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Journal of Strategic Marketing Newsletter – February 2022

Journal of Strategic Marketing Newsletter – February 2022


We now refer to life pre-2020 as the ‘old normal’. We are, once more, living in ‘normal’ times, and that means living alongside the pandemic. Of course COVID-19 still tosses us around as new variants come about, and has thrust new debates and polarising issues – such as mandatory vaccines – into the mix. Nevertheless, we’ve embraced the agility we have learnt over the past two years in terms of how and where we work, and how or where we consume – be it media, food or information.

Life, and marketing, goes on.

And so it is we enter 2022, nervous about believing it could treat us better than 2019, 2020 and 2021, but nevertheless determined to go about our business. And in hope that Project Rebuild South Africa finally gets beyond basic building blocks. Of course, there is the African National Congress’s always-turbulent national elective conference at the end of the year, and that means political drama will play out big time, and that always affects the mood of the nation.

Still, life and marketing goes on.

On marketers’ radars in 2022 is Generation Z. The influential generation is studying, and entering the workforce. With spending power of around R100 billion, these “highly evolved and empowered consumers” pack a lot of power, as Jane Lyne-Kritzinger highlights in her must-read guide to understanding how to engage with this cohort.

What is a January newsletter without a prediction or two? Forresters gives insight into its macro research on customer behaviour, motivation and intent as we hit our stride in 2022. An interesting trend to note here is the rise of the Chief Data Officer. CDOs, says Forresters, “will step in to help bridge the divide between departments and create strategies that help govern data and analytics capabilities, recommending that forward thinking organisations rely more heavily on their CDOs to help with the marketing departments’ growing need for high quality data”.

Armed with the knowledge that consumers – particularly the influential GenZ – demand transparency and accountability and authenticity, forward thinking brands are buying into the principle of ‘Shared Value. Here, CEO of the Shared Value Africa Initiative, Tiekie Barnard, explains the principles behind the movement. And why it makes business sense.

We all know supply chain management was turned upside down by the COVID-19 pandemic. But how has this impacted on education institutions teaching the subject? Myles Wakeham and Carl Wakeham explore what needs to be done to ensure students are kept on top of the trends and new thinking around this important discipline.

Here’s to marketing the future.


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GenZ: Highly evolved and empowered, with major spending and social power

Forward focused, evolved and empowered, Generation Z is studying and entering the workforce. They also hold 55% of the spending power, valued at over R100 billion, so they need to be taken seriously. JANE LYNE-KRITZINGER defines what marketers need to know about GenZ in 2022.

Following closely in the Millennials footsteps, Gen Zs (currently under 22 years of age) are without doubt a formidable generation and are expected to make immense impact on the world at large.

Aside from making up close to 25 million people with immense spending power and influence, this powerful generation displays certain key characteristics one must consider when marketing to them.

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Five customer insight predictions to help CMOs get ahead in 2022

Forresters authorised South African research partner JOAN OSTERLOH takes a look at the macro research into customer behaviour, motivation and intent as we hit our stride in 2022.

As the focus of digital transformation shifts and we enter a privacy-first world, it will become more important for businesses to have a clear view of customer behaviours, motivations, and intent.

In addition, the end of the third-party cookie as well as the rising proliferation of opaque artificial intelligence (AI) has prompted a new series of Forrester reports which look at how firms are rising to these marketing threats and even turning them into opportunities.

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Why creating ‘Shared Value’ is vital for Africa’s economic recovery

We as leaders – young and old – need to create an African narrative and drive our own African agendas. The Shared Value Africa Initiative is designed to do just that, writes TIEKIE BARNARD.“Africa Unity starts with you and I, recognising each other as brothers and sisters, irrespective of whether we speak Swahili, Portuguese, French or English … respecting each other and doing away with our colonial past that ONLY respects that which comes from the outside and is prejudice based. To a large extent we are getting this right, but we are moving too slow because we are blocked by our inability to see value in people that are not members of our private exclusive clubs.”
– Prof Mthunzi Mdwaba

The concept of One Africa, One Voice is about uniting us all with one voice and, most of all, it is about being the voice for those voices that are silent; those who do not have the power nor the freedom or platform to raise their voices.

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Shape-shifting supply chain management to face future challenges – especially in educational institutions

In the past, a supply chain strategy would focus on long-term goals. But in an ever-changing world, these goals have shape-shifted into short-term aims and often have to change in situ. DR MYLES WAKEHAM and CARL WAKEHAM investigate how SCM education can be morphed in order to meet such threats.

The reality that nothing happens until such time that something is sold and purchased are truisms, and form the bases on which all economic activities, and particularly supply chain management (SCM), are built.

In essence, SCM and its logistics activities centre on derived demand; hence, if there is no marketing, there is little need for SCM in general and logistics in particular.

