MarketingMix

I 0 2 I Ed’s note I 0 4 I Global mobile trends
Mike Wehrs, president and CEO, Mobile Marketing Association (MMA) shares some insights into the growth of mobile marketing and media worldwide

Contents
I 3 0 I Mobile measurement
Raymond Buckle, CEO, SilverstoneCIS, discusses what (and how) to track, in a mobile marketing campaign

I 3 2 I Channel selection
Chris Rolfe, CEO, Mobilitrix, shares some tips on how to select the right mobile media for your campaign

I 0 5 I Local mobile trends
Rick Joubert, executive chairman, Yonder Mobile Media, looks at the development of mobile media in SA

I 3 3 I How to: mobile video
Get to grips with mobile video

I 0 6 I How to: mobile database
Understand how to get your database ready for mobile marketing

I 3 4 I How to: social networking
Learn more about mobile social networking

I 1 7 I Mobile summit
A reportback from the 2009 Mobile Marketing Summit

I 3 6 I Research 10
Market research gurus explore the hot new technologies and methodologies that are shaping market research

I 1 8 I How to: SMS
Get to grips with SMS marketing

I 4 4 I 7 Day [B]itch
Cheryl Cooke, group marketing executive: Corporate Marketing Services, Ellerine Holdings Limited (EHL) explains why she cannot do without her Blackberry

I 2 0 I How to: MMS
Learn more about MMS, and its marketing capabilities

I 2 4 I How to: mobisites
Pick up top tips on the creation of winning mobisites

I 4 5 I Expert opinion: Nici Stathacopoulos
Nici talks 1-2-1 marketing

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I 2 5 I Partner selection
Cliff Court, chief technology officer, Grapevine Interactive Marketing, explains what to look for in a mobisite developer

I 4 6 I Expert opinion: Neil Jankelowitz
Neil looks at who scored, and who missed, at the Confeds Cup

I 2 8 I How to: mobile apps
Learn about mobile apps, and how to get them going

I 4 8 I Expert opinion: Danie Petzer and Adele Berndt
Danie and Adele find out about technology readiness

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Database: List Perfect

Cover design: SilverstoneCIS

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www.marketingmix.co.za
vol 27 / issue 9/10 / 2009

3 292 (Jan-June 09)

marketingmix.co.za

Ed’s note

Ta-dah!
It’s the 2009 Mobile Marketing Guide, packed with all the info, insights and tips you need to get your mobile campaigns going. This is truly a must-read for anyone who wants to understand not only how all the elements fit together, but also what it all means for marketing and media. What’s fascinating is that there is so much that brands can do with mobile media – the sky’s the limit, really. And what is becoming clear is that content is key, but actually, it’s relevance that’s the biggest driver. That’s why the mobile database is the Holy Grail; if you know what your customers like, don’t like, where they shop, when and how, what movies they like to watch and whether they have a large dog or a lapdog that wears a bling collar, you’re able to really engage them. This is followed up by Research10, an annual guide to market research in South Africa. We get the low-down from industry gurus about how new technology (online, social networks and mobile, among others) is taking market research to the next level. It’s interesting to see how eye tracking, behavioural observations, neuroscience and cellphone surveys are increasingly finding a credible (and very meaningful) place in the world of market research, and are helping researchers to get a better understanding of WHY a consumer behaves the way they do. I’ll certainly be more careful of what I am subconsciously doing while pushing my trolley around the local supermarket – who knows if a researcher is watching! And with that, I bid you a fond farewell – this is my last issue as the editor of Marketing Mix. It’s been a pleasure getting to know you all, and learning about the fabulous and dynamic industry that is marketing. On the up side, I now know a great deal about marketing and communications. On the down side, I can’t watch TV ads without pondering what the brief was about, and who the target consumer is, and whether the ad reaches the consumer in the right frame of mind… oh well, at least I’m not a passive consumer!

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Adieu!

Marketing Mix wishes to thank Vodacom for its sponsorship of the Mobile Marketing Guide.

marketingmix.co.za / vol 27 / issue 7/8 / 2009

Global trends

Mobile marketing: The global picture
By Mike Wehrs, president and CEO, Mobile Marketing Association (MMA)

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t’s widely accepted that the communications landscape is giving consumers and brands more choices than ever before. Today’s consumers no longer solely rely on the broadcast and publishing industries to keep them informed and entertained. Instead, they demand instant access to news and information when and where they want it. This change in consumer behaviour is driving brands to change their marketing strategies. As new communication mediums and tools become available and marketing budgets worldwide come under pressure, brands are looking beyond ‘traditional’ channels and are actively using a variety of channels to have the best ways of engaging with the consumer. When looking at a variety of communications channels – print, radio, television, online or outdoor – it becomes immediately clear that mobile, like no other channel, has the ability to make these traditional communications channels truly interactive and dramatically improves their effectiveness. Mobile is a unique marketing tool, allowing brands to target communications to the consumer, tailoring and personalising offers as well as achieve a higher rate of conversion. It represents the one communication channel that lets the consumer control, encourage and define the interactions with their chosen brand – anytime, anyplace. The competitive nature of the mobile industry means that it is continuously developing and improving. Ever-improving handsets, smartphones, larger screen size, better Web browsing capabilities, longer battery life and ‘all you can eat’ data packages are leading to the explosion of consumer mobile use for more than just voice and text. In turn, this presents brands and advertisers with a wealth of opportunities to establish an emotional and interactive engagement using rich, immersive content platforms. Mobile’s targetability, reach, location awareness and direct, interactive link with the consumer makes it the only real way for marketers to deliver on the promise of effective one-to-one marketing. The delivery of relevant, tailored and timely messages offers high conversion rates and attractive returns on investment. Thus mobile is an effective method for the achievement of campaign objectives from customer acquisition to retention, brand awareness and engagement. It’s far more personal than television, print, radio or Internet and, importantly, is always on and always available. Mobile is rapidly gaining ground in the marketing industry across the world with a multitude of tools on hand for advertisers to strike the right note with the consumer. There are a number of key mobile technologies that are driving mobile marketing forward – and pointing to its increasing success. The mobile Internet, downloadable applications and customer service-based features have all come into play and remain areas to watch. Within these technologies are a number of core tools that brands can harness. SMS, for example, the ‘traditional’ medium for mobile marketing in its earliest stages, remains strong and is a now a well-established channel which
marketingmix.co.za / vol 27 / issue 9/10 / 2009

mobile users are both familiar with and reliant upon. It remains one of the most simple, direct and measurable mediums of brand-to-consumer marketing. When coupled with tools such as vouchers or coupons, brands are able to provide a value-add for the consumer, creating a dialogue and offering a tangible product that enriches the overall brand experience. The rise of App Stores is an extension of this brand-to-consumer dialogue and has already been used by a host of brands as part of their marketing strategies. Mobile applications downloaded directly to the handset provide the user with an enhanced product experience, offering additional benefits in the form of unique content, for example, free music to download, exclusive product demos, games to keep or mobile accessories. In short, this combination of SMS coupled with emerging mobile technologies such as location-based services or presence will really see mobile come into its own and position it as a core tool for brands to further develop direct conversation with consumers and offer a more immersive interactive experience. For mobile marketing to succeed on a global level, marketers, advertisers, brands and everyone else in the ecosystem need to recognise the unique opportunities and advantages of mobile and make their marketing messages personal, targeted and relevant to the consumer. Whatever the message, whatever the brand, ultimately it’s all about the consumer. K

Local trends

Mobile marketing in South Africa – a high level overview
By Rick Joubert, executive chairman, Yonder Media

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n June 2009 Arthur Goldstuck (World Wide Worx) in an update to an earlier report, noted that there were approximately 37 million human cellphone users in SA – representing a population penetration of 77 per cent. South Africa continues to be a mobile marketing pioneer: consistently in the top six markets (by volume of mobile advertising impressions) of the major global mobile advertising networks like AdMob, Buzz City and Mkhoj (who between them serve close to 500 million monthly advertising impressions to SA) as well as the dominant independent mobile web browser, Opera MINI. Further, home-grown mobile social media services like MXit and Vodacom’s The Grid never fail to draw admiration from international peers and also continue to grow beyond the South African market. It is a little disappointing that with the exception of Vodacom, other mobile operators in SA have not yet invested in any meaningful way in the development of the mobile marketing industry; they occupy such an important place in the mobile media value chain and have control over a range of high-quality advertising inventory. It is, however, great to see the large media companies and publishers visibly working toward integrating mobile into their offerings and in some cases looking to actually publish their content to mobile. We are not only seeing the print media players entering this space but increasingly also the broadcasters – look out for permanent mobile integration into many TV and radio executions in the near future. This activity is not surprising: although developing markets like SA lag behind the industrialised world in terms of the share of advertising spend going to new media at the expense of the traditional media, the actual trend is no different – while advertising budgets are flat or shrinking, new media channels like Web and mobile are growing at rates north of 30-40 per cent per annum. Today, in SA there are well over 10 million unique monthly users of the mobile Internet (broadly defined) compared to just over half that amount for the PC Web. More important is the fact that the overlap between these two access channels is quite small – less than 30 per cent of regular mobile Web users have easy access to the PC Web. In addition, MXit (July 2009) reports over 14 million registered users (MXit does not report unique monthly users) and Vodacom’s Please Call Me ad tags reach on average about 23 million unique SA users across all cellular networks, every month. I estimate that approximately one third of SA advertising and media agencies have a dedicated mobile resource, normally as part of a ‘digital’ or ‘new media’ team; agency attitudes to mobile are shifting, with the understanding of its massive potential in this market.

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The recent establishment of a South African council of the global Mobile Marketing Association (MMA) has, as at end August 2009, attracted close to 30 member companies most of which have become actively involved in supporting the development of four key priorities: mobile marketing standards and formats; measurement; and training and networking/PR. So far, only three large mainstream agencies have committed to the local MMA so the advertising industry is under-represented and is at risk of missing a great opportunity to help shape the development of the mobile medium. At Vodacom, close to 70 per cent of mobile media revenues originate from agencies as opposed to brands direct – a sign of a medium fast gaining acceptance. The 2009 Loeries advertising awards has for the first time also included a mobile advertising award. In addition to driving innovation, and enhanced user experiences in publishing and advertising, mobile is also having a significant impact on processes related to customer service as well as commerce (mobile wallets), both of which are key in the overall marketing value chain. We will look back at 2009 as the year that the chasm between the early adopters of mobile media and the early majority (mainstream agencies and brands) was crossed: the year that the 7th mass medium reached a tipping point. K
marketingmix.co.za

vol 27 / issue 9/10 / 2009

How to: mobile database

Setting up a mobile database
o start ‘doing’ mobile marketing right, the first step is to find a service provider that has the actual technology and systems needed to create, send, receive and process mobile marketing messages (SMS, MMS, and so on). They should also be able to collect and store as well as relay back information about the target market as generated by campaigns. This information needs to then be added to an existing database. The next major priority is developing a database that is mobile marketing-ready. Initially, the information in this database must at a minimum include the full name and cellphone number of each target market consumer. If cellphone numbers are missing, run an SMS-to-win competition, for example, (see page 18 for more info), or send a link to an interactive voice recording (IVR) that prompts customers to update or confirm their details in exchange for an airtime top-up, perhaps. There are a few simple ways to establish a mobile database from scratch. Run a competition, for example, using mobile entry mechanisms (SMS short codes or USSD) to capture the

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How to: mobile database

full names and cellphone numbers of a consumer group. Partner with a company or brand that already speaks to those target consumers and share its database; just be sure to follow the rules set out by legislation and codes of conduct governing a consumer’s right to privacy and protection of personal information.

Warning: Always remember the consumer’s million-dollar question: what’s in it for me? Whatever it is that the consumer is being
offered has got to be really exciting, or else it’s just not worth their effort (or the R3 it will cost them). For this reason, the Wireless Application Service Providers Association (WASPA) Code of Conduct encourages members to state clearly, upfront, what the cost of the interaction will be for

A database should not be just a list of cellphone numbers and it should become the backbone for a potentially rich database – one that yields a profile for each contact: where they live, where they shop, their favourite ice cream, whether they are married or single, and so on.

the consumer (cost of entry, cost of subscription or service, and cost of competition prize delivery, for example). Also, if they do interact, remember cellphone marketing etiquette: the consumer should get an automatic reply SMS, to thank them for the interaction.

