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MarketingMix CONTENTS

I 0 2 I Book Review I 3 4 I Direct to Home


Marketing Mix reviews Brands & Direct to Home is not unsolicited
Gaming by David Nichols, Tom junk mail but a sophisticated and
Farrand, Tom Rowley & Matt Avery, targeted marketing medium
discussing the ways in which
marketers could and should be
taking advantage of the explosion I 4 0 I Expert Opinion:
39
in gaming
Nici Stathacopoulos
Nici brings us a report from the
I 0 4 I Ed’s note Dubai Lynx Direct and Digital Awards

I 0 6 I The DMA I 4 1 I 7 Day [B]itch


Education, the Assegai Awards and Margot Bertelsmann, editor of men’s
an update on the Privacy legislation
09 mags Zoo Weekly/Weekliks, takes us
41 through a frantic week

I 0 8 I News
All the latest gossip in the wonderful
I 4 2 I Expert Opinion:
world of the marketing mix
Gary Harwood
Gary says that if there’s an itch,
I 1 5 I Expert Opinion: scratch. He’s referring to brands and
relationships
14 42
Helen McIntee
Investigates small town marketing
I 4 4 I Consent Marketing
Marketing Mix brings you a
I 1 6 I Brand Anatomy reportback on the pending data
legislation that will affect marketing
Go Banking has relaunched its brand
after discovering all is not as it
should be
I 4 6 I Research
45
Thought Leaders
I 1 8 I Expert Opinion:
Four of our local research thought
20 leaders offer their advice and opinions
Richard Duncan
on a large range of topics from rear
Richard looks at how if you put
view mirrors and experiential to the
garbage in, you get garbage out,
changing face of marketing
with reference to research

I 5 4 I Expert Opinion:
I 2 0 I Education
48
What to look for in short-courses and Yoav Tchelet
where to actually study Yoav explains why online really
does work

26
I 2 4 I Sports media
Marketing Mix looks at sports I 5 6 I Law Mix
sponsorship and how to get the
Frank Joffe gets clarity on certain
best deal
critical areas of the Designs Act

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


by michelle sturman BOOK REVIEW

Brands & Gaming –


The Computer Gaming Phenomenon and its
Impact on Brands and Businesses
The opening chapter starts with a ing industry and what do you really need to that adds value to the overall gaming experi-
description of a Saturday night out for trendy know in order to harness this audience? The ence, a mass assault of brands within a
youngsters in Kuala Lumpur. It’s not about authors point to the amazing success of game will simply be rejected. (McDonald’s
nightclubs and bar hopping – these hipsters Lara Croft, a digital character who became a foray into The Sims is a great example of
are in a six-storey shopping mall. They are worldwide celebrity. (Incidentally, few in the how not to do it.)
not shopping either – they are playing or marketing world took much notice.) Some The authors also deal with many miscon-
watching others who are participating in adventurous brands such as Jeep and Sony ceptions, such as gaming inducing violent
online gaming. Before you start griping Ericsson have created their own video games behaviour and all gamers being smelly male
about this never happening in South Africa, to launch new products, generally teenagers. In point of fact both young and old
have you asked your kids lately what are gaming – and the biggest gam-
they are doing on the PC or count- ing audience is female.
ed the hours they spend on the The most essential chapter is
PS2 or Xbox? The authors state: Press “start” to Play – Leveraging
‘But this is not simply an Asian Gaming for your Brand. It offers
phenomenon. It is just the most the necessary practical steps to
public manifestation of a mega-trend enter the gaming psyche with a
that is sweeping the entire world: brand. Vital Do’s and Don’ts: Do
the swift and irresistible rise of stay out of the game itself and
gaming at the very heart of global use your size and power to do
entertainment culture.’ something only you can do. Don’t
Here are some facts that the do your own content or jump into
authors throw at you: the world- bed with just anyone. Along with
wide gaming industry is bigger than really pertinent questions to ask
the film, music and home video yourself before jumping into the
industries and has a market value of arena, it hints at the likely appear-
over US$25 billion. Some other ance of the gaming industry in the
interesting tidbits include the ages coming years and at what you
of gamers. Those of us over the age should know – about cellphone
of 25 grew up with the first hand- gaming, for example. While you
held games and the introduction of could read this chapter on its own,
the PC, including Tetris and Pacman. reading the rest of the book as well
Apparently many of us are still gam- helps to put everything into per-
ing, albeit with more sophisticated spective.
platforms such as Wii, Xbox and A very useful glossary and FAQs
PlayStation. According to section is included at the back,
Datamonitor UK, the highest percent- along with handy contacts for the
age of PlayStation 2 users are aged 24-34. known as ‘advergaming.’ While there are major games publishers. As this is a new
Hardcore gamers even have their own numerous options available, such as gaming marketing arena, Brand & Gaming is an
world championships – World Cyber Games event sponsorship, the one that should get exciting and dynamic read and provides an
– with corporate sponsorship and hefty cash you excited (and the most difficult to excellent first step for getting involved. g
prizes. This is serious business. It is expected achieve now) is in-game advertising. This
that massively multiplayer online first-person already takes place to some extent, although
shooters (MOFPS) and massively multiplayer not necessarily deliberately. Take the FIFA
Brands & Gaming
online role-playing games (MMORPG) will series or Colin McRae Rally games, for exam-
become the mainstay of gaming in the ple. As the authors rightly point out, it By David Nichols, Torn Farrand,
future, especially since the new generations would be strange to play a football team Tom Rowley & Matt Avery
of PlayStation and Xbox offer online capability that didn’t have the correctly branded shirts Palgrave Macmillan
as well. or to drive a no-name rally car. However, R650
What does all this mean for the market- while gamers will accept authentic branding

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


by michelle sturman ED’S NOTE

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

blog: http://mmxsa.blogspot.com

PROPRIETOR AND PUBLISHER: SUB-EDITOR: Sarah Webster Database:


Systems Publishers (Pty) Ltd. Email: sarahweb@mweb.co.za List Perfect
Tel: (011) 234 7008
ADVERTISING MANAGER:
North Block, Bradenham Hall, Robyn Andrews
Mellis Road, Rivonia Email: robyna@systems.co.za

PUBLISHER: Terry Murphy


PRODUCTION: Spencer van Graan
EDITOR: Michelle Sturman Email: spencerg@systems.co.za
Email: michelles@systems.co.za
SUBSCRIPTION ENQUIRIES:
JOURNALIST: Fulvia Becatti Daisy Mulenga
Email: fulviab@systems.co.za Email: daisym@systems.co.za

Copyright of all material in this publication and supplements are reserved


by the proprietors, except where expressly stated. The opinions in this publication
do not necessarily represent the views of the publisher.
Picture courtesy of EIMAGE

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


DMA

Direct training
programmes launched
The Direct Marketing Association of South Africa (DMA) The Essentials of Direct & Interactive Marketing
has launched the first two of a series of training programmes This course offers a full overview of direct marketing and takes
that focus on the techniques of direct and interactive place over two days. It focuses on how DM fits into marketing and
marketing. business plans and is designed to provide basic skills. It represents
The DMA courses are the only DM courses that are NQF 8 credits on the NQF.
aligned and companies are able to benefit in terms of the skills
levies that they have paid. “As a method of doing business, Both these programmes guide the learner through a step-by-step
direct marketing encompasses everything from customer learning process, based on an integrated relationship marketing
acquisition and retention processes database development; e- model. The model itself is grounded in many years of practical
commerce; integrated communications to loyalty and cus- experience in the South African market and takes the latest inter-
tomer relationship management (CRM) programmes. Direct national developments into account. It provides a framework for
marketing is the fastest growing form of marketing worldwide the planning, implementation and measurement of all direct
– in all its different forms it accounts for about 60 per cent of marketing outcomes. “Both the Certificate and Essentials
the total advertising expenditure in the USA. The DMA courses programmes are packed with real examples of interactive marketing
offer newcomers to the DM industry a solid grounding. They activities – often drawn from the personal experience of the
also represent an opportunity for people who are already in presenters – to illustrate the principles. They are offered by well-
the direct industry to refresh their skills and to monitor new known direct marketing educators, practitioners and authors, Steve
trends and technologies,” says Brian Mdluli, CEO of the DMA. Bird and Rory Duckles, joint winners of the DMA Gold Assegai
Award for Direct Marketer of the Year in 2000. Overall you gain the
The first two training programmes are: latest know-how directly from the experts in a coherent format that
The Certificate in Direct & Interactive Marketing ensures continuity between subject areas and easy comprehension,”
This course has been updated and redeveloped. It is aligned says Mdluli.
to NQF Level 4 Marketing unit standards and is accredited The courses are aimed at direct and general marketing
by the Services SETA and endorsed by the DMA. The course managers, product managers, marketing assistants, advertising
takes place over six days (two blocks of three days each) agency personnel (strategic planning, client service, media planning,
and the programme provides a comprehensive overview creative) and suppliers to the industry (printers, list brokers, mail
of direct and interactive marketing as well as a set of houses, database developers). DMA members qualify for a 20 per
key skills to apply immediately back in the workplace. It cent discount on the course fee.
represents a total of 34 credits on the National Qualifications For more information on the programmes, please visit www.dmasa.co.za.
Framework (NQF). To book telephonically please call Shanelle on (011) 706 2358.

Founder Members are offered the following:


 One year free DMA corporate membership
 A free (full day) customised educational seminar about direct marketing, presented by industry specialists
 Representation on the DMA website
 Logo on all pro bono DMA ad placements
 Six free tables over the course of 12 months at various DMA events
 Showcasing at various relevant exhibitions and conferences
 An official Founder Member certificate
 An opportunity to join the planned mentoring programme

Special consideration will also be given to Founder Members through Marketing Mix, with respect to:
 Nominating topics and being invited to provide expert opinions, leading sponsorship rights and occupying premium advertising
positions within Marketing Mix
 Nominating topics for executive roundtables that are hosted by Marketing Mix
 A customised communication programme that can be implemented with the DMA and Marketing Mix

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


DMA

Privacy legislation update


At a DTI presentation during the first week of April it was con- consumerse) The Commission can establish or recognise a register
firmed that the following changes (amongst others) would be for preemptive blocks.
made to the Consumer Protection Bill. This is a quote from the The Bill will not deal with the collection, retention and distribu-
DTI presentation: tion of personal information. These (matters) will be addressed by
Sections 11 –13 the Privacy Bill.
The general concern with this section was that it was duplicating
both the ECT Act and the proposed Privacy Bill. After further “This is really good news and will help us in our negotiations
consultations with the law commission and Justice department, it with the SA Law Commission. The latest draft of the Protection
was agreed that the section would be revised as follows: of Personal Information BIll has been released to the DMA for
a) The definition of ‘personal information’ would be deleted comment. The Legislation Sub-Committee has decided to
b) Section 11 would be deleted prepare a new submission and to meet with the Law Commission
c) Consumers can either register a preemptive block or be removed as soon as possible, as in our view the new draft of the bill is far
from a marketing list on request too restrictive,” says Andy Quinan, chairman, Legislation
d) Suppliers must implement measures to facilitate ‘opt outs’ by Sub-Committee, DMA.

Right on Target… DMA Awards Join the DMA…


To join, visit www.facilities.coza/dma
July 2007 will see the ‘refreshed’ Assegai Awards re-launched into
the market. “The direct industry needs its own awards as it has very DMA fees are paid annually on the anniversary date
specific criteria. Measurable marketing awards will encourage of joining the organisation and are based on the size
best-of-breed campaigns and are essential to our industry and the of your company. Payment can be made via cheque
country. Our Corporate Members and Members Agency have made or EFT. An invoice will be e-mailed as soon as you
their requirements for DMA Awards very clear,” says Michelle have completed the online membership. Before you
Perrow, original founder of the Assegais in 1999 and DMA Board go to the link above in order to register to become a
Member responsible for this portfolio. member, you will need to have the following infor-
mation available:
Marketing Mix caught up with Michelle to ask
her a few questions about the awards…  Your company details
 Your company coordinator’s details ie the per-
MMX: How far into the new Assegai Awards process are you? son who will be responsible for keeping your
MP: We have established an industry representative body which is company details up to date on a quarterly
currently finalising all aspects of the awards. This includes the basis
Assegai structure, categories, judging criteria and so on. Interest in  Your company decision maker’s details ie the
awards sponsorship has already been expressed by a number of our person who will authorise your membership of
large corporates. the DMA and the essential payment of mem-
MMX: Will there be any links with other DMA’s? bership fees
MP: Yes, both Brian Mdluli our executive director and I are liaising  The details of staff members who you believe
with international DMAs and with FEDMA. Our aim is to get them should receive information updates from the
involved and ensure that we produce world class awards. DMA on an ongoing basis. If you do not have
MMX: What about timing? all the details with you, your company coordina-
MP: We are looking to introduce the new Assegai’s in July 2007 with tor can go back into the system at any time to
a Gala Event planned for October 2007 or early November 2007. update these details

For more information on the DMA Assegai Awards 2007 contact Contact details:
Michelle Perrow on (011) 808 1600 or e-mail (011) 577 2780
michelle@difference.co.za. dma@facilities.co.za
www.dmasa.org

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


NEWS

Channel: CNBC Africa developments, lifestyle and and understanding the busi-
Launch Date: 1 June 2007 entertainment. Late night ness of Africa, as well as just
Platform: DStv, Channel 54 feature programmes each getting to know more about and Brownyn Nielsen.
and Sentech Vivid weekday looking at and the continent and its people Programming strategy: A
Ownership: 70 per cent of interacting with editors and Advertising rates: Run-of- unique feature will be live cov-
CNBC Africa’s funding comes journalists, entrepreneurs, air 50x30” spots per week: erage of the opening and clos-
from the Middle East mining issues, matters of R87 500 ing of key African financial
The core investment group concern for ordinary people Details: CNBC Africa is the markets. Programming will be
also has ownership in CNBC on the continent, personal first international business about information and news
Arabia and CNBC Pakistan, finance and close encounters news channel in sub-Saharan that consumers can use to
both channels are affiliates of with Africa’s personalities Africa. The cornerstone of the make decisions and stayed
CNBC Africa. CNBC Africa’s Number of viewers: Over channel will be business informed. While a number of
ownership structure involves 1.5 million subscribers across news, financial markets infor- bureaus will operate immedi-
a 30 per cent investment by the continent. (DStv) mation and in-depth analysis ately including Cape Town,
the IDC. CNBC is part of NBC Target market: Financial and throughout the day. There plans are for bureaus across
Universal. business professionals that will be live crossings to key Africa, including Botswana,
Programme highlights: need useful and up-to-date African markets for comment Nigeria, Kenya and Tanzania.
The Other Dimension – an business and markets informa- and analysis, along with regu- The channel will broadcast
interactive political economy tion. Decision makers and the lar crossings and updates from Johannesburg. CNBC
programme looking at the influential on the continent, from Europe, Asia and the Africa will broadcast 24/7 with
issues that influence business including business leaders, US. Regular news updates 12 hours of local program-
on the continent. senior mangers, government during the day and a news ming, cutting across to inter-
Kaleidoscope – a nightly busi- officials, diplomats and civic report each evening will be national affiliates throughout
ness magazine show high- leaders. Ordinary people that featured. Journalists include the day for market updates
lighting trends, interesting have an interest in knowing Peter Ndoro, Nikiwe Bikitsha and breaking news.
NEWS

Contact me The VIP club


Contact Centres World Africa is 94.7 Highveld Stereo has received via the station’s website and
back again, bringing with it the embraced the online and dig- through a mobile website. “The
latest cutting-edge solutions ital world beyond the limita- mobi site – using the Internet on
from around the world as well tions of RAMS to find out your phone – is an exciting ini-
as a host of international and more about its audience tiative. Although usage is still
local speakers. Some of the dis- through the introduction low we’ve already seen a big
cussions include: South Africa as of its loyalty programme, increase in these entries since
a BPO destination, setting Club VIP. It is also a way of we launched the club. We’ll con-
standards for quality, effective recognising the ongoing tinue to ensure that we’re active in
agent motivation and outbound support of its listeners. “The this space and want to be the first
contact centres. The Masterclass development of Club VIP is a mobile site that listeners visit,” says Till.
schedule includes: connecting response to the request from ourselves and There are three ways of using points earned: a
conversations and coaching our advertisers to understand more about shop at which items can be purchased; campaigns
secrets. what makes our listeners tick and to be more for giveaways and members can also burn points
accountable for the campaigns that we run,” to enter a draw. According to Till, a few commercial
says Ryan Till, group general manager, Primedia campaigns have also posted great results for
Broadcasting. clients. For example, members are asked during
Club VIP was launched in mid-January and on-air promotions to visit a particular retail outlet
already has just under 80 000 registered and to get a specific piece of information in order to
active members. The programme concentrates on earn points. “The best thing about these promo-
five main daytime shows 6am-10pm and revolves tions is that you can create a profile of exactly who
What: Contact Centres World around random keywords that are mentioned by entered when. Club VIP is a business tool that
Africa 2007 the presenters throughout the day. The objective allows us to understand more about our listeners
Where: Sandton Convention is to encourage listeners to tune in for longer peri- and to build a deeper relationship with them. It
Centre ods of time. Membership is free and entry mecha- also enables us to offer our advertisers better value
When: 27-30 August 2007 nisms are mostly through SMS (R1.50) – members and response rates. We are really only scratching
Website: www.terrapinn.com earn points per keyword used. Entries are also the surface now,” says Till.

