Marketing Mix September October 2009

MarketingMix

0 4 3 0 3 2 4 2PROPRIETOR AND PUBLISHER: Systems Publishers (Pty) Ltd. Tel: (011) 234 7008 North Block, BradenhamHall, Mellis Road, Rivonia, Johannesburg PUBLISHER: Terry Murphy MANAGING EDITOR: Michelle [email protected] EDITOR: Fulvia Becatti [email protected] ADVERTISING MANAGER: Hellen [email protected] PRODUCTION: Spencer van Graan [email protected] EVENT ENQUIRIES: DaisyMulenga [email protected] SUBSCRIPTION ENQUIRIES: Marianne Nzioki [email protected]

www.marketingmix.co.za

ContentsI 0 2 I Ed’s note

I 0 4 I Global mobile trends Mike Wehrs, president and CEO, Mobile MarketingAssociation (MMA) shares some insights into thegrowth of mobile marketing and media worldwide

I 0 5 I Local mobile trendsRick Joubert, executive chairman, Yonder MobileMedia, looks at the development of mobile media in SA

I 0 6 I How to: mobile databaseUnderstand how to get your database ready formobile marketing

I 1 7 I Mobile summitA reportback from the 2009 Mobile MarketingSummit

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

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

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

I 2 5 I Partner selectionCliff Court, chief technology officer, GrapevineInteractive Marketing, explains what to look for in amobisite developer

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

I 3 0 I Mobile measurementRaymond Buckle, CEO, SilverstoneCIS, discusses what (and how) to track, in a mobilemarketing campaign

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

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

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

I 3 6 I Research 10Market research gurus explore the hot newtechnologies and methodologies that are shapingmarket research

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

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

I 4 6 I Expert opinion: Neil JankelowitzNeil looks at who scored, and who missed, at theConfeds Cup

I 4 8 I Expert opinion: Danie Petzer

Danie and Adele find out about technology readiness

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

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Cover design: SilverstoneCIS

3 292(Jan-June 09)

and Adele Berndt

Database:List Perfect

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

Ta-dah!

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Ed’s note

It’s the 2009 Mobile Marketing Guide, packed with all theinfo, insights and tips you need to get your mobile campaignsgoing. This is truly a must-read for anyone who wants tounderstand not only how all the elements fit together, but alsowhat it all means for marketing and media. What’s fascinatingis that there is so much that brands can do with mobile media– the sky’s the limit, really. And what is becoming clear is thatcontent is key, but actually, it’s relevance that’s the biggestdriver. That’s why the mobile database is the Holy Grail; ifyou know what your customers like, don’t like, where theyshop, when and how, what movies they like to watch andwhether they have a large dog or a lapdog that wears a blingcollar, you’re able to really engage them.

This is followed up by Research10, an annual guide tomarket research in South Africa. We get the low-down fromindustry gurus about how new technology (online, socialnetworks and mobile, among others) is taking market research to the next level. It’s interesting to see how eyetracking, behavioural observations, neuroscience and cellphone surveys are increasingly finding a credible (andvery meaningful) place in the world of market research, and are helping researchers to get a better understandingof WHY a consumer behaves the way they do. I’ll certainly be more careful of what I am subconsciously doingwhile pushing my trolley around the local supermarket – who knows if a researcher is watching!

And with that, I bid you a fond farewell – this is my last issue as the editor of Marketing Mix. It’s been apleasure getting to know you all, and learning about the fabulous and dynamic industry that is marketing. On theup side, I now know a great deal about marketing and communications. On the down side, I can’t watch TV adswithout pondering what the brief was about, and who the target consumer is, and whether the ad reaches theconsumer in the right frame of mind… oh well, at least I’m not a passive consumer!

Adieu!

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


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mobile users are both familiar with and reliant upon. It remainsone of the most simple, direct and measurable mediums ofbrand-to-consumer marketing.

When coupled with tools such as vouchers or coupons,brands are able to provide a value-add for the consumer, creatinga dialogue and offering a tangible product that enriches theoverall brand experience. The rise of App Stores is an extensionof this brand-to-consumer dialogue and has already been usedby a host of brands as part of their marketing strategies. Mobileapplications downloaded directly to the handset provide the userwith an enhanced product experience, offering additionalbenefits in the form of unique content, for example, free music to download, exclusive product demos, games to keep ormobile accessories.

In short, this combination of SMS coupled with emergingmobile technologies such as location-based services or presencewill really see mobile come into its own and position it as a coretool for brands to further develop direct conversation withconsumers and offer a more immersive interactive experience.

For mobile marketing to succeed on a global level, marketers,advertisers, brands and everyone else in the ecosystem need torecognise the unique opportunities and advantages of mobileand make their marketing messages personal, targeted andrelevant to the consumer. Whatever the message, whatever thebrand, ultimately it’s all about the consumer. �

Mobile marketing: The global picture

Global trends

It’s widely accepted that the communications landscape isgiving consumers and brands more choices than everbefore. Today’s consumers no longer solely rely on the

broadcast and publishing industries to keep them informed andentertained. Instead, they demand instant access to news andinformation when and where they want it. This change inconsumer behaviour is driving brands to change theirmarketing strategies. As new communication mediums andtools become available and marketing budgets worldwide come under pressure, brands are looking beyond ‘traditional’channels and are actively using a variety of channels to have thebest ways of engaging with the consumer.

When looking at a variety of communications channels –print, radio, television, online or outdoor – it becomesimmediately clear that mobile, like no other channel, has theability to make these traditional communications channelstruly interactive and dramatically improves their effectiveness.Mobile is a unique marketing tool, allowing brands to targetcommunications to the consumer, tailoring and personalisingoffers as well as achieve a higher rate of conversion. Itrepresents the one communication channel that lets theconsumer control, encourage and define the interactions with their chosen brand – anytime, anyplace.

The competitive nature of the mobile industry means that itis continuously developing and improving. Ever-improvinghandsets, smartphones, larger screen size, better Web browsingcapabilities, longer battery life and ‘all you can eat’ datapackages are leading to the explosion of consumer mobile usefor more than just voice and text. In turn, this presents brandsand advertisers with a wealth of opportunities to establish anemotional and interactive engagement using rich, immersivecontent platforms.

Mobile’s targetability, reach, location awareness and direct,interactive link with the consumer makes it the only real wayfor marketers to deliver on the promise of effective one-to-onemarketing. The delivery of relevant, tailored and timelymessages offers high conversion rates and attractive returns oninvestment. Thus mobile is an effective method for theachievement of campaign objectives from customer acquisitionto retention, brand awareness and engagement. It’s far more personal than television, print, radio or Internet and,importantly, is always on and always available.

Mobile is rapidly gaining ground in the marketing industryacross the world with a multitude of tools on hand foradvertisers to strike the right note with the consumer. Thereare a number of key mobile technologies that are drivingmobile marketing forward – and pointing to its increasingsuccess. The mobile Internet, downloadable applications andcustomer service-based features have all come into play andremain areas to watch. Within these technologies are a numberof core tools that brands can harness. SMS, for example, the‘traditional’ medium for mobile marketing in its earliest stages,remains strong and is a now a well-established channel which

By Mike Wehrs, president and CEO, Mobile Marketing Association (MMA)


Local trends

In June 2009 Arthur Goldstuck (World Wide Worx) in an update to an earlier report, noted that there wereapproximately 37 million human cellphone users in SA –

representing a population penetration of 77 per cent.South Africa continues to be a mobile marketing pioneer:

consistently in the top six markets (by volume of mobileadvertising impressions) of the major global mobile advertisingnetworks like AdMob, Buzz City and Mkhoj (who betweenthem serve close to 500 million monthly advertising impressionsto SA) as well as the dominant independent mobile web browser,Opera MINI.

Further, home-grown mobile social media services like MXitand Vodacom’s The Grid never fail to draw admiration frominternational peers and also continue to grow beyond the SouthAfrican market.

It is a little disappointing that with the exception of Vodacom,other mobile operators in SA have not yet invested in anymeaningful way in the development of the mobile marketingindustry; they occupy such an important place in the mobilemedia value chain and have control over a range of high-qualityadvertising inventory.

It is, however, great to see the large media companies andpublishers visibly working toward integrating mobile into theirofferings and in some cases looking to actually publish theircontent to mobile. We are not only seeing the print mediaplayers entering this space but increasingly also the broadcasters– look out for permanent mobile integration into many TV andradio executions in the near future.

This activity is not surprising: although developing marketslike SA lag behind the industrialised world in terms of the shareof advertising spend going to new media at the expense of thetraditional media, the actual trend is no different – whileadvertising budgets are flat or shrinking, new media channelslike Web and mobile are growing at rates north of 30-40 percent per annum.

Today, in SA there are well over 10 million unique monthlyusers of the mobile Internet (broadly defined) compared to justover half that amount for the PC Web. More important is thefact that the overlap between these two access channels is quitesmall – less than 30 per cent of regular mobile Web users haveeasy access to the PC Web.

In addition, MXit (July 2009) reports over 14 millionregistered users (MXit does not report unique monthly users)and Vodacom’s Please Call Me ad tags reach on average about 23 million unique SA users across all cellular networks, every month.

I estimate that approximately one third of SA advertising andmedia agencies have a dedicated mobile resource, normally aspart of a ‘digital’ or ‘new media’ team; agency attitudes tomobile are shifting, with the understanding of its massivepotential in this market.

The recent establishment of a South African council of theglobal Mobile Marketing Association (MMA) has, as at endAugust 2009, attracted close to 30 member companies most of which have become actively involved in supporting thedevelopment of four key priorities: mobile marketing standardsand formats; measurement; and training and networking/PR. Sofar, only three large mainstream agencies have committed to thelocal MMA so the advertising industry is under-represented andis at risk of missing a great opportunity to help shape thedevelopment of the mobile medium.

At Vodacom, close to 70 per cent of mobile media revenuesoriginate from agencies as opposed to brands direct – a sign of a medium fast gaining acceptance. The 2009 Loeriesadvertising awards has for the first time also included a mobileadvertising award.

In addition to driving innovation, and enhanced userexperiences in publishing and advertising, mobile is also having asignificant impact on processes related to customer service aswell as commerce (mobile wallets), both of which are key in theoverall marketing value chain.

We will look back at 2009 as the year that the chasm betweenthe early adopters of mobile media and the early majority (mainstream agencies and brands) was crossed: the year that the7th mass medium reached a tipping point. �

Mobile marketing in South Africa – a high level overview

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By Rick Joubert, executive chairman, Yonder Media

How to: mobile database

Setting up a mobile databaseT

o start ‘doing’ mobile marketing right, the first step is tofind a service provider that has the actual technology andsystems needed to create, send, receive and process

mobile marketing messages (SMS, MMS, and so on). Theyshould also be able to collect and store as well as relay backinformation about the target market as generated by campaigns.This information needs to then be added to an existing database.

The next major priority is developing a database that ismobile marketing-ready. Initially, the information in thisdatabase must at a minimum include the full name andcellphone number of each target market consumer.

If cellphone numbers are missing, run an SMS-to-win competition,for example, (see page 18 for more info), or send a link to aninteractive voice recording (IVR) that prompts customers toupdate or confirm their details in exchange for an airtime top-up, perhaps.

There are a few simple ways to establish a mobile databasefrom scratch. Run a competition, for example, using mobileentry mechanisms (SMS short codes or USSD) to capture the


How to: mobile database

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point, it becomes possible for a chocolate brand that wants totarget women living in Morningside, Sandton, with a specialtwo-for-one chocolate bar offer at their local Pick n Pay on aparticular day of the week, for example, through a simple SMS.

Building this sort of database isn’t rocket science; it’s simplythe understanding that customers need to answer questionsabout themselves to fill out the database, and layering this withother available data (such as retail till data, for example, orinformation from the cellphone networks about the consumer’scellphone) can paint a three-dimensional picture of each contact.

“One way is to add intelligence to your database over time byasking questions at every touch point with your database (whatI call drip-irrigation interrogation), thereby learning about yourdatabase on a continuous basis,” says Candice Goodman,managing director, mo-B.

A database should also provide more information aboutconsumers’ cellphones so campaigns can be planned ahead –knowing whether each consumer’s handset is MMS enabled(and whether this functionality is switched on), and whether it is WAP enabled (this impacts on ability to browse the mobile Web).

Other factors to think about: ensure that whatever is sent tothe database will display correctly on consumers’ phones (screensizes and resolution as well as software need to be verified). Thenetworks have this information, so check the database againsttheir records. �

full names and cellphone numbers of a consumer group. Partnerwith a company or brand that already speaks to those targetconsumers and share its database; just be sure to follow the rulesset out by legislation and codes of conduct governing a consumer’sright to privacy and protection of personal information.

