MarketingMix
I 0 2 I Book Review
Marketing Mix reviews Purple Cow:
Transform Your Business by Being
Remarkable, Seth Godin’s latest
must-read for marketers
I 0 4 I Ed’s note
I 0 6 I DMA
After its first operational year, the
DMA reports on its successes and
introduces new founder members.
I 0 7 I News
All the latest gossip in the wonderful
world of the marketing mix
I 1 2 I Expert Opinion:
Richard Duncan
Richard talks about mobile battles
down under
I 1 3 I Effective
Marketing in Africa
Insights from experts and brand
managers who have made it in Africa
I 1 4 I Brand Anatomy
Marketing Mix explores the
intriguing personality of Smirnoff
Vodka
I 1 6 I Expert Opinion:
IMM
Helen McIntee gives marketers advice
on how to bounce back
I 1 7 I 7 Day [B]itch
Joe Public’s creative director, Pepe
Marais, tells us why he’s a dog lover
I 1 8 I Direct Marketing
Marketing Mix looks at Direct to
Home marketing, and finds some
exciting new ways to boost a direct
to home campaign
CONTENTS
22 I 2 1 I Expert Opinion:
Michele Venter-Davies
Michele gets googly over alternative
media
I 2 2 I Assegai Awards
Marketing Mix takes a closer look at
some of the Gold prize winners
I 3 6 I Expert Opinion:
Nici Stathacopoulos
Nici tries to define direct marketing
01 I 3 8 I Expert Opinion:
39 Nicci Columbine
Nicci finds the value in call centres
I 3 9 I Expert Opinion:
Yoav Tchelet
Yoav tells us how to measure ROI
09 online
43
I 4 0 I This thing called
CRM
Susan Moerdyk shares some insights
from Markinor’s State of Marketing
study
I 4 3 I Afrikaans Media
Marketing Mix looks at the Afrikaans
54
media landscape
11 I 5 0 I Marketing
At-Retail
Marketing Mix brings you the latest
thinking on Point of Sale marketing.
I 5 5 I Expert Opinion:
DMX
56
Craig Cesman explains the difference
between interruption and enjoyment
14 I 5 6 I Law Mix
Fayeeza Kathree-Setiloane and
Omesha Moodley look at ICASA’s
subscription broadcasting licences,
and public service broadcasting
Vol 25 No. 11/12 I 2007 I MarketingMix 1
by michelle sturman BOOK REVIEW

Marketing to the Social Web

How digital customer communities build your business
When a guy like Larry Weber decides to
write a book and impart his knowledge and
wisdom to marketers on how to use social net-
working and digital communities to build
brands and business, you should be devouring
every word. If you don’t know who Mr Weber
is, then look up info on the W2 Group.
The basic premise to the entire book is how
to communicate with consumers using the
Internet and its various new technologies. One
of the most valuable but least understood
aspects is the online consumer community.
Weber points out succinctly on his opening
page that ‘instead of continuing as broadcasters,
marketers should – and will – become
aggregators of customer communities. Rather
than broadcasting marketing messages to an
increasingly indifferent, even resentful, audience
jaded by the 2 000-plus messages the average
American is reputedly exposed to every day,
marketers should participate in, organise, and
encourage social networks to which people
want to belong… And the social web is the
most effective way in the history of the world to
do just that on a large scale.’
So what exactly is the social web? Weber calls
it ‘the online place where people with a
common interest can gather to share thoughts,
comments, and opinion.’ It is probably better
known by its longer title of social networking,
including some of the most well-known web-
sites – MySpace, Facebook, LinkedIn and Flixster.
Weber insists that the Internet is becoming
the most important marketing medium, the
umbrella if you like. So if you believe this can be
true, even in South Africa at some stage, then
Weber offers a myriad of social web case studies
and a step-by-step guide on what and what not
to do to succeed in this dynamic and important
new world.
As mentioned, the job of a marketer in this
environment is aggregator, which can be done
in two ways: providing compelling content
(research, ideas, opinions) and environment Component: brand equity
(where people can share knowledge) for Old marketing: brand recall is Holy Grail
customers to visit and/or by participating in New marketing: brand value is determined by
the public arena by taking part in discussions customers: how likely are customers to highly
as experts in the relevant fields. This way, a recommend good or service?
marketer can become involved in building
communities. Component: targeting
A community can provide targeted brand Old marketing: target by demographics
building, lead generation, partnerships, research New marketing: target according to behaviour
and development and employee communica-
tions. In making the transition to the social web, Component: communication
Weber offers a neat chart on old versus new Old marketing: broadcast style: create and
marketing. Some of the differences include: push message out for customers to absorb
New marketing: digital environment for inter-
active communication through search and

Handbook of Public Relations query, customer comments, personal reviews

or dialogue.
Eighth Edition The most important pages in the book come
in Part II where Weber, very kindly, provides a
An essential read for anyone studying PR and one to seven-step guide to building a customer com-
have as a ‘helping hand’ for practicing PR professionals. munity as well as expert advice on various
The last edition was published in 2004 so quite a bit has strategies including social networks, reputation
been added since: new case studies, including the Nelson aggregator and blogs. Filled with very useful,
Mandela Children’s Fund; event checklists, new information easy-to-understand and digest info, Weber pro-
regarding corporate social responsibility and the role of PR, vides everything you need to know on social
and an updated chapter on our multicultural market. webs as well as plenty of case studies.
The necessary building blocks of PR are in the handbook It’s worth reading even if you think you’re
and include: not interested in online communities. Oh, and
Fundamentals of PR; PR and research; PR and marketing; by the way, Weber says that Web 2.0 is actually
planning a PR programme; PR and the media, effective com- Web 3.0 with Web 4.0 just around the corner –
munications; promotional activities and PR and crises.  the use of rich media, broadband and high defi-
nition – making the Internet more emotive. 
Handbook of Public Relations
Eighth Edition Marketing to the Social Web
Chris Skinner, Llew von Essen, Gary Mersham, Sejamothopo Motau
By Larry Weber
Oxford University Press Southern Africa
John Wiley & Sons, Inc
R325
R264

2 MarketingMix I Vol 25 No. 11/12 I 2007

ED’S NOTE

PROPRIETOR AND PUBLISHER:
Systems Publishers (Pty) Ltd.
Tel: (011) 234 7008
North Block, Bradenham Hall,
Mellis Road, Rivonia
PUBLISHER: Terry Murphy
EDITOR: Michelle Sturman
e-mail: michelles@systems.co.za
JOURNALIST: Fulvia Becatti
e-mail: fulviab@systems.co.za
SUB-EDITOR: Jenny Bastomsky
e-mail: jennybee@telkomsa.net
ADVERTISING MANAGER:
Robyn Andrews
e-mail: robyna@systems.co.za
PRODUCTION:
Spencer van Graan
e-mail:
spencerg@systems.co.za
SUBSCRIPTION ENQUIRIES:
Daisy Mulenga
Email: daisym@systems.co.za
A whole
new world
It is with great sadness, but great excitement that I write
this, my last ed’s note to you, my dear readers. Great
sadness as I leave the print world, but great excitement as
I move into the world of cyberspace, bits, bytes, blogs and
daily reporting.
But fear not. I’m not moving far. In fact, I’ll still be sit-
ting behind my usual desk with the same laptop in the
very same office as I take Marketing Mix online. The web-
site will go live early next year and will keep you up to
date with news and views that are important to the mar-
keting world. Like the print edition, all the news and information posted on the Marketing Mix
website will be carefully selected and it won’t be filled with every press release that pops into
my inbox.
There will also be views from some of the country’s top marketers and media gurus offering
advice, opinions and information in bite-sized chunks along with the chance to interact with
them. The website will also offer the Marketing Mix archives – a wealth of information captured
from over 20 years’ print editions. There will be lots more features on the website but you’ll have
to visit it to find out what they are. If you want to contribute to the website in some way, give
me a shout and I’ll be happy to chat to you.
In the meantime, I’m very pleased to announce that Fulvia Becatti is your new editor and takes
over from the next edition of Marketing Mix.
Have a wonderful holiday season and the next time you hear from me will be from
www.marketingmix.co.za.

Copyright of all material in this

publication and supplements are
reserved by the proprietors, except
where expressly stated. The opinions
in this publication do not necessarily
represent the views of the publisher.

Database:
List Perfect

3 944 Jan-June 2007

4 MarketingMix I Vol 25 No. 11/12 I 2007

 DMA

A year in the life of...

The DMASA has come through its first operational year, and its successes proposed Marketing, Advertising and Communications BBBEE Charter (which
were reflected on at the AGM held in November. “By all accounts the DMA was accepted by Minister Pahad and is now with the DTI for approval).
has had a challenging but phenomenally successful year, a fact that bears The Assegai Awards were welcomed back, with close on 140 entries.
testimony to the high calibre of our board members, leadership and indus- Board members announced for 2008:
try, and their commitment to making the association work for its members,” Patrick Muthui — Rand Merchant Bank
says Brian Mdluli, CEO, DMASA. Over the past year, the DMA has made Darryl Joubert — Intimate Data
progress engaging with government and the industry, securing a number of Illona Hilditch — Alexander Forbes
rulings vital to the well-being and growth of the direct marketing industry Ian Geary — Computer Facilities
as well as to the serving of consumer rights. “The DMA board has set some Michelle Perrow— Lesoba Difference
tough standards for all board members in lobbying government at the most Christiane Duval — Umthetho
senior levels on pending legislation,” says Mdluli. Janras Kotsi — South African Post Office
DMA membership has grown to eight founder members and 140 corpo- Brian Mdluli — DMA CEO
rate members. The number of founder members will be capped at 10 and Albie Aucamp — African Bank
so far includes: First National Bank, RCS, South African Post Office, MTN, Jeff van der Watt — Rand Envelope and Tunley’s
Computer Facilities, ABSA, Avis and HomeChoice. Gary Simpson — Premier Growth Group
During this year, the DMASA also became one of the signatories to the Andy Quinan and John Rollason have resigned from the board.

New founder members that government has listened to us and has

The DMA has three new founder members:
HomeChoice, Avis and Computer Facilities.
Avis
“Avis benefits from its relationship
with the DMA by being kept
abreast of industry trends and leg-
islation. This allows us to communicate with our
customers in a caring way and ensures we
remain sensitive to issues around communica-
tions legislation. While we regularly communi-
cate with our members through our e-zines and
personalised correspondence, the DMA enables
us to see how the industry is growing and what
other industry players are doing and achieving.
It provides a great networking opportunity and
allows Avis to share its work with the larger
direct marketing community,” says general man-
ager of marketing, Zanele Mamba.
Computer Facilities
“Computer Facilities is proud
to be a founder member of the DMA.
Furthermore, we are proud to provide the asso-
ciation with additional services free of charge,
such as maintaining its membership and Do Not
Contact Me databases, providing accounting
services as well as handling bulk e-mails and
SMSes.
“The direct marketing industry has always
required a controlling body which looks after
the interests of all, and the lobbying that has
taken place over the past year with government
has been essential for the entire industry. The
original wording of some of the proposed acts
would have crippled our industry and made
thousands of people redundant. We are pleased
taken notice of our concerns.”
“The DMA is in its infancy and was recently
awarded the New Association of the Year award
by the Services Seta. This is a great achievement
and most definitely a feather in the cap for the
enthusiastic CEO Brian Mdluli and his team. The
relationship that has been developed with the
Services Seta and the Department of Trade and
Industry as well as other organisations bodes
well for the future of the DMA.
“The very well-organised Assegai Awards, held
at the beginning of November, paid tribute to
everyone involved with the DMA and we, as
Computer Facilities, were very surprised but
honoured to be awarded the Assegai for
Organisation of the Year,” says Ian Geary, man-
aging director, Computer Facilities.
HomeChoice
“As South Africa’s biggest catalogue retailer, the
state of the direct marketing industry and any
legislation that affects our trading environment
is of prime concern to us. Having a single body
to communicate with members on issues affect-
ing them and, more importantly, having that
body act as a strong lobbyist for the industry is
vital. The success of the new DMA will in large
part depend on it having the support of big
industry players. That’s why we decided to
become founder members. We look forward to
seeing the DMA grow into a body that encour-
ages and develops high standards in direct mar-
keting, keeps the industry abreast of global
trends and provides a collective voice that gives
our industry the gravitas it needs when speak-
ing to government,” says Anthea Abrahams,
marketing director, HomeChoice.
Join the DMA…
To join, visit www.facilities.coza/dma
DMA fees are paid annually on the anniver-
sary date of joining the organisation and are
based on the size of your company. Payment
can be made via cheque or EFT. An invoice
will be
e-mailed as soon as you have completed the
online membership. Before you go to the
link above in order to register to become a
member, you will need to have the following
information available:
 Your company details
 Your company coordinator’s details ie
the person who will be responsible for
keeping your company details up to
date on a quarterly basis
 Your company decision maker’s details
ie the person who will authorise your
membership of the DMA and the
essential payment of membership fees
 The details of staff members who you
believe should receive information
updates from the DMA on an ongoing
basis. If you do not have all the details
with you, your company coordinator
can go back into the system at any
time to update these details
Contact details:
(011) 577 2780
dma@facilities.co.za
www.dmasa.org

6 MarketingMix I Vol 25 No. 11/12 I 2007


The soccer link
The LIVEMOBILE ‘Portal in a Box’ lets advertisers
reach a potential market of 27 million South
Africans, and 415 million more African mobile
users, on their mobile phones through a portal
that takes soccer news directly to cellphone.
After 18 months of development and behind
the scenes work to ensure that content can be
rendered to different types of handsets.
“The plan is to launch a country-specific ver-
sion of the portal across Africa and even glob-
ally. This will ensure that we can offer country
specific users a localised experience and also
offer the service to country specific sponsors
and advertisers,” says Patrick Kuwana, CEO,
Umliba and director of PA Sport South Africa
(which Umliba also has a stake in).
The system requires handsets to be GPRS
and WAP enabled, but with 95 per cent of all
phones sold in the past two years being GPRS
enabled, Kuwana is positive about the offer-
ing. He refers to data collected by Admob (a
leading global mobile advertising network),
which found that in September 2007, South
Africa had the third highest number of mobile
ad impressions in the world after the US and
India respectively.
The LIVEMOBILE service will deliver mobile
soccer channels for the Barclays English
Premiership League, the South African Premier
Soccer League, other major global soccer
leagues and competitions; channels for rugby,
cricket and Formula One will be available soon.
The majority of the data is sourced from PA
Sport, but the service also allows for mobilisa-
tion of content from existing Internet sources
(websites, blogs, social networks, etc). “This
means we have an endless source of content
that we can provide to mobile users,” says
Kuwana. “Even though we have focused on
sports first the platform will soon introduce
channels for entertainment, business news,
African country by country news and others.”
Advertisers can choose from text and/or
banner ads as well as click-through ads. “One
unique aspect of the service is that it can
mobilise existing web-based ads, without forc-
ing the advertisers to make changes to their
creative. Web-based ads get optimised in real
time to the end-user’s device,” says Kuwana.
Currently, Umliba is pursuing a sponsorship
model, rather than an open-ad network
model. Ad placement pricing varies based on
the commitment and scope provided by the
sponsor; a portion of the pricing can also be
based on click-through traffic.
“At the moment, we are offering a fixed-fee
sponsorship structure on a per country basis. If
a company wishes to sponsor multiple country
portals, they can do so at a discounted rate,”
says Kuwana. “The value to advertisers is the
ability to get their message delivered directly to
a user using a rich media experience within a
context that is relevant to the user. They are
guaranteed that the user will see them and,
more importantly, the user can be profiled and
further communicated to directly,” says
Kuwana. Traffic through the site will be
monitored, so advertisers will know exactly
how many people are viewing their ads.
For users, the basic service is free and
includes fixtures, results and league tables, etc.
The premium service, which will have an expect-
ed monthly fee of around R20, will offer users
access to live match commentaries, previews
and downloads (wallpapers, ringtones, etc). “A
feature we are bringing into the service early
next year is the ability for all users to participate
in chat forums and messaging, using the instant
messaging (IM) communication option which
will be freely available,” says Kuwana.
The portal is powered by BUZmob, a pub-
lishing service for mobilising Internet content
developed by Canadian company Contec
Innovations.
You can link to the live demo by entering
your cellphone number on http://umliba.buz-
mob.com/urlsms.php?page=soccer.
Vol 25 No. 11/12 I 2007 I MarketingMix
NEWS
Urbandictionary.com
Moobs: a combination of ‘man’ and
‘boobs’. This is what happens when fat gath-
ers in a male’s chest area and gives him the
appearance of having breasts. Usually seen in
overweight males, but can strangely also
occur in men who are not overweight.
Facebook surprise: when you don’t know a
picture has been taken of you until you see it
uploaded by someone else on Facebook –
usually an embarrassing picture.
Summer teeth: used to describe somebody
who is missing some of their teeth – summer
there and summer not!
Textual intercourse: the consummation of
a relationship via SMS.
Husband chair: a chair in a women’s
clothes store or department for a guy to sit
on and wait while his wife or girlfriend
shops.
Work hot: a person that may or may not be
hot, but is the most attractive person in the
set of people you work with so you lust after
him or her.
Man stand: The act of a man standing
outside a shop while his wife, girlfriend or
partner shops inside. Man standing involves
looking into space, at other women, or in the
case of multi-storey shopping centres,
leaning on the railing of an upper floor
watching the people below.
7
NEWS

Five new channels have been added to
the DStv bouquet: Sony Entertainment
Television (SET), Animax, One Gospel, M-
Net Stars and Style Network.
According to Chris Hitchings, director
of sales, Oracle Airtime Sales (OATS),
these channels are not yet commercially
viable. Following a six-month ‘settling’
period, OATS will make a decision as to
whether to consider commercial insertion
on any of these new channels. “This deci-
sion will be informed by a variety of fac-
tors, including; channel audience ratings,
environment, likely demand from industry,
the ability to add value to our current
sales proposition, etc,” says Hitchings.
In the meantime, here is some back-
ground info on Animax and SET.
Marketing Mix will take a closer look at
the other channels in future issues, and
will let you know when they will start car-
rying advertising.
Channel: Sony Entertainment Television (SET)
Ownership: Sony Pictures Entertainment
Launch Date: 2 November 2007
Platform: DStv, channel 108
Programme highlights: Launching
under the tagline ‘100 % Entertainment’,
the SET channel delivers a family friendly
mix of programming genres that appeal
to a range of audiences. Programming
includes movies and series, including such
popular shows as Las Vegas and Party of
Five. According to Ross Hair, senior vice
president, International Networks, EMEA,
Sony Pictures Television International, the
parent company has been debating
whether or not to create mobile content
for the channel. “There is constant debate
about whether to set up a production
facility dedicated to short content. We do
see people downloading more and more.
But the debate questions whether they
prefer long or short content,” he says.
“We are excited about the SET channel.
Our movies and high-quality entertain-
ment set us apart, so we hope to intro-
duce our linear services to mobile soon.”
Target audience: anyone between the
ages of 15 and 49 years.
Channel: ANIMAX
Ownership: Sony Pictures Entertainment
Launch Date: 3 November 2007
Platform: DStv, channel 111
Programme highlights: This channel is
dedicated to Japanese animé, and it cov-
ers a range of genres (romance, horror
etc). “We have entered this channel into
markets in which the animé audience was
not so big, and we have grown it,” says
Hair. “animé deals with serious themes,
universal themes. Visually, and in terms of
content, it is different to anything else
that’s out there.”
Animax has joined forces with MXit
locally, as part of the marketing campaign
for the channel. MXit’s core users are,
demographically speaking, Animax’s core
audience, so the mobile channel is ideally
positioned. “Our targeted audience is a
desirable fan base. It is both Internet and
mobile savvy, and with the amount of
time spent watching TV declining, we
must reach it via mobile and online
media,” says Hair. Consumer testing will
be carried out too, and the team also has
plans to take info and content to the web
and cellphones.
Target audience: viewers and fans aged
between 15 and 29, looking for alterna-
tive content and entertainment.

