Professional Documents
Culture Documents
03 39 49 54 56
The team:
PROPRIETOR AND PUBLISHER: Systems Publishers (Pty) Ltd. Tel: (011) 234 7008
North Block, Bradenham Hall, Mellis Road, Rivonia, Johannesburg PUBLISHER: Database:
List Perfect
Terry Murphy MANAGING EDITOR: Michelle Sturman michelles@systems.co.za
EDITOR: Fulvia Becatti fulviab@systems.co.za ADVERTISING MANAGER: Lethabo
Tloubatla lethabo@systems.co.za PRODUCTION: Spencer van Graan
Cover design:
spencerg@systems.co.za EVENT ENQUIRIES: Daisy Mulenga daisym@systems.co.za
Colin Brandt, multimedia
SUBSCRIPTION ENQUIRIES: Busisiwe Nama busisiwe@systems.co.za designer, Siverstone CIS 3 461 Jan-June 2008
www.marketingmix.co.za
November / December 2008 MARKETER’S GUIDE TO MOBILE 1
ed’s note
Marketing mobile –
the leading new media channel
By Laura Marriott, president, Mobile Marketing Association (MMA)
Stratmann says that forecasts (Nielsen) predict that by SMS/MMS advertising is liked the most with no channel
2012 online and mobile will grow faster than any other identified as unattractive or disliked by majority
media, with mobile Internet services driving audiences to Consumer perception: Overall, very few negative
the mobile channel. It is also expected that print will slow connotations with traditional advertising with similar
to a flat growth, outdoor will gain momentum for 2010 perceptions for cellphone advertising ie few negative
but slow down after the event and TV ad spend will grow associations
User behaviour: Almost one third of users say they
once competition arrives.
might churn if mobile advertising is sent to them,
Stratmann continued to say that the mobile world
however, more than half say they might use it if given
allows customer, ad agency and operator to be connected; an opt-in/opt-out option.
each feeding off the other’s desires.
Customer: “If I agree to receive subsidised services on The overriding theme from the Marketing Mix Mobile
my cellphone they would have to meet my specific needs Marketing Summit 2008 is that mobile will become a
and provide significant value.” dominant marketing and advertising medium in the
Ad agency: “By investing in subsidised services I can future. And that future is right on our doorstep. Brands
reach my target audience more effectively and thus and agencies would do well to use this time to test the
improve the efficiency of my budget allocation.” mobile waters and tweak campaigns to ensure future
Operator: “My goal is to provide customers with meaningful success for standalone and integrated campaigns.
Mobile marketing is Meet Rick Joubert. Chances are you’ve heard the name – planning fraternity. But there is definitely a growing trend
expected to grow to but only in the past year or so. Chances are slim that of market acceptance; I see it in the number of agencies
you’ve actually spent time with him to pick his brains so and marketers that attend mobile marketing events, for
over US$24 billion
as to not put so fine a point on it – he’s hectic. example,” he says.
worldwide in 2013,
Which tells you something about the strength of the Talking specifically about Vodacom’s mobile media
jumping from just
business he’s built (with his equally busy team) in a very offerings, the market acceptance by advertising agencies
$1.8 billion in 2007.
short time. As head of Vodacom Mobile Advertising and in particular, has seen a significant rise in the past year.
(ABI Research) Social Media, Rick has helped raise awareness and “In October 2007, as a percentage of revenue, 17 per cent
knowledge of mobile marketing and media across the came from ad agencies of all sizes, including specialist
country. And unlike some, he’s more than willing to share mobile ad agencies, and this October, it’s 60 per cent.
his knowledge with anyone who wants to know. Media agencies are also definitely increasing the amount
And this is where we run into problems. As much as Rick, of mobile within campaigns.”
and lots of others involved in the industry, have shared their Still, it’s understandable that marketers may be a
knowledge freely, marketers, media agencies and ad little reluctant to use a medium that is relatively
agencies need to sit down and listen a little more carefully. unexplored and for which measurement is problematic.
“The biggest barrier to market uptake is a lack of Rick argues that mobile is highly measurable, but the
understanding by the marketing, advertising and media root of the problem lies in the fact that we don’t have a
representative body to provide independent measurement
such as Nielsen or comScore (M:Metrics).
At the moment, it seems that most have followed
Vodacom’s standards, but Rick is hoping for a body such
as the Mobile Marketing Association (MMA) so that
everyone involved in mobile marketing can subscribe to
the same standards, including creative formats, rate cards
and opt-in. The emerging mobile media industry needs to
self-regulate and ensure adherence to standards if it
wants to maintain control over its destiny, he says.
Just to be clear, he’s not talking about providing a client
with the results of an individual campaign – that can be
achieved very accurately. “By measurement, I mean
independent audit of the size of publisher user bases,
mobisite rankings, impressions served, active users,
mobile platform user profiles etc – in other words, the
mobile media landscape verified by an independent third
party.” He admits that the lack of independent verification
means advertisers rely on the operators, publishers and
agencies to provide that credibility.
Still, the potential of mobile is huge, not just for SA,
but for the continent. Rick sums it up in one sentence:
“Mobile marketing in continental Africa is going to be the
ad medium of the future.” One of the biggest challenges
for mobile in Africa is that it’s virtually impossible to run
the same campaign across multiple countries at the same Internet,” says Rick. This is especially important to note
A survey from the
time. Rick says that this will change in time. as mobile search will become hugely popular in the
Locally, according to Rick, mobile as a medium, will be future. Another counter-intuitive insight is that less than Direct Marketing
as big as online (AdEx) by the end of this year (see graph). 10 per cent of current users of the broader mobile Association in the US
Talking specific mobile media, Rick offered some Internet are under 18 – the younger generation tends to says nearly 70% of
surprising and not so surprising answers. MXit is for the confine the bulk of its activity to mobile games and IM respondents in a test
teenage market. Please Call Me is a huge lead generator services such as MXit. reacted to SMS
and appeals to lower LSMs and the mass market. messages sent from
Vodafone Live! is popular with the up-and-coming urban The mobile future suppliers, compared
black market aged 20-35. Mobile as a medium, generally Other trends we will see shortly include location-based to only a 30%
speaking, is primarily for those under 45 as those over advertising, which will allow for more targeted
success rate for
45 don’t tend to use their cellphones for mobile Internet, advertising as well as make mobile media more
e-mail.
for example. But, as the Internet mobilises, it will appeal accessible to the ‘long tail’ of the advertising market,
to the more mature audience through offerings and primarily small businesses.
content that meets its needs such as financial services. For Mobile games are also expected to become even more
now, to reach this audience, mobile still has to be integrated accepted. “Ad-funded content, especially games, are a Worldwide sales of
into an ATL channel as a response channel. massive growth area for mobile, we have 800 free cellphones will reach
“Mobile is very complementary, especially as an ATL ad-funded games in AdMe, for example, and they are 1.28 billion units in
response channel. You can also do standalone mobile hugely popular,” says Rick.
