CONTEMPORARY ISSUES IN MARKETING

ASSIGNMENT 01

UNIQUE NUMBER : ########

STUDENT NUMBER : ########

MODULE : MNM4801

DUE DATE : 10 MAY 2019

SURNAME : SITHEBE

NAMES : LINDILE DUMISILE VUYISWA

Honours assignment prepared for the university of South Africa

 TABLE OF CONTENTS

TOPIC PAGE NO

BACKGROUND……………………………………………………………………... 3

FAITH-BASED MARKETING

What is faith-based marketing………..……………………………………. 4

Characteristics of faith-based marketing……..…………………………… 4
The impact of faith-based marketing on businesses ……………………. 5
How to strategically incorporate faith-based marketing…………………. 6

EVENT-TOURISM MARKETING

What is event-tourism? …….……......…………………………………….. 7

Characteristics of event-tourism……..…………………………………….. 8
The impact of event-tourism on businesses...……………………………. 8
How to strategically incorporate event-based marketing?.....…………... 9

MARKETING FOR THE FOURTH INDUSTRIAL REVOLUTION (4IR)

What is 4IR?..………………………………………………………………... 10
Characteristics of 4IR marketing…..…………………………………….… 11
The impact of 4IR on businesses…..……………………………………… 12
How to strategically incorporate 4IR marketing …...…………………….. 13

ADWORDS MARKETING

What is AdWords Marketing? ………………………………………………. 13

Characteristics of AdWords Marketing…………………………………….. 14
The impact of AdWords Marketing on businesses….……………………. 15
How to strategically incorporate AdWords Marketing?..........…………… 15

NFC MARKETING
What is NFC?........................................................................................... 16
Characteristics of NFC Marketing ………………………………………….. 17
The impact of NFC on businesses ………………………………………… 17
How to strategically incorporate NFC Marketing?………………………… 18

AN AFRICAN PERSPERCTIVE

Faith-based marketing……………………………………..……….. 19
Event-tourism marketing…...……………………………………….. 20
4IR marketing ……………………………………………………….. 20
AdWords marketing………..………………………………………... 21
NFC………………...………..………………………………………... 21

CONCLUSION ………………………………………………………………… 22

REFERENCE LIST ………………………………………………………………… 22

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BACKGROUND

The two biggest unifying (and perhaps most important) themes in contemporary marketing
are: the rapid proliferation of media platforms, and, the rapid change in the marketplace
(product innovation, marketing terminology/technology, consumer behaviour/tastes). The
ever increasing number of marketing options, and the competition for mindshare among
consumers and businesses that are overwhelmed with competing marketing messages, are
real-world challenges that result from these rapid changes.

Whilst there is a growing number of contemporary marketing issues, only five issues are
discussed in this papers based on their creative strategic thinking/innovativeness and
sustainability.

Central to the contemporary issues in marketing are the concepts of ‘technology’, ‘social
media’ and ‘brand management’ which are part of the analysis of this paper. Accordingly, the
five contemporary marketing issues that are currently affecting managerial and innovative
processes in the business environment are discussed as follows:

Faith-based marketing (Religious Marketing) = the cross-functionality and integration of

religious faith into marketing activities and business ventures (Gilgoff, 2012).

Event-tourism marketing = managing a portfolio of events as assets in-order to benefit

various objectives and goals for the host city, venue or destination (Getz, 2007).

Marketing for the 4th Industrial Revolution (4IR Marketing) = fusion of technologies and
cyber-physical systems interwoven with other digital spheres (Hawthorne, 2018).

Google AdWords Marketing = Search engine’s advertising system in which marketing

practitioners tag their chosen keywords and attach them onto their ‘paid-for’ message so that
their clickable adverts/content can appear at the top of the search engine’s results page
(Plaza, 2009).

Near-Field Communication (NFC Marketing) = technology that has the ability to link
physical products to the digital world or two unique devices without the need for prior or
contractual connection setup (Thomas, 2011).

The main discussion areas appear as follows:

The first point of discussion is; the identity of each contemporary issue, which elaborates
on definitions, characteristics and important key factors.

The second point of focus is; the possible impact on the marketing activities and the
general business environment.

The discussion in this paper also suggests ‘a way forward’ through a creative marketing
responses (suggested interventions/actions) for businesses to adopt so they can
strategically address these issues in their marketing plans.

Lastly, the ‘African perspective’ is analysed in detail as part of the contemporary issues
because it is clear that the majority of marketing practitioners ignore the fact that, African
consumers’ livelihoods are largely influenced by African Indigenous Knowledge systems
(AIKS), when preparing marketing strategies. However, there is a growing number of
consumers who are becoming more socially and culturally conscious and are forcing
organisations to leverage value from AIKS in-order to have customised African marketing
messaging/content (Okyere-Manu, 2018).

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FAITH-BASED MARKETING

 What is Faith-Based Marketing?

Definition

Faith-based marketing is not just about faithfully communicating content that is based
on religious principles, but it’s also about adapting the content/messaging to give it
the desired impact. Gilgoff (2018, p. 1) describes faith-based marketing as, “the
cross-functionality and integration of religious faith into marketing activities and
business ventures”.

This definition of faith-based marketing proves that, this is an incredibly nuanced and
more difficult issue that brings with it complex matters and controversial views.  

Brief historical background of the issue

The debate and controversy surrounding the use of marketing content by faith-based
organisations is over two decades old and still raging. Whilst marketing practitioners
have been turning a blind eye towards the overwhelming concerns of Theologians
who oppose the use of faith-based systems for marketing content – this issue has
developed to measurable proportions, even more so with the rapid growth of social
networking, internet advancements and/or online lifestyle (Gilgoff, 2012).

According to Seiple (2015), online behaviour shows that humans do not define
themselves demographically. “That explains why there are no Facebook groups for
traditional segments like women 25-54 or households making $75k+/yr” (Seiple,
2009 p. 5). Many scholars have described how people define themselves according
to their ‘shared interests’ with others (Gilgoff, 2012; Okyere-Manu, 2018; Seiple,
2015), which is why there are social media groups for Travel, Faith-based interest,
Scrapbooking Fanatics, Yoga Fans, fans of Orlando Pirates etc.

