PREFACE

Dear Student

1. WELCOME
It is a great pleasure to welcome you to this Advertising and Sales Promotion module (MNM2606).
We hope that you will find it interesting, meaningful and enriching. The field of marketing is
extremely dynamic and challenging. The learning units, activities, additional reading and self-
assessment questions contained in this study guide will give you the opportunity to explore
developments in the field and help you to complete this module successfully.

2. AIM OF THE MODULE

The purpose of the module is to give you an informed understanding of the concepts, principles
of integrated marketing communication (IMC) and its process in the business environment. We
cover the role of advertising and advertising strategy in the marketing environment, major
advertising media methods available to marketers, media planning, the principles of sales
promotion in the business environment, public relations and publicity in the marketing
environment, the role of sponsorship, and direct and digital marketing in the advertising
environment. Once you have been credited with this module, you will be able to explore the latest
developments in this field and to discover the field of IMC as it is practised today in the working
environment.

More specifically, the outcomes of this module are that, after completing the module, you should
be able to
• apply detailed knowledge of IMC, the main marketing communication tools, including the
ability to apply the steps in developing an IMC plan within the African context
• apply detailed knowledge of advertising, including the ability to apply the classification of
advertising, explain the role of consumer behaviour in advertising and develop an advertising
strategy within the African context
• evaluate, select and apply appropriate advertising media in processes of media planning
within the African context
• evaluate the scope of different sales promotion techniques, select appropriate sales
promotion techniques in order to achieve goals, apply sales promotions and develop a sales
promotion programme within an African context
• identify, analyse and solve public relations problems within the African context, gathering
evidence and applying solutions based on the process of public relations
• apply detailed knowledge of sponsorship, including managing sponsorship within an African
context
• discuss direct marketing, different forms of direct marketing and various concepts relating to
direct marketing within an African context
• evaluate, select and apply appropriate procedures or techniques in digital marketing within
the African context

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The next section will give you a better idea of how the content of the module is structured and
how the various ideas expressed in the learning outcomes are related.

3. CONTENT
We present the study material for this module in eight learning units:
Learning unit 1: Integrate marketing communication
Learning unit 2: Advertising
Learning unit 3: Media management
Learning unit 4: Sales promotion
Learning unit 5: Public relations and publicity
Learning unit 6: Sponsorship
Learning unit 7: Direct marketing
Learning unit 8: Digital communication

4. PRESCRIBED MATERIAL
The prescribed material for this module is described in Tutorial Letter 101. In addition to
understanding the theoretical principles provided in the prescribed material, we expect you to be
able to apply these principles to a practical situation in a given case study or scenario.

You will need to read more widely than this study guide and the supplied material. When reading,
do not simply accept the information contained in these sources without question. Critically
evaluate the ideas and information that you come across. Test your understanding of the ideas
which you will learn about in this module by trying to apply them to real-life situations.

Unisa acknowledges that not all students work at the same pace and that in some instances
students with different learning abilities may need additional assistance. The Advocacy and
Resource Centre for Students with Disabilities (ARCSWiD) is able to provide many forms of
special assistance to help you be successful in this module. If you have any questions in this
regard, please contact them early on in your studies to avoid any delays or difficulties later on.

5. IMPORTANCE OF COMPLETING ACTIVITIES AND ASSIGNMENTS

You will come across various types of activities in this study guide and on myUnisa. They will
require you to

• reflect on work covered

• complete assessment question activities
• do the self-assessments

In some cases, feedback on the activities will be provided in the form of guidelines; in other cases,
you will be required to go online to myUnisa for feedback on the activities.

The assignments and activities are designed to test your understanding of the content and
prepare you for the examinations. We therefore consider your completion of the activities in the

3
study guide and the assignments as crucial to your successful completion of this module.

You will find the assignments for this module in tutorial letters and on the myUnisa site. The
completion of assignments is vital in helping you achieve the learning outcomes. The
assignments will also give you the opportunity to apply the theory to a case study from the
case study book, allowing you to demonstrate your understanding of the theory by applying the
theoretical principles in a real-life environment. We will inform you of the purpose of each
assignment and which module outcomes will be assessed by the assignment. Details of the
assignments are provided in tutorial letters that will be uploaded on myUnisa.

6. KEY CONCEPTS IN ASSIGNMENTS

When we, the lecturers, formulate assessment questions, we word them in specific ways so that
you will know exactly what is expected of you. For example, we may ask you to describe, illustrate
or demonstrate something, compare two things, or to construct, relate, criticise, recommend or
design something.

Below is an explanation of the various levels of cognitive thinking that you will be expected to
apply, and the kinds of instructions that we will give you for each. This system is known as Bloom’s
taxonomy.