A mobile media company can also be approached for itsdatabase; simply define the target market (demographics,location etc), and what is to be sent, and the mobile mediacompany should do the rest.

There is also the option of going to a reputable list agent toget a database of consumers. “You can pre-populate a profiled,opted-in database and then ask questions relevant to your brandor product,” says Fiona Smit, managing director, Yonder MobileMedia. For example, if you know the name, age, gender andlocation of those listed on a database, you don’t need to askthese questions again. Instead, simply ask brand-relatedquestions such as where is your nearest Pick n Pay outlet? “This way you can keep the profiling process short, simple andrelevant to the consumer, and gain valuable information for theclient,” says Smit.

First prize in the database-building stakes is gettingconsumers to opt in for mobile communications from the startand to build this info into a database. This one’s tough – fewbrands have that kind of appeal. But for a live sports resultsservice, for example, it is a viable approach as consumers wantto receive this sort of info on the go.

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

A database should not be just a list of

cellphone numbers and it should become the

backbone for a potentially rich database – one

that yields a profile for each contact: where

they live, where they shop, their favourite ice

cream, whether they are married or single,

and so on.

Jargon got you?

You might hear mobile marketing geeks refer to mobile messaging

as A2P or P2P.

Just so you know, A2P is the acronym for ‘Application to Person,

and refers to messaging that is sent by a business or company to

the consumer’s phone by means of an automated application. This

allows for the distribution of content and information or for search

and inquiry services (such as an SMS that invites the recipient to

‘click to call’ or ‘click to book’) as well as for interactive services

(such as ‘click to vote for your favourite Idol’).

P2P (person to person) refers to those messages that one consumer

sends to another, which may carry advertising messages. For

example, a brand can purchase advertising space in Vodacom’s

Please Call Me messages, which users send to one another.

Warning: Always remember the consumer’s million-dollar question:

what’s in it for me? Whatever it is that the consumer is being

offered has got to be really exciting, or else it’s just not worth

their effort (or the R3 it will cost them).

For this reason, the Wireless Application Service Providers

Association (WASPA) Code of Conduct encourages members to

state clearly, upfront, what the cost of the interaction will be for

the consumer (cost of entry, cost of subscription or service, and

cost of competition prize delivery, for example). Also, if they do

interact, remember cellphone marketing etiquette: the consumer

should get an automatic reply SMS, to thank them for the interaction.


Mobile summit

17

Mobile marketing summit: showing mobile success

considered. Tyler Reed, founder and director, TinyImpact, saysthat user information can be mined to deliver campaigns that aremore relevant.

Device targeting is a great starting point as it defines the callto action that the user can receive. The make and model, theoperating system, its messaging capabilities and browsercapabilities as well as multimedia capabilities are all factors to be considered.

Ahmed Kajee, managing director, Cellsmart, says whenmeasuring mobisites, it’s about measuring click throughs orimpressions, while MMS and real-time voice messaging aremuch like TV advertising: you can be pretty sure that if yourdatabase is accurate, most of the target would have receivedyour ad.

All measurements should include the basics: reach, frequency,penetration and so on, as well as cost per lead, conversions andROI, and also brand measures (brand equity, awareness andloyalty), says Kajee. Remember to track beyond the clicks andfocus on conversions too.

Says Kali Ilunga, founder of Spoken Ink, campaigns mustdeliver something that has value in the real world. So while amobile game is cool, a mobile shopping voucher is even better.

Speaking of shopping, mobile banking and commerce are alsobeing boosted by the rise of mobile technology and its adoption.

Mobile commerce and banking Mobile applications are increasingly being used in the world ofretail and banking. As Derek van Wyk, manager: Marketing andProduct, TransUnion Credit Bureau, points out, cellphones areallowing for fast and accurate credit scoring, and mobileauthentication that prevents fraud.

As Praekelt says, mobile is allowing even unbankedcommunities to make payments.

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

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

The Marketing Mix Mobile Marketing Summit and MobileSolutions Showcase shed light on the mobile market in SA.Rick Joubert, co-chairman of the Mobile Marketing

Association (MMA SA) reports that there are over 50 millioncellphone connections in SA of which 37 million are individualusers. That’s about 77 per cent population penetration. It’s notsurprising then, that Raymond Buckle, CEO, SilverstoneCIS,says that in SA, mobile is the first response channel, allowing forboth reach and richness.

According to Brett StClair, country manager: South Africa,AdMob, SA is in the top five highest impressions in the world.The AdMob network, which, simply put, is a mobile advertisingnetwork, allowing brands to advertise to consumers on themobile Web, served 140 million impressions in SA in June 2009.

The local mobile market is estimated to be worth around R200 million, says Joubert, and agencies are slowly starting tounderstand the mobile space, with the big spenders beingfinancial services, mobile entertainment, handset brands andFMCG brands.

Who’s on mobile? The prime age for mobile is 13-33 years, says Tanya Howard,product manager: Mobile Advertising, Vodacom. Teens andyouths are big business for mobile brands, given that they are alarge market and early adopters of new media. But they don’tspend a lot on their phones, so they may not grow profits.

The majority of SA’s population still uses text services. In fact,SMS and conversational marketing is on the rise, says Dr PietStreicher, managing director, Bulk SMS.

That said, the evolution of the mobile Web is one to watch.There are over 10 million mobile Web users across the networksin SA, which is far greater than the number accessing the fixedInternet. As Gustav Praekelt, CEO, Praekelt Consulting,explains, 1.7 per cent of the SA population uses broadbandInternet, while 3.9 per cent use WAP (Wireles applicationprotocol, Internet access via a cellphone).

Lower LSM Craig Irving, founder, Consumer Insight agency (CIA), conductedresearch on behalf of Soccer Laduma, on cellphone use by LSM4-8 black men. This market is not thrilled with mobile services,since they are not giving them the best user experiences. Forexample, mobisites with large banners, which take a while toload, and then force the user to scroll down. These are very costly for this consumer segment (which knows exactly howmuch – to the cent – it costs them to send an SMS or surf themobile Web). Jargon, such as the terms ‘WAP’, ‘hyperlink’, andso on, is another issue, and one that makes mobile surfing morecomplex for this market. This sort of insight is key in planningand managing a mobile campaign.

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


How to: SMS

18

SMS

encouraged to rent a shared short code (ie a short code that isbeing used by more than one brand or company) for theduration of their campaign, rather than using a dedicated shortcode. Each campaign on a specific short-code channel isdifferentiated by the keyword used to activate it (the keyword istyped into the SMS by the consumer in the entry process).

Depending on the particular short-code number, theconsumer pays anywhere between standard SMS rates 80 cents)to R20 per short-code SMS. These costs are pre-set, and areallocated to specific short codes; what’s more, clients can expectto take up to 50 per cent of all revenues made, while the WASPsand the cellphone networks pocket the rest.

Be aware that the costs associated with short codes could be abarrier to entry for some consumers. Be aware too, that theWireless Application Service Providers’ Association (WASPA)code of conduct (available on its website –www.waspa.org.za/code/codeconduct.shtml) dictates that thesecosts need to be stated clearly in promotional material.

Be aware that aside from the regular short-code rental feethere may also be a once-off activation fee. “Furthermore,consider the service costs for account and campaign managementand any specific technical or other requirements that you mayhave,” says Ahmed Kajee, managing director, Cellsmart. Themore complex your data management needs, the more costly it is.

Premium-rated SMSA premium-rated SMS costs the consumer more to send than aregular SMS. These are used in competition entries or to facilitateparticipation in particular events (such as the Idols voting), tosubscribe to a service (such as weekly ringtones or mobilegames) or to make donations to charities or causes. Theconsumer will send an SMS to a particular short-code number toinitiate any of the above at a premium cost that ranges anywhereup to R150.

Again, consider the higher cost of the premium -rated SMS asa potential barrier to entry, and know that the networks andWASPs will pocket a proportion of the profits. The consumermust know what the costs are upfront, and the WASPA code ofconduct dictates that if the total cost of a service exceeds R200in one calendar month, then the consumer must be contacted sothey can confirm that they will accept the billing costs.

Short message service (SMS) is – aside from voice calls – themost ubiquitous mobile format, since all handsets arecapable of sending and receiving text.

SMS is a dynamic tool, given that it includes simple text, shortcodes, premium rated SMS and USSD.

SMS text notificationsThese are the simple text messages that stores such as Edgars,for example, use to remind their club members of a sale. Smallbusinesses use these to remind customers to make account payments,for example, or to remind clients of their appointment.

To set this up, the marketer will simply take their database ofcustomer or target cellphone numbers to a mobile media serviceprovider, who can then create and send the SMSes. By segmentingthe database, the marketer can also target the SMS notifications.

These SMS notifications generally should not cost theconsumer (unless the notification is part of the service offeringof a company and is built into the service and admin feescharged to the customer).

In sending SMSes, the major cost consideration is around thevolume to be sent, and thus the cost per SMS. Generally, themore SMSes sent, the cheaper the cost per SMS, with rates perSMS anywhere around the 30c-R2 mark. Some service providershave an SMS credit system (the marketer sends as many SMSesas they would like until they’ve spent all their credits).

SMS short codesA short code is the unique number that a consumer will send anSMS or MMS to in an SMS/MMS-to-win competition, forexample, or to access information or content (such as a ringtoneor a cellphone screensaver).

To set up a short-code campaign, find a WASP (wirelessapplication service provider) that is able to offer the renting orpurchasing of a short code, as well as the use of keywordsnecessary for this sort of campaign.

Short codes are currently in high demand, so users are

The consumer must know what the costs are

upfront, and the WASPA code of conduct

dictates that if the total cost of a service

exceeds R200 in one calendar month, then

the consumer must be contacted so they can

confirm that they will accept the billing costs.

How to: SMS

achieve and what role it plays within the overall campaign orstrategy. Is the SMS playing a supporting or leading role, or is itthe hero of the campaign?The message: with only 160 characters in which to wow andpersuade the recipient it had better be good. Make sure that themessage is clear, targeted and absolutely relevant (how aboutusing the recipient’s first name). Don’t forget to include crucialinfo like your company name or the price of each SMScompetition entry. Value: does your SMS give the recipient value of some sort? Isthere something in it for the consumer? If not, why are yousending it to them?Reply path: the reply path (feedback or response from the customer)must be monitored and you must react (make sure that everycompetition entry or click gets a relevant and speedy reply –even if it is a quick thanks for their participation).

Always have an opt-out. Even if the consumer originallyopted to receive your SMSes. Make it all measurable: keep track of exactly who received yourSMSes and what they did with them Tie-in: if your SMS activation is part of a larger campaign, makesure it looks and feels like the rest of that campaign.

MeasurementTo measure an SMS campaign track:� The number of recipients of the message� The cost per lead and per conversion

UUSDUnstructured Supplementary Service Data (USSD) is a text-based interactive tool, which captures the user’s responses and thenreacts. It can thus be used for competition entry, for surveys andto elicit customer feedback as well as to subscribe to a service.

For the consumer, USSD is cheaper than short-codes (as lowas 20 cents for 20 seconds of usage, in some cases). Plus, itworks across all phones and networks and doesn’t requirespecial phone software to operate. Most of the lower LSMmarket is familiar with the workings of USSD, since it is theplatform by which airtime is loaded or topped-up, which meansthat this is a great tool for reaching a mass market or thebottom of the pyramid.

How does it work? The consumer sends a keyword to aparticular short code to initiate the USSD service and theninteracts with it. For example, the consumer SMSes the brand’sname to a particular short code, and then the USSD servicestarts up and asks the consumer to enter their name andsurname, and answer a question to enter a competition.

Find a WASP that can set up the USSD channel, and willmanage the campaign. The cost of setting up a USSD campaignranges but expect to pay around R2 000 to set up the USSDchannel, and a further 50 cents per response. Again, the cost ofthe USSD service must be made clear to the consumer upfront.

Getting SMS rightClear objectives: be clear about what you want the SMS tool to SMS > p21


How to: MMS

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MMSHow to do it?Once the database is set up, and has been screened for MMSenablement and configuration (see page 6), find a serviceprovider that has MMS capabilities.

If the MMS is in response to a short code (ie the consumersends a keyword to a short code and receives an MMS inreturn), arrange for short code and keyword rental (see page 18for more info).

To send an MMS that contains links to a mobisite, use anMMS that supports auto-multichannel function.

There is a multitude of variances to be considered (screensizes, cellphone operating systems, handset types, and so on), which means that the MMS must be optimised to each handset.