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A mobile media company can also be approached for its database; simply define the target market (demographics, location etc), and what is to be sent, and the mobile media company should do the rest. There is also the option of going to a reputable list agent to get a database of consumers. “You can pre-populate a profiled, opted-in database and then ask questions relevant to your brand or product,” says Fiona Smit, managing director, Yonder Mobile Media. For example, if you know the name, age, gender and location of those listed on a database, you don’t need to ask these questions again. Instead, simply ask brand-related questions such as where is your nearest Pick n Pay outlet? “This way you can keep the profiling process short, simple and relevant to the consumer, and gain valuable information for the client,” says Smit. First prize in the database-building stakes is getting consumers to opt in for mobile communications from the start and to build this info into a database. This one’s tough – few brands have that kind of appeal. But for a live sports results service, for example, it is a viable approach as consumers want to receive this sort of info on the go.

point, it becomes possible for a chocolate brand that wants to target women living in Morningside, Sandton, with a special two-for-one chocolate bar offer at their local Pick n Pay on a particular day of the week, for example, through a simple SMS. Building this sort of database isn’t rocket science; it’s simply the understanding that customers need to answer questions about themselves to fill out the database, and layering this with other available data (such as retail till data, for example, or information from the cellphone networks about the consumer’s cellphone) can paint a three-dimensional picture of each contact. “One way is to add intelligence to your database over time by asking questions at every touch point with your database (what I call drip-irrigation interrogation), thereby learning about your database on a continuous basis,” says Candice Goodman, managing director, mo-B. A database should also provide more information about consumers’ cellphones so campaigns can be planned ahead – knowing whether each consumer’s handset is MMS enabled (and whether this functionality is switched on), and whether it is WAP enabled (this impacts on ability to browse the mobile Web). Other factors to think about: ensure that whatever is sent to the database will display correctly on consumers’ phones (screen sizes and resolution as well as software need to be verified). The networks have this information, so check the database against their records. K

Jargon got you?
You might hear mobile marketing geeks refer to mobile messaging as A2P or P2P. Just so you know, A2P is the acronym for ‘Application to Person, and refers to messaging that is sent by a business or company to the consumer’s phone by means of an automated application. This allows for the distribution of content and information or for search and inquiry services (such as an SMS that invites the recipient to ‘click to call’ or ‘click to book’) as well as for interactive services (such as ‘click to vote for your favourite Idol’). P2P (person to person) refers to those messages that one consumer sends to another, which may carry advertising messages. For example, a brand can purchase advertising space in Vodacom’s Please Call Me messages, which users send to one another.

Rich database = successful campaigns
A database should not be just a list of cellphone numbers and it should become the backbone for a potentially rich database – one that yields a profile for each contact: where they live, where they shop, their favourite ice cream, whether they are married or single, and so on. It almost goes without saying that having data this rich, makes segmentation and the creation of highly targeted and relevant communications a walk in the park. To reiterate the

marketingmix.co.za / vol 27 / issue 9/10 / 2009

Mobile summit

Mobile marketing summit: showing mobile success
he Marketing Mix Mobile Marketing Summit and Mobile Solutions Showcase shed light on the mobile market in SA. Rick Joubert, co-chairman of the Mobile Marketing Association (MMA SA) reports that there are over 50 million cellphone connections in SA of which 37 million are individual users. That’s about 77 per cent population penetration. It’s not surprising then, that Raymond Buckle, CEO, SilverstoneCIS, says that in SA, mobile is the first response channel, allowing for both reach and richness. According to Brett StClair, country manager: South Africa, AdMob, SA is in the top five highest impressions in the world. The AdMob network, which, simply put, is a mobile advertising network, allowing brands to advertise to consumers on the mobile Web, served 140 million impressions in SA in June 2009. The local mobile market is estimated to be worth around R200 million, says Joubert, and agencies are slowly starting to understand the mobile space, with the big spenders being financial services, mobile entertainment, handset brands and FMCG brands.

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Who’s on mobile?
The prime age for mobile is 13-33 years, says Tanya Howard, product manager: Mobile Advertising, Vodacom. Teens and youths are big business for mobile brands, given that they are a large market and early adopters of new media. But they don’t spend a lot on their phones, so they may not grow profits. The majority of SA’s population still uses text services. In fact, SMS and conversational marketing is on the rise, says Dr Piet Streicher, managing director, Bulk SMS. That said, the evolution of the mobile Web is one to watch. There are over 10 million mobile Web users across the networks in SA, which is far greater than the number accessing the fixed Internet. As Gustav Praekelt, CEO, Praekelt Consulting, explains, 1.7 per cent of the SA population uses broadband Internet, while 3.9 per cent use WAP (Wireles application protocol, Internet access via a cellphone).

considered. Tyler Reed, founder and director, TinyImpact, says that user information can be mined to deliver campaigns that are more relevant. Device targeting is a great starting point as it defines the call to action that the user can receive. The make and model, the operating system, its messaging capabilities and browser capabilities as well as multimedia capabilities are all factors to be considered. Ahmed Kajee, managing director, Cellsmart, says when measuring mobisites, it’s about measuring click throughs or impressions, while MMS and real-time voice messaging are much like TV advertising: you can be pretty sure that if your database is accurate, most of the target would have received your ad. All measurements should include the basics: reach, frequency, penetration and so on, as well as cost per lead, conversions and ROI, and also brand measures (brand equity, awareness and loyalty), says Kajee. Remember to track beyond the clicks and focus on conversions too. Says Kali Ilunga, founder of Spoken Ink, campaigns must deliver something that has value in the real world. So while a mobile game is cool, a mobile shopping voucher is even better. Speaking of shopping, mobile banking and commerce are also being boosted by the rise of mobile technology and its adoption.

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Mobile commerce and banking
Mobile applications are increasingly being used in the world of retail and banking. As Derek van Wyk, manager: Marketing and Product, TransUnion Credit Bureau, points out, cellphones are allowing for fast and accurate credit scoring, and mobile authentication that prevents fraud. As Praekelt says, mobile is allowing even unbanked communities to make payments.

Mapping
Location-based services and mapping technology are enjoying massive growth. Lorraine Deane, new media development manager, MapIT, refers to increasing demand from consumers for maps available via mobile. But these have potential for brands too. Brand icons in maps, for example, or MapAds (dynamic ads in the map) will put a brand into a map easily. Geo-targeted ads, such as those by Nandos on Vodacom’s The Grid (a location-based mobile social network) offer opportunities for brands to reach consumers. “Users are not bound by their physical geographic boundaries, and top users are in around 230 locations each month, says Vincent Maher, portfolio manager, Social Networking at Vodacom.

Lower LSM
Craig Irving, founder, Consumer Insight agency (CIA), conducted research on behalf of Soccer Laduma, on cellphone use by LSM 4-8 black men. This market is not thrilled with mobile services, since they are not giving them the best user experiences. For example, mobisites with large banners, which take a while to load, and then force the user to scroll down. These are very costly for this consumer segment (which knows exactly how much – to the cent – it costs them to send an SMS or surf the mobile Web). Jargon, such as the terms ‘WAP’, ‘hyperlink’, and so on, is another issue, and one that makes mobile surfing more complex for this market. This sort of insight is key in planning and managing a mobile campaign.

Trends to watch:
The emergence of the mobile application Internet Location G The mobile wallet and mobile payment solutions. Look out too, for major growth from the lower end of the market. K
G G

Campaign management
When it comes to planning and managing campaigns, the experts agree that SA mobile campaigns need to be more carefully

vol 27 / issue 9/10 / 2009

marketingmix.co.za

How to: SMS

SMS
S
hort message service (SMS) is – aside from voice calls – the most ubiquitous mobile format, since all handsets are capable of sending and receiving text. SMS is a dynamic tool, given that it includes simple text, short codes, premium rated SMS and USSD.

SMS text notifications
These are the simple text messages that stores such as Edgars, for example, use to remind their club members of a sale. Small businesses use these to remind customers to make account payments, for example, or to remind clients of their appointment. To set this up, the marketer will simply take their database of customer or target cellphone numbers to a mobile media service provider, who can then create and send the SMSes. By segmenting the database, the marketer can also target the SMS notifications. These SMS notifications generally should not cost the consumer (unless the notification is part of the service offering of a company and is built into the service and admin fees charged to the customer). In sending SMSes, the major cost consideration is around the volume to be sent, and thus the cost per SMS. Generally, the more SMSes sent, the cheaper the cost per SMS, with rates per SMS anywhere around the 30c-R2 mark. Some service providers have an SMS credit system (the marketer sends as many SMSes as they would like until they’ve spent all their credits).

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The consumer must know what the costs are upfront, and the WASPA code of conduct dictates that if the total cost of a service exceeds R200 in one calendar month, then the consumer must be contacted so they can confirm that they will accept the billing costs.

encouraged to rent a shared short code (ie a short code that is being used by more than one brand or company) for the duration of their campaign, rather than using a dedicated short code. Each campaign on a specific short-code channel is differentiated by the keyword used to activate it (the keyword is typed into the SMS by the consumer in the entry process). Depending on the particular short-code number, the consumer pays anywhere between standard SMS rates 80 cents) to R20 per short-code SMS. These costs are pre-set, and are allocated to specific short codes; what’s more, clients can expect to take up to 50 per cent of all revenues made, while the WASPs and the cellphone networks pocket the rest. Be aware that the costs associated with short codes could be a barrier to entry for some consumers. Be aware too, that the Wireless Application Service Providers’ Association (WASPA) code of conduct (available on its website – www.waspa.org.za/code/codeconduct.shtml) dictates that these costs need to be stated clearly in promotional material. Be aware that aside from the regular short-code rental fee there may also be a once-off activation fee. “Furthermore, consider the service costs for account and campaign management and any specific technical or other requirements that you may have,” says Ahmed Kajee, managing director, Cellsmart. The more complex your data management needs, the more costly it is.

Premium-rated SMS
A premium-rated SMS costs the consumer more to send than a regular SMS. These are used in competition entries or to facilitate participation in particular events (such as the Idols voting), to subscribe to a service (such as weekly ringtones or mobile games) or to make donations to charities or causes. The consumer will send an SMS to a particular short-code number to initiate any of the above at a premium cost that ranges anywhere up to R150. Again, consider the higher cost of the premium -rated SMS as a potential barrier to entry, and know that the networks and WASPs will pocket a proportion of the profits. The consumer must know what the costs are upfront, and the WASPA code of conduct dictates that if the total cost of a service exceeds R200 in one calendar month, then the consumer must be contacted so they can confirm that they will accept the billing costs.

SMS short codes
A short code is the unique number that a consumer will send an SMS or MMS to in an SMS/MMS-to-win competition, for example, or to access information or content (such as a ringtone or a cellphone screensaver). To set up a short-code campaign, find a WASP (wireless application service provider) that is able to offer the renting or purchasing of a short code, as well as the use of keywords necessary for this sort of campaign. Short codes are currently in high demand, so users are
marketingmix.co.za / vol 27 / issue 9/10 / 2009

How to: SMS

UUSD
Unstructured Supplementary Service Data (USSD) is a textbased interactive tool, which captures the user’s responses and then reacts. It can thus be used for competition entry, for surveys and to elicit customer feedback as well as to subscribe to a service. For the consumer, USSD is cheaper than short-codes (as low as 20 cents for 20 seconds of usage, in some cases). Plus, it works across all phones and networks and doesn’t require special phone software to operate. Most of the lower LSM market is familiar with the workings of USSD, since it is the platform by which airtime is loaded or topped-up, which means that this is a great tool for reaching a mass market or the bottom of the pyramid. How does it work? The consumer sends a keyword to a particular short code to initiate the USSD service and then interacts with it. For example, the consumer SMSes the brand’s name to a particular short code, and then the USSD service starts up and asks the consumer to enter their name and surname, and answer a question to enter a competition. Find a WASP that can set up the USSD channel, and will manage the campaign. The cost of setting up a USSD campaign ranges but expect to pay around R2 000 to set up the USSD channel, and a further 50 cents per response. Again, the cost of the USSD service must be made clear to the consumer upfront.

achieve and what role it plays within the overall campaign or strategy. Is the SMS playing a supporting or leading role, or is it the hero of the campaign? The message: with only 160 characters in which to wow and persuade the recipient it had better be good. Make sure that the message is clear, targeted and absolutely relevant (how about using the recipient’s first name). Don’t forget to include crucial info like your company name or the price of each SMS competition entry. Value: does your SMS give the recipient value of some sort? Is there something in it for the consumer? If not, why are you sending it to them? Reply path: the reply path (feedback or response from the customer) must be monitored and you must react (make sure that every competition entry or click gets a relevant and speedy reply – even if it is a quick thanks for their participation). Always have an opt-out. Even if the consumer originally opted to receive your SMSes. Make it all measurable: keep track of exactly who received your SMSes and what they did with them Tie-in: if your SMS activation is part of a larger campaign, make sure it looks and feels like the rest of that campaign.