2008 – up from 1.15
campaigns with great success but the sustainable role for Other trends to look out for include mobile coupons,
billion units in 2007 –
mobile for most brands will be as part of an integrated vouchers and bar codes. According to Rick, this is
an 11 per cent
campaign, both for delivery of the brand message as well hampered by a lack of standards and involvement on the
as for response and interactive brand engagement.” part of retailers. “South African retailers are not yet
increase from last
Rick warns that marketers must understand that you geared up to use mobile vouchers at the point of year. (Gartner, Inc)
look at the mobile publishers and their offerings in exactly redemption. However, various stakeholders are working
the same way that you would compare magazine on solutions and I think we’ll see some interesting
publishers, for example. He also adds that while rich announcements during the next 18 months,” he says.
media applications are ‘nice to have’, it’s still the Using mobile for branding purposes is certainly
ubiquitous and simple mobile Internet and text offerings gaining popularity, although much of the interest still lies
that are making mobile so effective at the moment. with direct response that is a call to action to ‘win or get
For marketers to really succeed in mobile marketing, a something’, for example. “But, the percentage of interest
WAP site (or mobisite) must be present alongside the for pure play brand building, awareness and recall over
original website. “In terms of WAP, there are around the coming years will surpass direct response,” says Rick.
10 million active South African users of WAP sites, that is And when high-powered brands such as Nike, Toyota
those that visit regularly and this number will continue to and Coca-Cola use mobile for high brand association
grow. Crucial to understand though is that about 70 per campaigns, you know it won’t be too long before it hits
cent of these users do not have easy access to the fixed the mainstream.
(Nielsen Mobile)
“There are two reasons marketers should be interested The benefits of mobile
in mobile: it really does perform and it’s a personal It has the most extensive reach. There is no other
medium,” says Andy Smith, sales director, AdMob EMEA. medium that reaches the number of consumers like the
cellphone – it’s the ultimate one-to-one marketing tool.
According to renowned mobile expert Tomi Ahonen,
High-end phone It is extremely cost effective and allows for affordable
three times as many people have cellphones than have
owners are the mass marketing.
PCs and twice as many people have a cellphone subscription It has precision targeting, which Russel Hawkins,
heaviest mobile than own a TV or a credit card. director, Top Friends (formerly 3Gees Mobile) believes
Internet users. The cellphone has the ability to replicate all of the is a solid reason why every brand should invest in
(Forrester) main six mass media – print, recordings, cinema, radio, mobile marketing.
TV and Internet. The cellphone has a myriad of useful applications and
Ahonen has even more startling figures. Currently there functions including games, ring tones, SMS, MMS,
banner ads, mobisites, social networking, community
are more cellphones than PCs, Internet users or TVs in
portals, camera, radio, Internet to name a few. More
most countries in the world; in 59 countries there are
applications are being developed such as DVB-H,
more mobile accounts than the total population; and in which is the ability to watch TV on a cellphone.
leading countries like Hong Kong, Taiwan, Italy and Israel, Mobile attains a higher than average ROI.
mobile penetration is about 140 percent per capita Cellphones offer the ability to integrate into all other
(Informa 2007). traditional media and become the glue that binds them
Source: Tomi Ahonen Consulting, AMF Venture, Xtract, SMXL 2006-2008. www.tomiahonen.com.
Challenges
South Africa is in some ways ahead of the US and Europe
in terms of the really ‘cool’ mobile advertising stuff.
Despite this contributing factor to the slow uptake of
mobile marketing and advertising, are the lack of
education and the slow adoption of this media by
advertising and media agencies.
A new industry has been created in the form of
boutique mobile marketing and advertising agencies. But
brand managers, marketing directors and agencies have
to step up to the mark.
“The more a brand is familiar with in terms of criteria
and understanding of mobile, the better the ideas that
can be pitched. Brands should instruct the ad agencies
on this,” says Ahmed Kajee, managing director, Cellsmart
Technologies.
Media planners need to come up with a way of
incorporating mobile data into measurement systems to Even better news is that the mobile world is rapidly
create reporting and analysis systems. evolving from all sides – improvements to cost, handsets,
“Media agencies ought to provide specific mobile new applications and methods of measurability to
campaign objectives, so that mobile agencies can help to name a few.
create the required systems for reporting and analysis,” As mobile marketing is still relatively new, you can
says Raymond Buckle, co-founder, SilverstoneCIS. Buckle expect the pace of development to go at a rate of knots.
also suggests the creation of dedicated mobile divisions For example, the iPhone 3G or the Google Android phone
within media and advertising agencies to facilitate education that have been designed to browse the Internet and
and knowledge, which can be filtered through to their clients. receive fabulous MMSes and videos. These smart phones
Education should focus on best practices, rules and are the next generation of cellphones that enable the
regulations, available applications and the myriad of immense development of mobile advertising and allow for
channel options. greater creativity.
“The purpose of media is to gain more eyeballs on Local ad agencies can tap into the mobile agencies for
their brand and mobile is an appropriate medium to content and produce creative ideas for clients, especially
achieve this. However there is little propensity to change for branding purposes.
and there needs to be someone dynamic to drive this “It is the biggest channel in South Africa and Africa.
forward – preferably a mobile division, which should be a Cost or access is no longer an issue, it’s now down to
key feature,” says Kajee. content,” says Eddie Groenewald, CEO, Multimedia
Solutions.
Consider the basic options open to you that include: are in place and the creative concept is done, you will
Mobile Internet banner advertising: is primarily used
need to cater for the application of the concept to of the campaign strategy, trafficking, consolidation of
mobile banners that will be rendered in various stan- data and reporting? It can be a full time job and specific
dard sizes (at least four different sizes and formats). R2 to each brand or campaign. Either charged as a flat fee,
000 to R4 000 should cover this. retainer or percentage of the media budget, it can
Short Code rental: R500 to R3 000 to set up, with a range from 10 to 25 per cent depending on the size of
monthly cost from R500 or more depending on the campaign and level of service required. If possible
whether this is a shared or dedicated number. it should be built into the agency commission for
Normally the service is provided with a basic rules placing the media.
engine where you can define keywords and auto Assuming a budget of R200 000 to splash out on your
response messages. You may need to cater for consult- first mobile campaign – to maximise brand exposure,
ing, development and integration costs. Short codes drive traffic to your mobisite and start building up a base
are one of the most effective ways of integrating of consumers who want to engage with your brand on
mobile into your traditional media campaigns. their cellphones – above is a basic budget framework.