It is those ‘shared-interest’ groupings through the advancement of social networking

that has somehow ‘awoken’ marketing practitioners to focus on these self-segmented
groupings. With this rapid growth of online/digital era, marketers are slowly moving
beyond demographics because the internet lets marketers glimpse into people’s
beliefs, passions and interests according to their behaviour online. This insight is
what predicts behaviour much more accurately than any other consumer
segmentation process. So social media has contributed to the growth of this issue.

 Characteristics of faith-based marketing

The one very unique feature or character of the faith-based market that qualifies it to
be part of contemporary marketing issues is that: All faith based organisations are
compelled to meet/gather consistently and constantly at some place, at a given time
of the week/day/year. Evans (2015) points out the various mandatory lifetime days of
gathering: for Christians this is every Sunday, whilst Muslims have daily prayer
sessions and Buddhist observe Uposatha at chosen times). Bilgin and Nakata
(2016) refer to this unique character as a ‘given audience’.

According to Gilbert (2018), no other market/consumer segment has this feature.

Whilst sports fans, tertiary students or passengers in a taxi, can and have been
referred to as a ‘given audience’ - unlike religious gatherings, their gathering and
proximity to marketing content is limited, a student is only a ‘given audience’ whilst
attending classes, and interacting with the marketing content.

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 Viana (2011) suggests that “Faith-based communications tells a different tale of a
lifetime devotion to a certain belief system that becomes the basis of decision-making
for all consumers in this segment “.  

That means the opportunity for information to spread, including product

endorsements, is huge, particularly since the faith-based market places full
unquestionable trust on recommendations of faithful peers. No other form of
segmentation is like this. The following are some of the more generic features of this
issue as illustrated in a recent study by Olotewo (2016):

Faith-based marketing content has depth -  because it aims to ultimately meet the
deepest longings that may only be temporarily addressed by products and services. 

Improves the quality and maintains the culture of society - faith-based marketing
provides a balanced perspective in that there are great things about each culture,
while also challenging the areas in which a culture is flawed (i.e. family honour
killings, complete loss of independence in a patriarchal society, or loss of community
from hyper-individualism).

Faith-based marketing engages all demographics – religion/faith/the gospel is a

world movement rather than representative of one ethnicity, it has the capability to
reach all audiences, industries, and socio-demographics. There is no other narrative
that speaks as sharply and comfortably into every culture than religion.

 The impact of faith-based marketing on businesses

Incorporating the marketing-mix in faith-based marketing

The success factor of each core in the marketing mix is essential to gain the type of
consumers that is looking for a product that fulfils their faith, traditions and beliefs. To
ensure success in a faith-based market the following marketing mix strategy
examples should be considered:
- Product: A pragmatic value-based product strategy, focus on the solution more
than the product (Viana, 2011) – RHEMA church selling its own branded water to
thirsty congregants.
- Price: A Psychological pricing strategy, setting slightly lower prices than rounded
numbers – RHEMA water costs R5.99 per 500ml and R8.99 per 1lt bottle
(Olotewo, 2016).
- Promotion: An endorsement/peer-to-peer promotion strategy, the art of switching
positions, a trusted member of the church covertly marketing the product -
Founder of RHEMA Church, Pastor Ray McCauley constantly taking a sip from
the branded water bottle (place on the podium/pulpit for everyone to see) as he
preaches (Olotewo, 2016).

Benefits - Economic impact of the faith-based market

Faith-based marketing has an unbelievably wide reach, so expansive that in a survey

carried out by the World Economic Forum (WEF) in 2010, eight out of ten people,
self-identified with a particular faith tradition. According to the WEF, this translates to
unimaginable economic capacity with an estimated purchasing power of:
- $5.1 trillion p.a. in the USA
- $3.5 trillion p.a. in the UK
- $7.1 trillion p.a. in Europe
- $90 billion p.a. in Africa

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 Challenges – Economic backlash from the faith-based market

Whilst it is important that organisations should make a concerted effort to synergise

their business plans with a relevant faith-based message whether overtly or covertly,
in-order to penetrate the market share as illustrated by WEF survey of 2010. Lester
(2007) points out that, It is more important that organisations should strive never to
communicate in a demeaning, offensive or derogatory manner towards any religion
consciously and/or subconsciously, at the risk of economic backlash. Organisations
who been known to suffer this type of backlash include:

- 33 000 Woolworths social media followers (supposed consumers) ‘unfollowed’

the brand in 2010, after it announced the discontinuation of selling Christianity
magazines in-store( Daniel, 2010).
- A Pick n Pay store in Tokai, Cape Town was threatened by a shutdown from an
angry Muslim community when images were posted on social media platforms
showing Halaal poultry products and yoghurt packed in a ‘general freezer’
together with pork products (Gilbert, 2018).

 How to strategically incorporate faith-based marketing?

There are various ways in which an organisation can and should respond to the faith-
based market but for the purposes of this paper on a few examples will be discussed.
In a recent study Seiple (2015) points out that, the magnitude in numbers of the faith-
based market, whether as a function of culture or conviction, tells us that, “faith can’t
help but influence and impact every sphere of global life, and every sector of a global
economy, even those spheres that are unobservable to the outside eye” - In other
words, the influence of faith in the business world is so pervasive that it’s invisible.

The unobservability/invisibility of faith as a way of life is so influential that we forgot

most business plans, marketing strategies, binding contracts and trading traditions
are based on centuries old faith-based traditions (Daniel, 2010):

- The constitution of South Africa and constitution of most countries

- Taking an oath (at work, court, community or school)
- Dedicating one day of the week to rest

Some companies incorporate faith-based ideas in their operations, mission

statements, or even their packaging, subtly or overtly (Viana, 2011):

- Chick-Fil-A, is a USA franchise chicken burger outlet that closed down its South
African operations due to non-profitability in 2001. Chick-Fil-A includes Christian
messaging on the packaging of their products.
- Forever 21 is a USA clothing chain with shops in South Africa. Forever 21 has
Bible verses printed on all their shopping bags, and the company gives sizeable
charity to orphanages, churches and Christian educational institutions.