Pencil case panels


Marketing to kids with all the rules and reg-
ulations is difficult and the most difficult part
is probably trying to reach them in the first
place. Now you can do this by using the
product of a new venture between The
Themepack Company and Primedia
Face2Face: Trendcase Media markets to
schoolchildren by inserting billboards
(Trendcards) into transparent pencil cases.
While the pencil cases are already in retail
stores – along with inserts that are available
for purchasing – this new venture will see
them being distributed nationwide to chil-
dren in the lower LSM brackets for free. The
aim is to reach one million schoolchildren
during this year.
The double-sided Trendcard inserts may be
used for advertising as well as for highlight-
ing social issues. According to Warren
Deerans, CEO of The Themepack Company, aware that the information was on the card on the campaign. When buying a package,
HIV information was printed on a Trendcard or that they would be tested at a later stage. both the gender and the area can be
and given to a group of children during Campaigns can be run regionally or selected and once the creative is provided
research that tested the effectiveness of the locally, with a minimum run of 50 000 and the pencil cases are handed out together
medium. After just one week of exposure, three consecutive inserts. Schools are put on with the first insert. Follow-ups take place
their knowledge had increased by 67 per a route list and re-visited 8-10 times a year. approximately every month and are based
cent. The children were not deliberately made Older insert cards can be collected, depending on the school calendar.

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


NEWS

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

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

Panties
Comfortable: little or no detail; tight fitting with hidden panels; skin women). They also seem to think that women wear sexy and seduc-
tone or natural colour; cotton or stretch material; full bottomed aka tive underwear all the time! However in reality, women opt for com-
granny knickers fort, fit, hygiene and support first. This only then followed by seduc-
Sporty: thin hemlines and stitching; natural fitting; cotton; colourful tive. Men characterise women who don’t wear sexy underwear as
with little or no detail those who wear ‘granny knickers’. According to women, underwear
Seductive: high detail with lace and embroidery; high cut, sit on has personality: conservative women are associated with natural tones
the hip, usually a G-string; bright colours or black; silk and delicate and practical underwear and outgoing women are associated with
materials. underwear that is exciting and brightly coloured. However both men
While the above may appear to be common sense, responses from and women agree on the definition of sexy underwear.
interviewees – especially male – may be surprising. Men say that a Colours have certain connotations: black is classy, elegant and sexy;
woman’s underwear adds to the excitement – rather than being a red is seductive and showing off; pink is naughty and fun and skin
hurdle to overcome – before engaging in sex (which is great news for tones are unattractive and mature.

Website of the month – www.adcritic.com


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

1 0 MarketingMix I Vol 25 No. 5/6 I 2007


NEWS

Sweet creative

Adobe has unleashed its largest software offering ever with the above enhancements plus an upgrade to InDesign, facilitating the
launch of its Creative Suite 3 (CS3) product line. In keeping with creation of print publications as well as website, rich media and mobile
today’s ever-expanding media landscape, CS3 includes almost every content. For video and rich-media professionals, CS3 Production
creative workflow tool available for designers and developers. The Premium includes After Effects, Encore and Soundbooth as well as
integrated package provides development and design tools for Illustrator, Flash and Photoshop. It caters for film, broadcast, web, DVD
print, web, mobile, interactive, film and video production. There are and mobile devices. One of the more innovative releases is Adobe Device
six configurations of CS3, which can be bought on their own or all Central CS3, specifically designed for those who are working on and cre-
together in the Creative Suite Master Collection. ating mobile content. A library of more than 200 mobile device profiles
CS3 Web Premium, for example, offers a set of tools for web and from cellphone OEMs and operators is built into Device Central. These
interactive design and development that includes new versions of include details of the capabilities, constraints and features of individual
Dreamweaver, Flash and Fireworks, as well as updates of Photoshop, devices. Content previews are available, using realistic mobile device skins
Illustrator and Acrobat Professional. CS3 Design Premium includes the to test the appearance, performance and behaviour of the content.
NEWS

Mission impossible?
Those who missed CK Prahalad on his recent trip to airlines); does it maintain and improve functionality (IT);
Johannesburg missed out. Best known for his book, does it make it difficult for incumbents to react (generic
The Fortune at the Bottom of the Pyramid, Prahalad medicines); is it sustainable and built on logical, internally
talked about how to cater for the poor masses and consistent business principles (single-serve sachets) and
about what businesses should be looking at in does it enlarge the size of the market (cellphones)?
order to compete in the future. While Prahalad used Another vital aspect of building a successful company is
many examples from India and other emerging paying attention to the drivers that will change the way we
markets, including South Africa, the general feeling look at the world. These include the convergence of
from the floor was that a few of the innovative technology, boundaries and ubiquitous technology.
ideas cited were unworkable locally. Instead of being passive buyers, consumers are going to
Marketing Mix got the feeling that far too many become procreators.
copyright: Business Report
marketers are simply unwilling to try new ideas that The following areas will have a significant impact on the
target those living on or below the poverty line – even if this global way we do business and should also be taken into account: brain studies,
market is worth trillions of dollars. nano technology, maths, genetics, artificial intelligence, communications/
The following are excerpts taken from his presentation: computing, global warming, energy, search engines and imaging.
According to Prahalad, the broad idea is not about positioning Prahalad points out that price-performance envelopes are changing
yourself in an industry space: it’s about discovering an industry faster than anyone expected. What does this mean for managers? It
space.There is a preoccupation with benchmarking best practices and means that everyone can have advanced technology solutions. In a
if we all continue to benchmark each other, everyone will gravitate to local context it means that we are not limited to what we can do in
mediocrity. We should be preoccupied with focusing on the next the townships. High-tech is not only for the rich – the only limitation is
practice rather than the best practice. The key is to recognise the range our imagination. Taking the opportunity to use poverty to leapfrog
of opportunities that exist in the emerging market; focus on consumer ahead requires imagination. Poor people don’t only have cellphones
insights that have not served before and figure out how to leverage today – they can also use technology. Many assumptions regarding
technology and new distribution systems etc to reach them. those at the lower end of the market have proved to be wrong. As an
Prahalad suggests that companies tend to look at the current example Prahalad cites pre-paid cellphone cards that require money
situation, do a budget and call it strategy. He says that companies upfront and rake in millions of rand.
should rather imagine a future and then fold the future into the Global consumer trends also need to be taken into account. These
company. In other words, companies should move from budgets to include: an awareness of individuality and experience, involvement, risk
innovation. Disruptive business models should be built. By this Prahalad taking, experimentation, technology-mediated relationships, global
means: does it radically alter the economics of the industry (budget community, green and a focus on the future.

Eye popping
Daniel Levy and Ryan Silberman, founders of
PopEye Wrap-a-Rental Media, have taken a
simple idea and turned it into big business
with the concept of advertising on car hire
company cars. They offer advertising space
on a range of Tempest Sixt cars, which are Rental products. The Adopt-A-Rental product ers an average of 4 500 km and is seen by
based at all major airports. “We have had a involves placing marketing paraphernalia in approximately 20 000 people each day.
phenomenal response to our products as the entire national Tempest Sixt fleet. The The Panel Mosaics offer marketers a variety
well as to this innovative concept,” says Levy, Wrap-A-Rental package offers marketers of panel sizes and positions, thereby providing
PopEye Wrap-A-Rental CEO. ad-space on branded fleet cars, as well as full branding as well as great flexibility and
PopEye Wrap-A-Rental offers two distinct marketing paraphernalia inside the car (including choice. “Outdoor media is restricted in vari-
services: the Wrap-A-Rental and Adopt-A- samples, pamphlets, brochures, etc). ous regions of South Africa, which is why our
Tempest Sixt ran an online pole for product is unique and desirable. We can
10 days, asking whether clients would rent a brand 100 cars based at Cape Town airport
car that is wrapped in branding. Of the and put our clients’ branded umbrellas and
1 500 who responded, 90 per cent said that cooler bags into them. These cars invariably
they would do so if this meant lower hire make their way to the beach – and so do the
rates. In this case both consumers and adver- free products,” says Levy.
tisers win: consumers get cheaper rates while For more information and ad rates, visit
advertisers get exposure. Each rental car cov- www.wraparental.co.za.

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


NEWS

Just add music


In the first of a new column, advertisers and brand owners are given an insight
into which music is currently enjoying its 15 minutes of fame and to the sounds
that would make a brilliant soundbed for an ad. It includes a wide range of local
and international music styles and most importantly, it puts marketers in the

Picture courtesy of EMI


know by highlighting songs that are hip and happening within different markets
right now.
The following list is courtesy of EMI Music South Africa.
Please contact Roy Harman Tel: (011) 911 1513 E-mail: royh@emimusic.co.za

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

Ok Go Winner of Grammy and MTV Rock – youthful, energetic, positive


Here We Go (treadmill video) awards for best video. Syndicated
by Nike (US) and MTN

Mims 1.4 million ringtone downloads in Rap – powerful and masculine


This Is Why I’m Hot the Us in two months. No 1 for
three weeks on Billboard Hot 100.
Very catchy

Kelis feat Will I Am Kelis and Will I Am sing about hav- Pop – fun, mainstream,
It’s The Weekend ing a fun time on the weekend – young and upbeat
for any social brand

Naturally Seven guys sing powerfully and cap- Pop – crossover – young and old.

Picture courtesy of EMI


Let It Rain tivate a cappella style. Their first sin- Fresh and vibrant
gle Feel It is one of the biggest hits
of the year. Interesting sound; will
cause curiosity

Herman Dune A quirky fun phenomenon of a song Pop – light-hearted, charming, cute,
Wish That I Could See You from France happy
Soon

Chemical Brothers Powerful electronic music from a Dance – uplifting, energetic, speed,
All Rights Reserved classic band drive

Suzanne Vega Strong awareness and favourable Jazz – soft, quirky, peaceful, relaxing
New York Is A Woman attitudes towards her unique vocals
will cause an audience to listen

Tasha Baxter Instant and catchy; it’s happy, Pop – cheerful, fun, friendship,
Fade To Black recognised and liked social, full of life

DJ Bongz Well-known and great for a bash House – anthemic, forceful, festive
As Long As You Love Me

Hip-Hop Pantsula Very crossover and popular ad Hip-Hop– patriotic and positive
Jabba

Vol 25 No. 5/6 I 2007 I MarketingMix 1 3


NEWS

Taxi TV
Provantage TTV is another way of reaching the millions of commuters Two hundred screens have been launched nationwide. These will be
that travel by taxi daily. In this case the advertising travels with them in followed by a further 200 in June and another 100 in July. There will
the form of TV screens, keeping them entertained for the duration of be a second roll out at some point in the future.
the journey. Created by Provantage Media, the TV screens are only Independent research into Provantage TTV was undertaken last
installed in new Quantum taxis and are conveniently situated for pas- month by Markinor. A major component was ‘to achieve a better
sengers to view. The screens are robust and lockable and content is pre- understanding of commuters’ needs, likes, dislikes and attitudes
loaded onto a chip, which is then loaded into the TV by specialist tech- around the new concept of in-taxi advertising.’ 100 respondents were
nicians. Each screen possesses a barcode that interviewed over one week and interviewers
records vehicle registration, driver details and travelled in taxis to observe reactions and
(significantly) driver routes. Drivers receive a fee responses to adverts on TTV. It was found
for having the TV. that forms of advertising seen or heard in
After intensive research involving taxi drivers, the past week, in the taxi, TTV came top
it was decided that the TV screens would not with 100 per cent, above radio (91 per
have sound as 70 per cent of drivers didn’t like cent), ad outside the taxi (74 per cent),
it. They do however have unique content on a billboards (65 per cent), pamphlets (31 per
30 minute loop. Advertising content is set at cent) and print ads inside the
30 per cent and could rise to 40 per cent in taxi (30 per cent). In terms of
the future. Preferential packages are available advertising awareness, prompted
to accommodate exclusivity in certain cate- awareness was generally high
gories and deals consist of monthly or yearly with ads for Nokia, Aquafresh
packages. Content (all of which is in English) and Clover; Kick Off led the way
includes film reviews, lotto tips, quizzes, with 85 per cent prompted
moments in history, hip and happening awareness. What is more telling
events, beauty makeovers and funnies. is a fictional product ‘Goo’ was
A tie-in with Kick Off magazine content has created for and only exposed on
also been agreed. “The recommendation for TTV. ‘Goo’ generated an unaided
advertising on Provantage TTV is to create recall of 32 per cent and aided
something unique while remembering recall of 66 per cent.
that there is no sound. We are able to For content, Comic Relief had the highest recall
offer regional advertising as well as an inte- (54 per cent), followed by a Nokia competition,
grated package across our other brand makeover, HIV and SA history. Ninety nine per cent of
activations. However, it must be stressed respondents claimed the screens were totally visible
that the TV ad should be able to work for the entire duration of the journey, with 88 per
as a standalone,” says Rene Venter, new cent aware of what was flighted on the screens. The
product development manager, majority of commuters spend between 25 and 40
Provantage Media. minutes in a taxi.