Your face on Facebook

Your brand’s face, that is. The social networking giant has just released its
advertising ideas to the world, and Facebook ads looks good even for
South African advertisers. South Africa is the eighth largest country in
terms of active users, while the South African Facebook network is one of
the top three fastest growing networks on the website.
So what’s on offer? Facebook has introduced Facebook Pages that
allow brands to build a Facebook page, including video, photos, appli-
cations, etc and Facebook Social Ads that deliver precisely targeted ads tem, and today we’re releasing a privacy control to turn off Beacon
that can run on users’ news feeds or is visible on the left side of the site. completely. If you select that you don’t want to share some Beacon
Facebook Insights make up the final part offering market intelligence actions or if you turn off Beacon, then Facebook won’t store those
and analytics information. A sales team can be contacted to help with actions even when partners send them to Facebook.”
campaigns although Facebook’s step-by-step guide to building ads and Help is also at hand in the form of applications through Platform
brand pages is easy. and polls can be developed. For more detailed information, visit
Other useful tools include Beacon, which is a few lines of code www.facebook.com/ads.
added to a brand’s own external website. Beacon sends information Local Facebook brand pages
back to the user’s Facebook profile when they take an action – a pur- • BMW South Africa
chase, signing up for a service, etc. However, there was uproar from • Traveldex South Africa
Facebook users regarding its opt-out only policy and on December 5 • SmartSphere South Africa
2007, CEO of Facebook, Mark Zuckerberg posted this message on the • South African Travel
Facebook blog: “Last week we changed Beacon to be an opt-in sys- • All About Africa Tours & Travels

8 MarketingMix I Vol 25 No. 11/12 I 2007

 NEWS

Bokomo Weet-Bix Writers block

thanks you The US writer’s strike is having a significant impact on TV production, wreaking havoc with pro-
gramming schedules audiences were down by around nine per cent across the pond at the time
Marketing Mix recently took a closer look at of going to press. Major TV series such as 24, Desperate Housewives, Grey’s Anatomy and Prison
the Bokomo Weet-Bix ‘Thank You’ campaign Break have stopped production while talk shows such as The Tonight Show with Jay Leno and
and sales promotions (Vol. 25, issue no. the Late Show with David Letterman are off the air. Depending on how long the strike lasts, it
9/10; page 54), and now we can report that could begin to affect programming in South Africa, M-Net in particular.
the campaign succeeded in raising R1 million
for Childline over six months.
According to Bokomo Foods brand man-
ager, Jan Louw, the campaign was designed
to thank consumers for their support over
the years as well as to create awareness and
generate funds for a worthy cause.
Bokomo replaced the Weet-Bix name on
all packaging with the words ‘thank you’,
and targeted consumers of the brand and
South Africans who felt that “they could
make a difference by contributing to the
future of our country and our children”. Although, according to Jan du Plessis, director of Channels, M-Net, the strike will have to
Bokomo donated 7.5 cents for every pack of continue until April 2008 to affect us locally. “In the worst case scenario, it will mean that
viewers will not see their favourite series’ episodes consecutively. At this stage the only major
casualty is 24 Season 7 where the US broadcast date has been postponed indefinitely from a
January 2008 start, possibly skipping the 2008
season and premiering only in January 2009,”
says Du Plessis.
Oracle Airtime’s director of Sales, Chris
Hitchings is quick to reassure advertisers that
options are being looked at in the worst case
scenario. “Naturally, the first prize for us is an
uninterrupted schedule, however, where series
may be interrupted or episodes shifted, we would
have to be sensitive to advertisers’ needs and provide
Bokomo Weet-Bix sold between April and flexible options; that is, either offer suitable
September 2007, to a total of R1 million. alternatives or allow advertising to shift timing
Plus, consumers who bought Weet-Bix stood along with the relevant programming.”
in line to win cars, Sony Playstations and
Bokomo hampers. “The strength of the
brand coupled with the clever selection of
media largely contributed to the success of
the promotion. A good mix, since entries
through SMS and IVR averaged 104 000 per
month, and over 600 000 over the
six-month campaign period,” says Louw.
The campaign was supported on pack as
well as with in-store marketing; TV, radio
and print media campaigns also raised
awareness. “Integrated campaigns are
essential when promoting to broad
consumer bases, such as Weet-Bix’s,” says
Louw. He adds that the contact details and
data collected in the campaign might be
used for future interactive promotions. The
strong link with Childline will continue through
on-pack promotion of the Childline logo and
the opportunity to donate directly to
Childline through an on-pack SMS number.
NEWS

Just add
music
Which music is currently
enjoying its 15 minutes of
fame or would make a brilliant
soundbed for an ad? The list
below includes a wide range
of local and international
music styles and, most impor-
tantly, it highlights which
songs are hip and happening
within different target markets
right now.
The following list is courtesy
of Roy Harman, who manages
South African artists and works
on various music entertainment
productions and events.
For more information on
how to match your brand
with an appropriate song
e-mail royharman@gmail.com
or call 083 407 4928

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

Filter A classic road-trip song with an Rock – independence and happiness

Take a Picture anthemic chorus

The Wiseguys Dance along and sing-along fun song Dance – upbeat, positive and energetic
Ooh La La
James Brown One-year anniversary since his death Funk – loud, crazy and radical
I Feel Good
Jungle Book Animated and loved characters Kids – youth, silliness and lighthearted
Bare Necessities

Sly and the Family Stone It’s lasted the test of time and is still Soul – sexy and soulful
It’s a Family Affair popular at clubs and bars.

Queen Powerful and fast paced Pop – optimistic, frenziness, fun and
Don’t Stop Me Now celebration

Stereophonics Great melodies and choruses Rock – freedom, expression and inde-
A Thousand Trees pendence

Zoot Woman Flow and consistency for creating a Chill dance – comfortable, positive
It’s Automatic relaxed setting and relaxing

Lira Great vibes song with beautiful Soul – playful and proud
Feel Good vocals

UnkleJam A fresh and unique hit Pop – wild and rebellious

What am I Fighting For

10 MarketingMix I Vol 25 No. 11/12 I 2007


Oops – you’re bad
Consumers International (CI) has released the results of the annual
International Bad Product Awards 2007. Criteria for the selection of
‘winners’ included company size, global scale of sales and marketing,
consumer impact and potential actionable change by the
corporation.
And the top prize goes to…
Award: Bad drug promotion
Company: Takeda Pharmaceuticals
Action: Advertising sleeping pills to children
Say what? This is how the story goes: The US sub-
sidiary of Japanese drug firm Takeda Pharmaceuticals aired
a TV ad for its sleeping drug Rozerem. The ad was aired in time for the ‘Back
to School’ season and used images of kids, school buses, classrooms, etc.
The voice-over said: “Rozerem would like to remind you that it’s back to
school season. Ask your doctor today if Rozerem is right for you.”
Importantly, the ad didn’t mention the serious side effects and the precau-
tions for children taking the drug!
The Food and Drugs Agency (FDA) only gave Takeda a slap on the wrist and
took six months to insist the ad be removed.
CI says: “This case demonstrates the lengths to which some drug compa-
nies will go to increase sales of their products, how direct to consumer
advertising can promote irrational drug use, and how weak regulation can
foster irresponsible corporate behaviour. This company is our overall award
winner for irresponsible behaviour in 2007.”
Award: Bad drinks marketing
Company: Coca-Cola
NEWS
Action: Repackaging tap water
Details: The problem is the packaging of tap water
by Coca-Cola which caused consumer outrage. The international bottled
water, Dasani, had to be taken off the market in the UK although it is still
selling in the US and South America. Technically, Coca-Cola did not do any-
thing illegal but its advertising could be construed as misleading.
CI says: ”Sustainable access to essential services, such as water, is a basic
consumer right. By bottling this universal resource to sell back to us,
corporations, such as Coca-Cola, have created a US$100 billion industry at a
time when one billion people in the world lack access to safe drinking
water. Making profits out of increasingly fragile water supplies is unsustain-
able, irresponsible and against the basic rights of consumers everywhere.”
Award: Bad food
Company: Kellogg’s
Action: Advertising junk food to kids
Kellogg’s has been slapped on the wrists for spending billions on advertising
cereal that is considered unhealthy for kids – especially those under 12. The
issue is not only how it markets – giving away spectacular prizes, for exam-
ple – but what it markets – in particular some cereals with a high sugar
content. Complaints also abound regarding the slowness to change its mar-
keting and communications.
CI says: ”We are committed to stopping the marketing of junk food to children.
Together with our members, we are campaigning for international restrictions on
marketing to under 16s, to give our children the chance of a healthy start.”
For the full information on the Bad Product Awards 2007,
visit www.consumersinternational.org.
by richard duncan EXPERT OPINION
The battle of the mobiles
“
The real unknown is
which brands will be left
at the end of the data
convergence rush and
that is why we have
witnessed a veritable
bloodbath of competitive
activity in the past
decade and why the
next 10 years promise to
”
be no less blood thirsty
12 MarketingMix I Vol 25 No. 11/12 I 2007
Across the globe there is a huge war in
progress on a scale that few have ever wit-
nessed before.
This war has been brewing for some time
and has seen the breaking out of numerous fire
fights and skirmishes across the world as the
mobile telecommunication giants flex their mus-
cles and fiercely contest their positions, each
vying to secure their seat at the telecoms table.
However, what we have seen to date is no
match for what is still to come, and the battles
won today will directly impact on the shape of
the market in the future.
As consumers, we have seen the clouds of
war looming overhead for some time and
watched the giants in cellular technology butt
heads. We have witnessed the handset and air-
time wars, the proliferation of capped plans, the
emergence of 3G, and the widespread accept-
ance and adoption of SMS as the new way of
communicating – changing the way we stay in
touch and in a few short years radically altering
the way we write.
For the average mobile user, there is little
appreciation of the scale of this war and what is
really at stake. It’s not about winning customer
contracts today but securing the rights and
leadership of tomorrow’s mobile data market,
which promises far greater revenue streams
than the telecommunication players are
already enjoying.
We should have an inkling of what is at stake
based on the significant investments being made
in advertising and sponsorship alone. They may
each have their own unique brand positioning
and approach, but they are all united in seem-
ingly having money to burn. An hour hardly
seem to go by without these brands proudly
pounding us with their brand message, presence
and profile across television, print, radio, cinema,
outdoor and online. In South Africa, there seem
to be few major sporting or cultural events that
haven’t been adopted or swamped by the trio of
Vodacom, MTN and Cell C.
The battle has extended deep within our
living rooms as each player leverages its own
brand assets, be they the strong corporate
identity colours of green and blue, dominating
yellow or powerful red; the charismatic characters
of Vodacom, tonality of Cell C or youthfulness
of MTN.
The battle in South Africa is emulated else-
where in the world; in England with Orange,
Vodafone and O2, and in Australia with Optus,
Vodafone and Telstra. Interesting to note that
Down Under, Optus carries a distinctive yellow
corporate identity, much like MTN, and an
acclaimed association to talking animals (which
has striking similarities to M-Net’s brand cam-
paign in 1995/6), whereas Telstra, as the national
fixed-line carrier, sports a blue corporate identity
that closely resembles that of Telkom.
For now, mobile users tend to be limited in
their use of their handset for making calls and
sending SMSes as the various data usages are
costly, unfamiliar and are a poor second to the
ease of fixed-line Internet. But, when the main
players put their minds to it, they will change the
category, evolving customer habits and expecta-
tions and when this finally comes right, mobile
users will become even more dependent on their
mobile phones. This is not something that can
be forced though, as highlighted by the CEO of
Optus, Paul O’Sullivan, late last year: “Customers
are technology agnostic. If you try to force tech-
nology down their throats, you will fail.”
With the convergence of mobile telephony,
television and the Internet, the battle of tomor-
row is to own the high ground of data transfer.
The brands that own this territory will command
healthy control of the future as consumers
increasingly rely on their mobile phones to
access data while on the move, make better use
of their down time while commuting and turn
to their handsets to make purchases. Imagine
being able to buy something in a shop using
your phone without having to pull out your
wallet, sign a credit card slip, remember a PIN
or figure out where to put the change. Well,
imagine no further.
“The best way to predict the future is to
invent it.” – Alan Kay
So whatever the brand, the future is very
promising. The real unknown is which brands
will be left at the end of the data convergence
rush and that is why we have witnessed a veri-
table bloodbath of competitive activity in the
past decade and why the next 10 years promise
to be no less blood thirsty. As the saying goes:
‘to the victor the spoils’. 
Richard Duncan
Sydney, Australia
+61 41 154 9791
lduncan@bigpond.net.au

Effective marketing in Africa
Africa waves at us from beyond our
borders, bearing great potential for brands and
business. Marketing Mix shares some key
learnings and insights from the brand experts
that have ventured forth.
Standard Bank has found traction in several
countries across the continent through, in many
cases, joint ventures with existing banks.
Marketing director: Africa, David Wingfield,
reports some of the key challenges.
 Lack of credible research (with the concept of
research being underdeveloped in many
countries). “Once you have identified what
you are trying to achieve, decide whether
research or tracking is really necessary,” says
Wingfield. He suggests that wherever
possible, companies should use desk research
(this is viable for building profiles of markets,
competitor analyses, country risk analyses and
so on). Blogs and websites may also shed
some light.
 Lack of media audience data and spend
numbers. Available data lacks consistency,
with media owners each giving you a differ-
ent view. “Research only what you don’t
know, and go with the known entity – people
will tell you what you want to hear,” says
Wingfield.
 Complexity of markets locally, regionally and
continentally makes it difficult to approach
the market as one mass. (“What you can do
with R100 in one market is very different
from what you can do with it in another
market,” says Wingfield).
Complexity of the research task
The Western mindset that many adopt when
approaching this market has no relevance to this
market or researching it.
These are unsophisticated markets, so it is
not viable to look for the highest common
denominator.
 Infrastructures are underdeveloped
 Timing
 Multiple language barriers
 Political hotspots or conflict areas (where
business runs the risk of affecting incoming
global aid, for example).
Media consumption
In terms of media consumption, Sharon
“
Success will be
achieved through a strategy
that recognises the
strengths of the individual
country and embraces its
”
differences.
Penhallrick, managing director of Telmar SPC
Media Systems and Consulting, has found that
while there are some similarities to the South
African environment, there are some key differ-
ences to be taken into account. “Carnivals, high
school sampling campaigns and activations
must be used together with traditional media,”
she says, emphasising a holistic approach.
TV is still a new and aspirational medium in
many countries, especially beyond the urban
centres. The phenomenon of community view-
ing is relevant. “They have had problems in the
past with PBS broadcasting; now they are enjoy-
ing deregulation, privatisation and the establish-
ment of new networks as well as improved pro-
gramming,” says Penhallrick. “We need to be
more creative with TV through sponsorships,
infomercials and product placements, etc.”
There is a lot of room for edutainment as fillers
between programmes. Local programming
especially is viable for product placements.
Radio is powerful both in rural and urban
areas. Regarded as the ‘personal friend and con-
fidant’, this medium has the highest penetration
and is the most cost efficient. Penhallrick sug-
Vol 25 No. 11/12 I 2007 I MarketingMix 13
AFRICA by fulvia becatti
gests the creative and interactive use of DJs, for
example, in campaigns.
Newspapers have high reach in literate urban
markets, but the prevalence of print media
varies incredibly (fly-by nights are a problem).
Relative to electronic media, print costs are high
and the quality of colour reproduction may vary
from one market to the next. Circulation figures
are not always accurate. Community newspa-
pers are a viable option (in Kenya, community
papers have 54 readers per copy).
“Outdoor media has disproportionately high
ad spend, but it is the ideal partner for radio in
the rural areas,” says Penhallrick.
Cinema is growing and is becoming especially
popular with the youth; however, piracy is a
major issue. “Keep in mind that in some coun-
tries, the men will go to movies in the evening,
but the women will stay at home and cook,”
says Penhallrick.
The Internet is making inroads, but the per-
centage of Africans that have Internet access
remains low. Cellphones, meanwhile, are
increasing at a phenomenal rate. “People use
more than one cellphone, on different net-
works, so they can get full coverage,” says
Penhallrick.
In the cellphone domain, MTN has succeeded
in rebranding across Africa. Group marketing
director Santie Botha had the following insights
to share. MTN learned that because each coun-
try is unique applying one (or even two or three)
brand slogans to the brand wouldn’t work.
Instead, it allowed each country to depict the
MTN brand in a way that would work for it.
Several countries are experiencing war of
some sort, so the environment holds unique
challenges, while in some states, traditional
religion and culture must be considered.
In most countries, word-of-mouth marketing
was found to be powerful. MTN also found that
in the emerging markets, soccer and music are
aspirational and very engaging; MTN has since
sponsored soccer matches and also got behind
the FIFA 2010 World Cup, for example. “Don’t
think you know better. Don’t impose the brand
and the product rules without proper research,
and don’t think you can do it alone,” she says to
summarise. “Success will be achieved through a
strategy that recognises the strengths of the indi-
vidual country and embraces its differences.” 
by fulvia becatti BRAND ANATOMY
Smirnoff vodka
The 2007 Power 100 drinks brands list
(compiled by consultancy Intangible Business)
sees Smirnoff vodka in the number one posi-
tion. It is also the spirit of choice for agent 007,
whose vodka martinis have become a trend all
of their own.
This year, Smirnoff launched the ultimate
global venture, the Smirnoff Experience, which
forms part of the Smirnoff Signature campaign.
Ten candidates were selected from around the
globe to represent each of the vodka’s major
markets, with one mission: to spend a year trav-
elling to the biggest events in every country
around the world, and document the Smirnoff
lifestyle at its best. Their journey traces that of
Vladimir Smirnoff , the son of the brand’s cre-
ator, almost a century ago. The Signature adver-
tising campaign is also based on this concept
and reinforces the brand’s rich heritage.
The Smirnoff Global 10 are based in an
14 MarketingMix I Vol 25 No. 11/12 I 2007
The history of vodka:
There are conflicting theories about the origins of vodka, with some believing it originated in
Russia, and others, in Poland. The spirit is said to have been brewed for the first time around
the ninth century, and some believe that it was initially used for medicinal purposes. According
to the Vodka Museum in Russia, the spirit was originally produced from grains (abundant in
Eastern European regions). Visit www.vodka museum.ru/english for more information.
upmarket apartment building in über trendy (featuring the Signature ad campaign), and sup-
London for a year; as young brand ambassadors, port in clubs and pubs. The Smirnoff Experience
they are doing for the Smirnoff brand what no got many hopefuls queuing at the audition venues
amount of advertising could ever achieve on its (á la M-Net’s Idols) with the dream of becoming
own – creating huge hype, aspiration, and one of the Smirnoff Global 10. Akona Ndugane, a
credibly. The campaign is generating substantial 22-year-old who hails from the Eastern Cape, is
media coverage globally, says Siyabonga SA’s Smirnoff Global 10 representative.
Mpanza, Smirnoff vodka marketing manager. The European, Japanese and US auditions
Plus, the website (www.smirnoff.com) will carry were based on digital entries (videos and web-
the videos documenting the venture, making the sites). According to Mpanza, the challenge
Smirnoff experience accessible to millions. locally was the relative lack of digital penetra-
The campaign strategy involves clever PR, tion. “Our core consumers both have, and do
strategic radio, cinema and TV campaigns not have, Internet access, so our strategy had to

