details. Opt forclear packaging that shows off the ingredients. For mums, safety is a key concern as well assomething that’s interesting and exciting for their children. Artificial colours or over-styledphotography should be avoided. Do not over-claim or use pharmaceutical language.Ethical Way of Living (EWOL): Choosing ethical as a way of life, so it informs everydaydecisions and lifestyle. This is an emerging, very niche trend. These consumers want to feeldisciplined, involved and proactive. They will pay a premium for ethical products.Recyclable packaging is key (especially if it educates the consumer and makes recyclingeasier for them, through, say, partnering with recycling centres). The full packaging chainmust be considered. Sincerity in talking about less packaging is key, and don’t ‘greenwash’. Concentrated formulations and refills are great options. Charge a premiumand be aware of the power of this mindset in terms of word of mouth.Ethical badging: Choosing ethical because of the image it projects of being trendy andnoble. This mindset is strong locally, especially among those who have succeeded andwant to be seen to be ‘in with the leading-edge tribes’. This consumer wants to feel savvyand stylish and like they are keeping up with trends. Opt for high quality, premiumpackaging that reflects how the customer wants to be seen. Celebrity endorsements areideal; secondary wrapping (the shopping bag) is also key in showing others that they haveshopped ‘premium ethical’. Display appeal is also relevant (it must look good in theirhomes), as is innovative packaging. On-pack promos are seen as tacky. Brands must bewidely acknowledged to stand for something, as this consumer gives publicly, not privately.

You’ve decided your company needs to runan incentive programme. You’ve expended

considerable time, energy and resources

analysing your current situation; defining how it

can be improved; and designing a programme

to ensure that improvement happens.

Now what?Once an incentive programme is operational, it’s

tempting to sit back and watch the results roll

in. In fact, many organisations do just that ...

only to find that the figures don’t live up to

their expectations.

Why?Because unless a company analyses the results

its programme generates and finds out whether

it’s delivering on its promises, its

well-planned initiative quickly heads down a fast

track to nowhere. Sadly, the only results this

approach generates are wasted time and

money, and a firm commitment from

management that ’we’re never doing that again‘.

According to Fortune, nine out of

10 companies never fully follow through on

their strategies.

So how do you keep your incentiveprogramme on track?Start with these four practices and you’re off on

the correct footing:

1. Practise organisational alignment All operations, behaviours and activities, no

matter who’s doing them or when, should be

aligned to support your vision, mission and

values. That way you know that everything that

happens in your organisation helps drive your

programme strategy.

2. Define your performance measuresYour programme should be measuring your

employee and company performance against

set objectives that tie in with your overall

performance objectives.

Once your programme is operational, you’ll

need to measure it regularly to track improve-

ments and changes.

3. Conduct surveys and dialogue Establish an ongoing dialogue with your

employees, channels of distribution and

customers to find out how you’re doing, how

your programme is doing, and what they feel

about your company and brand as a result.

4. Analyse and apply the dataCollate and analyse the data you’ve gathered so

they can be translated as quickly as possible into

tactics and strategies for improvement and

change to your programme design.

Points one and two are typically built into the

initial programme structure, while points three

and four are concerned with what needs to

happen once your programme is up and

running. It’s also at these points that many

companies start to understand the implications

of managing an incentive when they’re faced

with the task of gathering information and

sifting through it to find what’s relevant.

Going electronic with your dataanalytics An increasingly useful tool for collecting and

collating diagnostic information is a centralised,

online strategic diagnostic system that monitors

and reports on performance, satisfaction,

behaviour, systems and trends across your

employees, channel partners and customers.

There are several applications on the market –

but you’ll need to choose one carefully to make

sure that it does what it says. Rule of thumb:

look for an application that offers the following

capabilities: � Needs and impact analysis, and assessment

tools � Flexibility to monitor and measure diverse

criteria � The ability to customise surveys that fit with

your organisation � Demographic filtering � Benchmark/target scores for comparison

and ongoing performance management � Real-time reporting � Controlled login to ensure all information is

kept confidential � Full integration with your existing systems.

As you can see, developing a strategy for

your incentive programme is one thing. Keeping

Jean-Claude Lattersales director Achievement Awards Group(021) 700 2400 [email protected]

Keeping track of your incentiveprogramme strategy

EXPERT OPINION by jean-claude latter


An increasingly usefultool for collecting andcollating diagnosticinformation is a centralised,online strategic diagnosticsystem that monitors andreports on performance,satisfaction, behaviour,systems and trends acrossyour employees, channelpartners and customers.

“

”


In South Africa’s growing economy, wherethere is still a high dependence on voice

communication, call centres are vital to

consumers to obtain information and support

with service queries, make bookings and also to

facilitate financial transactions and manage

credit. Yet, according to local dipstick surveys, it

is perceived that call centres (whether in or

outbound) do not render a satisfactory

experience. What is more important to

acknowledge is that customers associate a

negative service experience with a company’s

brand rather than with the call or contact

centre. Research confirms that poor customer

satisfaction is the most instantly determining

factor influencing brand reputation today.

In a globally competitive market, where price

and availability of goods has somewhat blurred

corporate differentiation, customer service

remains one of the few areas where a company

can establish a competitive advantage and

achieve differentiation for its product or service

in the mind of the customer. Given the role

that call centres play in the customer service

supply chain, it is no longer adequate to ensure

that service is readily accessible, consistent and

fulfils a basic level of response to queries from

customers.

Companies must take the necessary measures

to ensure that their call centres are used as a

vehicle to positively and consistently meet

customers’ needs, while also delivering their

desired brand proposition to achieve

differentiation in the market, time and time

again. A call centre can have a significant impact

on customer loyalty, based purely on service quality.

Reading a regular survey conducted by Ask

Africa published on www.finweek.co.za, which

rates companies according to the customer service

provided by their call centres, the customer’s

experience, impacts on their satisfaction with a

brand. Time taken to answer a call, ability to

understand and answer a query, knowledge of

the product or service, resolution of the query and

courtesy of agent are rated as the most important

factors that influence callers’ satisfaction.

Likewise, hellopeter.com is a service monitor

website that publishes customers’ ratings and

comments on companies and their poor or

good service, including that of call centres. This

direct feedback certainly puts companies in the

picture about how customers regard their service.

Marketers should play an integral role by

working together with the call centre to deter-

mine how a company’s brand is communicated

to the customer, and also what feedback the

customer is providing about the company’s

products and services that can assist marketing

to respond to the market more appropriately.

Irrespective of whether a call centre is captive or

outsourced, it should be regarded as an

essential barometer that provides marketers

with early warning signals about service

complaints, which can be tackled directly with

customers before they become issues and

impact negatively on a company’s reputation.

Marketers can in turn assist agents to

understand the profile and demographics of

customers, what their interests and needs are

and, if data provides it, what drives their

response to the company’s brands. Marketers

should work with agents to more creatively tap

into the opportunities that call centres present

to communicate a stronger positioning about

and company to the customer during the

engagement over the telephone.

Call centres are also an essential vehicle to

launch a product to market and run promotions

for clients, thereby providing a conduit to

revenue streams for companies. In this regard, it

is vital for marketing and, indeed, sales, to work

cohesively with the call centre to monitor both

statistics and customer feedback. Marketers are

sometimes guilty of not fully briefing call centre

managers about a new campaign and providing

such information at short notice, impeding call

centre managers’ ability to adequately brief their

teams on new campaigns and how these relate

to the overall market position of the company’s

brand. This can be challenging for both

marketers and call centres alike, creating

challenges for agents to deliver effectively which

may affect campaign results.

Unfortunately, all too often customer service

does not meet customer needs, and therefore

the brand that a company may have spent a

large amount of marketing budget and

time on to establish a certain market position,

will fall short of expectations and the

company’s credibility can so easily be eroded

as a result.

As shared in the previous column, a higher

level of collaboration between marketing

departments and the call centre would build a

stronger foundation to add value to customers

and help companies become better informed

about customer needs and expectations and

thereby market their brand more intuitively. �

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

Effectively managing abrand through a call centre

by nicci columbine EXPERT OPINION

Likewise, hellopeter.comis a service monitorwebsite that publishescustomers’ ratings andcomments on companiesand their poor or goodservice, including that ofcall centres.

“

”

Building your Brand in a Retail WorldSue Evered, Strategy Planner for Saatchi & Saatchi, will focus on the

marketing discipline developed by Saatchi & Saatchi to deliver

sustainable results; she will draw from their international experiences

and relate this to the SA environment.

