Marketing Mix Magazine Jan Feb 08

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

MarketingMix CONTENTS
I 0 2 I Book Review I 3 0 I Packaging

Marketing Mix reviews Never mind Find out how the latest consumer
the sizzle... where’s the sausage: trends are influencing packaging
branding based on substance not
spin, written by David J. Taylor, and
finds out about branding I 3 3 I Expert Opinion:
Jean-Claude Latter
I 0 3 I Ed’s note Jean-Claude explains why it’s
important to keep track of your
I 0 4 I Direct marketing 24 incentive programme strategy
news
Marketing Mix checks in with the I 3 4 I Expert Opinion:
direct marketing industry
Nicci Columbine
Nicci explores the link between good
I 0 6 I News branding and a good call centre
All the latest gossip in the wonderful
world of the marketing mix
I 3 6 I Mobile marketing
I 1 1 I Expert Opinion: 04 Marketing Mix talks about the next
marketing wave, and explains how
Richard Duncan 30 brands can make a success of it
Richard wonders whether the
pitching process shouldn’t be more
like speed dating I 4 1 I Expert Opinion:
Marc Spriestersbach
I 1 2 I Brand Anatomy Marc ponders new age bell ringing
Levi Strauss tells us why it’s the
denim du jour
I 4 2 I Community media
10 Marketing Mix reports on the major
I 1 4 I Expert Opinion:
42 trends and issues impacting on the
Helen McIntee community media industry
Helen has had enough with the
gratuitous use of vulgarity in today’s
advertising and media I 4 8 I Expert Opinion:
Elan Lohmann
I 1 5 I 7 Day [B]itch Elan explores marketing online
Nicholas Haralambous gives us a
glimpse into the life of a blogging
business strategist I 5 0 I Expert Opinion:
Nici Stathacopoulos
55
I 1 6 I Gay Marketing Nici gives us the alternative ABCs
Marketing Mix finds out why
speaking to the gay market should
be on your list of priorities 12 I 5 2 I Word of Mouth
marketing report back
I 2 4 I Eastern Cape Marketing Mix delivers a report back
Intelligence on the 2007 Word of Mouth
The Eastern Cape is thriving, and it Marketing workshop
holds great potential for brands.
Marketing Mix finds out why
I 5 4 I Marketing at
I 2 8 I Expert Opinion: 56 retail
Graeme Taylor explains the
Michelle Venter-Davies importance of understanding the
Michele Venter-Davies explains why shopper’s mission
marketers need to start marketing
Marketing
16
I 5 6 I Law Mix:
I 2 9 I Expert Opinion: Kathleen Rice
Don Searll Kathleen explores the issues around
Don tells us why 3D HD is the way of undersea cable investment in South
the future Africa
Vol 26 No. 1/2 I 2008 I MarketingMix 1

by fulvia becatti BOOK REVIEW
Never mind the sizzle...

where’s the sausage?
Has David J Taylor lost the plot? Is this a
teen novel, or is it a branding story?
A bit of both, actually. Taylor introduces us to
Bob Jones, a former sales employee, and now a
member of the brand management team at
Simpton’s Sausages. This is Bob’s journal, which
he keeps while he tries to make sense of branding
and marketing. On his first day, Bob realises that
he is out of his league; the other members of
the branding team are equipped with all
manner of branding and marketing jargon, and
they have a mission: to rebrand Simpton’s and
to ‘leverage’ the brand by launching a new
range of sausage pizzas. But Bob senses that
something is amiss: his experience in the sales
department has taught him that this brand is
on the rocks, and he wonders if such a radical
approach is really necessary.
The book follows Bob over the next
12 months, as he battles ‘brand immersion
workshops’, marketing agencies and company
politics, all the while trying to get branding
right. Over the course of the year, he develops a
mission, and values and vision for the Simpton’s
brand that truly take the sausages back to their
original recipe (and therefore, back to a solid
core set of values and brand promises). With a
tight budget and a small team of colleagues,
Bob has to take on consumer testing, manufacture
control, quality assessment, market research and
financial planning as well as the pitch to a
management team that is hell bent on the
sausage pizzas and a marketing strategy that is
aiming at the wrong market, in the wrong way.
All the while, Bob must also juggle his family
and personal relationships.
What’s most compelling about this book is lateral brand extensions (brand stretching) really intriguing way – readers of Taylor’s blog,
that the protagonist could be me or you, or the going to uplift a struggling brand, or would it wheresthesausage.com, contributed to the
guy sitting next to you; it is the story of the do better going back to basics and improving writing process, adding their experiences to the
average modern marketer, trying to make the core product? And then, is the core product mix. Taylor has also made sure to include plenty
sense of this ‘branding’ thing. The issues and worthy of consumer attention and loyalty? Is of juicy case studies (also available on the blog),
challenges that Bob encounters are the same as the packaging right? Is traditional consumer so this is more than just a cute story – it is a
those that face marketers everywhere. And the research misguided and ineffective? Are product valuable source book.
solutions he finds could be the solution you’ve innovations really innovative, or are they simply
been looking for. going to add to the clutter and noise that Never mind the sizzle...
where’s the sausage?
This is easy reading (I managed to get consumers are ignoring?
through the book in just two poolside hours Each chapter in this book ends with By David J. Taylor
over the holidays). What’s more, it really a few valuable lessons or tips, summed up Capstone Publishing Ltd
challenges the existing world of branding. Are nicely by Bob. The book is written in an R153
2 MarketingMix I Vol 26 No. 1/2 I 2008

ED’S NOTE
Organic for real?

Dear Marketing Mix reader, it is with excitement that I
take over as editor of your favourite magazine. I hope we
will become firm friends in our search for marketing
insights. It is with gusto that I present you with the first
issue of the year – enjoy!
What does 2008 hold in store for us? Marketing Mix
has a great line-up of industry-relevant events and work-
shops planned as well as special editions that focus on
topics close to your hearts (research, magazines and
PROPRIETOR AND PUBLISHER:
newspapers, and direct marketing). We will also have the
Systems Publishers (Pty) Ltd.
pleasure of announcing the launch of the Marketing Mix
Tel: (011) 234 7008
website, www.marketingmix.co.za, soon (we are in testing
phase as I write this). The site will feature a comprehensive archive covering all issues of the
North Block, Bradenham Hall, mag published in the past 20 years or so, as well as news and plenty of expert input. We are
Mellis Road, Rivonia toying with the idea of putting up a ‘Guess who’ page, with old pics we found of industry
personalities (there are some truly Dallas ‘80s hairstyles).
PUBLISHER: Terry Murphy Meanwhile, how many of you have gone organic? You will have noticed that stores are
punting their organic produce and brands, and you can certainly expect more of this. And I suppose
MANAGING EDITOR: it is a good thing. The question is, what makes a product organic. I mean, organic potatoes,
Michelle Sturman I get (they come out of the ground, and have never been sprayed or fertilised with anything that
e-mail: michelles@systems.co.za
is not natural or biodegradable). But organic dairy cheese… or organic water, I don’t get. Yes,
I have seen organic water being advertised locally; when I asked how this water came to be
organic, I was told that it is because the water has not been changed in any way; they have not
EDITOR: Fulvia Becatti
removed anything from the water, or added any minerals or chemicals. So is that it then – don’t
e-mail: fulviab@systems.co.za
put anything in (or take anything out) of your natural produce, and it’s organic?
I fear that consumers will be taken for quite a ride by brands that simply slap the word ‘organic’
SUB-EDITOR: Jenny Bastomsky onto their labelling and justify it with airy-fairy mumbo-jumbo. There should really be a national
e-mail: jennybee@telkomsa.net standard, a clear and well-defined set of criteria, so consumers know exactly where they stand.
Certification seems to be something that only a handful of brands are taking seriously and, as
ADVERTISING MANAGER: yet, there does not seem to be a local governing body with the sole purpose of cracking down
Robyn Andrews on charlatans (and I suspect that quite a number of brands are taking advantage of this).
e-mail: robyna@systems.co.za I wonder if the pending food labelling legislation will address this. Certainly, in the packaging
industry, there is a very strong trend toward labelling that is more responsible and accurate (see
PRODUCTION: the packaging feature on page 30 for more info).
Spencer van Graan And, while I am not saying that consumers have no responsibility in this regard (because they
should be researching this before they climb onto the fad-wagon), I do believe that brands have
spencerg@systems.co.za
an enormous obligation to do right first. Especially because young consumers are activists – any
sign of foul play, and they will burn your brand to a crisp.
SUBSCRIPTION ENQUIRIES:
One thing’s for sure, I am not going to buy another ‘organic’ soybean until I have researched
Daisy Mulenga
the truth out of it.
e-mail: 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.
Database:
List Perfect
Oops! In Vol 25, issue 11/12, we referred to Lucille Van Niekerk as the editor of Beeld, when she
3 938 Jul-Dec 2007 was in fact the general manager (she is now the CEO of RCP Media – congrats).

News
Join the DMA…

Direct marketing news To join, visit www.facilities.coza/dma
DMA fees are paid annually on the anniversary date of joining the organisation and
The DMA has launched multiplatform functionality for its Opt are based on the size of your company. Payment can be made via cheque or EFT.
Out Register: SMS, Internet and call centre. An invoice will be e-mailed as soon as you have completed the online membership.
Consumers can SMS the word DMA, followed by their ID Before you go to the link above in order to register to become a member, you will
number to 34385, or they can call 0861 DMA DMA (362 need to have the following information available:
362), or register online at www.dmasa.org. Your company details
Thus far, 35 000 consumers have registered – the register Your company coordinator’s details ie
is updated monthly. the person who will be responsible for keeping your company details up to
date on a quarterly basis
Your company decision maker’s details ie the person who will authorise
The ninth founder member to join your membership of the DMA and the essential payment of membership fees
the ranks of the DMA is Nedbank. The details of staff members who you believe should receive information
According to Vaughan Petersen, updates from the DMA on an ongoing basis. If you do not have all the details
Senior Business Manager, Nedbank Personal Loans Division, with you, your company coordinator can go back into the system at any time
it is the efficiency of the DMA in representing all stakeholders to update these details
which motivated the banking group to sign up. “Our Contact details:
interest in the DMA is to support the fantastic work it is (011) 577 2780
doing in developing the industry as a whole, especially in an dma@facilities.co.za
environment in which compliance is constantly changing the www.dmasa.org
landscape,” he says.
Channel: ONE GOSPEL

Launch Date: 4 November 2007
Platform: DStv, channel 331
Ownership: Urban Brew studios
Programme highlights: Shows In Concert
With and Tonight are flagship programmes,
and are drawing in the largest audiences.
Target market: The Christian family.
Programming caters to adults, as well
as youth.
Ad rates: According to Abey Sibiya, head
Channel: M-Net Stars of the channel, Urban
Launch Date: 1 November 2007 Brew is still working
Platform: DStv, channel 154 on a rate card;
Ownership: M-Net however, the channel
Programme Highlights: Films range from is working towards a
classics, such as Pretty Woman and Splash, Channel: The Style Network programme sponsor-
to kids’ films (101 Dalmatians, Lassie), as Launch Date: 5 November 2007 ship model. Sibiya
well as such greats as Father of the Bride, Platform: DStv, channel 183 believes that the rates
Good Morning Vietnam, and Pearl Harbor. Ownership: Comcast International Media will be very competitive.
Target market: According to Tracey Network (USA) Details: Gospel music
Hawkridge-Visser, manager: general Programme highlights: Style Star, Fashion fans and fundis will
entertainment & specialist channels, this Police, Fashion Trance and How do I look? get a kick out of this
channel is aimed at any and every DStv Target market: females, 18-49 24-hour channel,
viewer who loves movies. Ad rates: This channel is not yet commercially which features not only gospel worship
Advertising rates: R2 500 to R50 000. viable for local advertisers, but according sessions and shows, but artist interviews,
Details: This channel is perfect for movie to OATS, audience performance will be music videos and game shows as well as
lovers, with a premiere a day. The channel is evaluated in the coming months. famous up-and-coming gospel artists.
focused on family entertainment, and so Details: This channel is the fashion slave’s According to Sibiya, the channel’s fan base
boasts a line-up of feel-good movies. “Both ultimate fix. The focus is on beauty, leisure, is growing fast, with interest from countries
audiences and revenues on the channel are home decor, weddings, and the world of such as Nigeria and Kenya. The channel is
looking good and it’s an exciting new fashion (and celebs, of course). This channel currently building relations with Zambia and
addition to our channel portfolio,” says holds great appeal for the young female Sudan to further grow its audiences (and
sales director, Chris Hitchings. audience. its resources).

NEWS
Google Zeitgeist
Every year Google provides the ‘zeitgeist’ of the most searched for topics, people
and words through its search engine. It provides a great insight into what’s hot
and what’s not.
Fastest rising (global) 2. Lost 3. who is lookup

1. iPhone 3. House 4. who is jesus
2. Badoo (online community) 4. 24 5. who is it
3. Facebook 5. Bones 6. who is buckethead
4. Dailymotion (online 6. Jericho 7. who is calling
entertainment video 7. Reba 8. who is keppler
site) 8. Scrubs 9. who is this
5. Webkinz (stuffed animals that also exist 9. Greek 10. who is satan
in a virtual world) 10. Caveman
6. youtube © 2007 DreamWorks Pictures (Paramount) What is...
7. ebuddy (instant messaging) Movies 1. what is love
8. Second Life 1. Transformers 2. what is autism
9. hi5 (online community site) 2. 300 3. what is rss
10. Club Penguin (virtual playground for kids) 3. The Simpsons 4. what is lupus
Movie 5. what is sap
Fastest falling (global) 4. Epic Movie 6. what is bluetooth
1. World Cup* (obviously fell as the 2006 5. Bee Movie 7. what is emo
World Cup ended) 6. Harry Potter 8. what is java
2. Mozart 7. Hairspray 9. what is hpv
3. FIFA 8. Cars 10. what is gout
4. Rebelde* (Mexican soap opera) 9. Iron man
5. Kazaa (peer-to-peer downloading site) 10. Amazing Grace South Africa
6. Xanga (online community) Top Gaining Queries: December 2007
7. Webdetente (online magazine for guys) Ringtones 1. Satanism
8. Sudoku 1. mosquito ringtone 2. Fly fishing
9. Shakira 2. 24 ringtone
10. mp3 3. the office ringtone
*featured in the 2006 fastest-rising list 4. silent ringtone
5. crazy frog ringtone
Google news most 6. high pitch ringtone
popular searches 7. final fantasy ringtone
(global) 8. ultrasonic ringtone
1. American Idol 9. transformers ringtone 3. Thank you cards
2. youtube 10. spider pig ringtone 4. Juliette Lewis
3. Britney Spears 5. Eid (Muslim holiday
4. 2007 cricket world cup Diets to mark the end of
5. Chris Benoit (former 1. Weight Watchers Ramadan)
wrestler who killed 2. Jenny Craig 6. Mouse
his family and then 3. Volumetrics 7. Ronnie Coleman (Pro
himself) 4. Slim fast bodybuilder)
6. iPhone 5. Atkins diet 8. Mount Amanzi (holi-
7. Anna Nicole Smith 6. Beck diet day resort)
8. Paris Hilton 7. Ornish diet 9. Silverstar casino
9. Iran 8. Zone diet 10. Wedding invites
10. Vanessa Hudgens 9. Best life diet 11. Landscapes
(High School 10. Mediterranean diet 12. Sportsmans Warehouse (sport shops)
Musical star) 13. Formula 1 hotel
Who is... 14. Shockwave (free online game site)
TV Shows 1. who is god 15. Costume hire
1. Heroes 2. who is who

NEWS
The ACA and the Apex Awards Urbandictionary.com

Marketing Mix caught up with Odette Roper, the new CEO of the ACA, to find out
more about her plans for the ACA and the Apex Awards.
Marketing Mix: What are your plans for the ACA?

Odette Roper: As the new CEO of the ACA, I am going to try to build a bridge
between the advertiser and the marketer, using the Apex Awards as a tool. These
awards will change perceptions of the advertising industry, and will tell people that
there is real value in it, and it does generate sales and impact bottom line. It is our
mission to get marketers to sit in on workshops and learn about advertising
performance excellence. Historically, the workshops were conducted to help the
agencies understand how to compile their Apex entries. In future we are going to
extend the invitation to both marketers and advertisers in order to showcase the
effectiveness of advertising. It will present an opportunity for the agencies to work
with their clients to prepare their Apex entries.
The Apex Awards recognise campaigns that deliver results, are measurable and
attributable. We’re telling marketers that ads do work.
But overall, I believe that the ACA needs to be more relevant. Not only to
members, but also to its clients; they must get more value out of the ACA. We
want to help members to find ways to contribute to their companies. To this end,
we will be building a web portal, where members will have access to information
and documents that will help them with: for example, employment contracts or
guidelines for best practice. I think this will really help the new, small businesses. California car pool: when each
The website will also allow us to communicate with our members and the industry. member of a group uses their own car to
Aside from this, we will also be focusing on engendering the right skills in AAA go to the same destination. Typically,
students, because the industry needs leaders. Usually, it is at the graduation describing the case where the group is
ceremony that students are told what the industry needs from them, and this is too together at the start or close enough to
late. We need to do this from the beginning of their studies. The ACA intends share rides.
working more closely with the school and to achieve this, we set up an Ops Cuddlingus: the act of cuddling,
Committee portfolio to deal with issues pertaining to education in our industry. The spooning or snuggling. When two or
portfolio is chaired by one of the ACA board directors; various other members of more people lay down in an intertwined
the ACA board. Industry players are also roped in to assist the portfolio chair. With position.
involvement by various industry representatives, opportunities for guest lecturing, Spendy: expensive.
for example, are increased. By inviting guest lecturers from the industry – captains Reality distortion field: (noun) the
of industry – to address the students and share on-the-job issues with them, the expression used to describe the persuasive
students will gain real exposure from day one. ability of managers like Steve Jobs (the
Furthermore, we will build a closer relationship between the school and the term originated at Apple Computers in
industry and in turn, create access to the industry for graduate students. the 1980s, to describe his particular
MM: How will you be furthering the Apex Awards and what’s the value for charisma). Those close to these managers
marketers? become passionately committed to possibly
OR: Our focus is on educating the advertising industry on the Apex Awards. Case insane projects without regard for the
studies need to be presented in such a way that results and data are clear. Other practicality of their implementation or
awards recognise creativity in advertising or individuals who excel in marketing. The competitive forces in the market place.
Apex Awards recognise performance excellence, so the agency that has an Apex Blacking out: to turn off any device
Award on its mantelpiece can be proud of itself. that people can reach you with
This year, we are accepting digital entries, which are sometimes easier to put (cellphone, two-way, computer, home
together. We understand that putting the entry together is hard work, and so we phone, Morse code, etc) in order to avoid
ran workshops for advertising clients and agencies to create a better understanding a certain person.
not only the value of the Apex Awards, but also of what the entry process requires Nekkid: nekkid is not simply being
of them and their agencies. without clothing – it means you are
Furthermore, we will be working hard to compile the Apex book as it serves as a getting nekkid for mischievous purposes.
valuable reference, for students, marketers and clients. The Apex Case Study Book Naked is natural; nekkid is naughty.
will be published 12 to 18 months after the gala event, and will be available for Disneyfication: the act of taming the
purchase directly from the ACA. world to make it all safe, clean and
completely similar to a theme park. To
The Apex gala event will be held on 10 April 2008. Contact the ACA on (011) remove the sharp edges and darkness
781 2772 or visit www.acasa.co.za for more info. that are life.