Measurement
To measure an SMS campaign track: G The number of recipients of the message G The cost per lead and per conversion

Getting SMS right
Clear objectives: be clear about what you want the SMS tool to

SMS > p21

How to: MMS

MMS
ultimedia messaging service (MMS) is one up on basic SMS. With MMS, video, audio, images and rich text (text with different colours, fonts, etc) can be sent. Messages can also be longer than those sent in an SMS, which limited to 160 characters. All of which means that the MMS recipient enjoys a potentially more colourful, interesting message experience. “MMS is as diverse as e-mail. There are thousands of designs, creatives, attachments and formats that one can use,” says Eddie Groenewald, CEO, Multimedia Solutions. For brands and companies, MMS holds a lot of potential as a mobile marketing tool. MMS can direct the customer to a mobisite or invite them to enter a competition; it can send the customer a personalised birthday message, or remind them that they need to pay their account soon or even send them something entertaining that they’ll want to pass on to their friends. This can be followed with an MMS business card, and an invite them to call and say, book a test drive or a free business consultation.

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How to do it?
Once the database is set up, and has been screened for MMS enablement and configuration (see page 6), find a service provider that has MMS capabilities. If the MMS is in response to a short code (ie the consumer sends a keyword to a short code and receives an MMS in return), arrange for short code and keyword rental (see page 18 for more info). To send an MMS that contains links to a mobisite, use an MMS that supports auto-multichannel function. There is a multitude of variances to be considered (screen sizes, cellphone operating systems, handset types, and so on), which means that the MMS must be optimised to each handset. If the database has been pre-screened, then the handsets the database contacts are using will be known and this may help to narrow things down a bit. As the network operators improve their standards, so the need to use special settings (that tailor the MMS message for individual handsets) gradually falls away. However, there are sometimes problems with this, as Grapevine Interactive Marketing’s chief technology officer, Cliff Court, explains: yes, the networks will automatically re-format images in the MMS message, so that these fit the screen size of the recipient’s phone. However, he says, the network databases are not always up to date and the re-formatting makes the images display incorrectly. Marketers are thus encouraged to use a standard image size of 128 x 128 pixels and to manage their campaigns directly rather than handing them to the networks. Some campaigns will still need special software or settings, especially if these are targeting the lower end of the market, says Groenewald, where older handsets still depend on specialised software. Brands are encouraged to educate their customers about MMS to lower the barrier to adoption and use. The cost of MMS as a marketing tool is high compared with SMS, so there is a lot of debate around the effectiveness of the tool relative to its cost. “Although we have sent out lots of MMSes for and on behalf of various brands the response is never what we anticipate, it is expensive and in almost all cases the MMS is followed up by an SMS anyway,” says Hans Mol, director of Mobile Media, Be-Mobile. “I think that more effective utilisation can be delivered by sending the link to your mobisite where the user has the choice of engaging and the ability to access far more than what an MMS can deliver at a fraction of the cost.” Court goes on to say that, based on this, the only campaigns that are really suitable for MMS are those that must have audio and possibly those with slides/changing images. That said, in viral campaigns that drive brand engagement or create buzz around a brand’s event, for example, MMS can prove pretty exciting. As Mol explains, MMS is a user-generated tool too, “so providing branded MMS- type postcards that could be personalised by users would be a relevant way of using MMS in the mobile space.”

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The cost of MMS as a marketing tool is high compared with SMS, so there is a lot of debate around the effectiveness of the tool relative to its cost.

“The most well-known advertising opportunity on MMS would be on Vodacom’s permission-based AdMe platform,” says Candice Goodman, managing director, mo-B. AdMe is an opt-in service; the consumer signs up to the service and offers some personal info. The platform then segments its database, and delivers ads that are relevant – women will receive an ad for a new hair care product, while men will receive a special offer on beer, for example.

Who can I reach with it?
While the penetration of MMS-enabled handsets in SA is growing, it is important to keep in mind that not all South Africans own one yet or know how to use the MMS functionality. “Fifty five per cent of our population sends MMSes,” says Ahmed Kajee, managing director, Cellsmart, indicating that the majority of the population is empowered to use this platform. But it’s tough to nail down exact figures – the jury is out on exactly how many local handsets are MMS enabled, with the figure ranging from around 50 per cent to 85 per cent. Goodman finds that the higher LSMs tend to have a higher enablement rate.
marketingmix.co.za / vol 27 / issue 9/10 / 2009

Cost
The cost of an MMS campaign varies, with the price per unit marked anywhere from 80 cents to R20. However, the exact

How to: MMS

cost per MMS will depend on the size of the message sent; this will depend on the use of audio, the number of ‘slides’ in the MMS and the resolution of the graphics. “You need to budget for a creative set-up cost,” says Goodman. If a campaign uses short codes, there is also the cost of the short-code rental. Consider that MMS replies are costly for the consumer, so beware of using this method. Be wary of the ‘cheap and nasty’ warn experts; an MMS that displays poorly and has poor functionality equates to a poor user experience. “Anything under R1 is not well aggregated, R1.95 is standard retail for quality MMS,” says Groenewald. He goes on to say that a voice over for MMS will cost in the region of R1 500.

ensure that the target phones are MMS capable and enabled, says Court. “Ask to see samples of their work. As for a track record, if they are not doing 500 000 MMSes a month they are not serious MMS providers and don’t understand the complexities of how to manage volume,” says Groenewald.

Questions to ask:
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Measurement
The good news is that MMS is highly trackable and can be measured from ‘send’ to ‘opened’, particularly if the call to action is very measurable. Measures of an MMS campaign can include reach (how many consumers received the MMS), penetration and frequency as well as conversions (how many recipients clicked through to a mobisite, for example, or clicked to call a business). “Stats are debatable; we’ve seen anywhere from 0.02 per cent to 35 per cent responses which demonstrates how important the relevance of what you are doing is to the user,” says Mol.

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Selecting a partner
In selecting an MMS partner, find a service provider that will support auto multichannel functionality, which means that they can create MMSes that are capable of carrying links(such as the click to call or click to mobi. Partners should assist with pre-checking the recipient cellphone list with the networks to
G

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What are the creative limitations with regards to MMS? Are there any limitations to sending out a larger quantity of MMS? How do I know if my database can receive MMS messages? G Do you pre-check cellphone numbers to understand which are MMS enabled? What type of reporting can you offer? And what can you measure? Do you optimise the MMS depending on the phone’s screen size? How good are your creative services? How well do you optimise the size of the MMS (audio and graphics)? Do you provide and manage an opt-out service? Can you provide a pop-up to a mobile website at the end of an MMS? Can you set the MMS so that it cannot be forwarded? Useful for controlling campaigns and preventing passing on of limited special offers, for example. Can you personalise and customise the MMS? That is include a name, account number or value etc? Is the MMS optimised across all handsets? Timing – when will the messages be sent? K

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SMS continued > p19
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The total responses received – either the number of SMSes sent to a short code or the clickthroughs to a mobisite; also, the number of keywords sent Number of invalid numbers (those that bounce back or are incorrect).

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There is no benchmark for an SMS campaign. However, as Hans Mol, director of Mobile Media, Be-Mobile says, SMS as an advertising medium generally attracts a 0.01 per cent response rate on its own. When it is used as part of a greater campaign to drive engagement, response rates are far higher.

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Selecting the right partner
In selecting a mobile marketing partner for an SMS campaign, there are a few questions that one should ask: G The right credentials: are they accredited by WASPA Transactions Act or the Consumer Protection Bill, etc)? G Proven successes: can they prove their track record with case studies of their previous work? G Skills: do they have the skills, resources and capacity to develop, deploy and host not just an SMS campaign, but also
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MMS, mobisites and more? They should preferably have these capabilities in-house. Responsible: are they familiar with best practice, which will address such issues as the time of day that SMSes are sent as well as opt-out ethics? Analytics: what kind of reporting and analytics do they offer, and how will they help with tracking and measurement of a campaign? Capacity: can they send SMSes in bulk? Can they send SMSes that are longer than 160 characters, should this be required? Can they tailor and personalise messages to match the client’s needs? Costs: can they provide clients with a transparent cost structure? Do they charge for any extras such as management fees? Is there a reply path and is it monitored for unsubscribe requests? Where do they get their database if they’re not using yours, and how else do they use this database? K

vol 27 / issue 9/10 / 2009

marketingmix.co.za

How to: mobisites

Mobisites
A
mobisite is a website specially designed for viewing on a cellphone. “Almost 90 per cent of our population has a WAP-enabled mobile phone,” says Ahmed Kajee, managing director, Cellsmart. World Wide Worx’s 2009 Mobility study has found that there are four million mobile Internet users in SA, and growing. Brands should be developing their own mobisites in order to be available to consumers on the go, with info and content that engage the consumer. “We believe that this element of mobile media is one of the first that any business should start with. From here one can use the various elements such as SMS and MMS to engage with users and in this way build their user base and understanding of the customers,” says Hans Mol, director of Mobile Media, Be-Mobile. Experts say that in SA, the majority of the mass market will access the Internet for the first time via their cellphone, so mobisites are becoming increasingly important. “Mobisites allow brands to have access to the ‘unmarketable youth’ who do not access traditional media such as newspapers, explains Liron Segev, CEO, Swift Telecoms. “For example, adidas has managed to target the youth market by offering a Mobile ‘Urban Art Guide’, which allows users to pinpoint urban art/graffiti within the city and take a walking tour of these locations, led by the application.” In SA consumers and brands are still getting to grips with how to use mobile browsers and mobisites, but this will change as data rates come down. Currently, rates are not low enough to encourage the mass market to make use of mobisites. Aside from developing a mobisite, there is also the option of purchasing advertising on another mobisite (buying a banner ad on their homepage and allowing for click-through to your own mobisite, for example). The publisher (owner of the mobisite) will charge the advertiser on a cost per click (CPC), cost per impression) (CPI) or cost per thousand impression (CPM) basis. “Generally, most are in CPM ranging from R300-R60 depending on the volume booked,” says Garth Rhoda, national mobile account manager for Habari Media. Once the user is in a brand’s environment, viral marketing approaches can be applied by providing access to update social networks such as Facebook and a refer-a-friend link. “We’ve seen almost 50 per cent referrals sent out by the unique users that come in from banner adverts,” says Mol. Currently, marketers can purchase banner advertising on the Soccer Laduma mobisite as well as on Vodacom’s Internet portal, VLive, and on MXit, in the form of static images (called splash screens) that pop up when pages load. “AdMob and Buzzcity are examples of publisher networks that offer a large range of mobile media opportunities under one umbrella,” says Kajee.

Check these out: a few local mobisites
Open your cellphone’s Web browser and enter the address as it appears below to visit the mobisite: www.makrosa.mobi www.toyotasa.mobi www.player23.mobi www.saskoflour.mobi www.morkels.mobi www.homeground.mobi www.vcupgrade.mobi

Role of mobisite: Understand the role a mobisite will play in the user’s life, as this dictates what features and functionality it will require (ie store locator, versus enquiry form). Simplicity: Users turn to mobisites to find info quickly, on the go. The mobisite URL should be short and intuitive; limit the use of usernames and passwords as far as possible, says Candice Goodman, managing director, mo-B. Avoid large company logos and banners (take too long to load; force the user to scroll down), lengthy texts, flash or video. Make telephone numbers and e-mail addresses linked, so the user can click to call/e-mail automatically. Small screen experience: Many users will be accessing mobisites having never accessed the Internet via the desktop PC. Teach them how to use links, feedback forms, etc. Ensure content is easy to view on a small screen. Embrace the tech to embrace the user: Engage all the other functions of a cellphone (SMS, MMS, etc). Send the user a viral MMS after they have visited your mobisite or an SMS to confirm their interaction, for example.

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Cost
The cost of setting up a mobisite is entirely dependent on the functionality and interactivity of the mobisite itself, with the cost of a site ranging from under R10 000, to R50 000. Expect to be charged hourly rates for mobisite development. Be wary of companies offering a basic WAP site (with low functionality) in exchange for a commitment to advertise through their ad network, as then the WAP site pretty much belongs to them, explains Mol. Additional costs include maintenance and hosting fees. “Maintenance refers to any additional work and updating of the mobisite that might be needed and hosting depends on whether the mobile supplier will be hosting the mobisite on their side” says Kajee.