Brandz
The 2007 Brandz™ Top
100 ranking has been
released, along with a
few surprises. The fastest The top brands by category:
growing sector is fast BV 06 Top 10
food, followed by luxury, (US$m) BV 06 (US$m)
motor fuel, personal care Apparel: Nike 10 290 Google 66 434
and technology. Long live Beer: Budwesier 9 977 GE 61 880
the consumer! Millward Cars: Toyota 33 427 Microsoft 54 951
Brown interviewed over Fast Food: McDonald’s 33 138 Coca-Cola 44 134
one million consumers Financial Institutions: Citi 33 706 China Mobile 41 214
regarding almost 40 000 Luxury: Louis Vuitton 22 686 Marlboro 39 166
brands worldwide. Mobile/wireless: China Mobile 41 214 Wal-Mart 36 880
Soft drinks: Coca-Cola 44 134 Citi 33 706
For further information Motor Fuel: BP 5 931 IBM 33 572
visit www.brandz.com Personal Care: Gillette 17 954 Toyota 33 427

1 4 MarketingMix I Vol 25 No. 5/6 I 2007


EXPERT OPINION by helen mcintee

Bush basics
Three months ago I took a huge plunge near the ATM and while you are waiting in the
– I packed up my house, my daughter and my queue (of usually only one or two people) you
city life and moved to Hoedspruit. For those of are able to peruse the employment opportuni-
you who don’t know, Hoedspruit is a very ties. You can also examine what’s for sale and
small town in Limpopo, roughly 120km from what new events are taking place over the
Tzaneen and 160 kms from Nelspruit. I weekend. Apart from the notice board, most
mention these distances only because they stores or restaurant windows feature notices
give you an idea of how far I have to drive to such as the feeding times for the friendly
get to my nearest Woolworths! hippo down the road or the contact details for
Hoedspruit, according to my map, has 18 the local hockey club. Road signage is very
streets and not a traffic light in sight. We are effective because it displays telephone num-
therefore not pestered by people who are sell- bers written in large and visible letters. (This is
ing super glue or cellphone chargers. In fact, how I tracked down the local beauty spa.)
the only trader of this nature (that I have After living in the city for so long, I also find
seen) is the car guard who tries to sell cata- the high level of service extremely impressive.
pults on the side. We have a Friendly 7-11 (This is a marketing method that so many
store that closes at 9 pm and until recently, huge companies seem to leave out of their


only a Spar for groceries. When the long- plans.) I can phone the local butcher and he
awaited Pick ’n Pay store opened last month, it will quite happily select, cut and wrap the
was as if the circus had come to town – there Don’t you think that order for me to collect later on in the day.
was a real carnival atmosphere with loud When purchasing some furniture, I was
this ‘non-city’ market
music, sweets for the kids and balloons! While informed by the shop owner that delivery was
Hoedspruit doesn’t have a CNA or specialised is perhaps one that no problem at all as the “the lady at the cloth-
bookstore, there are two garages, the ever ing store has a bakkie.” None of this ‘small
present Wimpy and a gem of a bottle store
marketers should time’ marketing is due to a lack of money – it
with a selection of wines that I consider vastly assess and consider? just works.
superior to most in Johannesburg. There are Consider that Hoedspruit is set among the
It might be worth its


also many hardware and building supply stores very best of South Africa’s game lodges. It is
(for which I am grateful, as these have always weight in gold. situated about 40 kms from the Kruger Park
been on my list of favourite places to shop!) and has a small but beautiful award-winning
As a professional marketer of some 25 years commercial airport that caters to tourists by
standing, I have been intrigued by the market- offering twice daily flights. It is surrounded by
ing methods that are implemented in small big farming estates and has a large and active
towns such as Hoedspruit. It has occurred to air force base. Many people, both in and
me that so many of us (professional marketers) around the town, are self-employed city life
spend most of our working days (and nights) ‘refugees’ or business owners. For these
slogging it out in tall buildings, analysing the individuals it is a matter of forgetting all the
pros and cons of advertising in the Sunday fancy competitions, glossy magazine
Times or scraping huge budgets together for a advertising and massively expensive newspaper
new campaign on M-Net or 94.7 Highveld back again, probably because they are almost ads – it’s about getting back to basics. Don’t
Stereo. In doing so we have perhaps lost touch guaranteed to feature someone that you you think that this ‘non-city’ market is perhaps
with the millions of people who don’t live in know. These publications have become the one that marketers should assess and consider?
the concrete jungle. local ‘directory’ of services and are especially It might be worth its weight in gold. g
Marketing here is as basic as asking the useful for town newcomers like me.
friendly owner of the gift shop to shove your Rubbish bin advertising is also still extremely Helen McIntee
pamphlets into her customers’ paper bags. popular. It’s a very useful guide when you
director, IMM Graduate School of
Alternatively you might place a small advert want to find a specific store in Hoedspruit –
Marketing
(usually designed in Microsoft Word) in either you just drive around its 18 streets and look
(011) 628 2038
the Hoedspruit Week or the Kruger 2 Canyon. for the store in question.
helen@imm.co.za
Both of these are read from cover to cover and There is a sizeable notice board situated

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


by fulvia becatti BRAND ANATOMY

Get ready, set, go banking


In 2006, Go Banking began to conduct specific customer research, and Blue Apple was placed in charge of the BTL, direct marketing and
which would guide the complete overhaul of the Go Banking brand. In copy writing. Grapevine Communications tackled the PR. “Throughout
spite of the belief that they had a strong presence in the market, they the process we did it together and all the involved parties made an input
were disappointed with the brand’s acceptance and felt that their cus- and were able to have their say. It was as though they were holding up a
tomers had a lot to teach them. “Following the customer research we mirror, which was painful at a lot of stages because we were proud of
decided to take some time out to improve,” says head of strategy, Steve the way we had been doing things, even though our customers didn’t
Bedingfield. Now Go Banking is back with a new look, a new feel – and relate to it,” says Bedingfield.
plenty of bang. In addressing the look and feel of the brand, the Go Banking logo was
They addressed issues in six key areas that included: the price and simplified in the hope of making it more attractive to customers. To over-
convenience of the products; the reliability and responsiveness of the come the issues that were related to the identity and function of Go
brand and the staff; the brand itself and how customers related to it. Banking, the Nedbank and Pick ‘n Pay name brands were separated from
While customers appreciated the fact that the product made banking the Go Banking brand name in the logo (although the green and blue
convenient and easy, they were unsure about Go Banking’s positioning logo colour scheme pays tribute to its parent companies).
and exactly what the brand offering was. It was unclear whether Go Promotional literature was revamped to make it reader-friendly: it now
Banking was a Pick ‘n Pay loyalty card, a shopping card or a bank card. reinforces Go Banking’s role as a bank (clarifying consumer confusion).
“As a result we found that our customers’ confusion led to the erratic “All our literature – from brochures to website and call centre engage-
and limited use of their accounts,” says Bedingfield. Customers also ments – has been simplified to tell it just like it is. While previously our
expressed concerns about the reliability and credibility of the product, material (and approach) tried to tell the whole story at once, we now tell
since it was not established within a traditional banking environment. “It it simply and in digestible, bite sized chunks, resulting in better under-
didn’t have the gravitas of a serious bank behind it, even though it is a standing and improved messaging,” says Bedingfield. The literature is
division of Nedbank’s business. Customers don’t want Pick ‘n Pay to be now devoid of the marketing/sales pitch and the banking jargon that
their bank.” had previously confused customers. He has
Taking this feedback into account, since received letters and e-mails from Pick ‘n
Bedingfield brought together a team Pay staff indicating their approval of the new
of specialist companies and individu- literature: its colourful design and simplicity
als to tackle each area of the Go have made it more attractive to customers.
Banking brand and to collectively engi- “We believe that if we give you the right
neer the brand’s direction. Y&R Hedley facts, you will make the right decision – and
Burne was tasked with the ATL and brand we do believe that we have the best value-
strategy; Amorphous developed the new based offer,” says Bedingfield.
brand look and feel as well as the website; Go Banking boasts great rates, no annual
Nota Bene worked on the media planning card fees and pricing that has remained

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


BRAND ANATOMY

unchanged over the past three years. Their cards number and very few IVR options, which
have also been revamped. They have done away ensure quick access to a call agent.” The
with the Gold and Silver status of clients, opting team has received numerous compliments
instead to provide all their customers with the on the improved call centre experience,
best service and the best treatment. including a very positive Finweek (15
Previously the bulk of Go Banking’s promo- March 2007) review.
tional activity was predominantly represented While the brand’s new positioning has
in-store – literally only in-store – and this had not yet undergone official evaluation and
entrenched consumer belief that this was a Pick measurement, it has already seen very pos-
‘n Pay loyalty or cash card. “We have improved itive results. Bedingfield points to a growth
our in-store message and have moved the bulk in real active accounts; growth in usage
of our activity into the marketplace through per account (ie transactions per account
varying degrees of media and PR activities,” says holder); account holders using their
Bedingfield. The focus is on fun but not at the accounts beyond the Pick ‘n Pay environ-
expense of serious banking. The service is ment; growth in the usage of account
now outbound and engages customers on a facilities (such as debit orders, Internet
voluntary basis, whereas previously the in-store banking, etc) and a sales increase relative
sales staff pushed sales. to the increased brand awareness and
Today the Go Banking brand is advertised overall transaction growth. He adds that
through the use of outdoor billboards, radio the success of the rebranding lies in the
campaigns, TV advertising and consumer media increased activity of the customers.
(business publications etc where, according to A further positive development is the
Bedingfield, the message is best received). The improved rapport that Go Banking has
brand now also makes use of direct marketing with Pick ‘n Pay staff, who now take the
platforms, including SMS interactions. The initiative in providing the team with feed-
500 silhouette cut-outs are perhaps the team’s back. They also receive training and will
favourite promotional component. These are hand out call centre business cards when
placed in store (and in other key locations such they cannot answer a customer’s questions
as major road intersections). The life-sized about Go Banking. “They are happier
silhouettes generate buzz, cause disruption because they no longer feel trapped by
and carry a provocative message. “They are complicated customer questions,” explains
strategic and more mobile and allow us to Bedingfield. Brochures at the till points are
respond very quickly in our campaigns. Hiring a taken up more rapidly and online and call
crowd of 500 people is difficult – and we centre traffic has increased. The new web-
already have them in the form of these site is more intuitive, allowing visitors to
silhouettes,” says Bedingfield. find the information they need swiftly.
The Go Banking call centres also underwent a makeover in response “While the measure of our success is how quickly we have raised the
to customer feedback. Some of the major related issues included the bar, we’re not resting on our laurels. Every day we have to behave in a
fact that individual agents were dealing with specific tasks and that manner that gets us closer to the five out of five rating,” says
customers would be handed from one agent to the next in a single Bedingfield. He adds that the revamped Go Banking brand is aimed at
phone call. They had to call different those who enjoy contemporary
numbers (depending on their enquiries) society; who want to be in the
and often did not know which number now and who are progressive
to call. Queuing times were too long and willing to express their identity
and first call resolution was limited to a through the choices they make.
few enquiries. The Go Banking customer is
Now call centre agents work in a looking for liberation from tradi-
comfortable and spacious environment. tional banking methods and
“This has gone a long way to improving wants banking to be easy, fun,
the morale and commitment of the uncomplicated and simple. “We
agents,” says Bedingfield. They also are definitely attracting an astute
receive extensive training on everything customer who understands
from general life skills to banking skills, banking. In the month since our
etc. As a result of this multi-skilled train- relaunch we are happy with the
ing, first call resolution is at 90 per cent. progress we are making, which is
“We now have only one call centre in line with our plans.” g

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


by richard duncan EXPERT OPINION

Garbage i n g
This old adage is never truer than when the first group starts. I have long since learnt
it is used in the context of market research. that research groups should not be rushed and
The quality of the output of research groups that a great deal of time, effort and concentra-
is completely contingent on the calibre of tion should be invested by all concerned in the
their input. early stages of any research project. There are
During a career that has spanned two also times when the right route requires fine
decades I have sat in on some spectacular tuning along the way and in these cases the
research groups and have witnessed my fair discussion guide or group participant profile
share of unmitigated disasters. The latter may be changed based on learning’s from the
always comes at a great cost to clients in initial groups. Whilst this may appear to be
terms of wasted time and money. More wasteful, the knowledge gained should
often than not, the client walks away with a ultimately more than justify the additional time
limited amount of new information. and money spent.
Occasionally the group moderator will tease While doing some desk research of my own
out some real nuggets and great insights but before writing this article, I spoke to a number
generally, clients complain that they have of research specialists here in Sydney and in
heard it all before. South Africa. I finally turned to Research
There are many reasons for this phenome- Surveys and recently retired CEO and doyen of
non. Certainly great facilitators can make all the industry, Henry Barenblatt, for counsel on
“Ensure that your the difference. If they are well briefed and if this matter. After considerable assistance from
they prepare properly they can collect invalu- Barenblatt and his colleague Kudzai Guvi, the
research company has able insights from group participants and get qualitative account manager, I spoke at length
past the predictable answers. However, the for- with Kim Krone, national qualitative projects
covered all the bases mula for success shouldn’t rest entirely on their manager. Her candour and insight into the
and that it has shoulders. In order to get it right the correct industry was refreshing and furnished further
steps need to be taken right at the beginning proof of the high level of professionalism that I
made the necessary of the process and each stage needs to be have come to expect from Research Surveys
contingency plans for properly completed. Sadly this is not the norm during my 11 years of working in South Africa.
and this is where we find the Achilles heel of So where does qualitative research fall short
the unforeseen.” qualitative research. and where does it sometimes come unstuck?
Frequently the clients, be they marketing While I discovered a few glaringly obvious
departments or advertising agencies, haven’t areas (which I will cover) there was one in par-
thought through what they are looking for. ticular that was frighteningly simple and yet
Sometimes this is because they are on a fishing dramatically and disproportionately important
expedition while at other times they are merely to the final outcome of research groups.
seeking to ratify an existing belief, concept or (Get this one wrong and frankly, it’s all a waste
idea. A further complication arises when a of time.)
project is rushed because the client has not Firstly, what are the more obvious potential
allowed sufficient time for the exercise to be slip-ups?
completed. This often means that the agency Not surprisingly, moderators don’t really
planner or research executive only gets the know what participants look like before they
discussion guide to the client one or two days walk into the room. This may give rise to prob-
– and on occasion only an hour – ahead of the lems that might be avoided if better intel is
groups. The same applies to the research supplied upfront on each participant. It puts
boards or animatics… On top of this the pressure on the moderator to manage and
moderator is often only fully briefed just before control groups and it becomes even more

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


EXPERT OPINION

n garbage out
difficult if they have a troublesome participant. should not work for a related business. If par- run workshops to update them on the desired
It also places an emphasis on the importance ticipants fail to disclose the correct answers to procedures. Research Surveys has realised the
of proper training for moderators. If you have these questions, either at recruitment or in the importance of this area and are appointing a
ever seen the old Henry Fonda movie (remade screening questionnaire when they arrive, they recruitment manager to improve the quality of
with Jack Lemmon) Twelve Angry Men you will can directly compromise the probity of the their recruiters. The business of recruiting for
remember the power that one person has to research findings. business-to-business research is more compli-
change the minds of others. It’s up to the The recruiters themselves (the people who cated and has given rise to specialist compa-
moderator to watch out for this. Whilst I’m go out and recruit the group participants) rep- nies that find group participants. This automat-
told that there is an industry surplus of moder- resent another aspect of the recruitment ically raises the professionalism bar.
ators, the really good ones are rare. process. Have you ever given them a thought? Among the key things to remember when
Wouldn’t it be great if there were a central On the whole they are freelancers who are embarking on a qualitative research project are
database that kept a record of problem partici- only paid for the quality participants who show making sure that you know who your con-
pants? Whilst most research companies have up. They tend to come from all walks of life sumers are and setting the correct recruitment
internal databases, they only become effective rather than having some sort of formal qualifi- criteria. Don’t be afraid of setting more filter
in the bigger research companies. SAMRA cation or industry accreditation. Some are ex- questions. This may require additional funding
would be the only other viable alternative, group attendees and where they live is often and time but the results should justify the
since research companies tend not to share more important than who they are. This is costs. You should also avoid approaching
data for practical and legal reasons. clearly a recipe for disaster because the quality groups with a preconceived notion – and don’t
Consequently there is no formal black list. of the work varies according to each person react if you don’t like the truth that emerges.
Have you ever wondered whether the new and this fundamentally undermines the poten- While it is your prerogative to ignore it, if this
product that you are investigating and the new tial for consistency in recruiting group partici- is the case, you should ask whether you should
brand positioning that you are testing will pants. To use a gambling analogy, it’s like be conducting research at all.
remain a secret after a research group – and changing the croupier each time the roulette I hope that this article has served to help
whether the participants will tell their friends wheel is spun – it resets the odds. you to appreciate some of the potential flaws
or families? Not all participants sign confiden- How do they recruit? Some recruit through and pitfalls in qualitative research groups.
tiality documents and in any event, how would their networks and through word of mouth. Given the cost of running groups these days, it
you trace a leak back to one of them? This is fine, provided they conform to SAMRA’s seems logical to me that any loose ends in the
This brings us to the major Achilles heel of rule that not more than two people in a group recruitment and preparation phases should be
qualitative research groups. may know each other. Then there is the tied up before you sign any cheques.
The key to success or failure starts with the intercept recruit who is identified at a specific I am not advocating the demise of groups
recruitment process. No matter how good the place, eg in front of a yoghurt fridge in a nor do I believe that they cannot be effective. I
moderator, the facility being used, the support supermarket. Whilst this allows the recruiter simply believe in the old adage that ‘fore-
material that is prepared or the discussion to find relevant people, this method does warned is forearmed.’ Just ask the right ques-
guide, if you have the wrong people in the have its flaws. Some also recruit by using tions to put your mind at rest. Ensure that your
room you might as well go home early. the telephone, which is the least desirable research company has covered all the bases
The accuracy of the information provided by because it’s non-visual and so further limits and that it has made the necessary contin-
the group participants completely depends on effective screening. Finally, there is ‘list gency plans for the unforeseen. You cannot do
their honesty. Since people can become stale recruiting’ where the specific details of known more than that. As long as market research is
and ‘coached’ they fail to qualify to attend customers (such as BMW drivers) are provided driven by human nature it will remain more of
groups if they have been over-exposed to simi- by the client. This is one of the most difficult an art than a science. g
lar research groups and are research groupies routes since acceptance levels are affected by
of a sort. This can directly affect the value of the fear of this being a sales tactic, even if
the group’s output. Standard SAMRA guide- recruiters have an endorsement letter or an Richard Duncan
lines stipulate that they should not have been introduction from the client. Sydney, Australia
to more than four groups; should not have The recruiters don’t have any formal training +61 411 549 791
attended a group in the last six months and for this process, although some companies do lduncan@bigpond.net.au