Some companies integrate religion and faith into entertainment and business. Such
companies specialize in marketing faith-based products by creating special
partnerships that target specific groups, such as the family-based audience (Viana,
2011):

- Dangal is an Indian Hindi film directed by Nitesh Tiwari and released in 2016 to
the tune of $340 million worldwide
- The Passion of the Christ is a Christian film directed by the renowned Mel Gibson
and released in 2004, it went on to gross over $600 million worldwide.

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EVENT-TOURISM MARKETING

 What is event-tourism marketing?

Definition

Getz (2007) argues that, although there is no known formal definition of event-
tourism, it is a well-known contemporary marketing issue that involves event
planning, infrastructure preparations, media production and communication
management. As with all contemporary issues in marketing, event-tourism marketing
also entails, acquisitioning/sourcing of assets, allocation/control of funds, human
resources and other resources to achieve the objectives of the destination/host.

Most scholars agree that event-tourism is part of Special Interest Tourism (SIT),
where travellers embark on a journey with a primary motivation of visiting/partaking in
a specific activity (George, Henthorne & Williams, 2018; Getz, 2007).

Getz (2008) further defines event-tourism marketing as a systematic plan to develop

and market events at a specific destination for those travelling in persuit of SIT.

Brief historical background on event-tourism

Getz and Page (2016); George et al (2018) agree that, it’s not clear whether ‘event-
tourism’ as a term was used at all prior to 1987, what is clear from most researchers
and scholars is that, the term gained some steady popularity following a document
from The New Zealand Tourist and Publicity Department (1987) that reported,
‘‘event-tourism is an important and rapidly growing segment of international tourism’’.
That document ignited a spark that saw this issue being the most talked about within
the realm of SIT.

Getz and Page (2016) developed a chronological list of progressive growth in event
tourism as follows:

PERIOD PROGRESS
 Events were not yet attractions
Informative years  Festivals, conferences and conventions were business
related
 1960s and 1970s the events sector started intensifying
The 1980s  Event-tourism expanded dramatically as a field within SIT
 More research and studies were carried out
 Annual events at certain destinations became popular.
 Developing and 3rd World economies joined in
The 1990s  Event-tourism became popular in developing countries.

 Academic degree programmes were developed at various

tertiary institutions globally to focus on events/tourism
management.

Beyond 2000  Event-tourism marketing is a fully fledged activity of events-

tourism

 Developing countries are competing with developed

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 economies globally for the attention of SIT tourists.

 Characteristics of event-tourism marketing

Calabuig, Camacho, Gonzalez-Garcia, & Sanz (2018) state that a well developed SIT
strategy must include a clear framework for event-tourism, using an integrated
approach aimed at development and marketing of all planned events at a particular
destination.

To understand the features that make up the characteristics of events-tourism it is

important to view this issue from two sides, the demand and the supply ().

The demand characteristics

The demand characteristics represent the consumer perspective which display the
following characteristics: increased importance of outdoor activities, awareness of
ecological problems, educational advances, aesthetic judgement and improvement of
self-improvement and society development goals (Camacho et al., 2018).

The supply characteristics

On the supply side, the characteristics represents the activities of the marketers as
follows (Calabuig et al., 2018, p. 153):
- Event-tourism marketing is seen as a “prime force in the expansion of tourism”.
- This contemporary issue in marketing serves to indicate qualitative differences
from those of mass tourism by highlighting ‘socially just forms’ of tourism.
- Event-tourism programmes are clearly defined by the modern tourism descriptive
prefixes such as eco-tourism, adventure-tourism, cultural-tourism etc.

 The impact of event-tourism on businesses

Incorporating the marketing-mix in event-tourism marketing

Event-tourism is widely recognised as a service sold to the tourist (consumer), the

tourist experience is the product (Kim & Walker, 2012). As with all products the
‘tourist experience’ must be designed to highlight the benefits for the consumer, it
must satisfy the consumer’s needs, fit the consumer’s budget and be communicated
on platforms that are convenient to consumers (that is a wholistic view of the
marketing mix).

During the process of marketing a tourism product, the marketers must focus on two
facets of the following marketing mix components (Kim & Walker, 2012): 

- Product: tourist experience is an intangible, and non-storable product/service.

Therefore, the quality of the product is directly related to the quality of the service
a tourism business provides. – When purchasing air-tickets from FlightCentre, the
consumer expects to be treated like she is on holiday already (at that particular
time FlightCentre and SAA are one and the same to the consumer).
- Price: In determining the pricing strategy of the product marketers must consider
the following three key factors:

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 *operating costs: which include fixed costs (these are costs that remain same
regardless of the sales) and variable costs which include costs for renumeration,
transportation, maintenance/repairs, cost of production etc.

*profit margins: the amount calculated from sales after all other business costs
have been settled.

*cost of distribution: Commissions of intermediaries, these are fees paid to the

intermediaries to distribute and sell your product.

Benefits

The economic impact of event-tourism according to the world tourism receipts as

analysed by Almedia-Garcia, Balbuena-Vaquez and Cortez Macias (2015):

Continent 2008 2010

World 677.0 663.6
Africa 12.8 13.7
Americas 142.8 132.5
East Asia/Pacific 92.0 102.2
Europe 234.5 230.4
Middle East 12.2 11.8
South Asia 4.7 5.0
*Calculated in US$ billions

Challenges – Economic inactivity within the tourism sector

Oppurtunity costs: if resources are utilised for the development of tourism they cannot be used in
other sectors of the economy; if labour is employed in tourism, it is not available for use by other
sectors of the economy and if capital is invested in tourism, it cannot be invested in other projects
(Almedia-Garcia., 2015).

Political instability and social conflict: Countries that have experience long-drawn out
periods of wars (Yuglosavia, Uzbekistan, Mali etc) experience little or not tourism al
all during the war and during the rebuilding period (Almedia-Garcia., 2015).

Risk of imports flood: Should the planned event be heavily reliant on imported goods and services,
there is a risk that locally manufactured goods/production may be displaced (Almedia-Garcia.,
2015).

 How to strategically incorporate event-tourism in marketing?

