Mid-year registrations are now open. Classes commence on 16 August 2021. Apply now.

Digital vs traditional marketing – how has it been influenced by COVID-19?

Digital vs traditional marketing 1

The debate of whether digital or traditional marketing is most valuable or otherwise more effective is an endless one. However, since the Covid-19 pandemic first hit, the shift towards digital has been exponential as traditional channels for advertising have come under pressure, become a lot more expensive and in some cases, obsolete.

 

As consumers have had to adjust their lifestyle habits during this time, their media habits have also changed; creating very real consequences for the ‘traditional’ media industry and new, accelerated opportunities for its ‘digital’ counterparts.

 

What’s the difference?

When we refer to ‘traditional marketing’, we are including any form of marketing that does not involve the Internet or digital technology. 99Designs passionately describes “The immersive experience of an impactful TV commercial and the tactile nature of a copy of Rolling Stone magazine are as important today as they were 20 years ago because of their lasting effects on your memory. Subconsciously you attach yourself to their brand emotionally, meaning they will stay at the top of your mind.”

Traditional media are just that – tactile and they exist in real time, physically. There are five main categories in this classification:

  • Print Marketing – magazines, newsletters, newspapers and catalogues.
  • Broadcast Marketing – radio, television and cinema.
  • Direct Mail Marketing – pamphlets and brochures.
  • Telephone Marketing – telemarketers or call centres.
  • Outdoor Marketing – billboards, bus stops and posters.

Digital marketing depends on the internet and the platforms it offers for a company to have a presence on it. It includes some of the following types of marketing strategies:

  • Search Engine Optimisation – the process of enhancing the volume and quality of web traffic directed to a website or a web page using keywords most commonly searched.
  • Social Media Marketing – the process of promoting products and services using Social Media platforms like Facebook, Instagram, Twitter, TikTok or LinkedIn.
  • Paid Search Advertising – when companies or organisations pay search engine providers such as Google, Bing or Yahoo to pop up first on a specific search input by consumers.
  • Affiliate Marketing – the practice of an online retailer paying commissions to an external website to run ads or take up ad space on the website, in return for traffic or sales.
  • Email Marketing – works by sending a mass email to a group of people (usually mailing lists or newsletter subscribers) a promotional message that encourages website traffic or sales for example.

 

Death of TVThere are many different views on whether or not traditional media or marketing is dying or not. Those that say no are usually the bigger businesses with massive budgets that continue to plough their money into television, radio and other printed forms of advertising.

The trouble with these forms of media is that they do not appear on a person’s smartphone or tablet. With the whole world looking down these days to the lit-up screen in the palm of their hand, who’s to say they will see your billboard or poster, let alone read a newspaper or magazine? Even if they were to be interested in what you have to say, the effort of going into a physical store or having to memorise the dates and times of your event is just too much when compared to it’s ‘click and buy’ from your smartphone alternatives.

 

 

 

 

COVID-19 has pushed the consumer to digital channels

Let’s review what has been happening in each on the traditional marketing media industries in South Africa recently:

 

Print Media

In July last year (2020), as COVID-19 swept through the country and lockdowns started to roll-out over extended periods, Media24 announced the closure of many of their magazine and newspaper titles. CEO, Ishmet Davidson stated “the pandemic has accelerated the pre-existing and long-term structural decline in print media, resulting in a devastating impact on our own already fragile print media operations with significant declines in both circulation and advertising since April.” Ishmet also stated that Media24 is reshaping to further accelerate its transition to an increasingly digital world.

Magazine and newspaper titles were impacted as follows:

Magazine portfolio:

  • Move! and the Hearst portfolio (Men’s Health, Women’s Health, Bicycling, Runner’s World) have been closed.
  • DRUM was moved into a digital format only.
  • The frequency of the monthly magazines was reduced to six issues per year, and eight issues for tuis | home, SA Hunter/Jagter and Man Magnum.

Newspaper portfolio:

  • Son op Sondag and Sunday Sun have been closed.
  • The Eastern Cape edition of Son has been closed.
  • Die Volksblad and Die Burger Oos-Kaap have been moved to digital editions only.
  • Amanzimtoti Fever, East Griqualand Fever, Hillcrest Fever and Maritzburg Fever have been closed.
  • Several other titles have been consolidated into one.
  • The Witness has moved into a digital format.