How to Select Alternative MediaGeoff Whyte, Marketing Director of Cadbury’s, has developed a

methodology to select and weight alternative media and to integrate

into the brand communication strategy. Geoff will show you

examples of some really clever communications.

The Best of In-store MarketingLucien D’Avice, MD of Barrows, will explain how to transform the

store into a measured medium, and based on the latest MARI result,

will explain how to use insights for category plans, and how to

develop flexible and effective platform strategies to achieve maximum

retail results. He will also provide specific examples of successful

POS promotions.

Creating a Buzz Xolisa Dyeshana, the Creative Director of Joe Public, and a recent

judge at the John Caples Awards in New York, will demonstrate some

leading edge promotions which create real buzz and suggest exciting

applications in SA.

Competitions, Prizes and Couponing Nnaniki Malesa, Primedia InStore, will guide you through:

• How to gain response from competitions: the prizes and incentives

that work, the media that works, how to track

• The case for couponing – what works, the ROI justifications

• Vouchers, marrying print and mobile.

Retail Advertising Best Practices Gill Randall and John Bowles of the Newspaper Advertising Bureau

(NAB) will report back from the annual Retail Convention in Chicago

about the best uses of retail advertising; they will draw from trends

and research in the US market, and will also discuss what works and

what doesn’t for retail advertising in the USA and elsewhere.

Enhancing Customer Response through DigitalRetail Media Roelf Venter, Marketing Director of Spar, will discuss his experiences

with the first comprehensive retail digital network installed in SA.

Roelf will report on the results and the lessons learnt to date.

His digital partner Mike Bosman, CEO of One Digital Media, will

demonstrate some innovative content applications to stimulate

shopper response.

Best Practices in Digital Signage Technology The technology underlying digital signage is crucial to the success

of an investment into a retail digital network. In an environment

populated by a multitude of technology vendors, what are the key

evaluation criteria that retail network builders should keep topmost in

their mind when selecting a technology? What are the best practices

of a sound technology driving a digital retail network? How do retail

digital signage business models intertwine with technology models?

Chander Nijhon, Head of the Enterprise Division at Apple IMC,

Southern Africa will take us through this.

Pick n Pay’s Media One Stop Shop Craig Lodge, National Trade Marketing Manager, will explain

Pick n Pay’s plans to create a one stop media shop, which will

facilitate brands in accessing the wide range of in-store media

available in Pick n Pay. He will discuss the role of digital media within

this context.

Mobile Marketing at Retail It’s the next big thing in marketing and Chris Rolfe, CEO of Mobilitrix,

will review a range of innovative solutions utilising mobile technology

and integrating it with the total POS marketing landscape. Chris will

review mobile e-voucher solutions, direct marketing techniques and

the value of the mobile channel in the emerging market.

PricingA full day workshop

R2 650 per delegate (plus VAT)

Three or more delegates, R2 250 per delegate (plus VAT).

Marketing at-Retai l Workshop20 May 08

Sandton Sun Hotel , Johannesburg

Enquiries: Daisy Mulenga, [email protected] (011) 234 7008

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

The workshop will focus on best practices across the full spectrum ofmarketing options and activities relating to the retail environment


The cellphone is perhaps the most personal,private gadget around (aside from say, a

pacemaker), and it rarely leaves your pocket or

your handbag. And yet, it is equipped with a

myriad of media and communication technologies,

making it a very powerful media device. “The

cellphone was one of the first electronic fashion

items, which is what drives the majority of

consumers to have the latest and greatest

handsets,” says Antonio Petra, digital director,

Action Ambro’s.

Relative to other countries, local cellphone

penetration is high, with experts placing it at

around 90 per cent. Eighty20’s Fact a Day

reports have indicated that in 2003, 60 per cent

of households did not have a cellphone. In

2007 the proportion was 24 per cent (AMPS

2003, 2007). This makes the cellphone the most

powerful personal digital medium around, with

marketing potential that is astounding.

“Cellphone marketing is the next big wave. I

think it will be bigger than Internet marketing

and that it will have a similar percentage of use

as other digital media have in other countries

(about five per cent),” says Tim Legg, CEO,

Opera Interactive; marketing director Edward

Wicks, says that while hit rates on mobile ads

remain fairly low, it is high when compared with

the online environment, Locally, estimates place

the worth of cellphone marketing at anywhere

between R1 billion and R2 billion. On a global

scale, advertising spend in this sector is set to

increase from the current US$1 billion a year to

$8 billion in 2011 (emarketer.com, November

2007). “We believe that by 2011, the mobile

media market will be at four per cent of ad

spend. At this rate, it won’t cannibalise

traditional media, but it will still be in the

billions,” says Rick Joubert, executive head,

Vodacom Mobile.

Russell Atkins, managing director, Thumbtribe

MOBILE MARKETING

Mobile marketing

New &

Exclusive

for you!

Locally, brands must get involved in this now and try it. It’s simple now, but it will become more and more complex. Antonio Petra, Action Ambro’s.

“”

MOBILE MARKETING


Mobile Solutions, says that South Africa has just

over 40 million subscribers, with an active

installed handset base of just over 30 million.

According to Chris Rolfe, CEO, and Andrew

Cardoza, CTO, Mobilitrix, the number of cellphone

users is set to grow by 15 per cent over the next

few years.

Cellphone marketing offers marketers great

reach. “It overcomes many of the hurdles that

we are presented with in South Africa, such as

lack of fixed address and low Internet penetration,”

says Petra. He goes on to say that the cellphone

is the ideal tool for reaching the growing

middle class, and equipping them with digital

connections. And, of course, it delivers access

to a youth market that is not lured by

traditional media.

Why are marketers still hesitant about this

medium? Petra has found that many clients still

don’t really understand the medium and the

plethora of tools and options that it delivers.

“I think the greatest hurdle for advertising

agencies is that of perception. When I present

mobile advertising products and opportunities,

I often find that the clients look at them from

their own context and judge them as having

little or no value. The primary fault with this

perception is that they are not the primary users of

these products,” he says. There is no blueprint

for how cellphone marketing works, says Legg.

“As usual, people are scared to move to a

platform that is not very well understood and/or

‘tangible’. When you are advertising through a

mobile platform, you can’t drive down the

highway and see your billboards on the side of

the road, so your initial feeling is that the

marketing has been ‘lost’. Only when the hits

start arriving, is it very visible just how effective

it is,” says Philip Belamant, managing director,

PBel Mobile Gaming.

So what exactly is on offer to marketers? The

means of communicating to cellphone has not

changed much (SMS, MMS and Bluetooth

technology is not new). But cellphones have

evolved and are now capable of carrying

hyperlinks that take the user directly to a

website or portal; or links that allow them to

click-to-call or click-to-reply. “As a portable

medium the cellphone is an ideal bridge

between digital and physical worlds – allowing

consumers to receive a brand’s message and

then act on impulse at a point of purchase and

in a very localised manner,” says Atkins.

And then there is the delivery of bar codes

and vouchers, which will change retail marketing

forever. “Stores still need to update their

point-of-sale systems to accept mobile vouchers,

but the technology is there,” says Legg.

So a consumer can view an ad, and use their

cellphone to access a mobile site or Internet-like

WAP portal instantly, where they will find more

info about the product or service and even

experience branded content; they can then

respond to a call to action, by booking a test

drive via SMS, for example, or clicking to

redeem a discount voucher. Consumers can also

register (and give you their details in the

process) and opt in to receive additional info

or content. “Brands can give value back to

consumers through ringtones, wallpapers and

more products and services. Fifty per cent of

cellphones in the market are enabled for this

media. That equates to 15 million phones,”

says Legg.

Cellphone technology allows for location-

based segmentation, efficient targeting and

filtering. “Mobile media has the potential to be

highly targeted, not just in terms of

demographics, but also in terms of time and

location,” says Atkins. After all, as Joubert

points out, each cellphone number is unique

and allows for individual tracking. Increasingly,

the networks and ad services are using this as a

means to profile their entire subscriber base in

order to deliver ever better targeting and

segmentation and to track call patterns, for

example. “It’s really clever. Other media can’t do

this,” says Joubert. He points to other options

such as storyboarding (where a series of ads are

displayed in a sequence), handset targeting and

even context-relevant targeting.