If the database has been pre-screened, then the handsets thedatabase contacts are using will be known and this may help tonarrow things down a bit. As the network operators improvetheir standards, so the need to use special settings (that tailorthe MMS message for individual handsets) gradually falls away.However, there are sometimes problems with this, as Grapevine Interactive Marketing’s chief technology officer, Cliff Court, explains: yes, the networks will automatically re-format images in the MMS message, so that these fit thescreen size of the recipient’s phone. However, he says, thenetwork databases are not always up to date and the re-formattingmakes the images display incorrectly. Marketers are thusencouraged to use a standard image size of 128 x 128 pixels andto manage their campaigns directly rather than handing them tothe networks.

Some campaigns will still need special software or settings,especially if these are targeting the lower end of the market, says Groenewald, where older handsets still depend onspecialised software.

Brands are encouraged to educate their customers about MMSto lower the barrier to adoption and use.

The cost of MMS as a marketing tool is high compared withSMS, so there is a lot of debate around the effectiveness of thetool relative to its cost. “Although we have sent out lots ofMMSes for and on behalf of various brands the response isnever what we anticipate, it is expensive and in almost all casesthe MMS is followed up by an SMS anyway,” says Hans Mol,director of Mobile Media, Be-Mobile. “I think that moreeffective utilisation can be delivered by sending the link to your mobisite where the user has the choice of engaging and theability to access far more than what an MMS can deliver at afraction of the cost.”

Court goes on to say that, based on this, the only campaignsthat are really suitable for MMS are those that must have audioand possibly those with slides/changing images.

That said, in viral campaigns that drive brand engagement orcreate buzz around a brand’s event, for example, MMS canprove pretty exciting. As Mol explains, MMS is a user-generatedtool too, “so providing branded MMS- type postcards that couldbe personalised by users would be a relevant way of using MMSin the mobile space.”

CostThe cost of an MMS campaign varies, with the price per unitmarked anywhere from 80 cents to R20. However, the exact

Multimedia messaging service (MMS) is one up on basicSMS. With MMS, video, audio, images and rich text(text with different colours, fonts, etc) can be sent.

Messages can also be longer than those sent in an SMS, whichlimited to 160 characters. All of which means that the MMSrecipient enjoys a potentially more colourful, interestingmessage experience. “MMS is as diverse as e-mail. There arethousands of designs, creatives, attachments and formats thatone can use,” says Eddie Groenewald, CEO, MultimediaSolutions.

For brands and companies, MMS holds a lot of potential as amobile marketing tool. MMS can direct the customer to amobisite or invite them to enter a competition; it can send the customer a personalised birthday message, or remind themthat they need to pay their account soon or even send them some-thing entertaining that they’ll want to pass on to their friends.This can be followed with an MMS business card, and an invitethem to call and say, book a test drive or a free businessconsultation.

“The most well-known advertising opportunity on MMSwould be on Vodacom’s permission-based AdMe platform,” saysCandice Goodman, managing director, mo-B. AdMe is an opt-inservice; the consumer signs up to the service and offers somepersonal info. The platform then segments its database, anddelivers ads that are relevant – women will receive an ad for anew hair care product, while men will receive a special offer onbeer, for example.

Who can I reach with it?While the penetration of MMS-enabled handsets in SA isgrowing, it is important to keep in mind that not all SouthAfricans own one yet or know how to use the MMS functionality.“Fifty five per cent of our population sends MMSes,” saysAhmed Kajee, managing director, Cellsmart, indicating that themajority of the population is empowered to use this platform.But it’s tough to nail down exact figures – the jury is out onexactly how many local handsets are MMS enabled, with the figureranging from around 50 per cent to 85 per cent. Goodman findsthat the higher LSMs tend to have a higher enablement rate.

The cost of MMS as a marketing tool is high

compared with SMS, so there is a lot of

debate around the effectiveness of the tool

relative to its cost.


How to: MMS

21

ensure that the target phones are MMS capable and enabled,says Court.

“Ask to see samples of their work. As for a track record, ifthey are not doing 500 000 MMSes a month they are notserious MMS providers and don’t understand the complexitiesof how to manage volume,” says Groenewald.

Questions to ask:� What are the creative limitations with regards to MMS? � Are there any limitations to sending out a larger quantity of

MMS? � How do I know if my database can receive MMS messages? �

� Do you pre-check cellphone numbers to understand whichare MMS enabled?

� What type of reporting can you offer? And what can youmeasure?

� Do you optimise the MMS depending on the phone’s screensize?

� How good are your creative services?� How well do you optimise the size of the MMS (audio and

graphics)?� Do you provide and manage an opt-out service?� Can you provide a pop-up to a mobile website at the end of

an MMS?� Can you set the MMS so that it cannot be forwarded? Useful

for controlling campaigns and preventing passing on of limitedspecial offers, for example.

� Can you personalise and customise the MMS? That is includea name, account number or value etc?

� Is the MMS optimised across all handsets?� Timing – when will the messages be sent? �

cost per MMS will depend on the size of the message sent; thiswill depend on the use of audio, the number of ‘slides’ in theMMS and the resolution of the graphics. “You need to budgetfor a creative set-up cost,” says Goodman.

If a campaign uses short codes, there is also the cost of theshort-code rental. Consider that MMS replies are costly for theconsumer, so beware of using this method.

Be wary of the ‘cheap and nasty’ warn experts; an MMS thatdisplays poorly and has poor functionality equates to a pooruser experience. “Anything under R1 is not well aggregated,R1.95 is standard retail for quality MMS,” says Groenewald. Hegoes on to say that a voice over for MMS will cost in the regionof R1 500.

MeasurementThe good news is that MMS is highly trackable and can bemeasured from ‘send’ to ‘opened’, particularly if the call toaction is very measurable.

Measures of an MMS campaign can include reach (how manyconsumers received the MMS), penetration and frequency aswell as conversions (how many recipients clicked through to amobisite, for example, or clicked to call a business). “Stats aredebatable; we’ve seen anywhere from 0.02 per cent to 35 percent responses which demonstrates how important the relevanceof what you are doing is to the user,” says Mol.

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

MMS, mobisites and more? They should preferably havethese capabilities in-house.

� Responsible: are they familiar with best practice, which willaddress such issues as the time of day that SMSes are sent aswell as opt-out ethics?

� Analytics: what kind of reporting and analytics do they offer,and how will they help with tracking and measurement of acampaign?

� Capacity: can they send SMSes in bulk? Can they sendSMSes that are longer than 160 characters, should this berequired? Can they tailor and personalise messages to matchthe client’s needs?

� Costs: can they provide clients with a transparent cost structure? Do they charge for any extras such as managementfees?

� Is there a reply path and is it monitored for unsubscriberequests?

� Where do they get their database if they’re not using yours,and how else do they use this database? �

� The total responses received – either the number of SMSessent to a short code or the clickthroughs to a mobisite; also,the number of keywords sent

� Number of invalid numbers (those that bounce back or areincorrect).

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

Selecting the right partnerIn selecting a mobile marketing partner for an SMS campaign,there are a few questions that one should ask:� The right credentials: are they accredited by WASPA

Transactions Act or the Consumer Protection Bill, etc)?� Proven successes: can they prove their track record with case

studies of their previous work?� Skills: do they have the skills, resources and capacity to

develop, deploy and host not just an SMS campaign, but also

SMS continued > p19


How to: mobisites

24

Mobisites

Role of mobisite: Understand the role a mobisite will play inthe user’s life, as this dictates what features and functionality itwill require (ie store locator, versus enquiry form).

Simplicity: Users turn to mobisites to find info quickly, on thego. The mobisite URL should be short and intuitive; limit theuse of usernames and passwords as far as possible, says CandiceGoodman, managing director, mo-B.

Avoid large company logos and banners (take too long toload; force the user to scroll down), lengthy texts, flash orvideo. Make telephone numbers and e-mail addresses linked, sothe user can click to call/e-mail automatically.

Small screen experience: Many users will be accessingmobisites having never accessed the Internet via the desktopPC. Teach them how to use links, feedback forms, etc. Ensurecontent is easy to view on a small screen.

Embrace the tech to embrace the user: Engage all the otherfunctions of a cellphone (SMS, MMS, etc). Send the user a viralMMS after they have visited your mobisite or an SMS toconfirm their interaction, for example.

CostThe cost of setting up a mobisite is entirely dependent on thefunctionality and interactivity of the mobisite itself, with thecost of a site ranging from under R10 000, to R50 000. Expectto be charged hourly rates for mobisite development.

Be wary of companies offering a basic WAP site (with lowfunctionality) in exchange for a commitment to advertisethrough their ad network, as then the WAP site pretty muchbelongs to them, explains Mol.

Additional costs include maintenance and hosting fees.“Maintenance refers to any additional work and updating of themobisite that might be needed and hosting depends on whetherthe mobile supplier will be hosting the mobisite on their side”says Kajee.

MeasurementAs with a regular website, the traffic to the mobisite is a keymeasure of specifically unique visitors. Also, track number ofrepeat visits, pages viewed, interactions etc. Also useful to trackis which country the visitor is from, and what network they areon as well as which handset they are using. (Read pages 30-31for more info). �

Amobisite is a website specially designed for viewing on acellphone. “Almost 90 per cent of our population has aWAP-enabled mobile phone,” says Ahmed Kajee,

managing director, Cellsmart. World Wide Worx’s 2009 Mobilitystudy has found that there are four million mobile Internetusers in SA, and growing.

Brands should be developing their own mobisites in order tobe available to consumers on the go, with info and content thatengage the consumer.

“We believe that this element of mobile media is one of thefirst that any business should start with. From here one can usethe various elements such as SMS and MMS to engage withusers and in this way build their user base and understanding ofthe customers,” says Hans Mol, director of Mobile Media, Be-Mobile.

Experts say that in SA, the majority of the mass market willaccess the Internet for the first time via their cellphone, somobisites are becoming increasingly important. “Mobisitesallow brands to have access to the ‘unmarketable youth’ who donot access traditional media such as newspapers, explains LironSegev, CEO, Swift Telecoms. “For example, adidas has managedto target the youth market by offering a Mobile ‘Urban ArtGuide’, which allows users to pinpoint urban art/graffiti withinthe city and take a walking tour of these locations, led by theapplication.”

In SA consumers and brands are still getting to grips withhow to use mobile browsers and mobisites, but this will changeas data rates come down. Currently, rates are not low enough toencourage the mass market to make use of mobisites.

Aside from developing a mobisite, there is also the option ofpurchasing advertising on another mobisite (buying a banner adon their homepage and allowing for click-through to your ownmobisite, for example). The publisher (owner of the mobisite)will charge the advertiser on a cost per click (CPC), cost perimpression) (CPI) or cost per thousand impression (CPM)basis. “Generally, most are in CPM ranging from R300-R60depending on the volume booked,” says Garth Rhoda, nationalmobile account manager for Habari Media.

Once the user is in a brand’s environment, viral marketingapproaches can be applied by providing access to update socialnetworks such as Facebook and a refer-a-friend link. “We’veseen almost 50 per cent referrals sent out by the unique usersthat come in from banner adverts,” says Mol.

Currently, marketers can purchase banner advertising on theSoccer Laduma mobisite as well as on Vodacom’s Internetportal, VLive, and on MXit, in the form of static images (called splash screens) that pop up when pages load. “AdMoband Buzzcity are examples of publisher networks that offer alarge range of mobile media opportunities under one umbrella,”says Kajee.

Creative tipsFind a specialist developer (see page 25 for advice), that willensure the site displays properly across all handsets, andconsider the following:

Check these out: a few local mobisites

Open your cellphone’s Web browser and enter the address as it

appears below to visit the mobisite:

www.makrosa.mobi

www.toyotasa.mobi

www.player23.mobi

www.saskoflour.mobi

www.morkels.mobi

www.homeground.mobi

www.vcupgrade.mobi


Partner selection

25

To many it seems obvious. You already have a Webcompany who is responsible for creating and maintainingyour Internet presence, so it makes sense (and it’s

more convenient) to let it do your mobisite as well. Well, I’mhere to argue that, not only does it not make sense, but yourisk damaging your brand in the process.

Let’s be clear about something, any company with apublic-facing brand can no longer get away with not having amobile Internet presence. Forrester Research has recentlystated that the next one billion online users will be on mobiledevices. In SA, Internet-capable cellphones outnumber PCs.All this means that marketing teams have to start staking outa presence on mobile devices.

Every year, the world’s largest mobile expo is held inBarcelona. In speaking to major vendors during my last visit,the message was overwhelming. Don’t try to simply use (orrepurpose) your existing website for your mobile presence.If you do, your user experience will almost certainly be poor,resulting in brand erosion.

There are excellent Web designers out there and one wouldthink that a few simple adjustments to the mobile worldmind-set would suffice. Unfortunately, it’s not that straightforward. Websites aimed at PCs can make use of a veryadvanced set of functionality, such as AJAX and Flash; theseare (mostly) not supported on cellphones. Plus, PC websitestake advantage of the larger screen area.