be adapted to reach a wider audience,” he says.
Radio served this campaign best, as it allowed
for quick updates to venues and dates of audi-
tions. SMS, MMS and e-mail added a further
dynamic to the campaign, and allowed Smirnoff
to talk directly to its biggest fans.
“The communication was integrated and well
thought through,” says Mpanza. The word of
mouth and viral aspects that were the result of
the campaign have made the Smirnoff brand
more alluring. “This experience has allowed us
to get together with the guys who really love
the Smirnoff brand,” says Mpanza. “People trust
ads less and less. This venture gives us the
opportunity to meet with them authentically
and create fun experiences that they will go out
and share with their friends. This is the best
form of brand advocacy,” he says.
This Smirnoff experience earns the brand the
added kick of being the first drinks brand to
engage in this type of multiple-platform global
journey to retrace the steps of one of the central
characters in the history of the brand. Well
renowned for its originality, Smirnoff was also
the first to extend its brand through the Ready
to Drinks or RTDs, with Smirnoff Ice.
South Africa is one of the top five markets for
the brand, out of more than 130 markets in the
world.” In fact, we are the only major market to
still sell Smirnoff 1818,” says Mpanza. “In the
context of a massive global company, this is a
great position to be in; it affords us a lot of
latitude as a market, in terms of marketing
initiatives. “We must be doing something right,”
adds Mpanza. “When we talk, the centre
listens”. Achieving global alignment and local
relevance is a fine balancing act, but one which
finds a powerful tool in searching for or
spinning ideas from other markets.
Vol 25 No. 11/12 I 2007 I MarketingMix 15
BRAND ANATOMY
The history of the
Smirnoff brand:
In 1864, Pierre Smirnov began distilling vodka
in Moscow – with a distinct focus on quality.
Smirnov’s focus paid off – the brand was
awarded the title of supplier to the Russian
Imperial Court. The brand was awarded the
coat of arms four times, which speaks not
only of the quality of the vodka, but also the
public’s appreciation of it. In 1910, Pierre’s
son, Vladimir Smirnov took over the business
but his succession was short lived. During the
October Revolution, the communist govern-
ment confiscated the distillery (having pro-
hibited private business) and the Smirnov
family fled. Vladimir went into hiding, and
over the next few years, managed to escape
capture five times. Eventually rescued by the
White Army, Smirnov travelled via Poland to
Paris, where he established a new distillery.
In 1933, bankruptcy forced Smirnov to sell
the production rights and the brand to
Rudolph Kunett, a Russian who had emigrat-
ed to the US. The brand did not fare well in
the US (primarily a whisky and beer market),
and Kunett was forced to sell the licence to
John Martin, then president of Heublein, who
marketed the vodka as a white whisky (pio-
neering the versatility of the white spirit).
Cocktails were born and took the US by
storm. By the mid 1940s, Hollywood had
developed a penchant for vodka cocktails (as
seen in the first Bond movies). This cocktail
explosion carried the brand to the global
success it enjoys today.
A few months ago, Smirnoff Black was
launched locally and has created a buzz.
Positioned as the jewel in the Smirnoff crown,
this variant is targeted at a niche market of dis-
cerning vodka connoisseurs. “We produce it in
small batches, made with the finest ingredients,
and distil it four times. It has certainly earned
the premium it commands,” says Mpanza.
Smirnoff may enjoy its top spot, but this is
not a position without threat. Other premium
vodka brands are vying for top position. “There
are lots of new premiums entering the market,
but this is what grows the market. The more
players there are in the category, the more noise
we make. There needs to be a critical mass of
players in a category, to make it top-of-mind,”
says Mpanza. “The greater we all become at our
game, the better for all”. 
by helen mcintee EXPERT OPINION
What to do when products fail?
Not so long ago I was called on to provide
an expert marketing opinion on the subject of
’product recall’. Last week I was contacted
and asked to comment, from a marketing
perspective, on the way in which the
’grounding‘ of aeroplanes by a certain airline
was handled and communicated to the public.
In both instances, it appears that, in my
considered opinion, the issues of these
’product failures‘ were handled very poorly
indeed. This was further endorsed by
subsequent research that I conducted both
into relevant theory as well as previous
examples and case studies.
We all know that in business and indeed in
marketing, ’there is no such thing as zero
defect.’ And we are fully aware that things can
and do go wrong – products or services can
and do fail, but perhaps what we are not so
aware of is that it is how the company
’recovers’ from the failure that influences
whether the customer will remain a customer.
In fact, we should all familiarise ourselves with
the facts – effective marketers do have a
number of options to consider when something
goes wrong, all of which have at least one
common denominator, namely ’communication‘.
This is the critical component as companies
have to deal with both the potential loss of
sales as well as the loss of consumer confidence
in the brand. As marketers, we understand that
every purchase will, to some extent or another,
involve a certain amount of risk to the customer,
such as will it do the job, will it fill the need, etc.
Because of this, we must support our sales
strategy and its implementation with communi-
cation plans that are designed to reduce this risk
as much as possible and thus increase
customers’ feelings of comfort. This is particularly
important in the services marketing industry,
where intangible products are very difficult to
assess from a quality point of view.
In instances where there are apparent
defects or problems that result in a product
recall, these feelings of risk are hugely amplified
and the need for communication is therefore
dramatically increased.
In my experience and with my subsequent
research into this matter, I can find no examples
of products not being reintroduced into the
market following their recall and subsequent
damage control, except perhaps the Concorde,
where issues of safety could not be guaranteed
16 MarketingMix I Vol 25 No. 11/12 I 2007
and thus it was decided to remove the plane
from operation. This, of course, raises the issue
with regard to the local grounded aeroplanes.
How much damage has been done to the
brand, will people ever feel safe flying in those
planes again? In fact, many companies have cal-
culated their ’window of risk‘ and once they
have gone beyond that limit, it is often not
worth the investment of trying to re-establish
the brand.
A bank, for example, has only a certain
number of hours that it can afford to be off
line. After that time, it realises that it has lost so
much in terms of revenue and credibility that to
reopen is simply not an option!
In most circumstances, however, it is likely
that the company will reintroduce the product
into the market once the problem has been
rectified. In fact, a common line of thought is
that a crisis (of which product recall is certainly
a major one) should be regarded as an
opportunity and not a threat and, as such, a
contingency plan should be in place in the event
of a crisis.
This is supported by the fact that by contacting
dissatisfied customers to offer an apology,
explanation and possible compensation,
provides the company with yet another
opportunity of an interactive encounter, another
’moment of truth’, which can help to establish
or re-establish a relationship that has been
damaged. It also helps to identify more clearly
the profile of customers for which the need for
the product exists, especially in mass-marketed
consumer products.
It stands to reason that just because the
product was defective, it does not mean that
the need for the product and its core benefit
disappears. Doing nothing to correct the
problem and return the product to the shelves
shows a huge lack of commitment to the
customer on behalf of the company in filling
that recognised need.
Customers (and remember even as
marketers we are all customers ourselves)
recognise that problems may and do occur.
They know that if dealt with effectively they
will remain loyal to the brand and, in fact,
depending on the ’services recovery levels’,
they may even increase their loyalty and
feelings of comfort, knowing that the company
has the interests of its customers at heart.
Failure to acknowledge and communicate the
problem, its extent and how it has been dealt
with may position the company in a negative,
indifferent light and show a lack of interest.
Take the Tylenol case, for example, when the
product was tampered with and injected with
cyanide. It was found that after the recall and
relaunch, more consumers purchased the
product because of the new ’safety‘ packaging.
The company communicated that it had
tightened up on all areas of the production and
distribution process, thus making customers feel
’comfortable‘again.
In summary, if a well-designed communica-
tions plan is implemented during and after the
crisis or product recall, consumer loyalty and
brand image can be maintained. The 2003 Pick
‘n Pay ’poisoner‘ scare was handled so effectively
that its share price remained constant and
consumers still supported the supermarket
chain. The company’s fast action and upfront
communication led to its recovery. Pick ‘n Pay
CEO, Sean Summers, was commended on his
visibility, availability and working with the media
during the crisis. 
Helen McIntee
director, IMM graduate School of
Marketing
(011) 628 2038
helen@imm.co.za

Pepe Marais, rock
(wanting-to-be-a-star)
Aids activist / sports fanatic / dog
lover / family man oh, and executive
creative director at Joe Public
08/10/07
5am, and I wake up to my screaming alarm. Kill it. Five minutes later it
screams again so I spill out of bed and splash on my gym clothes.
Hit the gym and then hit work at 7.30am. Breakfast, admin, orders.
9am – meetings and more meetings followed by lunch on the run and
studio hoo-hah. I get a phone call from our TV producer – WE’VE GOT
JUST JINGER FOR OUR AIDS GIG! We can finally start doing the posters.
Confirm the date – 28 November (okay, so I’m shamelessly doing a bit
of PR, but it’s for a good cause). Finish work at 5.30pm and rush to Wits
for my Zulu lesson. 8pm, finished my tuition, ngiyabonga, and hit the
squash court.
09/10/07
5am. That damn alarm again! I get up with my eyes still closed – VUKA!
Enjoy a game of squash with my wife. Breakfast, admin, reviews and then
a 10.30am meeting at Naledi High School. This is the first time that I’m
going into Soweto without a guide and it is totally liberating.
The place has a vibe. I return to Sandton for an interview, a few key meet-
ings, a creative rationale and then squash. I’m playing in my club’s cham-
pionships and am desperate to do better than last year.
10/10/07
I really struggle to get out of bed so I hit the gym later than usual and
then run behind on admin. Run into orders at 9am. We are busy as hell
with about 20 new jobs in the system! Run through all the work and
finish in time for my second interview at 11am with a school in
Alexandra. WOW! It’s an eye-opener of note. I literally travel 2km from
our plush new office in Sandton to be confronted by a poverty-stricken
township! I cannot believe what happens right on the doorstep of South
Africa’s wealthiest business hub. Mental note to take our entire company
for a little reality check.
11/10/07
I wake up positive. Yesterday’s visit to Alex really gave me perspective.
Off to gym for my second weekly squash game with my wife. Breakfast,
admin and 8am meeting. My list for the week has somehow grown to 91
jobs. I run through the studio to sign off a few jobs, doing everything at
super-speed. Time to prepare for noon meeting with my creative directors
– and I brief our PR agency. At 4pm I fit in another quick game of squash
and then head off to Velocity. On the way I get a phone call – WE WON
ANOTHER AD OF THE MONTH!
7 DAY [B]ITCH
12/10/07
Alarm goes off at 5.15am. Hey, hey, it’s Friday! The usual gym workout,
and then a breakfast meeting with a potential sponsor for our Aids
concert. Yebo Gogo, we have a great brand behind our project. What a
way to start my day. Head back to the office – today we’re shooting three
TV ads! At 4pm, another highlight of my week – our new CI review. It’s
looking awesome! Crisis management keeps me busy until 7pm, after
which I hit the office watering hole to enjoy a few cold beers. Home at
8.30pm; on the couch with my gorgeous wife, our two dogs and the cat,
easing into what promises to be a relaxing weekend. Go Bokke!
13/10/07
Bliss. No alarm until 9am. Squash, followed by brunch with my wife and
then off to the Vaal River for a picnic with our dogs. Spend the day doing
absolutely nothing, except running after dogs running after rabbits. Back
home, some friends pop over for a braai. The only difference between my
braai and the Voortrekker Monument is that my braai is bigger. Watch
England and France in the RWC semi final – hit the sack at 1am.
14/10/07
We have breakfast in the garden. I fire up my computer at 11am and
start planning my week. Write all my emails for Monday morning,
organise my schedule, prepare for my creative presentation, write a
Rock4Aids corporate proposal and manage to do my Zulu homework for
Monday’s class. I finish in time for my Sunday squash game. We get back
home and watch the Rugga! Yes! Go Bokke – all the way to the RWC
Final. We hit the sack with a smile at 11.39pm. I’m ready for another
big week. 
Vol 25 No. 11/12 I 2007 I MarketingMix 17
by fulvia becatti DIRECT MARKETING

Speaking directly

Direct to Home is one arrow in the direct
marketer’s quiver, and one that is improving
thanks to new technologies and improved serv-
community newspapers, there has been limited
success [for companies trying to get beyond the
booms],” says Melvin Chagonda, CEO,
Primedia@Home. “However, most marketers are
looking at alternative points to access these resi-

“
dents. The main points are shopping centres
SA has one of the highest rates of cellphone and meeting areas close to the suburbs as well
as intersections close by.”
penetration, with one cellphone per adult consumer. Perhaps marketers can achieve more through
As costs to the Internet via your cellphone start to come the use and integration of new technology and
media, for example, geodemographics, geospa-
down, online cellphone marketing will present a broad

”
range of opportunities.
ice delivery across the board. Suburbs protected
by booms still present a challenge for many dis-
tributors and direct marketing companies, but
they are finding ways around this. “Besides
tial mapping or variable data printing. These
technologies allow for a more targeted and per-
sonalised approach and therefore less wastage
of ad budgets and greater response rates.
“Direct marketing is growing as customers are
demanding better returns on their investment.
Hard-pressed marketers are wanting a medium
offering more precision. There is a lot of innova-
tion in campaigns nowadays,” says Chagonda.

18 MarketingMix I Vol 25 No. 11/12 I 2007

 DIRECT MARKETING

Variable Data Printing (VDP)

The days of vague direct mailers are over, thanks to this technology
which allows customer-specific info to be merged with creative doc-
uments. The result is highly personalised communications, which
lead to higher response rates and a better relationship between the
brand and its target consumers. Jacquie Golding, executive chairper-
son, Creda Communications, refers to one of Buick’s campaigns in
the US. Through VDP mailers, the company targeted 516 715
prospects; it sold 19 575 vehicles amounting to revenues of US$494
million. The advertising/marketing cost to sales ratio was less than
1.2 per cent (which was less than the industry average of 2.7 per
cent). Golding adds that the Digital Printing Council and the
Rochester Institute of Technology have proven that personalisation
delivers response rates of between 17 and 35 per cent.
Graphics and words as well as photographs can be personalised.
Car dealerships, for example, can send their customers letters and
pamphlets and include photographs and details of the dealers who
attended to each customer. “The technology is not the constraint;
the database is the most critical issue. For VDP one-on-one market-
ing to be effective, the database must be 100 per cent accurate.
This is a huge problem for the majority of companies, as the base
information is often not up to date,” says Golding.
Research conducted by InterQuest estimates that VDP will
continue to double each year, and that in 2007 it will have
increased by 30 per cent. However, in SA, the picture looks a
little different. “Local marketers are still in the mindset of mass
marketing, as the cost per item is less than that of a personalised
marketing campaign,” says Golding.

Geodemographics:
With geodemographics, marketers can identify customers not only
according to basic demographics, but also according to where they
live and therefore where they shop. It’s goodbye to the shotgun
marketing approach, says Lorraine Deane, communications manag-
er, MapIT. “Most marketers, if not all, profile their clients, be it by
age, race, gender, household income, etc; incorporating this demo-
graphic information into a spatial tool makes logical sense,” says
Deane. With a geodemographic approach, marketers can carry out
very specific and direct analysis in an area (regionally or nationally),
and then determine exactly where to market their products; results
can be mapped in great detail. “The results offered by geospatial
tools are right down to street level,” says Deane.
The cost of a full GIS that combines data sets with spatial info
may be prohibitive for the smaller companies; however, there are
also solutions for them. “Most marketers are already using this
although the level of usage is still low per marketer. The slow down
in the economy is going to put pressure on the marketers to ensure
more precision in their campaigns,” says Chagonda.
Precision aside, marketers could also aim for the online environ-
ment (which is free of the constraints of booms and printing costs),
and look to e-mail and search engine marketing for new solutions.
Integrated into a direct mail campaign, these new marketing tools
offer huge potential. “Integration is a matter of pulling through a
campaign on various media and portraying a consistent brand mes-
sage,” says Dirk Tolken, MD, Peronii Solutions. It may be a while yet
before marketers use these new technologies extensively. “It takes
time for new industries to mature, also for the fly-by-nights to be
DIRECT MARKETING

weeded out, and we’re noticing that it’s finally negative brand association continuously,”
been happening over the past few years,” says Gullan.
says Tolken.
Previously, he found that the bright minds Search Engine Marketing (SEM)
who pioneered new media developments were Search engine marketing is showing promise.
not always great marketers, but things have “SEM is the fastest growing form of online
changed. The marketing industry is taking marketing in the world. This trend is also
notice of new media in a big way. As to the rapidly gaining popularity in SA, as marketers
question of costs, it seems that online market- start to understand the benefits that SEM,
ing really does present an affordable option such as Google Ad Words, offers,” says
(compared with traditional media). Tolken Gullan. He has found that globally, banner
believes that as more and more companies ads generate a 0.25 per cent
enter the online space, so competition will click-through rate. “The current trend is to
drive cost inflation. “Expert advice also comes make use of more targeted banner ads where
at a price, as with any industry,’ he says. On more demographics and user info are
the plus side, doubts about measurability are available, such as on Facebook, which
being dissolved. “Online marketing tools are generates a click-through rate closer to five
entirely measurable in real time. The problem per cent,” says Gullan. While globally, 60 per
is that those measures aren’t always put in cent of online marketing spend is allocated to
place or communicated to clients in executive SEM programmes, in SA, it is allocated to
(understandable) reports,“ says Tolken. banners ads.
SEM includes pay-per-click marketing; “this
E-mail marketing: consumer to respond through the same medium, can be extremely effective and it yields short-
E-mail marketing may not be new, but it is this saves them having to phone or fax, for term results, where search engine optimisation
gaining favour with marketers and brands. example. “Responses via e-mail take one hour to is more of a long-term approach,” says Tolken.
“Local marketers trust new media, and there is a two days with maximum exposure on day one. These ads are served up contextually (when the
definite shift from direct mail to e-mail market- A direct mail campaign would take a minimum consumer runs a search for ‘shoes’ on Google,
ing, as it’s measurable, targeted and significantly of seven to 12 days to generate any responses,” ads related to this search topic will appear in
more cost-effective,” says Michael Gullan, MD, says Gullan. Results are measurable (click- the search results). You only pay when someone
Guerrilla Marketing. Through this medium, mar- through rates, conversion rates, etc) and one can clicks on your ad, and you bid against competi-
keters will find it easier to target a market that is track how a person arrived at the client’s website. tors for the price you pay per click. “It’s not that
predominantly male, LSM 8-10 and 35-60 years However, recent research by E-mailStatCentre.com, easy though. The price you bid is not the only
of age. But the trend locally is to combine online has found that marketers are relying too heavily factor that determines your position. It’s also
and e-mail marketing with more traditional mar- on click through rates and deliverability to gauge about the quality of your ads and landing
keting media such as TV, radio, outdoor and the success of an e-mail campaign; the focus pages, and various other factors,” says Tolken.
print, he says. He has found that e-mail market- should be on the metrics that tie directly to SEM can include paid-for inclusion into
ing costs up to 78 per cent less than a run of financial returns. search results pages. In this case, advertisers pay
5 000 paper-based direct mail ads. “Interactive With the legal issues surrounding junk mail the search engine every time a consumer clicks
campaigns using graphics, videos, music quizzes and spam, permission-based databases are the on the ad. “Compared to overseas, we have
or games gain a consumer’s attention immedi- way to go. “As marketers, we need to assess the been a lot slower in our acceptance of this
ately,” he says. E-mail marketing allows the pros and cons of spam and the resulting medium. This is disappointing, considering how
quickly we accepted cellphones, for example. It
is only a matter of time before the newer media
gets uptake,” says Chagonda.
Looking ahead, we can expect to see more
The lines are blurring integrated campaigns and exciting use of new
According to marketingcharts.com, the DMA USA has found that the lines between direct media and technology. Chagonda believes that
marketing and brand marketing have blurred and, thanks to the versatility and measurability cellphones will become the next big advertising
of direct marketing, more marketers are integrating direct marketing tactics into their brand medium locally, given the high penetration
marketing. A report published by the DMA USA found that 56 per cent of respondents use rates as well as their ability to personalise the
one or more direct marketing channels in conjunction with their brand-awareness advertis- advertising message. Gullan agrees: “SA has one
ing. The report also found that a fairly large proportion of respondents are using trackable of the highest rates of cellphone penetration,
offers, list building, calls-to-action, targeting, user-response analyses, search engine market- with one cellphone per adult consumer. As costs
ing and optimisation, and so on. On average, 64 per cent of marketing dollars are allocated to the Internet via your cellphone start to come
to direct marketing and only 36 per cent to traditional mass marketing. Personalisation is down, online cellphone marketing will present a
also ranking higher on the list of priorities and having a positive effect on brands. broad range of opportunities.” 