Mobisite development and hosting: You can get away A good benchmark for mobile banner click through rates
with as little as R5 000 for a template based mobi or is 1.5 to 2.5 per cent, on tagged text such as Please Call
microsite leveraging someone else’s CMS and hosting Me, and response rates vary between 0.1 to 0.3 per cent.
platform; around R10 000 to R25 000 for a basic If your message and call to action is clear, your
mobisite with brochureware type content; or R50 000 mobisite is well thought out from a cellphone user’s
to R150 000 or more for database driven content, perspective and works as it is supposed to, you should
interactive components and personalisation. expect an action rate of between 10 to 30 per cent of
A basic requirement is that the mobisite is rendered visitors to the site.
according to the user’s phone capabilities, such as screen You also need to think about the CRM database you
size and browser type. Remember that a mobisite is not a are building up through the mobile strategy and
website and online mechanics do not translate well to a campaign. This that data has to be collated so you can
mobile experience. So it’s worthwhile to engage specialists analyse, manage and learn about your database.
who understand the medium. Hosting is dependent on Bank the information that you gain from each
the type of site and volume of traffic. You can expect to campaign-creative-audience and group-medium-channel
pay R1 000 or more per month and even more if it’s your and use it in planning your next campaign and use it to
own infrastructure. improve your mobile strategy.
Campaign management: Once the basics are in place, How much of your total budget should go towards
you’re ready to place insertion orders for media, but mobile you may ask? As much as possible! But plan for at
are you ready for the day to day real time management least 10 to 25 per cent.
Are cellphones and the mobile web only for the youth market?
Well just about everyone has a cellphone and while it’s true that some
applications and features are used more heavily in some age groups than
others, everyone is connected. It really is a case of finding out who your
target market is and what they prefer.
Cellphone measurement
An operator or agency that runs a mobile campaign
should be able to offer certain information that include:
Source: GroupM
There are plenty of local case studies that dispute this. Mobile assists in
function.
Europe and Asia, and www.thegrid.co.za investigated. “Top Friends is great if you have a customer
A location-based social network for mobile and online base already and you want to use SMS and communicate
the rest in the US.
users. You can see when friends are in the area, and you with your own customers,” says Hawkins.
can leave notes for friends to find. Also includes instant
messaging and uses Facebook to help set up parties etc. Mobisites (publishers/
content aggregators)
MXit If you have a website, you should have a mobisite if you
www.mxit.co.za want people to be able to browse your content on a
One of the most popular social networking sites on a cell- cellphone. There are some mobisites that offer content
phone. Mostly used by teenagers, it allows instant chat at from their own stable of media and also content from
cheaper rates than an SMS. other places. Below are just a few examples:
Independent Online
www.highveld.mobi
Facebook and MySpace Standard Bank
you will see that you need a mobisite especially if you want to attract
advertising on the site and make it easy for consumers to find and browse
your content.
Learn all there is to know about cutting edge messaging, website construction, search engine optimisation, and mobile
marketing. Find out how to integrate, optimise and measure interactive media, for direct marketing and CRM campaigns that
deliver ROI and customer engagement.
Case study
One of South Africa’s largest credit providers in the retail market approached TransUnion to add new innovations to their direct marketing processes.
Their goals were to:
Drive response rates to higher levels
Improve customer experience of the application process
Raise return on investment through increased conversion rates
Reduce costs and time associated with application processing.
The retailer initiated a campaign that would employ MobileCredit by conducting a pre-screen data cleansing process on a selected marketing list.
This pre-screen provided a preliminary affordability assessment as required by the National Credit Act for all credit-related marketing campaigns.
Because this pre-screen was not sufficient for an affordability assessment, the direct-mail call to action asked recipients to submit financial details via
MobileCredit SMS short code. Accepted consumers received reference numbers and an invitation to complete their applications in-store, where all
details would be validated.
The campaign was a resounding success – both response and conversion rates increased by a significant percentage above the norm and a large
amount of related new-account revenue was secured during the three-month campaign that exceeded both past campaigns and expectation.
TransUnion Offerings
TransUnion is a global information solutions provider with strong capabilities in data, analytics and decisioning services and technologies.
Businesses in a range of industries employ our solutions in multiple key areas including marketing, risk and fraud solutions. TransUnion’s marketing
solutions and capabilities are powerfully leveraged to provide value throughout the marketing process.
Contact details
Derek van Wyk, Manager: Analytic & Decision Services
TransUnion Credit Bureau, 011 214 6290 – 083 457 3150
dvwyk@transunion.co.za – www.transunion.co.za
They already are. Although mobile commerce isn’t huge yet, it is expected to
Extreme Toyota
How business contradictions can lead to
brand success.
Ever wondered how Toyota became a
global leader and how it pushed the Lexus brand
from ‘unkown’ to ‘must-have’ status? If so, this is
the book for you.
The authors make it their mission to write
about every strategy ever put into play by Toyota,
and after six years spent interviewing over 200
employees, distributors and dealerships, they
deliver what is unquestioningly an intimate
glimpse into the operations of this company.
For a start, you’ll understand that the design
teams did their homework: “In August 2002,
Obu [chief engineer] and his team began visiting
different regions of the United States; they went to
logging camps, horse farms, factories and
construction sites to meet with truck owners. By
asking them face-to-face about their needs, Obu
and Schrage [project manager] sought to under-
stand preferences for towing capacity and power;
by silently observing them at work, they learned
things about the ideal placement of the gear shift,
for instance, or that the door handle and radio
knobs should be extra large, because pickup
owners often wear work gloves all day long.” It other things, quality and dependability. Yet Contained in these pages are important
was this face-to-face interaction with the users of entering the luxury segment with the Lexus brand lessons for all marketing leaders especially as
the brand that really gave Toyota the edge over in 1980’s required the company to build a new most brands find themselves bound by contradiction.
their competitors. brand from scratch. This book sheds light not only on the
The book is built on the concept of They also had to overcome the “but it’s just a company’s operations and products, but also on
contradictions and we discover that the workings Toyota” perception. Toyota spent US$1 billion in the relationships, people and personalities that
of this company are more akin to a mess of developing the Lexus and by reinventing shaped the brand’s development. It gives insight
contradictions. In the words of the authors: everything from the sales approach to the into how hiring skilled professionals with a
”..unearthing Toyota was like peeling an onion dealer and spare parts network. passion for brand success and customer
and never reaching the centre. After peeling a Everything about this successful brand was satisfaction is key, and hiring those same
number of layers, we came to realise that Toyota built around their very first marketing campaign professionals and encouraging them to get wildly
thrives on paradoxes, harnessing opposing slogan: “The relentless pursuit of perfection.” creative is also crucial.
propositions to energise itself.” Another fine example of their marketing Toyota clearly has an extremely unique
Six contradictory forces were identified that prowess is the 1999 launch of the Yaris in corporate culture and the kind of approach to
appear to keep Toyota on the move, and the bulk Italy where the market was flooded to maximise marketing that truly sets its brand apart.
of the book is devoted to explaining these forces. exposure. This is easily the twenty first century guide to
They are: About 400 demonstration models were made creating a flourishing global business.