NEWS
New TV shows
M-Net has a host of new shows for 2008 some of which are destined to become huge hits. Marketing Mix gives its views on which shows will
be hits based on US and UK ratings as well as critics’ reviews and gut instinct. For the local shows, Marketing Mix expects them to be winners.
Already showing Back to You women who decide to set up a murder

Damages Frasier fans will be pleased that Kelsey investigation team.
Glenn Close heads this legal Grammer is back on screen, this time as a TV
thriller alongside Ted Danson. news presenter. Reaper
The first few episodes have aired and it’s explosive. This comedy drama
Coming up aired to rave reviews
The Coconuts Ella Blue from the US critics and should be a hit here
Local comedy based on a white family that Local drama set in the ‘60s about a woman’s with teens and twenty somethings. The basic
are trapped in black bodies after angering journey through the process of race classifica- premise is about a guy (Brett) who, on his 21st
ancestors. The maid becomes a black woman tion in terms of the Group Areas Act. birthday, discovers his parents sold his soul to
trapped in a white woman’s body. the devil. Brett is tasked by Satan to hunt
Dirty Sexy Money down, and return evildoers let loose on earth.
Feast of the Uninvited From the guys who brought
Local drama set during the Anglo-Boer war us Lost, Six Feet Under and Chuck
focusing on how it affected everyday people, Brother & Sisters, Dirty Sexy This is one for the teens. Chuck
fundamentally changing them in ways they Money features a star-studded cast, including is a mid-twentysomething who
could never imagine. Donald Sutherland, Alec Baldwin and Peter downloads government secrets
Krause. This show can’t fail to draw in the into his brain. Clever plots and humour make
Are you Smarter than a Fifth Grader crowds and is being touted as the 21st century this one a winner.
Based on the US version of satirical version of Dallas and Dynasty.
the hugely popular game Life
show, South Africans now Unhitched Another cop show, this time featuring
have the chance to win a The Farrelly brothers turn a cop that returns to work after he has
million. Definitely worth watching for a) to their cameras to TV with this just been released from prison for a
test your own knowledge or lack thereof and comedy about a group of crime he didn’t commit.
b) to watch the contestants display their lack newly single friends in their thirties.
of knowledge in front of the nation. Army Wives
The Big Bang Theory Popular in the US, this one-hour drama is
Private Practice In the top 20 for CBS Primetime, Desperate Housewives on an army base.
A spin off from Grey’s this comedy follows the lives of
Anatomy, this show, featuring two brilliant but nerdy friends whose lives Gossip Girl
Dr Montgomery, should get turned upside down when a beautiful Aimed at a young audience, Gossip Girl
prove hugely popular. girl moves in next door to them. revolves around a blog that imparts all
the latest scandal about a group of
Pushing Daisies The Sarah Connor Chronicles spoilt Manhattan teens.
An off-beat comedy about a This one-hour drama follows on
guy who can briefly raise the from Terminator 2: Judgement Day Tell Me You Love Me
dead simply by touching and Sarah Connor and her son John are still Based on three couples and their shared sex
them. Highly recommended. fighting for their lives and the human race. therapist, this drama offers an unconventional
Lauded by fans and critics alike, this should and frank look at modern relationships.
Samantha Who? be a sure-fire hit locally.
Doing well in the US, this half-hour Mad Men
comedy features Christina Applegate as the Journeyman Set in the swinging ‘60s, Mad
unlikable Samantha Newly. An accident leaves Meet Dan Vasser, a man whose Men takes a look at the advertising
her in an eight-day coma where upon waking life is perfect until he inexplicably sector in a world that is rapidly
she tries to redeem herself. starts to journey back in time, changing. Surprise sleeper hit of this year perhaps.
causing all kinds of trouble in the present.
Bionic Woman Some will love it, others will hate it. Californication
The usual comic comic-book Starring David Duchovny,
hero stuff will probably make Women’s Murder Club Californication is an adult drama
this a hit. Jamie Sommers has In the top 10 of ABC about a guy who struggles to
a car accident that leaves her almost dead, Primetime’s viewing, Women’s raise his teenage daughter whilst trying
until a top secret technology not only saves Murder Club is based on James Patterson’s to revive his career and struggling with
her life, but gives her special powers. bestselling novels about four successful various addictions.

NEWS
Will consumer Simplify to succeed

confidence affect The Constitution started it, and the National Credit Act has taken it a step further – plain
language, and the emphasis on communicating in a way that the ordinary citizen can
you? understand. The Consumer Protection Bill, due to be enacted in 2009, will take it even further,
ensuring that consumers aren’t duped or misled by contracts and marketing messages that are
The results of the latest MasterCard filled with jargon, small print and hidden clauses.
Worldwide Index of Consumer Confidence There are three core areas that are affected by new legislation. The first is content. What goes
have been released and, (not surprisingl), into contracts, advertising and marketing communications must be comprehensive, fair and
South Africans are not as positive as they honest. For example, fees and insurance terms must be accurately explained upfront. Bait
were a year ago. advertising is no longer permitted.
The study also found that 66 per cent of Secondly, wording must be accurate. Certain phrases are not permitted according to new
banked adults expressed an interest in legislation, so marketers should brush up before they sign off their communications (the National
travelling abroad (up from 30 per cent in Credit Regulator’s website, www.ncr.org, has info about this). For example, ‘blacklisted consumers
2005). The number one reason for travelling welcome’ is now illegal. Likewise, ‘no credit checks’.
abroad? Shopping for anything from apparel Thirdly, the format of an ad or a contract must adhere to specifications for font size,
to luxury items and electronics. Visiting family or equal prominence of terms and conditions, for example. Small print is no longer
and friends followed as well as sightseeing permitted. Cooling-off periods must be explained in writing as well as explained verbally to
and business. the consumer.
The study was conducted in October 2007, Requirements and conditions must be made obvious, and must be written for the average
and asked consumers to make predictions consumer, with minimum experience. “Treat all customers as if they are first time borrowers, or
about the next six months. This study was first-time buyers of your services and products,” says Candice Burt, a plain language lawyer and
carried out prior to Eskom’s debacle, and the partner in Simplified. Even DVD rental stores will have to ensure that their contracts speak to a
announcements about interest and prime consumer who has never loaned a DVD before.
lending rates that are shooting up. So while the “Many of the agencies we have approached are struggling with this, because their business is
results do not take these issues directly into built on creative concepts. But we believe that this is simply a challenge to them to create
account, they do indicate future trends and creative advertising that is also fair,” says Frances Gordon, partner, Simplified. She adds that
predictions, and reveal consumer sentiment. agencies might do well to revise their creative processes to include legal review of all copy and
According to Eddie Grobler, general design before the concept has been developed (instead of afterwards, as so many agencies are
manager, Africa, MasterCard WorldWide, US doing now).
consumer spend is at its lowest in 15 months; Look out for the Protection of Personal Information bill, which will further enforce these
world GDP growth rates are in a decline, and regulations, in the next few months. Gordon and Burt warn that while regulations usually can’t
are only expected to recover around 2010. act backwards, there is talk that the Consumer Protection Bill may be able to. So any brands that
“Interestingly, developed countries are seeing are trying to sneak one last rogue campaign in before this becomes law could find themselves
a slowdown, while developing countries are dealing with a nasty law suit in a few months’ time.
still going strong,” he says. SA’s overall index For more information visit www.simplified.co.za.
score has dropped from 86.5 per cent this
time last year, to 83.7 per cent.
The indexes show that consumer
confidence has declined in regard to
employment (job availability and job security),
regular income and the economy in general.
As interest rates and inflation climb, consumers
feel the pinch. Second or moonlighting jobs
are lost as employers cut costs. Marketers can
expect a drop in household spending too.
And while the Quality of Life Index remained
stable at 80 per cent, though there is no
doubt that power cuts, potholes and interest
rates have impacted negatively on this since
the October study was carried out. “The NCA
has not had much impact – perhaps the
consumer feels more protected. Or perhaps it
is still filtering through,” says Mike Schussler,
Chief Economist at T-Sec.
Confidence in the stock market remained
stable, but it will be interesting to see how
this is affected in the next few months.
NEWS
Just add
music
Which music is currently
enjoying its 15 minutes of
fame or would make a brilliant
soundbed for an ad? The list
below includes a wide range
of local and international
music styles and, most
importantly, it highlights
which songs are hip and
happening within different
target markets right now.
The following list is courtesy
of Roy Harman, who manages
South African artists and works
on various music entertainment
productions and events.
For more information on
how to match your brand
with an appropriate song
e-mail royharman@gmail.com
or call 083 407 4928
Act and song Why it’s hot Genre and emotion evoked
Joe Cocker A classic crooner with striking Rock, blues – powerful and ambitious
With a Little Help from my Friends vocals. He will be touring in March
Good Charlotte It’s fun and young. The well-known Punk rock – upbeat, elation and energetic
Broken Hearts Parade band tours SA in March
Johnny Clegg The local legend is touring again and World – honour, positive and patriotic
Cruel, Crazy, Beautiful World receiving favourable media attention
Loyiso Beautiful, melodic and romantic ballad; R&B – romantic, warm and loving
Dali Wami perfect for Valentine’s season
Gang Of Instrumentals A crossover hit that is very popular Afro pop – uplifting and happy
Cry For Me
Cassandra Wilson Powerful chorus that is captivating Jazz – lustful, yearning and vulnerable
Sunshine
DJ Nu-Mark Funky instrumental take of the John Hip-hop – kindness and peaceful
Imagine Lennon classic that will be instantly
recognised
Shawn Lee Quirky and funny instrumental with Chill – fun and spirited
Bollywood Indian charm
Easy Star All-Stars Well-known and groovy Pink Floyd Reggae – relaxed and comfortable
Money cover done reggae style
Puff Johnson Huge hit in urban market with strong R&B – smooth, sensual and slow
Forever More romantic and loving associations

EXPERT OPINION by richard duncan
The pitching game

Millions of rands are wasted each year in anticipate and meet the client’s expectations.
the pitching process. While a pitch will test an agency it is perhaps
New accounts are critical to fuel an agency’s not the most realistic setting in which to put
growth, replace clients that have left and budgets an agency to the test. More often than not, the
that have been lost, and fertile ground for them agency doesn’t have full access to the facts and
to flex their strategic and creative muscles. will rarely be able to engage the client in the
Certainly, pitching for accounts is a necessary same way as if they were already awarded
part of the advertising game and not that the business. This leaves the agency open to
dissimilar to the tender process in other sectors, misunderstandings and misinterpretations and
but agencies seem to occupy an unenviable can allow one agency to win on the basis of
position that they struggle to retreat from. They one clever idea.
certainly haven’t helped their cause by allowing Rather than the straight pitch, I am a firm
themselves to get caught up in the excitement believer that a series of chemistry sessions and
and frenzy of pitches. They have also had to meetings combined with a thorough review of
contend with increasing corporate governance agencies’ credentials and consultation with
bureaucracy that may have the clients’ best their existing or past clients can reveal far more
interests at heart, but certainly fails to take than the false setting of a pitch.
into account the uniqueness of the advertising Besides the obvious resource wastage that
creation process. pitches entail both in terms of hard costs and
From my own experience as both a marketer people, pitches can prove disruptive to an
selecting agencies and an agency executive agency’s normal operating practices and are not
trying to be selected by prospective clients, I the most responsible way of procuring business.
“
have seen first hand the disruptive influence of Ask yourself this: Who ultimately pays for the
Procurement Departments who increasingly costs incurred in agencies’ new business pitches?
wield enormous power within corporates across I think pitches in their current form are
Any marketer worth
the globe. Sadly, it usually manifests in a outdated. Certainly pitches serve to galvanise their salt should be able
destructive manner in the pursuit of saving a and motivate staff, but at the same time they
few pennies. put huge pressure on staff and rarely generate to identify the key
As you have probably surmised, I am not work that sees the light of day.
characteristics, strengths
convinced that marketers have got the pitching In short, pitches have become an accepted
process right, nor do I feel that a pitch is the way of doing business because agencies have and weaknesses of an
best way to go each and every time. I certainly failed to stand their ground and instead have
am not impressed when I hear of pitch lists of chased the money, often at enormous costs.
agency without having
six, eight or even a dozen contenders. I think For clients, I suspect that pitches have to resort to a full-scale
”
three is more than sufficient. Any more suggests become a crutch of sorts for them to lean on.
that the client doesn’t know what they are They may be a way of levelling the playing field pitch.
looking for. Either that or they’re lazy. On top of and enabling apples to be compared with
that, I personally think twice before agreeing to apples, but I personally think that they are a cop
pitch on an account if the client is not prepared out as there are better ways to draw comparisons.
to offer some sort of pitch fee, however small, Any marketer worth their salt should be able to
to help towards costs. Having witnessed some identify the key characteristics, strengths and
pitches turn out to be no more than fishing weaknesses of an agency without having to
expeditions for ideas or aimed at pressurising resort to a full-scale pitch.
the incumbent to drop their prices, pitches Sadly, many executives rely on the protection
without pitch fees seem like commercial of the decision by a committee and try to
Russian roulette. rationalise the selection process of what is often
For me, one of the key measures of selecting an emotional purchase decision, like buying a
an agency is the chemistry between them and house. Perhaps there is something to be learnt
the client, both in terms of company culture by comparing pitches with dating. Which route
and shared values as well as on an individual would work best I wonder; the five-minute Richard Duncan
level. The pitching process doesn’t always allow speed date, the long drawn out engagement, Sydney, Australia
for the true chemistry to reveal itself as everyone the pre-arranged marriage or the good +61 41 154 9791
is ‘acting’ on their best behaviour and trying to old-fashioned dinner date? lduncan@bigpond.net.au

BRAND ANATOMY
The denim standard

Levi’s jeans were born at the time of the 1873
California Gold Rush – an apt origin for what is
arguably the world’s ‘gold standard’ denim
brand. The Levi’s jeans brand arrived in South
Africa formally in the mid-1990s, when the
country’s social and political environments were
more in line with the company’s values and
ethics (this was a company that had opened
racially integrated factories in the American
South before it was mandated by government).
But as Debbie Gebhardt, marketing director
of Levi Strauss South Africa says: “The Levi’s
brand was far from unknown in South Africa
when the company made the decision to enter
this market. In fact, the brand was highly
sought after, with people bringing Levi’s jeans
home for friends and family whenever they
travelled abroad. This ‘limited availability’ added
to the inspirational appeal and desirability of
the brand, and together with its renowned
high quality, ensured that its entry was met
with enthusiasm.”
Levi’s jeans have been worn by everyone from
rock rebels and music icons to screen stars and
even presidents. Today, the brand competes Target market
with designer denim labels, in an ever more “Levi’s’ target market is free-thinking 16 to 24-year-
crowded apparel market. “Consumers are faced olds, split 60/40 male/female. They are confident,
with so many choices and for those that can highly social individuals who value originality and
afford it, niche brands offer the opportunity to look for quality and authenticity in products. They
buy into an elitist lifestyle which caters to a need love brands and buy into those that allow them to
to stand out from the crowd. To say, however, express their own sense of style while delivering
that this is a movement by the mass market is comfort and credibility,” says Debbie Gebhardt,
not the case in the South African context. The marketing director of Levi Strauss South Africa.
Levi’s brand is by far the market leader in the “The Levi’s brand has always had strong associa-
jeans category and designer brands remain for tions with timelessly youth-relevant platforms, such as
those that can afford their super premium music. By staying in touch with what’s happening at
prices,” says Gebhardt. Levi’s has its own super grass roots level with the youth in SA through
premium range – the Levi’s Blue and Levi’s consumer dialogue, trend watching & occasional
Copper ranges. Also, a limited edition collectors’ focus groups, the Levi’s brand manages to maintain its relevance in an increasingly competitive
range of T-shirts (the ‘1 of 100’ range), created environment. What’s important is that the brand stays true to itself in everything it does, and
in collaboration with up-and-coming young builds on proven areas of success while constantly innovating to stay fresh,” she says.
designers, was recently launched. According to Gebhardt, the 501 jeans range is still the top selling locally. The women’s Eva
The appeal of a pair of Levi’s is not limited to jeans (developed locally for the specific proportion of the African figure (smaller waist to hip
its fashionability. The Levi’s brand is marked by ratio) has also been successful.

BRAND ANATOMY
its focus on ethical codes of business and product Red for Life
manufacture as well as its ongoing commitment The Red for Life programme uses a variety of media platforms to reach its target market (particu-
to the community and the environment. “How larly the youth) with its messages. “While traditional ATL mediums like TV and radio are still
products are made, by whom and with what – effective in driving awareness, I would argue that their ability to influence or inspire action out of
all these factors are becoming more important the receiver – particularly on weighty issues such as HIV/Aids – is questionable. We have found
to consider, and this is borne out by consumer success through a more interactive, non-traditional approach because, for this communication,
studies globally,” says Gebhardt. The company’s it’s important that it engages the receiver in totality. It should add value to their lives, challenge
business policies include, among others, their thinking and cater for their needs, fears and preconceived ideas. And what makes this
addressing social biases; as early as the 1920s, possible is that non-traditional media allows one to be specific when targeting the end
the company was advertising in Spanish and consumer,” says Gebhardt.
Chinese, to specifically target and serve these TV and radio are also expensive, while non-traditional media approaches (mobile testing
often neglected markets. During the 1960s, it centres, condoms, etc) make a difference and drive real value for the brand. And by all
would not open new plants in those US towns accounts, it’s working. “Over 51 000 people have been tested, including many top local
that imposed racial segregation. And in 1991, it musicians and celebrities, the offices of the President, two United States Congresswomen, the
was the first multinational company to develop COO of the SABC and DJ Fresh and his team, live on air,” says Gebhardt. The campaign was
a code of conduct that made provision for the helped along by the SMS service established in collaboration with Karabo; people could SMS
individuals who manufacture their products; the their location to the service, and it would reply with the details of the testing station nearest to
company set guidelines for the safety and health them. The service received over 2 000 SMSes in a little over six weeks.
of its employees as well as for their treatment in
the workplace. says Gebhardt. These initiatives include Levi’s
The company’s guidelines also take the Original Music (which supports local original
environment into consideration, with Sourcing music) and the Levi’s Red for Life programme,
and Operating Guidelines, Global Effluent which addresses the HIV/Aids pandemic.
Guidelines and a Restricted Substances List, all Gebhardt says that the denim brand has built
of which seek to control the impact that Levi’s itself and leveraged its initiatives through its
manufacturing has on the environment. “As a commitment to a local association with a
brand, we have always prided ourselves on a property literally embedded in its genes – music.
‘profits through principles’ approach; and this is South African musicians lend their voices and
reflected through our Terms of Engagement their fan appeal to Levi’s causes, making the
contract that we employ with our suppliers, brand message irresistible to the youth that are
which devotes a chapter to environmental the target.
sustainability,” says Gebhardt. Another brand dimension which holds campaigns that have, over the decades, made
Globally, Levi’s was the first major brand to huge market appeal is the sassy advertising this brand a firm favourite. You may remember
launch a fully sustainable pair of jeans (Levi’s the ad featuring the ‘blind’ voyeur in the petrol
Eco Jeans) in mid-2006, while locally there are a station bathrooms or the sexy blonde who uses
few projects in the pipeline. “We are currently train tracks to cut her jeans? Levi’s is making
conducting a project with the National Cleaner good use of this ‘street cred’. “I believe that as a
Production Institute (NCPI) to further ‘green’ our sexy brand, we are demonstrating to people,
facility. We have also recently introduced video- specifically the youth, that you can be sexy AND
conferencing to cut down our employees’ travel responsible. And, encouragingly, we have
and are launching a small 100 per cent organic seen this approach resonate more and more
cotton line that aims to educate the consumer particularly with the younger generation – we
on the lack of ‘green’ manufacturing options in see it reflected by the youth,” says Gebhardt.
South Africa,” says Gebhardt. “This is an The Levi’s brand appeals to just about
important issue to which everyone needs to everybody, regardless of age or race. According
contribute but ultimately consumers have the to Gebhardt, the brand achieved this through its
opportunity to drive that change.” use of relevant, local properties in its Original
Community involvement and support, as well Music and Red for Life campaigns. “Levi’s is one
as a dedication to social issues, such as the Aids of the most widely recognised brands in the
pandemic, have also given the Levi’s brand a history of the apparel industry. It has evolved
certain leverage. Locally, Levi’s has four for over 135 years by remaining firmly in
Community Involvement Teams (CITs), which touch with the youth market. Going forward,
identify and organise several community projects the brand will remain true to its pioneering
each year. “The programme is driven and heritage, seeking to uncover consumer
managed by the staff as opposed to management. insights, probing global trends and innovating
Locally, we have focused particularly on helping to meet consumers’ ever-changing needs,”
those in need, from the elderly to street children,” says Gebhardt.