There are numerous ways and mea to strategically incorporate event-tourism into a
destination marketing strategy. The very first step is, to carry out secondary research
- organisations should consider reviewing strategies of destinations that have
experience in this field, Belaska (2015) illustrates with the following examples:

- The city of Vienna in Austria hosts the world’s largest music festival every year
the ‘Donauinselfest’. In 2014 it was attended by 3.1 million people and it went on
without a glitch or security threats.
- ‘Mawazine’ is an annual cultural music festival that takes place in Rabat, a city in
Morocco, it is organised by the royal family. In 2014, the festival saw 2.6 million

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 attendees gathered. No incident/accident was report for the duration of the
festival.
- The largest music festival held annually in the USA is known as ‘Summerfest’, it’s
held at the Henry Maier Festival Park in Milwaukee, Wisconsin. The festival
takes place in Summer (June-July) and lasts for 11 days. In 2014 Summerfest
attracted 850 000 festival goers and it is considered as one of the safest global
events of the world.
- ‘Rock in Rio’ is a festival concept launched in Rio de Janeiro in 1985. It has
since been franchised over five cities across Spanish and Portuguese speaking
nations. Rock in Rio is the most successful music festival in South America,
boasting a crowd of over 700 000 spectators in 2014.

FOUTH INDUSTRIAL REVOLUTION (4IR) MARKETING

 What is 4IR?

Definition

We all recall History lessons at school about the industrial revolution that introduced
the; steam engines and factories for manufacturing goods, which brought about
global changes in the economic landscape. What we don’t recall is that; there were
two subsequent industrial revolutions that followed:
- The age of science and mass production
- The digital revolution
Hawthorne, (2018), and Oosthuizen, (2017) agree that, with both these industrial
revolutions the world experienced heightened anticipation in preparation for the
dramatic technological expansions, unimaginable advances and social changes.

Once again, the entire world is standing at the brink of such heightened anticipation,
as the globe moves steadfastly towards a new era called ‘The Fourth Revolution’,
sometimes knows as ‘4IR’ – which essentially means, the fourth known iteration of
the first industrial major change, Hawthorne (2018).

Oosthuizen (2017) further defines 4IR as, a massive overhaul of industry standards
and goods production whilst using advanced technological inventions. Most
scholars agree with this definition (Iraki, 2018; Knott-Craig, 2018; Rodny-Gumede,
2019). Rodny-Gumede (2019, p. 2) elaborates further and defines the major 4IR
technologies as: “vogue new features and products like 3D printing, robotics,
nanotechnology, data mining and bio-tech”.

Brief historical background of 4IR.

Knott-Craig (2018) illustrates the brief historical background of all four industrial
revolutions as follows:

PERIOD REVOLUTION TYPE ADVANCES/PROGRESS

 Invention of steam engine
1765 – 1784 1st Industrial Revolution
 Introduction of factories
 Hydro & steam power
generation
 Mass goods production
1870 2nd Industrial Revolution
 Use of electric energy
1969 – 1989 3rd Industrial Revolution  Advanced electronic
developments

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  IT used for automization
 Advanced Cyber-physical
systems
 Genetic sequencing
Current 4th Industrial Revolution  Artificial intelligence (A.I.)
 Miniaturized sensors
(Nanotechnology)
 3D printing
 Characteristics of 4IR marketing

To best identify the characteristics of 4IR, this paper discuses a few variables or
types of technologies that influence the progress of the 4IR. The following variables
are features that make up the characteristics of the 4IR.

A.I. becomes a standard form of communication: Scientists and IT experts have

developed and are advancing these developments, whilst marketers are finding best
use for artificial intelligence in various ways. The most common form of A.I. assisting
marketers to reach their objectives is; the advancement in the field of digital gadgets,
this allows computers and phones to be programmed to learn and make decisions on
their own, like accepting and interactive with content from marketers (Hattar, 2018).

The Internet Things (IoT). The IoT is a term coined by Keven Ashton in his
presentation to Proctor & Gamble (Ashton, 2009). It is the ability of many non-
computers (cars, manufacturing machines, appliances, hospital equipment, etc.) to
connect to the internet and to each other as a network.

Mass Data. Hattar (2018) defines this characteristic of 4IR as a ‘marketers dream’,
made up of massive connectivity and the blending of the digital and physical worlds.
Everything, from our smartphones to our manufacturing plants to our mattresses to
our refrigerators, is now producing data. Mass data platforms assists marketers to
join, analyze, and make meaningful marketing decisions as per data availability

Robotics. Robotic and other related devices are beginning to play a key role in a
variety of marketing related fields, from FMCG products, to mining/exploration
communication and health advancement Iraki (2018). With robotics, marketers have
the ability to understand the consumer better , perform jobs that we previously could
not and speed up other tasks, Hattar (2018).

Augmented Reality VS Virtual world. This is basically a simulated reality as

suggested by Iraki, (2018) and Hattar, (2018). Hattar, (2018) further explains that,
the same technologies that we have experienced with the enormous success of
‘Pokemon Go’ is the same technology that will progress into widespread augmented
reality. It is without a doubt that, the idea that marketers can now digitally add to the
physical world or create entirely new digital worlds is tantalizing for marketers and
consumers alike.

Advanced Security Systems. In his recent study Knott-Craig (2018) point out that, the
recent hacking issues have made cyber-security a massive issue for many
companies. Responding to this, marketers are beginning to require all sorts of new
authentication, from simple two-factor all the way up to bio-identification for
consumers to access and interact with digital content, passwords, finger-print ID etc
(Knott-Craig, 2018; & Hattar, 2018).

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  The impact of 4IR marketing on businesses

Incorporating the marketing-mix in 4IR marketing

Oosthuizen (2017) and Knott-Craig (2018) agree that, the words ‘digital’ and ‘4IR’ are
the most popular terms in marketing currently. It goes without saying, that the Fourth
Industrial Revolution (4IR) has impacted every facet of society, work and business.