The force of impossible goals available for journalists, compared to the usual
Eagerness to experiment 30, and the vehicle was advertised in 37 national Extreme Toyota: Radical
Local customisation and sports daily newspapers, in 311 television Contradictions That Drive Success at the
The founder’s philosophies spots, 600 radio spots, 4 300 billboards and on World’s Best Manufacturer
Toyota’s nerve system – A human version of website banners.
By Emi Osono, Norihiko Shimizu, and
the WWW In this book the best is certainly kept for last in
Hirotaka Takeuchi
Up-and-in human resource management. the form of the final chapter called: What your
John Wiley & Sons Ltd
If you think back to the 70’s and 80’s you will organisation can learn from Toyota: Ten powerful
R325
agree that the Toyota brand stood for, among contradictions.
It cannot be a myth,
but maybe a legend!
Another month, another deadline; but are great customers? That kind of complacency
this is my last article written from Jozi. Standing leads to fickle buying behaviour. And the adage
on my balcony in Hyde Park, the jacarandas are holds that when they have one good experience,
ablaze, the sun is high and bright, and I know a customer will tell one friend about it; but one
there will be days when I wonder why I swapped bad experience and at least 10 people are told.
the world’s most treed city for rain, wind and a For me, BMW is a legend, not so for Brendan!
half-finished mountain. Brands that offer more than just a transactional
What I am not swapping out is what I am experience will for sure benefit, because the
passionate about; I am just crossing the brand environment is about emotional
mountain, moving from my beloved advertising connections. We as marketers and advertisers
agency into a major South African retailer. To need to engage the consumer on a journey and
answer the question, simply because my ‘aha’ not just through pretty pictures. We need to
moment afforded me the shift, and since I engender dialogue – that’s a two-way stream of
haven’t been on the other side of the fence communication. Pushing and pulling, not just
since 1995, I could do well to go back in and talking at our consumer.
learn again! My younger son shops at Toys“R”Us, not for
I refuse to believe, as many of my clients in the toys but for games. When we go to Sandton
past have told me that customer relationship City, he is not remotely interested in the other
marketing is not as important as traditional brand stores. When I ask why, it’s simply because he
building and that as long as you have a brand knows he will find what he is looking for at
“
out there that’s well known, you will sell the next Toys“R”Us, and someone will assist him. I am
car. Acquisition is as important as retention, and assuming that when he is 30 and is shopping for
stemming the leaky-bucket syndrome has proven
Brands that offer more diapers he will stay loyal to the same store.
that you keep your communication costs down. I than just a transactional Toys“R”Us are legends, and I know exactly where
am still mystified when a client tells me our they are in Cape Town.
programme has not been successful because we experience will for sure The poor level of service at the South African
only got a 22 per cent response to our direct mail benefit, because the brand universities astounds me; they are ignorant of
or digital campaign. Seriously, in today’s age, their growing customer base. Have you tried to
that’s actually phenomenal. Ask them if they know environment is about navigate around the UCT website? I gave up.
how many responses their two-minute television I couldn’t find a form to download or a help
commercial pulled and you get the typical blank
emotional connections. section. Eventually, together with my matriculating
look. I have often wished I couldn’t be so scientific We as marketers and son, we went through hard copies of books.
and measure my campaigns, perhaps then I would Perhaps the universities should get with the digital
be more off the hook and less accountable. But it’s
advertisers need to engage age, stop cutting down trees, reduce fees and
not in my nature. the consumer on a journey service their potential customers. No one applies
One customer’s shocking experience with a to one university, they apply to many, and at
and not just through
”
brand might be the total opposite to another’s. some point bad service and an uncaring attitude
My successor at the agency drives the same will creep up on them. CRM at UCT is a myth.
pretty pictures.
make of vehicle as I do. I love my brand – it’s the CRM is not a myth, it should be legendary!
4th BMW I have owned and, to be honest, bar a Nici Stathacopoulos is the outgoing managing
couple of below adequate service issues not seri- partner of proximity#ttp, and is joining
ous enough to remember, I am a customer for, Woolworths as acting head of Customer
well, maybe life. Brendan, on the other hand, has after all Brendan’s second BMW, and he has the Marketing.
had such shocking product issues and service he potential of being a customer for a long time.
won’t touch them again. BMW needs to investigate Drill down into the issues, and it’s the dealers Nici Stathacopoulos
how to channel complaints into their owners’ and the manufacturer that are at fault. Does this 082 4559 868
circle management and deal with them – it is mean that as long as we have no problems, we nici@thetippingpoint.co.za
New horizons
They say that great things can come from which will carry SA forward. In fact, while the rest
adversity. Let us hope that this is the case as we of the world struggles to regain its composure,
face the side effects of a world recession, or now might be a very good time for local
perhaps more accurately, a global economic companies to adopt a more aggressive outlook.
stagnation. For once, being on the periphery As their multinational competitors may be
of world politics has probably helped SA to tempted to batten down the hatches, pull back a
dodge the full force that is being felt elsewhere little or disinvest out of some areas, this should
in the world. present the many local brands with a unique
One such example is the UK which is facing its opportunity to capture unprotected ground
worst banking crisis in years with the collapse of relatively easily. This has been proven by history;
various Iceland banking institutions who heavily when the likes of BP, Shell and even Caltex and
borrowed across the British business community. Total faced economic hardships and cutbacks in
The impact of this will be felt for years. In the US, the last decade, it was the likes of Sasol and
since October last year, investors have lost US$8.3 Engen who gained market share.
trillion from pension funds, college savings funds, There is another business opportunity
self-retirement funds and other investments. facing the advertising fraternity and that is the
Yet Janet Yellen, the chief of the San Francisco development of new markets whose interests,
Reserve Bank has only recently commented that sophistication and scope has been stimulated by
“the US economy appears to be in a recession.” the economic pressures as they have been forced
Perhaps she should run in place of Sarah Palin to look for new ways to generate business. Many
alongside the equally lacklustre McCain. of them have relied on an ongoing pipeline of
The knock-on effect of the US sub-prime tenders and government contracts, but with these
mortgage crisis a year ago continues to be felt drying up and the market becoming far more
the world over and has resulted in a bleak out- competitive, they have finally woken up to the
“
look for some countries, such as China and potential of marketing as a sales tool. Industries
India, which are likely to see the loss of millions I The Chinese use two in the business-to-business sector like professional
of jobs before this year is out. For other services players – lawyers, accountants, architects
countries this has resulted in some unprecedented
brush strokes to write the and the construction industry – have all started to
moves by financial institutions and governments word crisis. One brush flex their marketing muscles and show their
such as in Malaysia where they recently capabilities to compete.
announced they would guarantee all bank stroke stands for danger; So perhaps rather than heading for the
deposits for the next two years, following similar proverbial hills or giving in to the popular
the other for opportunity.