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


by fulvia becatti EDUCATION

A learning
curve
Change is a constant within the marketing credentials to look out for.) “I think the secret Mumford has this to say: “With regard to
environment and marketers continually need really lies in having a good team of lecturers. industry trends, I think that marketers need to
to keep up to date on the latest trends. They should have more than a few years of gain knowledge about the following key
Courses and workshops offer an ideal way for experience in their field of practice and even aspects: new media (such as the cellphone
marketers to extend their knowledge and more importantly, they should currently be in and Internet), services marketing (i.e. intangi-
skills in bite sized sessions. “Things change all the process of creatively integrating the tech- ble products) and global marketing (including
the time and generic courses tend to be nologies themselves, pushing boundaries and marketing to different cultural groups).”
quickly outdated,” says Alexia Georgiou, experimenting with what they know,” she Thomas emphasises the focus on multimedia
academy manager, Africa Academy for says. Ramon Thomas, managing director, experiences and campaigns as well as on user
Communications. Netucation, agrees that facilitators should generated content (of course this includes
When discussing change one must also have a track record in the use and implemen- word of mouth marketing, which has more
enquire about industry transformation. Is tation of the media and methodologies that power to drive sales than any other form of
transformation being effected – and what is they teach: “A good course is one which has online marketing). “You cannot buy attention
being done to address this issue? a practical component; one that you can any more. You have to start thinking about
Short courses and workshops offer great learn by doing. A bad course only includes how to amaze small groups of people or
value for qualified marketers who are simply theory and you’re expected to figure it out on communities in the way that they prefer.”
wanting to up-skill. What should one be your own when it comes to the practical Kleyn lists financial literacy, as well as
looking for? implementation.” Conceptual thinking and customer psychology and sociology, as another
Georgiou believes that a hands-on problem solving modules are also very valu- two areas that marketers need to focus on.
approach and a concise, cost effective pack- able, particularly in developing creativity, says For designers, having applicable skills is
age are ideal. Kathy Mumford, marketing Csernyanszky. It’s becoming ever more impor- more important than having experience in
consultant, IMM Graduate School of tant to develop skills in new media, particu- the field. “This is where we stand after 30
Marketing, punts the value of relevant con- larly in Web 2.0 (blogging, social media, etc), years of the PC and 12 years of the World
tent that is presented in the right contextual throughout the marketing, advertising and Wide Web. The medium through which we
‘language’ as well as the appropriate applica- creative industries. Thomas says, “Most grad- now communicate as a human race is the
tion of theory. As Eva Csernyanszky, owner uates are going into the workplace with very Pixel. This is a digital world and it’s the down-
and founder of the Friends of Design little understanding of how these new tech- load era. If this isn’t influencing the way you
Academy of Digital Arts puts it: “The course- nologies work – those who have taken it think and produce, you are out of touch,”
ware should be up to date and should inte- upon themselves to learn more about them says Csernyanszky.
grate mediums across different software may only be partially prepared for the task Sadly – according to Lerato Ndoro, Group
applications. The course itself should mirror at hand.” HR director, FCB South Africa – it seems that
what’s hot out there and equip you to take it With the vast array of courses, workshops in the advertising and creative industries there
further on your own.” Dr Ludi Koekemoer, and presentations on subjects that range is an attitude of been there, done that, know
head of the AAA School of Advertising, from branding and new media to digital everything amongst the older generations.
speaks of the importance, value and applica- design, there is no excuse for marketers who Generally, they don’t pursue extra training
bility of focused content. don’t take advantage of the learning oppor- unless the agency conducts in-house training.
Mumford believes that good courses tunities that are available. “There is a huge The trend seems to be that it’s the younger
involve the sharing of ideas and experiences. need for training and development in our crowd (who have been working in the indus-
She adds that they should add value to one’s industry,” says Georgiou. There is also a need try for less than five years) who are hungry
CV, while also providing one with skills that for marketers to refresh contextual input, for knowledge: they are the ones who are
can be applied in the working environment. such as changes in the legislative, competitive taking the initiative to sign up for short cours-
A good course is recognised by the relevant and consumer environments, says Nicola es to supplement their knowledge and skills.
institutions and agencies. (Registration with Kleyn, senior lecturer, Gordon Institute of Other education issues that are impacting
the Department of Education and Services Business Science. on the marketing and advertising industries
Seta accreditation are among the right What should you be learning more about? relate to transformation. Is the industry doing

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


EDUCATION

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

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


EDUCATION

Who offers what:

AAA School of Advertising:


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

AAA Module in Brand Management


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

Marketing Mix / AAA School of Advertising Competition MarketingMix

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

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

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


EDUCATION

The National Electronic Media


Institute of SA (NEMISA):
NEMISA specialises in teaching the production
and technical skills that are applicable to the TV,
radio and broadcasting industries. It offers training in TV, radio, animation, broad-
Netucation: cast engineering and multimedia design. For more information contact NEMISA
Netucation is an online on (011) 484 0538 or visit www.nemisa.co.za.
research organisation based Short courses:
in Johannesburg that focuses on understanding online • Digital photography • Camera operations
opportunities. They are currently in the process of registering • HDTV for the broadcast industry • Advanced audio production
with the Services Seta. Visit www.netucation.co.za for more • Autodesk 3D Max • Ten week animation course
information. You can also contact Ramon Thomas on
(011) 433 0134 or e-mail Ramon at ramon@netucation.co.za.
Vega: The Brand Communications School
Courses: Vega offers a Diploma in Communications Management that
Social Networking Success workshop is ideal for undergraduates as well as for the newly qualified
(half day): who wish to further upgrade their skills. Marketers can apply for a range of individual
“The major value of this course is that it offers a holistic picture modules that include the principles of branding; business communications; media
of social media, marketing and what is often called Web 2.0, planning and applied branding. Vega also offers two-to-four week part-time courses
all in one package. This is a crash course to introduce in Digital Media, ranging from desktop publishing to video editing.
participants to the specifics of the shift that social media are For more information on these courses and diplomas, call the Vega School on
causing – firstly, through the production of content and (011) 883 0130 and chat to Tanya Taylor. You can also e-mail Tanya at
secondly, through the consumption of content. The distribution Tanya@vegaschool.com or Thembi Mogala at thembi@vegaschool.com.
system is changing and morphing into something that old school Workshops will also be conducted during the year, covering such topics as The
marketers are afraid to confront. This course empowers them A to Z of Branding; Building Brands Online: New and Consumer-Generated Media
with the confidence that they require to continue to advise their and The Brand & the Law. For more information contact Roshni Nana on
clients in the best possible ways,” says Ramon Thomas, MD, (011) 883 0130 or e-mail Roshni at roshni@vegaschool.com. Visit www.vegaschool.com.
Netucation. He is currently negotiating with AMASA and the
AAA School of Advertising to offer this course on a half- day
basis to their members and students. The course will run on The Africa Academy for Communications:
25 May and 22 June 2007 at the LMI Academy on Hendrik The AAC offers courses and workshops each month on topics that
Verwoerd Drive, Randburg. The cost of the course is R1 500 range from branding and client/agency relationships to workplace assertiveness.
per person. Workshops:
• Maximising your radio Rand (Bob Mabena, executive manager PCS, SABC); 23
Blogging for Business (full day): May 2007, at Blandford Manor.
This course is designed for people who work in the media, • Copyright issues: who owns your brand? (panel of law and publishing experts);
marketing, PR and journalism. It’s also appropriate for 29 May 2007, at Hackle Brooke.
those who need to communicate internally with staff and • Advertising and retail today (Muzi Khuzwayo, MD, Hunt Lascaris); 21 June 2007,
externally with clients and partners. It covers such topics as: what is at Hackle Brooke.
blogging? and corporate blogging; marketing your blog; blog and Visit www.acasa.co.za for more information on the AAC and what it offers.
PR 2.0. It will also equip candidates with skills in podcasting and Alternatively contact Alexia Georgiou on (011) 781 2772 or e-mail her at
videocasting. alexiag@aaaltd.co.za.
This course assumes that candidates possess a basic
knowledge of email and search engines. The cost is R2 500 per
person. It will be held on 24 May and 21 June 2007 at the LMI The Friends of Design Academy of
Academy on Hendrik Verwoerd Drive, Randburg. Digital Arts:
Short and Modular Courses are offered on the following
Online Social Media and Marketing (OSMM): packages (essential and advanced skills):
This course is designed for people who work in media, PR and
• Adobe Indesign® • Adobe Dreamweaver® • Adobe After Effects®
journalism, who need to communicate internally with staff and
• Adobe Illustrator® • Adobe Flash® • Migration Macromedia
externally with clients and partners. It covers topics that include:
• Adobe Photoshop® • Adobe Flash Actionscript® • Freehand®
blogging, podcasting and videocasting, RSS, understanding
• Apple iWeb® • Apple Final Cut Pro®
online distribution and contextual advertising. The course
assumes a basic knowledge of email and search engines. It will Courses in web publishing are also available. All courses are available in hourly
be held in Johannesburg on 14 June 2007 at The Business Place, training packages for individuals. Group training is also available. For more
as well as in Cape Town on 21 June 2007 at Bandwidth Barn. information, please contact the Academy on (021) 461 9071 or e-mail
The cost is R1 500 per person. info@friendsofdesign.net or visit www.friendsofdesign.net.

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


by fulvia becatti SPORTS MEDIA

Picture courtesy of EIMAGE


Putting your brand
in pole position
Sports media is a passion-filled environment. Clint Roper, deputy editor, Soccer Laduma,
According to SuperSport’s marketing manager, the paper’s circulation has increased to 50
Andre de Villiers, audience and subscriber 000 when compared to this time last year. It
numbers have grown, as have sponsorships hopes to give the national weekend papers a
and advertising. “The larger events are sold run for their money by 2020. In addition to
out,” he says, “because live coverage draws increased circulation, Soccer Laduma has seen
the biggest audiences.” The PVR has met the an increase in advertising sales. “2010 is play-
Picture courtesy of EIMAGE

needs of sports fans in particular as it allows ing a massive role here. FIFA regulations
them to catch rugby matches live while oth- make it difficult for advertisers to get into this
ers in the house catch their favourite soapies. arena and this paper provides them with a
The facility to record programmes means that way into soccer, particularly the PSL,” says
no fan is ever torn between which two events Roper. The newspaper is also increasingly
to watch. aware of the impact of new media and is
Print media is faring well. According to planning the development of a new website

2 4 MarketingMix I Vol 25 No. 5/6 I 2007


ADVERTORIAL

Sport. It makes grown men and women cry and pulls strangers
together in their shared devotion. It can build the pride of a nation.
It’s a trillion dollar industry, and today’s sports stars are worshipped as
heroines and warriors. It’s not surprising then that brands spend
billions worldwide associating themselves with sports and sports stars,

“In a country characterised by and that sports marketing has become an integral part of brand
budget. But how do you ensure that you receive maximum return on
your investment?
diversity, sport has become a
Sports marketing company MSCSPORTS has
binding force which unites the answer.
MSCSPORTS is a company which Makes Sport Count by maximising
communities. MSCSPORTS is their clients’ ROI through customised and value-driven opportunities
that have specific objectives, high measurability, and that deliver
committed to ensuring that your significant brand exposure to relevant markets.

brand is associated with the right Joint MD of MSCSPORTS, Neil Jankelowitz, believes that sport is the
way forward for every business. “We partner with you and help your
sporting entity. We have proven brand to seize value-driven and unique marketing opportunities that
will place your brand firmly in the hearts and minds of South Africans.”
ability to deliver the maximum
One of South Africa’s most recognisable brands, and an MSC-
return on investment with definitive SPORTS’ client, OUTsurance, entered the sports marketing arena some
12 months ago through inter-alia, the sponsorship of the Supersport
measures thus ensuring that you Update channel, as well as title full sponsorship of the road running
event, the OUTsurance Gun Run in Cape Town. Marketing Manager of
Make Sport Count.” OUtsurance, Peter Cronje, explains how sport has offered a unique
value proposition to his company.

– Neil Jankelowitz
“Sport has become an experience in which fans and spectators
get caught up in a world of passion, excitement and fun. The
exhilaration that a close match can create is a unique memorable
experience with which the product will be associated. MSCSPORTS
has ensured that OUTsurance is in touch with our customers in ways
which enhance their experiences and which have worked wonders for
our brand.”
ADVERTORIAL

Another client of MSCSPORTS, is RAM Hand-to-Hand Couriers. “Recently we held an event around the donations made by Tedelex
This courier company has managed to achieve the ultimate marketing to the BIDVest WITS University Football Club, and they ran the event
mix, by ensuring the broadcast sponsorship of South African Test from beginning to end. They organised huge media presence, handled
Cricket on Supersport, and then supporting this ‘above the line’ all the logistics, and ensured that they invited all the right people.
campaign, with ‘below the line’ events, such as the RAM Captains MSCSPORTS is committed to the football club. It’s not strictly business
Breakfasts. This event was a series of national corporate Q & A ses- – they’re passionate about the team, and want to see us succeed.
sions, with cricket captains Graeme Smith and Ricky Ponting, hosted They are a part of the fabric of the organisation. They’re effective, and
by Neil Andrews. operate with true expertise.”

Another key area of business for MSCSPORTS is event


management, which involves the conceptualising and
co-ordination of sports related events that deliver maxi-
mum value for our clients. We offer services that range
from the concept creation, to the management of budg-
ets, venues, branding and PR, catering and guest lists,
media coverage as well as guest speakers and celebrities.