20 MarketingMix I Vol 25 No. 11/12 I 2007


Traditional versus alternative
– which crew do you support?
Yes, I know all about ‘the good sales pitch’,
but where does b**&#!t stop and confusion
start? What is actually going on in media
circles? The battle between the ‘traditionalists’
and the ‘alternatives’ is as rigorous (but not
nearly as entertaining) as the Red Bull Box Cart
one! The brand manager is being bombarded
with informative articles confirming a decline in
‘traditional media’ – while many agencies
continue (huffily) to proclaim that this is all
rubbish and there is, in fact, an increase in
above-the-line... long live the DPS!
The parade of ‘alternative media’ boffins
gets progressively longer and more vociferous ...
prancing along behind a ‘ring maestro
incognito’. What is one supposed to deduce
from numerous ‘business development
managers’, each one declaring their ‘alternative’
has been proven to be the ‘fastest growing’ or
‘most impactful’? And each one has impressive
statistics to back up these claims. There are two
sides to every story (three sides, actually – your
side, my side and the truth) but one does
not know which way to turn as the trad/alt
debate rages.
In recent months I have made a concerted
effort to absorb the media opportunities in
which I find myself immersed in the course of
an average (boring) week. Sitting on the lavvy in
a five-star hotel I gaze at the A4 creative
masterpiece lurking just out of focus on the
back of the cubicle door... ‘affordable’
pregnancy test kits became a non-starter for me
a while ago, but I nevertheless contemplate the
number of petrified teens who visit luxury hotel
cloakrooms and rush immediately to the nearest
pharmacy for ‘pe(e)ce of mind’. But later I flip
through a women’s magazine and wonder just
how many readers stop to read the detailed
copy for lotions and potions guaranteed to
bestow the kiss of eternal youth or remove
heinous imperfections.
Then there was a table talker for a luxury day
spa... as I tried to read the copy among the
empty bottles, the overflowing ashtray and dis-
carded toothpicks, I realised what a wonderfully
pristine space this would be in which to show
my brand off to its best advantage – especially
later during the evening. Not nearly as effective
as shoving a commercial into the middle of a TV
EXPERT OPINION by michele venter-davies
truly enjoyed engaging with the medium. Yes, I
guess I did... but how long before the novelty
wears off? How many jingles would people
download... or do they collect them? But then I
thought of that ‘clever’ billboard that became
more and more irritating as the year wore on...
people eventually took a different route to work
to avoid its cheesy one-liner.
The long wait at Oliver Tambo International
was hardly enhanced by the repetitive slogan for
‘whichever’ car hire brand was emblazoned on
the belts shaping passengers into a maze of
sheep ready for the dip. But neither did that
radio spot using the MD’s daughter add much
to my morning drive (irritating little madam).
The misunderstood term ‘guerrilla marketing’
is overused at the best of times. Viral marketing
has become the bad rash of many cell users and
over-zealous brand ambassadors can kill the
conversation. Evangelical marketing is just that.
Buzz drags teens into underground hives.
Ambush creates consumer anxiety.
Mobile is so in-your-face that the plastic surgery
industry is likely to benefit.
“
But ... CONSUMERS LOVE IT. We love brands
that enter our worlds and know how we spend
Viral marketing has our time. Housewives don’t sit and watch the
soaps religiously every evening... they go out to
become the bad rash of bars and restaurants and make friends with
many cell users and table talkers before they pop into the ladies for
a quick bonding session with ‘the back of the
over-zealous brand door’. Women feel noticed when mobile pays
ambassadors can kill them attention or when Bluetooth delivers
”
an unsolicited gift. Men enjoy flirting with
the conversation. ambassadors and beaming vital info to
networks of colleagues.
Who has time to sit and watch one channel?
Who has nothing to communicate or discuss
during the drive to work? Who really notices
anything in the clutter of the urban landscape?
Confused I may be. Sceptical at the sales
pitch I am. But... I am backing ‘alternative’ –
with the odd magnificently produced cinema ad
rugby game watched by inebriated and irate thrown in. 
rugby fans that spend much of their viewing
time engaged in passionate arguments about Michele Venter-Davies
the score in the 1962 match. Faculty head: Marketing and
As I pointed my ‘Bluetooth’ (I of the blue Advertising, AAA School
rinse!) at an off-con poster to download an (011) 781 2772
MP3 of a beer commercial jingle, I wondered if I michelev@aaaschool.co.za
Vol 25 No. 11/12 I 2007 I MarketingMix 21
by fulvia becatti ASSEGAI AWARDS
The 2007 Assegai Awards recognised excellence in direct marketing. Marketing Mix takes a closer
look at some of the gold prize winners across the various sections and categories.
Section 1: Media
Category: Direct Mail
Gold: Lesoba Difference
Campaign title: Liberty Life Architects
Client: Liberty Life Architects Campaign
Campaign brief and objectives: The Liberty Life Professionals
campaigns comprise an existing selection of life products, repackaged to
appeal to specific professional market segments. In this case, architects.
Expected a conversion rate of two to three per cent.
Challenges: Numerous products are available from many life assurance
competitors, offering generic targeting of the professional market.
Target audience: Architects, nationally, who are not Liberty Life
customers. Upmarket, LSM 10, high-income earners, elitist, fairly
opinionated and predominantly white. The agency identified a
commercially viable database, 2 500 customers, on which an outbound
campaign was conducted to screen and scrub data; 250 prospects
were identified.
Marketing strategy/tactics and rationale: Campaign offered
professionals protection against unforeseen events that might impact their
businesses. To communicate this offer, the agency designed a mailer pack
that would appeal to this market. The pack carried the message that the
offering is (like them) original, definitive, imaginative, unique and
22 MarketingMix I Vol 25 No. 11/12 I 2007
individual; it would offer them archetypal financial protection specifically
designed for them. The creative concept appealed to their area of
expertise, and also stroked their ego: ‘Imagine a world without
people like you (comparing them to famous architects such as Frank
Lloyd Wright). The campaign sent the message that if something had
happened to these visionaries, we would have missed out on seminal
design; make sure it doesn’t happen to you, by ensuring you are protected
with Liberty Life.
The door opener was a stylish moleskin notebook, with a bellyband and
the call to action was a book plate. The mailer included a series of
collectible postcards featuring the works of famous architects and listed
product benefits on the reverse. Also, ads were included featuring the
marketing message. Sales aids outlined the benefits of the product. The
Leave Behind was the affirmation and a reminder of the long-term
benefits of the product.
Campaign costs: R248 501.50
ROI and results: The campaign generated many inbound calls and
compliments from architects. From a mailing of 2 500, a 10 per cent
conversion was achieved. With an annual average premium of
R1 872, this campaign yielded R7.02 million (a premium return of R35.39
for every R1 spent).
ASSEGAI AWARDS
Category: Alternative Media
Gold: Tequila JHB
Campaign title: Drunk Driving Can Be Fun
Client: Toot-n-Scoot
Campaign brief and objectives: To raise awareness of Toot-n-
Scoot and its services as well as prompt trials of the service. Individuals
who have over-indulged can call Toot-n-Scoot and a driver will be
dispatched on a collapsible motorbike. The driver will place his bike in the
boot of the customer’s car and will then drive the customer home (where
the driver unfolds his bike and heads off to the next call).
Challenges: Awareness levels for Toot-n-Scoot were low, and the client
had a limited budget. Anti drunk-driving media messages were not
making enough impact, thanks to various barriers. Message fatigue,
means that consumers are not responding to the ‘shock tactic’ TV ads
anymore. Also, catching a taxi home and leaving one’s car at a pub or
club is considered costly, and car theft is a problem.
Target audience: Older South Africans are set in their ways (have
watched their fathers drinking and driving, and are therefore difficult to
convince). Younger drivers are a more suitable target audience, as they
have not grown up in a drink-driving culture. The agency therefore targeted
males and females under 30, to create a new ‘drinking-and-driving’ cul-
ture in South Africa.
Marketing strategy/tactics and rationale: To break through
the traditional Arrive Alive/don’t drink and drive messages, the agency
decided to poke fun at irresponsible behaviour and explore how drinking
affects one’s judgement, specifically over the festive season when people
are drinking and partying more. It created a festive season creative
ambush (if it’s surprising and unexpected, the target won’t zone out the
message), and sent a group of ‘ugly’ people into pubs and clubs. This in
itself proved challenging, says creative director, Hagan de Villiers. “It
proved difficult to hire ugly people, but they were an absolute must for
the idea to work… Most casting agents laughed nervously or stared
blankly when we asked them for their ugliest people. We rephrased that
Category: Mass Media
Gold: Action Ambro’s
Campaign title: Rand Show TV commercial
Client: The Rand Show
Campaign brief and objectives: Reposition the Rand Show as a
family event with something for everyone. Generate feet through the gate
(ticket sales). Increase spending in terms of shopping.
Challenges: The Rand Show has been running for 117 years, but over the
years has been clouded by controversy and a poor image (marketed as many
expos rolled into one). It was perceived as a boring fleamarket/trade show.
“The major challenge was to come up with a concept that is broad enough
to cover both the Rand Show and the events that occur within it,” says Philip
Southern, creative director, Action Ambro’s. “The challenge from there was
making a commercial that would have broad based appeal while not becom-
ing something that only appeals to the lowest common denominator”.
24 MarketingMix I Vol 25 No. 11/12 I 2007
to ‘most interesting looking’, which didn’t work either. ‘Unusual’? No
chance. Our resolve was then to get regular people and ugly them up
with the help of a make-up artist”. Each of the candidates wore a T- shirt
carrying a message such as: “When I start looking like a supermodel to
you, it’s time to call Toot-n-Scoot”. These people were made the medium.
Posters of these characters were placed on toilet doors; cigarettes lit
from the wrong end were placed in ashtrays with the message: ‘When
you start doing this, call us”. The parking lots were tagged with huge
‘walk the line’ pavement art; the artwork featured a jagged white line,
and the message: ‘if you can walk this line, call this number’.
Campaign costs: Below R50 000.
ROI and results: After the first execution evening, the story hit the
radio stations and national newspapers as well as marketing websites.
Continued exposure was achieved through DJ discussions and live call-ins
on the three biggest radio stations (with a combined listenership of 3.1
million). None of which was paid for by the client. “It was surprising. One
can determine an approximate rand amount based on similar media
placement costs but that’s just an indication of what it might have cost,
not what its true value was or what its true reach was. For us, its true
value lay in the fact that an extremely important message was being
spread across our nation by credible third parties. How many lives might
have been saved? We’ll never know, but we do know you can’t put a rand
value on that,” says De Villiers. The campaign and its media exposure
translated into new registrations and Toot-n-Scoot enjoyed an ROI of over
2 000 per cent.
Target audience: Any member of the public, but specifically, families.
Marketing strategy/tactics and rationale: The agency had to
change the strategic approach from a fleamarket position to an event
boasting hundreds of activities and indulging a variety of interests. A TV
campaign was created (in conjunction with press, response marketing,
outdoor and pole advertising), which would address each and every activi-
ty taking place at the Rand Show during its three-week run. The TV com-
mercial would therefore need to carry 18 different messages for the 18
activities that would take place each day (these would need to change on
a daily basis). To achieve this, the agency devised two low-cost commer-
cials that highlighted the five most important events, and then tagged
each one with a 10-second call to action sting, which changed daily. The
brand idea was ‘bring everyone’, and this was communicated by showing
individuals performing actions that don’t make sense without the involve-
ment of a group of people.
Campaign costs: R250 000 to R499 999.
ROI and results: The TV ads proved very popular and received an
Orchid Award in the first week of flighting. “Research also indicated that
TV was the main reason that people attended, in comparison with other
ad mediums),” says Southern. Attendance increased by 50 per cent, bring-
ing in 600 000 visitors (up from around 350 000) through the gate,
despite fewer concerts (which are major drawcards). Children’s ticket sales
increased by almost 60 000.
ASSEGAI AWARDS
Category: Multiple Media/Integrated Marketing
Gold: Wunderman SA
Campaign title: SMS Ya Seiva
Client: MTN
Campaign brief and objectives: To increase SMS usage by five per
cent among the target audience; to educate them about how to enjoy the
benefits and savings that can be achieved by using SMS (quick, convenient
and more cost-effective than a cellphone call). To establish top-of-mind
awareness of MTN’s SMS service.
Challenges: Industry trends showed that the SMS market had potential
value but only if the previously unaddressed sectors of cellphone users
were taught how to make use of SMS. The competitive environment con-
sists of three other cellphone network operators.
Target audience: Low income, poorly educated and in some cases
illiterate South Africans aged 16 to 24 in both rural and urban areas.
Almost all of this target market owns cellphones (mostly second-hand)
and all purchase their airtime in advance (prepaid). There was an excep-
tionally low degree of SMS usage among this market.
Marketing strategy/tactics and rationale: The quick, catchy
slogan of ‘MTN SMS Ya Seiva’ was relevant in all 11 official languages (an
MTN SMS can save you time, money and hassle). This core message was
communicated via an incorporated media campaign that included the
unusual use of industrial theatre at taxi ranks and bus stops, backed up
with a graphically illustrated, entertaining comic book. “This ensured that
we reached our target market with a powerful and consistent message,
and addressed them in a communication style that was relevant and
meaningful to them,” says Matthew Kretzschmar, executive creative direc-
tor, Wunderman SA. These explained how to send an SMS as well as why
it will save the sender time, money and hassle. The comic book also intro-
Category: 3D
Gold: Lesoba Difference
Campaign title: Medshield Aids Day Campaign
Client: Medshield
Campaign brief and objectives: Medshield had undergone a
change in their direction, strategy, business model and target market.
Therefore, objectives included, raising awareness around HIV/Aids;
building the Medshield brand within the corporate sector (particularly
among small and medium-sized enterprises), getting the Medshield brand
into the boardroom of prospects and drive enquiries; and, to drive
engagement with target markets.
Target audience: Target audience were mid-sized and large blue-chip
companies’ decision makers (when it comes to medical aid selection) –
specifically HR directors.
Using a database, the agency moved from a total universe of 232
records, down to 100 records. From this, client anticipated a door
opening opportunity at five corporates i.e. a five% response rate.
Marketing strategy/tactics and rationale: The strategic route
taken was to send an engaging, interest-generating and interactive pack
to selected corporate recipients/prospects. Medshield put up a defined
amount of CSI investment money in increments of R10 000 to give away
to an AIDS charity – and the agency’s job was to find an interesting way
of ‘allocating’ this money while also achieving the marketing objectives.
The agency decided to build the awareness/participation pack around
something memorable and tangible that could be displayed in the
recipient’s office – the idea being that when a travelling Medshield
representative spotted the pack elements displayed in the offices, during a
26 MarketingMix I Vol 25 No. 11/12 I 2007
duced an SMS-speak dictionary, special offers on phones and a competi-
tion. “The comic book (which was distributed to millions of South
Africans) invited a direct response to enter a competition which achieved
significant results,” says Kretzschmar.
Murals of the comic book characters were painted on the walls of build-
ings frequented by the target market. All of this was supported by tradi-
tional ATL elements (TV, radio and prints). The campaign positioning: MTN
is your partner in communications everywhere you go, extends the idea
that MTN’s SMS services can help you to achieve what you want from life.
Campaign costs: Media cost R2 million; production cost R1 million.
ROI and results: The competition received over 100 000 entries (a
response rate above 10 per cent). Over one million people attended the
live industrial theatre events. The promotion resulted in 8 500 handset
sales per week (as opposed to the norm of 2 000, an increase of over 300
per cent). In two months, SMS usage increased by an extraordinary 8.5
per cent to 50.12 per cent among the entire MTN customer base. The
campaign achieved MTN’s second highest monthly SMS activity ever. The
campaign also won a 2007 DMA USA Echo Award as well as the 2007
Lester Wunderman Gold Award for Marketing Innovation.
certain time period around AIDS Day, Medshield could elect to donate
the R10 000 to the AIDS charity chosen by the ‘winning’ company.
Recipients would then feel they were getting something of value, while
also being given the opportunity to help a charity of choice, by simply
putting up, in a prominent place, the stunning photographic canveses.
The positioning strapline developed by the agency for the medical aid was
thus ‘A Tradition of Nurturing’. Each photograph was packaged in a
brown cardboard carrier with strong call-to-action copy on the front that
read: ‘Invest in life… Let Medshield donate R10 000 on your company’s
behalf to the AIDS charity of your choice’. Each recipient received one of
six black and white shots, printed on canvas; each canvas came with an
A5 brochure resembling an art catalogue, tied together with symbolic
red ribbon. The brochure featured a letter, all the photos in the collection
as well as information on Medshield. The brochure was perforated so
that the photographs could also be torn off and used as postcards.
Each photograph was accompanied by a business card sized tag with
the photographer’s name and date of the work – to convey the art
concept further.
Campaign costs: Cost per lead: R3 703.
ROI and results: Of the 100 packs that were sent out, 94 were
delivered successfully. Twenty seven companies responded to the
campaign (which equates to a 28.7 per cent response rate). Sales from the
campaign are not as yet concluded as medical aid is changed annually,
hence leads have been worked during 2007 for swap-over in January
2008. It is anticipated that 40per cent of leads ie 11 conversions will be
secured. Some R270 000 donated to HIV/AIDS causes – determined as
five per cent of the value to be generated from converted business.
ASSEGAI AWARDS
Section 2: New Media
Category: e-Marketing
Gold: Lesoba Difference
Campaign title: Nestle College of Chocology
Client: Nestle. Together Nestle is a special initiative set up by the compa-
ny to ‘get closer’ to its consumers and target markets. It is a club that
encourages dialogue between Nestle and its consumers through special
club communications, newsletters, free samples as well as value-added
benefits, such as event invitations or the sending of a recipe book. This
platform has enabled the company to better understand consumers and
their buying habits.
Campaign brief and objectives: To drive engagement with the
brand and to gather vital research data in respect of buyers of Nestle
chocolates. Secondary objectives included supporting the ethic of open
dialogue that is the basis of Together Nestle; creating awareness and
building the Nestle brand; creating a sense of fun around the brand and
products; establishing the Nestle brand as technologically smart and
gaining the buy-in of a younger audience.
Target audience: Chocolate and sweet consumers between the ages
of 18 and 30, both male and female. An initial base of 1 200 Together
Nestle participants was targeted, the idea being that pass-on would occur
within the common interest community group (although the pass-on is
not governable).
Category: Mobile marketing
Gold: Digital Solutions Group (DSG)
Campaign title: What’s Your Flava?
Client: Nando’s Chickenland
Campaign brief and objectives: To get to know its customers,
and increase frequency and wallet share from customers. To drive
additional feet to store and increase awareness of the nearest store to the
customer as well as insight into customer preferences.
Challenges: This campaign would require a fundamental shift in the
manner in which Nando’s marketing uses its advertising.
Marketing strategy/tactics and rationale: This cellphone SMS
marketing competition would complement a five-week ATL marketing and
advertising campaign.
The agency included a 34141 short code premium-rated, action-driven
SMS number in the ATL advertising, with the focus on customers sending
an SMS containing their favourite Nando’s restaurant and chicken ‘flava’.
Customers received immediate responses (winners received a virtual SMS
voucher instantly). Plus, customers had the chance to win a trip for two to
lunch at Nando’s in London, Sydney, India or Dubai valued at R60 000.
The instant winner SMS voucher redemption mechanism required that
the Virtual Call Centre receive and process customer SMSes instantly,
matching the restaurants against its existing restaurants database and then
sending a return SMS (including vouchers, of which there were 25 000).
Specific voucher numbers were issued to specific restaurants, and once a
voucher had been redeemed, it had to be removed from circulation
nationally to prevent repeats.
The challenges for DSG and the Virtual Call Centre were exaggerated by
the fact that Nando’s restaurants make use of three different types of
28 MarketingMix I Vol 25 No. 11/12 I 2007
Marketing strategy/tactics and rationale The most cost
effective way to achieve the objectives was to communicate electronically
through an appealing viral campaign that recipients would want to pass
on. This would serve as a means to educate recipients on the different
Nestle brands of chocolate. An opportunity to win a prize (Carrol Boyes
cutlery), once recipients had provided certain information that Nestle was
looking for, would also be included as a call to action and response
booster. The viral game was based around the idea of chocolate and
one’s habits in terms of consuming it. The agency knew from research
that the way in which chocolate is consumed indicates personality; based
on this, it created a ‘chocolate horoscope’. Also, in the registration section,
it asked for their actual date of birth and, using Linda Goodman’s star
signs, the agency linked each profile with one which is close to the
personality of the engager. Within the game, participants had to complete
certain fields to gain entry to the next level (great for data building). Plus,
participants who referred friends gained an additional entry for each
referral. Weekly winner e-mails and referred friends e-mails were sent
throughout the campaign.
Campaign costs: R35 000
ROI and results: The campaign built a peer database of 13 470
(an increase in base size of 89 per cent). Pass-ons from some participants
exceeded 200 referrals. The cost of acquiring this data via traditional
interviews of the initial 1 200 base would have been around R114 000.
The campaign therefore enabled a saving of 325 per cent for the client.
point-of -sale systems (integration had to cater for three different
interfaces, namely Linux, Java based and Microsoft based).
However, results could be viewed in real time. The web-based MIS
system provided Nando’s marketing with intelligence on media placement
and success in the various regions. The reporting also covered how many
SMSes were received and processed nationally.
Campaign costs: R2 premium-rated service.
ROI and results: Nando’s processed over 100 000 SMSes, and
therefore generated in excess of R1 million (a new revenue stream never
captured before by Nando’s in all its ATL campaigns). The campaign also
boosted restaurant turnover due to additional purchases that have been
valued at an average basket size of R60. The issuing and redemption of
25 000 quarter-chicken vouchers with an average basket size of R60
generated approximately R1.5 million in five weeks.
ASSEGAI AWARDS
Section 3: Strategic & integrated marketing
Category: CRM/loyalty
Gold: PrimaPlus
Campaign title: Shell G-Force Programme
Client: Shell Lubricants
Campaign brief and objectives: To build strong personal and
business relationships between the various role-players in the Shell
Lubricant distribution chain. To drive Shell Lubricant distribution and sales
volume in both independent workshops (IWSs) and independent spares
shops (ISSs) that buy in bulk from specific Shell Lubricant distributors. A
prolonged approach was needed to create long-term loyalty. Need to offer
a compelling reason for bulk distributors and end-users to choose Shell
over other lubricants.
Challenges: In the lubricants sector, Shell has a number of competitors.
Target audience: Channel operators who buy in bulk and distribute
the product as well as frontline staff (mechanics, forecourt attendants, etc).
Marketing strategy/tactics and rationale: The agency created
the Shell G-Force programme, a rewards and points-based programme
with an accumulative nature. Points are earned on specific Shell Lubricants
purchased from Shell resellers and distributors. Once enough points are
earned, these can be redeemed for rewards listed in a catalogue. Makro
provided the rewards and the G-Force Makro Reward Card. Keith Lindsay,
says that new business director, Prima Plus adds that the partnership with
Makro was a major innovation, seeing as it was the first time that they
had launched a third paty, co-branded, re-loadable card in their stores.
The theme for the programme was ‘G-Force weather’. Teaser e-mails
bearing the message: ‘Storm warning – high G-force expected’ was sent
to all delegates attending the programme’s launch event. These were
followed up with theme-appropriate gifts (branded hard hats and torches,
Category: ERM
Gold: Wunderman SA
Campaign title: FNB Project Protocol
Client: FNB
Campaign brief and objectives: First National Bank’s Commercial
Division staff needed to know basic protocols, which included general
business etiquette (how to answer the phone, how to handle a business
lunch, etc). Previously, this was communicated to staff by means of a
two-day seminar, facilitated by a lecturer. These seminars were poorly
attended, and so FNB approached the agency with a brief to make the
Protocol Training more interesting.
The objective was to get at least 50 per cent of the staff to complete all
the training (an improvement on previous attendance of 30 per cent).
Challenges: The programme needed to appeal to a broad range of
people and work in all areas of the country. The programme needed to
stand out, because staff members are constantly bombarded with com-
munication about the bank’s many products and programmes.
Target audience: FNB Commercial staff members; approximately
2 000 people, based across the country. Staff ranged from senior man-
agers to entry-level staff.
Marketing strategy/tactics and rationale: Staff were engaged
via the intranet, through a ninja-themed campaign. The information to be
presented was broken into manageable point-form sections, each of
30 MarketingMix I Vol 25 No. 11/12 I 2007
etc) as well as brochures which explained the salient aspects of the
programme. Distributors were then asked to recruit the owners of the
stores they service onto the programme (with an incentive of 2 500 points
to accelerate the process). The recruitment data was captured to a data-
base and an acknowledgment SMS was sent to each recruit; they also
received personalised packs (welcome letter, catalogue, etc). From then on,
they were required to send in copies of Shell Lubricants invoices to earn
points. Quarterly and monthly communications were sent to members
and key metrics reports were sent to Shell head office on a monthly basis.
Value-added events allowed for interaction between customers and
distributors. A call centre was established to deal with queries. According
to Price, the call centre is an in-house info hub, which is run by a team at
Shell. “By far, the majority of calls received are programme related and
these are directed to PrimaPlus, where the members’ data is housed.
Point queries, addresses changes and other communication is therefore
immediately dealt with in real time,” says Lindsay.
Campaign costs: R1 million plus.
ROI and results: At the time of entry, 495 ISSs and ISWs had been
recruited (against a target of 600 for the campaign). Of these, 83 busi-
nesses are new stockists of Shell Lubricants. An amount of R191 189 has
been earned in G-Force points, of which R25 352 has been claimed and
redeemed for rewards.
which was followed with a multiple-choice quiz; staff needed to complete
the quiz with a score of 70 per cent or more to continue. Once the quiz
was completed, staff were rewarded with a fun and interactive game (fea-
turing a ninja chicken). Fun prizes (both individual and regional), including
helicopter flips, hot air balloon rides, and chauffeur driven limo rides,
incentivised the interactions.
Staff were driven to the intranet by a number of marketing devices:
posters, live actors as well as e-mails and desk drops.
The database was updated regularly, indicating which staff members
still needed to participate in the training; this allowed the agency to target
these staff members directly with follow-up e-mails, and encourage their
participation. The main campaign line was: ‘Beat your boss’. Follow up
executions featured lines like: Thrash Tracy from Tshwane.
Campaign costs: Production cost of R200 000.
ROI and results: The training programme was attended by 59 per
cent of staff, whose reactions were positive. The client now has a database
of staff members who have completed the training and can continue to
encourage other staff members to participate. “The campaign changed
the way FNB approach training in that it was an unexpected and different
way of tackling what can be seen as a very boring subject. The energy and
intrigue of the Ninjas was infectious and resulted in many more people
completing the training than in previous years,” says Kristen Pote, senior
copywriter, Wunderman SA.
 ASSEGAI AWARDS