Cellphones are very different. Not only are the screensizes smaller and form factors varied, but so are phones’browser capabilities, the content types supported and eventhe parameters set by individual mobile operators. Thoseaccustomed to PC-centric Web development have limitedexperience with these issues and they often devolve down tobest-efforts and hope for the best. However, when it’s yourbrand involved, that isn’t good enough. A poorly designedmobile site that does not render correctly on the majority ofphones will simply frustrate and annoy your customers.

Mobile Internet sites should ideally be developed bymobile specialists, who besides being comfortable with thesmaller screen sizes and mobile requirements, already havestrategies and mechanisms for handling different phonescreens, content types and understand the vagaries of themobile operators. They know what works on mobile andwhat doesn’t.

Of course there are ordinary mobile Internet developers,and there are better ones. The best know what will frustrateyour customers and how to avoid it in most cases. Adeveloper worth their salt understands that it’s no use offeringyour user an MP3 ring-tone if their phone won’t play it.

Most professional mobile Internet developers make use ofmultiple sources of information to determine what a particular

cellphone can and can’t do. Be careful of those who tell youthat they have it covered because they use the so-calledWURFL database. This is a freely available data source withmany of the world’s phone specifications within it. Theproblem is that the WURFL data can be (and is) updated byanyone, which results in a number of erroneous entries andoften, no data at all for many cellphones. The better mobiledevelopment companies will combine such free mobilephone data sources with commercial ones to ensure the most accurate data is used, and your customer gets the best experience.

The good news is that once you’re on the phone, you canmake use of additional mobile channels to interact with yourcustomer. For example, while the user is interacting withyour mobisite, their choices and actions can be confirmedwith a follow-up SMS or MMS. Or ‘Click-to-call’ links canbe placed on the site, making it easy for the user to get intouch with you immediately. The result is a far richerinteraction with your customer – but it takes a competentmobile developer to make it all happen seamlessly.

My intention in writing this article is not to cast aspersionson PC Web designers, but rather, to highlight that as a result of their specialisation in the PC-based space, theytypically don’t have the kind of expertise the mobile worlddemands. �

The dangers of getting a webcompany to do your mobisiteBy Cliff Court, chief technology officer, Grapevine Interactive Marketing


How to: mobile apps

28

Applications

Challenges:� Handset variability: cater for different handset types, and

different audiences.� Resource heavy: apps tax the phone’s battery and resources.

The recent launch of mibli may see a solution to this. This isa new software ecosystem, which enables any Java-enabledhandsets to run mobile apps that are traditionally onlyaccessible to smartphones. Mibli is available for free andrequires a single download to operate. The software willallow the user to download apps that will enable them to paybills, transfer airtime, play games or make use of social networks. Brands are now able to target young SouthAfricans through this software by offering them cool apps.Mibli also offers banner advertising, full-screen mobisites andinteractive messaging. Mibli will be launched to consumers inOctober 2009, but, according to JJ Botha, CEO of theMobile Services Company, the company has access to more than a million active social networking users, and has already got banking and FMCG brands signedup for campaigns.

� Relevance: Once the SA market matures, more relevant appswill make their way into the market.

� Pricing: key in a developing market.� Treatment: Apps need to be marketed and treated like

products in their own right. An app is a long-terminvestment, not a once-off project.

Look out for widgets, which are like micro apps or bookmarks equipped with RSS feeds that deliver content asrequired. These are, like apps, downloaded to the phone to carryout specific functions. �

Mobile applications (or apps, as they are called) arespecialised tools, downloaded to a cellphone to allowthe user to perform a particular task. MXit, for

example, is an instant-messaging application, which the userdownloads to their phone in order to send and receive instantmessages from their contacts.

The smartphone (BlackBerry or the iPhone, for example) isbest equipped to handle apps so it is this market in particularthat is driving the growth of apps worldwide. However, this isnot to say that apps are limited to smartphones. “EverySymbian-based, Multimedia-enabled handset is a viablecontender for application utilisation,” explains Hans Mol,director of mobile media, Be-Mobile. Currently, Symbianphones are still high-end handsets and are not in the hands ofthe lower LSMs.

In SA, say experts, the mobile app market is big, and apps aregrowing fast. “MXit is very popular among the 19 – 25 agegroup. Users are also checking and updating their Facebookstatus as well as ‘tweeting’ from their mobile phones,” saysAhmed Kajee, managing director, Cellsmart. He finds thatsocial media apps are very popular as are news, gaming andentertainment apps. “There are a lot of free applications, andthen there are those that need to be purchased – like games –and are found on content portals created by the networkoperators and content providers like Exactmobile or the iPhoneapp store,” says Kajee.

What’s in it for brands? Anything from brand engagement to retail solutions. “It all depends on the purpose of theapplication. In essence, the application will drive brand andmessaging and, wrapped up with a good service/product it willbolster mindshare,” says Mol. A businessman might want todownload an app that lets him book plane tickets on the go(and also lets him pre-book seats), while a coffee drinker wouldlike to pre-order coffees from the local coffee bar. “The localmarket is ready for mobile CRM based applications that covervarious service-intensive organisations under one application.Log a query with your bank, insurance company, mobile serviceprovider, gym or whatever else and interact with them usingyour cellphone!” says Kajee.

How to make an app? Download or purchase software (suchas Cascada Mobile’s Cascada Breeze, which allows someonewith basic Web programming skills to create an app for mobilein minutes – www.cascadamobile.com) which will simplify theprogramming. Or recruit a programmer who can create the app.

Apps for you to try

Facebook for mobile

Fring- peer-to-peer mobile VoIP (voice over IP).

MXit- instant messaging and chat

Twitter- micro-blogging site

The Grid - mobile social networking app.

Yeigo - mobile VoIP app

Cnectd- free SMS service

AdMe- Vodacom’s opt in ad-serving network.

Opera- a Web browser for mobile

Remo- an app that brings the office onto your cellphone (allows the

user to send and receive e-mails, set up a calendar and schedule, etc).

Nimbuzz- lets the user call, chat, message and send files on the go,

for free. It also combines the user’s contact lists (across e-mail, chat

etc) into one list.

WiWallet- South African mobile wallet, which allows the user to

make mobile payments.

Gmail- Google mail

Gravity – twitter app

Pocit- mobile payments

The local market is ready for mobile CRM

based applications that cover various service-

intensive organisations under one application.


Mobile measurement

30

Mobile performance measurementand insight

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

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

Alogical place to start of what is by unpacking the different aspectsof your campaign, looking at the different measurementopportunities and how they align to your objectives.

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

Display advertisingWith display advertising, you’re employing a pull strategy acrossa larger audience with wider exposure, but on the assumptionthat a certain percentage of the audience will find yourproposition relevant. Cost per thousand impressions (CPM )based media placement is a good strategy for exposure, and candrive actionstoo, while a cost per click (CPC ) based campaign isinherently focused on results and you’re only paying for theclicks on your banners.

� Unique messages sent by creative and audience segment ifpossible

� Delivery receipts, message failures and expiries. Remember toclean out your database after multiple errors to the sameusers/numbers

� Encode mobi links or use specific keywords as part of the call toaction to measure performance of specific messages

� A new service called LNQ.in provides URL shortening and evenallows you to track the virality of messages back to individualusers – saves precious characters in SMSes and allows anenhanced level of control as well as insight into the results of yourcampaigns.

Measurement (messaging)

� Track unique messages received by keyword, which should implycreative too

� Short-code replies against encoded keywords is a phenomenalway of gauging the relative performance of your traditional mediaplacements; allows a view of what medium and messaging worksbest for a mobile call to action

� If you have a marketing database with cellphone numbers andprofiling data per customer/lead, you’ll be able to report on whichaudience groups or segments responded to your call to action,allowing you to tweak your targeting and increase performance infollow-up campaigns

� If part of your campaign mechanics include a reply message witha secondary call to action, you should be able to track byindividual user who actioned the second message.

Measurement (short code)

� The number of unique visits. With USSD, you’ll automatically getthe cellphone number and can determine the number of uniquevisitors as well. With a mobisite you can do the same if yourhosting provider has access to MSISDN headers (the uniquenumber that identifies a particular SIM card) – this is not availableby default)

� If your message banners or links were encoded, you’ll be able tomeasure and cross-check traffic by unique campaign/creativeagainst the stats reported by the media owners or ad networks.Expect a reasonable discrepancy but keep an eye on this

� Mobile and PC browsers pass through what’s called ‘header’information when they access your site, and if your provider is setup to capture this, it will yield info about what phones, browsersand capability the user has. Also, the type of phone used is a goodindicator of who’s using it.

Measurement (USSD and mobisites)

� Ad impressions by creative, media property/channel and contenttype

� Ad click-throughs. If you use encoded links per creative and mediaproperty you can independently verify click through reporting bythe media owner

� Time of day, week and month is fundamental, specifically whenmeasuring responses or click through actions

� Cost per impression, message and/or click through should be factored in.

Measurement

By Raymond Buckle, CEO, SilverstoneCIS


31

Actions and sales (post click) A cellphone is in the hands of more than 90 per cent of theeconomically active market. If you think of your objectives interms of a hierarchy or funnel, the first consideration may be tosimply drive traffic, and then brand engagement in terms ofcontent viewed or downloaded, but regardless of what else youmay want to achieve, the next consideration for any mobilecampaign should be to solicit an opt-in – it allows futurecommunication and also anchors all your other tracking andmeasurement efforts to unique consumers.

Now you can worry about lead generation and sales –depending on the type of campaign, product or service, theactual sales transaction can possibly be concluded on the phone,but at the very least you should be routing enquiries to a callcentre, rep or store for follow up.

After sales and influenceThis is the part where most marketers seem to lose the plot.After the action or sale, the customer is dropped into one of afew black holes called ‘point of sale, accounting, ERP, call centreor CRM systems’, never to be seen or heard from again.

Really valuable and actionable insight is lost if there is nofeedback or integration between your marketing database andyour business systems.

Marketers and advertisers should actively work with and putpressure on IT to get those feedback loops going and measureactual return on investment.

A last note on campaign measurement is to track actions onthe back of referrals, actively measuring the influence and networks of your audience. This can be achieved using encodingand link tracking techniques provided by a platform likeLNQ.in.

Return on (marketing) investmentEveryone talks about ROI, and although the definition is clearand the basic formula is relatively simple, there is no consensusor standard on how to practically measure the actual return,especially across the different media types. Everyone’s got aprojection for the expected ROI of their media based onassumptions about the number of impressions, responses andresponse conversion to sales rates; but how do you actuallyknow whether a specific lead and sale was generated by a specificcreative and media placement?

Enter mobile media, marketing and advertising: If you followthe guidelines above and get your people to capture a cellphonenumber at the point of sale (if it’s not concluded on the mobileor Web platform), and if you can get IT to pass the informationto you, you’ll not only be able to track and measure your mobilemarketing investment, but also get a view of the actual relativeperformance of your traditional media placements. �

Mobile measurement

Marketers and advertisers should actively work

with and put pressure on IT to get those

feedback loops going and measure actual

return on investment.

� Tracking actions and sales is very specific to the objectives of eachcampaign, but all things being equal, if you’ve already addressedthe basics of good exposure, activation and interaction, you’ll beable to track and report on the whole journey from awareness toaction or sale, per user, per creative, per media channel, byaudience segment on a timeline. If you have the right permissionsin place, even according to user location using the networks’Location-Based Services (LBS)

� Typical examples of actions include opt-ins, registrations or profileupdates, content accessed and downloads, competition entries,referrals, enquiries or leads generated and ultimately sales

� Negative actions like opt-outs or complaints should also betracked.

Measurement of actions (short code replies, USSD and mobisites)

� The final aspect of measuring interaction is tracking the actualpage impressions. By linking unique visits to each pageimpression, you’ll know how many people viewed a particularpage and for how long, to effectively gauge the level and quality ofinteractions. Things like bounce rates (number of visitors wholanded on the site and left without any interaction) or exit pagesare dependent on tracking-page level interaction.

Measurement (USSD and mobisites)

As the worlds of technology, media and telecommunicationscollide at a faster rate and with more energy, it iscomforting to see that the mobile phone has now come

of age as a tool that marketers can use, and it is now taking itsplace around the Table of Spend. Which is the right mobile channel to efficiently and cost-effectively reach the consumer who is carrying a mobile phoneof some sort?

Let’s understand and focus on what is available now ratherthan say what might be available in two years’ time.

Areas such as location-based information, either at theBluetooth or network level, are not going to be included as thatis a distinct (and very exciting) segment of the mobile marketwhich has been covered elsewhere.