In addition to the RAM Captains Breakfasts, MSC-


SPORTS has also conceptualised and managed the official
PSL Awards After Parties with Castle Lager and SoccerLife,
as well as the Official SAA Supa 8 After Party, and the
Sowetan Extra Time soccer sessions in association with
Joint MD of RAM Hand-to-Hand Couriers, David Lazarus, explains The Famous Grouse Malt Whisky.
how his return on investment is monitored. “Through MSCSPORTS,
we appointed a leading sports marketing research company to Another of MSCSPORTS’ core competencies is the production and
monitor our investments. This, alongside the fact that MSCSPORTS selling of licensed signed sports memorabilia. Joint MD, Barney Girnun
constantly conducts their own research, has seen both MSCSPORTS explains how the sports memorabilia department works. “We are the
and RAM Hand-to-Hand Couriers consistently delighted with the official licensee for Cricket SA and SA Rugby, and have established,
results, showing significant above the line exposure and enhanced sound and credible connections all around the world with regards to
brand equity in our field.” securing golf and other sport-related memorabilia items. All of our
items come with certificates of authenticity guaranteeing that the
Jankelowitz believes that “hands-on” management is key. “We are autographs and items are the originals. To date we have raised over
well aware that we have a way to go to achieve our mission of R10 million for various charities through the auctioning and selling of
becoming the ‘best sports marketing company in the world’. However our prized pieces.”
we know what we have to do and we love doing it. It’s all about
constant communication and involvement with your client.” With the 2010 Soccer World Cup approaching, and a major
sporting and business opportunity on the horizon, many corporates
MSCSPORTS has managed the BIDVest Group’s sports marketing have begun to see the benefits of associating their brand with sport.
portfolio for a number of years, which has included the sponsorship of Neil Jankelowitz concludes. “In a country characterised by diversity,
the horseracing channel, Tellytrack. This sponsorship has seen BIDVest sport has become a binding force which unites communities through
reach their higher LSM target markets, whilst investing in and patriotism. MSCSPORTS is committed to ensuring that your brand is
supporting the sport of horseracing. associated with the right sporting entity. We have proven ability to
deliver the maximum return on investment with definitive measures
In addition, MSCSPORTS manages the BIDVest Wits Football Club thus ensuring you Make Sport Count.”
account, which includes event management, consultancy and public
relations. Derek Blanckensee, CEO of BIDVest Wits University Football To contact MSCSPORTS, please call Caroline McKay
Club, explains how the PSL outfit works with MSCSPORTS. 082 904 6848 or visit www.mscsports.co.za
SPORTS MEDIA

Picture courtesy of EIMAGE


which they hope to launch in conjunction with the new PSL
2010 FIFA World Cup: season around the end of July. “It will be unlike anything else
Guide to FIFA’s official marks out there,” says Roper. While he cannot as yet divulge any
details about the content of the website, he says that they are
Official marks include: the logos, words, symbols, titles and other
investigating what gets people excited, keeping in mind that
trademarks associated with the 2010 FIFA World Cup. FIFA owns Soccer Laduma has always been a ‘paper by the people, for the
the rights to the official marks, which are protected by trademark people.’ Similarly, the growth in the mobile sphere is something
to be considered. “This is a massive area. Africa will certainly be
registration laws and/or copyright laws, as well as laws of intel-
communicating through the medium of the cellphone in future
lectual property. – more so than the Internet – and even entry level phones will
FIFA has outlined the basic Do’s and Don’ts that govern the use of enable access to the Internet,” says Roper.
The Big Brother of the sporting world – sports sponsorship –
these official marks. These aim to prevent Unauthorised Association
offers obvious benefits for brands. These include: exposure and
(i.e. the creation of an unauthorised commercial association). The differentiation in an otherwise fragmented and cluttered media
use of official marks that create unauthorised association is prohib- environment, positive brand associations with sports teams and
sports stars, as well as merchandising opportunities that boost
ited in advertising, promotion, games and competitions or ticket
brand exposure and help to build brands. “South African
promotions. They may also not be used: in editorial, commercial culture is very powerfully sport-oriented and sponsorship ‘gives
match schedules, company and website names; on merchandise back to the population,’ which helps to increase brand affinity,”
says Morne du Plessis, MD: Navitute, a SAIL Group company.
and in-store decorations; in internet technology (ie websites, hyper- He adds that sports sponsorships can create corporate hospitality
links, online ads, blogs, MMS, SMS, WAP communications). and CSI opportunities that are good for business. “There is
considerable pressure on SA brands to show their humanitarian
For more information, contact the Local Organising Committee’s
side and big budgets are put aside for the creation of a caring
Emmy Casaletti. Contact (011) 567 2010; e-mail: market- perception,” says Dominique Smith, MD, Provantage. He
ing@2010saloc.com. Visit the FIFA website at believes that while sponsorships are not always engineered with
the objective of driving sales, they are effective brand building
www.FIFAdigitalarchive.com.
tools that place brands top of mind. “The decision-making

2 8 MarketingMix I Vol 25 No. 5/6 I 2007


SPORTS MEDIA

process is helped by the sponsorship Global Brands Group SA


property,” he says.
Sponsorship-related events and competi- Global Brands Group (GBG) has been appointed FIFA’s exclusive worldwide
tions allow brands to engage with fans in the licensing representative, as well as store operator for FIFA branded retail opera-
live environment. Competitions, for example,
tions. According to the FIFA press office and Mark Methany, CEO and co-chair-
can create aspirational opportunities that are
not available to the average Joe (or even to man, Global Brands Group, GBG has also been granted the rights for the on-
the wealthy Joe). “Even if you have a lot of site concessionaire for all FIFA events. As such, they will sell merchandise at sta-
money, you still don’t have the means to
dium venues during the 2010 FIFA World Cup South Africa. GBG will also
meet Schumacher or the Manchester United
football team. Sponsorships and competitions negotiate with third parties who wish to get involved with merchandise sales.
allow for the creation of these opportunities,” For more information regarding licensing matters (with particular reference to
says Smith.
the official marks), contact Nicholas Bloom at GBG’s South Africa office. Email
According to the BMI Adult SportTrack™
reports, direct sponsorship spend grew from Nicholas on nicholas.bloom@globalbrandsgroup.com.
R63 million in 1985 to R2 613 million in
2006 (an annual compound rate of about
19.4 per cent). Including leverage spend,
almost R5 billion was invested in local spon-
sorship in 2006. The report found that by
comparison Adspend had increased at a rate
of 16.1 per cent per annum. The end result
was that while sport sponsorship was only
7.8 per cent the size of adspend in 1985, this
had increased to nearly 14 per cent by 2006.
“Figures indicate that worldwide sponsorship
spend has increased by 81 per cent in the last
decade. However this growth is slowing
down, as witnessed by the reduction of year
on year growth from 14 per cent in 1999 to
seven per cent in 2000,” says du Plessis. In

Picture courtesy of EIMAGE


fact South Africa’s sponsorship growth out-
performs that of other markets. According to
BMI-Sport Info data, SA’s average 2005 on
2006 growth was placed at 18 per cent (the
figures for North America and Europe were
10.5 per cent and 10.9 per cent respectively).
While sponsorships appear to be increasing,
a lot of money can be wasted due to a lack
of strategic planning and thought. According
to Smith, marketers frequently neglect spon-
Which sports are the most popular? (BMI-Sport Info)

sorships and waste sponsorship budgets In terms of sponsorship support, the big five sports (which account for more
through poor understanding and flawed than 65 per cent of the total sponsorship spend in SA) are: soccer, rugby, cricket,
processes. “Sports sponsorships fall short of
motor racing and golf. More than 50 per cent of the total hours of TV coverage
the mark because companies spend big
money to buy them but don’t have the budget is allotted to these sporting codes.
or knowledge to leverage the investment,
which consequently doesn’t reach its full Big players: who are the major sport sponsors in
potential. They buy a TV package to create
awareness but emotively this does nothing
SA? (BMI-Sport Info)
for the brand,” he says. He adds that industry According to BMI-Sport Info, around 50 per cent of the annual direct sponsor-
gurus recommend operating on a one-to- ship spend is generated by the Telecoms, Banks, SA Breweries’ flagship brand
ratio (adspend to leveraging budget). “So if
you spend R1 million on buying a sponsor- Castle, South African Airways and Sasol. This applies to the three most popular
ship property, you should spend at least R1 sports codes (soccer, cricket and rugby).

Vol 25 No. 5/6 I 2007 I MarketingMix 2 9


SPORTS MEDIA

Which are SA’s favourite sports? million on leveraging it,” he says. If not, it will
in all likelihood not deliver the expected ROI
According to a Markinor TeleBus survey (a total of 1 500 respondents, and this further undermines the sponsorship.
representing the adult population with home telephones): Neil Jankelowitz, MD, MSCSports, believes
that: “The key to a successful sponsorship
36 per cent enjoy watching soccer
strategy is to set clear objectives prior to
19 per cent enjoy watching cricket entering a sponsorship, with definitive mea-
18 per cent enjoy watching rugby surables for post-campaign assessment. It is
also key to try and own the property.” For
4 per cent enjoy watching tennis
Roper one of the major issues affecting sports
3 per cent enjoy watching motorsport is that naming rights are being sold indiscrim-
2 per cent enjoy watching athletics and wrestling respectively inately. While selling the rights to stadium
names is not problematic, the sale of team
1 per cent enjoys watching golf.
naming rights is destroying fan affinity for
sports teams, especially because they change
Soccer is most favoured by blacks, while whites prefer watching rugby. Indians every few years when one sponsor’s contract
is succeeded by the next. “You don’t see this
favour cricket, while the coloured community enjoys all three major sports.
happening overseas. For example, in the UK
The survey found that in general South Africans are optimistic about the coun- the club names are sacred and they don’t
try’s readiness for 2010, with 45 per cent of respondents believing that South allow brands and sponsors to buy the team
naming rights. They understand that fans
Africa is prepared for the World Cup. It’s not surprising that whites are the identify with the club name. Local advertisers
least optimistic racial grouping, with less than a third of the group believing and marketers, as well as sporting teams and
clubs, need to be mindful of their supporters
that SA is ready for the World Cup.
in this regard,” says Roper.
Du Plessis believes that the biggest miscon-
ception about sports media and sponsorship
Soccerex 2007:
is that it’s isolated in the marketing mix, in
Soccerex 2007 (hosted by the Gauteng Province) will take place from 26 to 28 spite of the fact that it can extend the impact
November at the Sandton Convention Centre. This international forum brings of other elements (including advertising, sales
promotion and PR) in an environment where
together the world’s experts and is not to be missed. (This years’ speakers have
consumers are more open and receptive. “In
not yet been confirmed but some of last year’s speakers include Joseph Blatter, South Africa, sponsorship is often cut off
FIFA president, David Gill from Manchester United FC, Andy Knee, Philips head from other communication elements,
decreasing its effectiveness. Internationally,
of sponsorship and Eric Cantona, former Manchester United player.) For more integration is the sponsorship buzz word,” he
information visit www.soccerex.com or email enquiry@soccerex.com. says. He quotes research by Redmandarin (a
UK based sponsorship consultancy), which
found that an overwhelming 83 per cent of
respondents believed that greater levels of
integration would enable sponsorship to
meet their objectives, whereas only 56 per
cent integrated sponsorship into PR, 52 per
cent into advertising, 36 per cent into sales
and 20 per cent into direct marketing.
“Sponsorship without a plan is merely a logo
on the field but through an integrated
through-the-line approach, it has the ability
Picture courtesy of EIMAGE

to bring your brand into people’s lives,” says


du Plessis. Jankelowitz echoes this sentiment,
stating that too many marketers see sports
sponsorship as a ‘fun thing to do’ rather than
an intricate vehicle that can deliver significant
ROI on all fronts.
A further criticism of the industry is that

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


SPORTS MEDIA

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

there is a lack of innovation, the result of a tion of the sponsorship environment. The
handful of key players monopolising the major sporting codes are over-traded, making
industry. “Mentions of sponsorship clutter it difficult for smaller brands to get involved.
have slowly begun to creep into the market “Sponsorship is over-traded in SA and it is dif-
as the industry becomes not only more com- ficult to find a unique property and occupy
mercially sophisticated but also more widely centre stage with it. Brands must try to find
accepted,” says David Sidenberg, head of an exclusive niche, which is aligned to the
BMI’s Sponsorship Strategy & Rights Division. brand, rather than jumping into an over-trad-
Differentiation will become increasingly chal- ed space. Alternatively, they should create a
lenging if this industry continues to grow. new property,” says Smith. The Red Bull
Picture courtesy of EIMAGE

“The customer is becoming aware of and Downhill Extreme is one example of this.
frustrated by commercial clutter, even in “They have created their own sponsorship
sports events. Sponsorships will need to property and no one will take them on in this
become more intelligent and be targeted to space,” says Smith.
specific markets and populations,” says du Smaller niche sports (such as mountain
Plessis. This raises concerns about the satura- biking), which have not been bought out by

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


SPORTS MEDIA

Sadly, not all sporting codes are managed


ethically and professionally and this is another
aspect that marketers must keep in mind
when they consider which sports to sponsor.
Local rugby management, for example, is
frequently in the news, battling issues
around transformation, mismanagement and
corruption, etc.
South Africa’s growing township markets
are also worth considering. “You have the
obvious sports in these areas, such as football
Picture courtesy of EIMAGE

and you have the challenger sports, such as


ballroom dancing, which is (surprisingly)
hugely popular,” says Smith.
Sponsorships have not always been easy to
measure in terms of evaluation, although a
growing industry emphasis on measurability
and feedback is changing this. “Companies
are now more committed than ever to
deep-pocketed sponsors, hold potential value dedicating significant funds to tracking
for smaller brands. “These have particular studies, trend analysis, qualitative research
value for challenger brands that are entering and ROI analysis,” says Sidenberg. He says
the market that need to create awareness that it’s no longer enough to only consider
quickly,” says Smith. New sporting codes exposure when selecting and evaluating
(think basketball and martial arts) are seeing a sponsorships: measuring and quantifying
growth in their local fan-base and they too the amount of media exposure generated
hold potential. However, these sports need is not ROI. He insists that while media
committed sponsors if they are to become tracking will always remain an important
Picture courtesy of EIMAGE

self-sustaining and avoid the yo-yo effect that benchmark for the measurement of
a series of short sponsorships will have. “When marketing spend, association levels and
it comes to sponsorship property, brands must impact are gaining greater relevance.
go into the deal with a view to being involved According to the BMI Top Companies
for three to five years,” says Smith. He adds Survey 2006, 93 per cent of respondents
that short term projects and sponsorship deals claim that a synergy between sponsorship
allow brands to “test the waters.” objectives and overall brand communication
objectives is important. “Integration and
Reputation remain the most important
Which is SA’s favourite rugby team?
challenge for the industry. In fact, this is
According to a recent survey conducted by BMI, the Blue Bulls take this title becoming more and more critical than ever,
with a support base in excess of two million. The Blue Bulls now account given the speed of technology and the rapid
convergence of media platforms,” says
for more than 20 per cent of the total rugby support base and have
Sidenberg. With the rise in rights fees, only
generated more exposure for sponsor Vodacom than any other team (thanks those brands that take a strategic approach to
to their performance in the final stages of the Absa Currie Cup and the sponsorship, fully integrating brand and
communication objectives with sponsorship
Vodacom Super 14).
objectives, will survive.
However BMI reports that rugby still has a long way to go to match the sup- Smith encourages marketers to develop
campaigns that use mechanisms such as SMS,
port of SA’s top soccer clubs. Both Kaizer Chiefs and Orlando Pirates boast fan
which allow for interaction with consumers as
bases that are two or three times larger than that of the Bulls. Furthermore well as for measurable feedback. “Evaluation
these fan bases stretch countrywide, while the support bases for rugby are still is a key element in managing and implement-
ing a successful sports marketing campaign.
concentrated around one or two regions (accounted for by the fact that the
Without it you might as well have purchased
top two soccer teams account for 70 per cent of the total soccer support base, a vehicle without any tyres. As long as the
while the top two rugby teams account for only 40 per cent). evaluation methodology is consistent and in

3 4 MarketingMix I Vol 25 No. 5/6 I 2007


SPORTS MEDIA

Motorsports: what’s SA’s favourite?