Further benefit to marketers is that cellphone

marketing allows for time targeting and

frequency cutting, which limits the number of

times that each subscriber will view an ad

Location-based segmentationAntonio Petra, digital director, Action Ambro’s, argues that location-based segmentationis still under exploited; while there are some products and services which make use ofthe technology, there are still glitches which need to be ironed out. He points to theSocialite platform in the US, which used location-based segmentation to send itsmembers information about happenings in their surrounds, but did not allowmembers to select what type of content they received, so they received messages thatwere irrelevant. Locally, Vodacom has launched The Grid, a location-based blogging service which is free (ad funded). Users upload content to The Grid (video, pics or text),where it is geo-tagged and then shared with a private network of users who areinterested in events and info relating to that particular location. “We have launched itto the universities and will be rolling it out nationally,” says Rick Joubert, executivehead, Vodacom Mobile.


message. Ensuring that your messages don’t

wake your target consumer at 3am is becoming

increasingly important, not only from a branding

point of view, but also because consumer

protection legislation is calling for more responsible

communications. “Don’t abuse the ‘always on’

opportunity. Make sure you reach people at the

right time and in a way that is relevant to

them,” says Atkins.

Instant feedback and measurability mean

that marketers will know straight away if their

campaign is not hitting the mark. “The cellphone

is a real-time response mechanism,” says Joubert.

When creating a mobile campaign,

entertainment is key – the modern cellphone is

designed for this, after all. Consider Vodafone

Live! and its huge successes, especially in

targeting consumers aged 18 to 34. “In terms

of value for money, this site has the best real

estate around at the moment,” says Petra.

Other entertainment media worth exploring

include music, downloadable content, gaming

and social networking or messaging. “Several

brands have taken advantage of the potential of

sponsored music – Coke and Pepsi as two

examples, and others have distributed advertising

within mobile games,” says Atkins. Marketers

should keep in mind that, while the cellphone is

a very personal device, it is a social device.

“Brands need to find ways to enter this

conversation in a relevant and compelling way,”

says Atkins.

Some brands are sponsoring mobile chat

environments or events, for example. “This is

tricky, so brands need to be careful to involve

themselves in a relevant way – negative word of

mouth spreads more quickly than positive,” says

Atkins. Consider MXit, which has set a

phenomenal standard, simply because it has

leveraged the need for a cheap messaging

service. The platform boasts around six million

registered users, sending about 200 million

messages a day. Experts are predicting that

other such offerings will enter the market and

create new communities around new niches. In

fact, Facebook announced recently that it has

launched Facebook for Mobile Operators, which

is designed to make the site’s social networking

applications work better on cellphones.

Operators are given the set of technical

specifications which resolve usage glitches on

cellphones. Facebook Mobile (which until now

was the platform’s unsupported mobile site) has

6 million users; it is expected that Facebook for

Mobile Operators will grow this mobile user

base. As yet, there is no advertising on this site,

though operators will generate revenues when

subscribers access Facebook.

Mobile gaming is a lesser exploited option

which could fast gain ground. PBel Mobile

Gaming launched recently in South Africa. “We

have been running for one week, and already

have 300 users. We are getting between 700

and 800 transactions each day,” says Belamant.

Users register and download an application

which allows them to download games, upload

their scores and interact with the gaming

website where they post messages for fellow

gamers. Gaming takes place off line, with prizes

for top-scorers. So what’s in it for marketers?

“Every time a player connects to our server, it’s

an opportunity for us to stream an ad to their

phone,” explains Belamant. These can be text

ads or full-screen splash ads (which remain

on-screen until the game has loaded – the

gamer can’t ignore them the way they might

ignore an online banner ad).

Custom development is also available where

marketers can create a form within the

application, which allows the gamer to enter

their details and, say, click to book a test drive;

their enquiry is immediately forwarded directly

to the advertiser. Every time the gamer clicks

through to a new screen or page, the ad

changes. According to Belamant, the trick is to

have a short and sweet ad message that won’t

be ignored. The system allows for segmentation

and targeting, so marketers can be selective

about who sees their ads. Reporting is also

available, so campaigns can be tracked and

measured. Belamant estimates that currently,

half of the gamers are females; general gaming

trends usually indicate a 70 per cent male bias.

“Our core target audience is between the ages

of 15 and 23 years,” he says. Brands such as

cellphones, electronics and other downloadable

content services would do well to get involved

in this medium; giveaways tend to incentivise

higher click-through rates.

Mobile television and video are seeing major

growth in the US; eight million mobile users

MOBILE MARKETING

Please Call MeThe local Please Call Me services are powerful tools for reaching a large base ofcustomers. “I don’t think many clients realise how many people the Please CallMessages reach every day. There are 18-20 million messages sent daily across all thenetworks,” says Antonio Petra, digital director, Action Ambro’s. Recently, an insurancecompany used this platform, at a cost of R11 000; the campaign raised R139 millionworth of leads (all of them valuable because the company had charged a premiumreply SMS fee of R2.50, which acted as a filter). Vodacom’s targeting may soon enablemarketers to tailor the Please Call Me messages according to demographics.

MOBILE MARKETING


watched video on their cellphones in

August 2007, according to a report by

M:Metrics; nearly seven million watched

viral videos. In Europe, research firm

Datamonitor has estimated that in 2012,

there will be almost 43 million mobile

broadcast subscribers. If we are to follow

these trends, we could soon see an

explosion of content designed for mobile,

especially as carriers and handsets

improve, and the quality of viewing

attracts greater audiences. Locally, DVB-H

trials are still being carried out.

According to Astrid Ascar, general

manager: Product, DStv Mobile, the

local trials have seen a general trend of

viewing from around lunchtime,

through the afternoon and peaking at

night, with a surprisingly large number

of mobile TV viewers watching

in-home. The bouquet of channels is

rotated on an ongoing basis, so there

are no trends relating to viewer

preferences as yet, but preferences

depend on the user’s profile.

“Understanding that one has a segmented

market is key to designing a content offering,”

says Ascar. Some content will perform better if

broadcast like traditional TV content (think live

sport); while other programming performs

better in 30-second format (think sports

highlights). Petra believes consumers will go for

short, easy to access content, especially news

and sport. “For marketers, it’s about finding

content that is relevant for the user and

associating one’s brand with that content in a

way that appears personalised and relevant to a

user,” says Ascar.

Broadcasters and marketers will need to work

together to fit this platform into campaign

plans, and then get accurate, valuable reporting

metrics; once the value of the platform becomes

self-explanatory, marketers can offer clients

targeted campaigns that aren’t generated off a

rate card, says Ascar.

With the current cost of access, analysts

believe that uptake of this platform will be slow

until access and technology become mainstream

and more affordable. What’s also raising

concerns is the fact that the cellphone has

evolved to deliver TV far faster than legislation

anticipated; it remains to be seen what ICASA

will do around the issue of whether

DVB-H-enabled phones will require TV licences

of their own, for example.

User-generated content is another tool in the

cellphone marketer’s box, and one which we

can expect to see more of in the next few

years. “Savvy marketers have moved beyond

interruptive communication and now offer

consumers more ways to interact with and

contribute to the brand experience – allowing

consumers to submit their own brand experiences,

or even produce advertising on behalf of

brands,” says Atkins.

Real time push messaging services are another

hot tool. iMob has built its business model on

this principle. Users register, download the free

JAVA application to their cellphones and set up

their own profiles, selecting what sort of

information they want to receive. Currently, the

content selection is around real time events and

directory services. Once activated on the user’s

phone, the application polls the server every few

minutes and pushes the correct profile-matched

news to their phone, explains Nick Herbert,

business development consultant, Opera

Interactive. “The service is also being reviewed

for stock quotes, flight schedules and most

other time sensitive businesses,” he says.

Targeted splash ads appear in between menu

info requests, and are interactive. This service is

currently in the beta-testing phase, but the

iMob team is working to build the user community,

and according to Herbert, the 30 000 user mark

is expected to be the tipping point for serious

advertisers (it currently has around 600 users).

“Our aim is to build a loyal mobile community


and then target users according to their age,

location, gender and content interest levels,

with useful advertising messages. Adverts

will focus around coupons, loyalty and

special discount options,” he says. The

platform will also benefit from the viral

aspect (users can refer friends or pass on

the alerts via email forwarding. Ad metrics

are easily tracked and it is hoped that the

service will add Google AdSense for

Mobile Text Ads locally soon (the search

engine giant announced in September

2007 that it had made AdSense for

Mobile available, created specifically for

mobile browsers). “We suspect that

sport will be the biggest driver for

downloads in 2008,” says Herbert. It is

expected that advertisers will pay

between R5 000 and R50 000 for

advertising on the platform, depending

on the size of the user base, plus

other channel sponsorship options.

“It will be a CPM model until the community

grows to 30 000 USERS and then we can offer

click-model pricing,” says Herbert.