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    ‘Purpose is a beacon for growth’: Deloittes

    Recent research by global consultancy Deloitte into global marketing trends for 2022 revealed that 57% of those surveyed indicated that, in general, “they are more loyal to brands that commit to addressing social inequities”. The authors say for many, ‘purpose’ drives much of their business and operations, which have gone “from aspiration to strategic priority”. A third of consumers 25 and younger see sustainability as a top criterion for beauty and personal care product purchases. And privacy matters too. In terms of banking decisions, “nearly a quarter emphasise data privacy as a key requirement to winning their business. Additionally, we are seeing entire business models arise around data privacy in the business-to-business (B2B) space”.

    Data quality is key to promoting customer loyalty

    As per the old adage, “If you want loyalty, get a dog”. In the fourth industrial era, if you want customer loyalty, improve your data quality, says Gary Allemann, Managing Director at Master Data Management in South Africa. For many organisations, when looking for ways to improve customer loyalty, data quality is probably not the first concept that springs to mind. Allerman says the Business to Me (B2Me) marketing approach, which looks at delivering hyper-personalised experiences through digital channels, may start to replace traditional business-to-consumer (B2C) and business-to-business (B2B) approaches. But, he emphasises, “a key component or driver of customer loyalty, is completely dependent upon quality data”. This means combining ‘traditional’ data – like a customer’s name or account number – with additional data – such as an IP address or a device ID to build an accurate picture of each individual’s activities and preferences. And then extending this by adding additional context, such as location data and demographics that can help to build a better understanding of each individual.

    Skills skills and more skills … and people too

    Writing for Marketing Week, columnist Colin Lewis underscores the fact that skills in this digitally driven world are lacking. He believes employers should focus on “on mindset, character, attitude and a ‘batteries included’ mentality that means they are up for the challenge and able to get things done”. With the enormous growth during lockdown of ecommerce, marketplaces and the need for fast delivery all grew exponentially during lockdown and five years of “a different type of marketer was perceived to be needed”. Talking about skills requirements in 2022 quickly “becomes a conversation about finding a person who has multiple digital/technical skills, who also understands marketing at a deeper level. We want to find the one unicorn who can create viral TikTok videos, use Adobe Analytics, knows CPAs are going up and can write SEO copy for an Amazon PDP. And be a team player”. Not much to ask for then.

    Virtual ‘touching’ of products engages more consumers

    Assistant Professor of Marketing at the University of Iowa, Andrea Luangrath, has researched the impact of ‘virtual touch’. In a piece on her findings published on The Conversation website, Luangrath says, “Consumers who see a product on sale being virtually touched are more engaged and willing to pay more than if the item is displayed on its own”. Teaming up with marketing researchers Joann PeckWilliam Hedgcock and Yixiang Xu, the group studied 4 535 Instagram posts from four companies with tangible products that could be displayed in one’s hands. They also examined posts without any touching.

    “Of the posts that contained a product, 43% portrayed hands in physical contact with it. These garnered significantly more engagement – receiving on average 65% more “likes” – than those that didn’t”.

    Enter the metaverse: from 2D to 3D web

    Mark Zuckerberg announced a brand name change to ‘Meta’ in October 2021, indicating Facebook’s wish to shape the metaverse transformation, writes Theo Tzanidis, Senior Lecturer in Digital Marketing, University of the West of Scotland, in The Conversation. The term refers to the possibilities of virtual and augmented reality. Some call it a virtual shared space accessible through VR headsets, AR glasses or smartphone apps. Users may interact, socialise, explore and create content in the virtual environment, and monetise their virtual transactions using blockchain technology and cryptocurrency. The metaverse (or 3web) is intrinsically linked to NFTs and cryptocurrencies, which commercialise interactions by creating or selling digital artefacts. In 2022, 3web is expected to be a big commercial issue and is backed by major brands including Nike, Adidas, Gucci, Prada, Puma, Microsoft and others.

    Journal of Strategic Marketing Newsletter – October 2021

    Journal of Strategic Marketing Newsletter – October 2021


    With this being the last Journal of Strategic Marketing newsletter for 2021 – we’ll be back at the end of January 2022 – it is an appropriate time to detail the exciting changes taking place at the Institute of Marketing Management South Africa and its IMM Graduate School.

    The ambitious plans for the Institute for Marketing Management involve the creation of the largest network of marketing professionals across the continent. Aided by partner organisation, the African Marketing Confederation, the aim is to “uplift, grow and promote the marketing profession, including the areas of media, advertising, branding, market research, customer service, public relations, digital marketing, sales and business development” while supporting and inspiring marketing professionals at every stage of their careers.