Let’s start with the easiest segmentation that exists betweenthe various channels on a mobile phone: that which can be usedon standard versus multimedia handsets. Think back to the firstNokia phone; it didn’t have Bluetooth or MMS capabilities. Itsimply offered text and USSD.

USS- what? This is a distinctive type of messaging that isdifferent to SMS, but works on all types of mobile phones –from the simple version 1 Nokia to the latest Blackberry oriPhone. Technically, it stands for Unstructured SupplementaryService Data or as it is known colloquially in the townshipmarket – ‘i-topup’. USSD is what the networks use for airtimetop-ups, balance enquiries and to perform a please-call-merequest. USSD is great in that it works on all handsets, but thebig setback is that, from a brand perspective, the delivery ismonochrome, rendering an almost DOS-like experience to theuser. So, essentially, the trade off is between reach/speed of theservice versus multimedia capabilities. A tough choice, but suchis the world of technology.

From a cost-to-consumer perspective, USSD sessions typicallycost 20c for 20 seconds, although networks do offer premiumrated strings or numbers. Text SMS charges are better understood, with the consumer either paying nothing (if freeSMSes apply) or a premium rate (up to R30, but typically in theR1 to R1.50 range)

So to summarise: with older cellphone models, you canconsider using text and USSD channels for now. The toughquestion is then, which of my customers is using a simpleversion 1 phone, and which are using multimedia phones? Byfinding out and storing this data in different databases you canmake your customer engagements more cost-effective anduseful (you are saving money by not sending multimediamessages to customers who cannot view the content).

If it’s multimedia capabilities and richness of experience thatyou’re after, then it requires that your customer has a multimediaphone that offers: html, MMS, Java and QR codes.

These are attractive as they give full-colour, multimediapossibilities. Once you are assured that the target audience hasthis type of phone (and assuming they know how to use it) thenfrom a brand engagement and marketing perspective, what iscapable on the Internet is now possible from the mobile world.This is the world of html, rich media and true brand-consumerengagement. As bandwidth speeds increase and data chargesdecrease, the collision of technology, media and advertising willtruly take off. The capabilities of the phone, the intelligence ofdata gathering and the personalisation of the medium results ina world of perfect information flow between brand andconsumer.

Currently, the reach of WAP in SA is not 100 per centunderstood, and that coupled with unknown costs (from theconsumer side) as well as slow speeds, is leading to lowconversion rates for brand owners. WAP ultimately will be thechannel of choice for many marketers and its uptake is growing,albeit slowly. �

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

By Chris Rolfe, CEO, Mobilitrix


Channel selection

32

Selecting the best mobilechannel for your brand activity

How to: mobile video

Mobile video: Kajee. To help lower the cost barrier, experts suggest thatmobile video download or distribution costs are subsidisedthrough sponsorships, for example.

“Another major barrier to the uptake of mobile video is thatnot all handsets are equipped to play videos. Digital licensingrights are prohibitive, too,” says Hans Mol, director of MobileMedia, Be-Mobile.

However, there are mobile video portals up and running inSA, including Zoopy and Vodacom’s Player 23 portal (wherefans of Player 23 can download videos). Mo-B is getting readyto launch videos of the best soccer moments in the EnglishPremier League, with rights for distribution in Africa.

For the brand that’s looking to make a mobile video, it’sabout finding a partner who can create video content, specificallyfor phones, and then load it to their mobisite or make it availablefor distribution to the brand’s customers via MMS, for example.The major consideration for the video creator is the size of thevideo (bigger means more expensive for the user to download orto watch on their phone) and also, the variety of handsets thatthe video needs to adapt to for correct display.

Make sure that the user can access the video via MMS orBluetooth as well as watch it on the mobisite. Can they send itto their friends or refer friends to the video on the brand’s website?

CostThe cost of producing a mobile video will vary, depending onthe length of the video, whether it requires much post-productionwork to ready it for viewing, etc. “Relatively speaking, it isn’tany more or less expensive than traditional video productioncosts,” says Kajee.

The returns on mobile video are not going to justify marketingspend, says Cliff Court, chief technology officer, GrapevineInteractive Marketing, at least not for the time being. �

Mobile video is video content that has been producedspecifically for viewing on a cellphone. It also refers tovideos recorded by the user on a cellphone. “Mobile

video appeals to all target markets from young to old and fromhigher to lower LSMs. The most active users, however, are thetech-savvy ones, irrespective of age or income,” says AhmedKajee, managing director, Cellsmart.

Mobile video is powerful when it is used as part of a viralmarketing campaign (eg, sending humorous, branded viral videosto friends) and it is also useful for content producers (radiostations and TV broadcasters) who might offer short snippets ofvideo to consumers for download.

What else can be offered to the consumer in mobile videoformat? Television commercials (formatted for viewing on a cellphone, of course), infomercials, product demos and evenface-to-face video calling as well as video streaming (steady andcontinuous video content, rather than a video that is sent as a file).

“Video streaming is not big yet due to handset capability,broadband availability and mobile network operator backendsupply; plus, video streaming servers are costly. But the potentialis huge,” says Eddie Groenewald, CEO, Multimedia Solutions.

In SA, mobile video download is still in its infancy, primarilybecause of the cost of data. It is expected that once the networkshave realised ROI from the cost of setting up data networks, wewill see a decline in data rates. “Brands will also be able to delivermobile video to consumers at no cost to the consumer throughplatforms such as accessible and secure Bluetooth, mobile TV,MMS and reverse billed (toll free) video calling. All this is stillsome way into the future, but it will invariably happen,” says


How to: social networks

34

Mobile social networking

Says Doug Bewsher, chief marketing officer of mig33, a globalmobile social network, adopting strident marketing goes againstthe very ethos of social networking, and can turn members off. Whatever the brand offers the target consumer by way ofsocial networking and interaction should be at little or no costto the consumer. At the same time, there has to be value in itfor the user.

How to get onto the mobile social network? It’s aboutpartnering with one of the social networks, or with a specialistin the field, to get the right guidance and advice as well as theright creative and messaging. This is assuming, however, that the brand is targeting consumers who are heavy users of social networks.

The cost of running a social networking campaign will vary,depending on the objectives of the campaign, and whether itinvolves a banner ad on the social network (which will thusentail CPC, CPI or CPM costs), or an integrated campaign thatinvolves the creation of an online fan page or profile for thebrand, linked to events, promos, and so on. �

An increasing number of consumers areaccessing social networks, such asFacebook, via their cellphones. They

are also using apps to access instant messagingsite MXit, and micro-blogging site Twitter.

Itsmy.com recently surveyed users andfound that the cellphone is the primary meansof communication for 95 per cent of people inEurope and the US. Forty-two per cent ofthem have not accessed social networks via adesktop PC – they access these platforms viatheir phones.

In September, Facebook announced thatmore than 65 million people actively useFacebook on their cellphones (increasing from20 million in January).

Clearly, the future of social networking ismobile, and brands that use or plan to usesocial networks to get ahead will need to think mobile.

Experts stress that social networks are aboutbuilding communities and sharing similarinterests, and brands that approach them withthe goal of blatant marketing will lose out.

The Grid

Locally, Vodacom is driving the development of The Grid, a mobile

social network that combines social networking with micro-blogging,

media sharing and location-based services in real-time. “It’s about

who owns a latitude or longitude, and what is said about that

entity,” says Vincent Maher, portfolio manager, Social Networking at

Vodacom. “It’s about leaving text, videos, pics, blog posts, reviews

etc at a physical location on a map, and leaving it there for other

people to discover.” This interaction is at low cost to the user, since

access to The Grid is free (they only pay for the data usage to

access it from their cellphone).

Eighty per cent of users access The Grid via Java (available on most

cellphones, and a further 10 per cent access it via the mobisite,

says Maher. The remaining 10 per cent is made up of desktop

users. This is primarily a youth platform, but not strictly so. Users

are not bound by their physical geographic boundaries, and top

users are in about 230 locations each month.

For brands, stores, restaurants etc, The Grid holds great potential as

an advertising platform that uses location and proximity to target

users. For example, the Rivonia branch of a store chain might post

a message on The Grid, offering users that live in the area a

discount voucher. Or perhaps a brand will use The Grid to launch a

competition, which requires users to participate in a ‘treasure hunt’,

visiting specific locations to interact with the brand and to gather

more clues in an effort to win the prize.

Resources

Visit www.marketingmix.co.za, to find the mobilemarketing resource guide.


36

Research 10

Market research trends: A comment from theSouthern African Marketing Research Association (SAMRA)

The market research industry is continually evolving,changing and being re-evaluated based on advances intechnology and changes in people’s attitudes and beliefs

as well as perceptions. In addition, 2009 is proving to be ataxing year for many industries (including research) as theeconomic climate continues to have an effect on clients’budgets. To deal with such issues it is vital for market researchhouses to reassess their approach and use the changinglandscape to their advantage by adapting to and benefitingfrom new trends in the market place.

What do some of these trends involve?According to Leonie Vorster, outgoing chair of SAMRA, thereis a new focus on professionalism within the industry. “Asclients’ budgets shrink it is becoming increasingly vital formarket researchers to offer a personalised and professionalservice in order to gain and maintain a positive relationship withthe client which helps to ensure repeat business.” In addition tothis increased focus on professionalism, Vorster points out thatnew international ethical and professional standards have alsorecently been finalised for out-of-home market research.

Niel Victor, outgoing SAMRA chairman, says,“Internationally, we have seen continued market consolidation.Increased pressure on fixed costs and overheads has resulted inmany companies outsourcing certain work. This in turn has

created a shift in the industry towards niche or specialistresearch consultancies in an attempt to fill this need.”

“An obvious trend, and one we are seeing more and moreoften, is the increased emphasis on return on investment.Companies want to be able to see where every cent is going andwhether that spend is translating into sales for the company. As such, you will see procurement departments increase inimportance, along with spend on cost analysts. Locally, we willcontinue to see the increased pressure on top companies totransform in terms of BBBEE as well as increased pressure tobecome more socially responsible.”

According to Salomé Barnard, SAMRA incoming chair,“Although there will be continuous pressure on researchcompanies to provide research results faster and cheaper, userswill still insist on superior quality expecting more value fortheir rand. Researchers will have to be more creative in order todevelop new innovative ways of providing clients with marketintelligence.”

A final word from Victor is that “Innovative thinking, cleverstrategy and the need to identify key opportunities are essential forany company wanting to survive the economic downturn. Trendsneed to be identified and analysed constantly in order to stay at theforefront of what is happening and what we can expect to happenin the near future. Research in this instance is vital, informingcompanies about trends both locally and internationally.” �

Implicit association measurementImplicit Association Measurement offers a deeper understandingof the ideas conveyed by marketing campaigns or the networkof associations that make up a brand’s equity. In other words,

Neuroscience is a topic of huge importance and interest tomarketers and researchers. Partly because it’s justinteresting, partly because it’s sexy, but mainly because

it’s by understanding consumers better that we can create moreattractive brands and stronger ads, especially in these difficulttimes. Given the hype and how easy it is to be swayed by theaura of science and lab-coats, neuroscience, like any new technique,needs to be held up to scrutiny – we have to look past the labcoats and fancy equipment and ask some hard questions or werisk getting carried away. I have identified three methodologiesfrom the myriad which have real application for marketers.

To really be useful for marketers it’s clear that neuroscienceneeds to be combined with existing explicit tools such asqualitative or survey-based research to deliver real insights.Given this, the techniques which may find the widest market inthe near term would include:

EEG (brainwave measurement)By understanding the moment-by-moment response to brandcommunications and experiences, EEGs can offer powerfulinsight into transient or unspoken responses to ideas orelements of advertising creative.

The future for neuroscience in consumer research

Research 10

people respond in the way they do to marketing campaigns.We have found that the eye tracking studies have already

given additional insights into marketing decisions, ultimatelyinfluencing the creative outcome with regard to advertisementlayout and copy. However, the results reaffirm that only whencombined with validated, explicit measures, can these techniquesprovide a holistic view of both brand and advertising potential.

Biometrics and neuroscience are powerful additions to theresearcher’s toolkit – it is clear that there are real additionalinsights that can be provided by these techniques. Thesemethods offer new and deeper understanding over the traditionalmethods and herald a new era for market research. I see thetechniques becoming more mainstream in SA in the future asthe new technology has reduced the costs for some of thesemethods, making them more feasible.

We expect that by integrating these methods, we will be ableto deliver deeper insights into brands and their emotional power,and more understanding into the unconscious drivers of goodadvertising and what really catches people’s eye in ads.Ultimately, this will help marketers to gain a better understandingof why people respond the way they do to marketingcampaigns. Collectively, we hope this will allow our clients tobuild stronger brands and campaigns. �

understanding the clouds of associations and ‘gut-level’emotional responses generated by brands and ads. This methodis derived from cognitive psychology used in conjunction withexplicit survey-based methods.