by helen mcintee EXPERT OPINION
Vulgarity – I don’t buy it

What has become of creative writing, reading that apparently the word ‘fokol’ can,
clever journalistic reporting and the smart, in certain circumstances, be used on radio as it
skillful use of the English language? Where is regarded as a colloquialism and is, by and
have the verbal artists and language craftsmen large, acceptable to speakers of indigenous
gone? I write this not as a prude – I use slang languages (BCCSA ruling). However, this does
and enjoy a risqué joke at the best of times, not extend to the English version of ‘F*ck all’!
but since when did it become acceptable for Now I give up… surely they mean the
the printed and spoken word of companies same thing!
and broadcasters to include swear words, Recently, I gave my daughter the weekend
vulgar common language, sexual innuendos newspaper magazine as it contained an article
and even blatant in-depth descriptions of sexual on her latest teen heartthrob. However, I
organs and activities? And yet a bigger noticed while flicking through it that, while
question is: When did it become necessary to there is a lovely pic of Zak Efron… just a
stoop this low to sell goods and services? couple of pages before it is an advert that
Currently, we have casinos depicting phone screams ‘weak erection, early ejaculation’.
sex. We have voices (well, noises!) on the radio Two pages later there is a beautiful pull-out
simulating orgasms. Guavas and oysters educational supplement for children….
appear on huge public billboards advertising followed directly by the good old ‘date club’
strip clubs and, my favourite, simply because it (we are not prostitutes or escorts) classifieds.
is so obtuse and reminds me of a calendar to Do we not do market segmentation
be found in a panel-beater’s workshop, a anymore? Do marketers not identify specific
naked women holding a piece of cake apparently target markets? Are audiences all the same?
advertising a Cape Town restaurant. Are we all just moving towards one-size-fits-all?
Furthermore, there has now arisen an apparent I have finally reached the conclusion that
“
obsession with bodily functions. A toilet roll copywriters, journalists and even scriptwriters
manufacturer says that we should be quite keen To me the English have lost the plot (pun intended). I used to enjoy
to overindulge in vindaloo as, with its product, watching Isidingo with my daughter but even
we will look forward to sitting on the loo longer
language in South Africa that has become unbearable – rape, gangsters,
(yeah right!) It seems too that marathon today is a vision of its drugs, murders, election fraud, affairs, mercenaries,
runners suffer from diarrhoea while running. corruption and so on. Where is the good stuff,
(Gee, thank you for telling me that). former self – please can does it have to be bad or rude to entertain?
Motor car companies refer to ‘cardinal And after reading a recent newspaper report,
we all do something
knowledge’ (sic), I discovered the word I cannot believe that a journalist reporting on
‘decadent’ being used to sell mayonnaise and a about it before we degen- the horror of an attempted rape resorted to
financial services company using phrases like using words such as ‘vagina’ and ‘penis’. I
‘bullshit’. None of this is clever writing – it’s
erate into adopting a would assume that in a crime of this nature
boring and unintelligent. series of grunts with finger those body parts are generally the ones used –
”
Where is the originality, the beautifully scripted how tasteless and offensive to the victim to be
words that invoke in the consumer thoughts of movements? quite so blunt!
the real benefits of the product, the real positive To me the English language in South Africa
sense of what they are buying? Granted, there today is a vision of its former self – please can
may be many people out there who enjoy this we all do something about it before we
type of humour and perhaps they like to degenerate into adopting a series of grunts with
visualise themselves stuck on the bog all finger movements?
morning, feeling endlessly grateful for their
double/triple/quadruple ply toilet tissue. But I when we were revelling in our freedom,
think you may find just as many people who certain members of the community may have Helen McIntee
would rather use their imagination than be misinterpreted the Constitution as a wonderful academic director
thrown figuratively into a small room that smells piece of work that says ‘we can do, say, and IMM graduate School of Marketing
rather badly. behave’ in whatever way takes our fancy. (011) 628 2038
Perhaps in the early days of ‘independence’, In fact, to that end, I was blown away when helen@imm.co.za

7 DAY [B]ITCH
Nic Haralambous –
editor/blogger/business strategist
21/01/08 Go to work; smoke. A

I don’t wake up at 5am. I won’t claim to. My alarm goes of at 6.30am, bad start to the day. 10am,
sometimes… Today is one of those. The alarm goes off, I scramble to shut smoke. It’s getting worse,
it down. Fifteen more minutes’ sleep. Then I’m up, showered and shaved. now with a headache. No
Clothing is important to me so I make a point of taking time to pick out training.
what I wear. It’s not always worth it though. Gym? Ha! As if I have time. I must make time though.
Then breakfast, tea, check e-mails, blogs, blog aggregators and feeds. Leave work after dealing with IT department, student societies,
Pack everything up and I’m on the road. chairpeople, writers, editing, marketing, sales and subscription
The trip to work isn’t too bad: twenty minutes to half an hour and the departments, all in one day. Lovely.
day begins in earnest. Definitely heading to gym.
Login to PC at work, check e-mail, blogs and feeds. Then coffee. Get to gym, and it’s dark. No lights, no generator. That’s twice in one
Smoking is a part of my day that I cannot refuse (10am, 1pm, 3pm and week. Awesome. No gym. No dinner, no nothing. Ah, the problems of
home time are smoke breaks). the privileged.
I get through meetings, blog posts, e-mails and more, and then I head
home. Twenty minutes to an hour and a half, depending on how much 25/01/08
shedding of its load Eskom is doing. Friday is a tough day. It’s hard to wake up because I know it’s party night.
That means a full day of about 20 to 22 hours of wake-time. Mission
22/01/08 through the day but at least it’s THE WEEKEND BABY! (Thanks Gareth
Got a meeting in Pretoria at 11.30am. Honestly considered not going in Cliff for that one.)
to work. Loads are being shed. But meeting has to happen. I Facebook people to see what plans are lined up for the weekend.
Get to work, the usual again: login, e-mail, feeds, blogs, blogging and I also twitter, blog, e-mail, blog and check RSS feeds.
twitter (chat). Leave work at a fantastic 6pm. Go straight to a dinner, then to
Leave for Pretoria to meet with the chairperson of GoldenKey. It’s a Manhattans. Stay till 4am, by which time I have been awake for about
long drive. 22 hours or so... Finished.
Check e-mail on the road and respond. Get to the University of
Pretoria, check e-mail again, blog a bit. The meeting is extremely positive. 26/01/08
Back in the car and back to work. The whole round-trip takes close to No rest for the wicked, they say. Wake up reasonably late. Make breakfast
four and a half hours. Joy. for my girlfriend and we eat outside under the cloud cover. Get straight to
Work finishes. I visit my girlfriend (after all, tomorrow night is boys’ work on blogging and connecting with people who’ve been waiting for
night). Head home. me all week. Send out e-mails and start compiling blog posts for the
week on both my blogs. Also planning the launch of a new blog, so
23/01/08 I have lots of work to do there.
It’s ‘8 Thirsty Wednesday’. This means drinks with the lads. Rush through End off the day with drinks at Bulldogs. Why Bulldogs? I work right
the day. Straight from meeting to meeting to work and then to there everyday, then get taken back to that area for drinks? Please man.
McGinty’s.
I call ahead to book a table. Done. Send out the weekly ‘8 Thirsty’ 27/01/08
e-mail to the lads. Response follows and the meeting is set. Sundays, bloody Sundays. I love Sundays and this one is no exception.
Talk sh*t for the entire night, end up discussing drug testing in golf Wake up and make breakfast. Get the Sunday Times. Spend a few
and whether it’s worthwhile. No conclusion. hours reading David Bullard’s column, blogging, playing Xbox 360 and
checking e-mail.
24/01/08 Then I veg out. Sundays are ‘takeaways and a DVD’ days. The 8pm
Thursday is a very in-between day. This week even more so. Eskom has movie usually stinks. We get Steers and a DVD and watch ‘till I fall asleep.
gotten me down. I am depressed about SA and it’s hard to be depressed My girlfriend wakes me on her way home.
when you run www.sarocks.co.za. I am that guy. The one who holds the The week officially ends with me reading the book of the moment:
positive flag for everyone. It’s not happening. Gonzo.

GAY MARKETING
Courtesy Queer City Productions
Think pink
What do Hugo Boss, Mumm Champagne, competitors who have been slow to However, research is difficult to carry out.
Flexbender, Exclusive Books, Bacardi and 5FM acknowledge this market. “The respondents are difficult to identify as the
have in common? In a nutshell, they have It is estimated that about 10 per cent of the only element they have in common – their sexual
successfully marketed to the gay community (or population of developed countries is lesbian or orientation – is invisible or intangible,” says
LGBT – Lesbian, Gay, Bisexual and Transgender – gay. Locally based Hot Salsa Media has been Quann. According to Morne Ebersohn, publisher
community). These are brands that have realised conducting research since 2001, it has found of local gay magazine Wrapped, there is the
the potential that the LGBT market has, and that 10.8 per cent of the adult market is gay or problem of where to sample from. “We have no
have also taken the right steps to communicate lesbian. “In perspective, in these groups there database to draw on for a study of this market.”
with it effectively. And you can bet your fabulous are more gay and lesbian people in SA than Nonetheless, the profile of the gay community
Pink Rand that they have more support and there are white people,” says Viv Quann, senior has been raised, thanks to the entertainment
loyalty from this community than those of their group strategist, Hot Salsa Media. media (think Will & Grace, Queer Eye for the

GAY MARKETING
Gay media in South Africa: power of the gay and lesbian market in the USA
Wrapped magazine at US$641 billion. Mark da Mata, marketing
Mambaonline.com executive at Pink Advertising, says: “while it is
Mambagirl.com true that a fair proportion of the sector is in the
Gay Pages upper LSM bracket, there are a few things that
Exit should be taken into account.”
Gaypeers.com For example, gays and lesbians have been
The Pink Tongue found to be far more entrepreneurial than other
Bravo Brava, Radio 2000. populations. Hot Salsa Media found lesbians
earn as much as heterosexual men, with 25 per
cent earning more. Compare this with studies
that put heterosexual men and women side by
Courtesy Queer City Productions side, and you find that 34 per cent of these
women earn less than men. “That’s because
one in three lesbians is a successful entrepreneur
and one in four gay men is an entrepreneur; for
their heterosexual counterparts it is one in six,”
says Quann. This is usually because gays and
lesbians don’t have the family responsibilities
that heterosexuals have, although Hot Salsa
Media reports that locally, 24 per cent of
lesbians and five per cent of gay men have
children living in their homes.
Further food for thought, is the fact that a
fair proportion of gays and lesbians are
“
In perspective, in these groups there are more gay
”
and lesbian people in SA than there are white people,
Viv Quann, Hot Salsa Media.
Straight Guy or The L Word, all of which screen
on DStv), and new legislation (specifically, the
Civil Union Act, which now recognises same
sex marriage). This has opened up huge
opportunities for the hospitality industries here.
Ezemvelo KZN Wildlife Resorts has seen a jump students, falling into the 18 to 22 age group.
of over 300 per cent in bookings and a 100 per “They are students without disposable incomes.
cent increase in the number of LGBT weddings Yet this is the right place to create loyalty and
at its resorts, reports Quann; all this simply build a brand,” says Rossouw.
because it marketed itself correctly and has One thing’s for sure: brands are starting to
trained its staff in dealing with gays and lesbians. show greater interest in this market. The 2006
Mainstream media coverage of gay events Gay Press Report found that advertising in the
has boosted the gay community and gay events gay and lesbian press was up 205 per cent since
industries. “All the media coverage has helped 1996, reaching $223.3 million. Over 183
us to start doing bigger things, because brands Fortune 500® brands were active in the gay
and companies trust us to do bigger things,” market as of 2006 (compared with 150 brands
explains Pieter Rossouw, MD, Queer City in 2004). The report found that the most
Productions. popular product categories are travel, financial

Stereotypes, generalisations and assumptions services, automotive, fashion and entertainment.
have blurred the marketer’s understanding of Locally, this market is still wanting for services
this sector. “The gay market is one of many and products that take their needs to heart.
sub-cultures, and these must all be understood, Ebersohn explains: “The gay market is not
which will take time,” says Ebersohn. under-served, but it can certainly be better
The 2006 Gay Press Report placed the buying served.” says Ebersohn.

GAY MARKETING
Events are living together but are not married, do not

Cape Town Pride festival: have the option of a joint bank account, while
www.capetownpride.co.za airport lounges do not keep gay magazines.
Johannesburg Pride Festival: Ebersohn emphasises how the first bank, airline
www.joburgpride.org or hotel, to take that step will lead the market.
The Pink Loeries: www.pinkloerie.com Snuggling up to the LGBT market is not
Mother City Queer Project: always easy. In the US, conservative, right-wing
www.mcqp.co.za groups (such as the American Family
Out In Africa film festival: www.oia.co.za Association) launch boycotts against companies
that advertise in the gay media, making it even
more daunting for brands looking to follow in
He points to the financial services industry, their footsteps. But it’s about time that brands
which may have realised that gays have got excited about talking directly to this market.
disposable income, but have not developed “The advertising interests and receptiveness of
financial packages or products tailored the gay market is not being addressed by the
specifically for them. “Retirement packages, traditional and most of the existing gay media.
banking and other financial instruments should We think that in the gay community there is
take these consumers very seriously,” says Joe enormous advertising potential that is laying
LaMuraglia, founder and managing partner of bare,” says Ella Lay, content manager,
US-based Targeted Diversity Marketing and gaypeers.com.
publisher of gaywheels.com. Specialist agencies, such as Pink Advertising
Consider Subaru, which started marketing and Hot Salsa Media locally, may offer brands
just one model of its vehicles to the LGBT the best understanding of this market, and will
market two years ago; “We surveyed the market know where, how and when to break through
first to ascertain percentage of ownership of this the clutter of traditional marketing messages.
brand on the outset. It was 0.5 per cent. At the Advertising to this market must be subtle and
end of the second year, this had jumped to 3.5 must show an understanding of the gay lifestyle.
per cent, which is over R2 million in revenue,” “The gay market is tough and unforgiving. You
says Quann. can’t lead them by their noses,” says Rossouw.
In the US, LGBTs have specific websites Da Mata adds that understanding gay
geared to them, such as gay financial network relationships is also key. “But more important is
www.gfn.com; there does not seem to be a the understanding that being gay is not a sexual
local equivalent. But locally, gay couples who thing. It’s about lifestyle and mindset,” he says.
Segmenting by age group or lifestyle interests is
more positive. LaMuraglia suggests that religion
and politics be kept out of ads. One-size-fits-all
ads, catering to the masses, won’t endear you
to this market (keeping in mind that gays and
lesbians will have different needs and shopping
habits, for example, and also that the LGBT
market has various sub-cultures, each of which
wants to be addressed directly). “Use a
gay-targeted message to relate to the target
market… if you are going to show people,
don’t show a straight couple. Take time to think
about your market,” says La Muraglia.
Marketers who are concerned that targeting
the LGBT market will alienate their straight
customers should tweak their campaign material
accordingly, so that the messages and creative
they place in gay media is suited to the

audience and is sensitive to it. Nando’s has
done just this – consider its ‘chicken to come
out for’ campaigns, as seen in gay print titles.
The good news is that specialised targeting of
the gay market increases the perceived quality
of the brand, and gays will pay more for these,

GAY MARKETING
according to da Mata.
Brands are reminded that they should be
seen to be in it for the long term. “Many
companies have mistakenly believed that they
can come into the LGBT arena, throw a few
bucks at the market for a month or two and the
market will be so grateful it will run and buy
their products or services immediately,” says Quann
A company’s service also needs to address
this market correctly. “Your staff members need
to learn to speak without bias or assumption.
They shouldn’t assume that every person they
speak to is straight, married and has kids. If they
are married and have kids, staff shouldn’t
assume that they are married to someone of the
opposite gender,” says Quann. Non-gender
specific language is especially important.
Traditional media formats targeting the local
LGBT community are seeing major growth.
Wrapped magazine, for example, has watched
its sales figures growing from just 32 per cent in
April last year to around 70 per cent in
December. The Pink Tongue, a recently launched
community newspaper, published by the fact that it is often ‘targeted’ by brands and
Independent Newspapers Cape, is taking is therefore in a position to choose who it wants
gay news and lifestyle features to the gay to support,” says De Klerk.
communities around Cape Town and Gauteng. The good news for marketers is that when
Distribution of the title’s 15 000 free copies is targeting the LGBT market, they are freer to
through various gay-owned and gay-friendly experiment with events, activations and online
establishments. “Before the paper was tools. “As long as it’s the right product and it is
launched, various NGOs (such as the Triangle presented in the right way,” says Rossouw, who
Project) were approached and they all gave has watched some brands try to enter this
the thumbs up to the concept,” says editor, market and fail miserably.
Gary de Klerk. Events are one affordable option for brands
The newspaper is tasked with challenging seeking exposure to this market. Rossouw has
homophobia, and it achieves this by featuring also found an increasing number of brands
and following up on current news, including want to get involved, especially as the quality of
articles dealing with homophobia. The publication event production improves. “It’s not that there
embraces homosexuality and publishes a is hesitation on the part of advertisers or sponsors.
mainstream monthly publication that shows gay It’s just that until recently, there was a lack of
life and lifestyles. The newspaper is the ideal structure in the planning of events – proposals
environment for cars, cosmetics, banks and and documentation, for example, and the
investment companies, travel operators, alcohol, exposure for these events,” he says. Events must
speciality brands, shops and clothing stores. be of a high quality – the market demands it,
“Brands and products need to be aware of the and because it is becoming increasingly
fact that the gay market is picky; it is aware of acceptable to be openly gay or lesbian, events
really need to deliver something extraordinary.”
Da Mata further emphasises donations to
Gay car of the year: gay causes and the development of corporate
www.wheels24.co.za recently held the second annual Alternative Car of the Year Awards, policies should be looked at. Global Rental (a
in which car fanatics cast their votes in categories, including Corrupt Politician’s Car, locally based company offering local and
Straight Car and Gay Car. international car rental services) is allocating five
Nominees in the Gay Car category included the BMW 3 Series Cabriolet, Mini Cooper, Alfa per cent of its profits to two LGBT non-profit
Romeo Spider and Audi TT Roadster. But the winner, with a whopping 8 700 votes, was organisations. The campaign relies on LGBT
the Peugeot 207 Coupe Cabriolet. According to Wheels24 editor, Wilmer Muller, the key websites to forward an e-mail advertising the
characteristics highlighted by online voters, which set the Peugeot apart included services of Global Rental and the LGBT initiative
stylishness, fashion ability and uniqueness. that it has committed to, so that it eventually

GAY MARKETING
Who is the gay market? frequent magazine readers, and 21 per cent
Mambonline has done some research, and has found that: have a personal income above R15 000 a month.
Over 65 per cent of this market falls between LSM 8-10 Look out for the growth of targeted ad
Over 80 per cent aged over 25 own their own homes networks, says LaMuraglia, as these will help
Over 15 per cent own a second home marketers speak to LGBT consumers in their
Over 70 per cent take more than five power breaks in upmarket settings a year own voice and on their own turf. “The
Over 25 per cent are self-employed entrepreneurs proliferation of blogs and social media networks
Over 30 per cent have tertiary education has increased the raw number of gay
consumers online, but from a marketer’s
becomes viral. “This is measurable, to the cent, perspective, it is difficult to manage multiple
actually, as it is online bookings done through a campaigns to an increasingly fragmented
single URL created only for this campaign,” market,” he says.
explains Quann. The brand is successfully building Get the marketing, communications and
its profile among a market of which a large service right, and your brand is in for a long and
portion are successful, upper LSM individuals, rewarding love affair with the LGBT market,
who have more opportunities to travel and because this is a brand loyal market. Hot Salsa
therefore more opportunities to use the rental Media found respondents prefer to purchase
services provided by Global Rental. from gay-friendly companies, even if their prices
Online tools are great options. “The gay are higher. They feel it is important not to buy
market talks and interacts online a lot more from companies who are hostile toward them.
than straight markets do, with chat rooms, Eighty per cent of respondents reported that
social networks and dating sites allowing more they would change their attitudes towards
social interaction. These platforms also allow purchasing brands that support them, with
them to meet other gays without possibly 73 per cent saying that they would purchase.
offending others,” says da Mata. Fifty-seven per cent of respondents reported
Gaypeers.com, a local social networking that they have changed the brand they
website, was launched in October 2007, and purchase based on a company’s positive stance
now has over 1 500 members. Lay says that the toward the gay and lesbian community. Of that
majority of the members are LGBT (between number, 76 per cent stayed with the brand for a
80 and 85 per cent are male). “There is a small year or more. “The best thing about this market
percentage of straight individuals joining the is that they become brand ambassadors when
website as well. However, it must be stipulated they are served in the right way,” says Rossouw.
that the content on the website and the LaMuraglia too points to gaywheels.com surveys,
marketing activities are solely directed towards which saw 86 per cent of GLBT respondents
the LGBT group.” She says that online marketing considering a company’s policies towards them
is highly popular and efficient for advertisers before purchasing a product. “Statistically, we
who want to market their products within the are loyal to brands that are gay friendly and that
gay community, especially because the Internet support our media,” he says.
is the only medium that covers the gay community And once the gay market has adopted a
thoroughly and extensively. “Even in brand and endorsed it, the straight market will
underdeveloped, suppressed and highly quite likely follow suit. “Gays are perceived as
homophobic societies such as Uganda, the gay chic and to have style,” says Rossouw, pointing
community groups or gathers together and to the metrosexual trend as one example of a
stays in touch via the Internet,” she says. gay-pioneered trend.
Website mambaonline claims to reach It would seem that the LGBT market is
43 000 people a month through its lifestyle untapped, and in need of brands bold enough
website. The site reaches urban gay men and to snuggle up with it. But not all brands will
women aged 18 to 45. Site content includes benefit from a foray into gay marketing. The
weekly lifestyle features, daily news, fashion, cosmetics, fragrance and car markets
entertainment and a popular online dating will find it relatively easy to get a foot in the
service (Meet Market), which boasts in excess of closet door. Baby products, on the other hand,
18 000 members. According to a survey of should avoid trying to woo gays. “While there
visitors to the site, 76 per cent own PCs; 60 per are a lot more gays adopting children now, this
cent are regular cinema-goers and restaurant is still a small niche,” says Ebersohn.
diners. Fifty-two per cent travel internationally
every two years. Eighty one per cent are