Cellphone marketing is highly effective as part

of an integrated campaign, where it can really

take ATL and BTL further. “If your SMS campaign

is a stand alone campaign, it must be brilliant.

Via cellphone, you have a very short time in

which to engage the consumer with your

marketing message,” says Petra. Also, remember

that this environment is all about impulse

behaviour and instant gratification, says Atkins.

Cellphone marketing is set to grow

exponentially this year, not only in South Africa,

but across the African continent (where it is

estimated mobile networks will be extended,

thanks to investments of around US$50 billion).

“Some brands are already on board and are

doing amazing things,” says Joubert. “All are

coming back after doing a first, experimental

campaign with bigger and bigger budgets, so

we know it’s working.” Much of Vodacom’s

inventory is sold out, which is a good sign that

cellphone marketing is taking off.

The future of cellphone marketing will see

greater use of the various platforms and

products, as brands seek to snuggle up with the

consumer on their terms. Petra looks ahead to

the third phase of mobile marketing, in which

free content and services will be delivered to

consumers in exchange for ad views. Blyk, an ad

funded mobile operator in Europe, is one much

publicised example of this model, which offers

users free airtime minutes each month, on

condition that the user views a certain number

of advertising messages. Petra believes this

model will find firm support locally, where some

markets don’t have the money to buy airtime.

He also believes that, moving forward, we

can expect increased focus on topics that

include restricting marketing to children via

cellphones (asking for an ID number, for

example, in the registration process) as well as

more refined permission-based campaigns,

especially as consumers become more

aware of their right to privacy and protection.

“Response rates for untargeted push campaigns

are dismal, and they are potentially damaging

from a brand reputation perspective,”

says Atkins.

Marketers can no longer afford to shuffle

their feet on this one – the time to learn and to

implement cellphone campaigns is now.

“Locally, brands must get involved in this now

and try it. It’s simple now, but it will become

more and more complex,” says Petra. �

MOBILE MARKETING

Spam and ScamSpam and scams continue to be an issue, with a handful of unscrupulous players outto make a quick buck. According to Tim Legg, CEO, Opera Interactive, legislation suchas the Consumer Affairs Act are making it more difficult for marketers to chargepeople for entry into competitions. “Some people will use SMS to enter competitionsto make money, sometimes with no prizes at all. My advice to any client who wantsto use this mechanism is to use it intelligently. It must be totally transparent,” saysAntonio Petra, digital director, Action Ambro’s. Advertisers who try to trick consumersinto divulging their personal info or grab these details from return communicationswill be rejected, says Andrew Cardoza, CTO, Mobilitrix.And while the Electronic Communications Act and the WASPA guidelines are in place,these are not exhaustive; the industry must self-police, says Petra. Quite simply, thistechnology is developing so rapidly that legislation just cannot keep up.

Savvy marketers have moved beyond interruptivecommunication and now offer consumers more ways tointeract with and contribute to the brand experience –allowing consumers to submit their own brand experiences,or even produce advertising on behalf of brands. Russell Atkins, Thumbtribe Mobile Solutions ”“

There was a time when shop owners would

stand outside their stores and ring a bell to

announce that they had special wares on offer.

If you go downtown to where real trading still

occurs, you will find similar scenes even now.

Except that the bell ringers have been replaced

by loud ghetto blasters and ’town criers‘ soliciting

potential customers to visit their store. Crude

perhaps, but no doubt effective.

Similarly, in the early days of marketing it

was accepted that the more you rang the bell

at the right times, the more you could command

desire and buying behaviour through the

brand alone – and it was through this

’advertising‘ that you could build brand success.

This gave you control over your audience.

That, however, was in an era when

traditional media choices seemed to have

reached a plateau. For some time there were

few real alternatives to the Big Four: print,

outdoor, radio and television. Sure, the

localisation of media (the local paper, regional

radio and so on) allowed us to target

consumers more precisely. But this seemed to be

the limit in reaching the consumer closer to

home, while for those who could afford it (the

mass market) a national brand campaign was

still the weapon of choice for mass exposure. In

short, it was a lot easier to reach consumers

who reacted to this heavyweight communications

approach by buying the most heavily advertised

products and services. Simple, really.

So we were ill prepared, to say the least, in

anticipating the full effect of the explosion of

new media options on consumers and their

need for information. We responded by delivering

even more messages across ever more media to

even more audiences, creating a deafening

cacophony of marketing hype. Was this the

beginning of the end of mass marketing?

In part, yes. This emerging media is shattering

behaviourist marketing tenets and proving that

businesses are not in control of the strings

anymore – they cannot command desire or

response. Customers now have access to an

unprecedented amount of information and

can communicate from any place, any time

they choose.

As media fragments, so does the ’mass‘ in

mass marketing. Having said that, there is a

caution that this may be a First World

phenomenon which we will have to keep an

eye on as it is rushing ahead at an astounding

pace. I say this as currently there are around

four million Internet users (so I’m told) and the

growth seems relatively slow, but it is quite

remarkable when you consider the growth in

mobile telephony! So we may continue to

need some mass market bell ringing for some

time, as it is still the most accessible form of

communication to most of our market.

The window that emerging media has

opened for us communicators (talking to those

who have access to new media), reveals a personal

experience economy in which customers are in

control and where brands are accepted on the

basis of a personal experience. So no matter

what we tell them through bell ringing we have

to make the brand experience a more rewarding

and meaningful one to gain loyalty – in essence

more experiential and even tactile.

Interactivity has changed the nature of

marketing and marketers must now reach

beyond their traditional roles of raising awareness.

They must drive traffic into an extended world

of intimate interaction in sales and customer

relations. This means that the advent of ’permission‘

marketing will become as important in some

dialogues as general bell ringing in others. �

Marc Spriestersbachmanaging director Publicis Johannesburg(011) 519 [email protected]

A new era for

EXPERT OPINION by marc spriestersbach


Interactivity haschanged the nature ofmarketing and marketersmust now reach beyondtheir traditional roles ofraising awareness.

“

”

bell ringing?


Community media has been experiencingexplosive growth, with more and more advertisers

clambering to get on board.

The question is, will this growth continue?

And how will these media cope with the

challenges imposed by the economic downturn?

Newspapers:John Bowles, joint MD, Newspaper Advertising

Bureau (NAB) believes that we will see more

community newspapers launched this year. “The

role local media plays in the community, its

acceptance and anticipation will maintain and

grow at reader level, and advertisers should

continue to support and grow their revenues,”

he says. But he adds that the aggressive growth

of titles will slow. Chantel Erfort, acting editor,

Cape Community Newspapers, agrees:

“Although figures show that newspaper readership

in developing nations – South Africa included –

is increasing, I suspect the growth in community

newspapers will level out this year as media

houses seek to consolidate the ground they’ve

gained, rather than launch new titles.”

Yet the quest for consolidation is not the only

factor that is impacting on these media. Thanks

to the economic pressures imposed by the new

credit act, steep interest rates and inflation,

publishers expect 2008 to be a tough year for

advertising. “Currently, the economic scene is

not wonderful. Stats SA reports a slowdown in

retail sales, the reserve bank continues to

increase interest rates, there are inflationary

pressures that are out of the hands of South

African businesses and consumers, and a credit

act that protects consumers but also limits the

number of potential customers,” says Bowles.

While the picture might be grey for regional

or national media, community media seems to

have what it takes to rise above these issues.

“Local newspapers are in a tremendous position

because the fundamentals are right,” says Bowles.

Community media still tops

Community newspaper readership top 10 (ABC Jul-Sept 2007)

Newspaper Net distribution

COMMUNITY MEDIA


He points out that community papers and mag-

azines allow large and small advertisers to put

their hooks out into the areas where people

have access to their stores, products or services.

“For small businesses, the local newspaper is

ideal. It has no advertising wastage as it is delivered

to their immediate catchment area and, of

course, it’s affordable because they don’t have

to use a national or regional media type that

extends way beyond the borders of their opera-

tions,” says Bowles. Meanwhile, Erfort says that

the knock and-drop model used by community

media is in line with consumer needs. “New

research shows that readers are increasingly

reluctant to ‘go and get news’. They want their

news to come to them.”

Moving forward, she warns, the community

titles will need to be on their guard: “With so

many media competing for audience attention,

the successful community titles will be those

that remember they cannot be everything to

everyone.” She believes that the increased

competition among this media will see the

newspapers constantly seeking ways to improve

their look and feel as well as their content mix.

Likewise, she says, we should expect a focus on

growing youth readership (a trend reflected

globally).