According to the recent Do Motorsports rev up Brands global survey conducted
by Synovate in early 2007, Formula One is the most popular sport wordwide
(followed by 60 per cent of motor racing fans). The survey also found that
more than a third of SA motorsport fans stated that they would be influenced

Picture courtesy of EIMAGE


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

line with market standards and norms, it is


Who’s leading the pack?
reliable and efficient,” says Jankelowitz.
An evolving media environment (and the Title: Total circulation (ABC Oct-Dec 2006)
development of new media technology) has Soccer Laduma 303 461
impacted positively on sports sponsorships. “A
Kick Off 55 462
recent study from Starcom Mediavest showed
that advertising awareness has dropped by 17 Sports Illustrated 43 024
per cent in PVR households, whereas sponsor- Tight Lines 36 278
ship awareness has only fallen by four per
cent. The obvious benefit for sponsorship is
Golf Digest 30 545
that it reaches the consumer in the environ- Amakhosi 30 494
ment of their choice,” says du Plessis. This has
Complete Golfer 26 233
made sponsorships the favourite promotion
and marketing choice for many companies, Magnum 20 986
even though they have had to adapt (as have Runners World 18 033
traditional advertising media) to factors such
SA Rugby 10 118
as increased media fragmentation and clutter.
“Sponsors have had to become more discern-
ing by making use of new media and innova-
tive channels to create ‘two-way communica-
tion’ with their customers,” says du Plessis. advertising on www.cricinfo.com (SA’s largest
Sports media are also evolving with the times sporting website). “Cricinfo.com has one of
by developing online platforms – some of the most sought after cricket statistics
which are supplemented with video highlights resources in the world. As such they are regu-
and interviews, podcasts, etc – and larly credited on TV and radio,” explains
mobizines. “The obvious benefit of these Andrew Gillett, publisher, The Wisden
forms of media is that they allow the sports Cricketer and Sports Illustrated SA. He
fan almost unlimited access to sports content anticipates that this platform will draw many
and information worldwide. The use of digital high profile advertisers, given the affluent
platforms also enables sports content to be market that cricinfo.com attracts. “Rates are
immediately available on demand,” says du based on CPM with banners at R100,
Plessis. He insists that this is of particular sig- skyscrapers at R120 and a content box at
nificance amongst the younger generation of R150. However, sponsorships for sections are
sports fans, who are more selective about the available, as are opportunities to include The
marketing messages and media that they Wisden Cricketer magazine in a tailor-made
choose to consume. “Companies that are able package,” says Gillett. He adds that the high
to make use of new media most effectively traffic generated by the Cricket World Cup
stand to benefit because they will be ‘chosen’ (2.3 million page impressions and 111 000
by the consumer,” says du Plessis. unique users in March 2007) has allowed
Touchline recently secured the rights to sell advertisers to enjoy great exposure. g

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


by fulvia becatti DIRECT TO HOME

Taking it home
Direct to Home marketing is defined as they live in – something that can’t be done
the below the line, one-to-one communication with old media. “The ROI is high because of
that happens when an advertiser’s pamphlet/ Direct to Home’s affordability and the reduc-
sample/flyer/brochure reaches the consumer tion in media wastage. In Australia door
at his/her home. drops are the most frequently used medium
Is this just unsolicited junk mail? “It’s preci- and in the UK they are second only to TV,”
sion marketing and it has the ability to reach says Chagonda. He adds that this industry is
the right target market with little or no media worth a cool R300 million locally.
wastage. It means that the right brands are Caroline Nunes, managing member,
delivered into the right hands,” says Melvin Vibrant Direct, maintains that while it’s not
Chagonda, MD, Primedia @ Home. While always easy to measure ROI relative to
marketers may have their doubts, Dalene adspend, a successful Direct to Home
Muller, sales manager, Newspaper Leaflet campaign can have a marked influence on
Distributors (NLD), insists that they fail to see in-store foot traffic and brand awareness –
the medium’s effectiveness. “It is the most and even on store turnover. “Marketers need
effective medium for the lowest cost… and it to realise that for a third of the price of a
is as reputable as any other medium.” normal campaign they can reach a more
Direct to Home is an easily personalised selective market within a specific time period.
medium that has great reach. Distributors are They can also achieve better results,” she says.
able to reach millions of households across Muller argues that Direct to Home is as meas-
South Africa in a matter of hours or days. urable as any other medium and that it will
Marketers are able to target their audiences generate a response if the marketing offer is
by distributing material directly to the regions good enough. “The cost per point of other

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


DIRECT TO HOME

mediums is much higher. With Direct to it is capable of reaching farther and


Home you are able do much more with wider than any other medium,” says
much less. A pamphlet can provide far more Nunes. This wasn’t always so.
relevant information than a 30 second TV According to Chagonda, a few years
spot,” she says. ago the suburbs (upper LSM mar-
From a creative point of view this is a flexible kets) were seeing a decrease in
medium and with the new technological numbers attributed to the number
advances in digital variable printing there are of booms and access restrictions. He
plenty of options and opportunities for says: “This seems to have leveled off
innovation. “If used correctly this service can now as illegal restrictions are being
be a very valuable source of information for removed by councils.” According to
consumers,” says Brian Mdluli, CEO, Direct sources Media24 hopes to address
Marketing Association (DMA). This is a medium the problem of restricted access to
that is not limited to any one geographical complex and cluster developments
area or LSM market. As Muller points out, it’s soon.
the quality of the marketing offer concerned Direct to Home is seeing growth
that creates its relevance. “For example most right across the country. “This is
areas – both higher and lower LSMs – are all mirrored by the growing need and
interested in being kept informed as to what demand for freesheets and by the
is on offer locally,” adds Nunes. number of new freesheets that are being these lower LSM markets.
Perhaps Direct to Home’s most noteworthy launched,” says Muller. There is clearly both a “The daily increase in the number of houses
‘super power’ is its ability to reach into town- need and a desire for the kind of information that are built in the townships means that
ships and rural areas, while also being able to that is delivered by Direct to Home. Muller there is a daily increase in the number of
reach the ‘boomed off’ suburbs of the upper adds that the use of Direct to Home media is homes that are available for distribution,”
LSMs. This medium therefore reaches those a great way to reach the emerging markets says Chagonda. “This trend is expected to
who have TVs, Internet and a PVR, whilst also that are based in the townships, particularly if continue as the new housing department’s
reaching those who only have a radio and a good reading material is involved. Increased low cost initiative gains momentum and as
battery powered hot-plate. “Whether it is used literacy is reflected by the growth in print RDP houses continue to be built.” The
for emerging, established or potential markets, media and Direct to Home is booming in growth in the number of shopping malls and
DIRECT TO HOME

commercial nodes has already had a major impact on


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

What is the DMA doing for Direct


to Home marketing?
“We are in the process of finalising our code of con-
duct and have submitted our codes to the Department
of Trade and Industry for their perusal and approval.
Furthermore we have engaged players in the industry
to come up with suggestions on how Direct to Home
can become a source of information rather than just
being unsolicited mail, which is what consumers
perceive it to be. The DMA has also added a service
that allows consumers to log onto our website and
place their names on our ‘do not contact’ list. This is
aimed at reducing the amount of unsolicited market-
ing material that is sent to the consumer,” says Mdluli.
For more information and to view the DMA’s codes of
conduct, visit the DMA website www.dmasa.org.

On the flip side, questions are being raised about the


future of direct marketing, considering the pending
consumer protection legislation. As Chagonda puts it, this
act will have a significant impact on clients as well as on
Direct to Home agencies. “Whilst a lot of marketers are
concerned about the pending legislation, I believe that we
as marketers have an opportunity to become more consumer-
centric and to listen to what consumers are saying,” says
Mdluli. He believes that the industry will have to revamp
some of its operational models in order to remain relevant
to the consumers they serve, especially because more
and more home owners are becoming frustrated with
information that does not add any value at all. Marketers
need to find innovative ways to speak to target audiences.
“I believe that we need a paradigm shift in terms of using
DIRECT TO HOME

personalised/addressed information to speak They also audit all distribution processes and
to the needs and wants of individuals, rather services and provide marketers with measurable
than just putting out information and hoping results and feedback.
for the best. We must move away from being As Direct to Home moves forward,
peddlers of unsolicited marketing and Chagonda points to the UK market in which
move towards being information brokers,” ‘brands in hands’ seems to be the trend. This
says Mdluli. is a more experiential and activation-based
It seems that industry regulation and form of Direct to Home marketing, which
industry standards are major issues. involves sending out samples and brands to
Chagonda believes that industry regulation the right target groups. “It’s the only medium
needs to be tightened and polished. In his that utilises all of the five human senses,” he
opinion unscrupulous players damage the says. He refers to the following very successful
credibility and perceived effectiveness of the Gillette Sensor campaign in Europe in which
medium. This is a sentiment that is echoed by a leaflet was distributed informing house-
many of the industry’s major players. holds that plastic packets would be distributed
“Everyone needs to operate to the same high over the following few days. People were
standards of distribution. Those of us who asked to place their old shaving machines in
are doing things correctly invest significantly the packets and to leave them outside on a
in the process,” says Muller. “It’s not just specific day. Each bag was swapped for a
about having an oakie in a bakkie delivering new Gillette Sensor shaver and two blades.
pamphlets. We must demonstrate that this is “Over 200 000 bags were exchanged – it was
a reputable medium,” she says. It boils down a huge success. The same programme has
to reputable distributors – who have access now been run in Holland, Spain and
to reliable data that includes target audience Belgium,” says Chagonda.
demographics (population sizes, where they This platform is ideal for our lower LSM
dwell, etc) – advising marketers on where markets where single servings and samples
and how to best distribute their items for could go a long way to boosting brand
maximum impact and minimum wastage. awareness and sales. g
by nici stathacopoulos EXPERT OPINION

With CRM its Showtime!


I recently returned from judging the Dubai that are appropriate to her three data sets.
Lynx Direct and Digital Awards – solely for the Even the lowest priced postcard needs to
North African and Middle East region – and have a clever appearance to engage the con-
was very pleasantly surprised to find that sumer promptly. A marketer should always
there were some wonderful ideas that worked remember that today’s low value customer
really well. We considered Axe deodorant to may turn out to be tomorrow’s high value
be the best of the simple banners in the customer.
online environment. It is well-known that in Let’s move on to the subject of the brief. I
the UAE one cannot depict anything remotely am in the process of training my account
sexual. The agency had created a banner management staff not simply to take an order
using the word MALE and when the con- but to experience the client’s brand as best
sumer moused over the can of Axe in the cor- they can. We now require the team to write
ner, it sprayed out FE and S on either side of creatively about the brief and to impart emo-
the word, in this way creating FEMALES. tional insights rather than pure facts, before it
Although I know that many of my esteemed reaches our creative director.
creative colleagues worldwide would roll their With regard to time: shamefully, we all find
eyes at this, I thought it was ingenious. ourselves without enough time to complete a
A few select agencies (or their London great creative idea (we’ve all ended up with
based colleagues) in the UAE have the only half a mailer or a microsite just to make


accounts for some of the most highly profiled a deadline). Sadly, our teams don’t have the
property developers in the world. In order to luxury of sitting down with paper houses and
secure a Sheikh’s attention – and an appoint- suppliers of innovative elements. They don’t
Think of the delight
ment to one of the multi-million dollar hotel have sufficient time for the meeting and they
developments – the company has the oppor- of the consumers who have even less time available to print on velvet
tunity to present a once off ‘box’ that con- or to manufacture a special box. This said,
tains concise and accurate information that is
receive a letter that is it’s surprising how we can find both the time
presented in the most elaborate fashion. We absolutely personalised – and the suppliers – when we most need to.
judged eight such boxes – the first was After years of being told that I could not pos-
Perspex, the second was wood and the third and that arrives on a sibly laser print on anything heavier than
was an aluminum accordion style box. Each stock which makes them 160gsm bond – and certainly not on anything
was complete with a heavy set, photographic with a finish to it – we have recently found
feel instantly rewarded


depiction of the architecture, style and suppliers who are able to deliver exactly what
imagery that represented each developer’s we need. Think of the delight of the con-
vision. After we had seen the first three we
for their behaviour. sumers who receive a letter that is absolutely
decided that none of these boxes possessed personalised and that arrives on a stock
any of the differentiating factors that we were which makes them feel instantly rewarded
looking for. In my opinion, while it is all very for their behaviour.
well throwing a great deal of money at a Now lets get back to the entertainment
pack, the result sometimes still lacks innova- experience. Imagine being the producers of
tion and creativity. the theatrical production, the Lion King. Every
Showtime is not only about the pretty pic- moment – from cast to consumer; from lay-
tures that are used in a mailing or on a out to advert – has to be a show. Now imag-
microsite. It’s about creatively utilising your ine being the marketing director of a great
resources to ensure that consumers are truly brand and proudly sitting back and signing
delighted when they engage with your brand. ommended to one of my clients that she off on a direct marketing piece that is in itself
They should do a dance around your pack, should rather segment her database and mail a show. g
which should be personalised and surprisingly her high value clients than try to reach the
fresh in its approach. They should hunger for entire database with a letter and an envelope. Nici Stathacopoulos
every word in your letter and act instantly. (This is not rocket science – it’s just that I pre-
How do we get to this point? We need to sented the idea to her in a creative way). She CEO, proximity#ttp
(011) 447 7093
be given the time, money and license to do it. agreed wholeheartedly and we are now pro-
nici@proximityttp.co.za
Let’s begin with the budget. I recently rec- ducing three tiers of communication pieces

4 0 MarketingMix I Vol 25 No. 5/6 I 2007


7 DAY [B]ITCH

Margot Bertelsmann, editor, Zoo


Weekly/Weekliks

20 /04/07
Ah, Fridays! Here at ZOO HQ Fridays are post-deadline days. Everyone
trundles in a bit later than usual and a bit more hung over than usual,
before settling down to a calm day of magazine-making. Yesterday Steve
Tanchel photographed Survivor-hottie Jacinda Louw for a ZOO cover.
(M-Net has just announced that a new season of Survivor is starting
soon, so it’s a perfect reason to remind our readers of Jacinda). Today art
director Mike McLeod and I have the pleasure of looking at the pictures
from the shoot and selecting the final versions to be used in the
magazine. Next out is the upcoming cover – we’re featuring the
101 Hottest Models 2007. Who to put on it? Decisions… decisions... Ah
– would you look at the time? 3.30pm already. Just in time to catch the 24/04/07
Australia/New Zealand match on telly. It’s a hard job but somebody has Deadline day number 2:
to do it. Now we’re off to the local drinking hole Su Da Da (we’ve Somehow between the madness I manage a moment to observe that our
renamed it ZOO Da Da in honour of the amount of time we spend there) semi-fictional ZOO character, The Zoode, is gaining popularity and has a
to bid a sad farewell to Ivor Price, assistant editor of ZOO Weekliks. He’s constant online presence at www.zoo.co.za. I spend 20 idle minutes on
returning to the Cape to become a publisher – lucky man! the site (watching hilarious Zoode videos and reading his blog), giggle
and make everyone else in the office watch it too. Enough. On a weekly
21/04/07 magazine there is no time to write more than this on deadline day.
Urgh!
25/04/07
22/04/07 Somehow we get up again on the next day, say goodbye to ZOO issue
Spent some time doing paperwork. It’s performance appraisal time at 27 (which we’ve nurtured over the past seven days) – and start filling
ZOO! It would be criminal to bore you with the details. those 200 empty pages all over again.
10am: Today starts with a lengthy production meeting and a lot of
23/04/07 brainstorming. We settle on a cover girl and a feature idea. Since the
7.50am: Deadline day! Today and tomorrow we go to print, a day Cricket World Cup semis are on there is much Aussie-bashing in the air
earlier than usual because… – and Australians always like to brag about how dangerous and
10.21am: … of the public holiday this Friday. We’re… aah… poisonous their wildlife is! Rubbish! In ZOO issue 28 we take a ZOO-
11.47am: … also welcoming a new assistant editor on ZOO Weekliks, style look at the killer critters that populate Africa and why they’re
Johan Vos, at the staff meeting today. much harder than anything the Aussies could come up with.
12.32pm: I’m still furiously signing off pages before rushing to an 3pm: All work stops as the beer arrives at ZOO HQ and we all settle
interview with KykNet’s Gons. Actually, it’s a double whammy of TV down to watch the South Africa-Australia CWC semi-final.
today. I’m also chatting to the guys from Glitterati tonight about ZOO’s 3.20pm: Ah. Yes. We may need to rethink that feature.
World Bikini Model International 2007 competition. Entries close on
11 May so we are busy publicising the event to encourage models to 26/04/07
enter. This means that I have to be on TV with two previous years’ Shoot day at ZOO! Yay! We’re shooting four lovely models who appear
winners – gorgeous bikini models both. Great. I, sadly, am style- in the Axe Mostesses advertising campaign – you know, those gorgeous,
deficient. This is less of a problem than it would be if I edited a fantasy air hostesses who cater to the every need of the lucky, lucky
women’s mag, of course. I must remember this next time someone passengers. You’ve probably seen the ad on TV. If not, go and look for
asks me how it is that I, a woman, edit a men’s mag. Answer: “I’m too it on YouTube. My favourite co-Bob Dylan fan, Nick Boulton, is the
much of a naff dresser. I am only allowed in men’s mags!” day’s snapper and much of it is spent inside an airplane at Lanseria
I stopped smoking four kilograms – and four months – ago by using airport. Our aim: to show our loyal readers the Axe Mostesses looking
the Allan Carr easy way to stop smoking method. (Sure, it’s propaganda hotter than you’ve ever seen them before. That way, when they see the
but it seems to have worked.) So ZOO style editor Chrisna Raft will Mostesses at the FHM 100 Sexiest Women in the World 2007 party,
have to work her magic on me. I don’t want to look too shabby next they will be intrigued – and buy a ZOO the next day!
to the 21-year-olds! Luckily she’s on the ball and has already selected I go home, delighted to be working with the coolest team this side of that
some outfits I might wear. Off to the dressing room! new planet they just found. I have the best job in the world. And I know it. g