 

Cinema

As we move to the big screen, we see a similar picture emerging where Cinema chains like Ster-Kinekor, Nu Metro, Cine Centre as well as other independent cinemas had to close completely for lockdown against an already dwindling attendance backdrop. The lockdown also led to record highs of streaming, with Netflix for example earning around 16 million new customers over the quarantine period. People love to be entertained, and will continue to watch movies, but perhaps they have found a cheaper, more convenient way to get their fix.

 

Television

Not everyone is on Netflix or another alternative streaming channel. According to the Advertising Media Forum (AMF), time spent viewing TV during lock down almost doubled. However, ad spend declined by 27% between March and April last year. This happened as a result of advertisers’ cash flow drying up due to their supply and demand slowing down. So, with a reduction in ad spend and resulting financial strain, we may see further changes in the television broadcasting industry in months to come. According to the Daily Maverick (Jan 2021), the SABC is already struggling and is owed R57.1-million in unpaid television licences and advertising fees by government departments, municipalities and state-owned entities (SOEs): R29.2-million was owed in advertising sales, with R4.5-million owed by SOEs, R9.2-million owed by provincial departments, R13.1-million by national departments and R2.3-million by municipalities.

 

Direct Marketing

While not as a direct result of COVID-19, in January this year MyBroadband reported “The South African Post Office (SAPO) is on the brink of collapse and is facing bankruptcy despite receiving R8 billion in bailouts since 2014.” It also reported that “Notices on the doors of some SA Post Office branches now state “Closed until further notice” without a clear indication of where people can now get services from.”

This is not good news for direct marketing companies or businesses that rely on post as a channel for marketing and has forced them to move their efforts to email. Findings from Statista indicate that there are nearly four billion email users in the world. Campaign Monitor research reported that 72% of people would rather receive marketing materials from brands through their email.

 

Out Of Home (OOH)

Out-of-home (OOH) advertising was one of the worst hit by the pandemic as lockdowns sent people home, away from their offices and CBDs and prevented them from being able to commute or travel nationally and internationally. This has dramatically reduced the amount of people exposed to billboards. This channel is expected to return, but who knows when and how long it will take to return to previous revenue levels as its share of the marketing budget may have already been ‘lost’ to other digital platforms like Google display or social media ads?

 

The benefits of digital media

Social Media and digital marketing have made customer engagement and personalisation so efficient. The benefit of digital marketing from the perspective of advertisers is that it’s so much cheaper for wider reach, than the cost it would be to use a traditional platform for less reach. Other benefits listed by LeGusTry are that digital marketing offers the highest return on ad spend investment, higher exposure to new clientele and higher engagement rates.

 

benefits of digital mediaThis also evens the playing field somewhat in that smaller businesses are now able to compete with bigger corporates in the same markets. Where before, spending thousands of Rands on television and radio adverts were simply not an option.

Unlike traditional media is can be said that digital marketing uses every touch point of your daily use of the internet to reach you.

Conclusion

Marketing is an ever changing industry and marketers are constantly being pushed to new levels to improve sales and drive traffic to their products and services. With the advent of Social Media, the need for traditional marketing techniques has shown a steady decline as more and more consumers have moved away from traditional TV, radio and print media, to news and entertainment via the internet on their mobile devices.

With the unique circumstances COVID-19 is presenting, the demand for traditional advertising channels along with locked down audiences has dwindled. During this time, companies have heavily relied on Digital Marketing strategies to stay relevant and drive sales. The shift to digital does not start or end with the pandemic, but a global lockdown definitely showed the power of social media in the absence of physical movement and real-time, real-life forms of media like billboards and newspapers. The question is whether or not this trend will reverse when COVID-19 is finally a thing of the past.