Where community newspapers will see

growth and development is in niche communities,

such as the gay market (Independent

Newspapers launched lifestyle and entertainment

newspaper the Pink Tongue, last year in Cape

Town) – and among the burgeoning township

and rural areas (where Bowles says the NAB

titles are seeing great growth).

Look out for the expansion of these media

online and on mobile; while it may be early

days, publishers are already making plans in

these spaces. “To not have an online or mobile

presence, is to not be part of the 21st century,”

says Erfort. “At the same time, we have to be

aware of the rapidly changing technological

trends, and be sure to choose our online/mobile

vehicle very carefully to ensure sustainability

and effective integration with the product

that brings in the real revenue – the printed

newspaper.” After all, community titles will be

under great pressure to provide content free

of charge.

Magazines The golden children of community media,

magazines such as getit and MyWeek will continue

to grow, with publishers emphasising the power

of these glossy titles. “In many cases, when a

local personality is put on the cover they

COMMUNITY MEDIA

Community magazine readership (ABC Jul-Sept 2007)

getit zone

MyWeek zone

Net distribution

Net distribution

COMMUNITY MEDIA


become overnight celebrities,” says Bowles. He

adds that because the mags include locally

relevant content, readership is growing and

attracting advertising. “I think we would be

naïve to think that the current state of our

macroeconomic environment is not going to

impact us. It remains to be seen how this will

balance out and how many brands will be left

standing at the end of all this,” says Amanda

Brinkmann, operations manager, MyWeek. She

believes that local retailers will continue to be a

cornerstone of their revenue stream. “This category

will grow slowly but steadily over the next three

to five years. I don’t believe that we’ll see a

proliferation of titles in the short term, but

rather an increase in the size of zones and

resultant readership base,” says Brinkmann. She

also points to online social communities as a

natural extension of the mags; these will provide

new revenue streams and readership growth.

While readership figures and demographics

are yet to be researched, feedback is positive,

especially for those brands that are trying to

target women: “From our feedback at getit,

there tends to be a skew toward females, but

only slightly,” says Bowles.

MyWeek is represented in 26 zones across the

country and has a print order of 650 000; these

are delivered to LSM 8-10 households twice a

month. Two new zones will be added by end

March, in Rustenburg and Nelspruit/White River;

viability studies will determine which two to four

zones will be added in the next fiscal year.

Brinkmann says that ad support is showing

steady growth month on month. “Bloemfontein

is our most successful zone in terms of volume

of advertising growth and resultant growth in

the size of the magazine. Bloemfontein runs

48 pages on average and often grows to 64

pages,” says Brinkmann. Specific quantitative

and qualitative research results will be ready for

release in April 2008.

www.myweek.co.za is due to undergo a bit

of a makeover in the next few months, and

according to Brinkmann, certain areas of the

website will be monetised, and will provide

added value for advertisers. CSI programmes

will also be initiated via the site.

TVSoweto TV launched last year under ICASA

licence and has not looked back. “Viewer

response has been positive,” says the station’s

advertising sales manager, Deon Botha.

“Viewers from as far afield as KwaZulu-Natal,

Limpopo Province and the Eastern Cape have

been calling in.” DStv viewers can catch Soweto

TV on channel 360, while Soweto residents are

able to tune in via UHF on a normal terrestrial

signal. “So far the economic situation has not

affected advertising on Soweto TV; in fact the

rates are so value packed we may in fact see

advertisers spend more money on an innovative

channel like Soweto TV,” says Botha.

Audience and viewership research will be

carried out by Target Group Index and will be

available from July 2008, says Botha. Meanwhile,

advertisers can expect to pay R4 660 for a

30-second spot until the rate cards are reviewed

and new ones published. “The content evolves on

a daily basis and is presently undergoing a facelift,”

says Botha. He adds that the programmes that

have proved most popular will be extended,

while newer, shorter programmes will be added.

Soweto TV is working on improving its online

offering (www.sowetotv.org) and will soon offer

more detailed station and programming info.

“The online component of Soweto TV is under

development and will offer viewers who have

online access a more informative view into the

world of Soweto TV,” says Botha.

RadioAccording to Franklin Huizies, chief executive

officer, National Community Radio Forum

(NCRF), there are about 120 licensed

community stations locally. “Over the past

decade, the community radio sector has proven

itself able to maintain and grow its audiences.

The reason for this is that they cater for the

information needs of local communities through

various means of interactive and creative

programming ideas,” he says. As for the impact

of economic pressures, Huizies added that the

stations are seeing the impact of growing

operational expenditures.

There are 6.2 million community radio

listeners, which means that one in five people

listens to community radio; this is 20 per

cent of the total radio audience. “The profile

of these listeners is predominantly in the

middle and upper LSM ranges,” says Huizies.

He adds that the NCRF aims to build the

image of the sector through capacity-

building projects and engagements with

strategic partners. �

Community radio listening top 10 (SAARF RAMS, Feb 2007 and 2008)

Community radio listening top 10 (SAARF RAMS, Feb 2007 and 2008)

Station

StationPast 7 days

Average dayFeb 07 (‘000)

Feb 07 (‘000) Feb 07 (‘000)

Feb 08 (‘000)


Against positive growth in South Africa’sonline universe – having grown from 1.8 million

in 2005 to 4.6 million unique users in 2007-

only 1.2 per cent of total media spend remains

devoted to online, according to Nielsen Adex; a

long way from the nine per cent in the US.

It’s time for savvy South African marketers to

recognise that the Internet has grown up and

there are a number of opportunities for them in

this space.

Cut through the noise Admittedly, the Internet does not (yet) have the

reach and frequency of TV or radio, but there

are numerous opportunities to win market

share. Fortunately, the basics of marketing still

apply when approaching online, starting with

asking the right questions and being able to

measure success. For example:� Can you find the audience profile you are

looking for? � Can you target it easily? � Can you convey your message effectively?

(And will they respond?)� Can you easily explain the success or failure

and whether you achieved your objectives?

Fundamentally, online should not be an after-

thought or add-on to a campaign. It should be

integrated from the outset to deliver results.

Here are some of the basics to get you started.

Building blocks of online advertisingDisplay advertising (aka banner ads)This grouping has evolved dramatically. In years

past, banners were too small and an odd shape

to offer compelling ad creative. Today, South

African sites are starting to adopt bigger and

bolder placements to the extent that online

space is now something akin to a dynamic

billboard.

In today’s Internet environment, banner ads

are no longer static boxes of online real estate.

They can be overlaid on a page and even fly

around a user’s screen. Beyond this, they can

also include rich media like video. In fact, as a

result of responses and yields higher than

television, online video in the US now com-

mands big spend. (This year it is expected to

double from $775 million in 2007 to $1.3

billion, according to PWC.) Although we have a

ways to go before offering a critical mass of

video ad inventory in South Africa, some small

video sharing sites like Myvideo.co.za,

Zoopy.com and http://play.24.com are useful.

Search advertising Search advertising can be very effective because

it is contextual. This basically involves variations

on the concept of Google ads which dominate

globally. The positive aspects are that it is

cost-effective because you only pay for the clicks

you receive, thereby increasing ROI. I would

recommend outsourcing this capability because

optimisation plays a big role and just buying

some keywords through a self-service campaign

is a waste of time.

Innovative advertisingThis is a broad category, examples include social

networking, blogs, RSS feeds, Wikis and

podcasts. I would not suggest venturing here

until you have a solid track record in the

previous two pillars which are more established

and easier to evaluate.

What is most interesting about this genre is

the interactivity and the potential to build and

reinforce relationships. Pioneered by MySpace,

the notion of befriending a brand online is a

powerful tool. This area will become more

interesting to advertisers because the

word-of-mouth value of people sharing a

marketing message can be exponential. Bear in

mind though that this tactic is reserved for a

small niche of ads or offers that have real utility

or value to the target market.

Now that your interest in online ispiqued, here are some quick tips: Online demands as much good creative and

planning as any medium. It needs to be scripted,

tested and scrutinised in the same way as any

other ad.

Forget about clicks. Yes, the click ratio is

interesting to look at but it is a one-dimensional

way to evaluate campaigns. Many research

studies in the US and UK clearly show that

online is very strong in complementing

real-world campaigns in areas such as brand

awareness, message association, brand

favourability and purchase decisions.