Measurement
As with a regular website, the traffic to the mobisite is a key measure of specifically unique visitors. Also, track number of repeat visits, pages viewed, interactions etc. Also useful to track is which country the visitor is from, and what network they are on as well as which handset they are using. (Read pages 30-31 for more info). K

Creative tips
Find a specialist developer (see page 25 for advice), that will ensure the site displays properly across all handsets, and consider the following:
marketingmix.co.za / vol 27 / issue 9/10 / 2009

Partner selection

The dangers of getting a web company to do your mobisite
By Cliff Court, chief technology officer, Grapevine Interactive Marketing
o many it seems obvious. You already have a Web company who is responsible for creating and maintaining your Internet presence, so it makes sense (and it’s more convenient) to let it do your mobisite as well. Well, I’m here to argue that, not only does it not make sense, but you risk damaging your brand in the process. Let’s be clear about something, any company with a public-facing brand can no longer get away with not having a mobile Internet presence. Forrester Research has recently stated that the next one billion online users will be on mobile devices. In SA, Internet-capable cellphones outnumber PCs. All this means that marketing teams have to start staking out a presence on mobile devices. Every year, the world’s largest mobile expo is held in Barcelona. In speaking to major vendors during my last visit, the message was overwhelming. Don’t try to simply use (or repurpose) your existing website for your mobile presence. If you do, your user experience will almost certainly be poor, resulting in brand erosion. There are excellent Web designers out there and one would think that a few simple adjustments to the mobile world mind-set would suffice. Unfortunately, it’s not that straight forward. Websites aimed at PCs can make use of a very advanced set of functionality, such as AJAX and Flash; these are (mostly) not supported on cellphones. Plus, PC websites take advantage of the larger screen area. Cellphones are very different. Not only are the screen sizes smaller and form factors varied, but so are phones’ browser capabilities, the content types supported and even the parameters set by individual mobile operators. Those accustomed to PC-centric Web development have limited experience with these issues and they often devolve down to best-efforts and hope for the best. However, when it’s your brand involved, that isn’t good enough. A poorly designed mobile site that does not render correctly on the majority of phones will simply frustrate and annoy your customers. Mobile Internet sites should ideally be developed by mobile specialists, who besides being comfortable with the smaller screen sizes and mobile requirements, already have strategies and mechanisms for handling different phone screens, content types and understand the vagaries of the mobile operators. They know what works on mobile and what doesn’t. Of course there are ordinary mobile Internet developers, and there are better ones. The best know what will frustrate your customers and how to avoid it in most cases. A developer worth their salt understands that it’s no use offering your user an MP3 ring-tone if their phone won’t play it. Most professional mobile Internet developers make use of multiple sources of information to determine what a particular

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cellphone can and can’t do. Be careful of those who tell you that they have it covered because they use the so-called WURFL database. This is a freely available data source with many of the world’s phone specifications within it. The problem is that the WURFL data can be (and is) updated by anyone, which results in a number of erroneous entries and often, no data at all for many cellphones. The better mobile development companies will combine such free mobile phone data sources with commercial ones to ensure the most accurate data is used, and your customer gets the best experience. The good news is that once you’re on the phone, you can make use of additional mobile channels to interact with your customer. For example, while the user is interacting with your mobisite, their choices and actions can be confirmed with a follow-up SMS or MMS. Or ‘Click-to-call’ links can be placed on the site, making it easy for the user to get in touch with you immediately. The result is a far richer interaction with your customer – but it takes a competent mobile developer to make it all happen seamlessly. My intention in writing this article is not to cast aspersions on PC Web designers, but rather, to highlight that as a result of their specialisation in the PC-based space, they typically don’t have the kind of expertise the mobile world demands. K
vol 27 / issue 9/10 / 2009

marketingmix.co.za

How to: mobile apps

Applications
obile applications (or apps, as they are called) are specialised tools, downloaded to a cellphone to allow the user to perform a particular task. MXit, for example, is an instant-messaging application, which the user downloads to their phone in order to send and receive instant messages from their contacts. The smartphone (BlackBerry or the iPhone, for example) is best equipped to handle apps so it is this market in particular that is driving the growth of apps worldwide. However, this is not to say that apps are limited to smartphones. “Every Symbian-based, Multimedia-enabled handset is a viable contender for application utilisation,” explains Hans Mol, director of mobile media, Be-Mobile. Currently, Symbian phones are still high-end handsets and are not in the hands of the lower LSMs. In SA, say experts, the mobile app market is big, and apps are growing fast. “MXit is very popular among the 19 – 25 age group. Users are also checking and updating their Facebook status as well as ‘tweeting’ from their mobile phones,” says Ahmed Kajee, managing director, Cellsmart. He finds that social media apps are very popular as are news, gaming and entertainment apps. “There are a lot of free applications, and then there are those that need to be purchased – like games – and are found on content portals created by the network operators and content providers like Exactmobile or the iPhone app store,” says Kajee.

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Apps for you to try
Facebook for mobile Fring- peer-to-peer mobile VoIP (voice over IP). MXit- instant messaging and chat Twitter- micro-blogging site The Grid - mobile social networking app. Yeigo - mobile VoIP app Cnectd- free SMS service AdMe- Vodacom’s opt in ad-serving network. Opera- a Web browser for mobile Remo- an app that brings the office onto your cellphone (allows the user to send and receive e-mails, set up a calendar and schedule, etc). Nimbuzz- lets the user call, chat, message and send files on the go, for free. It also combines the user’s contact lists (across e-mail, chat etc) into one list. WiWallet- South African mobile wallet, which allows the user to make mobile payments. Gmail- Google mail Gravity – twitter app Pocit- mobile payments

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Challenges:
G G

The local market is ready for mobile CRM based applications that cover various serviceintensive organisations under one application.

What’s in it for brands? Anything from brand engagement to retail solutions. “It all depends on the purpose of the application. In essence, the application will drive brand and messaging and, wrapped up with a good service/product it will bolster mindshare,” says Mol. A businessman might want to download an app that lets him book plane tickets on the go (and also lets him pre-book seats), while a coffee drinker would like to pre-order coffees from the local coffee bar. “The local market is ready for mobile CRM based applications that cover various service-intensive organisations under one application. Log a query with your bank, insurance company, mobile service provider, gym or whatever else and interact with them using your cellphone!” says Kajee. How to make an app? Download or purchase software (such as Cascada Mobile’s Cascada Breeze, which allows someone with basic Web programming skills to create an app for mobile in minutes – www.cascadamobile.com) which will simplify the programming. Or recruit a programmer who can create the app.

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Handset variability: cater for different handset types, and different audiences. Resource heavy: apps tax the phone’s battery and resources. The recent launch of mibli may see a solution to this. This is a new software ecosystem, which enables any Java-enabled handsets to run mobile apps that are traditionally only accessible to smartphones. Mibli is available for free and requires a single download to operate. The software will allow the user to download apps that will enable them to pay bills, transfer airtime, play games or make use of social networks. Brands are now able to target young South Africans through this software by offering them cool apps. Mibli also offers banner advertising, full-screen mobisites and interactive messaging. Mibli will be launched to consumers in October 2009, but, according to JJ Botha, CEO of the Mobile Services Company, the company has access to more than a million active social networking users, and has already got banking and FMCG brands signed up for campaigns. Relevance: Once the SA market matures, more relevant apps will make their way into the market. Pricing: key in a developing market. Treatment: Apps need to be marketed and treated like products in their own right. An app is a long-term investment, not a once-off project.

Look out for widgets, which are like micro apps or bookmarks equipped with RSS feeds that deliver content as required. These are, like apps, downloaded to the phone to carry out specific functions. K

marketingmix.co.za / vol 27 / issue 9/10 / 2009

Mobile measurement

Mobile performance measurement and insight
By Raymond Buckle, CEO, SilverstoneCIS

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logical place to start of what is by unpacking the different aspects of your campaign, looking at the different measurement opportunities and how they align to your objectives.

Engagement and interaction
Engagement and interaction is what happens on one of the mobile touchpoints you’ve driven traffic to, and own or control. You’ll need to have at least one or more of the three mainstream channels in place where consumers can engage your brand on mobile: Short codes: A five-digit number to which users can SMS replies with keywords and content.

Awareness and activation
You need a solid activation strategy which may include push or pull exposure through messaging, application-based or display advertising. Messaging: A push strategy through messaging that uses SMS or MMS implies access to a profiled database with consumers who have provided their permission to receive advertising – you’re targeting consumers based on the assumption that they will find your message relevant.

Measurement (short code)
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Measurement (messaging)
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Unique messages sent by creative and audience segment if possible Delivery receipts, message failures and expiries. Remember to clean out your database after multiple errors to the same users/numbers Encode mobi links or use specific keywords as part of the call to action to measure performance of specific messages A new service called LNQ.in provides URL shortening and even allows you to track the virality of messages back to individual users – saves precious characters in SMSes and allows an enhanced level of control as well as insight into the results of your campaigns.

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Track unique messages received by keyword, which should imply creative too Short-code replies against encoded keywords is a phenomenal way of gauging the relative performance of your traditional media placements; allows a view of what medium and messaging works best for a mobile call to action If you have a marketing database with cellphone numbers and profiling data per customer/lead, you’ll be able to report on which audience groups or segments responded to your call to action, allowing you to tweak your targeting and increase performance in follow-up campaigns If part of your campaign mechanics include a reply message with a secondary call to action, you should be able to track by individual user who actioned the second message.

USSD applications: It’s a great alternative for real-time input
and response for the mass market phones if you want to get option, number or basic text-based input. Mobile Internet website (mobisite): By far the most flexible and best rich-media engagement option accessible to a very broad market.

Display advertising
With display advertising, you’re employing a pull strategy across a larger audience with wider exposure, but on the assumption that a certain percentage of the audience will find your proposition relevant. Cost per thousand impressions (CPM ) based media placement is a good strategy for exposure, and can drive actionstoo, while a cost per click (CPC ) based campaign is inherently focused on results and you’re only paying for the clicks on your banners.

Measurement (USSD and mobisites)
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Measurement
G G G

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Ad impressions by creative, media property/channel and content type Ad click-throughs. If you use encoded links per creative and media property you can independently verify click through reporting by the media owner Time of day, week and month is fundamental, specifically when measuring responses or click through actions Cost per impression, message and/or click through should be factored in.

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The number of unique visits. With USSD, you’ll automatically get the cellphone number and can determine the number of unique visitors as well. With a mobisite you can do the same if your hosting provider has access to MSISDN headers (the unique number that identifies a particular SIM card) – this is not available by default) If your message banners or links were encoded, you’ll be able to measure and cross-check traffic by unique campaign/creative against the stats reported by the media owners or ad networks. Expect a reasonable discrepancy but keep an eye on this Mobile and PC browsers pass through what’s called ‘header’ information when they access your site, and if your provider is set up to capture this, it will yield info about what phones, browsers and capability the user has. Also, the type of phone used is a good indicator of who’s using it.

marketingmix.co.za / vol 27 / issue 9/10 / 2009

Mobile measurement

Measurement (USSD and mobisites)
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The final aspect of measuring interaction is tracking the actual page impressions. By linking unique visits to each page impression, you’ll know how many people viewed a particular page and for how long, to effectively gauge the level and quality of interactions. Things like bounce rates (number of visitors who landed on the site and left without any interaction) or exit pages are dependent on tracking-page level interaction.

Actions and sales (post click)
A cellphone is in the hands of more than 90 per cent of the economically active market. If you think of your objectives in terms of a hierarchy or funnel, the first consideration may be to simply drive traffic, and then brand engagement in terms of content viewed or downloaded, but regardless of what else you may want to achieve, the next consideration for any mobile campaign should be to solicit an opt-in – it allows future communication and also anchors all your other tracking and measurement efforts to unique consumers. Now you can worry about lead generation and sales – depending on the type of campaign, product or service, the actual sales transaction can possibly be concluded on the phone, but at the very least you should be routing enquiries to a call centre, rep or store for follow up.

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Measurement of actions (short code replies, USSD and mobisites)
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Tracking actions and sales is very specific to the objectives of each campaign, but all things being equal, if you’ve already addressed the basics of good exposure, activation and interaction, you’ll be able to track and report on the whole journey from awareness to action or sale, per user, per creative, per media channel, by audience segment on a timeline. If you have the right permissions in place, even according to user location using the networks’ Location-Based Services (LBS) Typical examples of actions include opt-ins, registrations or profile updates, content accessed and downloads, competition entries, referrals, enquiries or leads generated and ultimately sales Negative actions like opt-outs or complaints should also be tracked.

Marketers and advertisers should actively work with and put pressure on IT to get those feedback loops going and measure actual return on investment.