Covid-19’s impact on supply networks is slowing down the fight against climate change

Solar Energy

 

covid-19Solar energy developers around the world are slowed down by a spike in the costs of materials, labour and transporting as the world economy recovers from the Covid-19 pandemic (read more about that here). . An Economic Times India article suggests the zero-emissions solar energy market is showing slower growth at a time when world governments are ramping up their efforts against climate change, and marks a reversal to growth after a decade of lowering prices. One of the greatest challenges to solar energy manufacturers is the soaring cost of steel, which has risen three times in the past year, not to mention the unsteady cost of transportation and the uncertainty of when materials will become available for manufacturing to continue. The pandemic has caused inflation to occur at a staggering rate and many industries are struggling to keep up.

What does this mean for climate change

An online poll by Power Technology readers showed that 54.1% believe a pandemic induced recession could hurt renewable energy development, which in turn, puts us further behind in addressing the climate crisis. With the Covid-19 outbreak hitting the global supply chain and single companies alike, renewable energy growth is expected to slow, with projects consistently being delayed or cancelled as a result. The consequence of this is globally the fight against climate change as per the Paris Agreement, will be put on hold for an extended period of time. While the pandemic has forced us to slow down, the rate of climate change has not. A Time article explains that “Every day, due to rising water levels, some part of the world must evacuate to higher ground.”

 

Climate Change

Demand for solar energy

The demand for solar energy is higher now than ever before. More countries are facing longer, hotter summers and the energy source itself can easily be distributed and rerouted into national electricity lines as Australia has already done. The booming demand for solar energy is however only as in demand as it is available and affordable. With the rising costs of solar energy materials and installations, more and more companies and individuals alike could turn it away for a longer period of time than what the earth can afford. Without renewable energy sources like solar energy, the world depends heavily on non-renewable sources like oil and coal. If we don’t act now, Octopus Energy predicts that global oil deposits will deplete by 2052 and coal and natural gasses are expected to last only until 2060 (read more here).

 

Global warming, pandemic

How the pandemic has affected global warming and in turn, slowed down supply chains

Global logistics industry leaders, EY, conducted a survey on the impact of Covid-19 on the industry and its effects on the job market. The report comes as no surprise that only 2% of companies surveyed stated they were fully prepared for the pandemic. 72% of those affected reported experiencing serious disruptions, while 17% reported significant disruptions (55% reported mostly negative effects). The graph provided by EY illustrates this finding.

Pandemic Chart

Although many employees were requested to work remotely, others – especially in factory settings – had to make new arrangements to ensure physical distancing and were required to wear personal protective equipment (PPE). High-tech industries and industrial products manufacturers are investing heavily in technology to limit employee exposure to COVID-19.  Additionally, 47% of all companies reported workforce disruptions due to the pandemic. These are just a few examples of changes affecting supply chains across various sectors. Thus it’s unsurprising that more logistics companies are looking to further empower their labourers through reskilling to help the workforce readjust to the new normal the pandemic has forced the industry into. A Price Waterhouse and Cooper report from April 2020 suggests that there has been a global decline in transport activity and this in itself has forced many workers in the supply chain to be jobless for months on end due to lockdowns. However, in 2021 it is evident that the demand for at-home deliveries has increased.

Conclusion

The Covid 19 pandemic has put immense strain on the world’s resources. Solar energy production has not been spared. We are already in a race against time to reverse global warming. We must seek ways to shorten supply chains by sourcing locally available materials to create renewable energy sources that are  sustainable and more robust against something as unpredictable as a global pandemic. Who knows when the next one could hit.

Advertising during a pandemic: Brands that got it right!

Advertising during a pandemic

ALRENE COETZEE, Social Media Manager at Digital Content Lab shares a light-hearted review on how some brands broke through the noise of COVID-19 advertising by showing us the funny side of the pandemic.

When the COVID-19 pandemic hit South Africa at the beginning of 2020, a full national lockdown began at midnight on Thursday 26 March. Many brands had to make rather big adjustments to their marketing strategies in order to reach their customers at home using digital marketing tactics.

So here we are, almost a year later, and still stuck with endless adverts from brands who seem to have gotten the same memo to bombard us with their sombre piano music and empty roads, reminding us THAT WE CANNOT BE TOGETHER, but at the same time WE ARE NEVER APART.

