eMarketing Trends|Verbal Acrobatics & Graphic Gymnastics

It’s the first Journal of Marketing breakfast and Virtuosa once again are here giving live updates through Tweeting and Blogging to bring you all the news firsthand. Moderated by Jeremy Maggs this morning we are talking about Radio and why this medium is still relevant. The panel consists of Lance Rothschild (Media Consultant & Radio Commentator, Opportun(at)e), Norman Gibson – (GM, Radio Advertising Bureau) Omar Essack (Executive Director: Broadcasting, Kagiso Media) Andrew Smythe (GM Radio Sales & Alternative Revenue, SABC, Terry Volkwyn (CEO, Primedia Broadcasting).

Interesting for me is the panels diverse opinion around what role digital should be playing in radio stations. Some seem to be of the opinion that internet access in South Africa is not high enough to warrant really investing into it. I find these opinions surprising. Others on the panel recognise that digital is exploding and see this as an unique opportunity to offer an integrated approach to their listeners. What’s clear is that there is an uncertainty on how best to integrate digital with their offering and how to  manage the communities that are developing around the station and especially the websites.

If you want to read more about what was discussed during this morning session be sure to get your hands on an issue of the next Journal of Marketing.

Dion Chang, Trends Analyst ended of a very interesting morning with his 10 things for 2010.

• Peak experience
  We all have high point  and low points in live. 2008/2009 will be remembered for the financial crisis the world experienced. Brands need to adapt to this changing consumer mindset.
• Shift in value system
  2009 very demanding year that govern a change in our lives which led to a questioning of value system on a very personal level.
• New world order
  Consumers are taking back the power, taking more responsibility over their purchase decisions
• Shift of power
  Move away from power-hungry, greed-based leadership model towards a more ethical and responsible style of leadership
• The female century
  Along with shift of power also a shift from left brain, logical thinking towards a more right brained, intuitive approach
• Social media
  Boundaries such as a race, geography and culture become less important and shared interest matters more
• Tribes
  No longer able to box people in set categories and think that they will react the way you want them to – throwing traditional marketing on its head
• Pick and mix society
  People have freedom to pick and choose products, gadgets, lifestyles etc which has led to multi-coloured spectrum of individuality
• Ambient awareness
  Information overload leads to the development of filter/alerts to help us cope with this
• Empathetic economy
  Civil society demands more ethical traits as we reach a fork in the road concerning our economy

The 2nd last speaker at The Annual was Dr Alan Knot-Craig former Vodacom CEO that discussed issues and possible predictions in relations to the Telecommunication Environment in 2010:

• Mobile operators will reduce some of their tariffs by some 20%. The opportunity will be lower input costs for business and consumers but challenge on the other hand to incentives private investors to continue investing in infrastructure.
• Television broadcast to mobile phones may become reality and impact current pay TV
• Broadband speeds should increase by 50%
• Lower margins will squeeze out competitors
• Vodacom as a brand may disappear and Vodafone will enter the arena

Glen Lomas – CEO, DDB South Africa had a refreshingly different outlook from some of the previous speakers at The Annual. Some of his advise for marketers that are still debating what to do and say around the World Cup:

• Don’t lose your head
  Wonderful to get excited but keep your head especially when it comes to budgets in this economy
• Event fans, not football fans
  Most people watch it as a spectacle, not necessary because they are football fans
• Don’t force football relevance
  If the fit isn’t natural don’t force it – most common error
• Leave a legacy post 2010
  If you just state how excited about the World Cupyou are in your marketing, what are people going to be left with after this? Time is limited and your window of opportunity is small. Be impactful, brief, to the point, know that the attention span of people are limited, use it wisely.
• Own some real estate
  Not everybody is going to the game, use things like rural fan parks, cinemas, radio with relevant sponsorship
• Capture the mood
  People want to have fun, raise the spirits
• Be real, bare your soul
  Nothing worse than to be fake, do one activity that shows your real brand value
• Take everyone you know – not just your clients

Matthew Buckland – General Manager Publishing & Social Media, 24.com had some intersting facts to share not just about 2010 but also the years beyond.

• Media is undergoing a foreign change – technology is shifting power away from the editors, publishers, mass media
• Media is experience competitors from their own readers – citizen journalist
• Media experiencing competitors from non media companies like National Arts Festival, publishing via blog & website
• Idea – All companies on the web is essentially media companies
• Everyon’s a reporter – virally passed along
• Mass media increasingly not the major influence on society it once was
• Rise of individuals and entrepreneurs – open source
• Mobile entering the mainstream
• Most online publishers expect their mobile sites to surpass their traditional sites in the near future

Challenges

• Focus on developing filters and aggregators to deal with information overload
• “Switch off” holidays will be required

Dr Iraj Abedian CEO, Pan-African Investment and Research Services takes a very close view on the economy and what will happen in 2010.