Marketers should now ask the question: How to incorporate the business’ marketing
mix to compete in the 4IR?:

- Product: Revive the way in which products are marketed to suit consumers of the
4IR. The design and features of the product will help sell and illustrate the
benefits of the produts, but good quality products and unique branding will help
companies to reflect the price charged (quality) and attract attention (branding),
Oosthuizen (2017).
- Price: Implement a ‘penetration pricing strategy ‘, this is best for new market
entry. The idea is to keep prices low until established in the market, Oosthuizen
(2017).
- Promotion: The following promotional strategies are best for 4IR marketing;
Influencer Content, Email advertising, Paid Search Results and Digital affiliate
marketing, Knott-Craig (2018).

Benefits

As discussed above, the 4IR is responsible for the convergence of multiple digital
fields. Robotics, Artificial Intelligence, machine learning, nanotechnology and
biotechnology are only a few of these digital fields. van Burg and Romme (2014)
point out that, as new technology emerges and new markets develop, the scope of
marketing influence will continue to grow.

Currently these are the benefits enjoyed by marketers and companies who are are
progressing with technological advances are of high economic value. The economic
impact for these services is so enormous that it can only be analysed using the 60
second time scale (van Burg and Romme 2014):

- Email sent/received = 187 million per minute

- WhatsApp messages = 38 million per minute
- Text messages = 18 million per minute
- Internet searches = 3.7 million per minute

Challenges

- Challenges in patenting – Schwab (2016) points out that, there is little doubt that
sensors can easily be patented, however, the communication, processing and
visualization of data are challenging fields when it comes to patenting.
- Redundant careers - Some jobs will become less popular while others will
become obsolete. It is not yet known which professions will thrive/die, the
assumption is that, the jobs that robots are unlikely or unable to perform will
become more popular (Schwab, 2016).
- Today’s technology will be old and less useful by 4IR standards. The top of the
range computers currently in use are already obsolete the second it goes into
production (Schwab 2016).

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  How to strategically incorporate 4IR marketing?

Some scholars in the 80s did not believe that marketers and companies alike would
even begin to fully comprehend the scope and progression of the 4IR (Leonard-
Barton, & Kraus, 1985; & Stenberg, 1985), because of the complications associated
with it.

For this reason it would be advisable for marketers and manufacturers to start with
the following basics as examples of the key roles they will need to play in the 4IR
(Tredger, 2018):

- Companies must start developing nanotechnologies’ compliant products

- It is import to rebalance the marketing budget inorder to increase sales with more
marketing-sourced leads.
- Developing machinery and robotics compatible with automation technology
- Modernise existing marketing tools = Recognize which systems are stalling
progress back

- Refresh your brand to appeal to 4IR consumers. The millennials and Generation
Z consumers of 4IR era are looking forward-looking, not backward. Brands must
always remain; sharp, sleek, vibrant and energetic.

ADWORDS MARKETING

 What is Google Ads Marketing?

Definition

Plaza (2009) simply defines Google Ads as an online marketplace where advertising
agencies and marketers purchase digital advertising space, but, there is much more
to this contemporary marketing issue than just purchasing advertising space.

To put these words into perspective, some scholars describe how Google Ads work
(the process), in-order to understand what it is (the meaning), Haeckel (1999) and
Kumar (2016), as illustrated below:

From the consumer market

When a consumer searches for information on Google, the first five to ten results of
the search are usually a list of adverts by companies that offer that type of service.
Experienced internet users usually scroll down to find their results, but most
consumers do click on the advert links – which means the company that put up that
advert must then pay Google because the consumer has ‘interacted with the advert’,
Haeckel (1999) and Kumar (2016).

From the consumer market

Haeckel (1999) and Kumar (2016) describe the business market category as a
process where marketers select/buy keywords that are mostly likely to come up on
their list of services or products. These words are attached onto prepared adverts as
‘tags’, e.g. UNISA will tag the following words ‘scholarship’, ‘post-graduate’,
‘education’, ‘student’. Knowing that UNISA is not the only tertiary institution in the
world, Google auctions these keywords to the highest bidder (marketer/advertiser).
Once a consumer searches for one or a group of the keywords, UNISA and the other

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 relevant adverts come up, if a consumer clicks on UNISA advert, UNISA must pay
Google a premium for that service – that payment plan is called ‘Pay-Per-Click’
(PPC).

Brief historical background of Google Ads – according to the Google Economic

Impact report

2000 - AdWords was launched, advertisers paid for the service monthly.
2005 - Google launched a service teaching advertisers/users about AdWords.
2013 - Google added enhanced applications to AdWords to aid advertisers.
2015 - Gmail Ads was integrated with Google AdWords (for a wider reach).
2016 - Google enhanced AdWords, with the new format, advertisers could choose
to have a series of images appear in search results related to them.
2017 - Google revised AdWords daily budget caps, from120% of pre-set daily
budgets, to a maximum of 200%. 
2018 - Google rebranded Google AdWords to become Google Ads

In 2019, Google announced, they will offer a full range of advertising functions for
small businesses who don't have the time or resources, so Google Ads became an
advertising agency with the most profitable revenue stream of all online advertising
(Callahan, & Lewis, 2018).

 Characteristics of Google Ads

Contemporary marketing issues belong to a universe that is forever expanding,

Google Ads is no exception. As illustrated above (brief history) Google Ads has
changed some things, improved some services, demoted or taken away other
functions and they are constantly adding new feature/services

For marketers, it is vital to stay on beat with the latest characteristics of Google Ads’
developments in-order to gain that competitive advantage over their competitors.
Below is a summarized look into some of the most important characteristics/features
and how best marketers can use them to their advantage.

User Interface (UI): This feature allows the marketer to perform consumer
segmentation tasks that previously cost hundreds of thousands, this means
marketers can now at the press of a button; target households by income, review
publishing/landing pages’ performance (Coleman, 2017).

Call only ads: Call only ads is a feature that puts Google Ads on a class of its own.
The marketing messages and adverts linked to this feature are optimized for phone-
call click with in-built autodial. By simply clicking on the content/advert/marketing
message, the consumer is automatically connected to the supplier/retailer/advertiser.
(Coleman, 2017).

Time lag reporting: This characteristic assists marketers to ascertain how much
time it takes the average consumer to reach the ‘check-out’/purchasing phase. It is
an important feature of Google Ads because it allows the marketer to track
interaction. If a consumer takes over 3 days to complete a purchase instead of one
day, then Google Ads has another feature to help speed up the purchase, it’s called
‘Remarketing’.