EASTERN CAPE INTELLIGENCE
Eastern Cape rules

The Eastern Cape is home to some of South speak Xhosa as a home language. English and Africa’s population with Port Elizabeth and East
Africa’s treasures: the Karoo, Addo Elephant Afrikaans are home languages for 4.8 per cent London being the sixth and seventh largest
Park, the Tsitiskamma forest as well as pristine and 11.5 per cent of the population respectively. cities respectively, with populations well over
beaches. This is also the home of the Iron Man Eighty five per cent of the province’s population one million. These consumers, having not been
competition. The region is well supplied with is black, with almost eight per cent coloured targeted by marketers, are not yet necessarily
airports, railways and ports. With investments and seven per cent white. AMPS also found that brand loyal,” says Simon Wall, sales director,
numbering in the millions, and development there has been an increase in truck advertising Tractor Outdoor. “With the massive infrastruc-
ture expenditure in the Eastern Cape and with
disposable incomes growing, leading marketers
are provided with an opportunity to entrench
their brands in the Eastern Cape,” he says.
Industrial developments
Several industrial development zones (IDZs) are
attracting local and foreign investment.
According to information published on
www.coega.co.za, the 11 000-hectare phased
Coega development zone will create industry
clusters dedicated to export manufacturing
companies in the region. This IDZ is set to
attract foreign and local investment in the
manufacturing industries; the sites are serviced,
and there are flexible lease and utility prices. Key
priority investment sectors include metals,
textiles, automotive, services, chemicals and
energy. News reports indicate that a deepwater
port is being built in this zone, and this has
attracted investment from Alcan aluminium
smelter as well as a Seark shrimp farming project
(both of these investments amount to millions).
The East London Industrial Development Zone
has grown since its inception in 2002, to
number more than 100 fully serviced sites and is
© Graeme Bridger home to DaimlerChrysler South Africa as well as
initiatives promising to further grow this region, in the province, and it is the biggest consumer renowned component manufacturers. It also
it is a market area that cannot be ignored. of Amstel Lager. offers opportunities to businesses in the
Marketing Mix takes a closer look at this The Eastern Cape’s economy saw growth of automotive, marine aquaculture, agro-processing
province, and all that it offers the marketer. 4.8 per cent in 2005 (up from 4.2 per cent in and pharmaceutical industries. This IDZ is also
the preceding year). Annual GDP growth is also focused on attracting local and foreign
Overview on the up. The main contributors to this investors. Some of these projects may be
AMPS 2006 figures found that 14.8 per cent of growth are finance, real estate and business affected by the power crisis, but it seems they
the total population lives in the Eastern Cape; services, followed by government services and will continue to run smoothly for now.
almost 53 per cent are females. Thirty-two per manufacturing. The automotive industry is a “The Eastern Cape has not been affected by
cent of the province’s population is aged 16 to major source of investment and GDP for the load shedding to the degree that Johannesburg
24; 24 per cent is aged 25to 34. Twenty eight province. General Motors invested R700 million has – we are managing it,” says Neil Hart, MD,
per cent of the Eastern Cape population has a in a plant, when it launched the H3 in South Boom Town Advertising. It is involved in the
household income of between R600 and Africa. Volkswagen is awaiting completion of its Govan Mbeki renewal project, which is
R1 000 a month; 5.4 per cent earn between R750 million paint shop. And Daimler Chrysler is modelled on such urban regeneration projects
R8 000 and R14 000. Total provincial personal upgrading its facilities in East London. Farming as we have seen in Newtown, Johannesburg.
disposable income is estimated at an annual and horticulture generate around R2 billion for “With regard to the Govan Mbeki renewal
R50 billion. the province, according to Stats SA. project, it is a longer term project where a
Almost 80 per cent of the province’s residents “The Eastern Cape has 15 per cent of South number of things have to be addressed first in

Summer Lovin’ • The majority of respondents indicated that they have visited
Nelson Mandela Bay Tourism and the Eastern Cape Tourism Nelson Mandela Bay more than three times. Most of the
Board’s Summer 2006/7 Research Survey reported the following first-time visitors were foreign visitors.
findings: • There has been an increase in the use of self-catering
• 84 per cent of respondents were domestic tourists and 16 per accommodation, second homes, guest houses, camping/
cent were foreign tourists; this shows a decrease of 4 per cent in caravanning accommodation and backpackers’ lodges.
domestic respondents compared with the 2005/6 period, and an • The majority of respondents spent more than R500 or more per
increase in foreign respondents from 11 per cent. day per person.
• Of the foreign visitors, 25 per cent were from Africa. • Most respondents made use of a telephone to book accommo-
• The majority of domestic visitors were from Gauteng, followed dation, followed by Internet/e-mail, travel agent and tour opera-
by the Western Cape, Eastern Cape and KZN. tors, walk in, family and friends, timeshare, booking agency and
• Most of the respondents from abroad were from the UK, other. However, for international visitors, booking via Internet/e-
Ireland, Germany, Sweden, the US, New Zealand, Australia, mail was more prevalent.
Switzerland and Italy. • Most respondents were motivated by friends and relatives to
• Compared with previous years, there has been a marked visit Nelson Mandela Bay. Twenty per cent were motivated by
increase in visitors from Ireland, Botswana and the UK. their previous visits, followed by Internet recommendations, mag-
• There was a fairly even spread of respondents from each age azine exposure, brochures and business.
category, with 31-40 year olds accounting for 20 per cent of • While shopping and entertainment is less of an attraction this
respondents. They are followed by age groups 16-20, 41-50, year, the beach is increasingly an attraction to visitors. The wildlife
26-30 and 51-60. and adventure pursuits have also seen increased interest.
• In terms of occupational status, the strongest market is profes- • The majority of respondents said they perceive Nelson Mandela
sionals, which account for 35 per cent of respondents. They are Bay as a safe destination. Only two per cent of respondents said
followed by students, self-employed, state employed, pensioners, that it is unsafe.
other and unemployed. • The wind, the beach and the weather are the least enjoyed
• The majority of respondents stayed in Nelson Mandela Bay for aspects of the area.
11 days or more. Twenty-five per cent stayed 3-5 days, 18 per • Only 30 per cent of respondents were aware of the Summer
cent between 6-8 days and 14 per cent between 9-11 days. The Season Programme this year compared with previous years
statistics reflect that, compared with previous years, there is an (this may be because the campaign started late due to financial
increase in people staying for 11 days or longer, as well as an constraints). However, overall ratings for the Summer Season
increase in short stays. programmes were all high.
order to progress to a stage where investors Tourism

can be approached,” says Hart. This Tourism in the Eastern Cape is faring well, with
development is worth about R50 million, figures showing growth in the number of
says Hart, while that of Coega is worth around visitors (particularly foreigners) to the province.
R30 billion. He says that the major golf estates
in the region as well as game reserves Media mix
should be watched; they will continue to draw Radio
foreigners. He points to the Shamwari Game Algoa FM reaches 786 000 listeners every week
Reserve, which has been voted the Best Game (RAMS 2007), 57 per cent of which are male.
Reserve in the World for the fifth year running. The majority of listeners are between the ages
“Coega is also one to look out for as it is of 16 and 49 years (with the core market falling
expanding rapidly, as well as the Kouga into the 25-49 year category). Almost half of lis-
Development Agency,” he says. As Wall teners are black; and 35 per cent are coloured.
explains, these developments will continue to About 334 000 listeners are in LSM 7-10, and
attract Indian and Chinese companies, especially this group has recorded 24 per cent growth,
since South Africa is seen as a launching pad according to United Stations.
into Africa. The station’s format is adult contemporary;
Radio listening (RAMS Feb 2008 and AMPS 2007)

Station Past 7 days Ave day Ave HH income Average

programming includes the usual news, sport

Eastern Cape newspapers
Title Circulation Readers
and weather as well as community and local (ABC Jul-Sep
information. “Our local advertisers get to feel 2007)
more of an ownership and involvement being

close to the station and its personnel, but both
national and local advertisers benefit from our
focused approach,” says Algoa FM sales manager,
Dennis Karantges.
CKI FM Stereo also operates in the region as
a national SABC station. There are also a hand-
ful of local community radio stations which
serve the smaller communities.
Newspapers
The newspaper sector is well developed, with a
range of daily, weekly, weekend and free
community titles distributed in the province.
According to AMPS 2007 figures, newspaper
penetration in the province has risen to 26.5 per
cent, from 25.2 per cent the previous year. And
while this is still the lowest penetration across
the country, this is a sector that looks set to
grow, especially in developing regions (the
townships and new development zones). “Our
province has also seen a recent boom, so there
are many more businesses springing up, which Eastern Cape community newspapers
means there are more advertisers,” says Title Distribution Circulation Estimated Readers
Mauneen Charter, Chief Sales Officer, Avusa (ABC Jul-Sep readership
2007)
Community Newspapers. Two new malls opened
in Port Elizabeth, with a third opening in April
2008. “Once these developments attract talent
and empower people economically, newspapers
in the area might see an increase in circulation
and readership,” says Reinard du Plessis,
advertising manager, Die Burger Oos Kaap.
Events Calendar 2008

Nelson Mandela Bay Splash Festival,
21-24 March 2008; www.nmbt.co.za
Ironman South Africa, 13 April 2008;
www.ironmansouthafrica.com
Grahamstown National Arts Festival,
26 June- 5 July 2008; www.nafest.co.za
Kirkwood Wildlife Festival, 28 -29 June
2008; www.widlsfees.co.za
2008 Biltong Festival, 11 - 13 July 2008;
www.somerseteast.co.za/biltongfees
Rhodes Trail Run, 12 July 2008;
www.rhodesrun.za.net
Citrus Carnival, 16 August 2008.
Hogsback Arts Festival, 21-30 September
2008; www.hogsbackinfo.co.za/spring
Addo Rose and Garden Show, 25-27
October 2008; www.addorose.co.za
Uitenhage Street Carnival, 30 November-
1 December 2008.

Community newspapers appear healthy and

stable. Many of the papers are looking at Eastern Cape conference venues
launching online, following market trends, while Bushman Sands Hotel and Game Reserve: facilities include a Gary Player-designed
others have already done so. golf course, big game viewing and a spa. Conferences for between 12 and 90
The many developments in the province are delegates; all venues are air-conditioned. Team-building events are also catered for.
driving newspaper growth, though Charter says www.bushmansands.co.za
that this is still in the early stages, and adspend Cape St Francis Resort: conference capabilities allow for hosting of up to 130
has been mainly in the dailies. “There is no need delegates. Accommodation both self-catering and B&B. Various activities offered,
for new newspapers at this stage as there are including hiking, tennis and golf. www.capestfrancis.co.za
sufficient to cover all areas,” she says. Fancourt Hotel and Country Club Estate: hosts up to 250 people for conferences
Economic pressures will see newspapers in (and includes a conference hall, boardrooms, breakaway rooms and a ‘hidden’ timber
the region feeling the pinch. “We can expect bungalow. Facilities also include a golf course (hosted the 2003 Presidents Cup golf
less growth and consumer spend – money is competition), spa and hotel. www.fancourt.co.za.
tight and people are scared to spend. But if they Feather Market Conference Centre: Main auditorium can seat 1 187 guests; six
have something to market or sell, they still need venues as well as breakaway rooms. www.feathermarket.co.za.
to advertise, so we have not been adversely Kariega Game Reserve: conference facilities include two rooms able to host
affected as yet,” says Charter. She believes that between 18 and 80 people. Accommodation available in a number of venues.
economic pressures will shake the industry up. Activities include game drives, river cruises, mountain biking and fishing, among
Du Plessis finds that Die Burger Oos Kaap’s others. www.kariega.co.za.
circulation has remained somewhat stable. “Due Nelson Mandela Metropolitan University (NMMU) Conference Centre:
to economic constraints, consumers are more auditorium capable of hosting 120 delegates, with two smaller venues available for
aware of their habitual/impulsive purchases and 40 and 12 delegates respectively; foyers ideal for cocktail parties and exhibitions for
cut down on non-essentials,” he says. 250 people; the restaurant caters for 130 diners. Venues also available on campus.
www.nmmu.ac.za.
Community magazines Victoria & Alfred Guest House: three conference venues can host from five to
MyWeek has magazines in two zones in the 100 people. www.victoriaandalfred.co.za.
province, specifically East London (25 000 Wavecrest Resort: Intimate conference centre seats 44 delegates. Various team-
copies) and Port Elizabeth (30 000 copies); both building activities also offered. www.hoquality.co.za/wavecrest.
of these were launched in late 2007. “Both
publications have been well received by both
the readers and the advertisers,” says Amanda
Brinkmann, operations manager, Media24. Community radio listening (RAMS Feb 2008)
These magazines deliver readers with a high Station Past 7 days Ave day
income, and Brinkmann suggests that this
income stretches further than that of someone
living in Johannesburg, because comparatively,
housing costs are lower in East London and Port
Elizabeth. “I do not believe that the middle-class
market is more so or less so present in any
specific area – there is growth and forward
movement everywhere in SA,” says Brinkmann.
Outdoor advertising
The outdoor advertising industry in the Eastern
Cape is growing steadily. “With the previously
limited outdoor media channels available to
local as well as national businesses in the
Eastern Cape, the growth in the outdoor media Johannesburg, Cape Town and Durban. which attract consumers across all LSM groups.
industry in this area is providing a welcomed “This has changed due to advertisers now Positive factors include good transportation
solution for advertisers,” says Wall. He adds that seeking to gain a foothold in the area and with routes, diversified mix of retailers and service
outdoor advertising in the region is subsequently the municipality changing its view on outdoor providers, along with the rejuvenation of the
new, fresh and affordable compared to TV, advertising,” he says. Clients can expect a larger CBDs attracting consumers to the heart of
radio and print. Wall believes that the Eastern ROI than they might see in Johannesburg or cities,” says Wall.
Cape traditionally has not had good stock of Cape Town, thanks to the affordability of sites With economic pressures forcing consumers
outdoor opportunities due to the conservative and the comparatively uncluttered environment. to spend less on luxury items such as
outlook of the municipality and outdoor “Prime sites are those situated in the heart of magazines, Wall predicts that there will be an
advertising budgets being split between the cities of Port Elizabeth and East London, increase in the use of outdoor.

by michele venter-davies EXPERT OPINION
The marketing of
marketing
After a recent call-in radio show, I was forced an hour or so supplementing textbook learn-
to wonder, once again, how we attract the ing? Giving a few insights which fascinate so
right people to the marketing profession. The many – once they know what we actually do!
programme topic was The Importance of Good qualitative researchers make a living
Career Guidance and it was frightening to out of the ideas and input of the target
realise just how many scholars flounder when market. They have so much to say – and so
making subject choices in Grade 9, and again much to learn. On a small scale, I have had the
when deciding which career path to follow. opportunity to interact with schoolchildren,
Having spoken to many parents, diverse introducing them to case studies and getting
views were forthcoming. There are those who their input on the future of brands they relate
believe that career choice is determined to. To see them mesmerised by the basic facts
parentally – based on family background and about Wonderbra or M&Ms is rewarding. Their
cultural input (yes, there are still those who views on how vehicles and cellphones should
believe that girls ‘waste tertiary education’). be marketed responsibly are awesome. And yet
Many parents suffer from ‘I Should’ve these young minds are lost to other
Syndrome’. That is: ‘When I look back I realise professions because no one is really
I should have been a lawyer, plumber or marketing Marketing.
salesman and so that is what I am Many have stumbled into marketing or
encouraging Johnny to do’. And some who advertising by default. Several chose to study
couldn’t give a continental and leave their kids advertising because they genuinely believed
“
to find their own way or blame the school if that they were going to star in ads as a first step
Sophie brazenly wanders into the world of vice to becoming the new Halle Berry. Thousands
marketing (very profitable, I believe). PR is NOT downing opt for positions as sales reps as ‘a place to
The most thought-provoking view, for me, shooters with clients at start’ without realising the importance and
was offered by a gentleman who regards career potential of this crucial role in business. The pro-
guidance in any form as a load of *&%$#@ wet T-shirt competitions liferation of ’PR poppies‘ and ’event managers‘
because, after all, a “job is merely a means to bears testimony to the fact that hundreds are
and event management
an end’ and kids should realise they need to clueless as to the real value of these disciplines –
make a living and any old means will do. That goes beyond organising PR is NOT downing shooters with clients at wet
concerns me. I am sure there are relatively few T-shirt competitions and event management
people making money out of what they are
a dinner for three top goes beyond organising a dinner for three top
truly passionate about. But many saying ‘if only Party officials and their Party officials and their connections, lawyers
I had…’ or ‘I wish I could…’. Perhaps we could and hitmen.
connections, lawyers
”
institute a ‘job-swap’ programme – I am sure Perhaps marketing professionals could make
that for every plumber wishing to be a one resolution for 2008. Could each one contact
and hitmen.
hairstylist, there is a stylist itching to be a one school, business economics teacher, matric
mechanic or a mechanic born to pursue class, guidance teacher or one teen TV show and
medicine. A swap around would probably result go out there and market our profession – pas-
in every square peg fitting neatly into its little The OBE schooling system, despite its critics, sionately – so as to educate, entertain and pass
square hole. (Let me rethink that is geared to produce learners who are far more that passion on to the young, vibrant minds out
mechanic/stylist fit!) sussed when it comes to real-world functioning. there. They are the foundations of our brand
Bottom line, I come into contact with They have, for example, been studying the architecture for the future. Dare you!
many people who express an interest in basics of advertising and film production since
marketing, but aren’t sure exactly what it is. Grade 7. They know what an income statement
Michele Venter-Davies
There is the age-old confusion between and balance sheet are by Grade 9. The schools
marketing and sales; marketing and are pushed to their limits financially and, sadly, faculty head: Marketing and
advertising; marketing and public relations. No one of the areas considered a ‘luxury’ that many Advertising, AAA School
one outside the profession really knows exactly cannot afford is career guidance. What are we (011) 781 2772
what we do. as a profession doing to go out there and spend michelev@aaaschool.co.za