But just when we thought it was time to zone out of these depressing ads, something unexpected happened…

Saved by humour
Here are four brands who thankfully took a different approach and changed the game completely by appealing to our sense of humour through clever and engaging content.

Chicken Licken SA (84,713 Youtube views)

Chicken Licken SA really did their slogan “Soul Food for a Soul Nation” justice with their COVID-19 campaign video portraying South Africa’s unique sense of humour amidst the pandemic. The video includes snippets of how South Africans try to outsmart the COVID-19 rules along with the famous zol-song and the president’s struggle with his mask. They made sure to keep things on the light side.

Watch the video here: https://www.youtube.com/watch?v=tjly7EsmUYY

King Price Insurance (3,381,998 Youtube views)

King Price Insurance had some fun with their hashtag “#UnapologeticallySouthAfrican”. Their COVID-19 campaign video opens with a woman approaching a roadblock where a police officer continues to check her temperature and asks for her permit. A funny series of misunderstandings take place pointing out the struggles we face in a light-hearted way. The traffic officer takes her temperature and tells her she is ‘very hot’ to which she responds that she is married.

Watch the video here: https://www.youtube.com/watch?v=M35_uhXFbmE

Nando’s SA (18,159 Youtube views)

Nando’s SA took the jolly “We wish you a Merry Christmas” carol and turned it into a funny, witty song introducing their “Say ‘tsek to 2020 Fed-up Festive Feast”. They sure made us realise that even though we have our downs, our truly South African sense of humour cannot be taken away from us.

Watch the video here: https://www.youtube.com/watch?v=g25anWNqwkk

Castle Lite SA (515,455 Youtube views)

Castle Lite’s intro to their #HitRefresh on 2020 played on that one phrase South Africans know all too well… “My fellow South Africans”. In their video there is a small town called Hotazel where the temperature gets, well… hot as hell. They used the COVID-19 nation address and turned it into a fun commercial, making us feel refreshed for a 2021.

Watch the video here: https://www.youtube.com/watch?v=qlDIgsLiM8c&feature=youtu.be

Even though the COVID-19 pandemic is no laughing matter, at least these brands managed to lift the spirits of the nation while promoting their brand.

Jokes aside
If you or the marketing team in your company is not geared up to drive your digital marketing strategy this year, then consider the IMM Graduate School’s Applied Digital Marketing Certificate course. In 10 months, you could be upskilled with some of the latest strategic thinking and best practice from the industry.

This course promises to be the most up to date course available as it is continuously reviewed and updated by our tutors that work in the digital marketing industry. Here’s what one of our students had to say about this course:

“Thank you so much for the ADMC course, it was really an eye opener to what I thought I already knew. This course was really what I needed to enhance my marketing qualification and added to my understanding of digital marketing.” Tokologo Mokoena (Marketing Manager – SABC – Ikwekwezi FM)

Being a digital marketer in 2021 means you need to have a wide range of skills; from technical know-how to content creation. In this practical, hands-on course we introduce you to the tools required to be a successful and efficient digital marketer. If you would like to apply for this course or would like more information, follow the link to our website https://shortcourses.imm.ac.za/online-course/applied-digital-marketing-certificate/.

Say hello to uninterrupted COVID proof education!

Uniterrupter Covid Education

The only thing that is guaranteed right now is change and 2020 has undoubtedly offered proof of that! COVID-19 also sometimes referred to as “RONA” has had a massive impact on students and student life. But, it’s not all doom and gloom, there is a way to stay safe and enjoy uninterrupted studies for this year regardless of the lockdown level or which variant of the COVID-19 virus is doing its rounds.

It is still possible to plan for a future despite the challenges being presented
The matric exams which ended on 15 December 2020 are currently being marked and results are expected to be released on 22 February 2021. While matrics seem to have been left in a sort of limbo, Blade Nzimande, Minister of Education, has urged students not to fret. Traditional Tertiary Education Institutions have all set their academic year to begin between early-March and mid-April. This gives matrics ample time to settle into their choice of studies.