Return on (marketing) investment After sales and influence
This is the part where most marketers seem to lose the plot. After the action or sale, the customer is dropped into one of a few black holes called ‘point of sale, accounting, ERP call centre , or CRM systems’, never to be seen or heard from again. Really valuable and actionable insight is lost if there is no feedback or integration between your marketing database and your business systems. Marketers and advertisers should actively work with and put pressure on IT to get those feedback loops going and measure actual return on investment. A last note on campaign measurement is to track actions on the back of referrals, actively measuring the influence and networks of your audience. This can be achieved using encoding and link tracking techniques provided by a platform like LNQ.in. Everyone talks about ROI, and although the definition is clear and the basic formula is relatively simple, there is no consensus or standard on how to practically measure the actual return, especially across the different media types. Everyone’s got a projection for the expected ROI of their media based on assumptions about the number of impressions, responses and response conversion to sales rates; but how do you actually know whether a specific lead and sale was generated by a specific creative and media placement? Enter mobile media, marketing and advertising: If you follow the guidelines above and get your people to capture a cellphone number at the point of sale (if it’s not concluded on the mobile or Web platform), and if you can get IT to pass the information to you, you’ll not only be able to track and measure your mobile marketing investment, but also get a view of the actual relative performance of your traditional media placements. K
marketingmix.co.za

vol 27 / issue 9/10 / 2009

Channel selection

Selecting the best mobile channel for your brand activity
By Chris Rolfe, CEO, Mobilitrix

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s the worlds of technology, media and telecommunications collide at a faster rate and with more energy, it is comforting to see that the mobile phone has now come of age as a tool that marketers can use, and it is now taking its place around the Table of Spend. Which is the right mobile channel to efficiently and costeffectively reach the consumer who is carrying a mobile phone of some sort? Let’s understand and focus on what is available now rather than say what might be available in two years’ time. Areas such as location-based information, either at the Bluetooth or network level, are not going to be included as that is a distinct (and very exciting) segment of the mobile market which has been covered elsewhere.

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WAP ultimately will be the channel of choice for many marketers and its uptake is growing, albeit slowly.

Let’s start with the easiest segmentation that exists between the various channels on a mobile phone: that which can be used on standard versus multimedia handsets. Think back to the first Nokia phone; it didn’t have Bluetooth or MMS capabilities. It simply offered text and USSD. USS- what? This is a distinctive type of messaging that is different to SMS, but works on all types of mobile phones – from the simple version 1 Nokia to the latest Blackberry or iPhone. Technically, it stands for Unstructured Supplementary Service Data or as it is known colloquially in the township market – ‘i-topup’. USSD is what the networks use for airtime top-ups, balance enquiries and to perform a please-call-me request. USSD is great in that it works on all handsets, but the big setback is that, from a brand perspective, the delivery is monochrome, rendering an almost DOS-like experience to the user. So, essentially, the trade off is between reach/speed of the service versus multimedia capabilities. A tough choice, but such is the world of technology. From a cost-to-consumer perspective, USSD sessions typically cost 20c for 20 seconds, although networks do offer premium rated strings or numbers. Text SMS charges are better understood, with the consumer either paying nothing (if free SMSes apply) or a premium rate (up to R30, but typically in the R1 to R1.50 range)
marketingmix.co.za / vol 27 / issue 9/10 / 2009

So to summarise: with older cellphone models, you can consider using text and USSD channels for now. The tough question is then, which of my customers is using a simple version 1 phone, and which are using multimedia phones? By finding out and storing this data in different databases you can make your customer engagements more cost-effective and useful (you are saving money by not sending multimedia messages to customers who cannot view the content). If it’s multimedia capabilities and richness of experience that you’re after, then it requires that your customer has a multimedia phone that offers: html, MMS, Java and QR codes. These are attractive as they give full-colour, multimedia possibilities. Once you are assured that the target audience has this type of phone (and assuming they know how to use it) then from a brand engagement and marketing perspective, what is capable on the Internet is now possible from the mobile world. This is the world of html, rich media and true brand-consumer engagement. As bandwidth speeds increase and data charges decrease, the collision of technology, media and advertising will truly take off. The capabilities of the phone, the intelligence of data gathering and the personalisation of the medium results in a world of perfect information flow between brand and consumer. Currently, the reach of WAP in SA is not 100 per cent understood, and that coupled with unknown costs (from the consumer side) as well as slow speeds, is leading to low conversion rates for brand owners. WAP ultimately will be the channel of choice for many marketers and its uptake is growing, albeit slowly. K

How to: mobile video

Mobile video:
obile video is video content that has been produced specifically for viewing on a cellphone. It also refers to videos recorded by the user on a cellphone. “Mobile video appeals to all target markets from young to old and from higher to lower LSMs. The most active users, however, are the tech-savvy ones, irrespective of age or income,” says Ahmed Kajee, managing director, Cellsmart. Mobile video is powerful when it is used as part of a viral marketing campaign (eg, sending humorous, branded viral videos to friends) and it is also useful for content producers (radio stations and TV broadcasters) who might offer short snippets of video to consumers for download. What else can be offered to the consumer in mobile video format? Television commercials (formatted for viewing on a cellphone, of course), infomercials, product demos and even face-to-face video calling as well as video streaming (steady and continuous video content, rather than a video that is sent as a file). “Video streaming is not big yet due to handset capability, broadband availability and mobile network operator backend supply; plus, video streaming servers are costly. But the potential is huge,” says Eddie Groenewald, CEO, Multimedia Solutions. In SA, mobile video download is still in its infancy, primarily because of the cost of data. It is expected that once the networks have realised ROI from the cost of setting up data networks, we will see a decline in data rates. “Brands will also be able to deliver mobile video to consumers at no cost to the consumer through platforms such as accessible and secure Bluetooth, mobile TV , MMS and reverse billed (toll free) video calling. All this is still some way into the future, but it will invariably happen,” says

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Kajee. To help lower the cost barrier, experts suggest that mobile video download or distribution costs are subsidised through sponsorships, for example. “Another major barrier to the uptake of mobile video is that not all handsets are equipped to play videos. Digital licensing rights are prohibitive, too,” says Hans Mol, director of Mobile Media, Be-Mobile. However, there are mobile video portals up and running in SA, including Zoopy and Vodacom’s Player 23 portal (where fans of Player 23 can download videos). Mo-B is getting ready to launch videos of the best soccer moments in the English Premier League, with rights for distribution in Africa. For the brand that’s looking to make a mobile video, it’s about finding a partner who can create video content, specifically for phones, and then load it to their mobisite or make it available for distribution to the brand’s customers via MMS, for example. The major consideration for the video creator is the size of the video (bigger means more expensive for the user to download or to watch on their phone) and also, the variety of handsets that the video needs to adapt to for correct display. Make sure that the user can access the video via MMS or Bluetooth as well as watch it on the mobisite. Can they send it to their friends or refer friends to the video on the brand’s website?

Cost
The cost of producing a mobile video will vary, depending on the length of the video, whether it requires much post-production work to ready it for viewing, etc. “Relatively speaking, it isn’t any more or less expensive than traditional video production costs,” says Kajee. The returns on mobile video are not going to justify marketing spend, says Cliff Court, chief technology officer, Grapevine Interactive Marketing, at least not for the time being. K

How to: social networks

Mobile social networking
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n increasing number of consumers are accessing social networks, such as Facebook, via their cellphones. They are also using apps to access instant messaging site MXit, and micro-blogging site Twitter. Itsmy.com recently surveyed users and found that the cellphone is the primary means of communication for 95 per cent of people in Europe and the US. Forty-two per cent of them have not accessed social networks via a desktop PC – they access these platforms via their phones. In September, Facebook announced that more than 65 million people actively use Facebook on their cellphones (increasing from 20 million in January). Clearly, the future of social networking is mobile, and brands that use or plan to use social networks to get ahead will need to think mobile. Experts stress that social networks are about building communities and sharing similar interests, and brands that approach them with the goal of blatant marketing will lose out.

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The Grid
Locally, Vodacom is driving the development of The Grid, a mobile social network that combines social networking with micro-blogging, media sharing and location-based services in real-time. “It’s about who owns a latitude or longitude, and what is said about that entity,” says Vincent Maher, portfolio manager, Social Networking at Vodacom. “It’s about leaving text, videos, pics, blog posts, reviews etc at a physical location on a map, and leaving it there for other people to discover.” This interaction is at low cost to the user, since access to The Grid is free (they only pay for the data usage to access it from their cellphone). Eighty per cent of users access The Grid via Java (available on most cellphones, and a further 10 per cent access it via the mobisite, says Maher. The remaining 10 per cent is made up of desktop users. This is primarily a youth platform, but not strictly so. Users are not bound by their physical geographic boundaries, and top users are in about 230 locations each month. For brands, stores, restaurants etc, The Grid holds great potential as an advertising platform that uses location and proximity to target users. For example, the Rivonia branch of a store chain might post a message on The Grid, offering users that live in the area a discount voucher. Or perhaps a brand will use The Grid to launch a competition, which requires users to participate in a ‘treasure hunt’, visiting specific locations to interact with the brand and to gather more clues in an effort to win the prize.

Says Doug Bewsher, chief marketing officer of mig33, a global mobile social network, adopting strident marketing goes against the very ethos of social networking, and can turn members off. Whatever the brand offers the target consumer by way of social networking and interaction should be at little or no cost to the consumer. At the same time, there has to be value in it for the user. How to get onto the mobile social network? It’s about partnering with one of the social networks, or with a specialist in the field, to get the right guidance and advice as well as the right creative and messaging. This is assuming, however, that the brand is targeting consumers who are heavy users of social networks. The cost of running a social networking campaign will vary, depending on the objectives of the campaign, and whether it involves a banner ad on the social network (which will thus entail CPC, CPI or CPM costs), or an integrated campaign that involves the creation of an online fan page or profile for the brand, linked to events, promos, and so on. K

Resources
Visit www.marketingmix.co.za, to find the mobile marketing resource guide.

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Market research trends: A comment from the
Southern African Marketing Research Association (SAMRA)
he market research industry is continually evolving, changing and being re-evaluated based on advances in technology and changes in people’s attitudes and beliefs as well as perceptions. In addition, 2009 is proving to be a taxing year for many industries (including research) as the economic climate continues to have an effect on clients’ budgets. To deal with such issues it is vital for market research houses to reassess their approach and use the changing landscape to their advantage by adapting to and benefiting from new trends in the market place.

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What do some of these trends involve?
According to Leonie Vorster, outgoing chair of SAMRA, there is a new focus on professionalism within the industry. “As clients’ budgets shrink it is becoming increasingly vital for market researchers to offer a personalised and professional service in order to gain and maintain a positive relationship with the client which helps to ensure repeat business.” In addition to this increased focus on professionalism, Vorster points out that new international ethical and professional standards have also recently been finalised for out-of-home market research. Niel Victor, outgoing SAMRA chairman, says, “Internationally, we have seen continued market consolidation. Increased pressure on fixed costs and overheads has resulted in many companies outsourcing certain work. This in turn has

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created a shift in the industry towards niche or specialist research consultancies in an attempt to fill this need.” “An obvious trend, and one we are seeing more and more often, is the increased emphasis on return on investment. Companies want to be able to see where every cent is going and whether that spend is translating into sales for the company. As such, you will see procurement departments increase in importance, along with spend on cost analysts. Locally, we will continue to see the increased pressure on top companies to transform in terms of BBBEE as well as increased pressure to become more socially responsible.” According to Salomé Barnard, SAMRA incoming chair, “Although there will be continuous pressure on research companies to provide research results faster and cheaper, users will still insist on superior quality expecting more value for their rand. Researchers will have to be more creative in order to develop new innovative ways of providing clients with market intelligence.” A final word from Victor is that “Innovative thinking, clever strategy and the need to identify key opportunities are essential for any company wanting to survive the economic downturn. Trends need to be identified and analysed constantly in order to stay at the forefront of what is happening and what we can expect to happen in the near future. Research in this instance is vital, informing companies about trends both locally and internationally.” K

The future for neuroscience in consumer research

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euroscience is a topic of huge importance and interest to marketers and researchers. Partly because it’s just interesting, partly because it’s sexy, but mainly because it’s by understanding consumers better that we can create more attractive brands and stronger ads, especially in these difficult times. Given the hype and how easy it is to be swayed by the aura of science and lab-coats, neuroscience, like any new technique, needs to be held up to scrutiny – we have to look past the lab coats and fancy equipment and ask some hard questions or we risk getting carried away. I have identified three methodologies from the myriad which have real application for marketers. To really be useful for marketers it’s clear that neuroscience needs to be combined with existing explicit tools such as qualitative or survey-based research to deliver real insights. Given this, the techniques which may find the widest market in the near term would include:

EEG (brainwave measurement)
By understanding the moment-by-moment response to brand communications and experiences, EEGs can offer powerful insight into transient or unspoken responses to ideas or elements of advertising creative.