Remarketing: This feature can be referred to as ‘a stalker’ because it tips off

marketers to display their adverts to those who have visited their website before (on
the same platform/gadget). Simply put, once a consumer visits a website that has

14
 Google Ads, that consumer has unknowingly ‘signed up’ to receive content from that
retailer/website, whenever that consumer goes online, those adverts will appear (at
least for a few days after the initial visit), Coleman, (2017).

 The impact of Google Ads on businesses

Incorporating the marketing-mix into Google Ads

Google Ads has an undeniable impact on the way marketers are interacting with the
consumers. It is clear that Google Ads has become a crucial part of the marketing
mix and must play a key role in every marketing strategy as follows:

Product: Businesses have to keep developing new products and adding new
services to expand their reach and grow with their consumers (Lester, 2007) –
UNISA has grown and diversified adding services like, ‘free browsing’ for students to
connect onto MyUnisa regardless whether they have airtime/credit on their phone to
do so or not.

Price: It is advisable to implement a progressive pricing strategy that satisfies the

different kinds of consumers. Notably, ‘Freemium’ is a new pricing strategy that
allows the business to offer free products, whilst selling the premium features of the
same product – Gmail, offers free email services, but they also have a premium
version that is used by businesses (Lester, 2007).

Promotional: It would benefit businesses to adequately distribute their level of

intensity over the following promotional strategies/elements; advertising, public
relations, direct marketing. Businesses use more than one promotional element to
induce consumers to instantly purchase a service/good (Lester, 2007).

Benefits

Although Google Ads is a contemporary ‘easy to use’ marketing issue, it is still

important that business have some level of; creativity, technical know-how and
budget optimization for their marketing content to be effective. Here are some
benefits for businesses who get it right, according to the Google Economic Impact
Report:

- Businesses stand to gain an average of $2 for every $1 spent on Google Ads.

- Google Ads has proven to be much faster than Search Engine Optimisaton
(SEO), it generates expanded traffic leads, advertisers can focus on multiple
keywords (tags) at a time.
- There are over 1.5 billion Gmail Users in the world and Google Ads are
run/displayed on all Gmail accounts (under the promotions tab)

Challenges

- Google Ads is a DIY marketing element, marketers who are not familiar with it
might make a loss than generate revenue for their companies (Smith, 2016).
- Google Ads allows marketers to use their competitors name, tags and keywords
when programming adverts or marketing content, this might prove detrimental for
smaller business (Smith, 2016).

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  How to strategically incorporate Google Ads marketing

The most vital point when using Google Ads is that, companies must employer
marketers who are well-experienced in Pay-Per-Click (PPC) systems, Haeckel,
(1999). Should companies not have an Google expert, Google offers the following
academic/training programmes for novices:

- PPC University
- Google Ad Words Learning Centre
- PPC Chat

The following are the most important details/steps to be considered if a business

aims to run a successful marketing campaign online, Kumar, (2016):

- Companies must conduct ‘keyword research’ to gain insight on which words

consumers use to search the internet (so they can bid for/buy those words).
- PPC experts should always try to include a bid on a few “problem” keywords, that
gives companies a chance to direct their adverts to “solution” content on their
website.
- Just like planning a holiday/pay-day/ marketing campaign, companies should
create a custom schedule to ensure they’re advertising at the best profitable
hours.
- For retailers to outsell their competition through they must ensure that, their
adverts display high quality images, accurate prices, to allow the consumer to get
all the information they need. This brings high-intent clicks, which are generally
result in purchases.

NEAR FIELD COMMUNICATION (NFC) MARKETING

 What is NFC marketing?

Definition

Thomas (2011), describes NFC marketing is a technology derived from Radio

Frequency Identification (RFID). Walker, (2012) further points out that, it is a
proximity marketing element used to interact with devices at a small distance
(Bluetooth is an example of NFC). Thomas, (2011) and Walker, (2012) agree that,
NFC works by creating ‘close contacts’ that allow devices or a device and a physical
object to communicate without having to set up a prior connection.

Brief historical background of NFC Marketing (Arslan, & Oz, 2019):

1983 - The patent for creating RFID was awarded to Charles Walton, although many
contributed to the invention, Walton was awarded ten patents in all for various RFID-
related inventions.

1997 - RFID first used in toys for children.

2002 - Sony and Philips agreed to establish a technology specification and created a
technical outline that enabled different devices to connect wirelessly

2004 – 2009 *Nokia, Philips and Sony established the NFC Forum

16
 *Specifications of NFC Tags were established
*Nokia launched the first NFC enabled phones
*Samsung launched the first Android and NFC enabled phones

2010 - Nice, in France became the first city to launch a wireless mobile project,
providing locals with NFC mobile phones, bank cards, and a "bouquet of services"
covering transportation, tourism and student's services

2013 - Samsung in partnership with VISA developed and launched mobile payments
systems.

 Characteristics of NFC Marketing

This form of marketing operates on wireless technology. NFC is a communication

tool used by marketers to give instant access to any digital data and information
from your mobile device – that is one of the unique characteristics of this
contemporary marketing issue. Below is a summary of the unique
features/characteristics of NFC Marketing according to Beaconstac (2018):

The peer-to-peer mode: This mode involves an interaction and exchange of data,
between two mobile devices whilst communicating with each other via NFC – When
a cell-phone user exchanges contact information (vCard) with another cell-phone
user, transferring content such as photos or videos is also an example of the ‘peer-
to-peer’ feature. Retailers/restaurants use NFC marketing by allowing shoppers to
connect onto their WIFI only to receive scores of that retailer’s adverts.

The reader mode: This characteristics means that, a gadget can act like an "active"
wireless chip reader. This feature allows the user to read information or trigger
actions by simply "tapping" or "bumping" a chipped device close to a NFC tag.
Examples would include payments that allow a customer to ‘tap’ their bank card onto
a pay-point (speed-point), without typing in any information the speed-point reads
the bank card and effects payment.