moves by Hong Kong and Singapore amid fears headless chicken variety of panic, the time has
about the health of banks. In a crisis, be aware of the come for marketers to show their mettle and do
So what does all this mean for marketers in what we have known for years we’re capable of;
danger – but recognise the
”
SA? For some, the impact of the world economic smart thinking and smart solutions. For some the
downturn has resulted in the direct contraction of opportunity. time may be one of recession, whereas for
consumer spending. This in turn has directly others, it represents the early stages of an
translated into budget cuts as boards scramble economic boom.
to assure profit targets and meet market As President John F Kennedy said in a speech
expectations. This may well cost some marketers in Indianapolis in April 1959, “The Chinese use
their jobs. For others, it will simply get a lot hotter two brush strokes to write the word crisis. One
in the kitchen. But then again, when wasn’t it hot brush stroke stands for danger; the other for
in the kitchen? The term ‘Hell’s Kitchen’ may be opportunity. In a crisis, be aware of the danger –
the name of a popular reality TV show, but for but recognise the opportunity.”
South African marketers, this has been the name African marketers will fare much better than their
given to one of the world’s most dynamic, European, American and Australian counterparts. Richard Duncan
challenging and exciting marketing battlegrounds. The central reason for this, in my opinion, isn’t founding partner, The Partnership
Looking in from the outside and listening in to the geographical isolation of SA as the web has Sydney, Australia
the boardroom conversations and hallway levelled the playing fields. Rather it is the +61 41 1549 791
whispering on this side of the world, I think South entrepreneurial flair and ‘never-say-die’ attitude richardd@thepartnership.com.au
17/09/2008
It’s 7:30am on the last of a three-day studio fashion shoot for Cavendish
Square’s Christmas guide. This has been a relaxed shoot, thanks to my
great team.
We’re looking at the past day’s shots and making final selections. My art
director and producer, Gaelyn, is taking every shot as an option, which
means that I’ve got loads of processing work to do.
At 6pm the famous last words of the day are announced – ‘that’s a
wrap everyone!’ I always let the client say it (it just sounds cooler coming
from them).
My assistants head back to the studio with me at 7pm to prepare for
tomorrow’s shoots and start processing hundreds of images.
18/09/2008 22/09/2008
I’m in the office by 7:30am to prep today’s Ford shoot, for Sports Illustrated. I meet the Harley-Davidson team at 7:30am; we grab some coffee, get
Cars and girls in swimsuits… need I say more. acquainted and discuss the game plan for the day. We’ll travel up to PE
We get to location at 1pm and wait three hours for the models to arrive. over the next two days with four motorcycle journalists. Once in PE, we’ll get
What started out as a summer’s morning is now a winter’s afternoon. Oh five journalists from Johannesburg to travel back down to Cape Town over
yeah, and to top it off I was brought a white car to shoot. two days.
Bad weather wraps the shoot up at 5pm. It’s one of those days when you We hit the road with nine Harleys and a support vehicle driven by our
do the best with what you have and pull something out of nothing. medic and me. After a lunch stop in Hermanus, I put on a jacket and
helmet, and get onto the back of one of the Harleys to get some bike-to-
19/09/2008 bike shots.
It’s 8:30am and I’ve just finished processing photographs and backing up At 4pm I download the photos: between the wind, vibrations, everyone
work. I need to finish preparing for a four-day press run/shoot up the and everything moving I managed to get some awesome shots.
Garden Route with Harley Davidson, which starts on Monday. We’re an hour away from Oudtshoorn and the sun has just set. I roll
My team is setting up the studio for tomorrow’s shoot for Beat It! – a open the van doors to take a few night shots; and photograph the riders
television show. while my body is suspended over the road.
We arrive at an amazing lakeside lodge at 9pm and sit down for dinner.
20/09/2008
I’m up at 7:30am and replying to an e-mail from a client in France, 23/09/2008
who’s thrilled with the photos I took for the Orange Communications I get up early to shoot the sunrise at a nearby dam. There are a few hippos
launch in Kenya. around, so I decide to set up for my shots closer to camp to keep it safe.
At 9am I head to the studio. My client is already in the studio. By 7:30 am, everyone is up, and we’re treated to something incredible –
I end the day having dinner with friends. The chatter calms my nerves and it’s elephant feeding time and we’re invited. Oh, yeah and I got some killer
I soon relax. shots too!
We hit the road at 10am and travel through the Baviaanskloof mountain
21/09/2008 pass (some great shots of the riders cruising alongside the van), before
After a 6:30am gym session, I pop into the office to reply to e-mails and stopping in at the Wolf Sanctuary for a quick lunch.
finalise preparations for tomorrow’s Harley-Davidson trip. At 4pm we’re driving down an amazing pass into PE. We enjoy a well-
I head home at 3:30pm to cook up a storm – stuffed chicken breasts deserved drink at a bar before I download the photographs and hand them
with ricotta, steamed vegetables with a light lemon butter marinade and a out to everyone. I finish up at 2am, wash my teeth, brush my face and fall
very nice bottle of red wine. into bed… I’m exhausted.
I then doze off on the couch in front of the TV. Eventually, I get up Tomorrow we’ll meet the journalists from Johannesburg and head back to
to pack. Cape Town over two more days. Awesome – I get to do it all over again!
Afrikaans insights
The Afrikaans market should be increasingly important to marketers
According to the AMPS 2007B report Sondag readers own a car,” he says.
South Africa’s 2.3 million Afrikaans people This market enjoys relatively high levels of
make up 59 per cent of SA’s four million whites. disposable income and enjoys buying luxuries.
In addition about 79 per cent of coloured “This market may have learnt its lesson with the
people speak Afrikaans as their first language, previous high interest rates and is therefore more
and 34 per cent of LSM 7 to 10 are Afrikaans
speakers.
“According to the latest AMPS and census
information, the Afrikaans language is the third
most spoken home language in South Africa.
It is also the first or second most spoken
language in six of our nine provinces,” says
Louise Jooste, marketing manager, RSG. Jooste
adds that 14.2 million South Africans read or
understand Afrikaans, and about 4.6 million of
these are Afrikaans.
“Although the Afrikaans market accounts for
only 14.9 per cent of the SA population they hold
almost a quarter (23.5 per cent) of spending power.
Over 48 per cent are more than 40 years old
and more than half are found in LSM 8 and 10.
So a significant number are Prime Timers,” says
Gavin Rheeder, Marketing Manager, Beeld.
The Afrikaans market is well worth marketing
to and is often underestimated. Retail, food and
clothing are big spend items for this market.