The science doesn’t point to our unconscious dominating us– but it does say that there are processes that affect our reactionto brands and ads which people may find hard to articulate orbe introspect about.

Eye-trackingEye-tracking offers a powerful diagnostic insight on the focusof visual attention during interaction with an advertisement. Itis a measure of this attention at any given moment, which ishelpful in understanding why people have responded in aparticular way to an ad, enabling us to understand where thefocus of attention lies.

In eye-tracking studies, the data is analysed to show the orderin which readers generally view different elements of thecreative. This approach is not just useful for print, but also fordynamic stimuli such as video, helping to understand if theviewer’s focus is on key creative elements crucial forcommunication, comprehension or branding. It then gives us adiagnosis pinpointing visual attention, and so helps us tounderstand how people flow through an ad, and why theyrespond as they do. As such it illustrates creative issues whichmay be driving or hampering success.

Eye-tracking results thus deliver deeper insights into brandsand their emotional power, giving more detail on what reallycatches the eye in ads, and so a better understanding of why

Charles Foster

managing director, Millward Brown

(011) 202 7000

[email protected]


38

Mobile research

Research 10

There are several compelling reasons to engage in mobileresearch, be it for fieldworker or respondent-administeredsurveys.

Cellphones are ubiquitous

The potential benefits of this simple fact manifest in a numberof ways, depending on the scenario:� It allows organisations to equip fieldworkers and/or respondents

with low-cost handsets leveraging the ‘cellphone literacy’most people have acquired rather than expensive units whichrequire extensive training and support

� It allows the possibility of respondents and fieldworkers tomake use of their own handsets, thereby removing capitalcosts almost completely. Some caution should be exercisedhere: depending on the technology used, some configurationand support may still be necessary and standardising handsetsmay be a valid expense

� It provides access to notoriously inaccessible groups such aslow income or younger populations either directly via theirmobile phones, via someone in their peer group with acompatible phone or via a fieldworker.

Cellphones are personal

Mobile research for respondent-administered surveys facilitateshighly targeted campaigns because respondents can be identifiedand accessed by their mobile number. They can also be reachedfar more easily and quickly than via e-mail and post. Thisenables a respondent’s perceptions to be captured much closerto the point of engagement (a store purchase, for example).

Furthermore, because people carry their phones with them,they can provide feedback from wherever they are. In additionto standard survey responses, using the multimedia capabilitiesof the phone, they can also provide images, audio, video andlocation information.

Cellphones are dominant

Cellphones are becoming increasingly powerful with rich mediaand impressive processing capabilities. Phone features, such ascameras, voice recorders and GPS, open up opportunities whicharen’t possible with traditional media.

In most cases, mobile research is best suited to quantitativemethods due to the limited screen size and input mode. If thereis value in receiving responses rapidly, reaching respondentsduring specific interactions or at specific locations, mobileresearch can provide tremendous benefit. The mobile researchmode is particularly applicable in engaging with the youth.

Some good examples of usage scenarios include: � Replacing paper-based surveys conducted by mobile

fieldworkers� Mystery guest/shopping � Opinion surveys during or immediately after live events � Customer-initiated surveys (for example, airports,

restaurants, waiting rooms). These are often initiated viashort codes or QR codes

� Mobile panels (self-administered or peer-administered)particularly where the target demographic has good mobilepenetration rates but poor Internet access

� Ethnographic studies where a respondent maintains a diary ofactivity, thoughts, etc. Using the multimedia capabilitiescommonplace on many phones, qualitative research can beconducted as well (audio, video, images that can providecontext not available during focus groups or face-to-faceinterviews).

There are several technologies which can be considered: � Voice: a viable data collection method, particularly when

making use of automated tools such as Interactive VoiceResponse (IVR ) and Computer Assisted Telephoneinterviews (CATI)

� SMS: suitable in studies where the amount of data to becollected is limited (no more than five or 10 fields in general)

� USSD: By dialling a pre-defined USSD string or code, therespondent accesses text-based menus and engages in aconversational exchange

� MMS: rich media such as images and audio can beattached to normal text messages

� WAP (wireless application protocol, mobile Web): Web-based forms designed specifically for access via a mobilebrowser. Invitations to participate are generally sent viaSMS or a WAP push which contains a link to the survey

� Mobile application: Download purpose-built datacollection application or use appropriate existing client,such as instant messaging.

It is important to consider several key characteristics in order tounderstand the advantages and challenges of each technology:� Unstructured vs. structured formats – affects usability and

accuracy� Internet vs. point-to-point transmission – affects how easily

a campaign can be rolled out internationally � Time-based versus content-based billing – affects usage

costs� Rich media vs. plain text, for both the user interface and the

type of data to be collected � Offline vs. online collection – the latter requires a stable

connection to the mobile network for the duration of thedata collection process

� Universal vs. non-universal handset support – whatpercentage of handsets are compatible. �

Andi Friedman

managing director, Clyral Digital Solutions

0861 259725

[email protected]

Research 10

39

Eye tracking – what does it all mean?

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

Qualify the eyeThere is a great deal that the human eye can show us. Oneimportant thing that it cannot do, however, is speak. Eye trackingis by no means a substitute for a good qualitative interview.When eye tracking and interviews are incorporated into a hybridresearch design, the quality of both components is improved.

One approach is to allow the participants to interact with thetesting material without interruption. Once the interaction iscomplete, a video of their eye movements during testing isshown. As the participant watches their own visual behaviourfrom the testing session, they can recall first impressions, points ofconfusion, positive features and other details that may otherwisehave been absorbed into more generalised recollections.

Quantify the behaviourResearchers must quantify the behaviour of participants andmust incorporate qualitative feedback into the analysis. It isrecommended that the researcher incorporate other data such asWeb usability measures and questionnaire responses. There aredifferent types of hardware to choose from, including remoteand headset models. There are multitudes of stimulus presentationmethods, performance metrics, graphic rendering tools andanalysis plans that must all be carefully scrutinised to determinethe correct path for your study.

The key to applying it practically lies in the training and toolsof the researcher. �

There is no doubt that the eye-tracking revolution hasbegun. Recent advances in hardware have improved theflexibility of eye-tracking systems and new software has

eased the process of data collection. Eye tracking can be used to determine if consumers pay

attention to a particular marketing message, and can separateout the effect that memory plays on such things as brandawareness, knowledge and image. But perhaps most importantly,eye tracking not only tells us if consumers look at a particularadvertisement, but how they look at it.

Eye tracking has a myriad of potential applications from theTV screen to the grocery shelf. However, for many, initialattempts to put eye tracking into practice have been less thansatisfactory; data can be confusing and findings can seeminconclusive.

Standard eye-tracking analysis software, which generates littlemore than a heat map of visual attention and some simpleviewing percentages, demonstrates a problem of style oversubstance. Sure, the heat map possesses a great deal of ‘wow!’value, but what can it really tell us about specific researchquestions? How does this tool get us any closer to understandingour potential customers? These are reasonable concerns. Butbefore researchers transform their eye trackers into high-techpaperweights, it’s worth taking a step back and considering themethods. A meaningful interpretation of eye-tracking datarequires a specialised course of analysis.

There is no simple answerA heat map is one of many useful ways to illustrate trends, but itshould only be used to complement more descriptive assessments.The movements of the eyes are part of an intricate system thatcannot be fully explained through simple analyses. This doesnot mean that the conclusions will be complicated. In order todraw insightful conclusions, our methods of analysis must delvedeeper into the user experience. Quantitative and qualitativeresources must be used together to establish a closer connectionto the consciousness of the consumer.

Quantify the consumerA quantitative interpretation of eye-tracking data requires aworking knowledge of statistical analysis and a full understandingof the many ways that eye data can be scrutinised. Afterdesigning a sound research study and running participants, thereal fun starts. Most of the basic analysis software provides theoption of examining the percentage of visual attention allocatedto specific areas of interest. When used correctly, this is apowerful tool for demonstrating which features are seen andwhich ones are not.

However, marketing research questions are rarely limited to asimple query about percentages. Marketers want to know whythe consumer looked at an ad, and how, etc. You cannot under-estimate the value of thin slices in building accurate interpretationsof eye data. By dissecting the testing sessions into second-by-second behaviours, a variety of new questions can be answered:What is the first thing that draws attention? How carefully istext considered? Which features are seen last? Which featuresare revisited? A quantitative analysis of eye tracking shouldaggregate these microfindings to clarify the more globalconclusions demonstrated by overall percentages of attention.

Lindiwe Matlali

managing director, Prompt Research Insights

(011) 575 6853

[email protected]



40

Online research

(http://www.esomar.org/uploads/pdf/ESOMAR_Codes&Guideline-Conducting_research_using_Internet.pdf)

Secondly, at the respondent level ensuring data quality andrespondent honesty is another concern. Measures like ‘datatraps’, control questions and ‘digital fingerprinting’ are amongthe ways in which this has been dealt with. This is somethingresearch buyers need to discuss with their suppliers.

Thirdly, surveys have become more engaging and adapted tothe online medium, thus preventing high dropout rates.

The main concern among prospective online research buyersin SA is sample representativeness. In cases where a significantproportion of the target market does not have Internet access,online research is unlikely to deliver an acceptable sample. Thisis less problematic when researching affluent consumer groups.

Other concerns include not knowing the true identity ofrespondents, security concerns in presenting confidentialmaterials online and a general concern that lower cost meanslower quality. Advances made internationally see these concernsbeing addressed effectively.

Online research can be successfully integrated with otherforms of research: a quick online survey or online focus groupcould guide the design of a bigger face-to-face or telephonicproject. Online research can also augment traditional researchby providing access to hard-to-reach segments that preferparticipating in research on their own terms.

The rise of broadband Internet access, the increase inreputable companies offering online research and onlinesamples, the recent diversity in online methods and applications,and the more welcoming attitude of the research industryshould see online research in SA grow. �

Research 10

Henk Pretorius

director, Columninate

082 417 3207

[email protected]

Online marketing research has traditionally beenconducted by means of online and e-mail surveys, butthere are other forms, including focus groups, bulletin

boards, chat and discussion rooms, and online researchcommunities. Plus, new online research methods are beingfashioned from Web 2.0 developments that see researchersusing blog research, online research communities and otherinteractive methods. These are making research more engagingand collaborative than anything that came before.

Online research has been the fastest growing sector ofresearch the world over for the past decade, but it’s still in itsinfancy in South Africa. Estimates from Inside Research revealthat one third of all data collection in the US was conductedonline in 2006, with online research spend growing fromUS$253 million in 2000 to over $1 400 million in 2006.

The good news is that online research can address a widevariety of topics. According to Inside Research, in 2006 themost common applications for online research in Europe werein the arenas of concept/product testing and customersatisfaction followed by advertising/brand tracking and usageand attitude studies. To this partial list could be added thenumerous other applications for which online research worksparticularly well, including employee studies, website andonline marketing evaluation, copy testing, visual design testing,business-to-business studies and numerous bespoke studies.

The benefits of online research include:� Cost – estimates show that online research can be four times

cheaper than face-to-face or telephonic research modes� Speed – shorter turnaround time on data collection� Quality – online research removes the ‘social desirability

bias’ due to the presence of an interviewer, which meansmore candid and honest responses

� Accuracy in presenting complex materials – video, soundand images are easily presented for evaluation in onlineresearch

� Ease of gathering data across vast geographic areas –participants can contribute at any time, anywhere as long asthey have Internet access

� Collection of paradata – data can be collected on issues suchas the length of time people take to complete a question orthe survey as a whole, for example

� Adaptive surveys – the survey ‘logic’ is built in when thesurvey is programmed ensuring that the right people answerthe right questions at the right time

� ‘Green research’/environmental sustainability – onlineresearch does not require printing of paper questionnaires orextensive travelling

� Richer open-ended responses.

The quality and integrity of online research has received a lotof deserved attention. Firstly, the availability of diverse andhigh-quality sample sources. In response to the internationaladoption of online methods, ESOMAR (the world organisationfor enabling better research into markets, consumers andsocieties) released a checklist of 25 questions it suggests researchbuyers should ask of any online panel sample source they planto use

Research 10

41

What’s in a name?It is important to note the LSM Extensions are not, in fact, ‘newLSMs’. SAARF has split the groups, not changed their cut-offs;if they had introduced new cut-offs, we’d be back to the situa-tion experienced in 2001, when the introduction of theUniversal LSM scale created a new starting point for trending.Since LSM 7 Low and 7 High combined is identical to LSM 7,and so forth, one can still trend LSM data over previous years.