Section 4: Technology Solutions

Category: Database
Gold: 5th Dimension Marketing
Campaign title: Tim and Tom
Client: 5th Dimension Marketing
Campaign brief and objectives: To develop and provide an easy-
to-use analytical tool that would deliver significant segmentation potential
for the direct marketer.
Challenges: Recency-Frequency-Money (RFM) as an analytical tool was
developed over 50 years ago, but analytical skills are required to build
such models (which we refer to as TIM – time-interactions-money). 5th
Dimension Marketing needed to create an easy-to-use software program
that would enable anyone to run TIM models.
Target audience: Marketers using a database (to date, the target
audience has been the agency’s own client base).
Marketing strategy/tactics and rationale: To address the
objectives and challenges, the agency developed tracking of movement
(TOM), which would reveal trends in the TIM data. With the TIM module,
client data is loaded into the program, and the user can input various RFM
options and view different output scenarios (viewed as RFM segments).
Once the user is happy with the results, the total database is sorted into
27 RFM segments. Customers in the model are now available for cam-
paign selections.
The TOM module (part of the same program) allows for further segmen-
tation to identify customers that are increasing or decreasing in value,
exhibiting inconsistent behaviour, etc. All of this can be sorted and analysed
by segment. Results are available immediately, at the click of a button. This
module enables marketers to move away from ‘one-size-fits-all’ communi-
cations. Plus, the selected customer data can be immediately exported to a
CSV file for mail merge or other campaign purposes. “This software sits on
top of the client’s data. The user of the software can then play with differ-
ent variables across the three parameters (recency, frequency and money)
to create 27 different segments. Each segment then has a logical set of
actions that flow from the segmentation,” says Keith Wiser, managing
director, 5th Dimension. He adds that this is ideal for companies that have
regular interactions with clients, but stresses that it requires good transac-
tional data to work with. “It’s particularly useful for finding what we call
‘shooting stars’, that is customers who suddenly show signs of high activi-
ty; or what we call ‘black holes’, which show the converse behaviour.
ROI and results: TIM and TOM have been used to create campaigns
in the casino environment, where customer behaviour is known to be
extremely volatile. It has also been used to improve targeting for a
fundraising client; in part, it contributed to a 76 per cent increase in
response rates and a 33 per cent increase in average donation value. For
another client, it has been used to identify prospects for a new product
from the existing database.

Vol 25 No. 11/12 I 2007 I MarketingMix 31

ASSEGAI AWARDS

Section 5: Creativity

Category: Art Direction

Gold: BrandNew Advertising
Campaign title: Where Does Poo Come From?
Client: BrandNew Advertising
Campaign brief and objectives: Self-promotion of specialist agency.
It wanted its target audience to call it to secure a meeting with them.
Challenges: Marketing directors, managing directors and marketing
managers are bombarded with requests for business from advertising
agencies, media owners and other suppliers on an ongoing basis. Previous
experience taught the agency that cold calling was not going to work (voice
mail and hardened personal assistants made it impossible to sell the service).
Target audience: Marketing directors, managing directors and
marketing managers of blue chip and multinationals based in South
Africa. Fifty large companies were targeted.
Marketing strategy/tactics and rationale: The solution to the
problems was to develop a direct mail piece that could be hand delivered
to the corporate head office of the targeted companies. The piece needed
to provide insight into the services offered by the agency without revealing
too much. It set a goal of 20 calls, resulting in 15 meetings, leading to at
least two invitations to pitch on creative briefs.
The creative included a funny story, which challenged the reader to tell
their target audience a different story (or at least, with the help of the
agency, to tell their existing story in a different way). The mailer was made
up of a personalised envelope and letterhead, and a modern storybook.
The envelope asked: ‘Where Does Poo Come From?’, to intrigue the recipi-
ent. The storybook answers the question with an unexpected twist, and
the letter ties it all together and concludes with a strong call to action.
“The art direction and the theme that we used ensured that the pack
stood out above the clutter in what can often be a staid and boring cor-
porate environment,” says Shaun Symm, creative director and managing
member, BrandNew Advertising.
Campaign costs: R17 111 (ex VAT)
ROI and results: Fifty per cent of the recipients called the agency.
“The campaign proved to clients that the service we offer delivers a
return,” says Symm. “Thus far, we have completed work for two of the
companies who contacted us, leading to a 14 per cent increase in billings.
In terms of ROI, for every R1 spent on the campaign, the return was
R49,50.”

Category: Copy
Gold: PrimaPlus
Campaign title: Vuyiswa Goes Home (annual report 2006)
Client: Home From Home
Campaign brief and objectives: Home From Home provides sup-
ported and supervised community-based foster care for orphans, aban-
doned and vulnerable children. The agency wanted to create the first ever
annual report for Home From Home, to serve as feedback to existing
donors, as well as a marketing and awareness tool for potential donors.
The report needed to show how and why Home From Home was
established. Also, to convey the seriousness of the plight of the orphaned
children, by sharing some hard-hitting facts and statistics, while also
detailing the progress the home has made.
Challenges: A limited budget; this was to be the first annual report,
for a newly established organisation.
Target audience: Existing and potential donors. typical of the stories of many of the children being cared for by Home
Marketing strategy/tactics and rationale: The annual report From Home, and therefore provides real insight into what these children
was created in the style of an old-fashioned children’s reader (Vuyiswa’s go through.
story) which most people could identify with (the language was kept clear The size of the annual report lent itself well to being posted, without
and simple). The design was used as the vehicle for carrying harder facts incurring excessive postage costs. With the help of the agency’s print
and figures; these were worked creatively into the design elements with- suppliers, the obstacle of a tight budget was overcome: the agency
out having to deviate too much from the story. The story itself would be managed to produced the 2006 Annual Report for Home For Home at no
cost to them other than distribution costs.
Campaign costs: NA
ROI and results: Home From Home have found the annual report
very useful as a door opener for cold calls, as well as a reporting tool for
existing donors. The report took the pressure off volunteer fundraisers,
who could send this book on to companies and generate greater interest
(ie. higher chance of conversion).

32 MarketingMix I Vol 25 No. 11/12 I 2007


YOUR DIRECT MARKETING PARTNER
The success of Computer Facilities is measured
in terms of our clients’ perception of the
service they receive, not our perception of the
service that we provide.
The success of any direct marketing campaign rests on the
quality of the service bureau charged with handling the
mountains of data to be utilised. This is why Computer
Facilities, a service-orientated bureau and outsourcing
facility, has been in business for 25 years. Computer Facilities
is a direct marketing industry stalwart that is recognised for its
service to clients, advertising agencies and the Direct
Marketing Association.
“Our difference is not based on price; we’re
not the cheapest. Our difference is based on our
impeccable service and the fact that our clients’ needs
come first – this is why clients stay with us for years.”
– Ian Geary, Managing Director, Computer
Facilities.
Computer Facilities has a long history with the direct
marketing industry after it started as a mainframe computer
bureau. The company has changed with the times and today
its business is 95% direct with clients and 5% involvement
with agencies and clients. Amongst their clients are some of
the biggest South African corporates including Absa and
Nedbank and they also host the Direct Marketing Association
database.
Computer Facilities focuses on four main aspects of direct
marketing services: An Outbound Call Centre, data
processing, laser printing and fulfillment through their
integrated offerings detailed below.
One of the latest additions to the services being provided is
Geo-coding – this is the process of assigning geographic
coordinates (e.g. latitude-longitude) to street addresses, as
well as other points and features. With geographic
coordinates, the features can then be mapped and entered
into Geographic Information Systems.
Geo-coding assists clients in exploring their customer
markets, help project sales and analyse market penetration.
A major retailer is using this service to
determine where stores should be located
conveniently close to their customers.
Company Structure
Computer Facilities: Level 1 BEE Compliance.
On 1 March 2006, 49% of Computer Facilities was
sold to its employees. An employee trust was set up for
all staff. To qualify for the trust, an employee has to
work for 12 months and if an employee leaves the
company within three years, they forfeit the non-
transferable units.
Amazing fact: the average length of service at
Computer Facilities, excluding the call centre staff, is in
excess of eight years.
Advertorial
ORGANISATION OF THE YEAR
The Gold Award received at the DMA’s
Assegai Awards on the 5th November 2007.
COMPUTER FACILITIES BUSINESS PROCESSES
Direct Marketing processing facility
Computer Facilities provides the following services:
• Capacity to process millions of records per campaign
• Comprehensive data checking
• Data enhancement and correction
• De-duplication of names and addresses where no ID number present
• Comprehensive data demographics analysis
Valid8 – Developed by Computer Facilities and
certified by Microsoft
This comprehensive package verifies postal codes and suburb/place names
according to the Post Office official tables and Computer Facilities own tables of
the most common misspellings – applies corrections where applicable. It also
caters for address formats in the informal areas and provides comprehensive
demographical statistics.
Laser printing and associated services
Capacity for print runs in excess of one million.
Letter set-ups
Digitising logos and signatures
Sorting data by postal code and any other field e.g. surname
Apply all variable data to Computer Facilities unique print package PrintNet,
which offers full document composition capability, merges variable data with
letter copy and creates images and prints.
Call Centre
Outbound telemarketing
Inbound response management
Over two years ago Computer Facilities extended its services to include a
48 seat out bound call centre. In August 2005, Computer Facilities was awarded
the Nedbank Card Business and a year later increased the number of seats to
112. The Call Centre is currently concentrating on outbound selling. Sales
progress is monitored by clients through an on-line reporting service, reflecting
up to the minute results
Response management facility
Policy Administration – including the issuing of policy documents and the
collection of premiums
Mailed responses
Bulk inbound faxes
Bulk SMS
Hosting Web Services
Bulk e-mailing
Daily statistics through their On-line Reporting Services
CRM – database management and control facility
Custom-built solutions
Complimented by the Response Management Facility
Contact Computer Facilities:
387 Surrey Avenue, Randburg
Tel: (011) 577 2600 • Fax: (011) 577 2662
www.facilities.co.za
Managing Director: Ian Geary: iang@facilities.co.za
Ian Geary thanks his staff for their dedication,
attention to detail, and team work in servicing
our loyal clients.
ASSEGAI AWARDS