Knowledge. This is essentially the memorisation and recall of information. At its simplest, it
involves the recall of facts or terminology, such as names, dates and definitions. It may also
involve the recall of principles and generalisations, or ways of doing things. Outcomes/instructions
written at this level will typically use verbs (these are the words that tell you what you have to do)
such as name, list, define, label, select, state, write, describe, identify and recall.

Comprehension. This involves making sense of things, instead of only remembering them.
Comprehension usually requires you to express information in your own words.
Outcomes/instructions written at this level will typically use verbs such as convert, illustrate,
distinguish, interpret, rewrite, discuss, give examples and summarise.

Application. This is the ability to use information and ideas in new situations, such as in solving
problems that have a single or best answer. Outcomes/instructions written at this level will
typically use verbs such as calculate, demonstrate, construct, compute, solve, relate, show, use
and apply.

Analysis. This is the ability to examine information in a systematic way in order to identify the
important ideas, the relative hierarchy of those ideas and the relationships between them.
Outcomes/instructions written at this level will typically use verbs such as analyse, differentiate,
categorise, classify, relate, illustrate, outline, compare, contrast, discriminate, explain and
hypothesise.

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Synthesis. This is the ability to construct something new by combining several pieces of
information to make a coherent whole (such as a plan). Outcomes/instructions written at this level
will typically use verbs such as plan, adapt, combine, create, compile, compose, construct, model,
revise, design, develop, formulate and organise.

Evaluation. This is the ability to make judgements about the quality or value of things (either with
reference to internal evidence or external criteria). Outcomes/instructions written at this level will
typically use verbs such as assess, judge, choose, criticise, rate, argue, justify, evaluate, decide,
recommend and conclude.

7. STUDY ADVICE
The likelihood of your success in this module will be improved if you consider the following tips:
• Read, understand and study the course content. Study the prescribed study material
conscientiously. Discuss the subject matter with colleagues, friends, family and specialists
and apply your knowledge in practice.
• Prepare detailed notes/summaries/mind maps for each learning unit.
• Develop more than a superficial understanding of the concepts and principles in this module.
Critically reflect on the course content. Reflection is an essential process for transforming
experiences gained from the activities and the course material into genuine learning.
Reflection improves your academic skills and promotes a deeper understanding of module
subject matter.
• Complete the activities and self-assessment questions in the study guide.
• Engage the support of family members to help you succeed. Let them know what you are
dealing with before the semester begins.
• Make a routine of logging in to myUnisa. Check the announcements and discussion forums
for important information.
• Pace yourself, work ahead when you can and don’t procrastinate. Prepare in time for the
submission of compulsory assignments.
• Accept the responsibility to ask for assistance if you struggle with certain concepts, principles
or processes. Contact your lecturers or ARCSWiD if you need academic assistance.
• Enjoy your learning experience by teaching others what you have learnt in this module.

8. CONCLUSION
Don’t hesitate to contact us by e-mail if you are experiencing problems with the content of this
module or with any academic aspect of the module.

Remember that the module requires you to work at your studies – the more you do, the more you
will get out of your studies. We wish you a fascinating and satisfying journey through the learning
material and trust that you will complete the module successfully.

Enjoy the journey. Best wishes!

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LEARNING UNIT 1
INTEGRATED MARKETING COMMUNICATION

Overview of this learning unit

Learning outcomes
Key concepts
1.1 Introduction
1.2 Planning, strategy and strategic planning
1.3 Integrated marketing communication planning and implementation
1.4 Summary
1.5 Assessment questions
1.6 Reflection
Bibliography

OVERVIEW OF THIS LEARNING UNIT

This is the first learning unit and it provides an overview of integrated marketing
communication (IMC) and the IMC process. The unit covers chapter 2 in the prescribed
textbook. First we discuss the background for IMC planning, namely planning, business
strategy and marketing strategies, which leads to marketing communication strategic
planning. In the next section you will learn about marketing communication strategies and
the steps that are involved in the IMC planning and implementation process.

LEARNING OUTCOMES
After completing this learning unit, you should be able to
• differentiate between planning, strategy and strategic planning
• outline the various steps in the integrated marketing communication planning and
implementation process
• apply the various concepts within the African context

KEY CONCEPTS
• Planning
• Strategy
• Strategic planning
• Strategic marketing planning
• Strategic marketing communication planning

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• Integrated marketing communication
• Executive summary
• Situational analysis
• Target audience
• Communication objectives
• Marketing communication strategy
• Marketing communication mix
• Budgeting, implementation, evaluation and control