Don’t spread bet. Many planners take budget

and spread it among a bunch of publishers as a

method of planning. Nielsen’s Market

Intelligence offers a planning tool that allows

you to profile demographically in real-time and

conduct de-duplication reports to understand

where your target lies. Contact the Online

Publishers Association (OPA) to find out about

access to this data – www.opa.org.za

How to be GREAT in 2008:� Spend more on display and search advertising.� Include online as much as possible in ALL

campaigns that are relevant to LSM 7-10

where online is strong. � Educate yourself. Read everything you can

about online, but always bring data and

trends back to a local context. � Take ownership and develop your internal

online marketing IP as part of a long-term

strategy. �

Elan Lohmanngeneral manager: social networkingand media 24.com(021) 468 [email protected]

The new net:

by elan lohmann EXPERT OPINION

make online advertising work for you

Digital marketing is hot, innovation is constant and to optimise response it is very important to appreciate current marketing best practices. The speakers understand the South African market; they are at the leading edge, working with major corporates frequently, and are response focused.

Digital Media PerspectiveAndrea Mitchell, MD of DigiVOX, a specialist digital marketing company will discuss how marketers should evaluate and select theappropriate components of the digital media mix. She will also discuss how digital media will evolve in 2008 and give an appraisal of theresearch data available and most importantly, the metrics that really matter.

How BMW Compiled and Executed their Digital Marketing Plan Scott Gray, Interactive Marketing Manager, BMW, will explain the objectives of the BMW digitial marketing plan, the reasons for selectingand weighting the mix, as well as the creative approach and the results achieved.

Online MediaElan Lohmann, head of Social Networking/Media Services at 24.Com, will guide you through optimising online marketing spend bestpractices, covering:� Marketing 2.0 � Online media selection � Smart ways to boost online response/ Going viral in the digital space � Social networking/social media/Facebook widgets etc � How to initiate conversations with your market, build relationships and create trust.

Mobile as a Medium Rick Joubert, Executive Head for Vodacom (also responsible for the recently launched Vodacom Mobile Advertising service) will discuss:� Why Mobile is not merely sub-set of “digital” media and could be the ultimate interactive medium.� Mobile as a medium has arrived and is no longer just a great idea.

The Case for Integrated Digital Marketing Roelof Van Wyk and his company, TRIGGER (winner of numerous awards) are on the global edge of Integrated Digital Marketing. He willstate the case for integrating digital media with the traditional response methods, but more importantly to stimulate response, justify the ROI,and add some zing to the traditional media landscape.

Web 2.0 Clever Tricks The words Web 2.0, social networking, Facebook, Wiki’s and blogospheres are all on everyone’s lips. What are all these things good for?What are they not good for? What can company’s do with Facebook? How can the power of Web 2.0 be translated into real businessbenefits? How do marketers use these things and how is it changing the marketing realm. Jonathan Hall, CEO of The Virtual Works, willdiscuss these issues.

PricingA morning workshop

R1 950 per delegate

Three or more R1 750 per delegate (plus VAT)

Enquiries: Daisy Mulenga, [email protected] (011) 234 7008

Sponsorship opportunities available, contact Robyn [email protected] (011) 234 7008

2nd Interact ive Market ing Summit18 March 08

Sandton Sun Hotel , Johannesburg


Of course the hot topic is load sheddingand the lack of power. And by the time this

article is published, trust me it will still be the

conversation topic of the day! The amazing

thing about South Africans is just how adapt-

able we are. (Pieter Dirk Uys in 19-something

Adapt or Die!)

We are done with raging and now we are

getting on with living. Power outages, whether

planned or unexpected, are here to stay. So let’s

get practical and see who can offer true

relationship marketing over the next few years,

so they can build a loyal customer base. I am

dining out on all the e-mails, texts, cartoons,

mpegs, jpegs etc that are circulating; even our

international friends are on the bandwagon and

sending us their laughs.

Generating the ‘genny’ andpowering the sunPeople are rushing out to buy generators. The

cost is exorbitant, not to mention the cost of

fuel, and the noise is just awful, impacting on

our environment. Other colleagues, friends and

neighbours are looking into solar heating, which

is, of course, a far better long-term solution for

us all. Many of us are waiting patiently for

rechargeable lamps and have installed back-up

batteries on our alarms and gates.

Phone around for suppliers and you are likely

to be kept on hold for at least 20 minutes; call

backs don’t happen; responses are ‘e-mail me

and I will get back to you in five days’ time – if

you are lucky!’ So if you can’t start one of these

relationships with your customers on a good

footing, then you will create the prisoner rela-

tionship (and put the airline miles programmes

to shame).

Here’s the ABC to CRM for all those involved

in these businesses.

A. Acknowledge all calls, e-mails and messages

within 24 hours

B. Behave honestly with your delivery and serv-

ice terms

� Over promise and you will lose out in the

long term

� Surprise and delight your potential and

existing customers at all times

C. Connecting with your new customers

� Consolidate the data you have on them; start

the moment they call you

� Use as many channels as possible

� Call centres (employ an extra person to

operate the phones)

� E-mail

� Mobile messaging

� Mail

� Fax

D. Data – gathering as much on your new

customers as possible

� You don’t need a large amount of technology

to start your database, Excel and Access will

do very nicely

� Information is the foundation of successful

and lasting customer relationships. It drives

superior insight, which becomes the platform

for building competitive advantage and

results.

� Basic demographic information, including

mobile number and email address

� Size of household or business

� Limited but useful lifestyle information

E. Electronic communication is so easy

� Set up basic e-mail templates and send out

monthly updates, handy hints (maintenance

of the generator, how to maximise the use of

your solar panels etc)

F. Following up after the sale

� Ensure your new customers are satisfied

� When the hype dies down, your existing

by nici stathacopoulos EXPERT OPINION

Z. Zealous, but notoverzealous; treat yourcustomers warmly; pursuetheir needs earnestly andarduously!

“”

This article is not about the lack of power, we know all of that. It’s a real businesslook at the service provision around alternatives and the way we can capitalise onrelationship building.

To shed the load

customers will prove to be far more profitable

than advertising for new customers

G. Generators are here to stay so work with

your customers so they understand how they

operate, what the fuel issues could be and how

to maintain the generator

H. Happy customers; happy businesses; happy

providers all make for very happy South

Africans!

I. Insist on signed quotations with full details to

ensure you don’t get caught with a large debt

of installation and sales

� As a business you are entitled to be paid

timeously and to earn a profit

J. Jacklights are a quick solution for interim

light; if you are a retailer selling them, don’t

promise to call customers back when they are in

stock if you don’t intend doing so

K. Keep up to date with technology and what

you can provide to your customers at all times

� If you fall behind, the newcomer in your

market will simply overtake you and you will

start losing customers

L. Lighting is a way of life without which many

people start to suffer psychologically; potential

customers may appear angry with you for little

reason; they are probably suffering from fear of

darkness and fear of crime, and if they feel they

don’t get instant gratification from you, may

turn their anger towards you; be patient and

kind, and your potential customers will turn into

your best activist

M. Money is to be made off consumers who are

making a grudge purchase – security companies

in South Africa are typical of this; you are entitled

to make a profit, but don’t rip people off.

N. New ways of life is always hard to adapt to,

but South Africans do adapt

O. Offer options to potential customers

� Assess their real needs, their household or

business size

� Don’t up sell just for the sake of it and like-

wise, don’t give them something that will be

redundant in a few months

P. Privacy laws regarding your customers’ data is

imperative

� Ensure they agree to you communicating

with them and that they opt in to as many

options as possible

� Mail

� E-mail

� Mobile

� Telephone

Q. Quella è vita – that’s Italian for ‘that’s life’.

The shortage of Eskom power is here to stay, so

accept it and do your best for your customers at

all times

R. Remember the customer is king at all times

S. Service. Service. Service

� If you can’t service all your customers

properly than get out of the business now!

T. Take advantage of the benefits of building a

loyal relationship

� Customers have emotional equity in

your brand

� Your brand is first choice

� They look to you to meet their needs and

solve their problems

� They ask you for guidance

� They discuss your offering not your

price

� They positively suggest how you can

improve

� They want you to succeed

� The emotional equity translates into

positive buying behaviour

U. Understanding your customers’ needs by tak-

ing a few extra minutes to listen to them will

save you all time and money in the long run!

V. Viral marketing is your best friend

� Use your existing customers to tell their

friends about you; ask them for

introductions in the neighbourhood, their

office building etc

W. Word of mouth can also be your worst

enemy

� One happy customer tells 10 people, one

unhappy customer tells 100 people and more

X. X-ray; you can’t do this without power; so

ensure medical practitioners receive your imme-

diate attention; (by the way, nor can you Xerox).