The ticket validation mode: This is the most utilised characteristic of NFC
marketing. The validation mode works like a smart chip that matches certain
characters on a bank note, sports ticket, ID card or any coded document. The
consumer presents the item (bank note, ID card, sports ticket) to a device that sends
the information to the NFC device to check the validity of the presented item. When
a soccer fan enters the stadium he must present his ticket to a gadget with a laser
light that reads and confirm validity to grant entry (that is one of the many examples).

 The impact of NFC Marketing on businesses

Incorporating the marketing -mix in NFC Marketing

The possibilities of success for those companies that can plan, develop and
implement a marketing-mix into their NFC Marketing are endless (Cassidy, 2015;
Evans, 2011, & Kotler, 2017), they provide analysis of how companies can do this
without glitches.

Product: Besides the fact that companies need to invest in innovative product
development to cope with the advancements in the NFC space, companies must also
place products with RFID tags strategically, so that consumers do not need to be

17
 stuck in a certain position/space for them to get a signal (Evans, 2011) – when a
customer scans an item to check the price on an item at Makro, the barcode of the
product must be compatible to the scan.

Price: Because of the low costs associated with developing NFC Marketing, it is
widely assumed that companies would have save money in the regard. Therefore the
best pricing strategy would be economy pricing, which aims to attract the most price-
conscious of consumers (Kotler, Kartajaya, & Setiawan2017). Flight Centre and other
travel agencies use this type of pricing strategy – when you go buy an airfare ticket at
the airport, it is more costly than buying it online. ABSA and other banks also use
economy pricing, eg, it’s cheaper to withdraw money from an ATM than inside the
bank (from a teller)

Promotion: The best promotion strategy for NFC is the mobile marketing strategy,
this type of promotion will best unleash the full potential of NFC marketing. It must be
noted that a mobile marketing strategy does not exist in a silo – it is part of a
broader/overall marketing strategy (Cassidy, 2015), but for the purposes of this paper
it will not be discussed in detail.

Benefits – as illustrated by Kemp, 2017:

NFC bridges the on/offline customer experiences: NFC can provide the link as
customers enter the retailer to interact with the brand. CNA in South Africa enabled an
innovative campaign in 2018 where children entered and participated in an Easter Egg
Hunt competition using their app to help build store traffic and strengthen brand loyalty.

One-on-One marketing. NFC affords companies the opportunity for a direct, user-

initiated connection that enables companies to gain insight into the customers needs and
develop tailored offerings that customers value.

NFC brings artificial intelligence to objects. Whether a consumer is standing at a

bus stop in the suburbs with no airtime credit on the phone or is about to board a taxi
with in the rural areas with no WIFI in sight, as long as there is an NFC tag, that
consumer will be able to tap onto the poster/gadget/devise and read the information
where there. A poster on a street pole can be tagged with a chip that allows it to
share information with consumers who come close to it.

Challenges – as illustrated by Watson, 2016:

Identity theft and fraud: While NFC provides some security against transactional
fraud, there has been some successful incidents of theft and fraud worldwide.

Spyware or Malware Interference: On a few reported instances, hackers have

managed to transfer a form of spyware or malware onto gadgets, systems and
mobile phones through an interaction with that device.

 How to strategically incorporate NFC Marketing?

Some companies choose to focus on proximity marketing, some on omnichannel

strategies or search engine optimisation, which ever strategy is chosen, there’s one
marketing element to include on all strategies, that element is NFC. Below are some
suggestions on how to strategically incorporate marketing (Thomas, 2011):

18
 - Attach tags onto advertisement: This will transform any advertisement into
an interactive experience. Tagging posters/signages will allow consumers to
access more-in-depth product information, about the brand with just a tap.

- Link NFC customers to a loyalty program – this will boost engagement with
customers and increase chances of purchase action by customer.

- Reviews and ratings – If a company provides a service that lets customers

tap to leave a review at the checkout counter/tab, clients are more than likely
going to leave a favourable/positive review

- Infotainment – A very powerful use of NFC marketing is educational.

Companies could give access to the ingredients of a dish, tutorial videos,
warranty cards, product description and the list is endless. Woolworths has
this option in some selected stores/branches.

AN AFRICAN PERSPECTIVE

The continent of Africa is made up of 54 countries, each country boasting at-least two
types of precious mineral resources with an estimated 2500-3000 different spoken
languages. The astronomical economic growth and rapid technical developments in
Africa demands that marketers leverage value from African indigenous knowledge
systems (AIKS) to keep their marketing content relevant (Bright, 2017; Iraki, 2018;
Okyere-Manu, 2018; Olotewo, 2016; Thomas, 2011).

However, most scholars agree there are factors that exist which must be taken into
consideration when undertaking marketing projects in Africa, factors that concern
most (if not all) consumers within the continent. Those factors include: the economy,
socio-political intricacies, language barriers, currency fluctuations and even wars
(Okyere-Manu, 2018).

 How contemporary issues in marketing affect businesses in an African context

Faith-based marketing

Beliefs drive behaviour and ‘believers’ are the largest segment of consumers in
Africa. (2.1 billion) and in the United States (231 million). As marketers stop relying
on out-dated demographics and begin to monitor belief instead, they will recognize
the value of Faith-Based Marketing (Okyere-Manu, 2018; & Oletewo, 2016).

Although demographics are far from an infallible crystal ball on the future of faith-
based consumers in Africa, trends in population growth and family do correlate
strongly with religious attitudes. Whilst the western world might be losing its
attachment to faith-based practises and beliefs, as can be clearly seen in an
increasingly secularized Europe, these trends point to startling opposite direction,
which is a new significance for Africa (Okyere-Manu, 2018; & Oletewo, 2016).

Okyere-Maru (2018) and Oletewo, 2016 agree that because of this Africa is now
home to the world’s largest Christian and Muslim communities. Ethiopia’s Christian
population, at 6 million in 1900, will grow to a projected 100 million in 2050. In
Nigeria, the population in 1900 included 4.2 million Muslims and 180,000 Christians,
today, the country claims about 80 million of each faith, and each should grow by
another 100 million by 2050 (Okyere-Maru, 2018; & Oletewo, 2018).