EXPERT OPINION by don searll
3D HD busts out
We are born with stereopsis – the brain’s 3D power products
amazing ability to instantaneously combine Window on world (WOW) 3D display products
two slightly different views into a single three are unrivalled in their ability to show powerful
dimensional (3D) perception of the world advertising messages on flat-panel plasma and
around us. Yet, up until now, most of our LCD screens. Images can be originally
media has been 2D. Finally, 3D technology is produced in 3D or converted from existing 2D
coming to the fore and changing the way we for our state-of-the-art digital signage. Global
see the world around us. brands have seen significant revenue growth
After years of false starts, 3D imaging generated through 3D screens, creating a
systems are ready to go mainstream with the more real experience and message, thus
advent of 3D autostereoscopic screens that enticing the customer
require no glasses. From cellphones to laptops Today there is a range of autostereoscopic
and monitors, the 3D boom is about to hit displays that can be used in applications
your eyeballs. 3D is moving across all media – ranging from advertising to scientific
cellphones, laptops, point-of-sale systems, visualisation. As the demand for such displays
corporate presentations, cinema, Internet and increases, the 3D HD and computer graphics
IMAX. The new 3D HD imaging technologies fields face the challenge of demystifying 3D
will help bring a new dynamic to the world of technology and simplifying the image
business, advertising, art, science and education, generation process by creating uniquely effective
and has already sparked intense debate. 3D 3D images. Volumetric displays illuminate
will also transform the public’s view of galleries points in a spatial volume. Parallax displays are
“
and museums, with virtual tours taking one the most common autostereoscopic displays
right into the buildings in which works are We saw the 2006 FIFA and are compatible with computer graphics.
housed and enabling one to walk around 3D digital cinema immerses viewers in a virtual
the corridors and to be inside the painting, World Cup Trophy Tour world filled with images so vivid, they can’t help
visualising impossible scenarios. This creates a but respond. Scientific studies have proven
(and tournament) filmed in
completely different view, one that is not conclusively that viewing in 3D results in deeper
available in the real world. 3D; this was a world first impressions, better retention of information and
A digital revolution on convergence has been a more memorable experience. Science aside,
the enabling technology for 3D re-emergence.
that opened up huge anyone who has ever watched an audience in a
Although technically very complex, a huge possibilities for 3D HD, live 3D theatre will see kids grabbing at thin air,
consortium of technological companies and while adults smile and appear mesmerised. There
action and animation.
”
producers are working together to bring this is huge growth potential in the digital content
powerful technology to the fore. and 3D markets. As of May 2008, 1 200 digital
3D displays have recently become both 3D cinemas will be open in North America and
increasingly popular and practical in the by the end of 2008 over 3 000 digital cinemas
computer graphics community. This interest can will have 3D capability worldwide.
be attributed to many factors. In our daily lives Cinemas across the Western world are
we are surrounded by synthetic computer converting to 3D, which will change the face of
graphic images in print and on television and advertising and the cinema experience. We saw
can now even generate similar images on the 2006 FIFA World Cup Trophy Tour (and
personal computers in our homes. We also have tournament) filmed in 3D; this was a world first
holograms on our credit cards and lenticular In the business of computer graphics, the that opened up huge possibilities for 3D HD,
displays on our cereal boxes. And has it really computational power now exists for desktop live action and animation.
been so many years since we first saw Princess workstations to generate stereoscopic image
Leia projected into thin air in the Star Wars pairs for interactive display. At the high end of
motion picture? With each new technology or the computational power spectrum, the same Don Searll
movie, the excitement seems to grow. advances that permit intricate object databases director
The developments in the computer graphics to be interactively manipulated and animated Haptics
industry have also done their part to make also permit large amounts of image data to be (011) 804 2468
spatial images more practical and accessible. rendered for high-quality 3D displays. dmsearll@gmail.com

PACKAGING
Pack it in
Packaging is no longer just the pretty paper that sustainable packaging is a necessity, and is
that covers your favourite cheese and helping packaging/manufacturing companies as
differentiates it from its neighbouring well as retailers to develop products and
competitor brand. It has the power to extend packaging that are acceptable.
the life of its contents, and maybe even call out Already, consumers in the UK and US are
to your customers from the shelves, with jingles. taking a stand against brands, products and
Packaging can change colour when its contents retailers that have not made a move to cut
are stale (or too hot to drink). And today, it can excess packaging from their products. Wal-Mart,
also help to save the planet. for example, has developed a Sustainable
Marketing Mix takes a closer look at the Packaging Scorecard. The retailer’s 60 000
impact that consumer trends are having on suppliers must provide substantial info about
packaging as well as how new technologies their packaging, and in so doing, are ranked
are taking packaging to places it has never against other such suppliers. It may not be long
before been. before local retailers initiate something similar.
According to John Gordon, director, Design
Going green Partnership Brandertising, the global food
Birds do it, bees do it. And now Wal-Mart is packaging industry is now worth US$100 billion
doing it. With the global focus on the a year and growing at a rate of 10 to 15 per
environment, and ways of preserving our cent each year. “Anything between 10 and 50 per
natural resources, the manufacturing and cent of the price of food today is for its packaging,” has the Europeans. “The green trend may not
packaging industries have come under fire. he says. He also refers to recent research have major consequence locally for some time.
‘Cradle-to-grave’ packaging (ie packaging that conducted in Europe, which found that UK From a manufacturer’s point of view, it requires a
ends up in rubbish dumps and landfills instead households produce the equivalent weight of lot of energy to make it happen,” says Maciek
of the recycling plant) is being booed by around 245 jumbo jets per week in packaging Michalski, head of design, Joe Public. “Brands are
consumers. Organisations are under pressure to waste. More than three million tonnes of the aware of it, but consumers aren’t pushing for it
make products and packaging in a ‘cradle- 26 million tonnes of household waste produced yet. They are more concerned with their health
to-cradle’ system, where the maximum value is annually comes from packaging. Meanwhile, and the ready-to-eat foods.” Look out for
extracted from existing materials, which in turn 150 million tonnes of packaging waste comes biodegradable materials, and soy or water-based
are recycled, re-used or biodegraded in an from industry and commerce each year. “These inks that will not damage the environment.
environment-friendly manner. The Sustainable figures are startling and the race is on to dimin- Petro-based chemicals will be shunned in favour
Packaging Coalition in the USA estimates that ish packaging to its utmost simplistic functional of corn and potato starch components. “Brands
worldwide, the packaging industry is valued at form. Yes, we most definitely will be following and stores will be jumping on the bandwagon,
around US$420 billion, and employs more than global trends in this regard,” says Gordon. but they aren’t explaining what biodegradable or
five million people. The Coalition acknowledges Locally, the green wave has not yet hit us as it recyclable means,” says Michalski. Some products
may promote their recycling processes, but there
are no recycling plants, so where does all the
recyclable packaging go? Brands will need to
address this holistically.
“All segments of the packaging industry,
especially food packaging, face environmental
issues. Yet packaging is integral to today’s
lifestyle. Nowhere would the loss of modern
packaging be more quickly felt than in the food
processing and distribution system. In
under-developed countries where packaging is
minimal or nonexistent, food losses of 30 to 50
per cent are not uncommon,” says Gordon.
Health kicks
With diabetes, hypertension and obesity
threatening developed populations, there is an

PACKAGING
increasing focus on healthy living. “South Choices logo, consumers will be able to identify Wine in a box
Africans are definitely health conscious, more so their favourite compliant brands,” says Maharaj. Distell has launched a new range of
after all the scares we have had around tainted Whilst the local branch of this international boxed wines – Wine on the Move – with
foods,” says Michalski. Foundation is still in the process of registering as the aim of making its wines more
Healthy school lunches are another trend to a Section 21 company, local brands in the accessible (consumers find wine bottles
watch out for. “But there is a major duality Unilever and Knorr stables have expressed difficult to carry, open and preserve).
here,” says Michalski. “You have to interest. And the good news is that there is a The good news is that the Tetra Prisma
communicate the health benefits to moms, but local board of doctors and scientists who will be packaging is 100 per cent recyclable.
at the same time you have to market to kids.” managing the foundation’s local branch; they “Twenty-five Tetra Prisma packs, flat-
Local draft regulations on food labelling and will report to an independent international tened after consumption, take up the
advertising will change the way foodstuffs and board, which sees a local doctor representing same amount of room as one empty
beverages market themselves. News reports are South Africa. “This Foundation, and the Choices glass wine bottle. Hence a quarter less
indicating that foods that have been claiming logo and labelling, are credible on their own,” truck transporting waste, which means
nutritional value and essential health benefits says Maharaj. “From a marketing point of view, less carbon emissions into the
will have to change their packaging and with health and wellness the fastest growing environment,” says Shelley Ellse, brand
advertising to show that they are, in fact, not development, Distell.
essential to a healthy diet. If these regulations,
proposed by the Department of Health, are
passed, fruit juices, iced teas, sweet biscuits,
cakes, desserts, fast foods, savoury snacks and
soft drinks will be affected. This is great news
for the consumer. But will these foodstuffs
survive once they have been labelled the
‘baddies’? Marketing Mix will provide updates
on the regulations as they become available.
Choices International Foundation recently
promoted the ‘Choices’ front-of-pack labelling
system, which sets a scientific benchmark locally.
“In South Africa, there is no one set of labelling
criteria across different companies. There is also
no standard nutrient profiling. The Choices
system is the first to set nutrient benchmarks
that brands must comply to,” says Ruksha
Maharaj, Choices SA programme coordinator. It
will help consumers to make healthier choices,
especially because they make purchasing sector globally, brands who sign up will naturally Middle East called CHUE (Choose How U Eat).
decisions within a few seconds and need this have a better reputation amongst consumers. “We literally turned things inside out with the
info fast. Research has also shown that And they will innovate in line with the criteria.” packaging and had a lot of fun with it. Usually,
consumers often find current labelling systems most brands would cover their packaging on
confusing, and this system will address this. The It’s about what’s inside the outside with creative visuals or slogans
Choices system will be supported by a strong Marketers could be using packaging in a more indicating what is inside. Usually what is inside
marketing and educational campaign, which holistic way, says Gordon. “To touch on as many is a burger in a grease-stained interior – a burger
“
coffin.” They decided to play down the exterior
of the packaging and deliver the final brand
Story telling is important, because humans relate to punch on the interior. Hence, the burger clam,
once opened, literally became a ‘visual feast’.
this. The brand story should be on the front of the label Michalski believes we will start to see more of
and it should encourage the consumer to slow down this locally, especially because we have a large
”
‘ready-to-eat’ market. Look out for fast-food
and engage with the product. packaging that is more appealing and functional.
“Food tastes better when it’s eaten from well-
designed packaging. Sophisticated consumers
will see everyone from marketing executives at of the senses as possible to get the brand well will pay more if they get better packaging,” says
major brands, to dieticians and even the man represented on the shelf, good packaging is an Michalski. He adds that South Africa has the
on the street learning more about Choices, and all-round experience,” he says. potential to be a leader in the design of packaging
what it means for health and wellness. “And The Design Partnership was recently involved that addresses the needs of the ready-to-eat
because product brands are integrated with the in the development of a new brand in the market, especially amid the global focus on

PACKAGING
simple packaging that allows for greater and lifespan of fresh produce, decreasing
portability of food and personal items. “The product loss in both the home and supermarket.”
packaging experience should be clean, protected, Tiny fractures in the packaging allow the
attractive, promise good flavour, usefulness, produce to manage its own atmosphere, and to
convenience and no worries about contamination. hibernate effectively. It is hoped that this new
These attributes will win consumers’ hearts,” packaging will reduce food waste.
says Gordon. “A bioactive paper has recently been developed
overseas which is attached to the food packaging
Long life on either the inside or the outside to indicate
Parallel to the concerns about the environment the substance’s lifespan or any other problems.
and our health, is the focus on food and product This strip of bioactive paper could be creatively
waste. “New research projects are underway in standard film mix, allowing produce to manage incorporated into the packaging as a visual food
the UK to extend the storage life of fresh the atmosphere within the packaging,” says lifespan monitor,” says Gordon.
produce by including natural additives in the Gordon. “This will greatly improve the quality
Packaging that talks…
New technologies could see packaging talking
Unwrapping South Africa’s ethical consumers to the consumer. Gordon points to overseas
Added Value has taken a closer look at South African consumers and ethical packaging, company MedivoxR, which has developed Rex
and has identified four major mindsets that are influencing the way consumers make the (disposable) Talking Bottle. This bottle plays
choices (see Marketing Mix, vol 25, issue 9/10 for a broader explanation; Ethical consumers back medication dosage information to visually
under the microscope). These are not mutually exclusive (consumers may show different impaired patients; the message is either
degrees of each), but there is usually a dominant mindset. This will usually determine pre-recorded by the pharmacists as they type in
whether their mindset is driven internally or externally. We examined how these mindsets label info or by patients themselves, by means
inform consumers’ choices when it comes to packaging. of the Rex Starter Kit (includes a special
Empathising: The main driver is the show of solidarity (making small differences in the recorder). The microelectronic technology in the
worlds of others). This is a strong mindset locally. These consumers want to feel proud, bottle allows only the user to record or change
empowered and engaged; they respond to fair trade produce and donating to charity, the prescription info. A button on the side of
so these should be made clear on packaging, without dominating branding. Also, the bottle replays the message. “Wouldn’t it be
educational messages should be included to help the shopper make the ‘right’ decision. cool if Smarties, for example, came in a container
Campaigns that involve the consumer work well (eg, the brand donates a portion of that started telling jokes when you opened it,
spend to charity). and warned you when you only had a few
Healthy Awakening: Choosing healthy for the good it does the individual, society in Smarties left?” says Gordon.
general and the environment. This is a relatively strong mindset locally (especially because
concerns over diseases like HIV are driving consumers to accept responsibility for their own Watch this space
health). These consumers want to feel pure, healthy and holistic, and respond to safe, Other trends to watch out for include clever
healthy alternatives, including organic or super foods. They will read labels and look for packaging (innovative designs or the use of
information about ingredients, key health benefits and customer care line details. Opt for non-traditional packaging materials). Although
clear packaging that shows off the ingredients. For mums, safety is a key concern as well as it may be the smaller brands who lead in this
something that’s interesting and exciting for their children. Artificial colours or over-styled trend, as they are more likely to experiment.
photography should be avoided. Do not over-claim or use pharmaceutical language. Sarita, a new alcoholic beverage, has taken its
Ethical Way of Living (EWOL): Choosing ethical as a way of life, so it informs everyday consumers’ needs to heart. Ring-pulls make
decisions and lifestyle. This is an emerging, very niche trend. These consumers want to feel these bottles easier to open, and are therefore
disciplined, involved and proactive. They will pay a premium for ethical products. ideal for women.
Recyclable packaging is key (especially if it educates the consumer and makes recycling Michalski predicts that we will see more use of
easier for them, through, say, partnering with recycling centres). The full packaging chain locally made packaging materials for import items,
must be considered. Sincerity in talking about less packaging is key, and don’t as this reduces the cost to the environment.
‘greenwash’. Concentrated formulations and refills are great options. Charge a premium Single servings could also find firm footing in
and be aware of the power of this mindset in terms of word of mouth. developing markets; look out for brands
Ethical badging: Choosing ethical because of the image it projects of being trendy and experimenting with this, says Michalski.
noble. This mindset is strong locally, especially among those who have succeeded and And then, look out for design that brings
want to be seen to be ‘in with the leading-edge tribes’. This consumer wants to feel savvy nostalgia back into the mix. “Story telling is
and stylish and like they are keeping up with trends. Opt for high quality, premium important, because humans relate to this. The
packaging that reflects how the customer wants to be seen. Celebrity endorsements are brand story should be on the front of the label
ideal; secondary wrapping (the shopping bag) is also key in showing others that they have and it should encourage the consumer to slow
shopped ‘premium ethical’. Display appeal is also relevant (it must look good in their down and engage with the product,” says
homes), as is innovative packaging. On-pack promos are seen as tacky. Brands must be Michalski. Customised designs (for example,
widely acknowledged to stand for something, as this consumer gives publicly, not privately. Christmas designs) are another great option.

EXPERT OPINION by jean-claude latter
Keeping track of your incentive

programme strategy
You’ve decided your company needs to run 4. Analyse and apply the data
an incentive programme. You’ve expended Collate and analyse the data you’ve gathered so
considerable time, energy and resources they can be translated as quickly as possible into
analysing your current situation; defining how it tactics and strategies for improvement and
can be improved; and designing a programme change to your programme design.
to ensure that improvement happens. Points one and two are typically built into the
Now what? initial programme structure, while points three
Once an incentive programme is operational, it’s and four are concerned with what needs to
tempting to sit back and watch the results roll happen once your programme is up and
in. In fact, many organisations do just that ... running. It’s also at these points that many
only to find that the figures don’t live up to companies start to understand the implications
their expectations. of managing an incentive when they’re faced
Why? with the task of gathering information and
Because unless a company analyses the results sifting through it to find what’s relevant.
its programme generates and finds out whether
it’s delivering on its promises, its Going electronic with your data
well-planned initiative quickly heads down a fast analytics
track to nowhere. Sadly, the only results this An increasingly useful tool for collecting and
approach generates are wasted time and collating diagnostic information is a centralised,
money, and a firm commitment from online strategic diagnostic system that monitors
management that ’we’re never doing that again‘. and reports on performance, satisfaction,
According to Fortune, nine out of behaviour, systems and trends across your
“
10 companies never fully follow through on employees, channel partners and customers.
their strategies. There are several applications on the market –
An increasingly useful but you’ll need to choose one carefully to make
So how do you keep your incentive tool for collecting and sure that it does what it says. Rule of thumb:
programme on track? look for an application that offers the following
Start with these four practices and you’re off on collating diagnostic capabilities:
the correct footing: Needs and impact analysis, and assessment
1. Practise organisational alignment
information is a centralised, tools
All operations, behaviours and activities, no online strategic diagnostic Flexibility to monitor and measure diverse
matter who’s doing them or when, should be criteria
aligned to support your vision, mission and
system that monitors and The ability to customise surveys that fit with
values. That way you know that everything that reports on performance, your organisation
happens in your organisation helps drive your Demographic filtering
programme strategy. satisfaction, behaviour, Benchmark/target scores for comparison
2. Define your performance measures and ongoing performance management
systems and trends across
Your programme should be measuring your Real-time reporting
employee and company performance against your employees, channel Controlled login to ensure all information is
”

set objectives that tie in with your overall kept confidential

performance objectives.
partners and customers. Full integration with your existing systems.
Once your programme is operational, you’ll
need to measure it regularly to track improve- As you can see, developing a strategy for
ments and changes. your incentive programme is one thing. Keeping
3. Conduct surveys and dialogue
Establish an ongoing dialogue with your Jean-Claude Latter
employees, channels of distribution and sales director
customers to find out how you’re doing, how Achievement Awards Group
your programme is doing, and what they feel (021) 700 2400
about your company and brand as a result. jeancl@awards.co.za

by nicci columbine EXPERT OPINION
Effectively managing a
brand through a call centre
In South Africa’s growing economy, where Marketers can in turn assist agents to
there is still a high dependence on voice understand the profile and demographics of
communication, call centres are vital to customers, what their interests and needs are
consumers to obtain information and support and, if data provides it, what drives their
with service queries, make bookings and also to response to the company’s brands. Marketers
facilitate financial transactions and manage should work with agents to more creatively tap
credit. Yet, according to local dipstick surveys, it into the opportunities that call centres present
is perceived that call centres (whether in or to communicate a stronger positioning about
outbound) do not render a satisfactory and company to the customer during the
experience. What is more important to engagement over the telephone.
acknowledge is that customers associate a Call centres are also an essential vehicle to
negative service experience with a company’s launch a product to market and run promotions
brand rather than with the call or contact for clients, thereby providing a conduit to
centre. Research confirms that poor customer revenue streams for companies. In this regard, it
satisfaction is the most instantly determining is vital for marketing and, indeed, sales, to work
factor influencing brand reputation today. cohesively with the call centre to monitor both
“
In a globally competitive market, where price statistics and customer feedback. Marketers are
and availability of goods has somewhat blurred sometimes guilty of not fully briefing call centre
corporate differentiation, customer service Likewise, hellopeter.com managers about a new campaign and providing
remains one of the few areas where a company is a service monitor such information at short notice, impeding call
can establish a competitive advantage and centre managers’ ability to adequately brief their
achieve differentiation for its product or service website that publishes teams on new campaigns and how these relate
in the mind of the customer. Given the role to the overall market position of the company’s
that call centres play in the customer service
customers’ ratings and brand. This can be challenging for both
supply chain, it is no longer adequate to ensure comments on companies marketers and call centres alike, creating
that service is readily accessible, consistent and challenges for agents to deliver effectively which
fulfils a basic level of response to queries from
and their poor or good may affect campaign results.
customers. service, including that of Unfortunately, all too often customer service
”
Companies must take the necessary measures does not meet customer needs, and therefore
to ensure that their call centres are used as a call centres. the brand that a company may have spent a
vehicle to positively and consistently meet large amount of marketing budget and
customers’ needs, while also delivering their time on to establish a certain market position,
desired brand proposition to achieve good service, including that of call centres. This will fall short of expectations and the
differentiation in the market, time and time direct feedback certainly puts companies in the company’s credibility can so easily be eroded
again. A call centre can have a significant impact picture about how customers regard their service. as a result.
on customer loyalty, based purely on service quality. Marketers should play an integral role by As shared in the previous column, a higher
Reading a regular survey conducted by Ask working together with the call centre to deter- level of collaboration between marketing
Africa published on www.finweek.co.za, which mine how a company’s brand is communicated departments and the call centre would build a
rates companies according to the customer service to the customer, and also what feedback the stronger foundation to add value to customers
provided by their call centres, the customer’s customer is providing about the company’s and help companies become better informed
experience, impacts on their satisfaction with a products and services that can assist marketing about customer needs and expectations and
brand. Time taken to answer a call, ability to to respond to the market more appropriately. thereby market their brand more intuitively.
understand and answer a query, knowledge of Irrespective of whether a call centre is captive or
the product or service, resolution of the query and outsourced, it should be regarded as an
courtesy of agent are rated as the most important essential barometer that provides marketers Nicci Columbine
factors that influence callers’ satisfaction. with early warning signals about service managing director
Likewise, hellopeter.com is a service monitor complaints, which can be tackled directly with Columbine Communications
website that publishes customers’ ratings and customers before they become issues and (011) 880 8137
comments on companies and their poor or impact negatively on a company’s reputation. info@columbine.co.za