Y. Yellow Pages, and all other places you can list

your services

� Make sure potential customers can find you

with ease; if you don’t, your competitors will

be first in the market

Z. Zealous, but not overzealous; treat your cus-

tomers warmly; pursue their needs earnestly and

arduously! �

EXPERT OPINION


Nici Stathacopoulos

managing partner proximity#ttp(011) 447 [email protected]

Power outages, whether planned or unexpected,are here to stay. So let’s get practical and see who canoffer true relationship marketing over the next fewyears, so they can build a loyal customer base.

“”


The Word of Mouth Marketing workshop held

in November2007, brought together local and

international gurus to help marketers get a grip

on word of mouth marketing. Speakers included

Steve Barton, one of the founding members of

the Word of Mouth Institute in the UK; Hendrik

van Vuuren, director of Millward Brown SA;

Jason Stewart, brand manager, Instant Seed

Division, Instant Grass; Mike Stopforth, CEO,

Cerebra; Neil Higgs, director, TNS Research

Surveys; and Alan Kent, head of technology at

Saatchi & Saatchi.

Media fragmentation and mistrust of

traditional marketing messages sees consumers

turning to friends and peers for information

about brands. Barton refers to various research

figures which show that consumers today trust

advertising and company marketing less, and

their friends more, when it comes to seeking

out advice on new product purchases.

The most successful brands in the future will

be those that create powerful, positive word

of mouth messages today, and then work to

manage this in the right way. Kent points to

campaigns such as the Lynx Jet (Axe Jet locally),

the MTV Game Killers and the Diesel Heidies

campaigns as examples of brand activities that

really win with consumers.

The Diesel Heidies campaign, for the launch

of the new underwear range, exploited reality

online. Two women filmed, photographed and

blogged for five days about their adventures

and exploits in a hotel room, where they were

hiding out after having stolen the new range of

Diesel underwear. The website received millions

of hits, with fans sending in their own videos,

pics and messages. This brand now has major

buzz and talkability, and Diesel has achieved

even more cult status as a result.

The youth is a particularly word of mouth

savvy market. Stewart advises marketers to

understand the youth mindset as highly

suspicious of marketing messages. “They don’t

care about you or your brand. You need to add

value directly to them,” he says. The youth tribe

is a source of opinion, influence and identity for

youth. To influence the youth, you need to

influence the tribe leaders. “Traditional ads

create awareness, but word of mouth market-

ing adds credibility,” he says.

He outlines the principles of word-of-mouth

marketing:

� It’s fluid and it’s happening everywhere

� People love the unofficial story

� The story needs to be sticky; it needs to have

conversational currency, if it is to have value

� Everybody is an influencer, but you need to

find those of greatest influence (ie whoever is

relevant and credible to your market)

� You have to have a good product because

this is where it starts and ends. You also have

to treat every person who engages with your

brand like a VIP. Provide people with your

product and let them experience it

� Trust is integral (traditional advertising carries

a sense of manipulation).

� The right snowflakes become avalanches; you

need to have the right people, in the right

places, with the right messages. People are

always after social knowledge. They want to

know about a new product or trend before

their peers – leverage this.

Word of mouth marketing is perhaps most

prolific online, where blogs, vlogs and user

reviews have allowed the average consumer to

share their opinions and experiences with the

world. Stopforth explains that brands that

ignore the conversations that people are having

about them are going to lose out. It is becom-

ing imperative for brands to take note of these

conversations and add their voice to them. “The

biggest companies still believe that they cannot

interface with customers as partners,” says

Stopforth. And yet blogs are allowing this to

WORD OF MOUTH

Word of mouth marketing

report back

WORD OF MOUTH


happen, with sometimes incredible results for

the brands that do it right.

He usually suggests to companies who have

never ventured into the blogosphere to initiate

and manage online reputation management

programmes instead of using blogs, because

these can become difficult to manage.

Reputation management allows a company or

brand to respond timeously and appropriately

to any mention by consumers, thereby creating

a more honest and open conversation. And if

consumers are criticising your brand, perhaps

it’s time to listen and make the changes they

are asking for.

He outlines a few important guidelines:

� Be authentic

� Have content with a core and augment what

you are doing ATL with your website, blogs etc

� You need to win consumers’ trust

� Understand the network

� When you are mentioned online, respond

And listen to what users are saying

� Give your users power (Dell computers, for

example, has created Ideastorms, which see

consumers making new product innovation

suggestions

Kent says consumers tell the most powerful

stories about brands. “Increasingly, a product’s

quality and what a brand stands for are

determined by Google,” he says. Run a search

on your favourite brands, and you’re likely to

find blogs and customer reviews too, and these

will influence how you think about these

brands. The zone of mediocrity, where

consumers talk neither good nor bad about

your brand, is a bad place to be.

“It’s important to produce something that

pulls people together and gives them something

to do,” says Kent. He points to the Nike+

products, which sell running as a fun, digitally

enhanced sport. “Consumers are beginning to

own brands and participate in their creation.

Brands need to learn to let go, and let this

happen,” he says.

Van Vuuren says word of mouth is deter-

mined by three factors: the relevance and

appropriateness to the recipient; how the

onward communication reflects on the sender

(because, as Barton puts it, you will only

recommend a product if you’re prepared to put

your reputation on the line for it); and the trust

placed in it (it should be predictable, fair, reliable

and connected). Word of mouth can take place

online and offline (offline, it can take place in

social situations, and Van Vuuren points to the

stokvel as one such situation). “You must exceed

expectations, if you expect people to talk about

you,” says Van Vuuren.

Brands that are talked about and that

change trends have buzz. Nappies have the

highest spontaneous talkability, for example,

simply because mothers will share all kinds of

conversations around them without being

prompted to do so. “A true advocate has no

affiliation to the brand, but endorses it out of its

own right,” says Van Vuuren. Positive word of

mouth is critical to brand success. It can be

influenced by the marketer. But the most

powerful tool is consistently exceeding customer

expectations.

Barton emphasises that brands must follow

up on their word-of-mouth campaigns, delivering

reporting, feedback, appreciation and support.

They must observe the conversations taking

place around them, and identify those that

most often lead to a discussion about the

product category.

They must observe the content that is most

often discussed and traded, and has the

greatest influence. “One-on-one interviews and

small group discussions will allow for this, but

be careful. Cynical, advice-based stories win the

advocate social points, so be sure to create the

right context for these discussions,” says Barton.

He urges brands to make it easier for

consumers to find them and to use platforms,

such as online, to distribute information that

will be used in conversations. “Keep in mind

that where they receive this info impacts how

they will use it. Distribute as much info as possible

online and make it easy to pass on,” he says.

Brands should work with other media to create

a trend. Also, ethical codes are important

because consumers want brands to have an

honest relationship with them.

How to create successful word of mouth

marketing? Barton says that brands should

identify and target the right people; the right

moment or slipstream to take advantage of;

deliver the right nuggets and provide the inter-

active tools. “It’s about being relevant, and

working with your audience as opposed to

dumping on it. Isn’t this exciting?” �

Brands should work with other media to create a trend. Also, ethical codes are important becauseconsumers want brands to have an honest relationshipwith them. Steve Barton, Word of Mouth Institute, UK

“”


Shopping behaviour has long been studied as a

way to increase off take at point of sale – or at

least to clinch the sale to the consumer, providing

the final link in the value chain. Without that

sale the whole effort of manufacture, advertising,

selling, warehousing, listing, distribution,

merchandising, display and pricing is worth

absolutely zero. If Mrs Jones chooses not to buy

your brand, all the effort has been wasted.

So how do you maximise the impact and rate

of sale of your brand at point of sale? We have

done the obvious stuff of distribution, display,

depth of stock, promotions, price-offs – and so

have all the competitors. We are seeing a lot

more great displays (not just good ones) so the

investment in design is paying off. But what else

can we do differently at the point of sale to

make the ultimate ‘moment of truth’ count?

In a word – understand your shopper.

Become ‘shopper-centric’.

Shopper-centricPutting the shopper at the centre point means

understanding their needs, language and point

of view. Shoppers are now making lots of small

trips instead of fewer, bigger trips with some

people making more than 40 shopping trips in

a month. This does not mean that shoppers

have suddenly fallen in love with shopping – on

the contrary, they begrudge the time it takes

but they are trying to be more efficient.

Shoppers are balancing their time against how

efficiently they can acquire the brands and prod-

ucts they need. To do this they shop more stores,

and make more visits than ever before. They

understand the value of their time – which is

sometimes worth more than saving a few rands

on a commodity and then needing a forklift to get

their trolley to their car. They want convenience

and efficiency from the stores they visit.

How can I save time?They are looking for a new dimension: ‘How

can I save time?’ They want solutions. They

want to get in and out quickly, and not spend

their time looking around, bumping into

people, merchandisers and boxes. They want to

go to it, find it, get it and get out.