1.1 INTRODUCTION
(Study section 2.1 in the prescribed textbook.)
Every successful brand uses the different planning phases and integrated marketing
communication (IMC) to communicate about their products and/or services to a specific
target audience. If they do not send a message through advertising or offer sales
promotions, consumers will not know about the brand or buy its products. The IMC plan
comprises the planning phase, which is followed by the development of strategies that turn
into a strategic marketing communication plan, ending with evaluation and control.
When you work through this learning unit, you will realise that all the material in the
prescribed textbook is linked to the IMC process outlined in this learning unit. The IMC
process aims to achieve the communication objectives that are targeted at a specific
audience. Different marketing communication elements, such as advertising and sales
promotions, are used to achieve the objectives. Detailed discussions on the marketing
communication elements are in the learning units that follow.
Working through the introduction of chapter 2, you will realise why marketing communication
should be seen from an integrated perspective. Make sure that you understand the
importance of developing a marketing communication plan.

1.2 PLANNING, STRATEGY AND STRATEGIC PLANNING

(Study section 2.2 in the prescribed textbook.)
Working through this section, you will see that planning, strategy and strategic planning are
different concepts that follow each other. Planning can be seen as providing an overview of
the goals top management want to achieve for a business. Strategy flows from planning,
and provides a framework and direction for IMC plans and gives direction to the IMC
objectives created and the strategies developed to achieve those objectives. Through
strategic marketing planning and strategic marketing communication planning, more

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information is required to achieve the objectives set in the original plan. It is important to
note that strategic IMC planning takes the general strategy and outlines the IMC tactics
(advertising tools) that are used to implement the strategies in order to achieve objectives
which are then evaluated to determine the success of the IMC plan. When studying this
section, make sure that you understand the difference between these terms.

Discussion forum activity 1.1

Using Woolworths, provide practical examples to illustrate your understanding of planning,
strategy, strategic planning, strategic marketing planning and strategic marketing
communication planning.

1.3 INTEGRATED MARKETING COMMUNICATION PLANNING AND

IMPLEMENTATION
(Study section 2.3 in the prescribed textbook.)
Marketing managers and retailers consistently integrate and coordinate their marketing and
promotional activities to communicate a specific message to consumers. While working
through this section, you will notice that marketing managers take advantage of
collaboration between IMC activities and develop a plan that includes tactical and
operational elements. Marketing communication tactics involve choices between different
media, communication techniques and the principal issues of marketing communication.
When studying this section, ensure that you understand the steps in the marketing
communication planning framework.

1.3.1 Step 1: Executive summary and introduction

(Study section 2.3 in the prescribed textbook.)
The first step of the marketing communication planning framework is to develop the
executive summary and introduction. Ensure that you understand the purpose of the
executive summary and what it establishes for the framework.

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Discussion forum activity 1.2
In your own words, briefly explain what an executive summary and introduction entail.
Refer to Woolworths as an example.

1.3.2 Step 2: Conducting a situational analysis

(Study section 2.3 in the prescribed textbook.)
The second step of the marketing communication planning framework is to conduct a
situational analysis. While studying this step, you need to make sure that you recognise the
value of the situational analysis and understand the topics covered in a situational analysis.

Discussion forum activity 1.3

In your own words, briefly explain what conducting a situational analysis entails. Refer to
Woolworths as an example.

1.3.3 Step 3: Defining the target audience

(Study section 2.3 in the prescribed textbook.)
The third step of the marketing communication planning framework is to define the target
audience. The target audience for an IMC plan is the consumers that the communication
message is aimed at. By segmenting, targeting and positioning the market, an IMC manager
can identify the best marketing communication elements and media channels to reach the
target audience. While studying this step, you need to ensure that you are able to define the
term target audience, explain the concept of segmentation, differentiate between the different
bases and understand what targeting and position refer to.

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Discussion forum activity 1.4
In your own words, briefly explain the concepts of segmentation, targeting and positioning,
using Woolworths as an example.

1.3.4 Step 4: Setting the communication objectives

(Study section 2.3 in the prescribed textbook.)

The fourth step of the marketing communication planning framework is to set communication
objectives. When you study this section, you need to ensure that you understand that marketing
communication objectives are different from other marketing element objectives. Make sure
that you know the list of marketing communication objectives, the three broad fields of
marketing communication objectives and what is meant by a SMART objective.

Discussion forum activity 1.5

You have been tasked to set the marketing communication objective for Woolworths to
communicate their positioning of quality and value.
- Give reasons for the objectives you choose.
- Defend which broad field the objective falls under.
- Create a SMART marketing communication objective for Woolworths to
communicate their position of quality and value.

Hint: Work through the list of marketing communication objectives and decide which ones
are relevant to the message Woolworths want to communicate. Remember to include all the
elements of SMART in your objective.