Vol 25 No. 5/6 I 2007 I MarketingMix 4 1


by sean mccoy EXPERT OPINION

The seven year itch: Brands and relationships


You’ve been together for a couple of cycle vary enormously. It’s all about resonating
years when you begin to sense that the thrill with the market. All great brands evolve.
is waning. The spark seems to have gone and Some undergo radical change while others
complacency is creeping in. Things seem to be tweak quietly and more often. Coca-Cola, for
the same all the time. Maybe you need some- example, updates its brand every 12-18
thing different or perhaps you just want months. No one really notices any obvious
something different. Despite the predictability changes and the updates are sufficiently fre-
of it all, the routine is comfortable in a benign quent and subtle for the brand never to be
sort of way and the reasons for making a perceived as dated or radically altered.
change aren’t quite compelling enough. While other brands such as Johnny Walker
Or are they? Could this be the infamous ‘itch’? have opted for a periodic update of the
I’m speaking about the branding cycle here brand’s graphic language and iconography,
and its obvious similarities to the cycles of a they have also managed to reinvent them-
human relationship. Sadly there simply isn’t a selves by changing the brand activity.
formula for guaranteed success. Both require How did Hush Puppies resurrect themselves
sustained hard work, loads of intuition, atten- from the brink of extinction to become contem-
tion to detail coupled with big picture think- porary style icons? How did our grandfathers’


ing, constant shifts in approach to meet tipples of choice become the life and soul of the
changing needs and demands at certain party? Jack Daniels and Jaegermeister are now
times… and luck. the hottest drinks in the coolest places. It wasn’t
Branding is about
The branding itch is a reality. Whether it so much about what these brands looked like,
comes after seven years or 17 years there is relationships. If there’s their success lay in what they did. The brand
no empirical evidence to suggest a definite activation was spot-on.
timeframe. In fact in my experience, given our
an itch… scratch it. Like How do we know when a brand needs an
rapidly changing environment and the pace of relationships, some update? Does it manifest as an urge or a need
technology and globalisation, it is increasingly to change? I guess that if we had all the
evident that most brands need to revisit their brands simply need answers, all brands would be great – and
expression to the market every three to five golden wedding anniversaries would be run-of-
work more often than


years at the very least. the-mill. Brands can defy the law of gravity. The
Thomas Friedman in his book The World is others. solution lies in a combination of art and science.
Flat highlights several drivers of change (most It’s important to have a clearly defined
notably that of technology) and spells out the brand platform in order to have a reference
dramatic impact they have had on business point for ongoing health checks. This provides
and social change. Professors Jonas a foundation for directing all brand activity.
Riddersdale and Kjell Nordstrom of the Brand custodians constantly need to evaluate
Stockholm School of Economics describe the brand performance intuitively and by using
advent of ‘serducts’ and ‘provices’ in their measurable means such as research and
book titled Funky Business. They dramatise brand valuations (and obviously performance).
the blurring of the boundaries between what Successful brands are guided by visionary
constitutes a product and what constitutes a leaders who understand the market. They
service – and how we as consumers and are able to anticipate changes in it and
brand builders distinguish between them. instinctively manage the ebb and flow of their
For example in the South African banking by bringing in a fresher, simpler identity to brand’s connection to it.
arena, new entrants into the fray, changing complement the bank’s vision. Others such as Branding is about relationships. If there’s
market dynamics and the emergence of a Nedbank and Rand Merchant Bank have an itch… scratch it. Like relationships,
growing middle class have presented very recently updated their corporate images, sim- some brands simply need work more often
interesting challenges for the established plified their brand architecture or redefined than others. g
players. These challenges have accelerated their brand positioning in order to reconnect
their need to evolve. with their target markets. Go Banking (Pick ‘n Sean McCoy
The majority of banks have recently rede- Pay and Nedbank’s low-cost financial services
fined and clarified their offerings to meet the arm) has just launched its own refreshed managing director, HKLM
(011) 461 6600
needs of a changing market. For example, brand to broaden its appeal.
smcoy@hklmgroup.com
FNB modernised the brand’s visual language The pace and process of change in a brand

4 2 MarketingMix I Vol 25 No. 5/6 I 2007


by fulvia becatti CONSENT MARKETING

On 27 February 2007, Marketing Mix in conjunction with the THE ACTS:


Direct Marketing Association (DMA) and Kodak, hosted the Consent The National Credit Act regulations will come into effect on 1 June
Marketing Workshop and brought together thought leaders in the 2007. It is known that the Act will promote a more accessible
legal and direct marketing industry. and responsible credit market and that it will address imbalances
The workshop was held to address the pending data protection and over-indebtedness, while regulating credit bureau
legislation which will affect marketing (with particular reference to and providers.
direct) and change the way that marketers target and communicate The Act defines personal information as that which belongs to an
with customers. The legislation, which includes the National Credit individual or that which is not generally known to others. Furthermore
Act, the Consumer Protection Bill and the Protection of Personal it states that when entering into consumer credit agreements, the
Information Bill, will require that consumers consent to the collection consumer must be given the option to opt out of telemarketing,
and use of their personal information. While it will offer the customer e-mail or SMS campaigns.
protection from unsolicited emails, phone calls and SMSes, in so
doing it will create huge barriers for the direct marketer as well as for The Consumer Protection Bill was drafted in March 2006 and is
the many businesses that have relied on this form of communication expected to become law before the end of this year. According to
with their customers. Brendan Hughes, an IT legal consultant at Michalsons ICT Attorneys,
The National Credit Act, the Consumer Protection Bill and the South African Courts have traditionally regarded confidential
Protection of Personal Information Bill fall under Section 14 of the information as information which relates to a truly personal realm or
Constitution. They stipulate that the individual has the right to privacy, information in which a person could be said to have a proprietary
which includes the right to refuse to accept (or to pre-emptively block) interest. However, the new Bill defines confidential information very
any electronic communication, especially when this communication is broadly and gives all personal data confidential status. This includes
for the purpose of marketing goods and services. names and contact information.

4 4 MarketingMix I Vol 25 No. 5/6 I 2007


CONSENT MARKETING

Getting to grips with the legal terminology


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

Vol 25 No. 5/6 I 2007 I MarketingMix 4 5


RESEARCH THOUGHT LEADERS

Experiential Marketing:
A new word for some ways of doing things
by Jan Hofmeyr

Why has above-the-line’s share of response model. The second is to look at which are beyond the marketer’s control.
marketing budgets fallen steadily in the past what are known as ‘split cable TV’ tests of iii). What is experiential marketing and
decade or so and how – if at all – is this advertising effectiveness. In the first method why does it work…
connected to a predominance of what I call we take all the inputs that we can find that While there are multiple definitions of experi-
‘mercenary managers’? Let’s try to answer may play a role in a brand’s sales and we use ential marketing, the heart of all experiential
these questions and in so doing say some- statistical techniques to quantify the impact marketing is the attempt to harness the
thing sensible about the importance of expe- of each input. In the second method we split power of the direct brand experience by
riential marketing. a scanner panel into two, pipe advertising to exposing people to the brand in ways which
i). The emergence of the mercenary manager one half and not the other – and then look are under the marketer’s control. Sampling is
In years gone by one of the most difficult but at what each half buys over the days that one of its simplest forms and ‘event market-
successful ways in which you could become follow. Either way, in the end conventional ing’ represents a more sophisticated option.
wealthy was to start and own a successful advertising accounts for somewhere between Brand events give marketers a chance to
business. In recent years however, this has seven per cent and 15 per cent of a brand’s manage exposure in a way which reinforces
been replaced by an important and easier sales. Up to 80 per cent is accounted for by the intended brand imagery. Brand immersion
alternative. Get yourself hired to run a really other factors, the largest portion of which – which is what a properly constructed
big company; appoint a compensation com- (40 per cent-50 per cent) is what the model brand event is – has far greater power than
mittee composed of people like yourself and makers call ‘brand equity.’ conventional communications when it comes
sit back and enjoy the bonuses that they vote to shaping brand beliefs.
to add to your package! Over time the scope and sophistication of
This is the modern ‘mercenary manager.’ experiential marketing has increased significantly.
This person is not a business owner but a The viral campaign that drew people into the
manager. world of The Blair Witch Project is a great
Competition has forced businesses to example. When properly managed, experiential
become more efficient than they used to be. marketing delivers multiple benefits:
In a world in which the winner is the one • It pervades the experience of the actual brand
who can drive out costs while improving rev- consumption with a range of complementary
enue, the mercenary manager (usually an experiences which touch all the senses
accountant) is king. Employees and share- • It creates ‘buzz’ because the people who
holders have lost their power. Capital efficien- participate willingly tell others about the
cy rules. What does all this have to do with experience they have had
marketing, you may ask? • It creates editorial – provided that it gener-
The problem is that marketers are strug- This being so, we need to ask ourselves ates news interest.
gling to prove that their use of capital is effi- what the most effective way is of building a Experiential marketing is therefore the pri-
cient – and market researchers are battling to strong historical heritage and reputation? The mary means by which marketers can leverage
provide measuring instruments that are able answer does not lie in advertising. Direct the two dominant ways in which people
to substantiate this. What can we conclude, brand experience is by far the most important form brand beliefs, ie direct brand experience
to the extent that we can conclude anything? source of what people believe about brands. and credible word-of-mouth. Given this
ii). There is a problem with advertising… Word-of-mouth from credible sources (like phenomenon we can expect spending to
There is really no problem with advertising. industry experts or trusted friends) comes continue to be diverted from classical
Like all tools, advertising has a role to play in second and marketing communication advertising to new marketing methods like
the creation of brand value. The question (including advertising) limps in third… experiential marketing. g
however, is how much brand value does Quite simply, most of what impacts on
Jan Hofmeyr (Ph.D.)
advertising create? how people feel about a brand either has to
Marketing researchers provide two meth- do with the direct experience of what the international director of Innovation for
ods for answering this question. The first is product folks have created – or with factors Synovate’s Brand and Communications
to create what is known as a marketing that are communicated about the brand Practice

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People who ignite brands:


understanding wildfire marketing
by Neil Higgs
The new marketing – using influence parents – they are defined by their experience that the brand is potentially on its way down.
Marketers have one thing in common – of complex networks, from their sophisticated A solution that catches the imagination of
they want their brands to grow as fast as mastery of modern technology to their the Hi Fire segments is the only way to save
possible. Recently there has been an explo- heightened levels of awareness through this brand.
sion of new and innovative media types to global media. In this connected age, the In an ad evaluation people’s attitude to
exploit the new connectivity that exists small Internet website is as powerful as the the brand needs to be measured pre and
between people because of SMS, e-mail and massive global media company. Entire post exposure to the ad:
the Internet. This phenomenon is expanding nations are swayed by small groups and new This shows a highly significant improve-
beyond the personal electronic medium and ideas spread around the world like wildfire.” ment in disposition to the brand post expo-
a number of new terms have been coined: – Studio Riley sure to the ad amongst those at the top end
network marketing, viral marketing, brand of the Wildfire Spectrum – the chances of the
ambassadors – all of which amount to Implications drawn from local brand being positively ‘sold’ by influential
various forms of ‘influence marketing.’ To research for brands and ads people has risen considerably. It is not
date this arena has grown in a rather Seventeen per cent of the population (24 per important what they feel about the actual ad:
haphazard way. cent in metropolitan areas) can be classified all that really matters is how it affects the
‘Wildfire marketing’ brings these elements as ‘Igniters’ – people who can have a radical range of their feelings towards the brand.
effect (either positive or The more igniters there are for brands
negative) on a brand. that are visibly consumed, the better. This is
This comes from the a sign of future brand growth. For brands
recent Wildfire that are less visible, having more Igniters is
Spectrum™ study (3 500 good if the brand has ‘buzz.’ Similarly
adults across South having more people in the Damp Squib or
Africa) which explores Burnt Out categories is a sign of a brand’s
what this means for likely demise. Fortunately those we classify as
brands and advertising. ‘Burnt out’ have small networks and are not
The study, conducted in very visible. Damp Squibs can be bad news as
conjunction with the they may still have fairly active networks and
Unilever Institute for as they generally have a subduing and
Strategic Marketing at negative influence in them.
UCT, has led to an under-
together by embracing a wider concept that standing of the importance of knowing how An insight from the world of
acknowledges that we are social beings who people at the top end of the Wildfire neuroscience
influence each other in a myriad of ways Spectrum (Igniters and Smoulderers, together People at different points along the Wildfire
through the networks that we all have and termed ‘Hi Fire’ people) feel about a brand or Spectrum process marketing messages differ-
by being the particular types of people that an ad when compared with those lower ently. Hi Fire people are more efficiently
we are. It goes beyond the traditional word- down the spectrum (Damp squibs and Burnt- approached by an ad style that allows for
of-mouth concept by specifically examining outs, together termed ‘Lo Fire’ people). quick absorption and that simply reminds
our levels of self-esteem, our roles in these The following example represents the find- them of their brand – iconographic, visceral,
networks and the recognition and respect ings of a Wildfire brand profiling exercise in emotive and instinctive. They make buying
that we receive in them. It considers the which peoples’ warmth or coldness (feelings decisions more instinctively and unconscious-
non-verbal cues that we transmit by looking of distance or proximity) towards a brand ly. Lo Fire people need more rational reassur-
at our overall state of mind and our optimism were measured across the brand’s Wildfire ance and an ad style that reduces the agony
about the future. Spectrum, using a special ten-point of those decisions that have a greater cogni-
“The way we think about brands is old. colour/warmth/proximity scale: tive component. g
Modern people have evolved beyond the For this brand 33 per cent happen to be
passive consumerism of the mass media age Igniters; 63 per cent are Hi Fire and the rest
Neil Higgs
to the active consumerism of the global infor- are Lo Fire. The fact that the Igniters and Hi
mation age. Young consumers are not Fire people are much more negative about director: Innovation and Development,
TNS Research Surveys
defined by the mass media marketing of their the brand than the Lo Fire people, means

4 8 MarketingMix I Vol 25 No. 5/6 I 2007


RESEARCH THOUGHT LEADERS

The Changing Face o f


Marketing and Communication
by Hendrik van Vuuren

Life in marketing used to be much simpler consumer who wants personalised brand
and more straightforward than it is today. In solutions as well as functional and emotional
the past, marketers segmented consumers brand superiority. This opens the door for
based on their demographic information. personal and participatory marketing activities
Most consumers had traditional roles and that have the ability to offer integrated
responsibilities and the buying power and customer experiences across all points of
decision making processes were clear for contact. In recent years the evolution of
most categories. However, today’s consumer consumer marketing customisation has been
comes in multiple guises and is much coupled with the ever-increasing pace of
more complex. consumer technology development. The basic
Marketers have been forced to respond to mass media channels of the early 50s have
the growing sophistication of consumers and developed into highly individualised and
marketing paradigms that were developed in customised channels such as third screen
the 1950s when products were sold by technology (cellular, PSP, iPod and other
focusing on their quality and functional bene- personalised communication channels).
fits and through mass production. By the 70s The proliferation of media has accelerated
this process had evolved beyond pushing at an exponential rate over the past 20 years.
brands based on their functional and emo- When The Boston News-Letter published the
tional platforms – and by the late 90s it had first newspaper advertisement in America in
reached a stage where marketing had 1704, they could hardly have foreseen that
become contingent on building strong con- 300 years later there would be more than 40
sumer relationships. different channels for marketers to use for
The modern day marketer is faced with a the communication of their messages to