Retailing has not changed as rapidly as

shopping habits have changed in the new

millennium. But, we are not so much behind the

trend as simply not capitalising on the opportunities

that are being presented to optimise our business.

Shopping mission Each time shoppers are prompted to go on a

shopping trip, a different consumption occasion

or different need motivates the trip. So their

whole approach to the shopping trip changes;

their whole behaviour and the way they shop.

The strategic role of a category may be

destination, routine, convenience or seasonal,

but all of that can change for a particular

shopping trip. A destination category could

become routine or convenience. What we need

to know is how the strategic category role

changes and when.

This is where shopping mission plays a role.

The shopping mission is Mission Critical.

Types of shopping missionsWhat are the types of shopping missions, and

how does the shopper change their behaviour?

Through extensive qualitative and quantitative

research we have idendified 12 basic types of

shopping mission divided into planned and

unplanned, with the percentage of trips shown

on the left.

You cannot expect to sell your brand every

time a shopper comes into the store. Sometimes

they just ‘drop in’ for an emergency item that

they need, at other times they come in and out

quite quickly to buy specific daily fresh produce

or meal requirements. Other times they will

bring both of their credit cards and fill two trolleys.

Some people treat shopping like the plague and

will tell you that shopping is their worst.

Store repertoiresStore density has added to the repertoire of

stores shoppers visit. There are supermarkets

and hypermarkets just about everywhere, with a

national network of Spar and KwikSpar,

Woolworths Food, and hundreds of petrol

station convenience stores staying open till late

or 24/7. Shoppers are now spoiled for choice.

In my area, looking within a 3km radius, I

have a hypermarket, Spar, Engen (with a

by graeme taylor MARKETING AT RETAIL

Understanding the shopper:mission critical

MARKETING AT RETAIL


Woolworths section), Shell Select, Caltex, two

Woolworths Food stores, five takeaways, three

bottle stores and a cafe. So to compete and

create an efficient consumer response we need

to understand which missions are made to

which stores.

Category mission is criticalIf mission for the store is critical then mission for

the category and brand is even more critical.

People divide their shopping into different

missions, by breaking up the task into a lot of

smaller missions and making it easier. Pick up

the monthly items at the hyper where you get a

good price, then buy the bulk items from Spar

or a supermarket with close parking. Drinks and

snacks are bought at any time on any number

of missions.

To get into the basket, an understanding of

the Shopper Mission is critical.

The obvious solution is to expose your

category in as many contact points in the

store as possible. This is only partly true.

Too much clutter begins to degrade the

shopping experience with more of a ’bazaar

effect‘. If all categories were merchandised

everywhere, the store organisation and layout

would become unclear and confusing to the

shopper. The trend is starting to move in the

opposite direction, to assist and facilitate

decision-making at the point of exposure. The

more logical (as defined by the shopper, not the

store owner) the layout is, the easier shoppers

can find things – associated things – and then

buy them.

Five action pointsHere are five things that you can do to ensure

that you make the most of the shopping mission:

� Merchandise and promote according to the

time of day, week and month that missions

for your category and brand are likely to occur.

� Think about which other missions your

brand or category could become a part

of and find its way into the basket. This

is about helping shoppers to find a total

solution.

� How would your category most logically be

laid out? Not just in terms of a planogram –

but in terms of the decision hierarchy

of the shopper. What would be most

helpful to the shopper? What would save

decision time?

� How can you make the category look better

and work better? Great displays. Make it

experiential, which is about how the

shopper feels. Help them spend less time at

the shelf. Make it easy for them to buy your

brand and feel good at the same time.

� How can you make the experience of

shopping your category more of a pleasure?

Like providing category solutions – quick

meals, all related ingredients in one place;

easy to find and easy to combine into a

meal solution.

Getting into the basket will in future depend

more on understanding the shopper than just

having a well-organised category display. It will

be shopper centric by focusing on what the

shopper feels and needs for each mission– it will

be mission critical. �

Getting into the basket will in future depend more on understanding the shopper than just

having a well-organised category display. It will be shopper centric by focusing on what the shopper

feels and needs for each mission – it will be mission critical.

”Graeme Taylor

managing director GlobalEdge Marketing Consultants (011) 564 [email protected]

“


Undersea cable investment in South Africaappears to be on ice, with no early thaw in

sight.

Foreign investors continue to wait anxiously

for the Minister of Communications to clarify

local ownership requirements in respect of

undersea cables. This is because, in order to

land a cable on South African shores, an

individual electronic communications licence

will be required. Such a licence is only granted

pursuant to an invitation to apply, which must

in turn follow a policy directive from the

Minister. What concerns investors is confusion

over the policy stance being taken on undersea

cable ownership, and hence eligibility for

individual electronic communications licences.

The Minister has made a number of

statements in the media to the effect that any

new cable must be majority South African

and/or African owned. Unfortunately, she has

omitted to say whether local ownership would

be limited to the South African portion of a

cable system, or extend across the entire

network. The promised guidelines on ownership

have not been forthcoming although they were

to have been made available in November last

year. This lack of clarity can only be having a

chilling effect on potential local and international

investment in proposed new undersea cables

such as EASSy and Seacom.

Given high international bandwidth prices

and the shortage of bandwidth out of Africa,

including South Africa, it is evident that such

cable projects will go a long way towards

alleviating supply-demand anomalies and

provide much-needed international bandwidth

competition.

The Minister, who previously supported South

African landing rights for the EASSy cable, has

now withdrawn this support, apparently

because the cable is too commercially

orientated. Instead, she is reportedly trying to

convince EASSy investors to support the

Baharico cable, a project of the New Partnership

for Africa’s Development (NEPAD).

Adding to the confusion is that President

Thabo Mbeki has formally signed into law the

controversial amendment to the Electronic

Communications Act. The effect is that the

Minister may determine the licensing framework

for ‘public entities’ listed in the schedules to the

Public Finance Management Act. Critics are of

the view that this amendment undermines the

independence of the Independent

Communications Authority of South Africa

(ICASA).

More specifically, critics fear that the

amendment to the Act allows Infraco to

sidestep ICASA’s licensing processes. Infraco is

South Africa’s newest public entity, having

recently been formed in terms of the Broadband

and Infraco Act to take transfer of the fibre

optic assets of Eskom and Transnet.

It is conceivable the Minister may make use

of her ‘new licensing framework powers’ to

grant Infraco the right to roll-out its own

undersea cable without the necessity of

complying with the usual licensing

procedures. This seemingly flies in the face

of government’s much-vaunted commitment

to liberalising the communications sector.

It could, however, fast track the granting

of landing rights, offering some hope

to potential investors. It is even possible

that third parties may be permitted to invest

in Infraco.

Meanwhile, there are hints of progress in

regard to the cost of international bandwidth.

Telkom still dominates access to international

bandwidth and sets the prices for access. On

Christmas Eve of 2007, in a move to open up

access, ICASA promulgated draft regulations

on essential facilities for comment. Undersea

cables, including landing stations, backhaul

circuits and international gateways, are regarded

as essential facilities.

The draft regulations provide that all licence

holders should have fair and non-discriminatory

access to essential facilities. In particular, access

charges must be based on the ‘forward-looking,

long-run average incremental costs of an

efficient operator providing access’, unless

agreed otherwise. In the absence of licensed

competing undersea cables, the draft essential

facilities regulations, if passed, should drive

down international bandwidth charges.

Although the charges for access to

international bandwidth seem set to decrease,

this does not resolve the continuing uncertainty

surrounding ownership and licensing of

undersea cables. Foreign investors may well lose

interest in investing in new cable projects or, if

they stay the course, find themselves hopelessly

behind their deadlines. The delay in issuing

landing right guidelines and licences is

hampering the introduction of competition and

diversity promoted by the Electronic

Communications Act.

For the time being, progress with licensing

additional undersea cables seems frozen by

confusion and uncertainty. It may be cold

comfort but the draft essential facilities

regulations offer at least some prospect of relief

for electronic communications service providers

and consumers alike. �

Kathleen Rice

by kathleen rice LAW MIX

Undersea

Note from the editor: At the time of

print, the Minister of Communications had

just issued new guidelines stipulating the

long awaited local ownership and licensing

requirements. Werksmans Attorneys will

deliver a follow-up on this in the next issue

of Marketing Mix.

Cable Access

director Werksmans Attorneys(011) 535 [email protected]

Marketing Mix magazine Jan Feb 08

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Transcript of Marketing Mix magazine Jan Feb 08