Implicit association measurement
Implicit Association Measurement offers a deeper understanding of the ideas conveyed by marketing campaigns or the network of associations that make up a brand’s equity. In other words,

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understanding the clouds of associations and ‘gut-level’ emotional responses generated by brands and ads. This method is derived from cognitive psychology used in conjunction with explicit survey-based methods. The science doesn’t point to our unconscious dominating us – but it does say that there are processes that affect our reaction to brands and ads which people may find hard to articulate or be introspect about. people respond in the way they do to marketing campaigns. We have found that the eye tracking studies have already given additional insights into marketing decisions, ultimately influencing the creative outcome with regard to advertisement layout and copy. However, the results reaffirm that only when combined with validated, explicit measures, can these techniques provide a holistic view of both brand and advertising potential. Biometrics and neuroscience are powerful additions to the researcher’s toolkit – it is clear that there are real additional insights that can be provided by these techniques. These methods offer new and deeper understanding over the traditional methods and herald a new era for market research. I see the techniques becoming more mainstream in SA in the future as the new technology has reduced the costs for some of these methods, making them more feasible. We expect that by integrating these methods, we will be able to deliver deeper insights into brands and their emotional power, and more understanding into the unconscious drivers of good advertising and what really catches people’s eye in ads. Ultimately, this will help marketers to gain a better understanding of why people respond the way they do to marketing campaigns. Collectively, we hope this will allow our clients to build stronger brands and campaigns. K
Charles Foster managing director, Millward Brown (011) 202 7000 charles.foster@millwardbrown.co.za

Eye-tracking
Eye-tracking offers a powerful diagnostic insight on the focus of visual attention during interaction with an advertisement. It is a measure of this attention at any given moment, which is helpful in understanding why people have responded in a particular way to an ad, enabling us to understand where the focus of attention lies. In eye-tracking studies, the data is analysed to show the order in which readers generally view different elements of the creative. This approach is not just useful for print, but also for dynamic stimuli such as video, helping to understand if the viewer’s focus is on key creative elements crucial for communication, comprehension or branding. It then gives us a diagnosis pinpointing visual attention, and so helps us to understand how people flow through an ad, and why they respond as they do. As such it illustrates creative issues which may be driving or hampering success. Eye-tracking results thus deliver deeper insights into brands and their emotional power, giving more detail on what really catches the eye in ads, and so a better understanding of why

Research 10

Mobile research

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here are several compelling reasons to engage in mobile research, be it for fieldworker or respondent-administered surveys.

Cellphones are ubiquitous The potential benefits of this simple fact manifest in a number of ways, depending on the scenario: G It allows organisations to equip fieldworkers and/or respondents with low-cost handsets leveraging the ‘cellphone literacy’ most people have acquired rather than expensive units which require extensive training and support G It allows the possibility of respondents and fieldworkers to make use of their own handsets, thereby removing capital costs almost completely. Some caution should be exercised here: depending on the technology used, some configuration and support may still be necessary and standardising handsets may be a valid expense G It provides access to notoriously inaccessible groups such as low income or younger populations either directly via their mobile phones, via someone in their peer group with a compatible phone or via a fieldworker. Cellphones are personal Mobile research for respondent-administered surveys facilitates highly targeted campaigns because respondents can be identified and accessed by their mobile number. They can also be reached far more easily and quickly than via e-mail and post. This enables a respondent’s perceptions to be captured much closer to the point of engagement (a store purchase, for example). Furthermore, because people carry their phones with them, they can provide feedback from wherever they are. In addition to standard survey responses, using the multimedia capabilities of the phone, they can also provide images, audio, video and location information. Cellphones are dominant Cellphones are becoming increasingly powerful with rich media and impressive processing capabilities. Phone features, such as cameras, voice recorders and GPS, open up opportunities which aren’t possible with traditional media. In most cases, mobile research is best suited to quantitative methods due to the limited screen size and input mode. If there is value in receiving responses rapidly, reaching respondents during specific interactions or at specific locations, mobile research can provide tremendous benefit. The mobile research mode is particularly applicable in engaging with the youth. Some good examples of usage scenarios include: G Replacing paper-based surveys conducted by mobile fieldworkers G Mystery guest/shopping G Opinion surveys during or immediately after live events G Customer-initiated surveys (for example, airports, restaurants, waiting rooms). These are often initiated via short codes or QR codes G Mobile panels (self-administered or peer-administered) particularly where the target demographic has good mobile penetration rates but poor Internet access

G

Ethnographic studies where a respondent maintains a diary of activity, thoughts, etc. Using the multimedia capabilities

commonplace on many phones, qualitative research can be conducted as well (audio, video, images that can provide context not available during focus groups or face-to-face interviews). There are several technologies which can be considered: G Voice: a viable data collection method, particularly when making use of automated tools such as Interactive Voice Response (IVR ) and Computer Assisted Telephone interviews (CATI) G SMS: suitable in studies where the amount of data to be collected is limited (no more than five or 10 fields in general) G USSD: By dialling a pre-defined USSD string or code, the respondent accesses text-based menus and engages in a conversational exchange G MMS: rich media such as images and audio can be attached to normal text messages G WAP (wireless application protocol, mobile Web): Webbased forms designed specifically for access via a mobile browser. Invitations to participate are generally sent via SMS or a WAP push which contains a link to the survey G Mobile application: Download purpose-built data collection application or use appropriate existing client, such as instant messaging.
It is important to consider several key characteristics in order to understand the advantages and challenges of each technology: G Unstructured vs. structured formats – affects usability and accuracy G Internet vs. point-to-point transmission – affects how easily a campaign can be rolled out internationally G Time-based versus content-based billing – affects usage costs G Rich media vs. plain text, for both the user interface and the type of data to be collected G Offline vs. online collection – the latter requires a stable connection to the mobile network for the duration of the data collection process G Universal vs. non-universal handset support – what percentage of handsets are compatible. K
Andi Friedman managing director, Clyral Digital Solutions 0861 259725 andi@clyral.com

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Eye tracking – what does it all mean?
here is no doubt that the eye-tracking revolution has begun. Recent advances in hardware have improved the flexibility of eye-tracking systems and new software has eased the process of data collection. Eye tracking can be used to determine if consumers pay attention to a particular marketing message, and can separate out the effect that memory plays on such things as brand awareness, knowledge and image. But perhaps most importantly, eye tracking not only tells us if consumers look at a particular advertisement, but how they look at it. Eye tracking has a myriad of potential applications from the TV screen to the grocery shelf. However, for many, initial attempts to put eye tracking into practice have been less than satisfactory; data can be confusing and findings can seem inconclusive. Standard eye-tracking analysis software, which generates little more than a heat map of visual attention and some simple viewing percentages, demonstrates a problem of style over substance. Sure, the heat map possesses a great deal of ‘wow!’ value, but what can it really tell us about specific research questions? How does this tool get us any closer to understanding our potential customers? These are reasonable concerns. But before researchers transform their eye trackers into high-tech paperweights, it’s worth taking a step back and considering the methods. A meaningful interpretation of eye-tracking data requires a specialised course of analysis.

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Through quantitative analysis of eye data, researchers can add an objective component to a traditionally subjective field of study.

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There is no simple answer
A heat map is one of many useful ways to illustrate trends, but it should only be used to complement more descriptive assessments. The movements of the eyes are part of an intricate system that cannot be fully explained through simple analyses. This does not mean that the conclusions will be complicated. In order to draw insightful conclusions, our methods of analysis must delve deeper into the user experience. Quantitative and qualitative resources must be used together to establish a closer connection to the consciousness of the consumer.

Qualify the eye
There is a great deal that the human eye can show us. One important thing that it cannot do, however, is speak. Eye tracking is by no means a substitute for a good qualitative interview. When eye tracking and interviews are incorporated into a hybrid research design, the quality of both components is improved. One approach is to allow the participants to interact with the testing material without interruption. Once the interaction is complete, a video of their eye movements during testing is shown. As the participant watches their own visual behaviour from the testing session, they can recall first impressions, points of confusion, positive features and other details that may otherwise have been absorbed into more generalised recollections.

Quantify the consumer
A quantitative interpretation of eye-tracking data requires a working knowledge of statistical analysis and a full understanding of the many ways that eye data can be scrutinised. After designing a sound research study and running participants, the real fun starts. Most of the basic analysis software provides the option of examining the percentage of visual attention allocated to specific areas of interest. When used correctly, this is a powerful tool for demonstrating which features are seen and which ones are not. However, marketing research questions are rarely limited to a simple query about percentages. Marketers want to know why the consumer looked at an ad, and how, etc. You cannot underestimate the value of thin slices in building accurate interpretations of eye data. By dissecting the testing sessions into second-bysecond behaviours, a variety of new questions can be answered: What is the first thing that draws attention? How carefully is text considered? Which features are seen last? Which features are revisited? A quantitative analysis of eye tracking should aggregate these microfindings to clarify the more global conclusions demonstrated by overall percentages of attention.

Quantify the behaviour
Researchers must quantify the behaviour of participants and must incorporate qualitative feedback into the analysis. It is recommended that the researcher incorporate other data such as Web usability measures and questionnaire responses. There are different types of hardware to choose from, including remote and headset models. There are multitudes of stimulus presentation methods, performance metrics, graphic rendering tools and analysis plans that must all be carefully scrutinised to determine the correct path for your study. The key to applying it practically lies in the training and tools of the researcher. K
Lindiwe Matlali managing director, Prompt Research Insights (011) 575 6853 lindiwe@promptresearchinsights.com

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Online research
nline marketing research has traditionally been conducted by means of online and e-mail surveys, but there are other forms, including focus groups, bulletin boards, chat and discussion rooms, and online research communities. Plus, new online research methods are being fashioned from Web 2.0 developments that see researchers using blog research, online research communities and other interactive methods. These are making research more engaging and collaborative than anything that came before. Online research has been the fastest growing sector of research the world over for the past decade, but it’s still in its infancy in South Africa. Estimates from Inside Research reveal that one third of all data collection in the US was conducted online in 2006, with online research spend growing from US$253 million in 2000 to over $1 400 million in 2006. The good news is that online research can address a wide variety of topics. According to Inside Research, in 2006 the most common applications for online research in Europe were in the arenas of concept/product testing and customer satisfaction followed by advertising/brand tracking and usage and attitude studies. To this partial list could be added the numerous other applications for which online research works particularly well, including employee studies, website and online marketing evaluation, copy testing, visual design testing, business-to-business studies and numerous bespoke studies.

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The benefits of online research include:
G

Cost – estimates show that online research can be four times cheaper than face-to-face or telephonic research modes G Speed – shorter turnaround time on data collection G Quality – online research removes the ‘social desirability bias’ due to the presence of an interviewer, which means more candid and honest responses G Accuracy in presenting complex materials – video, sound and images are easily presented for evaluation in online research G Ease of gathering data across vast geographic areas – participants can contribute at any time, anywhere as long as they have Internet access G Collection of paradata – data can be collected on issues such as the length of time people take to complete a question or the survey as a whole, for example G Adaptive surveys – the survey ‘logic’ is built in when the survey is programmed ensuring that the right people answer the right questions at the right time G ‘Green research’/environmental sustainability – online research does not require printing of paper questionnaires or extensive travelling G Richer open-ended responses. The quality and integrity of online research has received a lot of deserved attention. Firstly, the availability of diverse and high-quality sample sources. In response to the international adoption of online methods, ESOMAR (the world organisation for enabling better research into markets, consumers and societies) released a checklist of 25 questions it suggests research buyers should ask of any online panel sample source they plan to use
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(http://www.esomar.org/uploads/pdf/ESOMAR_Codes&Guide line-Conducting_research_using_Internet.pdf) Secondly, at the respondent level ensuring data quality and respondent honesty is another concern. Measures like ‘data traps’, control questions and ‘digital fingerprinting’ are among the ways in which this has been dealt with. This is something research buyers need to discuss with their suppliers. Thirdly, surveys have become more engaging and adapted to the online medium, thus preventing high dropout rates. The main concern among prospective online research buyers in SA is sample representativeness. In cases where a significant proportion of the target market does not have Internet access, online research is unlikely to deliver an acceptable sample. This is less problematic when researching affluent consumer groups. Other concerns include not knowing the true identity of respondents, security concerns in presenting confidential materials online and a general concern that lower cost means lower quality. Advances made internationally see these concerns being addressed effectively. Online research can be successfully integrated with other forms of research: a quick online survey or online focus group could guide the design of a bigger face-to-face or telephonic project. Online research can also augment traditional research by providing access to hard-to-reach segments that prefer participating in research on their own terms. The rise of broadband Internet access, the increase in reputable companies offering online research and online samples, the recent diversity in online methods and applications, and the more welcoming attitude of the research industry should see online research in SA grow. K

Henk Pretorius director, Columninate 082 417 3207 henk@coliminate.com

Research 10

LSM extensions give industry better market insight
ver the years, as SA society has developed, so too has the SAARF Living Standards Measure (LSM). This much-used segmentation tool has changed several times since its inception in the late ‘80s to ensure it accurately reflects local markets. The latest change sees the upper LSMs being split into sub-groups for finer target marketing. Ever-increasing interest in the upper end of the SA market, coupled with strong competition, has made it increasingly important for marketers to be able to look at the upper segments of society in more detail. SAARF has therefore introduced the LSM Extensions from AMPS 2008A onwards. Each of the top four LSM groups has been split into two roughly equal groups, creating a ‘Low’ and a ‘High’ measure: LSM 7 Low and High, LSM 8 Low and High, and so on. Using the LSM Extensions, the industry can more finely define its target markets for products aimed at those with a high living standard. Suitable media can then be selected to reach these Low and High LSM categories.