Category: Creative Solutions

Gold: PrimaPlus
Campaign title: MWEB Voice Box
Client: MWEB Business
Campaign brief and objectives: Promote Voice over IP (VOIP)
to 1 000 of MWEB Business’ high-usage ADSL customers. MWEB prom-
ised to save them up to 60 per cent on call costs charged by Telkom.
Challenges: Broadband connectivity is still relatively new in SA, and
penetration is also low as a result. VOIP offers an alternative to Telkom’s
services at much lower cost (it uses an ADSL line). But awareness of
VOIP is even lower than for ADSL. The corporate market has not been
addresses by Skype, which offers VOIP. MWEB Business wanted to be
the first to introduce VOIP to businesses using ADSL, as a package that
could save them money. But it knew that its customers were afraid of
and unfamiliar with the technology. The market associated VOIP with
Skype, and thought one needed headphones and devices to talk
through the computer. They were not sure about the quality of VOIP or
how to install it. Other concerns included hidden costs and downtime
of the service.
Target audience: MWEB Business’s 1 000 top ADSL customers
(companies who were using ADSL substantially enough to indicate that
they would benefit from the call cost savings through VOIP).
Marketing strategy/tactics and rationale: MWEB needed to
break through the clutter that busy CEOs and CFOs of medium-sized
companies receive each day, so that they could communicate the bene-
fits of VOIP to them. They needed a 3-D pack that was startling, but
not complicated; it needed to cut through the ‘it’s too complicated,
don’t tell me about it attitude’ of their targets, while showing them the
benefits of the service. MWEB promised to save its targets up to 60 per
cent on call costs charged by Telkom. This programme is still rolling out,
but is staggered; this means that MWEB’s account managers can
schedule appointments, conversions and installations.
The 3-D pack included a phone (to take the focus away from com-
puters) and an incentive of R100 in free calls. A personalised letter that
talked about VOIP and the offer was included in the pack. Because the
letter was sent by the CEO of MWEB, it carried more weight. It also
introduced the account manager and included their contact details.
The front of the box promised potential savings, and once the targets
opened the box, a simple switch automatically started the phone ring-
ing. On answering, a voice explained that they’d just experienced how
easy it is to use VOIP, and directed them to the account manager’s busi-
ness card and the information brochure. This was interactive, exciting
and startling. “The potential ROI is huge. If you consider the average
medium-sized enterprise’s Telkom phone bill, and then think about that
revenue going to MWEB instead and for a sustained period, and then
add on service charges (which are still lower than Telkom’s), it’s an
enormous, brand-new revenue stream,” says Kathryn Price, creative
director, PrimaPlus.
Campaign costs: R200 per pack. “MWEB were was prepared to
put in the money if it got the results – it had confidence in the pack
and saw the cost being recouped quickly,” says Price.
ROI and results: At the time of entry, 60 per cent of all packs had
elicited a confirmed appointment with an account manager. The cost of
the packs was recovered through installation.

34 MarketingMix I Vol 25 No. 11/12 I 2007

Marketing Direct – Best Practices Workshop
21st February 08

Sandton Sun Hotel, Johannesburg

Incorporating the best of the Assegai Awards

Marketing Direct is about best practices delivered by the best direct marketers in South Africa. The workshop will draw from the
Assegai Awards 07, demonstrating the principles of successful direct marketing.

Marketing Direct Programme

Research Stimulating Response
Andrew Ambrogioni, the 2007 Assegai Awards Direct Marketer of the Year, will identify the triggers that boost response. Andrew
will also look at the power of emotion based on astute interpretation of data analytics and qualitative research techniques.

Integrated Marketing
How should marketers select and weight the appropriate components of the marketing mix to boost direct response?
The session will be led by Michelle Perrow, newly inducted into the DMA Hall of Fame and MD of Lesoba Difference, a big winner
of the Assegai Awards.

The Role of Creative in Direct Mail Today

Traditionally, direct marketers have always underestimated the importance of the creative execution. However, in the time-pressed,
design-savvy environment of the ‘noughties’, good creative can be the difference between a direct mail piece being binned,
opened or actioned.
Primaplus’s creative director, Kathryn Price McKay, puts the importance of good copy and design under the spotlight and showcases
the work that won both Gold, and the Inkosi Award at the Assegais 2007.

Mobile Marketing
Rick Joubert, executive head for Vodacom, talks about the impact of mobile marketing including:
 Mobile as an outstanding stand alone direct marketing medium
 Mobile as an integrated response channel.

Adapting to Legislation
The National Credit Act, the Consumer Protection Bill and the Protection of Personal Information Bill have and will affect marketing
practices. Christiane Duval is a director of the Direct Marketing Association and closely involved with the legislation. She will advise
on how to ensure your marketing practices remain customer friendly and within the constraints of the legal requirements.

Direct Marketing Masterclass

Andrew Ambrogioni, the 2007 Assegai Awards Direct Marketer of the Year, will involve you in preparing a direct marketing
campaign drawing from the best practices demonstrated by the Assegai Award winning entries. You will learn some golden rules
and hot tips, which will significantly increase response to your direct marketing campaigns.

Pricing
R2 650 per delegate
R2 250 per delegate for three or more delegates (plus VAT)

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

by nici stathacopoulos EXPERT OPINION
How do we define direct marketing?
In recent months, I have faced many clients
asking for direct marketing, but who have no
lists of their own of who to market to. Before
we embark on any marketing campaign, we
have to understand the objectives of the cam-
paign and what is available to us so that we can
maximise the budget and ensure we achieve the
desired results.
Although many marketers don’t have data-
bases, they are now realising that they need to
have more information, including the answers
to these burning questions:
 How do I find out who my customers actually
are?
 How do I find out more about my
customers?
 How do I ensure my customers return, when
I don’t know who they are?
The client’s brief requests a ‘direct marketing
campaign’ to build the above information, but
they don’t have lists to market to. Agencies then
recommend an indirect approach using ATL
channels, but often our traditional marketers
feel that these are not direct channels. How do
we overcome this argument, and how do we
engage consumers who use our brand and yet
are faceless? When we judge awards, we look
at campaigns in the direct category, and need
to shift our thinking: just because the channel is
not mail or e-mail, doesn’t mean it’s not direct!
We have to start somewhere, be clever in the
use of our channels, test and trial, and see what
delivers the best results. This argument defies
logic in many instances – if I spray the market
with flyers then how do I know it works? The
answer is quite simple: if your creative breaks
through the clutter and has a very strong call to
action, then you will realise results. Once you
capture the information, you can ascertain
whether this worked or not. But we have to
build the list somehow in order to answer the
above questions.
To build these lists, we need to go into the
above-the-line space, which means we have to
develop indirect direct campaigns that have a
very strong call to action. Whether these
‘adverts’ appear in the form of radio, TV or print
they are, in fact, direct marketing in its oldest
form; we have to engage our consumers (even
if they are using our products) in activations –
malls, traffic lights, taxis, streets and online.
As part of the creative, and besides the
strong call to action, often we have to incen-
36 MarketingMix I Vol 25 No. 11/12 I 2007
have our list and start communicating to con-
sumers and then measure their change in
behaviour towards our brands. But I believe that
using traditional channels and offering incen-
tives gives our marketers a fighting chance to
build their bases – we know advertising works,
but by maximising our messages using tradi-
tional direct marketing language, we will at
least know which 50 per cent of our advertising
worked.
The other burning issue we face in direct
marketing is even more interesting for me.
Several clients are happy to spend millions on
television advertising, building their brand, with-
out setting measurable sales objectives; but they
will give their direct marketing agencies a
smidgeon of their budget and set down very
hard and tangible objectives for sales. If we only
engender a three per cent response, then we
have all ’failed‘. But at least we know we got
“
that response and sold product. Plus, with that
three per cent response we can find like-minded
By targeting in an consumers within that base and target them
more specifically.
environment where it Marketing is an art and a science – it is
knew the audience had imperative that we build brands that consumers
want to use. Once we have the consumers,
an affiliation to the that’s when the science of direct marketing
vehicle, it could maximise kicks in – as soon as consumers use your brand,
find out more about them, and target your
its ’indirect direct‘ message messages clearly – relevant, regular and engag-
ing communication will no doubt bring them
and prove sales directly to
”
back, will ensure they tell their friends about
its efforts. your brand and will ultimately ensure they move
up the loyalty ladder.
Our London office recently ran a campaign
for Golf Plus; it investigated who had bought
the vehicle in the past (by closely examining the
owners’ information) and discovered that many
Golf Plus owners had a very strong interest in
gardening. Using this information, it then
embarked on strong campaigns at gardening
shows, displaying the vehicle and activating the
brand by giving out books, cards and informa-
tion. By targeting in an environment where it
knew the audience had an affiliation to the
vehicle, it could maximise its ’indirect direct‘
message and prove sales directly to its efforts. 
Nici Stathacopoulos
tivise – how do we know that consumers aren’t managing partner of proximity#ttp
just responding for the gift or draw for a prize? (011) 447 7093
We don’t. We can only ascertain that after we nici@proximityttp.co.za
 2nd Interactive Marketing Summit
18 March 08
Sandton Sun Hotel, Johannesburg

Digital marketing is hot, innovation is constant and to optimise response it is very important to
appreciate now-now marketing best practices. Our speakers know the South African market,
they are at the leading edge and they work with major corporates all the time, and they’re very
response focused.

Digital Media Perspective

How marketers should evaluate and select the appropriate components of the digital media mix. How digital media
will evolve in 2008. An appraisal of the research data available and most importantly the metrics that really matter.
Andrea Mitchell, head of Digital Activation at thirtyfour, and is a much respected digital marketing strategist.

How BMW Compiled and Executed their Digital Marketing Plan

The objectives, the reasons for selecting and weighting the mix, the creative approach and the results.
Scott Gray, Interactive Marketing Manager, BMW.

Online Media
Elan Lohmann, head of Social Networking/Media Services at 24.Com, will give you best practices advice on how to
optimise your online marketing spend, covering:
 Marketing 2.0
 Online media selection
 Smart ways to boost online response/ Going viral in the digital space
 Social networking/social media/Facebook widgets etc
 How to initiate conversations with your market, build relationships and create trust.

Mobile as a Medium
Why Mobile is not merely sub-set of “digital” media and could be the ultimate interactive medium.
Mobile as a medium has arrived and is no longer just a great idea. Rick Joubert, executive head, Vodacom.

The Case for Integrated Digital Marketing

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

A morning workshop
R1 950 per delegate
Three or more R1 750 per delegate (plus VAT)

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

by nicci columbine EXPERT OPINION
Call centre benefits
As companies increasingly consider the
benefits of call centres to support their customer
service and customer relationship management
(CRM), marketers need to better understand the
role of the contact centre and how it can play a
more integral part in responding to customer
feedback and influencing a positive customer
experience.
As a starting point, marketers need to be
familiar with how call centres fit into the
customer service supply chain. Call centres
provide a number of functions and, depending
on whether they are captive (internal division of
the organisation) or outsource (contracted
provider) and whether they are primarily in-bound
(receiving customer calls) or provide both
inbound and outbound (calls made to cus-
tomers), the first interaction a customer has
with a call centre creates a lasting impression of
the company’s service approach and influences
the perception of its brand.
Therefore it is at this level that the customer
experience needs to be managed. To achieve
this, marketing should develop a close relation-
ship with call centre managers to better
understand the dynamics that influence
performance and service levels at the front line.
Quality and quality assurance are important
factors in maintaining service levels and driving
performance of agents. Call centre managers
rely heavily on their quality assurers to monitor
the quality of interaction agents have with
customers. This is largely undertaken through
listening to call recordings and providing feed-
back through team leaders and supervisors.
Regular reporting, analysis and control are key
to ensuring that the required standards are
consistently achieved.
Marketers should have access to this information
to ascertain both the positive and negative
factors that affect customer satisfaction. With
this information at hand, marketers will be
better equipped to assist call centre managers
to address issues relating to brand awareness
and delivery of brand values, as well as respond
more accurately and timeously to customer
concerns through direct responses.
Marketers, and particularly brand managers,
also need to play a more active role in the
training and soft skills development of agents.
This is currently the most critical development
area within call centres in SA. A historical lack of
exposure, core competency development and
38 MarketingMix I Vol 25 No. 11/12 I 2007
socio-economic integration has generally resulted
in disadvantages among the emerging labour
force. There is a wide gap in work-readiness
skills, which is currently being addressed through
national training initiatives, but more specifically
a shortage of soft skills among agents. There has
to be a strong correlation between customer
engagement and brand resonance. This is some-
thing that is not sufficiently evident in the
customer service delivered by agents.
It is important that marketers, together with
communication specialists, are included in agent
training programmes from the outset. As part
of their induction training process, agents need
to be educated on the significance of quality,
credibility and reputation management to fully
appreciate their role and, to some extent,
responsibilities in delivering on the brand’s
promise to customers. Marketers can provide
practical tool kits to agents to help them under-
stand brand values and drivers, and also guide
experiential learning in educating agents on the
factors that influence brand perception.
However, one of the most evident gaps in call
centre service delivery, and certainly something
that, in my experience, affects brand perception,
is the lack of information about the customer
and the relevance a service or product has to
the person the agent is engaging with over the
phone. While appropriate timing of calls to
customers is an important aspect to manage, it
is not the call that irritates the most, but that
agents are generally not provided with sufficient
information about the customer in relation to
the purpose of their call.
Call centre agents are employed and trained
to handle the vagaries of personalities and
emotions expressed by customers, yet all too
often they are confronted by a frustrated
customer simply because they have inconclusive
or inaccurate information, or worse, have not
been briefed that the customer already has the
product they are promoting! Particularly in
terms of outbound campaigns, customers want
to feel that they are being targeted as individuals
not as a number on a list!
This is something that marketers certainly can
remedy. South African agents are positively
regarded internationally for their unscripted
friendly conversation and engagement ability
and high customer satisfaction desire. Adequate
briefing and access to relevant customer data
and product or service relevance will add much
value to the agent building a rapport with a
customer over the phone. Marketers could
further build on this if they coordinated more
closely with sales and customer service to advise
call centres of customer preferences, feedback,
and even personal details, such as birthdays,
that will make that extra difference to customers
and create a positive impression of the brand.
It is an imperative within the training process
that marketers ensure that agents, team leaders
and supervisors working on a campaign or
account are continuously and consistently pro-
vided with information about the company they
are providing the service for. Agents need to
become brand ambassadors for their clients,
constantly striving to deliver on the brand’s
promise and fulfil or exceed customer expecta-
tions. To achieve this, marketers and brand
managers need to integrate their internal branding
campaigns with call centres to inspire, motivate
and incentivise agents. It is for this reason that
recognition and reward play such an important
part in driving agent performance.
In today’s competitive business environment,
even in emerging markets such as SA, a
company can no longer lay claim to a market
segment and take customer and brand loyalty
as a given. 
Nicci Columbine
managing director,
Columbine Communications
(011) 880 8137
info@columbine.co.za

Measuring ROI online
It is important to remember that the
Internet is an advertising medium and should be
treated as such – not simply as a technology
vehicle with advertising elements to it. As such,
a marketing strategy applicable to the Internet
needs to be devised in a strategic and profes-
sional way.
The effectiveness of Internet advertising can
be measured if you can answer four questions:
 What’s the goal of your website?
 What’s the goal worth?
 How many times did you achieve that goal?
 What did it cost to achieve it?
By using the four questions above as a guide
for measuring ROI in an online environment,
you will not go wrong.
The four questions in more detail:
What’s the goal of your website?
This fundamental question needs to be correctly
answered before any online marketing plan is
even thought of. Is the goal to generate sales or
leads? Is it to get users to view specific content?
Or is it simply to raise awareness?
Once you have answered the first question,
you can start putting together an online market-
ing plan, which should include all the elements
of how you are going to make the answer to
question number one become a reality.
What’s the goal worth?
This is where it starts to get interesting. If you
didn’t answer the first question correctly then
you surely aren’t going to answer this question
accurately. Every business – be it online, offline
or both – has a value assigned to the goal spe-
cific to that business.
For example, an online gaming website that
offers a wide range of games that can be
downloaded or played online. Each game has a
cost associated with it and a selling price.
Obviously, the difference between the selling
and cost price provides the goal value (for the
purposes of this example other costs such as
marketing, distribution, etc that impact on the
goal’s value, are not included).
So if the goal’s value is R100, it has to be
included in the online marketing campaign. If
an online marketing campaign that only uses
pay-per-click (PPC) is being run, then there
EXPERT OPINION by yoav tchelet
would be a cost associated with every click on
the advert. By combining conversion tracking
into the campaign, using a goal value of R100,
I would be able to accurately see what the
ROI is.
To put this more clearly: a campaign is run
over one month using a budget of R30 000. A
total of 7 500 clicks – which equates to R4 per
click – were received. A total of 1 135 games
were sold, which is a conversion rate of roughly
15 per cent. At a goal value of R100 per game
= R113 500/R30 000 = R3.78. In other
words, for every R3.78 spent, there was a
return of R100.
How many times did you achieve
that goal?
As can be seen from the example above, over
time an accurate picture of how online market-
ing programmes are performing can be por-
trayed. This allows changes to be made, where
necessary, without estimating and relying on
website statistics and data. That’s not to say
that statistics and data supplied by organisa-
tions such as Nielsen shouldn’t aid the develop-
ment of an online marketing strategy, but once
you start working in a scientific and controlled
way – the data generated will be infinitely more
powerful and useful.
“
It is important to remember that the Internet is
an advertising medium and should be treated as such
– not simply as a technology vehicle with advertising
”
elements to it.
What did it cost to achieve it?
By following the steps outlined above you will
now have an exact figure for all your online
marketing programmes. This will allow you to
fine-tune any current and future campaigns and
eliminate the guesswork. In SA, online is still
considered a sideline advertising medium. The
funny thing is that it is only with online advertis-
ing that returns can be measured in real-time
and down to the last cent. Which other adver-
tising medium even comes close to that?
Conversion tracking and ROI return methods
can be applied to all online marketing cam- Yoav Tchelet
paigns, be it banners, rich media, PPC and director, iLogic
more. Use that benefit and power to your (011) 832 2800
advantage.  yoav@ilogic.co.za
Vol 25 No. 11/12 I 2007 I MarketingMix 39
by susan moerdyk CRM

This thing called

CRM
Wearing my customer hat, I had to think
long and hard about how my life has been
touched by CRM initiatives. Apart from an
occasional SMS on my birthday from a few
companies with whom I part money at the end
of each month as well as the occasional sale
notification from a retail store that is actually
intended for Mr Shongwe (still have to meet
him), my life is relatively free from meaningful
CRM communication.
So maybe I’m not spending enough money
at the right places, but it did make me think
about how customer information can best and
most efficiently be used to build better relation-
ships with those important customers.