19
 Olotewo (2016) highlighted that, marketers wishing to gain some traction in an
African faith-based market must draw inspiration from:
- Leveraging value of AIKS
- Inherent belief systems which the faith-based communities hold dear
- Valuable traditional virtues like honesty, stead-fastness, kindness, integrity, and
justice. 

If marketers are to understand how continental changes in Africa affect the potential
impact of the faith-based consumers, ignoring AIKS is not an option, as it will result in
failure of any marketing effort directed to these consumers.

Event-tourism marketing

As it has been stated by many scholars in research that, Africa’s population is the
youngest in the whole world with at-least 20% of it’s population being youth
(Boucher, Calitz & Cullen, 2017; Okyere-Maru, 2018). These are economically active
young people with purchasing powers.

Boucher et al., (2017) remarked that, firms and organisation who recognising this are
attracted to the continent for investments and businesses linked to event-tourism.
However, key to the success of these investments and partnerships is AIKS.
Accordingly this means in Africa, events are not just a programme on the calender,
they are expected to:
- Provide some form of economic empowerment
- Create/establish/ a favourable image for the destination (against Africa’s image)
- Address historical imbalances of the past

Boucher et al., (2017) estimates that global events hosted by African destinations,
like the Cape-Town Jazz Festival, Mawazine in Morocco, Grahamstown Arts Festival
and the Durban July combined bring in an estimated $10 billion worth of economic
benefits. These are examples of events that have adopted AIKS into their strategies
and restored the values African knowledge systems.

4IR

The future is 4IR and the success of this future is in the hands of African youth. That
is why it is so important for firms wishing to implement 4IR marketing in Africa to
learn, adapt and adopt AIKS in-order for their products and messaging to be
appealing to the youth (Tredger, 2018). Various researchers agree that, whether or
not Africa can leverage on the value of 4IR and address many of its challenges will
depend on the buy-in and participation of its youth (Tredger, 2018; Knott-Craig, 2018;
Rodny-Gumede, 2019).

This tremendous growth means that, Africa and the rest of the world are on the verge
of yet another industrial revolution, and firms doing business in Africa are on the cusp
of a colossal opportunities as Africa is the fastest growing continent (Iraki, 2018).

Africans too have an opportunity to make the best of this industrial revolution. Iraki
(2018) point out the 3 options Africans have with regars to adopting 4IR:

- Africa can sit by and watch the rest of the world move on to 4IR
- Africa can ‘leap-frog’ this revolution, as they did the Second Industrial Revolution
- Africa can move itself up the value-chain and be champions of 4IR

20
 There are firms that have taken up to 4IR without hesitation in Africa and made it
work, firms like Zipline, distributing/delivering much needed medication in the far-
flung areas of Rwanda by use of a remotely controlled drones. Iraki (2018) stated
that, this is a service unique to the continent, because Africa’s vastness and
inaccessible territories, we might see drones taking over in this sector (health and
lifestyle), with the help of 4IR.

Google Adwords

Google and all it’s subsidiaries is a company that has somehow grasped the ethos of
AIKS, to such an extent that they have customised the company’s services and
products to fit each country or region within which they operate. Google has gone as
far as employing full time officials and CEO’s of each major region they occupy in
Africa, according to the Google Economic Impact report:
- For SADC, based in South Africa Mr Luke Mckend, heads the operations
- West African nations have Ms Juliet Ehimuan based in Nigeria as head
- The Eastern African region have their base in Kenya headed by Mr Charles Murito
These individuals head large offices with customer-care and technical capabilities
curated specifically for the region they serve. Customizing services and company
structures is a strategy that serves to fulfil one of the very important pillars of AIKS,
which is ‘economic empowerment’

Due to its affordability, accessibility and ease of use, Google Adwords as a product of
Google and an important contemporary marketing issue fits in perfectly within the
African context of doing business. Google Adwords is a preferred platform by
advertising agencies in Africa because of how well they have adopted AIKS whilst
equally saturating the market.

NFC Marketing

NFC as an element of marketing is a very diverse field with many uses, objectives and
technologies. Africa is an unlikely continent for this contemporary marketing issue to
thrive and find a home, but it has – atleast in some uses/technologies but not all.

Due to the fact that most of Africa’s is suffering from high unemployment rates and
poverty, most economically active people are migrant workers and or economic
refugees (Walker, 2012). This means they do not live in the countries of birth and
therefore cannot send money home as and when needed. Thomas (2011) believes
that’s where NFC marketing comes in with customised African services like:

- FNB eWallet (South Africa)

- Splash Money (Sierra Leone)
- MKesh (Mozambique)
- M-Pesa (Kenya, Ethiopia, Sudan)

Whilst this use of ‘money transfer’ has taken off well and is used widely by Africans
from all walks of life, it is not the only technology within the realm of NFC. The reason
it saturated the market so well and effortlessly is because it is closely linked to the
needs of Africans according to AIKS (Thomas, 2011). NFC marketing does not
attempt to ‘force-feed’ Africans about what is good and what isn’t – instead each
product utilising the NFC technology is customised accordingly.

21
 Unlike in other countries of the world, where NFC marketing is so common and
accessible - in Africa the capital-intensive process of rolling out the infrastructure will
be the big barrier to the adoption of more uses for NFC technologies.

CONCLUSION

As contemporary marketing issues proliferate, wiping away traces of traditional

marketing tools, companies need to find ways to connect more directly and
interactively with prospects and existing customers.

Contemporary marketing issues are as a result of a changing global economies.

This has an effect of everything we know about companies and it changes the way
the globe has been doing business - e.g Business should now seriously consider
employing people with titles like: Digital Marketer, Certified AdWords Specialist.
Providers of these services are also coming up with new academic qualifications to
help speed up implementation and saturation of various markets. So inorder to be a
Certified AdWords Specialist, one must enrol and attend classes with Google.

In an era of globalisation where businesses are influenced by the similar polices and
expected to start operating on a uniform international scale and standards - it is worth
noting that marketers are expected to keep in mind that, various countries have their
own unique civilization and cultures. This translates into unique challenges for
marketers hoping to incorporate contemporary marketing issues into their strategies.

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