• The end of recession in South Africa
  Credit extension fallen sharply and will reverse in 2010

• Further dollar weakness will mean stronger demand for gold, and general commodity price appreciation
  US dollar is on a one way track

• Continued rand volatility with an appreciated bias
  This complicates business planning and exports
• Increased electricity and water tariffs, and other public utilities, leading to higher cost-push inflation.
  Last 25 years South Africa has underinvested in our public infrastructure and it’s impossible to catch up with that in a year or two

• Expect tariff increases and a lot of political debate around it
• The return of ‘high deficit’ fiscal regime with prospect of rising taxes. However public debt is relatively low, and foreign public debt is relatively small, immunized against Rand volatility

• Fairly stable monetary policy with low interest rates
  Interest rates failing at last

• Rising demand for ‘social delivery’ in the face of public sector’s limited delivery capacity
• The return of macroeconomic policy uncertainty
• Growing focus on economics of income disparities
• 2010 Soccer World Cup will showcase South Africa’s infrastructure resilience

Dr John Ledger – Associate Professor of Energy Studies, University of Johannesburg looks at 2010 as the year of biodiversity and what that means for all of us:

Energy ideas

• After 2010 how are we going to cope with household and business energy needs? Get hold of a solar water heater
• Look at the possibility to invest into a small systems to use sun energy
• You need to convert your lighting to energy efficient lighting
• Wood – use wood burning stoves rather than open burning fires

Environmental ideas

• Respect water and how we use it
• Education is at the basis of everything – need future generations to understand how fragile our planet is
• Support Eco warriors – the people that work tirelessly for the environment
• Johannesburg Zoo – a jewel in this city, support it and likewise establishments

Martin Rosen the MD, Mega Vision Media admits early on that he is actually a retailer at heart and not really a marketer. Martin believes that 2010 is like a big wave approaching South Africa.

• The people that catch the 2010 wave will be innovative, opportunistic and aggressive – ambush marketing will not work. The people that take advantage of the world cup need to come with something really original to be able to stand out.
• Everybody in South Africa will play a role in how the people that visit our country will perceive South Africa. Real opportunity to prove to visitors that we are good host and run a first class show.
  Advertising is all good, the real experience will be in the queue all across the country. In the service levels that people will experience when visiting the country.
• You can’t con people in media anymore- the real tools are so much more powerful than mass media, facebook, linkedin, twitter, myspace. In agencies not big enough shift from traditional spend to the digital arena. Mass media is playing a less important role. Revenue in mass media is gonna dry up.
• Great brands will always exist, people can really compare and talk to other people about services.
• When you look at new toys out there like mobile marketing, ecommerce, social media. There is a real lack of understanding and a shift is needed from traditional marketing spend to digital/ new media tools.

It’s important to use all of the tools to our disposable to ensure that the people who visit our country really get to experience the countries hospitality as this will build a legecy for post 2010.

Lebo Biko – Managing Director, BBDO Consulting identified 5 Marketing Trends and 5 Opportunities looking towards 2010.

5 Marketing Trends and Ideas

• Consumers new value equation from impulse and indulgence to value and simplicity
• Brands will have to redefine and re-articulate their essence
• Business should be marketing: yet marketing is not always business
• Definition of consumer equity will need to take into consideration the intangibles – more on meeting unmet needs
• Giving is the new taking and sharing the new giving

5 Marketing Opportunities for 2010

• The 2010 FIFA World Cup has immense opportunities for both country and brand – build next 1994 moments
• The soccer spectacular will build legacies for brands that are not just external- great opportunity to motivate staff
• Brands that connect with soccer will build a new emotional connection with their existing and potential market
• Accelerate the brand externally towards measurable results, legally – use the 2010 as springboard

Keys to success for 2010 and beyond

• Be prepared for the most unlikely events
• Think the unthinkable
• Focus on value but never forget values
• Have a story to tell
• Be adventures
• Be proactive
• Be revolutionary, incremental changes is backward changes

According to Prof John Simpson (Director, Unilever Institute for Strategic Marketing, UCT) consumers behavior lacks quite considerable from what economist tell us is the current state of the economy. So although there are talks about the recession being almost over consumers don’t experience that, in fact the complete opposite. Specific research on how consumers are experiencing the recession will be important for marketers especially looking to 2010. Specific groups have been identified, looking specifically at LSM 5-10 that is making up 80% of spend:

Strugglers are low on confidence and low on financial flexibility
Struggling to survive which has great bearing on what products and brands they buy. Most of them spent money on food. Highly resourceful to stretch their money – bargain hunters. Low Brand loyalty. Have also influenced culture, can’t share anymore.

Pre-family
Brands are very important to them, all about me and me. Don’t compromise on brand image

Young Family
Being hit very hard, sacrifice a great deal. Going more and more towards house brands. They are developing intense dislike of shopping. Looks at the future rather than today.

Older Black Middle Class
Brand is still important, not going to give up anything, brands are still important. Self image and brand are very important.

Prime Timers
Lifestyle spending money on, and to try and improve on it. Not going to change my lifestyle.