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


RESEARCH THOUGHT LEADERS

consumers. Along with the increase in dramatic in the higher income segments of the a significant increase in the number of titles
channels, the number of commercial messages market, where satellite television penetration is available (from 63 in 1998 to 106 at the end
that consumers are exposed to on an average at its highest. Coupled with the increased of 2006 – AMPS 2006 RA). The strength of
day have increased from around 130 in 1975 controls that ICASA have placed on television magazines remains their ability to convey
to more than 1 300. advertising availability, this has lead to an esca- highly targeted messages in an intimate and
In order to appreciate how the media land- lation of spot prices across all channels as well trustworthy manner.
scape is changing, it is important to understand as high levels of television media inflation. In-Store signage is able to fulfill the infor-
consumer interaction and the role of each Magazines and newspapers tend to offer mational role when the shopper is actively
communication channel within the greater greater readership engagement because of seeking something. It has become one of the
media context and marketing environment. the way that readers actively consume them. primary focus areas for communication. At a
Certain media serve as background, eg They also have an entertainment and diver- global level the activation marketing spend of
outdoor, sponsorship and radio. Radio is fre- sion component, which tends to soften their many clients surpasses their demand building
quently ambient sound in the environment, focus. Internationally, magazine and newspa- advertising spend.
present at times when other tasks are primary per consumption is stable, a trend that is According to Veronis Suhler, the Internet is


– reading, working and of course driving.
According to Veronis Suhler (a specialist inter-
national media merchant bank) radio has We need to be constantly aware of how to
shown steady increases since 1998 and is the
most widely consumed medium internation- reach consumers with marketing messages –
ally. This trend is mirrored in the South
and of how this information needs to change


African market, with radio listenership (past 7
days) sitting at 92.7% (AMPS 2006 RA). based on its interaction with different channels
Although the big commercial stations are
showing a consistent decline, there is a
strong growth in community station listener- reflected in South African newspaper reader- the fastest growing communication medium
ship. Radio still remains the key communica- ship data. There are marginal declines evident in the world. In the United States it has
tion channel for much of the rural South in the South African market across almost all become the greatest contributor to advertis-
African population. LSMs for magazines, although there has been ing and brand awareness and online advertis-
For the most part TV has a relatively low ing spend is estimated to reach (US$)1.5 bil-
focus and viewers tend to sit back and have it lion by 2010 (eMarketer report). Internet pen-
‘come at them.’ This is beginning to change, etration is growing rapidly in South Africa,
particularly with the advent of interactive TV although it is still relatively small at 6.4%
and the use of PVR’s, remotes and other con- (AMPS 2006 RA). It is limited to the higher
trol mechanisms. Web streaming, branded income segments of the market, where it is
content and placements within TV shows as high as 65% (AMPS 2006 RA). While still a
tend to follow the same pattern. niche market, it offers the opportunity to
Internationally there are significant declines in communicate specifically targeted messages
terrestrial television viewing. This growth of to certain segments of the population.
cable/satellite viewing – which exceeded In conclusion, it is clear that the world of
terrestrial penetration in 2003 – has resulted traditional marketing and communication is
in significant increases. Global data clearly changing rapidly. South Africa is not isolated
shows that in 1984 an average 12 spots were from these changes. We need to be constant-
required to achieve 100 GRP’s/AR’s. Currently ly aware of how to reach consumers with
the number of spots required to achieve the marketing messages – and of how this infor-
same reach is closer to 67. In South Africa, mation needs to change based on its interac-
research conducted by Charles Foster (man- tion with different channels. Furthermore,
aging director, Millward Brown South Africa) due to the growing aversion to advertising,
has highlighted that the number of new (non the increasing importance of channels such
retail) TV commercials launched per year has as word of mouth and consumer blogs is
increased five fold, from around 500 in 1984 opening up an entirely new world of experi-
to more than 2 500 in 2006. However, the ential marketing possibilities for the successful
average peak noting and impact of these marketers of the future. g
commercials have decreased substantially. In
addition, the amount of exposure required to Hendrik van Vuuren
reach peak noting has increased significantly.
research director: Millward Brown SA
This effect has been considerably more

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


RESEARCH THOUGHT LEADERS

Rear view mirrows and front windscreens


(or why loyalty is a great thing to measure)
by Heidi Brauer

Driving a car requires multiple simultaneous things in a whole and connected fashion, having another loyalty card in my wallet (a la
activities that are non-negotiable. Whilst even if they are not aware of it. I judge the airlines, financial services companies, the
shifting gears, changing lanes, choosing a CD till staff at Woolies by using one set of expec- place where I buy my toiletries and the
to listen to, separating fighting children and tations; I judge the till staff at Shoprite by sushi restaurant chain). Although loyalty
taking calls on the cellphone, there are really using another. These expectations consist of programmes may be a precursor to the thing
two key things that need to be done con- things that are related to brand, quality, called loyalty, they don’t take it’s place.
stantly and at the same time as the other value, price and image and I ‘smush’ them all Real loyalty requires me to connect with
stuff. We have to look through the front together (un- or sub-consciously) as I rate two things as a customer – the attitudinal
windscreen and regularly look into the rear them. When I evaluate the experience at the and the behavioural (the future behavioural
view mirror. In order to obtain a complete set till (satisfaction if you like) I do it in the con- stuff). So if I feel committed (attitudinal
of integrated data that enables us to drive text of what I expect from the brand experi- stuff) – and I intend to continue this relation-
the vehicle effectively and safely and to ence. My evaluation is influenced by the ship, at least in the short term – I am a truly
navigate the roads and hazards, we need to advertising, the price I pay, the brand promise loyal customer.
know both where we’re going and where and the overall quality that I expect in terms Actually, I’m not too fussed about what
we’ve been. of each of these things. So the fact that these we call it – my concern is that we stay true to
It’s no different in business. Navigating the are all actually ‘rear view measures’ aside, it’s the science. We need the predictor or future
strategic and operational elements of view of how a customer intends to
the business environment without a act, to add to the historical view of
holistic and integrated set of meas- his or her experiences. We then
ures is impossible. So why try to do have true loyalty or deep engage-
it? Some businesses have no meas- ment – call it what you will. The
ures at all and many are only working experiential or satisfaction stuff, the
with fragmented and retrospective brand stuff, the pricing stuff and so
information. The trick is always to on, are all influencers of or precur-
think FTCPOV (from the customer’s sors to the loyalty construct.
point of view). Customers experience What are the consequences or
an organisation in a holistic and results of having truly loyal cus-
integrated fashion – and this is exact- tomers? (Here’s why this is crucial
ly how we should measure our rela- for marketers.) The consequences
tionships with them. really best not to create artificial scenarios for are the essential business enhancing behav-
While there are companies that believe a customer to assess in a vacuum – this is not iours that we all want from our customers –
deeply in only using gut feel, in organisa- real life. they’ll stay longer, buy more, recommend us
tions where research is used – whether it Assuming that we measure these things in (the latest global hot thing to track and
happens to be DIY or whether it takes place a whole and connected way, all that we end manage), resist offers from competitors
with a research partner – a whole menu of up with is a view of how it was in the past. and limit their search for alternatives. The
things may be measured. So how does one Did the customers stay? Did they leave? science has proved that a set of good
describe a ‘rear-view’ measure or a ‘front Did they like the experience? Did they like experiences alone do not predict these future
windscreen’ measure? Most often, someone the price? Did they like the advertising? You desirable behaviours.
will measure something to do with satisfac- get my drift. Now try and drive your car Yes, we do have to look at the
tion, the strategy person will measure pricing, while only looking into the rear view mirror. churn/retention, sales and figures, as well as
the brand person will measure brand It’s impossible. measure brand and experience and such –
health/strength/affinity and perhaps advertis- So now let’s get to the ‘front-windscreen’ and ask the customers about their intended
ing recall/affinity/effectiveness, the customer measures. This is where loyalty comes into behaviour – all at the same time. We then
service person will measure complaints, the play. For a start we need to get into the same have a complete set of integrated data, from
sales person will track retention/churn and headspace about what loyalty is – and it’s both the front and rear views, with which to
sales figures and so it goes. These are ‘rear easier first to deal with what it isn’t. The sci- navigate the business. It is doable. You do it
view measures’ which are good things to ence teaches that it isn’t about ‘buy a dog’ every day in your car! g
keep a track of – just not in the way that it’s (blind following and acceptance); it isn’t
typically done. about staying forever (‘Gee, he’s loyal, he’s Heidi Brauer
The fact is that customers experience been here since 1963’) and it isn’t about marketing director, Markinor

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


by yoav tchelet EXPERT OPINION

Online – what is that...?


I get the same argument day in and day your choice. Creative campaigns can also be
out from agencies and clients: ‘Online doesn’t targeted according to time of day, operating
work’ or ‘online is boring’ or another system etc. Channels such as blogs, podcasts,
favourite of mine, ‘I have a website; what RSS etc, are often used to backup online mar-
more is there?’ keting activities, depending on the media plan
I have a short answer for all you sceptics and strategy.
and doubters out there: “Online works and is A question also arises regarding Flash ver-
crucial for marketing success.” The web has sus gif/jpeg etc. There is no reason not to use
come a long way since the early beginnings of Flash for any creative execution on the web. If
Internet marketing and the use of banner you work with a company that has a decent
advertisements and archaic search marketing. ad-serving and online marketing platform,
There are a number of options available, you can set up a campaign to show Flash by
including rich media and advergames, Pay Per default. However in the event that the user is
Click (PPC), Search Engine Optimisation (SEO) not able to use Flash, a gif/jpeg or other for-
and many more. I always try to emphasise mat can automatically be shown.
that Internet marketing is the sum of the Other exciting online marketing channels
correct integration of any offline marketing such as Advergames (essentially an interactive
activities and/or strategies plus the planning game integrated with an advertiser’s branding


and strategic execution of all available online and message) and interactive video are price-
marketing channels. less vehicles for brand equity. With an
Make sure that you
So you’ve just spent thousands on a new Advergame your target market interacts with
website – what now? Perhaps you’re still are not wasting your your brand. This is something that you can
spending your current marketing budget on measure. It involves a recurring motion of
TV, radio, print etc? Without combining
media – something we playing and interacting – great for your return
online with your offline marketing mix, you still see with South on investment.
will always be one step behind. Internet This brings us to the matter of measurability.
marketing is the most measurable of all African publishers who Creative that uses a technology such as Flash
marketing mediums. It allows for targeting allows for tracking beyond impressions and
use pop-ups. Please do
accuracy that is way ahead of any offline click-throughs. You can track interactions in
medium and it can be as engaging or as not squander your the creative with razor sharp precision. What
interactive as you wish. It all depends on what other medium affords you the opportunity to
you would like to achieve. You also need to
advertisers time and do this in real-time? There are no rules or
money – pop-ups are


plan in order for this to happen. predefined formats for online media plans. I
The online media plan is the foundation on like to think of all online media plans as a
which any planning and creative conceptuali- tantamount to spam. finely tuned set of mini-plans that utilise
sation must be built and any campaign comprehensive research, technology and
requires that you consider the target market online marketing experience. Make sure that
and the message and results you’re looking to you are not wasting your media – something
attain. Certain channels such as SEO take we still see with South African publishers who
longer to implement and have to have a long- use pop-ups. Please do not squander your
term focus in order to achieve results. advertisers’ time and money – pop-ups are
Rich media campaigns, where technology tantamount to spam.
such as Flash, video and other interactive ele- There are many opportunities for marketing
ments are used, are generally used for shorter in the online world. Provided that you under-
campaigns that require more of an impact. stand what you want to achieve, plan correctly
There will be a use for banner ads for some and take the time to explore the existing
time to come, as long as they are part of a opportunities, you will see results. g
well-planned and integrated online marketing
campaign in which a combination of channels which to spread campaigns. Even if this were Yoav@ilogic.co.za
such as search marketing, blogs and rich true, by using Geo-Targeting technology you
media are used. are able to ensure that your advertisements director, iLogic
Tel: +2711832 2800
There is a false notion that there are not are shown only to users from South Africa –
yoav@ilogic.co.za
enough publishers in South Africa across or any other country, region or even city of

5 4 MarketingMix I Vol 25 No. 5/6 I 2007


MarketingMix

Masterclass ‘07
C RM 5th June 08h00 – 12h30
Southern Sun, Grayston Johannesburg

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

Programme:

Topic Speaker Title

CRM Trends Worldwide Nici Stathacopoulos CEO, Proximity#ttp

Technology, Enabling CRM Solutions Yaron Assabi CEO, Digital Solutions Group

Changing Customer Behaviour Noleen Bruton Marketing Director,


Tsogo Sun Gaming

How Custom Publishing Builds Loyalty Bridget McCarney CEO, New Media Publishing

Integrating Data Effectively Liz Venter Marketing Manager,


Ford Motor Company

Use of Effective Contact Centres Craig Ireland CEO, Velocity

B2B Direct Marketing Thierry Boulanger Marketing Manager, HP SA

CRM Research Heidi Bauer Director, Markinor

It will be a busy morning. You will learn a lot and also will get good answers to your questions. The charge is
R1 500 plus VAT and 3 or more delegates reduces the charge to R1 250 plus VAT per delegate.

To register e-mail robyna@systems.co.za

or call Robyn on 011 234 7008

See you there,

Terry Murphy
Publisher
Marketing Mix
by frank joffe LAW MIX

Registering designs
Clarity on certain critical areas of the Assessment of novelty:
Designs Act has finally been achieved, thanks The court confirmed that in line with the
to a recent – as yet unreported – judgment of established principles for patenting inventions,
the Supreme Court of Appeal. it is not permissible to mosaic different pieces
In addition to establishing important of the prior art in attacking the novelty of a
design-related principles, the judgment in registered design. Generally speaking, the
Clipsal Australia (Pty) Limited v Trust Electrical prior art consists of all matter that is in the
Wholesalers [2007] SCA 24 (RSA) is the first public domain at the date of application for
Appeal Court judgement to deal with regis- the relevant design.
tered designs under the present Act. Furthermore, the assessment of novelty
The issues in question include the following: must be assessed against the background of
relevant prior art, ie the definitive statement
Sets of articles: and drawings have to be assessed in the light
The Act permits the filing of a design applica- of the state of the art to determine the
tion for a ‘set of articles,’ defined as a number degree of novelty achieved. This is so because
of articles of the same general character, where the measure of the novelty of a design
which are ordinarily on sale together or is small, the ambit of the monopoly is small.
intended to be used together and to all of
which substantially the same design is Originality:
applied. The court held that the object of the The court found that the present Act differs
provision is to enable an applicant to obtain structurally from its antecedents to the extent


registration for the design of more than one that it requires that a design has to be both
article for the price of one. new and original. While the Act requires that
The Act stipulates that what constitutes a novelty be tested against the prior art, there is
set will be determined by the Registrar of
The registration of a no measure against which originality has to
Designs. The court held that if the Registrar design applied to a set be tested. The court held that the meaning of
had registered articles as a set when in truth the term ‘original’ when applied to aesthetic
they did not form a set, it was at best a mat- of articles provides a designs, is the same as or akin to the mean-
ter for review and could not be raised as a ing of the term in copyright law, ie that the
cost-effective way of
defence for infringement or serve as a ground design should not have been copied from
for revocation. The judgment further estab- registering a number of another source.
lishes that the registration of a set of articles
as such cannot be used in interpreting the
related designs and the Infringement:
scope of registration. Each member of a set issue of whether such The court held that a test for infringement was
has its own individuality and must be assessed not a trademark infringement test and that the
on its own. articles do in fact com- issue was not whether or not there was
In short, the registration of a design prise a set is one for the confusion or deception. Thus it would be


applied to a set of articles provides a cost- wrong to introduce concepts developed in a
effective way of registering a number of relat- Registrar to decide. trademark context, such as imperfect recollection.
ed designs and the issue of whether such arti- Rather, a designs test is closer to the patent
cles do in fact comprise a set is one for the infringement test and relies on the good sense
Registrar to decide. In the absence of an of the tribunal to decide if the substance of the
application for a review of the Registrar’s design with the object of claiming novelty or invention or design has been pirated. g
decision, the registration of a set of articles originality of a particular feature.
may not be used as a ground for the invalidity This is achieved via the filing of a definitive
Frank Joffe
or revocation of a registered design. statement as part of the application. Should
such a statement not be filed, the whole of managing director, Intellectual Property
Whole or part: the design will be considered, not only for the Bowman Gilfillan
The judgment confirms that an applicant for a purposes of novelty and originality but also (011) 669 9000
design may elect to isolate an aspect of his for infringement. f.joffe@bowman.co.za

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

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