“Large and small appliances, furniture, clothing
and jewellery are items of note,” says Willem
Pretorius, Editor, Sondag. This is also a tech savvy
market and Pretorius points out that Sondag
readers, for example, show a high tendency for
hi-tech behaviour. “Eighteen per cent of SA’s total
population own a car, while 43 per cent of
Afrikaans media
The Afrikaans market is a major media consumer
especially the Internet, says Rheeder. Although,
when compared to other groups the radio is is 39.2 per cent of the market. This figure was
less important. just 1.2 million – or 26 per cent of the market in
“Ten per cent of Afrikaans people accessed 2002,” says Rheeder. Beeld is one of the top five
the Internet yesterday,” he says and he believes daily newspapers in SA, according to the AMPS
that Afrikaans consumers tend to be online. 2008A data. The paper reaches 1.8 per cent of
For example, the Beeld.com website is the the population and its regional reach is 1.6 per
second-largest newspaper website in South Africa cent in Gauteng.
and in August 2008 the site welcomed 318 000 Sondag, the tabloid Sunday paper that has just
new users. marked its first birthday, has undergone a
Mobile media is also taking off nicely. makeover to highlight the paper’s content and
“Beeld.mobi is also very popular when our readers positioning. According to its publishers RCP
don’t have access to either the printed or online Media, they commissioned Australian layout
versions of Beeld, such as when they are away on specialist Peter Ong for advice on how best to
holiday or business trips,” says Rheeder. amend the layout. The paper now has an
international tabloid look with more colour,
Newspapers larger graphics and celebrity and entertainment
“More than 1.8 million Afrikaans speaking news, making it easier reading for today’s time
people read a daily newspaper every day, which starved audience.
Magazines
Meanwhile one Afrikaans magazine is closing.
Mooiloop’s December 2008 issue will be the last
as it is failing under intense financial pressure.
Publisher Jacqueline Lahoud says in hindsight
she would do things differently. Originally, the
magazine was launched as Wegbreek – a
translation of Getaway but the market, which has
a core readership of 35+ Afrikaans readers LSM a lack of advertising support is forcing beyond the numbers. “There are not too many
9 and 10, wanted a standalone product. So the publishers Ramsay, Son and Parker to close the Afrikaans planners in the industry,” says Lahoud,
magazine responded with a distinct offering. magazine. Lahoud says that part of the demise of “and they book and plan for those titles that they
A re-launch in May this year saw the magazine the title was the fact that the magazine did not like, read, and have an affinity to.”
adopt its current title, which was in response to occupy a high enough spot on the media schedule. While the print title will close, the Mooiloop
research that showed the market was still She highlights the need for niche market website will remain and it will be tested as a new
confused by the magazine’s old title. In publications to market themselves more medium. The digital platform allows bloggers
spite of efforts to keep the publication afloat, proactively and for media planners to look and writers to continue to contribute, while loyal
readers will have the opportunity to interact with
an online format. Lahoud hopes that this will
draw on those readers who travel and share their
experiences online and she is confident that they
will garner sufficient advertising support for the
digital platform.
Radio
“The Afrikaans market tends not to listen to radio
and they are less likely to do so than other
language groups, says Rheeder.
AMPS data shows that the national and
regional Afrikaans stations are attracting
audiences that are in their mid-thirties or higher.
So what are young Afrikaans people listening
to? How are radio stations going to attract
younger audiences and build relationships with
future markets?
TV
Viewing channels like kykNET and MK89 are
drawing in Afrikaans viewers.
“On average the Afrikaans consumer views the
same amount of television as any other popula-
tion group. They are more loyal viewers when it
comes to local Afrikaans programming,” says
Theo Erasmus, general manager: Afrikaans
Channels (M-Net).
kykNET has seen a year on year increase in
advertising spend and in September this year,
kykNET had 73 000 viewers, which constitutes
a share of almost 16 per cent of DStv’s
Afrikaans market.
The DStv Afrikaans adult viewership grew by
25 per cent year on year while ratings were 59
per cent. This resulted in an overall 99 per cent
growth in the number of people watching.
Top Afrikaans programmes over the last
few months include Villa Rosa (AR 24.5); Kwela
(AR 22.8); Roer (AR 22.7); Doen Met n Miljoen;
Kruispad; Fiesta; Dis Hoe Dit Is Met Steve; Glam
Guru Make-Over; and Hester & Ester Bester.
“
mortgage website is linked to leading newspaper brand recall. To take click-through rates, for
sites or prominent financial trade bodies’ websites The dynamic nature of example, there is shown to be a larger gain
or those of other leading mortgage brokers, in the number of natural clicks when a brand
Google may consider those links more important
the Internet means users is in both the sponsored and natural listings,
than, say, a number of financial blogs with are only a click or two rather than simply the natural listings. This
relatively low readership. complementary relationship is also mirrored in
away from a competitor, ad and brand recall.
Sponsored: and if the experience of
an auction-based system Importance of website experience
These results are advertisements triggered by the your website is poor, Although search marketing is a great driver
query entered by the user and are generated of customer acquisitions, online advertisements
entirely separately in an auction-based system.
then consumers will are only as good as the websites they direct
AdWords, Google’s advertising program, allows turn elsewhere. Web users to. The dynamic nature of the Internet
advertisers to bid to appear next to a particular means users are only a click or two away from a
query with their related message. For example,
users value speed, competitor, and if the experience of your website
brokers looking to target first-time buyers may relevance and functionality is poor, then consumers will turn elsewhere. Web
”
wish to appear against queries like ‘first-time users value speed, relevance and functionality
buyer’, ‘mortgage offers for first-time buyers’ etc. above all else. above all else.
The ranking or positioning of these ads is
determined not only by how much an advertiser
is prepared to pay for a particular click (cost per Stafford Maisie
click or CPC) but by the relevance or quality of country manager for Google in
the particular ad. The more users that have South Africa
clicked on the ad in the past (click through rate adwords.google.com
Understanding
search
Questions to ask
your online agency
Share examples of previous work
to gauge their experience in your
particular market. Indications of
The (virtual) sky’s the limit for online and produce results. “It’s not a quick fix and clients’ ROI are helpful.
search activity as Search Engine Optimisation should be seen as an investment in the long-term Does your agency deliver the
(SEO) and Search Engine Marketing (SEM) rapidly health of an online strategy,” says Diane Charton, basics – improving spidering and
continue to gain momentum. general manager, Acceleration Media content discovery, information
Factors that affect natural listings include: The architecture, keyword research,
In a nutshell number of important websites that link to yours; content optimisation, link building,
The two different forms of online search activity – the ranking in other search engines; how often analytics and so on?