But, there is no need to wait to apply
Charmaine du Plessis, Chief Marketing Officer at the IMM Graduate School has advised matrics to apply with their prelim results. “Most matrics have an idea, even before they write finals whether or not they are expecting a Bachelor’s or Diploma pass. The IMM Graduate School has a structured process where students applying for a degree programme but don’t qualify (with their final results), can move to either a Diploma, Higher Certificate or other course within the IMM Graduate Schools bouquet of offerings.”

image2Everybody that applies to the IMM Graduate School will be assisted to find a suitable programme to study

Du Plessis urges students that already have a qualification and want to register for a Postgraduate programme to do so as soon as possible to avoid the inevitable rush that is expected when matrics eventually receive their results. “We are anticipating a peak registration period, so to avoid longer call back times and (digital) queues, rather get your application in now”.

We ALWAYS have space for you
The IMM Graduate School has geared up to take on more students this year. The COVID-19 lockdown was a catalyst in the adoption of online learning in South Africa and the IMM Graduate Schools academic department along with support functions have adapted their processes to take on an increased number of students for the year.

This is just as well since UNISA has recently announced that it will be decreasing student intake numbers by 20,000 students this year. Part of the reason for admitting fewer students is the inability of the National Student Financial Aid Scheme to meet the demand.

Another is that some buildings on the UNISA campus have been closed indefinitely due to COVID-19 and in an effort to keep everyone safe they have announced that there will only be one registration period for the 2021 academic year. This means that all modules for 2021 – for both semesters – must be registered before 12 March 2021.

If you have applied at UNISA and find that your registration has been unsuccessful due to any of the above or any other reasons, then turn to the IMM Graduate School – we can be your academic home for the next few years. We are able to offer you an uninterrupted fully online education backed by an established and committed academic team. And if COVID-19 lets up and allows for it, you can at any time sign up for classroom education at one of our many student support centres countrywide.

“Furthermore, to assist student financially during these tough economic times, we have partnered with Study Loans 4U. Study Loans 4U has relationships with the major banks and is able to not only secure the most favourable terms but also to increase the chance of a loan application being approved. Study Loans 4U does all the administrative work to make sure that the application process is quick, easy and stress free. In addition, the IMM has in place an instalment payment options which allows students to bay for their studies throughout the semester”, adds du Plessis.

Our registrations for 2021 are still open, but don’t leave it too late. You shouldn’t have to delay your goals by missing even one semester/term of studies. Take as much control as you can over what is controllable. Your health and your education. See you soon!

The relationship between, and the importance of, a Value Chain; a Supply Chain and Supply Chain Management.

SUPPLY CHAIN

By Dr Myles Wakeham and Annie Beckerling

The recent outbreak of the Covid 19 pandemic has highlighted the importance of Supply Chain Management (SCM), as a sudden increase in demand for certain products and a complete standstill in demand for others has left many suppliers reeling. However the man in the street can still find it difficult to distinguishing the features that contrast a value chain, a supply chain and finally supply chain management (SCM).. Although there is a strong relation amongst these three activities, there are key differences that make them stand apart from one another.

Essentially, a value chain is a set of activities that a firm performs in order to deliver need-satisfying products or services to a defined market or markets. It is also known as a high-level model of how businesses receive inputs and then processes such inputs via the conversion process (operations) into finished goods and services. This is achieved by adding value to the inputs in such a way that the morphed final offerings will hopefully satiate varying customer needs, better than the competitor. The ultimate objectives of the value chain are the appeasement of both customer needs and wants (in the form of superior goods and services), and, as importantly, revenue and profits for the enterprise.

Created by Michael Porter in 1985, the value chain consists of primary and support activities. Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. The key goal of these activities is to create value that exceeds the cost of performing the activity, thereby generating higher organisational sales and profits. Support activities on the other hand comprise procurement, human resources, finance, technology development, and the firm’s infrastructure. These ancillary activities within Porter’s Value Chain, assist the primary activities by forming the foundation of the organization on which the primary activities operate. A support activity such as financial management for example is of great importance for primary activities as without finance, these activities cannot be performed. Likewise, without effective Human Resources Management, the organisation will not have the requisite human capital to produce the required goods and services, market them and finally distribute them to…

  • The right organisation.
  • At the right time they are need.
  • To the right person who will be using the goods; and
  • At the right price so that their delivery to the targeted end-customer via fellow supply partners will enjoy the value that the offering has been designed to deliver.