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What’s in a name?
It is important to note the LSM Extensions are not, in fact, ‘new LSMs’. SAARF has split the groups, not changed their cut-offs; if they had introduced new cut-offs, we’d be back to the situation experienced in 2001, when the introduction of the Universal LSM scale created a new starting point for trending. Since LSM 7 Low and 7 High combined is identical to LSM 7, and so forth, one can still trend LSM data over previous years. This is why SAARF has not renamed the eight extensions LSM 7 through 14. We do not want a situation where the industry talks at cross-purposes: where, for example, a mass-market marketer calls the top end ‘LSM 10’, while the marketer who routinely uses the LSM Extensions would think ‘LSM 10’ referred to LSM 8 High. And when trending, how much simpler is it to add together LSM 8 Low and High to get the ‘old’ LSM 8, than to remember that the ‘old’ LSM 8 is the combination of LSM 9 and 10 in a 1-14 scale? The codes for the LSM splits can be found on software providing AMPS data as ‘LSM Extensions’. To find the LSM Extensions on the database/software, look under Demographics, Living Standard Measure and then click on LSM Extensions. K

Markets in greater detail

By analysing a market using the High and Low LSMs, many finer differences will emerge, particularly in LSM 10. Paul Haupt According to AMPS 2008B, in LSM 10, just over 63 per cent CEO, SAARF of people own a tumble dryer. If you’re selling tumble dryers, (011) 463 5340 you’d be better equipped knowing that in LSM 10 Low, 50 per paul@saarf.co.za cent of people have dryers, compared to just under 80 per cent of LSM 10 Highs. When it comes to dishwashers, 20 per cent of Top tips: youth marketing and research (The Insight Team, HDI Youth LSM 10 Lows have one, substantially fewer Marketeers) than in LSM 10 High where 50 per cent of Age-appropriateness: Understand that kids operate very differently from teens who are distinctly people have one. different from 20-somethings – design your research process to pitch at the specific age group There are many other examples of Environment: Conduct research in an environment where children feel at ease, so they’ll be how the LSM Extensions give a clearer more likely to open up and be insightful understanding of the top end of the market. Meet children at their level: It is important to see things from their perspective but do not In LSM 9 Low, just over 23 per cent of patronise them. Be upfront about what the research objective is and explain their role in it households have a monthly income of over Honest: Emphasise that the ‘research process’ is not a test where answers are either right or R20 000 per month, compared to 37 per wrong. Encourage them to be honest and communicate their ideas cent of LSM 9 High households. Validity: Reassure them that their opinions are valid and encourage them to volunteer Two out of 10 LSM 10 Lows travelled information even if it is different from that of their friends locally by air in the past 12 months. In Don’t put words in their mouth: Give them a platform to express themselves and listen to LSM 10 High, three out of 10 flew. what they have to say. After all, your ‘expert brand opinion’ is not necessarily in line with their The LSM Extensions are also invaluable opinion for media planning, highlighting intra-group Structure: Make sure that you have a clear grasp of the research objective so that you are in differences in media consumption. While a position to steer the research process effectively. Involving youth in research can invoke high 44 per cent of people in LSM 10 Low use the Internet on a weekly basis, about 54 per levels of excitement on their part and you need to make sure that their excitement levels don’t cent of LSM 10 High are online each week. compromise the process In LSM 7 Low, 44 per cent of people read Participant fatigue: Young people (particularly kids) have short attention spans and the an AMPS-measured daily newspaper. In research process must accommodate this in order to maintain interest LSM 7 High, you’ll find over half of this Engage them: Kids respond well to visual stimuli; images and props can enhance the quality group reads a daily. of their responses The LSM Extensions allow for finer Astute consumers: Young urbanites have grown up in a brand-saturated environment so target marketing in the upper LSMs, as this they’ve developed sophisticated consumer expectations. The challenge is to meet their graph for weekly consumption of wine demands and excite and entertain them. shows (Source: SAARF AMPS 2008B)
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Understanding the shopper as well as the consumer
A
cross the world, some nine out of 10 new products fail within their first year. This startling statistic clearly demonstrates that the traditional method of bringing products to market is woefully inadequate. So what is going wrong? Brand managers have always aimed to understand and influence their consumers, seeking strong brand equity and belief in their products. However, power in the marketplace ultimately comes from the shopper – and synergy between consumer strategy and shopper strategy is the key to greater success. This is because there are three main touch points for brands. The first touch point is the experience – the point of consumption – and the second is the consumer’s mental image of the product. Both of these usually involve consumers away from the store. The third touch point, which until recently has often been neglected yet is absolutely critical, is with the shopper in the store. The needs of shoppers and consumers are fundamentally different. Moreover, the influence of mass advertising is dwindling in the face of increasing media fragmentation and shoppers constitute an important audience. In-store activity is crucial for success in the quest to build brands through the line. To compete successfully, we need to understand how shoppers use the store.

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Choose the right partner
Many blue-chip companies are planning to increase their investment in shopper marketing and shopper research companies are springing up in response to the hunger for this data. There are many reliable and effective shopper research methodologies available to the researcher that in the right hands can yield hugely valuable information. The good news is that the price barrier to the use of many of these methodologies is not as high as one would think. The other good news is that the investment invariably pays for itself through the increased sales that are realised from practical learnings. But data in itself is not enough. If shopper insight is to drive new product development, packaging, marketing and merchandising – as it must – it’s necessary to demand not tables of data but practical, actionable insights. The rewards for those businesses that can rise to these challenges are significant. For retailers, shopper strategy ensures improved use of the estate through better flow control, store layout and adjacencies, merchandising that influences shopper choice, more effective range planning and persuasive in-store marketing. For brands, shopper strategy revolutionises new product development, marketing and pack design as products are created with the decision-makers in mind. Shopper understanding results in in-store activation that works, with price points and promotions aligned with the shopper’s needs and wants. It enables a genuinely innovative approach to business management. K

Don’t just listen to your customers – watch them too!
The mistake many brands make is to use traditional research to ask shoppers what they think, and to stop at that. But customers are unreliable witnesses who may post-rationalise – or provide the answer that they believe is expected of them. Even if they don’t, they will not be able to describe their in-store behaviour because 80 per cent of in-store decision-making is subconscious. To understand shoppers, it is necessary to observe them shopping, using objective methodologies such as filming and eye-tracking. Traditional research methodologies need to be coupled with a measure of actual in-store behaviour. True eye-tracking – as opposed to field of vision recording – enables every single eye fixation of every individual shopper to be recorded and analysed. A fixation is the point at which the brain registers a piece of visual information. So in contrast to merely recording what was in front of shoppers, it measures precisely what attracts each one and which elements are being used at what stage in the decision-making process. One of the very latest shopper research methodologies combines eye-tracking and electroencephalography (EEG ), which measures the brain’s electrical activity via electrodes placed on the scalp. Combined with respiration, heart rate, temperature and head motion measurements, this captures shoppers’ emotional and cognitive responses. Another area which has enjoyed a lot of focus by shopper researchers recently has been virtual reality research, which offers researchers the opportunity to conduct shopper research without having to do so in the actual store environment (the virtual store environments created nowadays are as realistic as ever!)
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Peter Wilson Business manager: Retail and Shopper Research, TNS Research Surveys (021) 657 9500 peter.wilson@tns-global.co.za

Research 10

The skill of research in the townships
irst, marketers have to accept that Soweto is not the only township. As versatile as the demographic make-up of Soweto is, it does not speak for all black consumers in SA. The mere fact that Black Label beer is called ‘Zamalek’ in Jo’burg and ‘10111’ in the Eastern Cape is an example that the townships are not the same. So we should stop fooling clients that the research that was conducted in Gauteng is supposedly a reflection of Mzansi. That brings me to my next point: townships are not the same. There are struggling townships, emerging townships and emerged townships. Therefore, townships as a market have different social classes and consumer market segments, each with distinct traits and characteristics. If one intends making a business investment in this area, they must be aware of this. This changes perspectives in terms of how one prioritises business and approaches these markets. In all these townships, you will find people – not respondents. If we are going to change this country, marketers and researchers cannot base their opinions about this market on a two-day immersion.

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A typical weekend in the townships basically includes drinking, getting arrested and doing laundry. Is that all that black people do? Is that why we see more alcohol and laundry powder ads in the townships? Unbeknown to marketers, that is not all that happens in the townships. For example, soccer is no longer the only entertainment. Freestyle street dancing has made major inroads among girls and boys aged 11to 18 years old in LSM 4-7. Others kids are involved in choirs, violin groups and hip-hop street battles. Yet, most of the ads targeted at township kids are about soccer. In the streets, the credentials of marketing and research companies don’t matter. So they can’t approach the likes of taxi drivers with the attitude that they are respectable companies. It is about relationships and being present even when there is no brief.
Lebo Motshegoa managing director, Foshizi (011) 463 7792 lebo@foshizi.co.za

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Top tips: Online research
Adam Rosenberg, head of Technology & Development, KLA Research You cannot access everyone using online research: The typical online user is LSM 7-10; living in one of the major metropolitan areas; between the ages of 20 and 60. According to AMPS 2008, 49.7 per cent of all people who have accessed the Internet in the past seven days falls into this category. Internet users are not the same as non-users: Research conducted in 2009 by KLA shows that Internet users are typically more open-minded, experimental and engaged in the wider world. They are exposed to more varied sources of information and media and are better informed and more discerning. Online research is more suited to quantitative studies than to qualitative studies: The nature of the online interface and typical online interactions means that it’s often more practical to get snapshot measurements from respondents rather than insightful comments. Online research is quicker than traditional market research methodologies: The target sample can be achieved in a shorter time simply because there is no ‘field work’ limitation to accessing respondents concurrently. Online research can be cheaper than traditional market research methodologies: There may be some restrictions in terms of minimum sample size but generally speaking, online research should be cheaper than other methodologies, allowing access to larger more robust samples. The Internet is ‘on’ 24 hours a day, seven days a week: Online surveys are accessible at any time of the day or night and can be completed at the convenience of the respondent. Online surveys are only a part of the research process: surveys need to be constructed according to objectives and data requires analysis and insight in order to turn it into something actionable.

vol 27 / issue 9/10 / 2009

marketingmix.co.za

7 day [B]itch

Cheryl Cooke
group executive: Corporate Marketing Services, Ellerine Holdings Limited (EHL)
24/08/2009 Out of the office last week negotiating with suppliers and visiting stores. Important face-to-face – after taking over the reins from the previous GME (here for 17 years). Desk from H$££ but never mind I’ll get through it… always do! Weekly muffin meeting with key personnel helps keep in touch with our vastly different retail furniture brands. End of F2009 so it’s BSM (brand strategy meeting) time, with emphasis on bigger and better deals for all our customers. BSM on Ellerines, Town Talk, FurnCity, Savells Fairdeal: great to work with enthusiastic new people at the head of these brands. Visit new-look store and I’m impressed – the extra effort has been worth it. Exco budget review: sterling job in containing costs but CEO reminds us that we need optimum value for every rand spent. Still find it hard to believe that I’m the first woman on exco in nearly 60 years of trading. Fortunately, the guys haven’t asked me to make their coffee! 25/08/2009 BSM on Wetherlys: premier brand but more affordable than people think. Visit the old Ellerines head office in Germiston, now transformed into a centre of learning and excellence. I admire the selfless women who started the project. Took time out with my 13-year-old son, Connor, to register for high-school next year. I’m grateful that I can afford the fees. Had to smile – even a private school runs late with appointments. Thank heavens for Blackberry! 26/08/2009 African Bank: presentation for the head honchos. It’s interesting to see how EHL has evolved since becoming a subsidiary of African Bank Investments Limited last year. BSM Beares & Lubners: miniature versions of the popular Beares mascot handed out by staff at hospitals and homes lend support to sick or abused children. BSM Furniture City: Urban Living celebrity endorsement.
marketingmix.co.za / vol 27 / issue 9/10 / 2009