    Membership of the Institute of Marketing Management incorporates certain tiers that come with specific benefits for both individuals and corporate companies, which will form a solid community for alumni/students of the IMM Graduate School and the greater marketing industry.

    The plan also includes vital, practical elements such as offering a job placement service to both corporate and individual members. The IMM Graduate School’s renowned qualifications in marketing, supply chain and business have created a pool of talent in various levels of their careers.

    Membership of the IMM comes with a range of benefits too. Monthly IMM Friday networking events will cover latest industry developments. An annual marketing conference is planned, which will provide a platform for industry experts
    to address topical issues, and for marketing academics and researchers to present papers covering new theories and research results. The event will also host the Marketing Excellence Awards, recognising achievements and contributions to the marketing industry each year.

    An Executive Think Tank will be formed, offering IMM Platinum Corporate Members an opportunity to meet and share insights and perspectives. This is designed to ensure marketing’s brightest minds collaborate and exchange ideas on how to best serve the industry.

    While the Journal of Strategic Marketing will serve the South African side of the IMM’s members and a range of C-Suite executives across industry, the Strategic Marketing for Africa magazine will cover the business of marketing across the continent.

    The business of education, of course, continues. The IMM offers a bouquet of online programmes, developed by industry specialists, which are both practical and relevant. Workshops will also be presented, designed with specific industry needs in mind.

    Exciting times lie ahead for the Institute of Marketing Management and its members. But in the meantime, as we learn to live alongside Covid-19, this issue of the Journal of Strategic Marketing covers the way in which business understands the minds of consumers in this changed world and how brands and agencies have adapted.

    GeoPoll’s Ricardo Lopes analyses the findings of research into South African consumers over the past 18 months. It’s not pretty, as we also live alongside multiple levels of fear brought about by the pandemic. Marketing Grit founder, Noeleen Bruton, delves into the complex world of digital strategy that massive adoption of technology has brought to the fore. SAB Corporate Brand Director Sphe Vundla shares how the company managed multiple agencies and multiple brands in a sector that had to deal with rolling alcohol bans and massive uncertainty. And Ornico’s Oresti Patricios advises businesses that have adopted an ecommerce model how to stand out and retain customers in an increasingly competitive space.

    We hope you enjoy the read.

    Here’s to marketing the future.


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    The ongoing impacts of Covid-19 on South African consumers

    Research into prevailing attitudes towards Covid-19 since the pandemic began has delivered insights into the minds of South African consumers over the past 18 months. While GeoPoll’s study covered nine markets, RICARDO LOPES dives into what the findings say about South Africa.

    Covid-19 continues to exert immense pressure on the world’s emerging markets, creating economic concerns that rival health concerns. With a third or fourth wave of the virus gripping many countries, it is becoming increasingly difficult for governments to get a handle on either of those challenges.

    As a follow up to GeoPoll’s 2020 reports and April 2021 report on the impacts of Covid-19 in sub-Saharan Africa, we conducted a survey in nine countries across Africa, Latin America and Asia to assess the ongoing effects of the pandemic on respondents’ finances, spending and health, their thoughts and concerns about the vaccine, and their hopes for the future.

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    Slow down to speed up: the importance of solid strategic thinking in a post-Covid era

    As things start to settle into a ‘new normal’, companies are in a better position to assess emerging digital trends and identify which ones are here to stay. There is no doubt the accelerated adoption of digital technologies during the pandemic will continue into the post-pandemic recovery, writes NOELEEN BRUTON.

    Without a doubt Covid-19 has, in just a short while, accelerated the digitisation of internal business models, customer interactions, as well as distribution and supply chains.

    During the pandemic, consumers showed a ‘fast tracked’ adoption of online channels forcing many companies to promptly respond. According to a new McKinsey Global Survey of executives, this has resulted in a rapid shift towards interacting with customers through digital channels, and also the share of digital or digitally enabled products in their portfolios has accelerated by an incredible seven years.

    This hastened response has been very encouraging with many companies undergoing a massive cultural shift that has not only allowed for, but encouraged, quicker decision-making and more out-the-box entrepreneurial thinking.

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    Collaboration and integration are the new foundation of brand brilliance

    The South African Breweries recently appointed SPHE VUNDLA as Corporate Brand Director. Here, he uncovers the unique challenges this massive business faces. The only way to manage the integration of multiple brands across multiple agencies is by establishing a strong rhythm and efficient ways of operating, while becoming an expert in managing multiple objectives too.

    Managing the South African Breweries corporate brand comes with the challenge of ensuring the organisation’s efforts and achievements are communicated and built on through continuous and seamless storytelling.  This is no small task, as it requires close co-operation with multiple players in various parts of the business.