40 MarketingMix I Vol 25 No. 11/12 I 2007


The whole customer relationship manage-
ment or CRM thing created quite a buzz in the
‘90s, with one school of thought leading us to
believe that it would ultimately put us in a posi-
tion to manage our customers on a one-on-one
basis. That didn’t quite come to fruition, as we
all know that keeping relationships alive and
healthy requires going beyond simplistic
approaches and being technologically focused
only. But, despite all this, CRM is indeed still
alive and kicking. Any company disillusioned
enough to neglect CRM initiatives is depriving
itself of an essential engine of knowledge and
profitability. So how do business leaders feel
about CRM?
Markinor and Brand Leadership launched the
State of Marketing survey in 2006 where
400 heads of marketing were interviewed
telephonically. The driving force behind the
survey was to establish the state of marketing in
business in South Africa – thus exploring
challenges with which marketers are faced,
business and marketing priorities, marketing
involvement in different areas of the business,
branding, measurement of various matrices and
stakeholders, and more.
This survey was repeated this year to establish
whether any changes had occurred. Acquiring,
CRM
retaining and managing customers followed
profitability as the second most important
overall business priority, with almost one fifth
(17 per cent) of respondents nominating this as
their overall business priority. In this year’s
survey, we decided to investigate how our
marketers feel about CRM.
Close to one third (30 per cent) of marketers
stated that CRM is the most effective manner or
tool to reach customers or potential customers.
“
Our challenge is not to create messages from the
data we have available, but to identify customers’ needs
and expectations first and then to collect the data
”
required to speak their language effectively.
Once the appropriate technologies are in place,
it really is a very cost-effective way of customis-
ing messages to reach valuable customers.
Advertising lags slightly behind, with just over
two out of 10 respondents believing this to be
the most effective tool. When using CRM infor-
mation effectively, direct marketing and promo-
tions are likely to have a much greater return
than traditional advertising for a fraction of the
Vol 25 No. 11/12 I 2007 I MarketingMix 41
CRM
cost. It is also more measurable than above-the-
line advertising. Getting your satisfied customers
to do your marketing for you is no doubt a great
way of reaching a broader audience. Hence
‘word of mouth’ ranks third in this toolbox.
When looking at who supposedly takes
ownership of CRM in each of the targeted
organisations, it would appear that almost half
(42 per cent) of respondents feel that it is the
responsibility of the marketing team to keep
conversations alive with customers. It is quite
comforting to see that this responsibility is not
seen to reside with the ‘techies’. Almost two
out of 10 respondents believe it is the responsi-
bility of each and every employee to manage
customer relations. The importance of CRM is
reflected in the fact that the responsibility lies
with the CEOs, directors or board members of
seven per cent of the targeted companies. It is
encouraging that three-quarters of those
responsible for marketing and brand strategies
also look after CRM initiatives, since we know
how important it is to have consistent and
integrated customer initiatives and messages.
On goes the mantra that retention is cheaper
than acquisition. This is clearly reflected by the
responses received when asked what the key
objective of CRM is. Relationship building and
42 MarketingMix I Vol 25 No. 11/12 I 2007
customer acquisition rank second and third
respectively. However, it appears that CRM is
fulfilling the most basic of marketing functions
as opposed to really adding value to the cus-
tomer experience. In the increasing drive to be
completely customer centric, CRM is just the
most fabulous opportunity to enhance customer
experience by sending out individualised (or
close to) messages to those stakeholders we
value most. And let’s face it; as companies we
aim to do many things but ultimately we are all
in business to make profit. Why not use CRM to
its full potential?
Hopefully, the 31 per cent of respondents
who stated don’t know/not applicable have
mastered the art and don’t have any frustrations
with their CRM programmes (but it is doubtful).
Companies frequently perceive the customisation
and development of meaningful CRM strategies
from all the customer data available to be
complex, costly and disappointing. We asked
respondents what their key frustrations were
when implementing their CRM programmes.
Although there wasn’t a single issue that
overshadowed the rest, it would appear that
time, as always, is the key obstacle in our fast-
paced lives. This is followed by qualified and
motivated staff – and we all know that getting
all employees on board when embarking on
new journeys is critical, yet challenging. When
all is said and done, it is the employee delivering
a delightful customer experience that makes
customers hungry for more.
On the whole, consumers are increasingly
spoilt for choice, exposed to an abundance of
marketing messages from various channels and
as a result are becoming more and more
demanding. This does enrich the relationship we
have with our customers, but it also makes it
more complex. Too often we search our data-
base for usable information based on statistical
tools, neglecting to improve our ongoing rela-
tionship with our customers. I believe our chal-
lenge is not to create messages from the data
we have available, but to identify customers’
needs and expectations first and then to collect
the data required to speak their language effec-
tively. The integration of this information will
surely lead to a real return on investment, which
will hopefully be tangible and measurable. 
Susan Moerdyk
client relationship manager,
Markinor
(011) 686 8400
susanm@markinor.co.za

Afrikaners:
the other white market
As Klippies celebrates the airing of its latest
TV advert, we chuckle yet again at the quirks
and delights of the stereotypical Afrikaner. The
Afrikaans market is vibrant, enjoys a positive
mindset, and the unique cultural nuances that
set it apart. But as English increasingly becomes
the lingua franca, the question of how this mar-
ket will evolve becomes more complex.
In terms of numbers, the Afrikaans market
has remained stable. As Lucille van Niekerk, edi-
tor of Beeld, points out, according to AMPS fig-
ures, the Afrikaans population figures haven’t
changed since 2001: it constitutes 15 per cent
of the total population. “UNISA BMR predicts
that the Afrikaans market in SA will remain sta-
ble for the next five years,” says Van Niekerk.
Certainly, the growing optimism of this mar-
ket and the culture-embracing attitude of the
youth, have something to do with that. The
only threat to the language is that 43 per cent
of Afrikaans children are receiving their educa-
tion in English, says Gavin Rheeder, marketing
manager, Beeld. “I’ll be very surprised if things
don’t change, but it’s too early to tell – there’s
no trend that really points to what will happen,”
he adds.
According to Radio Sonder Grense (RSG) mar-
keting manager, Louise Jooste, the Afrikaans
market represents a substantial part of the
economy, with approximately 25 per cent of the
purchasing power; most are LSM 7-10.
According to AMPS figures for 2006 and 2007,
58 per cent of white adults in SA are Afrikaans
or bilingual. Ninety-five per cent of coloured
people read and understand Afrikaans, com-
pared with 86 per cent of whites. Afrikaans is
the third most spoken language in SA (after
Zulu and Xhosa). Thirty nine per cent of LSM 8-
10 is Afrikaans speaking.
Speaking to this market in its language, not
surprisingly, achievers get the best results.
Jacaranda FM, for example, found that it
received the highest number of responses from
listeners during its weekend of Afrikaans-
themed programming. It received around 4 000
e-mails during that week compared with an
average of between 400 and 900 e-mails during
AFRIKAANS MEDIA by fulvia becatti
According to FutureFact 2007:
 64 per cent of schools use Afrikaans as their main medium of
instruction (especially in the Limpopo and Mpumalanga
provinces)
 71 per cent of Afrikaans households communicate to their children in Afrikaans
 Over 80 per cent of Afrikaans-speaking people still prefer receiving information in their
own language (be that newspapers, magazines, radio or TV)
 Only 39 per cent of Afrikaners asked, said that English should be the official language,
but 53 per cent said they find themselves speaking more and more English.
other themes. Also not surprising, is that this has more than 6.7 million page views a month.
market is comfortable using new media as it is “We struggled to break the 200 000 barrier,
active online and responds well to email and until we started actively punting the website
SMS campaigns. Simply translating ad copy with advertising. But I still feel that we’re only
from English into Afrikaans might work for scratching the surface,” says Rheeder. The web-
some, but it’s risky. “On rare occasions it works; site is treated as a product on its own, rather
in many instances it doesn’t as a lot of the true than as a sub-medium of the newspaper, and
essence of the message is just lost in translation. this approach seems to be doing the trick. “In
Badly translated ads also stick out like a sore fact, we found that readers have moved from
thumb and convey nothing but disrespect for English news sites to ours. This tells us that they
the Afrikaans speaking consumer,” says Michelle are loyal and prefer being spoken to in their
Van Breda, editor, Sarie. own language,” says Rheeder. He finds that
Generally, audiences and circulations across advertising on the website is increasing (a dedi-
the Afrikaans media remain stable. Daily news- cated sales team has been appointed). Currently,
papers, as a group, are faring well, but as 75 per cent of Beeld.com readers are younger
Rheeder explains, the growth is only coming than 45 years of age – the average is 29 years
from the black publications, such as the Daily of age, while that of the newspaper is between
Sun. The Afrikaans dailies are seeing no major
changes to their advertising mix or readership
figures, but this isn’t necessarily good news.
With the economic environment shrinking the
consumer’s buying power (as well as that of the
advertiser), newspapers will need to get creative
to keep both their readers and advertisers. “We
have not seen a major change in ad spend at
Beeld and I predict that while media owners
need to be smarter with their advertising solu-
tions, the industry will not put on the brakes…
Budgets may be smaller over the next year,
which will see more innovative solutions coming
to the fore; print and online might be offered as
a package deal,” says Van Niekerk.
Beeld’s website, Beeld.com, is drawing 230
000 unique users each month, and is among
the top 20 websites in SA; according to Nielsen
NetRatings figures (October 2007), the website
Vol 25 No. 11/12 I 2007 I MarketingMix 43
AFRIKAANS MEDIA

Afrikaans newspapers: Dailies (AMPS 2007 and ABC, Jul-Sep 2007)

Newspaper Ave Household Ave age Readers per Ave Issue AIR 2007 AIR 2006 AIR 2005 Circulation
Income copy Readership

Beeld R14 308 44 4.7 1.6 1.3 1.3 105 231

Die Volksblad R12 070 46 4.7 0.4 0.4 0.4 28 688
Die Burger R11 331 42 4.9 1.5 1.6 1.8 87 562

Afrikaans newspapers: Weeklies and weekend (AMPS 2007 and ABC, Jul-Sep 2007)
Newspaper Ave Household Ave age Readers AIR 2007 AIR 2006 AIR 2005 Circulation
Income per copy
Naweek Beeld R13 730 42 4.3 1.2 0.9 0.8 85 276
Rapport R11 428 42 5.2 5.3 5 5.1 301 692
Die Burger (Sat) R10 035 40 6 2.1 2 2.1 101 040
Die Volksblad (Sat) R9 106 40 8 0.4 0.4 0.4 24 425
Die Son - - - 0.6 0.4 0.4 66 138
Sondag - - - - - - 43 390

40 and 44. Rheeder believes that over time, the staple news and information source. They
average age of users will increase, in keeping embrace technology and are early adopters.
with general Internet trends. And they want it all – print, online, videos and
According to Van Niekerk, 88 per cent work mobile – they view these as complements, not
full-time and 74 per cent studied after school. supplements,” says Van Niekerk.
“Technology provides our readers with new The Beeld.mobi is a news WAP site, accessed
ways to connect with Beeld and become a part from a cellphone. “Mobizines are subscribed to,
of the news, and alters the way in which news and the user receives content when the content
is consumed and is evolving,” she says. What’s owner sends it out. With Beeld.mobi, you
more, the website has allowed readers to create request or download news when it suits you
a community of shared interests and experi- (push vs pull),” says Rheeder.
ences; the Bride of the Year pages and the Weekend and weekly papers are fairly stable,
matric dance photo pages impact the site traffic showing only slight declines over 2006 circula-
substantially. “Beeld readers have a very loyal tion figures.
connection with the brand and view it as their On the magazine front, niche titles are also
stable, with only a few hiccups around the
The Pendoring Awards Media24 circulation scandal. Van Breda says
“The dream of Pendoring 2007 was that the whole value chain that embraces that Sarie readers were informed of the
Afrikaans – from the advertiser to the advertising agency and, eventually, the con- discrepancies in circulation figures in an honest
sumer – should once again realise the power of Afrikaans,” says Lucille van Niekerk, and upfront manner. “On a more positive note,
Pendoring chair. More than 60 agencies, advertising schools, freelance writers and our November issue turned out to be our thickest
smaller creative agencies entered a record number of over 400 pieces for this year’s ever, and to date our dealings with advertisers
awards. “We believe that in light of the record number of entries received, we have and clients have been positive”. Sarie recently
come one step closer to realising the dream this year,” says Van Niekerk. launched Sarie Kos, the standalone cooking
she found that the radio entries were exceptional this year (2Buffels Advertising companion, in response to reader needs and
with Koloni/Nine November took home the Prestige Award for the campaign they preferences. “We always knew food was one of
developed for Son newspaper). Also noteworthy, according to Van Niekerk, were Sarie’s strongest content pillars. Afrikaans speakers
the Genuine South African and Tuisgebak/Home Grown categories. “Many entries love food and entertaining, and Sarie readers
could boast sharp language usage, while the concept came second. Others again, specifically find Barbara Joubert’s approach to
had brilliant concepts, but were unable to stand on genuine Afrikaans legs,” food to be honest, easy and accessible,” says
says Van Niekerk. Student entries are still a mixed bag, she adds. “Students Van Breda. She adds that Sarie Kos seems to
would be more successful if they were guided to complete their thinking process in have hit the sweet spot; Sarie is intending on
their work.” publishing three or four issues in 2008.
The People’s Choice Award went to Vodacom for the Boesman ad. “With this, Insig magazine closed down, and re-launched
Vodacom once again showed that it not only understands the Afrikaans market, as Boeke Insig in September 2007. According to
but manages to speak to the heart and mind of the South African public as a contacts at New Media Publishing, the Media24
whole – in any language,” says Van Niekerk. head office made the decision to fold Insig

44 MarketingMix I Vol 25 No. 11/12 I 2007

AFRIKAANS MEDIA

Magazines (AMPS 2007 and ABC, Jul-Sep 2007)

Magazine Ave Ave Readers per Average Issue Readership ABC Jul-Sep 2007
HHI age copy 2007 2006 2005
Wiel R16 658 40 5.7 0.3 0.4 0.4 Rebranded 15 454
Landbouweekblad R12 974 43 5.9 0.8 0.9 0.9 42 495 43 177
Loslyf R9 337 36 - 0.3 0.3 0.3 - -
Stywe Lyne R15 033 41 4.6 0.5 0.6 0.6 34 919 33 626
Rooi Rose R11 174 41 6.7 2.3 2.3 2.3 95 769 108 245
Sarie R11 781 41 - 2.4 2.4 2.5 Suspended Suspended
Insig R13 687 45 5 0.3 0.3 0.2 11 713 Discontinued
Huisgenoot R10 543 40 6 6.6 6.8 6.7 343 031 328 939
Vrouekeur R11 571 45 5.1 1.5 1.6 1.6 88 464 83 015
Skottel R17 556 41 - 2.5 1.2 1.8 1 374 746 1 634 502
De Kat R15 505 43 - 0.3 0.3 0.2 - -
Baba & Kleuter R11 327 34 5.7 0.5 0.4 0.4 25 033 24 305
Tuin Paleis R16 847 44 4.2 0.5 0.4 0.3 36 450 30 177
Idees R13 482 43 - 1.4 2 2.1 141 000 116 787
Tuis R15 794 41 - 0.5 0.4 - 79 636 81 187
Visi R16 403 40 - 0.2 0.2 - Discontinued Discontinued
Leef R14 141 43 2.7 - - - Suspended Suspended
Weg R18 960 43 2.1 - - - 113 278 106 988
Mense - - - - - 20 585 15 829
Zoo Weekliks - - - - - - New 30 127
Wegbreek - - - - - - 30 072 25 385
Sondag - - - - - - New member 43 390

because of poor circulation figures, high adver-
tising costs, etc. However, the Boeke (book
reviews section) of Insig was very popular, so the
decision was made to re-launch the title with a
focus on books.
The dual language titles are enjoying stable
circulation figures, and are attracting the right
advertising (and the right readerships) as a
result. While the circulation of Zoo Weekliks is
officially linked to that of sibling Zoo Weekly,
UCM CEO Louis Eksteen estimates the Afrikaans
title has a circulation of between 10 000 and
11 000 copies a week compared with 20 000
copies for the English title. “From the new
AMPS 2007 figures we can see that Zoo’s
Afrikaans or bilingual readership is 36 per cent,
while English or other European readership is
32 per cent,” says Eksteen.
As AMPS and other research stats improve, so
the publishers are seeing growth in ad sales.
However, UCM welcomes any advertising that
matches the high LSM demographics of its read-
ers, rather than distinguishing between English
and Afrikaans environments. “The advertising
market is very sophisticated when it comes to
targeting specific groups and this is true for
Afrikaans speakers as well,” says Eksteen.
The Afrikaans radio stations are not seeing
much change, except for Radiokansel/Radio
Pulpit, which has seen a decrease in its listener-
ship (both in terms of Past 7 Day and Average
Monday to Friday listenership). “If one looks at
the November RAMS, all listeners in all language
groups showed a decrease, but Afrikaans listeners
show a proportional increase since the begin-
ning of 2007,” says Surisa Nel, communications
manager, Radiokansel/ Radio Pulpit. “Since
Radio Pulpit’s contract with Radio 2000 expired

Radio: (AMPS 2007 and SAARF RAMS, Nov 2007)

Station Ave HHI Ave Age Ave Mon- Fri Past 7 Day
Nov ‘06 Nov ‘07 Nov ‘06 Nov ‘07
Jacaranda 94.2 FM R8 598 34 2 483 000 2 877 000 1 297 000 2549 000
OFM 94.97 FM R9 032 37 578 000 524 000 377 000 524 000
Radiokansel/Radio Pulpit R8 755 47 482 000 200 000 242 000 200 000
RSG R9 658 48 1 880 000 1 887 000 1 235 000 1887 000

46 MarketingMix I Vol 25 No.11/12 I 2007

AFRIKAANS MEDIA

Markinor/Sunday Times Top Brands Results 2007

This survey measures brand relationship scores (that is spontaneous awareness of the brand, plus trust and confidence in it as well as
customer commitment).
In the Business-to-Consumer categories, the media scored as follows:
Magazines:
 Huisgenoot ranked fourth, with a score of 6.7 per cent (up from 5.9 per cent in 2006)
 Sarie ranked ninth, with a score of two per cent.
Daily newspapers:
 Die Burger is in eighth place, with a score of 4.1 per cent (up from 3.2 per cent in 2006)
 Beeld sits in 10th, with a score of three per cent.
Weekly newspapers:
 Rapport is in fourth position, with a score of seven per cent (up from five per cent in 2006)
 Die Burger Saterdag has a score of 0.9 per cent, and is in ninth place.
Radio:
 RSG sits in sixth position, with a score of four per cent (up from 2.8 per cent in 2006)
 Radio Jacaranda is now in eighth position, with a score of three per cent (up from tenth position, and a 2 per cent score
in 2006).
Newspapers:
 Beeld has dropped from third position (a score of 5.8 per cent) in 2006, to fifth position, and a score of five per cent this year;
 Rapport’s score has remained stable at four per cent, although it has climbed to sixth position (from seventh in 2006);
 Die Burger now finds itself in eighth position, with a score of three per cent.