Marketing at-Retail Workshop
20 May 08
Sandton Sun Hotel, Johannesburg
The workshop will focus on best practices across the full spectrum of
marketing options and activities relating to the retail environment
Building your Brand in a Retail World Enhancing Customer Response through Digital
Sue Evered, Strategy Planner for Saatchi & Saatchi, will focus on the Retail Media
marketing discipline developed by Saatchi & Saatchi to deliver Roelf Venter, Marketing Director of Spar, will discuss his experiences
sustainable results; she will draw from their international experiences with the first comprehensive retail digital network installed in SA.
and relate this to the SA environment. Roelf will report on the results and the lessons learnt to date.
His digital partner Mike Bosman, CEO of One Digital Media, will
How to Select Alternative Media demonstrate some innovative content applications to stimulate
Geoff Whyte, Marketing Director of Cadbury’s, has developed a shopper response.
methodology to select and weight alternative media and to integrate
into the brand communication strategy. Geoff will show you Best Practices in Digital Signage Technology
examples of some really clever communications. The technology underlying digital signage is crucial to the success
of an investment into a retail digital network. In an environment
The Best of In-store Marketing populated by a multitude of technology vendors, what are the key
Lucien D’Avice, MD of Barrows, will explain how to transform the evaluation criteria that retail network builders should keep topmost in
store into a measured medium, and based on the latest MARI result, their mind when selecting a technology? What are the best practices
will explain how to use insights for category plans, and how to of a sound technology driving a digital retail network? How do retail
develop flexible and effective platform strategies to achieve maximum digital signage business models intertwine with technology models?
retail results. He will also provide specific examples of successful Chander Nijhon, Head of the Enterprise Division at Apple IMC,
POS promotions. Southern Africa will take us through this.
Creating a Buzz Pick n Pay’s Media One Stop Shop

Xolisa Dyeshana, the Creative Director of Joe Public, and a recent Craig Lodge, National Trade Marketing Manager, will explain
judge at the John Caples Awards in New York, will demonstrate some Pick n Pay’s plans to create a one stop media shop, which will
leading edge promotions which create real buzz and suggest exciting facilitate brands in accessing the wide range of in-store media
applications in SA. available in Pick n Pay. He will discuss the role of digital media within
this context.
Competitions, Prizes and Couponing
Nnaniki Malesa, Primedia InStore, will guide you through: Mobile Marketing at Retail
• How to gain response from competitions: the prizes and incentives It’s the next big thing in marketing and Chris Rolfe, CEO of Mobilitrix,
that work, the media that works, how to track will review a range of innovative solutions utilising mobile technology
• The case for couponing – what works, the ROI justifications and integrating it with the total POS marketing landscape. Chris will
• Vouchers, marrying print and mobile. review mobile e-voucher solutions, direct marketing techniques and
the value of the mobile channel in the emerging market.
Retail Advertising Best Practices
Gill Randall and John Bowles of the Newspaper Advertising Bureau Pricing
(NAB) will report back from the annual Retail Convention in Chicago A full day workshop
about the best uses of retail advertising; they will draw from trends R2 650 per delegate (plus VAT)
and research in the US market, and will also discuss what works and Three or more delegates, R2 250 per delegate (plus VAT).
what doesn’t for retail advertising in the USA and elsewhere.
Enquiries: Daisy Mulenga, daisym@systems.co.za (011) 234 7008

Sponsorships available: Robyn Richen, robynr@systems.co.za (011) 234 7008
MOBILE MARKETING
ew &
N ive
lus
Exc ou!
for y
Mobile
marketing
The cellphone is perhaps the most personal, 2007 the proportion was 24 per cent (AMPS
private gadget around (aside from say, a 2003, 2007). This makes the cellphone the most
pacemaker), and it rarely leaves your pocket or powerful personal digital medium around, with
your handbag. And yet, it is equipped with a marketing potential that is astounding.
myriad of media and communication technologies, “Cellphone marketing is the next big wave. I
making it a very powerful media device. “The think it will be bigger than Internet marketing
cellphone was one of the first electronic fashion and that it will have a similar percentage of use
“
as other digital media have in other countries
(about five per cent),” says Tim Legg, CEO,
Locally, brands must get involved in this now Opera Interactive; marketing director Edward
Wicks, says that while hit rates on mobile ads
and try it. It’s simple now, but it will become
”
remain fairly low, it is high when compared with
more and more complex. Antonio Petra, the online environment, Locally, estimates place
the worth of cellphone marketing at anywhere
Action Ambro’s. between R1 billion and R2 billion. On a global
scale, advertising spend in this sector is set to
items, which is what drives the majority of increase from the current US$1 billion a year to
consumers to have the latest and greatest $8 billion in 2011 (emarketer.com, November
handsets,” says Antonio Petra, digital director, 2007). “We believe that by 2011, the mobile
Action Ambro’s. media market will be at four per cent of ad
Relative to other countries, local cellphone spend. At this rate, it won’t cannibalise
penetration is high, with experts placing it at traditional media, but it will still be in the
around 90 per cent. Eighty20’s Fact a Day billions,” says Rick Joubert, executive head,
reports have indicated that in 2003, 60 per cent Vodacom Mobile.
of households did not have a cellphone. In Russell Atkins, managing director, Thumbtribe

MOBILE MARKETING
Mobile Solutions, says that South Africa has just but the technology is there,” says Legg.
over 40 million subscribers, with an active So a consumer can view an ad, and use their
installed handset base of just over 30 million. cellphone to access a mobile site or Internet-like
According to Chris Rolfe, CEO, and Andrew WAP portal instantly, where they will find more
Cardoza, CTO, Mobilitrix, the number of cellphone info about the product or service and even
users is set to grow by 15 per cent over the next experience branded content; they can then
few years. respond to a call to action, by booking a test
Cellphone marketing offers marketers great drive via SMS, for example, or clicking to
reach. “It overcomes many of the hurdles that redeem a discount voucher. Consumers can also
we are presented with in South Africa, such as register (and give you their details in the
lack of fixed address and low Internet penetration,” process) and opt in to receive additional info
says Petra. He goes on to say that the cellphone or content. “Brands can give value back to
is the ideal tool for reaching the growing consumers through ringtones, wallpapers and
middle class, and equipping them with digital more products and services. Fifty per cent of
connections. And, of course, it delivers access cellphones in the market are enabled for this
to a youth market that is not lured by media. That equates to 15 million phones,”
traditional media. says Legg.
Why are marketers still hesitant about this Cellphone technology allows for location-
medium? Petra has found that many clients still based segmentation, efficient targeting and
don’t really understand the medium and the filtering. “Mobile media has the potential to be
plethora of tools and options that it delivers. highly targeted, not just in terms of
“I think the greatest hurdle for advertising demographics, but also in terms of time and
agencies is that of perception. When I present location,” says Atkins. After all, as Joubert
mobile advertising products and opportunities, points out, each cellphone number is unique
I often find that the clients look at them from and allows for individual tracking. Increasingly,
their own context and judge them as having the networks and ad services are using this as a
little or no value. The primary fault with this
perception is that they are not the primary users of
these products,” he says. There is no blueprint
for how cellphone marketing works, says Legg. Location-based segmentation
“As usual, people are scared to move to a Antonio Petra, digital director, Action Ambro’s, argues that location-based segmentation
platform that is not very well understood and/or is still under exploited; while there are some products and services which make use of
‘tangible’. When you are advertising through a the technology, there are still glitches which need to be ironed out. He points to the
mobile platform, you can’t drive down the Socialite platform in the US, which used location-based segmentation to send its
highway and see your billboards on the side of members information about happenings in their surrounds, but did not allow
the road, so your initial feeling is that the members to select what type of content they received, so they received messages that
marketing has been ‘lost’. Only when the hits were irrelevant.
start arriving, is it very visible just how effective Locally, Vodacom has launched The Grid, a location-based blogging service
it is,” says Philip Belamant, managing director, which is free (ad funded). Users upload content to The Grid (video, pics or text),
PBel Mobile Gaming. where it is geo-tagged and then shared with a private network of users who are
So what exactly is on offer to marketers? The interested in events and info relating to that particular location. “We have launched it
means of communicating to cellphone has not to the universities and will be rolling it out nationally,” says Rick Joubert, executive
changed much (SMS, MMS and Bluetooth head, Vodacom Mobile.
technology is not new). But cellphones have
evolved and are now capable of carrying
hyperlinks that take the user directly to a means to profile their entire subscriber base in
website or portal; or links that allow them to order to deliver ever better targeting and
click-to-call or click-to-reply. “As a portable segmentation and to track call patterns, for
medium the cellphone is an ideal bridge example. “It’s really clever. Other media can’t do
between digital and physical worlds – allowing this,” says Joubert. He points to other options
consumers to receive a brand’s message and such as storyboarding (where a series of ads are
then act on impulse at a point of purchase and displayed in a sequence), handset targeting and
in a very localised manner,” says Atkins. even context-relevant targeting.
And then there is the delivery of bar codes Further benefit to marketers is that cellphone
and vouchers, which will change retail marketing marketing allows for time targeting and
forever. “Stores still need to update their frequency cutting, which limits the number of
point-of-sale systems to accept mobile vouchers, times that each subscriber will view an ad

MOBILE MARKETING
message. Ensuring that your messages don’t create new communities around new niches. In
wake your target consumer at 3am is becoming fact, Facebook announced recently that it has
increasingly important, not only from a branding launched Facebook for Mobile Operators, which
point of view, but also because consumer is designed to make the site’s social networking
protection legislation is calling for more responsible applications work better on cellphones.
communications. “Don’t abuse the ‘always on’ Operators are given the set of technical
opportunity. Make sure you reach people at the specifications which resolve usage glitches on
right time and in a way that is relevant to cellphones. Facebook Mobile (which until now
them,” says Atkins. was the platform’s unsupported mobile site) has
6 million users; it is expected that Facebook for
Mobile Operators will grow this mobile user
Please Call Me base. As yet, there is no advertising on this site,
The local Please Call Me services are powerful tools for reaching a large base of though operators will generate revenues when
customers. “I don’t think many clients realise how many people the Please Call subscribers access Facebook.
Messages reach every day. There are 18-20 million messages sent daily across all the Mobile gaming is a lesser exploited option
networks,” says Antonio Petra, digital director, Action Ambro’s. Recently, an insurance which could fast gain ground. PBel Mobile
company used this platform, at a cost of R11 000; the campaign raised R139 million Gaming launched recently in South Africa. “We
worth of leads (all of them valuable because the company had charged a premium have been running for one week, and already
reply SMS fee of R2.50, which acted as a filter). Vodacom’s targeting may soon enable have 300 users. We are getting between 700
marketers to tailor the Please Call Me messages according to demographics. and 800 transactions each day,” says Belamant.
Users register and download an application
which allows them to download games, upload
Instant feedback and measurability mean their scores and interact with the gaming
that marketers will know straight away if their website where they post messages for fellow
campaign is not hitting the mark. “The cellphone gamers. Gaming takes place off line, with prizes
is a real-time response mechanism,” says Joubert. for top-scorers. So what’s in it for marketers?
When creating a mobile campaign, “Every time a player connects to our server, it’s
entertainment is key – the modern cellphone is an opportunity for us to stream an ad to their
designed for this, after all. Consider Vodafone phone,” explains Belamant. These can be text
Live! and its huge successes, especially in ads or full-screen splash ads (which remain
targeting consumers aged 18 to 34. “In terms on-screen until the game has loaded – the
of value for money, this site has the best real gamer can’t ignore them the way they might
estate around at the moment,” says Petra. ignore an online banner ad).
Other entertainment media worth exploring Custom development is also available where
include music, downloadable content, gaming marketers can create a form within the
and social networking or messaging. “Several application, which allows the gamer to enter
brands have taken advantage of the potential of their details and, say, click to book a test drive;
sponsored music – Coke and Pepsi as two their enquiry is immediately forwarded directly
examples, and others have distributed advertising to the advertiser. Every time the gamer clicks
within mobile games,” says Atkins. Marketers through to a new screen or page, the ad
should keep in mind that, while the cellphone is changes. According to Belamant, the trick is to
a very personal device, it is a social device. have a short and sweet ad message that won’t
“Brands need to find ways to enter this be ignored. The system allows for segmentation
conversation in a relevant and compelling way,” and targeting, so marketers can be selective
says Atkins. about who sees their ads. Reporting is also
Some brands are sponsoring mobile chat available, so campaigns can be tracked and
environments or events, for example. “This is measured. Belamant estimates that currently,
tricky, so brands need to be careful to involve half of the gamers are females; general gaming
themselves in a relevant way – negative word of trends usually indicate a 70 per cent male bias.
mouth spreads more quickly than positive,” says “Our core target audience is between the ages
Atkins. Consider MXit, which has set a of 15 and 23 years,” he says. Brands such as
phenomenal standard, simply because it has cellphones, electronics and other downloadable
leveraged the need for a cheap messaging content services would do well to get involved
service. The platform boasts around six million in this medium; giveaways tend to incentivise
registered users, sending about 200 million higher click-through rates.
messages a day. Experts are predicting that Mobile television and video are seeing major
other such offerings will enter the market and growth in the US; eight million mobile users

MOBILE MARKETING
watched video on their cellphones in

August 2007, according to a report by
M:Metrics; nearly seven million watched
viral videos. In Europe, research firm
Datamonitor has estimated that in 2012,
there will be almost 43 million mobile
broadcast subscribers. If we are to follow
these trends, we could soon see an
explosion of content designed for mobile,
especially as carriers and handsets
improve, and the quality of viewing
attracts greater audiences. Locally, DVB-H
trials are still being carried out.
According to Astrid Ascar, general
manager: Product, DStv Mobile, the
local trials have seen a general trend of
viewing from around lunchtime,
through the afternoon and peaking at
night, with a surprisingly large number
of mobile TV viewers watching
in-home. The bouquet of channels is
rotated on an ongoing basis, so there
are no trends relating to viewer
preferences as yet, but preferences
depend on the user’s profile.
“Understanding that one has a segmented
market is key to designing a content offering,” can expect to see more of in the next few
says Ascar. Some content will perform better if years. “Savvy marketers have moved beyond
broadcast like traditional TV content (think live interruptive communication and now offer
sport); while other programming performs consumers more ways to interact with and
better in 30-second format (think sports contribute to the brand experience – allowing
highlights). Petra believes consumers will go for consumers to submit their own brand experiences,
short, easy to access content, especially news or even produce advertising on behalf of
and sport. “For marketers, it’s about finding brands,” says Atkins.
content that is relevant for the user and Real time push messaging services are another
associating one’s brand with that content in a hot tool. iMob has built its business model on
way that appears personalised and relevant to a this principle. Users register, download the free
user,” says Ascar. JAVA application to their cellphones and set up
Broadcasters and marketers will need to work their own profiles, selecting what sort of
together to fit this platform into campaign information they want to receive. Currently, the
plans, and then get accurate, valuable reporting content selection is around real time events and
metrics; once the value of the platform becomes directory services. Once activated on the user’s
self-explanatory, marketers can offer clients phone, the application polls the server every few
targeted campaigns that aren’t generated off a minutes and pushes the correct profile-matched
rate card, says Ascar. news to their phone, explains Nick Herbert,
With the current cost of access, analysts business development consultant, Opera
believe that uptake of this platform will be slow Interactive. “The service is also being reviewed
until access and technology become mainstream for stock quotes, flight schedules and most
and more affordable. What’s also raising other time sensitive businesses,” he says.
concerns is the fact that the cellphone has Targeted splash ads appear in between menu
evolved to deliver TV far faster than legislation info requests, and are interactive. This service is
anticipated; it remains to be seen what ICASA currently in the beta-testing phase, but the
will do around the issue of whether iMob team is working to build the user community,
DVB-H-enabled phones will require TV licences and according to Herbert, the 30 000 user mark
of their own, for example. is expected to be the tipping point for serious
User-generated content is another tool in the advertisers (it currently has around 600 users).
cellphone marketer’s box, and one which we “Our aim is to build a loyal mobile community

MOBILE MARKETING
Spam and Scam “It will be a CPM model until the community
Spam and scams continue to be an issue, with a handful of unscrupulous players out grows to 30 000 USERS and then we can offer
to make a quick buck. According to Tim Legg, CEO, Opera Interactive, legislation such click-model pricing,” says Herbert.
as the Consumer Affairs Act are making it more difficult for marketers to charge Cellphone marketing is highly effective as part
people for entry into competitions. “Some people will use SMS to enter competitions of an integrated campaign, where it can really
to make money, sometimes with no prizes at all. My advice to any client who wants take ATL and BTL further. “If your SMS campaign
to use this mechanism is to use it intelligently. It must be totally transparent,” says is a stand alone campaign, it must be brilliant.
Antonio Petra, digital director, Action Ambro’s. Advertisers who try to trick consumers Via cellphone, you have a very short time in
into divulging their personal info or grab these details from return communications which to engage the consumer with your
will be rejected, says Andrew Cardoza, CTO, Mobilitrix. marketing message,” says Petra. Also, remember
And while the Electronic Communications Act and the WASPA guidelines are in place, that this environment is all about impulse
these are not exhaustive; the industry must self-police, says Petra. Quite simply, this behaviour and instant gratification, says Atkins.
technology is developing so rapidly that legislation just cannot keep up. Cellphone marketing is set to grow
exponentially this year, not only in South Africa,
but across the African continent (where it is
and then target users according to their age, estimated mobile networks will be extended,
location, gender and content interest levels, thanks to investments of around US$50 billion).
with useful advertising messages. Adverts “Some brands are already on board and are
will focus around coupons, loyalty and doing amazing things,” says Joubert. “All are
special discount options,” he says. The coming back after doing a first, experimental
platform will also benefit from the viral campaign with bigger and bigger budgets, so
aspect (users can refer friends or pass on we know it’s working.” Much of Vodacom’s
the alerts via email forwarding. Ad metrics inventory is sold out, which is a good sign that
are easily tracked and it is hoped that the cellphone marketing is taking off.
service will add Google AdSense for The future of cellphone marketing will see
Mobile Text Ads locally soon (the search greater use of the various platforms and
engine giant announced in September products, as brands seek to snuggle up with the
2007 that it had made AdSense for consumer on their terms. Petra looks ahead to
Mobile available, created specifically for the third phase of mobile marketing, in which
mobile browsers). “We suspect that free content and services will be delivered to
sport will be the biggest driver for consumers in exchange for ad views. Blyk, an ad
downloads in 2008,” says Herbert. It is funded mobile operator in Europe, is one much
expected that advertisers will pay publicised example of this model, which offers
between R5 000 and R50 000 for users free airtime minutes each month, on
advertising on the platform, depending condition that the user views a certain number
on the size of the user base, plus of advertising messages. Petra believes this
other channel sponsorship options. model will find firm support locally, where some
markets don’t have the money to buy airtime.
He also believes that, moving forward, we
“
can expect increased focus on topics that
include restricting marketing to children via
Savvy marketers have moved beyond interruptive cellphones (asking for an ID number, for
communication and now offer consumers more ways to example, in the registration process) as well as
more refined permission-based campaigns,
interact with and contribute to the brand experience – especially as consumers become more
aware of their right to privacy and protection.
allowing consumers to submit their own brand experiences,
”
“Response rates for untargeted push campaigns
or even produce advertising on behalf of brands. are dismal, and they are potentially damaging
from a brand reputation perspective,”
Russell Atkins, Thumbtribe Mobile Solutions says Atkins.
Marketers can no longer afford to shuffle
their feet on this one – the time to learn and to
implement cellphone campaigns is now.
“Locally, brands must get involved in this now
and try it. It’s simple now, but it will become
more and more complex,” says Petra.