27/08/ 2009 Visit new Woodhill Wetherlys store in Pretoria. Customers had fun shopping and we were pleased to learn that sales wise it was the best store opening ever. Wow! View year-end campaigns: This is the busiest quarter by far for all 1 100 stores in SA and neighbouring countries. Make or break time for the brands. Meetings with printers: emphasis on reduce, reuse, recycle, reinvent. We have some interesting ideas for protecting the environment. 28/08/ 2009 Breakfast at Tasha’s in Sandton, home of the best Belgian chocolate cake in Jozi. Then interview an extremely talented individual – amazing how few and far between true retail marketers are. EHL and brands are in an exciting new phase of stabilisation, growth and building. Good enough reason to celebrate the opening of the new corporate HQ in Marlboro. First achievement award, Wings of Hope, presented to our inspirational CEO. Employees almost stopped the traffic on the M1 North as they bopped on the roof garden in their pink feathered wings to the sounds of rock band Prime Circle. Event organised in-house and I say quietly, “I knew my staff would rise to the occasion … even without wings.” And, now I’m only 5km from home – much less traffic to deal with. Yippee! 29/08/2009 Invited to Coca-Cola Park to watch rugby – Lions vs Blue Bulls. (First time in a box – rather than out). Disappointing score-board – playing for SA appears costly to some of the provincial sides. Mom’s taxi for Connor, who is attending a Bar Mitzvah, and fill in time with my friends at a delightful Thai restaurant in Craighall. Seemed like we had only just sat down when pumpkin time arrived. Found a few minutes to put my nose in Meatball Sundae (Seth Godin) and Funky Business Revisited (Kjell Nordström) before going to sleep.

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Thank heavens for Blackberry!

30/08/2009 Connor visits his grandfather so it’s time to watch a DVD. Fascinated by the Vietnam era; I’m in awe at how many lives were lost and how much money was spent on a war that couldn’t be won. I wonder if the world will ever embrace diversity and spare us the vain attempts at preserving society as only one or another culture knows it. I have to admit to being an ardent visitor to the malls (Sandton City, Bluebird and Morningside are favourites) but I don’t mind telling you that many friends have dropped long before I have shopped… and shopped… and shopped! K

Expert opinion

Customer-centricity:
the new buzz-word
I
recently read an article that debated whether organisations should adopt a customer-centric model, and I must admit to sitting back in shock. I’m amazed that companies continue to debate this issue. It seems direct marketing is the new pink, with more and more ad agencies embracing this ‘new’ thinking of 1-2-1 marketing. A customer-centric business tries to find as many products and services as possible for the customer. It creates solutions and experiences for its customers. As the market continues to become more fragmented and businesses develop deeper relationships with their customers (using, among other tools, social media) – it can only be about people and understanding what drives their purchasing behaviour. Technical expertise needs to be in the mix for survival when all others are getting on board with this. CRM starts in the CEO’s office and once it is adopted as a board strategy, the rest of the business will embrace it. Until such time, the customer and their needs are often treated in an off-hand annoying manner. A customer–centric approach and customer service are inter-linked and while the one should not be mixed with the other, organisations that are leaders in both are the most successful. I’m known for my acerbic brand commentary, and I’ve decided to incorporate these commentaries – based on my recent encounters with brands – into my column. You’ll notice a trend emerging: it’s my experience with these brands that makes or breaks my affinity to them. I travel locally – far too much for my own sanity – to visit family and friends. My search begins almost every two weeks for the cheapest flight at the most suitable time. I can’t be brand loyal in this case; these brands are all customer centric! These brands are all great examples of how they differentiate themselves beyond a simple points programme. 1time always flies on time, and you can now go to the self-service kiosk to book. Their Cape Town to Durban flight is speedier than that of the other airlines – what a winner. Usually, cost is low, and I really cannot complain about the service either. Kulula is cool. My Vitality discount of 20 per cent helps to reduce costs further. Plus, I usually manage to fly on their British Airways planes, which means the in-flight food includes Woolies snacks. With British Airways I am able to use my precious Investec card (I am so brand loyal to this bank I think it should give me free banking for a year) to gain access to the BA lounges – a real bonus if I’m early for my flight. Plus, sometimes the cost is lower than that of the above two airlines. I recently had to fly Mango as my ticket was paid for by a third party. I arrived at Cape Town International Airport to discover my ticket hadn’t actually been paid for. Within seconds, a supervisor appeared out of nowhere and with a quick phone call to my colleague, resolved the issue. And guess what – I had more than enough legroom on the plane and the staff were really pleasant! Talking about air miles programmes, I once again cite Investec’s incredible Dividends programme; I don’t fly enough internationally to amass miles, but by cashing in my points I have enough miles to qualify for first-class tickets on BA flights. And now they have a website that will exchange my points for any airline miles. Needing to go to the UK in September, I tried to book my trip online but got horribly stuck. I called BA Executive Club, and the Patient Saint of Call Centres made sure that half an hour later (poor guy), I had what I needed. Of course a week later I needed to change the trip slightly, and a different Patient Saint answered my call and proved equally helpful. Marketers need to evolve once and for all and get into segmentation and deeper customer understanding in order to turn their offerings around and compete in the real world. More and more the customer has the last say and engages as they want to with your brand and no longer how you think they wants to. K

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Nici Stathacopoulos head of Retail/WFS Integration and Rewards Project, Woolworths nicistathacopoulos@woolworths.co.za

vol 27 / issue 9/10 / 2009

marketingmix.co.za

Expert opinion

FIFA Confederations Cup 2009: who scored and who missed?

T

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Neil Jankelowitz MD, MSC Sports (011) 646 7340 neil@mscsports.co.za

he first half of our match has come and gone and by all accounts SA staged a unique, thrilling and professional tournament. Entertaining football introduced the world to the sights and sounds of our Rainbow Nation, leaving a great sense of pride among our people. The cities of Johannesburg, Pretoria, Bloemfontein and Rustenburg were taken by storm as the world’s top teams fought for the coveted Trophy. On the sports marketing front the question remains: who belted the ball into the back of the net and who missed the target completely? In my opinion, the first goal comes from Sony with its aggressive above-the-line campaign using Brazil and now Real Madrid maestro, ‘Kaka’, as its king pin. The comparison between player and product with regards to its product’s clarity and precision was apt, and no doubt achieved the goal of securing top of mind awareness for the Bravia. The second brand to score was powerhouse McDonalds. The fast-food brand made superb use of Bafana Bafana star Teko Modise as ambassador for its player escort programme. The execution of the through-the-line campaign secured brand awareness as well as engagement with the brand’s direct target market, which is always the most valuable tool in marketing and one few brands manage to achieve effectively. These examples highlight the power of using a suitable brand ambassador to capture the consumer’s mindshare and engage with the relevant market in an exceptionally competitive and cluttered space. Taking us 3 – 0 up, was brand favourite Coca-Cola. An innovative trade and consumer campaign was promoted aggressively throughout the Confederations Cup. This campaign was one in which the consumer was encouraged to purchase a six pack of Coke and SMS the relevant number on the pack to stand a chance of winning a limited edition, personally autographed number 10 jersey. Each jersey was signed by the world’s great number 10s, including Pele, Maradona, Zidane and the like. This is another excellent example of how to leverage one’s rights in an innovative and effective manner to drive consumer behaviour and maximise return on investment. As with all matches, there were opportunities that went begging, and some

that were missed completely. One such miss came from The ‘McDonalds’ fan dancers – a half-time campaign which was poorly executed. The dancers were uninspiringly dressed; they failed to engage with the crowd; and danced in a small corner of the field. Absolutely no excitement was created around this unimaginative activation. The second missed opportunity was the FIFA sponsor/associate fan zones at the stadiums, which proved to be little different, creative or memorable. I sincerely hope that sponsors will go back to the drawing board and rethink their approach to these elements and look to engage with the fans more aggressively.

“The post-match sentiment is one of pride and joy as a fantastically successful tournament was hosted in our magnificent country.”

One such way to engage with potential and current consumers is by addressing and catering to a need. For example, the need that was exposed during the competition was the ‘park & ride’ initiative. To win the Man of the Match award, perhaps one of the FIFA partners could have run a campaign similar to the Outsurance pointsmen programme, to smooth out transportation systems. Another need was warmth, as the South African fans braved the freezing winter weather. What a fantastic opportunity to engage with fans by serving free coffee or handing out branded beanies and scarves. Overall, however, the post-match sentiment is one of pride and joy as a fantastically successful tournament was hosted in our magnificent country. With the 2010 FIFA World Cup less than 300 days away, it will be fascinating to see which brands will create a successful formation, move the ball around effectively and ultimately Make Sport Count! Bring on 2010! K

marketingmix.co.za / vol 27 / issue 9/10 / 2009

Expert opinion

Measuring the technology readiness of consumers
There are very few activities today that consumers engage in that do not involve some level of interaction with technology or technological devices. Much has also been said about the role technology plays in augmenting marketing strategy (making it an intrinsic part of marketing communication through SMS and MMS use and areas such as database management, for example) but marketers know from experience that some technologies work better than others in adding value to their offerings. It’s also true that some technologies introduced to the market are adopted in the mainstream while others never take off. In a developing economy such as SA, cellphone technology has brought about exciting opportunities for growth; the cellphone banking solutions that are introducing the formerly unbanked to financial services, for example. Making technology-based products and services available could typically create advantages for consumers and banks or retail stores. Yet consumers are becoming more frustrated in dealing with technology-based products and services; in fact, many exhibit technophobia or technology pessimism. Research out of the UK indicates that 85 per cent of cellphone users reported they were frustrated by the difficulty of getting a new phone to work. Further, 95 per cent said they would try more services if these were easier to use. It seems that consumers are not equally ‘ready’ to adopt technologybased products. To measure consumers’ technology readiness, Parasuraman (2000) developed a measure known as the Technology Readiness Index (TRI) – the likelihood of people to embrace new technologies for accomplishing their home and work goals. It has been found that technological readiness is a good predictor of technology-related behaviour. If a marketer knows the technology readiness of its consumers, then it becomes easier to develop a technology strategy as well as assist in managing the link between consumer and technology to the benefit of both parties. Technology readiness of consumers is measured over four dimensions, which indicate how consumers view technology (optimism); their tendency to be a front runner when it comes to new technology (innovativeness); their perception of the extent of the control they have to give up when confronted with technology (discomfort); and, finally, their level of trust in the technology working as it should (insecurity). The higher the TRI score realised by consumers out of a possible five, the more technology ready they are. In research conducted by the University of Johannesburg’s Department of Marketing Management, the technology readiness of urban consumers in Gauteng was measured. Specifically, the research was focused on the adoption of banking-related technology products, and a TRI score of 2.53 was obtained. In comparison, a similar study conducted in 2000 in the US realised a TRI score of 2.88. The result was expected, indicating that consumers in a developed country are more ready to embrace new technologies than those in a developing country. The following interesting findings were made with regards to urban consumers in Gauteng: G Ninety six per cent of respondents indicated that they do have products such as a bank accounts, credit cards (55 per cent), cellphones (97 per cent) as well as landline telephone access (74 per cent) and Internet access G There is limited use of cellphone banking (25 per cent), landline telephone banking (14 per cent), SARS eFiling and online shopping via banking reward schemes. Consumers, however, do make use of ATM banking (87 per cent), Internet banking (45 per cent) as well as SMS or e-mail banking notification (49 per cent) G Younger consumers, who have a greater ability to use and master technology compared with their older counterparts, realised a significantly higher TRI score. Banks need to target these consumers in order to generate more users of their innovative technologies. Older consumers are effectively limited through a lower level of access and adoption of technology G Male consumers also realised a higher TRI score than females G More formally educated respondents also had a significantly higher TRI score than those who were less formally educated, indicating that the former will adopt innovative technologies which in turn can be passed on to less educated respondents. K

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Danie Petzer (011) 559 4054 dpetzer@uj.ac.za Adele Berndt (011) 559 5404 aberndt@uj.ac.za Department of Marketing Management, University of Johannesburg

marketingmix.co.za / vol 27 / issue 9/10 / 2009