This is why SAARF has not renamed the eight extensionsLSM 7 through 14. We do not want a situation where theindustry talks at cross-purposes: where, for example, a mass-market marketer calls the top end ‘LSM 10’, while themarketer who routinely uses the LSM Extensions would think‘LSM 10’ referred to LSM 8 High.

And when trending, how much simpler is it to add together LSM8 Low and High to get the ‘old’ LSM 8, than to remember that the‘old’ LSM 8 is the combination of LSM 9 and 10 in a 1-14 scale?

The codes for the LSM splits can be found on softwareproviding AMPS data as ‘LSM Extensions’. To find the LSMExtensions on the database/software, look under Demographics,Living Standard Measure and then click on LSM Extensions. �

LSM extensions give industry bettermarket insightO

ver the years, as SA society has developed, so too hasthe SAARF Living Standards Measure (LSM). Thismuch-used segmentation tool has changed several times

since its inception in the late ‘80s to ensure it accurately reflectslocal markets. The latest change sees the upper LSMs being splitinto sub-groups for finer target marketing.

Ever-increasing interest in the upper end of the SA market,coupled with strong competition, has made it increasinglyimportant for marketers to be able to look at the uppersegments of society in more detail.

SAARF has therefore introduced the LSM Extensions fromAMPS 2008A onwards. Each of the top four LSM groups hasbeen split into two roughly equal groups, creating a ‘Low’ and a‘High’ measure: LSM 7 Low and High, LSM 8 Low and High,and so on.

Using the LSM Extensions, the industry can more finelydefine its target markets for products aimed at those with ahigh living standard. Suitable media can then be selected toreach these Low and High LSM categories.

Markets in greater detailBy analysing a market using the High and Low LSMs, manyfiner differences will emerge, particularly in LSM 10.

According to AMPS 2008B, in LSM 10, just over 63 per centof people own a tumble dryer. If you’re selling tumble dryers,you’d be better equipped knowing that in LSM 10 Low, 50 percent of people have dryers, compared to justunder 80 per cent of LSM 10 Highs. Whenit comes to dishwashers, 20 per cent ofLSM 10 Lows have one, substantially fewerthan in LSM 10 High where 50 per cent ofpeople have one.

There are many other examples of how the LSM Extensions give a clearerunderstanding of the top end of themarket.

In LSM 9 Low, just over 23 per cent ofhouseholds have a monthly income of overR20 000 per month, compared to 37 percent of LSM 9 High households.

Two out of 10 LSM 10 Lows travelledlocally by air in the past 12 months. InLSM 10 High, three out of 10 flew.

The LSM Extensions are also invaluablefor media planning, highlighting intra-groupdifferences in media consumption. While44 per cent of people in LSM 10 Low usethe Internet on a weekly basis, about 54 percent of LSM 10 High are online each week.In LSM 7 Low, 44 per cent of people readan AMPS-measured daily newspaper. InLSM 7 High, you’ll find over half of thisgroup reads a daily.

The LSM Extensions allow for finertarget marketing in the upper LSMs, as thisgraph for weekly consumption of wineshows (Source: SAARF AMPS 2008B)

Top tips: youth marketing and research (The Insight Team, HDI YouthMarketeers)

Age-appropriateness: Understand that kids operate very differently from teens who are distinctly

different from 20-somethings – design your research process to pitch at the specific age group

Environment: Conduct research in an environment where children feel at ease, so they’ll be

more likely to open up and be insightful

Meet children at their level: It is important to see things from their perspective but do not

patronise them. Be upfront about what the research objective is and explain their role in it

Honest: Emphasise that the ‘research process’ is not a test where answers are either right or

wrong. Encourage them to be honest and communicate their ideas

Validity: Reassure them that their opinions are valid and encourage them to volunteer

information even if it is different from that of their friends

Don’t put words in their mouth: Give them a platform to express themselves and listen to

what they have to say. After all, your ‘expert brand opinion’ is not necessarily in line with their

opinion

Structure: Make sure that you have a clear grasp of the research objective so that you are in

a position to steer the research process effectively. Involving youth in research can invoke high

levels of excitement on their part and you need to make sure that their excitement levels don’t

compromise the process

Participant fatigue: Young people (particularly kids) have short attention spans and the

research process must accommodate this in order to maintain interest

Engage them: Kids respond well to visual stimuli; images and props can enhance the quality

of their responses

Astute consumers: Young urbanites have grown up in a brand-saturated environment so

they’ve developed sophisticated consumer expectations. The challenge is to meet their

demands and excite and entertain them.

Paul Haupt

CEO, SAARF

(011) 463 5340

[email protected]



42 Choose the right partnerMany blue-chip companies are planning to increase theirinvestment in shopper marketing and shopper researchcompanies are springing up in response to the hunger for thisdata. There are many reliable and effective shopper researchmethodologies available to the researcher that in the right handscan yield hugely valuable information. The good news is that theprice barrier to the use of many of these methodologies is not ashigh as one would think. The other good news is that theinvestment invariably pays for itself through the increased salesthat are realised from practical learnings.

But data in itself is not enough. If shopper insight is to drive new product development, packaging, marketing andmerchandising – as it must – it’s necessary to demand not tablesof data but practical, actionable insights.

The rewards for those businesses that can rise to thesechallenges are significant. For retailers, shopper strategy ensuresimproved use of the estate through better flow control, storelayout and adjacencies, merchandising that influences shopperchoice, more effective range planning and persuasive in-storemarketing.

For brands, shopper strategy revolutionises new productdevelopment, marketing and pack design as products are created with the decision-makers in mind. Shopperunderstanding results in in-store activation that works, withprice points and promotions aligned with the shopper’s needsand wants. It enables a genuinely innovative approach tobusiness management. �

Research 10

Understanding the shopper aswell as the consumer

Peter Wilson

Business manager: Retail and Shopper Research, TNS Research

Surveys

(021) 657 9500

[email protected]

Across the world, some nine out of 10 new products failwithin their first year. This startling statistic clearlydemonstrates that the traditional method of bringing

products to market is woefully inadequate. So what is going wrong?Brand managers have always aimed to understand and influence

their consumers, seeking strong brand equity and belief in theirproducts. However, power in the marketplace ultimately comesfrom the shopper – and synergy between consumer strategy andshopper strategy is the key to greater success.

This is because there are three main touch points for brands.The first touch point is the experience – the point of consumption– and the second is the consumer’s mental image of the product. Both of these usually involve consumers away from the store. The third touch point, which until recently hasoften been neglected yet is absolutely critical, is with the shopperin the store.

The needs of shoppers and consumers are fundamentallydifferent. Moreover, the influence of mass advertising isdwindling in the face of increasing media fragmentation andshoppers constitute an important audience.

In-store activity is crucial for success in the quest to buildbrands through the line. To compete successfully, we need tounderstand how shoppers use the store.

Don’t just listen to your customers – watch them too!The mistake many brands make is to use traditional research toask shoppers what they think, and to stop at that. But customersare unreliable witnesses who may post-rationalise – or provide the answer that they believe is expected of them.Even if they don’t, they will not be able to describe their in-storebehaviour because 80 per cent of in-store decision-making issubconscious.

To understand shoppers, it is necessary to observe themshopping, using objective methodologies such as filming andeye-tracking. Traditional research methodologies need to becoupled with a measure of actual in-store behaviour.True eye-tracking – as opposed to field of vision recording –enables every single eye fixation of every individual shopper tobe recorded and analysed. A fixation is the point at which thebrain registers a piece of visual information. So in contrast tomerely recording what was in front of shoppers, it measuresprecisely what attracts each one and which elements are beingused at what stage in the decision-making process.

One of the very latest shopper research methodologiescombines eye-tracking and electroencephalography (EEG ),which measures the brain’s electrical activity via electrodesplaced on the scalp. Combined with respiration, heart rate,temperature and head motion measurements, this capturesshoppers’ emotional and cognitive responses. Another areawhich has enjoyed a lot of focus by shopper researchers recentlyhas been virtual reality research, which offers researchers theopportunity to conduct shopper research without having to doso in the actual store environment (the virtual store environmentscreated nowadays are as realistic as ever!)


Research 10

43

A typical weekend in the townships basically includesdrinking, getting arrested and doing laundry. Is that all thatblack people do? Is that why we see more alcohol and laundrypowder ads in the townships?

Unbeknown to marketers, that is not all that happens in thetownships. For example, soccer is no longer the only entertainment.Freestyle street dancing has made major inroads among girls andboys aged 11to 18 years old in LSM 4-7. Others kids areinvolved in choirs, violin groups and hip-hop street battles. Yet,most of the ads targeted at township kids are about soccer.

In the streets, the credentials of marketing and research companiesdon’t matter. So they can’t approach the likes of taxi driverswith the attitude that they are respectable companies. It is aboutrelationships and being present even when there is no brief.

The skill of research in the townships

Lebo Motshegoa

managing director, Foshizi

(011) 463 7792

[email protected]

First, marketers have to accept that Soweto is not the onlytownship. As versatile as the demographic make-up ofSoweto is, it does not speak for all black consumers in SA.

The mere fact that Black Label beer is called ‘Zamalek’ inJo’burg and ‘10111’ in the Eastern Cape is an example that thetownships are not the same. So we should stop fooling clientsthat the research that was conducted in Gauteng is supposedly areflection of Mzansi.

That brings me to my next point: townships are not the same.There are struggling townships, emerging townships andemerged townships. Therefore, townships as a market havedifferent social classes and consumer market segments, eachwith distinct traits and characteristics. If one intends making abusiness investment in this area, they must be aware of this.This changes perspectives in terms of how one prioritisesbusiness and approaches these markets.

In all these townships, you will find people – not respondents.If we are going to change this country, marketers andresearchers cannot base their opinions about this market on atwo-day immersion.

Top tips: Online research

Adam Rosenberg, head of Technology & Development, KLA Research

You cannot access everyone using online research: The typical online user is LSM

7-10; living in one of the major metropolitan areas; between the ages of 20 and 60.

According to AMPS 2008, 49.7 per cent of all people who have accessed the

Internet in the past seven days falls into this category.

Internet users are not the same as non-users: Research conducted in 2009 by KLA

shows that Internet users are typically more open-minded, experimental and engaged

in the wider world. They are exposed to more varied sources of information and

media and are better informed and more discerning.

Online research is more suited to quantitative studies than to qualitative studies: The nature of the

online interface and typical online interactions means that it’s often more practical to get snapshot

measurements from respondents rather than insightful comments.

Online research is quicker than traditional market research methodologies: The target sample can be

achieved in a shorter time simply because there is no ‘field work’ limitation to accessing respondents

concurrently.

Online research can be cheaper than traditional market research methodologies: There may be some

restrictions in terms of minimum sample size but generally speaking, online research

should be cheaper than other methodologies, allowing access to larger more robust

samples.

The Internet is ‘on’ 24 hours a day, seven days a week: Online surveys are

accessible at any time of the day or night and can be completed at the convenience

of the respondent.

Online surveys are only a part of the research process: surveys need to be

constructed according to objectives and data requires analysis and insight in order to

turn it into something actionable.


44

7 day [B]itch

Cheryl Cookegroup executive: Corporate Marketing Services,Ellerine Holdings Limited (EHL)

Thank heavens for

Blackberry!

27/08/ 2009

Visit new Woodhill Wetherlys store inPretoria. Customers had fun shoppingand we were pleased to learn that saleswise it was the best store opening ever.Wow! View year-end campaigns: This isthe busiest quarter by far for all 1 100 storesin SA and neighbouring countries. Makeor break time for the brands. Meetingswith printers: emphasis on reduce, reuse,recycle, reinvent. We have some interestingideas for protecting the environment.

28/08/ 2009

Breakfast at Tasha’s in Sandton, home ofthe best Belgian chocolate cake in Jozi.Then interview an extremely talentedindividual – amazing how few and farbetween true retail marketers are. EHLand brands are in an exciting new phaseof stabilisation, growth and building. Goodenough reason to celebrate the openingof the new corporate HQ in Marlboro.First achievement award, Wings ofHope, presented to our inspirationalCEO. Employees almost stopped thetraffic on the M1 North as they bopped on the roof garden in their pinkfeathered wings to the sounds of rockband Prime Circle. Event organised in-house and I say quietly, “I knew mystaff would rise to the occasion … evenwithout wings.” And, now I’m only 5kmfrom home – much less traffic to dealwith. Yippee!

29/08/2009

Invited to Coca-Cola Park to watchrugby – Lions vs Blue Bulls. (First time ina box – rather than out). Disappointingscore-board – playing for SA appearscostly to some of the provincial sides.Mom’s taxi for Connor, who is attendinga Bar Mitzvah, and fill in time with myfriends at a delightful Thai restaurant inCraighall. Seemed like we had only justsat down when pumpkin time arrived.Found a few minutes to put my nose inMeatball Sundae (Seth Godin) and FunkyBusiness Revisited (Kjell Nordström)before going to sleep.