EXPERT OPINION by marc spriestersbach
A new era for

bell ringing?
There was a time when shop owners would anymore – they cannot command desire or
stand outside their stores and ring a bell to response. Customers now have access to an
announce that they had special wares on offer. unprecedented amount of information and
If you go downtown to where real trading still can communicate from any place, any time
occurs, you will find similar scenes even now. they choose.
Except that the bell ringers have been replaced As media fragments, so does the ’mass‘ in
by loud ghetto blasters and ’town criers‘ soliciting mass marketing. Having said that, there is a
potential customers to visit their store. Crude caution that this may be a First World
perhaps, but no doubt effective. phenomenon which we will have to keep an
Similarly, in the early days of marketing it eye on as it is rushing ahead at an astounding
was accepted that the more you rang the bell pace. I say this as currently there are around
at the right times, the more you could command four million Internet users (so I’m told) and the
desire and buying behaviour through the growth seems relatively slow, but it is quite
brand alone – and it was through this remarkable when you consider the growth in
’advertising‘ that you could build brand success. mobile telephony! So we may continue to
This gave you control over your audience. need some mass market bell ringing for some
That, however, was in an era when time, as it is still the most accessible form of
traditional media choices seemed to have communication to most of our market.
reached a plateau. For some time there were The window that emerging media has
few real alternatives to the Big Four: print, opened for us communicators (talking to those
outdoor, radio and television. Sure, the who have access to new media), reveals a personal
localisation of media (the local paper, regional experience economy in which customers are in
“
radio and so on) allowed us to target control and where brands are accepted on the
consumers more precisely. But this seemed to be basis of a personal experience. So no matter
the limit in reaching the consumer closer to Interactivity has what we tell them through bell ringing we have
home, while for those who could afford it (the to make the brand experience a more rewarding
mass market) a national brand campaign was
changed the nature of and meaningful one to gain loyalty – in essence
still the weapon of choice for mass exposure. In marketing and marketers more experiential and even tactile.
short, it was a lot easier to reach consumers Interactivity has changed the nature of
who reacted to this heavyweight communications
must now reach beyond marketing and marketers must now reach
approach by buying the most heavily advertised their traditional roles of beyond their traditional roles of raising awareness.
”
products and services. Simple, really. They must drive traffic into an extended world
So we were ill prepared, to say the least, in raising awareness. of intimate interaction in sales and customer
anticipating the full effect of the explosion of relations. This means that the advent of ’permission‘
new media options on consumers and their marketing will become as important in some
need for information. We responded by delivering dialogues as general bell ringing in others.
even more messages across ever more media to
even more audiences, creating a deafening
cacophony of marketing hype. Was this the Marc Spriestersbach
beginning of the end of mass marketing? managing director
In part, yes. This emerging media is shattering Publicis Johannesburg
behaviourist marketing tenets and proving that (011) 519 1800
businesses are not in control of the strings mspries@publicis.co.za

COMMUNITY MEDIA
Community media still tops

Community media has been experiencing newspapers will level out this year as media
explosive growth, with more and more advertisers houses seek to consolidate the ground they’ve
clambering to get on board. gained, rather than launch new titles.”
The question is, will this growth continue? Yet the quest for consolidation is not the only
And how will these media cope with the factor that is impacting on these media. Thanks
challenges imposed by the economic downturn? to the economic pressures imposed by the new
credit act, steep interest rates and inflation,
Newspapers: publishers expect 2008 to be a tough year for
John Bowles, joint MD, Newspaper Advertising advertising. “Currently, the economic scene is
Bureau (NAB) believes that we will see more not wonderful. Stats SA reports a slowdown in
community newspapers launched this year. “The retail sales, the reserve bank continues to
role local media plays in the community, its increase interest rates, there are inflationary
acceptance and anticipation will maintain and pressures that are out of the hands of South
grow at reader level, and advertisers should African businesses and consumers, and a credit
continue to support and grow their revenues,” act that protects consumers but also limits the
he says. But he adds that the aggressive growth number of potential customers,” says Bowles.
of titles will slow. Chantel Erfort, acting editor, While the picture might be grey for regional
Cape Community Newspapers, agrees: or national media, community media seems to
“Although figures show that newspaper readership have what it takes to rise above these issues.
in developing nations – South Africa included – “Local newspapers are in a tremendous position
is increasing, I suspect the growth in community because the fundamentals are right,” says Bowles.
Community newspaper readership top 10 (ABC Jul-Sept 2007)

Newspaper Net distribution

COMMUNITY MEDIA
He points out that community papers and mag- Community magazine readership (ABC Jul-Sept 2007)
azines allow large and small advertisers to put
getit zone Net distribution
their hooks out into the areas where people
have access to their stores, products or services.
“For small businesses, the local newspaper is
ideal. It has no advertising wastage as it is delivered
to their immediate catchment area and, of
course, it’s affordable because they don’t have
to use a national or regional media type that
extends way beyond the borders of their opera-
tions,” says Bowles. Meanwhile, Erfort says that
the knock and-drop model used by community
media is in line with consumer needs. “New
research shows that readers are increasingly
reluctant to ‘go and get news’. They want their MyWeek zone Net distribution
news to come to them.”
Moving forward, she warns, the community
titles will need to be on their guard: “With so
many media competing for audience attention,
the successful community titles will be those
that remember they cannot be everything to
everyone.” She believes that the increased
competition among this media will see the
newspapers constantly seeking ways to improve
their look and feel as well as their content mix.
Likewise, she says, we should expect a focus on
growing youth readership (a trend reflected
globally).
Where community newspapers will see
growth and development is in niche communities,
such as the gay market (Independent
Newspapers launched lifestyle and entertainment
newspaper the Pink Tongue, last year in Cape
Town) – and among the burgeoning township
and rural areas (where Bowles says the NAB
titles are seeing great growth).
Look out for the expansion of these media
online and on mobile; while it may be early
days, publishers are already making plans in
these spaces. “To not have an online or mobile
presence, is to not be part of the 21st century,”
says Erfort. “At the same time, we have to be
aware of the rapidly changing technological
trends, and be sure to choose our online/mobile
vehicle very carefully to ensure sustainability
and effective integration with the product
that brings in the real revenue – the printed
newspaper.” After all, community titles will be
under great pressure to provide content free
of charge.
Magazines
The golden children of community media,
magazines such as getit and MyWeek will continue
to grow, with publishers emphasising the power
of these glossy titles. “In many cases, when a
local personality is put on the cover they

COMMUNITY MEDIA
become overnight celebrities,” says Bowles. He Community radio listening top 10 (SAARF RAMS, Feb 2007 and 2008)
adds that because the mags include locally Average day
Station Feb 07 (‘000) Feb 08 (‘000)
relevant content, readership is growing and
attracting advertising. “I think we would be
naïve to think that the current state of our
macroeconomic environment is not going to
impact us. It remains to be seen how this will
balance out and how many brands will be left
standing at the end of all this,” says Amanda
Brinkmann, operations manager, MyWeek. She
believes that local retailers will continue to be a
cornerstone of their revenue stream. “This category
will grow slowly but steadily over the next three
to five years. I don’t believe that we’ll see a
proliferation of titles in the short term, but
rather an increase in the size of zones and
resultant readership base,” says Brinkmann. She Community radio listening top 10 (SAARF RAMS, Feb 2007 and 2008)
also points to online social communities as a Past 7 days
natural extension of the mags; these will provide Station
Feb 07 (‘000) Feb 07 (‘000)
new revenue streams and readership growth.
While readership figures and demographics
are yet to be researched, feedback is positive,
especially for those brands that are trying to
target women: “From our feedback at getit,
there tends to be a skew toward females, but
only slightly,” says Bowles.
MyWeek is represented in 26 zones across the
country and has a print order of 650 000; these
are delivered to LSM 8-10 households twice a
month. Two new zones will be added by end
March, in Rustenburg and Nelspruit/White River;
viability studies will determine which two to four
zones will be added in the next fiscal year.
Brinkmann says that ad support is showing TV on channel 360, while Soweto residents are Radio
steady growth month on month. “Bloemfontein able to tune in via UHF on a normal terrestrial According to Franklin Huizies, chief executive
is our most successful zone in terms of volume signal. “So far the economic situation has not officer, National Community Radio Forum
of advertising growth and resultant growth in affected advertising on Soweto TV; in fact the (NCRF), there are about 120 licensed
the size of the magazine. Bloemfontein runs rates are so value packed we may in fact see community stations locally. “Over the past
48 pages on average and often grows to 64 advertisers spend more money on an innovative decade, the community radio sector has proven
pages,” says Brinkmann. Specific quantitative channel like Soweto TV,” says Botha. itself able to maintain and grow its audiences.
and qualitative research results will be ready for Audience and viewership research will be The reason for this is that they cater for the
release in April 2008. carried out by Target Group Index and will be information needs of local communities through
www.myweek.co.za is due to undergo a bit available from July 2008, says Botha. Meanwhile, various means of interactive and creative
of a makeover in the next few months, and advertisers can expect to pay R4 660 for a programming ideas,” he says. As for the impact
according to Brinkmann, certain areas of the 30-second spot until the rate cards are reviewed of economic pressures, Huizies added that the
website will be monetised, and will provide and new ones published. “The content evolves on stations are seeing the impact of growing
added value for advertisers. CSI programmes a daily basis and is presently undergoing a facelift,” operational expenditures.
will also be initiated via the site. says Botha. He adds that the programmes that There are 6.2 million community radio
have proved most popular will be extended, listeners, which means that one in five people
TV while newer, shorter programmes will be added. listens to community radio; this is 20 per
Soweto TV launched last year under ICASA Soweto TV is working on improving its online cent of the total radio audience. “The profile
licence and has not looked back. “Viewer offering (www.sowetotv.org) and will soon offer of these listeners is predominantly in the
response has been positive,” says the station’s more detailed station and programming info. middle and upper LSM ranges,” says Huizies.
advertising sales manager, Deon Botha. “The online component of Soweto TV is under He adds that the NCRF aims to build the
“Viewers from as far afield as KwaZulu-Natal, development and will offer viewers who have image of the sector through capacity-
Limpopo Province and the Eastern Cape have online access a more informative view into the building projects and engagements with
been calling in.” DStv viewers can catch Soweto world of Soweto TV,” says Botha. strategic partners.

by elan lohmann EXPERT OPINION
The new net:

make online advertising work for you
Against positive growth in South Africa’s powerful tool. This area will become more
online universe – having grown from 1.8 million interesting to advertisers because the
in 2005 to 4.6 million unique users in 2007- word-of-mouth value of people sharing a
only 1.2 per cent of total media spend remains marketing message can be exponential. Bear in
devoted to online, according to Nielsen Adex; a mind though that this tactic is reserved for a
long way from the nine per cent in the US. small niche of ads or offers that have real utility
It’s time for savvy South African marketers to or value to the target market.
recognise that the Internet has grown up and
there are a number of opportunities for them in Now that your interest in online is
this space. piqued, here are some quick tips:
Online demands as much good creative and
Cut through the noise planning as any medium. It needs to be scripted,
Admittedly, the Internet does not (yet) have the tested and scrutinised in the same way as any
reach and frequency of TV or radio, but there other ad.
are numerous opportunities to win market Forget about clicks. Yes, the click ratio is
share. Fortunately, the basics of marketing still interesting to look at but it is a one-dimensional
apply when approaching online, starting with way to evaluate campaigns. Many research
asking the right questions and being able to studies in the US and UK clearly show that
measure success. For example: online is very strong in complementing
Can you find the audience profile you are real-world campaigns in areas such as brand
looking for? awareness, message association, brand
Can you target it easily? billion, according to PWC.) Although we have a favourability and purchase decisions.
Can you convey your message effectively? ways to go before offering a critical mass of Don’t spread bet. Many planners take budget
(And will they respond?) video ad inventory in South Africa, some small and spread it among a bunch of publishers as a
Can you easily explain the success or failure video sharing sites like Myvideo.co.za, method of planning. Nielsen’s Market
and whether you achieved your objectives? Zoopy.com and http://play.24.com are useful. Intelligence offers a planning tool that allows
you to profile demographically in real-time and
Fundamentally, online should not be an after- Search advertising conduct de-duplication reports to understand
thought or add-on to a campaign. It should be Search advertising can be very effective because where your target lies. Contact the Online
integrated from the outset to deliver results. it is contextual. This basically involves variations Publishers Association (OPA) to find out about
Here are some of the basics to get you started. on the concept of Google ads which dominate access to this data – www.opa.org.za
globally. The positive aspects are that it is
Building blocks of online advertising cost-effective because you only pay for the clicks How to be GREAT in 2008:
Display advertising (aka banner ads) you receive, thereby increasing ROI. I would Spend more on display and search advertising.
This grouping has evolved dramatically. In years recommend outsourcing this capability because Include online as much as possible in ALL
past, banners were too small and an odd shape optimisation plays a big role and just buying campaigns that are relevant to LSM 7-10
to offer compelling ad creative. Today, South some keywords through a self-service campaign where online is strong.
African sites are starting to adopt bigger and is a waste of time. Educate yourself. Read everything you can
bolder placements to the extent that online about online, but always bring data and
space is now something akin to a dynamic Innovative advertising trends back to a local context.
billboard. This is a broad category, examples include social Take ownership and develop your internal
In today’s Internet environment, banner ads networking, blogs, RSS feeds, Wikis and online marketing IP as part of a long-term
are no longer static boxes of online real estate. podcasts. I would not suggest venturing here strategy.
They can be overlaid on a page and even fly until you have a solid track record in the
around a user’s screen. Beyond this, they can previous two pillars which are more established
also include rich media like video. In fact, as a and easier to evaluate. Elan Lohmann
result of responses and yields higher than What is most interesting about this genre is general manager: social networking
television, online video in the US now com- the interactivity and the potential to build and and media 24.com
mands big spend. (This year it is expected to reinforce relationships. Pioneered by MySpace, (021) 468 8247
double from $775 million in 2007 to $1.3 the notion of befriending a brand online is a elan.lohmann@sa.24.com.co.za

2nd Interactive Marketing Summit
18 March 08
Sandton Sun Hotel, Johannesburg
Digital marketing is hot, innovation is constant and to optimise response it is very important to appreciate current marketing best practices.
The speakers understand the South African market; they are at the leading edge, working with major corporates frequently, and are
response focused.
Digital Media Perspective

Andrea Mitchell, MD of DigiVOX, a specialist digital marketing company will discuss how marketers should evaluate and select the
appropriate components of the digital media mix. She will also discuss how digital media will evolve in 2008 and give an appraisal of the
research data available and most importantly, the metrics that really matter.
How BMW Compiled and Executed their Digital Marketing Plan

Scott Gray, Interactive Marketing Manager, BMW, will explain the objectives of the BMW digitial marketing plan, the reasons for selecting
and weighting the mix, as well as the creative approach and the results achieved.
Online Media
Elan Lohmann, head of Social Networking/Media Services at 24.Com, will guide you through optimising online marketing spend best
practices, covering:
Marketing 2.0
Online media selection
Smart ways to boost online response/ Going viral in the digital space
Social networking/social media/Facebook widgets etc
How to initiate conversations with your market, build relationships and create trust.
Mobile as a Medium
Rick Joubert, Executive Head for Vodacom (also responsible for the recently launched Vodacom Mobile Advertising service) will discuss:
Why Mobile is not merely sub-set of “digital” media and could be the ultimate interactive medium.
Mobile as a medium has arrived and is no longer just a great idea.
The Case for Integrated Digital Marketing

Roelof Van Wyk and his company, TRIGGER (winner of numerous awards) are on the global edge of Integrated Digital Marketing. He will
state the case for integrating digital media with the traditional response methods, but more importantly to stimulate response, justify the ROI,
and add some zing to the traditional media landscape.
Web 2.0 Clever Tricks

The words Web 2.0, social networking, Facebook, Wiki’s and blogospheres are all on everyone’s lips. What are all these things good for?
What are they not good for? What can company’s do with Facebook? How can the power of Web 2.0 be translated into real business
benefits? How do marketers use these things and how is it changing the marketing realm. Jonathan Hall, CEO of The Virtual Works, will
discuss these issues.
Pricing
A morning workshop
R1 950 per delegate
Three or more R1 750 per delegate (plus VAT)
Enquiries: Daisy Mulenga, daisym@systems.co.za (011) 234 7008

Sponsorship opportunities available, contact Robyn robynr@systems.co.za (011) 234 7008
by nici stathacopoulos EXPERT OPINION
To shed the load

This article is not about the lack of power, we know all of that. It’s a real business
look at the service provision around alternatives and the way we can capitalise on
relationship building.
Of course the hot topic is load shedding A. Acknowledge all calls, e-mails and messages
and the lack of power. And by the time this within 24 hours
article is published, trust me it will still be the B. Behave honestly with your delivery and serv-
conversation topic of the day! The amazing ice terms
thing about South Africans is just how adapt- Over promise and you will lose out in the
able we are. (Pieter Dirk Uys in 19-something long term

Adapt or Die!) Surprise and delight your potential and
We are done with raging and now we are existing customers at all times
getting on with living. Power outages, whether C. Connecting with your new customers
planned or unexpected, are here to stay. So let’s Consolidate the data you have on them; start
get practical and see who can offer true the moment they call you
relationship marketing over the next few years, Use as many channels as possible
so they can build a loyal customer base. I am Call centres (employ an extra person to
dining out on all the e-mails, texts, cartoons, operate the phones)
mpegs, jpegs etc that are circulating; even our E-mail
international friends are on the bandwagon and Mobile messaging
sending us their laughs. Mail
Fax
Generating the ‘genny’ and D. Data – gathering as much on your new

powering the sun customers as possible
People are rushing out to buy generators. The You don’t need a large amount of technology
cost is exorbitant, not to mention the cost of to start your database, Excel and Access will
fuel, and the noise is just awful, impacting on do very nicely
our environment. Other colleagues, friends and Information is the foundation of successful
“
neighbours are looking into solar heating, which and lasting customer relationships. It drives
is, of course, a far better long-term solution for Z. Zealous, but not superior insight, which becomes the platform
us all. Many of us are waiting patiently for for building competitive advantage and
rechargeable lamps and have installed back-up
overzealous; treat your results.
batteries on our alarms and gates. customers warmly; pursue Basic demographic information, including
Phone around for suppliers and you are likely mobile number and email address
to be kept on hold for at least 20 minutes; call their needs earnestly and Size of household or business
”
backs don’t happen; responses are ‘e-mail me Limited but useful lifestyle information
arduously!
and I will get back to you in five days’ time – if E. Electronic communication is so easy
you are lucky!’ So if you can’t start one of these Set up basic e-mail templates and send out
relationships with your customers on a good monthly updates, handy hints (maintenance
footing, then you will create the prisoner rela- of the generator, how to maximise the use of
tionship (and put the airline miles programmes your solar panels etc)
to shame). F. Following up after the sale
Here’s the ABC to CRM for all those involved Ensure your new customers are satisfied
in these businesses. When the hype dies down, your existing

EXPERT OPINION
customers will prove to be far more profitable R. Remember the customer is king at all times
than advertising for new customers S. Service. Service. Service
G. Generators are here to stay so work with If you can’t service all your customers
your customers so they understand how they properly than get out of the business now!
operate, what the fuel issues could be and how T. Take advantage of the benefits of building a
to maintain the generator loyal relationship
H. Happy customers; happy businesses; happy Customers have emotional equity in
providers all make for very happy South your brand