    The last few years have seen this dynamic industry become more difficult to maintain; the Covid-19 pandemic hit the brewery industry hard with the country introducing new restrictions, including multiple bans on the sale of alcohol. Because of this, I had to embrace agility and scenario planning in a completely unprecedented way. Adopting a discipline of readiness – which at times meant having campaigns ready to plug-and-play in response to changing socio-economic and political conditions – became a key part of how the organisation operates.

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    eCommerce accelerated: How to get ahead of the curve

    There’s no doubt the Covid-19 pandemic hastened ecommerce across industry sectors. ORESTI PATRICIOS delves into what marketers should know about ensuring consumer loyalty and ecommerce offerings that stand out above the rest.

    The Covid-19 pandemic has led to the acceleration of digital transformation in South Africa. From March 2020, when lockdown began, companies in all industries had to shift their operations to maintain revenue. These shifts included introducing work from home policies and going completely digital. And, of course, introducing ecommerce stores as an alternative to make product sales.

    The Statista Digital Market Outlook indicates that the value of ecommerce transactions in South Africa is expected to surge to 150% by 2025. This is equivalent to R225 billion and results from a marked shift in consumer behaviour and expectations brought about by the pandemic.

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      New collaboration between African marketing professionals

      The marketing profession’s most pressing imperative is to “kick start a new conversation on how best to address a radically changed business environment as the world slowly emerges from the Covid-19 chaos”, says President of the African Marketing Confederation (AMC), Helen R. McIntee. To this end, the Africa-wide organisation is relaunching. Member bodies comprise the Institute of Marketing Management South Africa (IMM), Marketers Association of Zimbabwe, The Zambia Institute of Marketing, The Marketing Society of Kenya, The Chartered Institute of Marketing, Ghana (CIMG), The National Institute of Marketing of Nigeria, the Institute of Marketing and Management, Mauritius, Institute of Marketing in Malawi (IMM) and The Moroccan Association of Marketing and Communications (AMMC). McIntee says, “We are more committed than ever to growing and developing the profession and to ensuring that African marketing specialists have the support needed to survive and thrive today and in a post-COVID new normal. The AMC’s vision of connecting marketers across Africa will provide the best platform to allow us to engage, share and find new solutions.”

      Cannabis marketing finds a home in podcast advertising

      Marketers across the globe struggle to keep up with the vagaries of marketing and advertising cannabis products. The regulations vary from country to country, and are constantly changing, and most social media platforms are reluctant to allow advertising of cannabis products. But Marketing Brew reports the industry picking up on podcast advertising as it has fewer restrictions. Former Marketing Director at cannabis researchers the Brightfield Group in the US, Connor Skelly, told Marketing Brew: “Podcasting just opens up more nuance. With something like Instagram, it’s overall just antiquated ad policies and terms of service. Same with Google.”

      Reviving one of South Africa’s oldest wine brands

      It’s been a wine staple in South Africa since 1932, produced every single year without fail despite war, drought and yes, pandemic. When the Royal Family visited in 1947, it was the red wine they were served. It is the only wine in South Africa allowed to use the word ‘Chateau’ on its label due to the fact that South Africa signed the Crayfish Agreement with France that forbade the use of the word on wine labels in 1935 – because it was launched three years prior to the agreement. It is, of course, Chateau Libertas. It was created by a medical doctor, Dr William Charles Winshaw, who believed the smooth, easy-drinking, juicy blend could be part of a healthy adult South African lifestyle. And now it’s coming out in a two-litre box, something else the pandemic has brought about.

      Bond is back … and so is cinema advertising

      The premiere of the latest Bond movie No Time to Die – Daniel Craig’s fifth and last outing as 007 – made a global splash. And a ton of money too. In the United Kingdom alone, it took over £25 million in the first weekend and $121 million in 54 other countries. Marketing Week reports advertising was sold out two months in advance of its release, with telecoms, motors, food and drink, as well as entertainment and leisure companies booking. These included Sky, Google, Pokerstars, Peroni and Lloyds. The UK’s Digital Cinema Media says 40% of the returning audience to cinemas are 16-34 year olds, but that Bond draws in an older generation too.

      TikTok enters ecommerce space with Shopify deal

      Users can shop on Instagram through linking products on posts. Now TikTok and Shopify have partnered to offer an ecommerce integration. Shopify’s web store drives merchants to the TikTok app, while offering a video creation tool for brands to create videos optimised for Shopify.For the creator economy, this integration means that creators will need to be more intentional about the ways that they use their platforms as commercial storefronts while continuing to build a community and identify with the core values of their audiences,” writes Neve Fear-Smith on Talking Influence. “With the knowledge that this new shopping feature is in place, creators may find ways to incorporate the feature into their content planning by creating storefronts that can be used for events, conferences, or paid subscription channels.”