SEO and SEM – have become increasingly you update your site; whether all the links in your Does your agency follow Google’
important for the online business community in site work or not; the condition of your meta tags, Webmaster guidelines, which
the past few years. ie. the information on your website, which is built provide benchmarks giving
SEO is the process of increasing the volume into the HTML and is visible to search engine webmasters an understanding
and quality of traffic to a particular website, to crawlers, and/or the relevance of the content on of SEO. These guidelines are
improve the website’s ranking in a search. SEO your site, or the value of the site to the user. regularly updated by Google.
also optimises websites to make them more user On the other hand Search Engine Marketing Does the agency use Black Hat
friendly to search. “Search engine friendly means (SEM) is the buying of paid search listings on a techniques, ie spam etc. Search
informative text content that is accessible through pay per click basis. This allows companies to engines blacklist those sites that
an intuitive, consistent navigational structure,” drive the success of their websites and also implement these techniques.
explains Dr Carl Perry, head of Search Marketing means that they only pay when someone clicks What additional services does your
at Shake Interactive. “It’s about continuously on their ad, which means budget is not wasted. agency offer that may help the
adding unique content to make your site the This is also referred to as paid search. The organic search listings, such as
definitive ‘resource’ in your chosen niche so that Google AdWords programme ranks these blogs or linking strategy?
your peers and clients will link to your site. “These advertisements according to the relevance of the What results can you expect to see
links are counted as votes by the search engines ad, as well as the amount that the advertiser is and in what time-frame?
and a website with more links will tend to outrank prepared to pay. In this case the advertiser pays How do they measure SEO
a site with fewer links,” he says. each time someone clicks on their ad, in what is success? Your agency should
Natural or organic search, which is the search called the Pay Pay Click (PPC) model. provide you with reports of log
marketing that is based on SEO, is a process that “PPC also relies on keyword research and files, illustrating increases in traffic
takes longer to implement (between 3-6 months) content, but usually the content for a PPC or conversions.
1. Create an attractive homepage with clear links to other parts of your site. It allows for targeting by relevance.
2. Direct potential customers, don’t just send them to a generic homepage and “Searching is the most common way users
expect them to find the relevant page from there. find sites online,” says Charton. “A user
3. Supply clear content that is well laid out, with titles relating to the content and declares his intention by typing his query or
ensure you develop a ‘sitemap’ so people can easily navigate the site. Or embed key word into the search engine. For this
a search box from a search engine to help users find relevant content on your reason search gives marketers the opportunity
site. The text on the website should read naturally and avoid trying to ‘spam’ the to place their messages in an environment
site and trick the algorithm by ‘stuffing’ keywords within the text. that is relevant to the user,” she says.
4. Include helpful sections such as ‘Contact Us’ or ‘About Us’. It allows for targeting consumers more
5. Constantly update your website. Message boards and community forums are a precisely. Rob Stokes, CEO, Quirk
great way of keeping the site engaging, while building up a community around eMarketing, says that while we may only have
your brand. News feeds and relevant video or audio content (in moderation) a 10 per cent Internet penetration, there are
also interest users. still more Internet users than the population of
6. Keep the user’s perspective. A simple measure is to host a feedback section or Ireland. And these users are working full-time
forum on the site, or for smaller or independent businesses ask colleagues, or have the disposable income to afford con-
friends and family to try out the site and give you feedback. nectivity at home.
7. Engage in deeper analytics. There are many tracking programmes available that Has high measurability.
tell you how many visitors you get, where they come from and what they like Can be integrated into online and offline
about your site. Make sure the site can be adapted easily for the visually campaigns.
impaired and those users searching for your site from a mobile or other
handheld device. Creating a campaign
The following steps must be taken to create and
manage a campaign:
campaign can be more concise, with a clear and “PPC also brings targeted traffic within a few Define your business objectives and ensure
much more direct call to action,” explains Dr minutes after you’ve turned the campaign on, but that your online agency understands these
Perry. It is not unknown for PPC ads to take users as soon as you stop bidding the traffic flow upfront. Define the key success events you
directly to an application form, whereas it’s stops,” he adds. hope to achieve through your search
unlikely that an application form would rank in Why search marketing? campaign. Remember that it requires long
Google’s natural results for any useful keywords. Globally marketers are buying into the medium and term planning. “Unlike traditional media,
“
affirm the values of the target audience and in so on its audience. The artistry of this resides within
doing the emotional response to the sponsor’s Whenever companies understanding people and responding to their
brand becomes personal. So the sponsor’s brand emotions. Companies need to tune into what will
goes beyond recognition to become integral to build a relationship make the difference to an individual person, while
the emotional support the audience has for the with consumers on a broadly striving to cater to the emotional drivers
national cricket team, for example. Therefore this of their target market.
emotion is leveraged to full capacity to achieve personal level through Whenever companies build a relationship
mass support for the brand. with consumers on a personal level through
direct communication, it
Sponsorship triggers emotion that ignites the direct communication, it triggers a positive
passion for a brand by delivering experiences that triggers a positive emotion emotion in the hearts and minds of the individual,
add value and meaning to peoples’ lives. It takes time and time again. They are likely to gain
them on a journey with the ultimate goal of
in the hearts and minds of the on-going support of that individual and
feeling part of the brand itself. the individual, time and everyone they know. Once cemented, the bond
”
To maintain this audience connectiveness with that the person has with ‘their’ brand is unlikely to
the brand, new experiences must be introduced to time again. be broken.
the audience to keep the brand alive in their
consciousness. To achieve this imagination, Nicci Columbine
creativity and innovation are required to create managing director
those ‘magic moments’ that allow the brand to Columbine Communications
touch people and achieve resonance with who (011) 880 8137
they are and what they want from life. info@columbine.co.za
(nevermind being practicing marketers) measures, metrics and ROI,” she says.
qualified as Chartered Marketers, and Long serving marketers will soon be
enjoyed the perks of this status and recog- recognised by two new designations,
nition, with no benefit to the industry. namely that of Honorary Chartered
With the backing of the South African Marketer, and Lifetime Achievement.
Qualifications Authority (SAQA), the The empowerment of the Chartered
Services SETA has established certain Marketer status goes beyond recognition
standards and requirements (one of those of high standards and ethical practice. It
being that the individual must be a cur- also has to do with a high exposure to
rent marketing practitioner). Through CPD activities that extend and develop
these regulations and requirements, the existing knowledge and skills. “Chartered
Services SETA holds these marketers Marketers also benefit from being
accountable for their conduct and their networked, so via the European
ethical behaviours, and thereby uplifts Marketing Federation, they are recognised
and upholds the highest of industry stan- as being players on the same level as
dards, as recognised on a global scale. those across 17 countries. Plus, they are
“This is not for the paper chasing, glory registered with the European Union
seeker,” says Blumenthal. In fact, he National Records Database, and are
stresses that the criteria that the Services recognised as possessing high levels of
SETA has stipulated as requirement is competence,” explains Blumenthal. This
Michelle Perrow, CM Communications Consultant
challenging; it’s about evidencing current, means that when these qualified
strategic practice. For this reason, they are marketers tender for international briefs
expecting a certain number of applicants and projects, they are doing so on a
to drop out of the programme; however, basis equal to those of their European
it is expected that between 50 and 70 of counterparts. “The standards of
the 100 individuals that express an international direct marketing in respect of
interest in the programme on a yearly strategy, data-ability and campaign
basis, will become registered. “It’s not an execution are to be admired. Carrying
automatic status – the registration and the CM status demonstrates mastery in
qualification is a thorough process,” direct marketing, and will place our CMs
says Blumenthal. in a sought-after position,” explains Perrow.