Afrikaans igniters:
According to the TNS Research Surveys Wildfire Spectrum and Wildfire Index, Afrikaans speakers are igniters. Compared with the total
population in metro areas, a greater proportion of Afrikaans speakers are igniters. Comparing white Afrikaans speakers to coloured Afrikaans
speakers, the study finds that the former has a higher proportion of igniters. Meanwhile, the latter has a higher proportion of damp squibs
and burnt outs.

last year December, we have only been able to
broadcast on our AM footprint, which reaches
the greater Gauteng. We have been expecting
this drop in our listener figures for some time,”
says Nel. The station is waiting to hear the out-
come of its licence application.
The station’s website, meanwhile, appears to
be doing well, with over one million hits to the
site per month, and 13 210 unique users per
month. “Radio Pulpit is at the forefront of new
technological innovation and has recently
launched Spodtronic, software that enables the
listener to receive radio via a cellphone. We have
had good response from listeners all over the
world,” says Nel.
Meanwhile, RSG is seeing growth in listenership
(especially Past 7 Day). “As the only national
Afrikaans radio station, RSG is committed to
empowering people through programme offer-
ings that inform, educate and entertain people
who speak and understand Afrikaans,” says
Jooste. She says that part of the station’s success
is its focus on the right personalities. “Amore
Bekker, presenter of the drive-time slot, Tjailtyd, is
a good example of this,” says Jooste. She adds
that there seems to be a progressive aspect
around Afrikaans music and the political baggage
of the past is no longer an obstacle.
Jacaranda is also seeing growth in listener-
ship, which it attributes to its audience research
plans, which have enabled it to grow its audi-
ences in Mpumalanga, Limpopo and the North
West. Listener events have also gone a long way
to creating positive relations with listeners.
According to Lulu Ndevu, marketing manager of
Jacaranda, Afrikaans listeners expect their radio
stations to get involved in CSI projects.
“In fact, Jacaranda’s listeners – no matter
what language they speak – are constantly
looking for ways to assist the underprivileged
and needy in their communities,” says Ndevu.
Its Winter Warmer campaign raised over
R3 million worth of new blankets this year,
for example.
Overall, the Afrikaans media landscape looks
vibrant and positive, reflecting the population
that it serves. Marketers can look forward to
more niched or targeted offerings and, in the
meantime, should brush up on their Afrikaans.
“Afrikaans speakers might use and accept English
in the workplace with ease, but Afrikaans will
remain the language of their hearts… We have
more Afrikaans magazines than ever before sim-
ply because this remains they language they are
truly inspired by. I cannot see this changing in
the future,” says Van Breda. 

48 MarketingMix I Vol 25 No. 11/12 I 2007

MARKETING AT-RETAIL

Best of point ofof sale

Dick Blatt, president and CEO of POPAI Therefore, POPAI uses the term ‘Marketing-at- per cent of the purchase decisions are being
Worldwide says marketing is in chaos with a Retail’ (MAR). made
new model yet to be finalised. With respect to Why MAR?  As traditional media audiences fade MAR

point of sale, Blatt states the four Ps are no  MAR is integrated into the marketing plan provides better value for marketing dollars
longer relevant, in their place are the four Rs: from the beginning  The industry throughout the world has

Relevance, Relationship, Responsiveness and
Repetition.
Blatt also points out that POS has many
names – POS, POP, in-store marketing, BTL, Out
of House, etc – and that without consistency, it
is very difficult for the industry to move forward.
 MAR creates an experience for the shopper
where the buying decision is being made
 MAR reinforces the overall marketing cam-
paign where the shopper is looking for brand
information
 MAR reinforces a brand message where 70
embraced the new term Marketing-at-Retail
as a result of these changes.
Blatt says that MAR helps to define the entire
retail store as an advertising medium and when
integrated into the total marketing mix, creates
a shopper experience from the outside and

POPAI SA
POPAI SA may be in the developmental stages,
but reports of its progress are positive.
According to Yatish Mehtah, co-chairman of the
POPAI SA board, the permanent board of direc-
tors will be formalized once full membership
(25 members) has been achieved. “We are also
looking for an executive director, whose job
profile will include: furthering the membership
drive, getting involved in various conferences
and RAD initiatives, as well as discussing issues
of communication between the various global
chapters of POPAI,” he says. Board members so
far include: Sean Leas (Smollan Group), Mike
Bosman (One Digital Media), Terry Murphy
(Systems Publishers), Nnaniki Malesa (Primedia
Instore), Lucien d’Avice (Barrows), and Ray
Abraham (Massmart).
Mehtah and co-chairman Lucien d’Avice will
be traveling to Disseldorf for the Euroshop con-
ference (the largest Point of Purchase show in
the world), where they will attend the POPAI
Global Leadership conference as representatives
of POPAI SA.
For more information, contact Terry Murphy
(011) 234 7008, terrym@systems.co.za.
MARKETING AT-RETAIL
throughout the store. MAR advertising can also
be presented in context with other products or
services to create a retail experience.
To put MAR into context, there are a number
of trends that can be applied.
Consolidation
Many brands are starting to consolidate their
MAR function and responsibility under one
department for the first time. This is a huge
trend and change for the medium. Historically,
no matter what retail department you dealt
with, there was little consistency regarding how
the medium was put into effect or handled.
Sustainability
Sustainability and environmentally sound prac-
tices are a large focus in the industry right now.
Wal-Mart has been talking about sustainability
and when it speaks most companies pay atten-
tion, and with good reason. Being green is an
important trend because it changes the busi-
ness. Where this will go, no one knows yet.
Manufacturing
Manufacturing in China to decrease costs is a
continuing trend. The reality is the past decade
in the corporate world has been one of cost
cutting and China offers a way to do this.
However, it doesn’t mean that all manufactur-
ing will now move to China.
Demand for medium
There is growing demand for the medium as
money moves away from TV advertising. In the
US, the cost of TV advertisements has tripled
and dollars are moving out of the medium.
Whatever the new marketing model ends up
being, MAR should be included in the mix – it’s
where the shopper is touched. If we are going
to see money migrating to MAR, we have to
have metrics in place. The challenge for MAR to
52 MarketingMix I Vol 25 No. 11/12 I 2007
“
Cannibalisation in the US is the purchase of milk –
traditionally bought from a convenience store; milk is
now one of the top-selling products in pharmacies.
keep increasing the dollars in the medium is to
provide metrics.
Fulfilment
Retail and brands are seeking additional spe-
cialised services such as fulfilment. In the US,
many in the supply side have gotten involved in
the control of distribution, execution, etc.
Multinational companies
Multinational retailers continue to cross interna-
tional borders to expand, leading to consolida-
tion. There are four or five companies of any
consequence in terms of size.
Digital signage
Digital signage is receiving a great deal of atten-
tion as a new in-store medium. The application
of technology for MAR is a continuing trend
and an opportunity to sharpen the message at
an individual or individual store level.
Technology is moving fast and there are so
many applications that digital can be applied to.
The good news is that now there are no rules in
PRISM Project
The Nielsen Company, In-Store Marketing
Institute and the PRISM Consortium collabo-
rated on the PRISM Project: Pioneering
Research for an In-Store Metric and some
preliminary results have been released as a
teaser. The trial ends at the end of the year
with the full results available in 2008. An
international pilot in Europe is also expected
next year.
Some of the findings so far include:
 Heavy traffic doesn’t necessarily translate
into sales
 Category transactions alone are not a reli-
able indicator of traffic
 Two thirds of those visiting the salty
snacks aisles make a purchase
 Shoppers put more in their basket when
shopping with kids but don’t necessarily
put in more kiddie treats, although sea-
sonal items are more likely to be pur-
chased.
”
SA. Digital will continue to have an impact if it
is measured.
Channel cannibalisation
After Wal-Mart successfully entered the food
business, supermarkets undertook changes in
how they appealed to shoppers to protect their
channel of retail. A good example of cannibalisa-
tion in the US is the purchase of milk – tradition-
ally bought from a convenience store; milk is now
one of the top-selling products in pharmacies.
Store size
Tesco recently entered the US market with its
convenience size smaller store and most major
retailers are looking at how it’s doing. Tesco
offers a different shopper model – where Wal-
Mart has been successful in mastering inventory
and offering the lowest price to shoppers –
Tesco chose to focus on which products
shoppers are price-sensitive to, and those they
aren’t. For Tesco, it’s highly successful and is
allowing it to move across the globe. This is a
brave new world for the MAR medium. People
are starting to experiment in much larger ways
than ever before.
Various research studies are underway to fix
the issue of measurement and metrics in the
medium. There is research being conducted
through innovations such as the IC Scan in the
US. Shoppers on a main shopping trip were
recruited to wear IC Scan specs during their
store visits. The specs are equipped with a
special micro-colour camera that provides a
view of the shopper as they walk through the
store. Fifty shoppers per store were recruited
and the analyses includes where shoppers go,
what categories they visit, what in-store media
they pass and what in-store media comes into
their vision. “There is so much that needs to be
measured and we need to prioritise what needs
to be measured,” says Blatt. Other research
being carried out includes the hot and cold
zones for traffic patterns, where the store or
product layout is weak and where the MAR is
not being effective. For example, Blatt men-
tioned that there is often no MAR on the way
to the toilet at a convenience store – what a
missed opportunity!
MARKETING AT-RETAIL

The South African shopper

Nielsen recently undertook research into the South African shop-
per and came up with some interesting facts. Do shoppers plan their shopping trip?
 41 per cent usually plan but always buy additional items
Grassroots consumer  30 per cent usually plan but sometimes buy additional items

Shopper stats  10 per cent usually plan and never buy additional items

 low shopping frequency  20 per cent never plan – these are the consumers that are

 2.6 visits per month receptive to new messages and products

 34 packs per household

 13 packs per occasion

Shopping venue
 majority spent in independent grocers or non majors

 26 per cent spent in major retailer in last quarter

Basket composition
 3 per cent spent on private label brands

Established consumer
Shopping stats
 high shopping frequency

 6.5 visits per month

 100 packs per household

 15 packs per occasion

Shopping venue
 majority in major retailers (77 per cent of spend)

 15 per cent in branded convenience outlets

 90 per cent shopped in a major retailer in the last quarter

Basket composition
 8 per cent spent on own brands

Shopping style
 70 per cent of shoppers are rational, efficient and know what
they want to buy
 9 per cent take time to browse all parts of the store

 39 per cent know parts of the store that have the items they want

 32 per cent know what they want and ‘go and get’ it What shoppers look for in their store
 21 per cent go up and down aisles, picking up items when they  Pricing and VFM: 12 per cent
see them  Store accessibility: 12 per cent

 Large storewide selection: 11 per cent

Consumer basket profiles  Efficiency and loyalty: 10 per cent

 LSM 1-3 over one-third of basket is staple starches and  Quality products: 9 per cent

food/LSM 9-10: 5.8 per cent

 LSM 7-8 dry perishables, excluding staples: 15.2 per cent (highest) Drivers behind decision – shopper modes
 LSM 9-10 perishables, including cheese: 18.2 per cent / LSM  Auto-pilot categories: shoppers in grab ’n go mode are particu-

1-3: 11.9 per cent lar about their brands and are habitual purchasers: coffee,
 LSM 9-10 beverages: 19.9 per cent / LSM 1-3 10.5 per cent mayo, cheese, cold-pressed meats
 Buzz-activated categories: shoppers are open to buzz and

In-store activity engaging activities. Categories such as beverages and confec-

Average of 25-30 per cent of volume is sold on promotion. tionary are driven through excitement pre- and in-store
% of volume on promotion year-ended July 2007  Variety-activated categories: shoppers seek new tastes and

 Children: 54 per cent formats. Consumers browse. Packaging is a key communication

 Mayo: 38 per cent tool at POP. Biscuits, yoghurt and ready-to-eat cereal
 Margarine: 36 per cent  Bargain-activated categories: price comparisons and promos

 Coffee: 33 per cent dominate choice rules. Don’t over promote when it is not
 Fabric conditioner: 33 per cent necessary. Direct promo into the right type of promo.
 Tea: 30 per cent Source: The Nielsen Company 2007

54 MarketingMix I Vol 25 No. 11/12 I 2007


Interruption versus enjoyment
Has traditional advertising lost the plot?
Some marketers are forgetting that the way to
win consumers’ minds is to make them happy
rather than irritating them so much they’ll never
forget you.
There’s got to be something wrong with an
advertising model that is premised on interrup-
tion. You’re watching your favourite movie and
are deeply embroiled in the story, the drama
and a pivotal point is about to unfold when…
WHAM! There’s an ad for bog rolls or feminine
hygiene products or the miracle of modern hair
shampoos that promise to give you unbelievably
airbrushed hair. The interruption model is so
dysfunctional that traditional advertisers factor
reach and penetration as part of their strategies,
which means you have to see the same adver-
tisement at least 100 times before it weaves
itself into your psychological subtexts. Don’t
think I’m not a marketer, I am, and I appreciate
that the real battle in extraordinarily competitive
markets is for the hearts and minds of con-
sumers. But just how is that battle going to be
won? By irritating consumers? Repetitive
advertising is premised on enjoyment, that you
love the advert so much that you want to see it
again and again and again and again. But let’s
be frank here, while I appreciate that SA has
a vibrant and highly creative advertising
community that wins global awards, in the face
off between clients and creativity just how much
of that brilliance is converted into audience
enjoyment?
For the most part, we are talking fairly
mediocre advertising that’s repeated ad
nauseam. Quite frankly, that’s not how you’re
going to get me to love your brand. While I
appreciate that traditional advertising has its
place and purpose, what pioneering brands are
beginning to understand is the power of what I
call ‘original purpose’. Why are you in business?
If you’re dealing with customers the only
answer can be that you’re in business to make
your customers happy. The compelling truth of
any brand’s success needs to live or die in its
ability to serve its customers.
Let me give you an example. Starbucks.
Anyone who’s ever been overseas has walked
into a Starbucks because it is an experiential
brand hero. Even if you’ve never been abroad
you’ve at least heard about Howard Schultz and
the gourmet coffee experience. Now Schultz is
not just selling overpriced coffee available in
EXPERT OPINION by craig cesman
every conceivable permutation, with wings.
There’s something else that the man has
understood alongside differentiating and
marketing his brand effectively.
Schultz knows that he’s not selling coffee,
he’s selling ‘indulgence and escape’ in a cup.
This is where it becomes interesting, because
currently in the US there’s a business battle
royal between Dunkin Donuts and Starbucks.
And what makes it really interesting is that
Starbucks isn’t even fighting back. Simply
because people don’t go to Starbucks for the
coffee, they’re buying the experience. And
what this means to Starbucks is now it’s not
only selling coffee but music and movies, and
can extend that to whatever its heart desires
that fits in its brand and business strategies.
Back home, some forward thinking brand
leaders are recreating their leisure and retail
environments into havens of customer
enjoyment. Remember the old days of in-store
interruption when your shopping experience
“
was destroyed by irritating announcements,
humming fridges and whiny loudhailer-like price
specials? Or going to your favourite upmarket
The bottom line is
Italian restaurant and listening to techno? What that if the bottom line is
smart marketers understand is that the right
music and an unparalleled customer experience important to you then you
can influence customer behaviour for the better. want to preserve customer
By delivering the right music backed by
loyalty and keep customers
”
experience and a research-driven methodology
marketers can now create an atmosphere where
happy.
customers want to spend more time in their
establishments and will spend more money.
Smart brands appreciate and understand the
relationship between music, marketing and
experience. This turns an ordinary customer
encounter into a memorable event that
promotes the brand while delivering consumer
delight. Leading leisure and retail marketers
know that shopping, eating in a restaurant or
booking into a hotel is a sensory experience and
that research confirms a direct link between an The bottom line is that if the bottom line is
atmosphere and its financial performance. Like important to you then you want to preserve
the recent study conducted by Leo J. Shapiro customer loyalty and keep customers happy.
and Associates which shows that shoppers Simple really – stop irritating them and create
respond to atmospheric elements both the perfect brand experience that becomes their
consciously and unconsciously. This study gives home away from home. 
evidence of the extent of the connection
between ‘store atmospherics’ and the store’s Craig Cesman
performance, in other words, when the ‘right’ chief executive, DMX Music
music is played in stores it has a positive impact (011) 780 3000
on sales. craig.cesman@dmx.co.za
Vol 25 No. 11/12 I 2007 I MarketingMix 55
by fayeeza kathree-setiloane / omesha moodley LAW MIX
To carry or not to carry
New players
ICASA has licensed five new entrants to the
subscription broadcasting market: Walking on
Water, Telkom Media, e-SAT, On Digital Media
and MultiChoice Africa. On the eve of ICASA
making this announcement Sentech, in
association with the SABC, withdrew its
application. But this is not the last we will hear
from the SABC in the pay-TV arena as all
subscription broadcasting services are statutorily
obliged to carry the public service programming
of the SABC.
ICASA recently announced its intention to
make regulations under s60(3) of the
Electronic Communications Act (ECA) regarding
the extent to which subscription broadcasting
services must carry, subject to commercially
negotiable terms, television programming from
the SABC. All subscription broadcasting
services are obliged, under the ECA, to carry
the public service channels of the SABC. The
SABC in turn has a reciprocal obligation to
offer its public service channels to all subscription
broadcasting services.
Core objectives of must-carry
rules
A key imperative of must-carry rules is universal
accessibility. These rules are designed to ensure
that public service channels are available to as
many people as possible, thereby assisting the
SABC to meet its universal coverage obligations.
Carriage of public service channels by subscription
broadcasting services also gives the SABC
100 per cent coverage of the country thus
extending its audience reach to areas of no or
poor coverage.
Obligation to pay
The issue of must carry has caused disquiet
among the new pay-TV operators as the SABC
has called on ICASA to impose a general rule
requiring them to pay for the content they carry.
Pay-TV operators, including MultiChoice, which
currently carries SABC 1, 2 and 3 on its DStv
bouquet, have strongly opposed SABC’s ‘must-
pay’ proposal. They contend that in view of the
benefits that the SABC will derive from the
compulsory carriage of its content, they should
not be required to pay for content.
56 MarketingMix I Vol 25 No. 11/12 I 2007
Pay-TV operators argue that any payment
they are required to make to the SABC for
content will adversely impact on the consumer
in terms of increased subscription fees.
Internationally, public broadcasting services
are paid by pay-TV operators for carriage.
Implicit in this approach is the twofold
recognition that the costs of carriage for the
subscription broadcasting services is consider-
able in terms of investment in transmission
equipment, uplinking facilities and ongoing
costs; and if any obligation in respect of
remuneration is to be imposed, that obligation
should be at the cost of the public broadcaster
whose public service programming is required
to be made accessible to the public.
Scope of ICASA’s powers
The ECA makes the must-pay obligation of
subscription broadcasting services subject to
negotiably agreed terms. This, notwithstanding,
ICASA has proposed the imposition of a pric-
ing framework or tariffs to level the playing
field among affected operators.
On a proper reading of the must-carry rule
in the ECA, ICASA’s powers only extend to
determining the extent of the public service
programming that would qualify as must carry
by a pay-TV operator. ICASA, correctly so, does
not have the power to determine the ’price‘as
this would be for the parties to decide. One
wonders what would happen if the SABC and
the pay-TV operator are unable to reach agree-
ment on ’price‘? What role, if any, can ICASA
play in forcing the parties to reach agreement?
These questions are among the many that
would need to be considered by ICASA when
drafting the must-carry regulations. 
Fayeeza Kathryn-Setiloane
Director, Werksmans Media and
Communications (Pty) Ltd
(011) 535 8294
FKathree@werksmans.com
Omesha Moodley
Associate, Werksmans Attorneys
(011) 535 8171
Omoodley@werksmans.com