30/08/2009

Connor visits his grandfather so it’s timeto watch a DVD. Fascinated by theVietnam era; I’m in awe at how manylives were lost and how much moneywas spent on a war that couldn’t be won.I wonder if the world will ever embracediversity and spare us the vain attemptsat preserving society as only one oranother culture knows it. I have to admitto being an ardent visitor to the malls(Sandton City, Bluebird andMorningside are favourites) but I don’tmind telling you that many friends havedropped long before I have shopped…and shopped… and shopped! �

24/08/2009

Out of the office last week negotiatingwith suppliers and visiting stores.Important face-to-face – after takingover the reins from the previous GME(here for 17 years). Desk from H$££ butnever mind I’ll get through it… alwaysdo! Weekly muffin meeting with keypersonnel helps keep in touch with ourvastly different retail furniture brands.End of F2009 so it’s BSM (brand strategymeeting) time, with emphasis on biggerand better deals for all our customers.BSM on Ellerines, Town Talk, FurnCity,Savells Fairdeal: great to work withenthusiastic new people at the head ofthese brands. Visit new-look store andI’m impressed – the extra effort has beenworth it. Exco budget review: sterlingjob in containing costs but CEO remindsus that we need optimum value for everyrand spent. Still find it hard to believe thatI’m the first woman on exco in nearly 60years of trading. Fortunately, the guyshaven’t asked me to make their coffee!

25/08/2009

BSM on Wetherlys: premier brand butmore affordable than people think. Visit theold Ellerines head office in Germiston,now transformed into a centre oflearning and excellence. I admire theselfless women who started the project.Took time out with my 13-year-old son,Connor, to register for high-school nextyear. I’m grateful that I can afford thefees. Had to smile – even a privateschool runs late with appointments.Thank heavens for Blackberry!

26/08/2009

African Bank: presentation for the headhonchos. It’s interesting to see howEHL has evolved since becoming a sub-sidiary of African Bank InvestmentsLimited last year. BSM Beares & Lubners:miniature versions of the popular Bearesmascot handed out by staff at hospitalsand homes lend support to sick orabused children. BSM Furniture City:Urban Living celebrity endorsement.


45

what a winner. Usually, cost is low, and Ireally cannot complain about the serviceeither.

Kulula is cool. My Vitality discount of20 per cent helps to reduce costs further.Plus, I usually manage to fly on theirBritish Airways planes, which means thein-flight food includes Woolies snacks.

With British Airways I am able to usemy precious Investec card (I am sobrand loyal to this bank I think it shouldgive me free banking for a year) to gainaccess to the BA lounges – a real bonusif I’m early for my flight. Plus, some-times the cost is lower than that of theabove two airlines.

I recently had to fly Mango as myticket was paid for by a third party. Iarrived at Cape Town InternationalAirport to discover my ticket hadn’tactually been paid for. Within seconds, asupervisor appeared out of nowhere andwith a quick phone call to my colleague,resolved the issue. And guess what – Ihad more than enough legroom on theplane and the staff were really pleasant!

Talking about air miles programmes, Ionce again cite Investec’s incredibleDividends programme; I don’t flyenough internationally to amass miles,but by cashing in my points I haveenough miles to qualify for first-classtickets on BA flights. And now theyhave a website that will exchange mypoints for any airline miles.

Needing to go to the UK inSeptember, I tried to book my triponline but got horribly stuck. I calledBA Executive Club, and the PatientSaint of Call Centres made sure that halfan hour later (poor guy), I had what Ineeded. Of course a week later I neededto change the trip slightly, and a differentPatient Saint answered my call andproved equally helpful.

Marketers need to evolve once and forall and get into segmentation and deepercustomer understanding in order to turntheir offerings around and compete in thereal world. More and more the customerhas the last say and engages as they wantto with your brand and no longer howyou think they wants to. �

Customer-centricity:the new buzz-word

Nici Stathacopoulos

head of Retail/WFS Integration and

Rewards Project, Woolworths

[email protected]

Expert opinion

Irecently read an article that debatedwhether organisations should adopt acustomer-centric model, and I must

admit to sitting back in shock. I’mamazed that companies continue todebate this issue. It seems directmarketing is the new pink, with moreand more ad agencies embracing this‘new’ thinking of 1-2-1 marketing.

A customer-centric business tries tofind as many products and services aspossible for the customer. It createssolutions and experiences for itscustomers. As the market continues tobecome more fragmented and businessesdevelop deeper relationships with theircustomers (using, among other tools,social media) – it can only be aboutpeople and understanding what drivestheir purchasing behaviour. Technicalexpertise needs to be in the mix forsurvival when all others are getting onboard with this.

CRM starts in the CEO’s office andonce it is adopted as a board strategy, therest of the business will embrace it. Untilsuch time, the customer and their needsare often treated in an off-hand annoyingmanner. A customer–centric approachand customer service are inter-linked andwhile the one should not be mixed withthe other, organisations that are leadersin both are the most successful.

I’m known for my acerbic brandcommentary, and I’ve decided to incorporatethese commentaries – based on myrecent encounters with brands – into mycolumn. You’ll notice a trend emerging:it’s my experience with these brands thatmakes or breaks my affinity to them.

I travel locally – far too much for myown sanity – to visit family and friends.My search begins almost every twoweeks for the cheapest flight at the mostsuitable time. I can’t be brand loyal inthis case; these brands are all customercentric! These brands are all great examplesof how they differentiate themselvesbeyond a simple points programme.

1time always flies on time, and you cannow go to the self-service kiosk to book.Their Cape Town to Durban flight isspeedier than that of the other airlines –


FIFA Confederations Cup 2009:who scored and who missed?

46

Expert opinion

that were missed completely. One such misscame from The ‘McDonalds’ fan dancers –a half-time campaign which was poorlyexecuted. The dancers were uninspiringlydressed; they failed to engage with thecrowd; and danced in a small corner of thefield. Absolutely no excitement was createdaround this unimaginative activation.

The second missed opportunity was theFIFA sponsor/associate fan zones at thestadiums, which proved to be little different,creative or memorable. I sincerely hopethat sponsors will go back to the drawingboard and rethink their approach to theseelements and look to engage with the fansmore aggressively.

One such way to engage with potentialand current consumers is by addressing andcatering to a need. For example, the needthat was exposed during the competitionwas the ‘park & ride’ initiative. To win theMan of the Match award, perhaps one ofthe FIFA partners could have run acampaign similar to the Outsurancepointsmen programme, to smooth outtransportation systems. Another need waswarmth, as the South African fans bravedthe freezing winter weather. What afantastic opportunity to engage with fansby serving free coffee or handing outbranded beanies and scarves.

Overall, however, the post-matchsentiment is one of pride and joy as afantastically successful tournament washosted in our magnificent country. Withthe 2010 FIFA World Cup less than 300 daysaway, it will be fascinating to see which brandswill create a successful formation, move theball around effectively and ultimately MakeSport Count! Bring on 2010! �

Neil Jankelowitz

MD, MSC Sports

The first half of our match has comeand gone and by all accounts SAstaged a unique, thrilling and

professional tournament. Entertainingfootball introduced the world to the sightsand sounds of our Rainbow Nation, leavinga great sense of pride among our people.The cities of Johannesburg, Pretoria,Bloemfontein and Rustenburg were takenby storm as the world’s top teams foughtfor the coveted Trophy.

On the sports marketing front thequestion remains: who belted the ball intothe back of the net and who missed thetarget completely? In my opinion, the firstgoal comes from Sony with its aggressiveabove-the-line campaign using Brazil andnow Real Madrid maestro, ‘Kaka’, as itsking pin. The comparison between playerand product with regards to its product’sclarity and precision was apt, and no doubtachieved the goal of securing top of mindawareness for the Bravia.

The second brand to score was powerhouse McDonalds. The fast-foodbrand made superb use of Bafana Bafanastar Teko Modise as ambassador for itsplayer escort programme. The execution ofthe through-the-line campaign securedbrand awareness as well as engagement withthe brand’s direct target market, which isalways the most valuable tool in marketingand one few brands manage to achieveeffectively. These examples highlight thepower of using a suitable brand ambassadorto capture the consumer’s mindshare andengage with the relevant market in anexceptionally competitive and cluttered space.

Taking us 3 – 0 up, was brand favouriteCoca-Cola. An innovative trade andconsumer campaign was promotedaggressively throughout the ConfederationsCup. This campaign was one in which theconsumer was encouraged to purchase a sixpack of Coke and SMS the relevant numberon the pack to stand a chance of winning alimited edition, personally autographednumber 10 jersey. Each jersey was signed bythe world’s great number 10s, includingPele, Maradona, Zidane and the like. This isanother excellent example of how to leverageone’s rights in an innovative and effectivemanner to drive consumer behaviour andmaximise return on investment.

As with all matches, there wereopportunities that went begging, and some

“The post-match sentiment is

one of pride and joy as a

fantastically successful

tournament was hosted in our

magnificent country.”

(011) 646 7340

[email protected]

Danie Petzer

(011) 559 4054

[email protected]

Adele Berndt

(011) 559 5404

[email protected]


48

Measuring the technologyreadiness of consumers

Expert opinion

There are very few activities today thatconsumers engage in that do not involvesome level of interaction with technologyor technological devices. Much has alsobeen said about the role technology playsin augmenting marketing strategy (making itan intrinsic part of marketing communicationthrough SMS and MMS use and areas suchas database management, for example) butmarketers know from experience that sometechnologies work better than others inadding value to their offerings. It’s also truethat some technologies introduced to themarket are adopted in the mainstreamwhile others never take off.

In a developing economy such as SA,cellphone technology has brought aboutexciting opportunities for growth; the cellphone banking solutions that areintroducing the formerly unbanked tofinancial services, for example. Makingtechnology-based products and servicesavailable could typically create advantagesfor consumers and banks or retail stores.

Yet consumers are becoming morefrustrated in dealing with technology-basedproducts and services; in fact, many exhibittechnophobia or technology pessimism.Research out of the UK indicates that 85per cent of cellphone users reported theywere frustrated by the difficulty of gettinga new phone to work. Further, 95 per centsaid they would try more services if thesewere easier to use. It seems that consumersare not equally ‘ready’ to adopt technology-based products.

To measure consumers’ technologyreadiness, Parasuraman (2000) developed ameasure known as the TechnologyReadiness Index (TRI) – the likelihood ofpeople to embrace new technologies foraccomplishing their home and work goals.It has been found that technological readinessis a good predictor of technology-relatedbehaviour. If a marketer knows thetechnology readiness of its consumers, thenit becomes easier to develop a technologystrategy as well as assist in managing thelink between consumer and technology tothe benefit of both parties.

Technology readiness of consumers ismeasured over four dimensions, whichindicate how consumers view technology(optimism); their tendency to be a frontrunner when it comes to new technology

(innovativeness); their perception of theextent of the control they have to give up whenconfronted with technology (discomfort);and, finally, their level of trust in thetechnology working as it should (insecurity).The higher the TRI score realised byconsumers out of a possible five, the moretechnology ready they are.

In research conducted by the University ofJohannesburg’s Department of MarketingManagement, the technology readiness ofurban consumers in Gauteng was measured.Specifically, the research was focused on theadoption of banking-related technologyproducts, and a TRI score of 2.53 wasobtained. In comparison, a similar studyconducted in 2000 in the US realised a TRI scoreof 2.88. The result was expected, indicatingthat consumers in a developed country aremore ready to embrace new technologiesthan those in a developing country.

The following interesting findings were madewith regards to urban consumers in Gauteng:� Ninety six per cent of respondents indicat-

ed that they do have products such as abank accounts, credit cards (55 per cent),cellphones (97 per cent) as well as landlinetelephone access (74 per cent) andInternet access

� There is limited use of cellphone banking(25 per cent), landline telephone banking(14 per cent), SARS eFiling and onlineshopping via banking reward schemes.Consumers, however, do make use ofATM banking (87 per cent), Internetbanking (45 per cent) as well as SMS or e-mail banking notification (49 per cent)

� Younger consumers, who have a greaterability to use and master technologycompared with their older counterparts,realised a significantly higher TRI score.Banks need to target these consumers inorder to generate more users of theirinnovative technologies. Older consumersare effectively limited through a lowerlevel of access and adoption of technology

� Male consumers also realised a higher TRIscore than females

� More formally educated respondents alsohad a significantly higher TRI score thanthose who were less formally educated,indicating that the former will adopt innovativetechnologies which in turn can be passedon to less educated respondents. �

Department of Marketing Management,

University of Johannesburg

Marketing Mix September October 2009

Documents

Transcript of Marketing Mix September October 2009