The strength that underpins Porter’s Value Chain Analysis is its approach, as it focuses on the customers as the central theme of the business rather than on departments or people. Being a system approach to operating a business, the system links other systems, people, departments and activities to one another and demonstrates how the approach impacts on value creation, costs and profits. Consequently, the analysis makes a clear picture of where the sources of value and loss of revenue can be found in the organisation.

The supply chain is the network of individuals, firms, technology and resources that are involved in the creation and distribution of offerings from the source of the inputs (raw materials, components and so on) via the distribution network to the final consumer. The main challenges of the supply chain, or better still the supply network, are the ever-changing needs of the consumer, its complexity (especially international supply chains), supply risk and as importantly supplier risk. The recent outbreak of the Covid 19 pandemic has underscored the importance of a smooth-running and seamless supply network as without it operating effective and efficiently, more people would have been struck down by the virus. This would have undoubtedly increased the morbidity and mortality rate throughout the world as well as the negative impact the outbreak has had on the global economy.

Supply chain management (SCM) is about creating value. Early efforts at managing supply chains often focused on cost reduction in order to make the chain leaner. Unfortunately, these efforts sometimes reduced the ability to create value thereby negating the key purpose of the supply chain. In essence, there is more to creating value through effective SCM than simply wrestling costs out of supply chain’s primary or support activities. Being an agile supply chain in a modern context, is probably more important than wrangling lower costs as it translates into quicker market entry and better customer service.

There should be value-creating activities that reinforce supply-partner and customer centrism. Because there can be many supply partners in the equation, managing supply chains requires a balancing act among competing and oftentimes self-serving interests. To illustrate this, note the following example. The seller of raw materials (supply chain inputs) would naturally like to enjoy the highest possible price he can muster from the manufacturer in order to maximise profits. The manufacturer on the other hand might probably demand to procure the goods at the lowest possible cost in order to be competitive in the marketplace after he has incurred the time and cost to produce the goods. It is these conflicting requirements that require supply partners to be flexible so that these opposing needs may be realize.

The above is underpinned by the advent of the recent Covid 19 virus and how the interest of supply partners can differ, even in a life-threatening emergency such as the pandemic. In the USA, where the outbreak has reached mammoth proportion, Federal and local governments competed for life-saving Personal Protective Equipment (PPE) hoping to procure such goods at the lowest possible prices. However, because of supply and demand issues, and pure unadulterated opportunism, sellers put up the prices of their PPE goods to exorbitant levels in order to maximise profits at the expense of the people who were ill and dying in hospitals and old age homes. The sad reality is that there was no cohesion and coordination on a macro scale regarding to the procurement and delivery of such essential equipment, apparel and medication. Instead of Federal Government (central government) acting as the catalyst for the acquisition of such goods and services, it competed against states and hospitals, thereby increasing the cost and delaying the delivery of the imported life-saving offerings from Europe and the East.

SCM can be defined as the design, planning, execution, control, and monitoring of supply chain management systems, with the objective of generating value by synchronizing supply with demand and measuring performance on an international basis. Where once it was considered to be a philosophy, in today’s terms it has become an essential business activity that is designed to ensure the delivery of superior value-add services so that all the players in the chain may benefit there from.

The supply chain, not only links organizations e.g. suppliers, producers, and customers. It produces upstream and downstream flows, which move products, information and payment (cash) out of and into organisations.

The value chain however integrates a variety of supply chain activities throughout the product/service life cycle; from the marketing function determining customer needs and wants, operations converting inputs into goods and services and finally to outbound logistics, which consists of order processing, warehousing and distribution. The main intent of a value chain is to increase the value of a product or service as it passes through stages of development and distribution before reaching the end user. So, through effective supply chain mapping and streaming, organisations in the supply network can accurately direct their mutual efforts at providing value-add services to the next-in-line customer. The above hopefully illustrates the relationship of the three critical business activities, their relevance and as importantly how they provide value to all the members of the network, including the end consumer.