Journal of Strategic Marketing Newsletter – February 2022
Journal of Strategic Marketing Newsletter – February 2022
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.
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.
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.
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.
‘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 Peck, William 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.