According to Perrow, the content and “Our Chartered Marketers are amongst
the focus of the direct marketing elective the best marketing practitioners in
will cover both the art and science aspects South Africa. Through this programme,
of direct marketing. CMs will cover data they are recognised as such, and
and all related aspects, from database encouraged to continue in that vein,”
building to scrubbing techniques and says Blumenthal. Our CMs with a direct
analytics. Digital media and its structure focus are those individuals who will lead
and direct characteristics and usage will direct marketing into the future, says
be explored, as will the operational and Perrow. “Based on the rate of new
For more information, visit
campaign implementation aspects. “In technologies we will shortly be using, the
http://www.serviceseta.org.za, or contact
short, at senior level, CMs will delve into future of direct marketing will look quite Dharmisha Govind, tel (011) 276 9600
all components, channels and outputs, different to direct marketing as we know it e-mail dharmig@serviceseta.org.za
At the end of my last article I wrote that sells shoes. No one makes any value judgements
over the next few issues I hope to demonstrate about that. I think it is safe to infer from this that
that we as mainstream marketers and direct an ad agency is called an ad agency because it
marketers have far more in common than we think. creates and sells advertising. That is what it does.
So let’s start with some of things that we ought to Here’s the bit that may get some of the ad
be able to agree on. Both groups want lots of guys upset. There is an old saying: ‘If you only
customers to spend more money more often. They have a hammer everything looks like a nail.’ I
hope that not too many customers will defect. can push that thought a little further. Making an
They also hope that some of these customers will assumption that advertising is the sole solution to
tell their friends about their good experiences. You all communication problems is like having a tool
can summarise this under the heading of kit with only a hammer in it. What about the
Customer Acquisition, Retention and Growth. spanners, pliers and screwdrivers?
The chances are also good that you want your There will always be a need to build brand
customers to like you. That falls under the heading identity and brand equity. Someone has to be
of Customer Relationship Management. So the brand custodian. In most instances I am
whether you are a mainstream marketer or a comfortable with the ATL guys playing these roles.
direct marketer there shouldn’t be too much to There are instances where these roles could be
argue about there. executed by a direct agency (for example, where
So what’s the big deal? And why are these two the target audience is easily defined and small or
groups often so polarised? when the client’s budget cannot achieve critical
Marketing today is analogous to driving with a mass with ATL media). There are also occasions
GPS, a handy tool for getting from point A to when the audience can be identified, when the
point B. But as anyone with a GPS can tell you, margins are high and the product or service
you can select the shortest or the most direct offering can be differentiated. This I believe is
“
route. The point being that there are many ways DM territory.
to travel from A to B. So let’s start by agreeing I don’t believe it Using the wrong tools for any job is akin to
that much of the debate between the two schools putting out fires using a chocolate fire engine.
of thought ought not to be about where we want should ever be about us What I am proposing here is called Integrated
to be but how we intend getting there. Marketing Communication (IMC ). It was first
(direct marketers) and
I am talking here about the marketers... the mooted by Don Schultz in the late nineties. It was
guys and gals who need to flog all those products them (the ad guys). And it subsequently described by Laura Lake as: “A
and services that surround us every day of our process that is designed to make all aspects of
lives. We mustn’t confuse the marketing guys with
probably ought to start marketing communication such as advertising,
the advertising guys. I’ll get back to them shortly. with clients asking question sales promotion, public relations and direct
At the beginning of this article I put a few ideas marketing work together as a unified force.”
on the table that we ought to be able to agree like how are we going to I don’t believe it should ever be about us
on. Here’s something else that ought not to ruffle (direct marketers) and them (the ad guys). And it
get more customers to
too many feathers. We should pursue those probably ought to start with clients asking ques-
objectives that I articulated with optimal leverage. spend more money tion like how are we going to get more
Leverage is the application of minimum input to customers to spend more money more often at
more often at the lowest
”
achieve maximum output. In the case of marketing the lowest possible cost?
this means looking to optimise budget use. Or as possible cost?
an old boss of mine used to say: “Any bloody fool Keith Wiser
can spend money. The trick is to be smart.” MD, 5th Dimension
Now let me turn to the ad guys. The reason (011) 781 6396
they call a shoe shop a shoe shop is because it keithw@5thdimension.co.za
“
and the right to fair and reasonable marketing, any direct marketing without reason or penalty by
all of which contain provisions which relate to notice to the supplier, in writing, or in another
direct marketing. The Bill introduces a recorded manner and form. This should be done
There are three main ways in which the Act will cooling-off period. A within five business days after the date on which
seek to protect consumers from direct marketing. the transaction was concluded or the date on
Firstly, by enabling consumers to ‘block’ direct consumer may cancel a which the goods that were the subject of the
marketing; secondly, by implementing time transaction were delivered to the consumer,
periods within which direct marketing may be
transaction resulting from whichever date is later.
conducted; and thirdly, by providing consumers any direct marketing A supplier must return the monies paid by the
with a cooling-off period. consumer within 15 business days after receiving
without reason or penalty notice of the cancellation or after any goods
Blocking by notice to the supplier, in supplied to the consumer are returned. Although
The new Act will introduce a commission which the supplier may not collect any payment in terms
will establish and keep a registry for consumers to writing, or in another of a cancelled transaction, they may collect
register pre-emptive blocks, either generally or for payment in respect of goods that have been
recorded manner and
”
specific purposes against communication from changed, the amount of which will depend on
marketers that is primarily for the purpose of form. the severity of the change to the goods.
direct marketing. Furthermore, a consumer who is These protection measures are to be welcomed
approached for the purpose of direct marketing and will, no doubt, assist in the decline of spam,
will be able to demand that the marketer desist unsolicited phone calls and text messages. It will,
from initiating any further communication. of direct marketing to a consumer who has made however, make it more difficult for marketers who
The Minister of Trade and Industry will be such a demand or registered a pre-emptive block. rely on these forms of communication and, more
responsible for prescribing regulations for the Marketers are prohibited from charging consumers importantly, this form of marketing.
operation of the registry. However, the marketer for complying with the above provisions.
will also be responsible for implementing
appropriate procedures to facilitate the receipt of Time periods Rachel Sikwane
such demands from consumers as well as to The second manner in which the Bill seeks to Associate, Bowman Gilfillan Inc
ensure that it does not direct or permit any protect consumers is by preventing suppliers from (011) 669 9624
person to deliver communication for the purpose engaging in any direct marketing directed to a r.sikwane@bowman.co.za