Africans! Your brand is first choice
I. Insist on signed quotations with full details to They look to you to meet their needs and
ensure you don’t get caught with a large debt solve their problems
of installation and sales They ask you for guidance
As a business you are entitled to be paid They discuss your offering not your
timeously and to earn a profit price

J. Jacklights are a quick solution for interim They positively suggest how you can
light; if you are a retailer selling them, don’t improve

promise to call customers back when they are in They want you to succeed
stock if you don’t intend doing so The emotional equity translates into
K. Keep up to date with technology and what positive buying behaviour

you can provide to your customers at all times
“
If you fall behind, the newcomer in your
market will simply overtake you and you will

start losing customers
Power outages, whether planned or unexpected,
L. Lighting is a way of life without which many are here to stay. So let’s get practical and see who can
people start to suffer psychologically; potential
offer true relationship marketing over the next few
”
customers may appear angry with you for little
reason; they are probably suffering from fear of
years, so they can build a loyal customer base.
darkness and fear of crime, and if they feel they
don’t get instant gratification from you, may
turn their anger towards you; be patient and U. Understanding your customers’ needs by tak-
kind, and your potential customers will turn into ing a few extra minutes to listen to them will
your best activist save you all time and money in the long run!
M. Money is to be made off consumers who are V. Viral marketing is your best friend
making a grudge purchase – security companies Use your existing customers to tell their
in South Africa are typical of this; you are entitled friends about you; ask them for
to make a profit, but don’t rip people off. introductions in the neighbourhood, their
N. New ways of life is always hard to adapt to, office building etc
but South Africans do adapt W. Word of mouth can also be your worst
O. Offer options to potential customers enemy
Assess their real needs, their household or One happy customer tells 10 people, one
business size unhappy customer tells 100 people and more

Don’t up sell just for the sake of it and like- X. X-ray; you can’t do this without power; so
wise, don’t give them something that will be ensure medical practitioners receive your imme-
redundant in a few months diate attention; (by the way, nor can you Xerox).
P. Privacy laws regarding your customers’ data is Y. Yellow Pages, and all other places you can list
imperative your services
Ensure they agree to you communicating Make sure potential customers can find you
with them and that they opt in to as many with ease; if you don’t, your competitors will
options as possible be first in the market
Mail Z. Zealous, but not overzealous; treat your cus-
E-mail tomers warmly; pursue their needs earnestly and
Mobile arduously!
Telephone
Q. Quella è vita – that’s Italian for ‘that’s life’. Nici Stathacopoulos

The shortage of Eskom power is here to stay, so managing partner proximity#ttp
accept it and do your best for your customers at (011) 447 7093
all times nici@proximityttp.co.za

WORD OF MOUTH
Word of
mouth
marketing
report
back
The Word of Mouth Marketing workshop held The Diesel Heidies campaign, for the launch Everybody is an influencer, but you need to
in November2007, brought together local and of the new underwear range, exploited reality find those of greatest influence (ie whoever is
international gurus to help marketers get a grip online. Two women filmed, photographed and relevant and credible to your market)
on word of mouth marketing. Speakers included blogged for five days about their adventures You have to have a good product because
Steve Barton, one of the founding members of and exploits in a hotel room, where they were this is where it starts and ends. You also have
the Word of Mouth Institute in the UK; Hendrik hiding out after having stolen the new range of to treat every person who engages with your
van Vuuren, director of Millward Brown SA; Diesel underwear. The website received millions brand like a VIP. Provide people with your
Jason Stewart, brand manager, Instant Seed of hits, with fans sending in their own videos, product and let them experience it
Division, Instant Grass; Mike Stopforth, CEO, pics and messages. This brand now has major Trust is integral (traditional advertising carries
Cerebra; Neil Higgs, director, TNS Research buzz and talkability, and Diesel has achieved a sense of manipulation).
Surveys; and Alan Kent, head of technology at even more cult status as a result. The right snowflakes become avalanches; you
Saatchi & Saatchi. The youth is a particularly word of mouth need to have the right people, in the right
Media fragmentation and mistrust of savvy market. Stewart advises marketers to places, with the right messages. People are
traditional marketing messages sees consumers understand the youth mindset as highly always after social knowledge. They want to
turning to friends and peers for information suspicious of marketing messages. “They don’t know about a new product or trend before
about brands. Barton refers to various research care about you or your brand. You need to add their peers – leverage this.
figures which show that consumers today trust value directly to them,” he says. The youth tribe Word of mouth marketing is perhaps most
advertising and company marketing less, and is a source of opinion, influence and identity for prolific online, where blogs, vlogs and user
their friends more, when it comes to seeking youth. To influence the youth, you need to reviews have allowed the average consumer to
out advice on new product purchases. influence the tribe leaders. “Traditional ads share their opinions and experiences with the
The most successful brands in the future will create awareness, but word of mouth market- world. Stopforth explains that brands that
be those that create powerful, positive word ing adds credibility,” he says. ignore the conversations that people are having
of mouth messages today, and then work to He outlines the principles of word-of-mouth about them are going to lose out. It is becom-
manage this in the right way. Kent points to marketing: ing imperative for brands to take note of these
campaigns such as the Lynx Jet (Axe Jet locally), It’s fluid and it’s happening everywhere conversations and add their voice to them. “The
the MTV Game Killers and the Diesel Heidies People love the unofficial story biggest companies still believe that they cannot
campaigns as examples of brand activities that The story needs to be sticky; it needs to have interface with customers as partners,” says
really win with consumers. conversational currency, if it is to have value Stopforth. And yet blogs are allowing this to

WORD OF MOUTH
happen, with sometimes incredible results for you,” says Van Vuuren.
the brands that do it right. Brands that are talked about and that
He usually suggests to companies who have change trends have buzz. Nappies have the
never ventured into the blogosphere to initiate highest spontaneous talkability, for example,
and manage online reputation management simply because mothers will share all kinds of
programmes instead of using blogs, because conversations around them without being
these can become difficult to manage. prompted to do so. “A true advocate has no
Reputation management allows a company or affiliation to the brand, but endorses it out of its
brand to respond timeously and appropriately own right,” says Van Vuuren. Positive word of
to any mention by consumers, thereby creating mouth is critical to brand success. It can be
a more honest and open conversation. And if influenced by the marketer. But the most
consumers are criticising your brand, perhaps powerful tool is consistently exceeding customer
it’s time to listen and make the changes they expectations.
are asking for.
“
He outlines a few important guidelines:
Be authentic
Have content with a core and augment what

Brands should work with other media to create
you are doing ATL with your website, blogs etc a trend. Also, ethical codes are important because
You need to win consumers’ trust
consumers want brands to have an honest relationship
”
Understand the network
When you are mentioned online, respond

with them. Steve Barton, Word of Mouth Institute, UK
And listen to what users are saying
Give your users power (Dell computers, for
example, has created Ideastorms, which see

consumers making new product innovation Barton emphasises that brands must follow
suggestions up on their word-of-mouth campaigns, delivering
Kent says consumers tell the most powerful reporting, feedback, appreciation and support.
stories about brands. “Increasingly, a product’s They must observe the conversations taking
quality and what a brand stands for are place around them, and identify those that
determined by Google,” he says. Run a search most often lead to a discussion about the
on your favourite brands, and you’re likely to product category.
find blogs and customer reviews too, and these They must observe the content that is most
will influence how you think about these often discussed and traded, and has the
brands. The zone of mediocrity, where greatest influence. “One-on-one interviews and
consumers talk neither good nor bad about small group discussions will allow for this, but
your brand, is a bad place to be. be careful. Cynical, advice-based stories win the
“It’s important to produce something that advocate social points, so be sure to create the
pulls people together and gives them something right context for these discussions,” says Barton.
to do,” says Kent. He points to the Nike+ He urges brands to make it easier for
products, which sell running as a fun, digitally consumers to find them and to use platforms,
enhanced sport. “Consumers are beginning to such as online, to distribute information that
own brands and participate in their creation. will be used in conversations. “Keep in mind
Brands need to learn to let go, and let this that where they receive this info impacts how
happen,” he says. they will use it. Distribute as much info as possible
Van Vuuren says word of mouth is deter- online and make it easy to pass on,” he says.
mined by three factors: the relevance and Brands should work with other media to create
appropriateness to the recipient; how the a trend. Also, ethical codes are important
onward communication reflects on the sender because consumers want brands to have an
(because, as Barton puts it, you will only honest relationship with them.
recommend a product if you’re prepared to put How to create successful word of mouth
your reputation on the line for it); and the trust marketing? Barton says that brands should
placed in it (it should be predictable, fair, reliable identify and target the right people; the right
and connected). Word of mouth can take place moment or slipstream to take advantage of;
online and offline (offline, it can take place in deliver the right nuggets and provide the inter-
social situations, and Van Vuuren points to the active tools. “It’s about being relevant, and
stokvel as one such situation). “You must exceed working with your audience as opposed to
expectations, if you expect people to talk about dumping on it. Isn’t this exciting?”

by graeme taylor MARKETING AT RETAIL
Understanding the shopper:

mission critical
Shopping behaviour has long been studied as a
way to increase off take at point of sale – or at
least to clinch the sale to the consumer, providing
the final link in the value chain. Without that
sale the whole effort of manufacture, advertising,
selling, warehousing, listing, distribution,
merchandising, display and pricing is worth
absolutely zero. If Mrs Jones chooses not to buy
your brand, all the effort has been wasted.
So how do you maximise the impact and rate
of sale of your brand at point of sale? We have
done the obvious stuff of distribution, display,
depth of stock, promotions, price-offs – and so
have all the competitors. We are seeing a lot
more great displays (not just good ones) so the
investment in design is paying off. But what else
can we do differently at the point of sale to
make the ultimate ‘moment of truth’ count?
In a word – understand your shopper.
Become ‘shopper-centric’.
Shopper-centric
Putting the shopper at the centre point means
understanding their needs, language and point Retailing has not changed as rapidly as Through extensive qualitative and quantitative
of view. Shoppers are now making lots of small shopping habits have changed in the new research we have idendified 12 basic types of
trips instead of fewer, bigger trips with some millennium. But, we are not so much behind the shopping mission divided into planned and
people making more than 40 shopping trips in trend as simply not capitalising on the opportunities unplanned, with the percentage of trips shown
a month. This does not mean that shoppers that are being presented to optimise our business. on the left.
have suddenly fallen in love with shopping – on You cannot expect to sell your brand every
the contrary, they begrudge the time it takes Shopping mission time a shopper comes into the store. Sometimes
but they are trying to be more efficient. Each time shoppers are prompted to go on a they just ‘drop in’ for an emergency item that
Shoppers are balancing their time against how shopping trip, a different consumption occasion they need, at other times they come in and out
efficiently they can acquire the brands and prod- or different need motivates the trip. So their quite quickly to buy specific daily fresh produce
ucts they need. To do this they shop more stores, whole approach to the shopping trip changes; or meal requirements. Other times they will
and make more visits than ever before. They their whole behaviour and the way they shop. bring both of their credit cards and fill two trolleys.
understand the value of their time – which is The strategic role of a category may be Some people treat shopping like the plague and
sometimes worth more than saving a few rands destination, routine, convenience or seasonal, will tell you that shopping is their worst.
on a commodity and then needing a forklift to get but all of that can change for a particular
their trolley to their car. They want convenience shopping trip. A destination category could Store repertoires
and efficiency from the stores they visit. become routine or convenience. What we need Store density has added to the repertoire of
to know is how the strategic category role stores shoppers visit. There are supermarkets
How can I save time? changes and when. and hypermarkets just about everywhere, with a
They are looking for a new dimension: ‘How This is where shopping mission plays a role. national network of Spar and KwikSpar,
can I save time?’ They want solutions. They The shopping mission is Mission Critical. Woolworths Food, and hundreds of petrol
want to get in and out quickly, and not spend station convenience stores staying open till late
their time looking around, bumping into Types of shopping missions or 24/7. Shoppers are now spoiled for choice.
people, merchandisers and boxes. They want to What are the types of shopping missions, and In my area, looking within a 3km radius, I
go to it, find it, get it and get out. how does the shopper change their behaviour? have a hypermarket, Spar, Engen (with a

MARKETING AT RETAIL
Woolworths section), Shell Select, Caltex, two Five action points shopper feels. Help them spend less time at
Woolworths Food stores, five takeaways, three Here are five things that you can do to ensure the shelf. Make it easy for them to buy your
bottle stores and a cafe. So to compete and that you make the most of the shopping mission: brand and feel good at the same time.
create an efficient consumer response we need How can you make the experience of
to understand which missions are made to Merchandise and promote according to the shopping your category more of a pleasure?
which stores. time of day, week and month that missions Like providing category solutions – quick
for your category and brand are likely to occur. meals, all related ingredients in one place;
Category mission is critical Think about which other missions your easy to find and easy to combine into a
If mission for the store is critical then mission for brand or category could become a part meal solution.
“
the category and brand is even more critical.
People divide their shopping into different
missions, by breaking up the task into a lot of Getting into the basket will in future depend
smaller missions and making it easier. Pick up
the monthly items at the hyper where you get a
more on understanding the shopper than just
good price, then buy the bulk items from Spar having a well-organised category display. It will be
or a supermarket with close parking. Drinks and
snacks are bought at any time on any number shopper centric by focusing on what the shopper
of missions.
feels and needs for each mission – it will be
”
To get into the basket, an understanding of
the Shopper Mission is critical. mission critical.
The obvious solution is to expose your
category in as many contact points in the
store as possible. This is only partly true.
Too much clutter begins to degrade the of and find its way into the basket. This Getting into the basket will in future depend
shopping experience with more of a ’bazaar is about helping shoppers to find a total more on understanding the shopper than just
effect‘. If all categories were merchandised solution. having a well-organised category display. It will
everywhere, the store organisation and layout How would your category most logically be be shopper centric by focusing on what the
would become unclear and confusing to the laid out? Not just in terms of a planogram – shopper feels and needs for each mission– it will
shopper. The trend is starting to move in the but in terms of the decision hierarchy be mission critical.
opposite direction, to assist and facilitate of the shopper. What would be most
decision-making at the point of exposure. The helpful to the shopper? What would save
Graeme Taylor
more logical (as defined by the shopper, not the decision time? managing director
store owner) the layout is, the easier shoppers How can you make the category look better GlobalEdge Marketing Consultants
can find things – associated things – and then and work better? Great displays. Make it (011) 564 8168
buy them. experiential, which is about how the graeme@glx.co.za

by kathleen rice LAW MIX
Undersea
Cable Access
Undersea cable investment in South Africa Christmas Eve of 2007, in a move to open up
appears to be on ice, with no early thaw in access, ICASA promulgated draft regulations
sight. on essential facilities for comment. Undersea
Foreign investors continue to wait anxiously cables, including landing stations, backhaul
for the Minister of Communications to clarify circuits and international gateways, are regarded
local ownership requirements in respect of as essential facilities.
undersea cables. This is because, in order to The draft regulations provide that all licence
land a cable on South African shores, an holders should have fair and non-discriminatory
individual electronic communications licence access to essential facilities. In particular, access
will be required. Such a licence is only granted charges must be based on the ‘forward-looking,
pursuant to an invitation to apply, which must long-run average incremental costs of an
in turn follow a policy directive from the efficient operator providing access’, unless
Minister. What concerns investors is confusion agreed otherwise. In the absence of licensed
over the policy stance being taken on undersea competing undersea cables, the draft essential
cable ownership, and hence eligibility for facilities regulations, if passed, should drive
individual electronic communications licences. down international bandwidth charges.
The Minister has made a number of Although the charges for access to
statements in the media to the effect that any international bandwidth seem set to decrease,
new cable must be majority South African Minister may determine the licensing framework this does not resolve the continuing uncertainty
and/or African owned. Unfortunately, she has for ‘public entities’ listed in the schedules to the surrounding ownership and licensing of
omitted to say whether local ownership would Public Finance Management Act. Critics are of undersea cables. Foreign investors may well lose
be limited to the South African portion of a the view that this amendment undermines the interest in investing in new cable projects or, if
cable system, or extend across the entire independence of the Independent they stay the course, find themselves hopelessly
network. The promised guidelines on ownership Communications Authority of South Africa behind their deadlines. The delay in issuing
have not been forthcoming although they were (ICASA). landing right guidelines and licences is
to have been made available in November last More specifically, critics fear that the hampering the introduction of competition and
year. This lack of clarity can only be having a amendment to the Act allows Infraco to diversity promoted by the Electronic
chilling effect on potential local and international sidestep ICASA’s licensing processes. Infraco is Communications Act.
investment in proposed new undersea cables South Africa’s newest public entity, having For the time being, progress with licensing
such as EASSy and Seacom. recently been formed in terms of the Broadband additional undersea cables seems frozen by
Given high international bandwidth prices and Infraco Act to take transfer of the fibre confusion and uncertainty. It may be cold
and the shortage of bandwidth out of Africa, optic assets of Eskom and Transnet. comfort but the draft essential facilities
including South Africa, it is evident that such It is conceivable the Minister may make use regulations offer at least some prospect of relief
cable projects will go a long way towards of her ‘new licensing framework powers’ to for electronic communications service providers
alleviating supply-demand anomalies and grant Infraco the right to roll-out its own and consumers alike.
provide much-needed international bandwidth undersea cable without the necessity of
competition. complying with the usual licensing Note from the editor: At the time of
The Minister, who previously supported South procedures. This seemingly flies in the face print, the Minister of Communications had
African landing rights for the EASSy cable, has of government’s much-vaunted commitment just issued new guidelines stipulating the
now withdrawn this support, apparently to liberalising the communications sector. long awaited local ownership and licensing
because the cable is too commercially It could, however, fast track the granting requirements. Werksmans Attorneys will
orientated. Instead, she is reportedly trying to of landing rights, offering some hope deliver a follow-up on this in the next issue
convince EASSy investors to support the to potential investors. It is even possible of Marketing Mix.
Baharico cable, a project of the New Partnership that third parties may be permitted to invest
for Africa’s Development (NEPAD). in Infraco. Kathleen Rice
Adding to the confusion is that President Meanwhile, there are hints of progress in director
Thabo Mbeki has formally signed into law the regard to the cost of international bandwidth. Werksmans Attorneys
controversial amendment to the Electronic Telkom still dominates access to international (011) 535 8316
Communications Act. The effect is that the bandwidth and sets the prices for access. On krice@werksmans.com

Marketing Mix Magazine Jan Feb 08

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MarketingMix

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

I 0 2 I Book Review I 3 0 I Packaging

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

Never mind the sizzle...

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

Organic for real?

Vol 26 No. 1/2 I 2008 I MarketingMix 3

Join the DMA…

Channel: ONE GOSPEL

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

Fastest rising (global) 2. Lost 3. who is lookup

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

The ACA and the Apex Awards Urbandictionary.com

Marketing Mix: What are your plans for the ACA?

Vol 26 No. 1/2 I 2008 I MarketingMix 7

Already showing Back to You women who decide to set up a murder

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

Will consumer Simplify to succeed

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

The pitching game

Vol 26 No. 1/2 I 2008 I MarketingMix 11

The denim standard

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

Vol 26 No. 1/2 I 2008 I MarketingMix 13

Vulgarity – I don’t buy it

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

21/01/08 Go to work; smoke. A

Vol 26 No. 1/2 I 2008 I MarketingMix 15

Courtesy Queer City Productions

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

Productions. popular product categories are travel, financial

Vol 26 No. 1/2 I 2008 I MarketingMix 17

Events are living together but are not married, do not

they place in gay media is suited to the

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

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

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

Eastern Cape rules

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

order to progress to a stage where investors Tourism

Radio listening (RAMS Feb 2008 and AMPS 2007)

Vol 26 No. 1/2 I 2008 I MarketingMix 25

programming includes the usual news, sport

more of an ownership and involvement being

Events Calendar 2008

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

Community newspapers appear healthy and

Vol 26 No. 1/2 I 2008 I MarketingMix 27

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

Vol 26 No. 1/2 I 2008 I MarketingMix 29

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

Vol 26 No. 1/2 I 2008 I MarketingMix 31

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

Keeping track of your incentive

set objectives that tie in with your overall kept confidential

Vol 26 No. 1/2 I 2008 I MarketingMix 33

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

Creating a Buzz Pick n Pay’s Media One Stop Shop

Enquiries: Daisy Mulenga, daisym@systems.co.za (011) 234 7008

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

Vol 26 No. 1/2 I 2008 I MarketingMix 37

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