1.3.5 Step 5: Determining the marketing communication strategy

(Study section 2.3 in the prescribed textbook.)
The fifth step of the marketing communication planning framework is to determine the
marketing communication strategy. Marketing communication strategies originate from the

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business strategy that is developed by top management in the planning and strategic phases.
Work through the figure in the prescribed textbook and keep in mind that it covers all the
material discussed in the steps above. It is important that you know and understand the
difference between the marketing communication strategies, namely a push, pull and profile
design, and where media strategies fit in.

Discussion forum activity 1.6

In your own words, explain which marketing communication strategy you think Woolworths
used when communicating their positioning of quality and value to their target audience.

1.3.6 Step 6: Determining the marketing communication mix

(Study section 2.3 in the prescribed textbook.)
The sixth step of the marketing communication planning framework is to determine the
marketing communication mix. The different marketing communication mix elements are
discussed throughout the unit in this module. At this stage you need to know the process of
choosing the right mix of elements.

Discussion forum activity 1.7

In your own words, advise Woolworths on what they should consider when deciding on the
message to communicate to the target audience.

1.3.7 Step 7: Budgeting and implementing, evaluating and control

(Study section 2.3 in the prescribed textbook.)
The final step of the marketing communication planning framework deals with budgeting,
implementing, evaluating and control. When you study this section, you need to ensure that
you understand these aspects.

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Discussion forum activity 1.8
In your own words, explain the final step in the marketing communication planning
framework and provide examples related to Woolworths.

Now that you understand the various concepts discussed in this learning unit, answer self-
assessment activity 1.1 to apply what you have learnt.

Self-assessment activity 1.1

Read the following case study and answer the questions below. The case study will give you
a practical example that includes the concepts explained in this learning unit and you will
realise the importance of an IMC plan.
Grace Mashego’s story started one Sunday afternoon when her family were celebrating her
grandmother’s 70th birthday in Mamelodi. Everybody was talking about their businesses.
One had a tiling and painting business, another was a plumber and another an electrician.
They were all talking about business being slow and not knowing how to get more customers
and grow their businesses.
Grace, being a natural entrepreneur who studied business management and marketing,
immediately saw an opportunity. She told them that the solution to their problem was for
them to work together, combine their resources and use IMC to speak to customers with one
voice. Before the end of the day “Total Solutions”, which incorporated everybody’s skills,
was born.
The family members were excited about the possibilities and listened carefully to Grace who
explained how they were going to plan and manage the business professionally. She gave
them a quick overview of concepts such as planning, strategy, strategic marketing planning
and marketing communication planning, which were necessary if they wanted Total
Solutions to be successful. Grace’s family asked many questions. Their biggest concern was
finding customers and communicating the business services to them. The solution, she
explained, was that IMC involves a series of steps and activities aimed at a specific target
audience to make them aware of the business and to encourage them with sales promotions
to use Total Solutions’ services.
The family wanted to know more about IMC and Grace told them that they first had to analyse
their current situation and identify their strengths, weaknesses, opportunities and threats.
Next they had to define their target audience and decide on a positioning statement that
framed Total Solutions’ strategy. She talked about setting communication objectives and
determining marketing communication strategies to achieve the goals. When she explained

12
the marketing communication mix elements such as advertising and sales promotions, the
family realised that she knew what she was talking about and they were sold on the idea of
Total Solutions. The next day their business and their IMC process started.
Today, it is five years later and the business is doing very well. If you ask one of them what
the reason for their success is, they will tell you that they believe it is due to carefully following
the steps in the IMC process and their use of advertising and sales promotions.
Based on the information provided in the case study, answer the questions that follow and
share your answers on the discussion forum. Your answer should range from 400-500
words.
Questions:
1. If you were Grace, how you would explain the concepts of planning, strategy and
strategic planning with reference to Total Solutions to her family?
2. Using the steps of an IMC plan, describe the IMC plan for Total Solutions that led to their
current success.

1.4 SUMMARY
In this learning unit we discussed planning, strategy, strategic planning and the steps in the
marketing communication process. In the next learning unit you will learn about the
marketing communication element of advertising.

1.5 ASSESSMENT QUESTIONS

Now that you have completed learning unit 1, complete the following assessment questions
to test your knowledge on some of the concepts discussed.
QUESTION 1
When Mary, who is the owner of a series of boutiques, develops a framework that provides
general guidelines for her marketers to develop specific actions, she is busy with …
1. planning.
2. strategy.
3. strategic planning.
4. strategic marketing planning.

QUESTION 2
Mary wants to expand her traditional clothing boutiques and introduce a new line for
children’s traditional clothing in Rustenburg townships during September and October. This
refers to the … step of the marketing communication plan.
1. executive summary and introduction
2. conducting a situational analysis
3. defining the target audience
4. setting the communication objectives

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QUESTION 3
Which ONE of the following objectives is correct if Mary, the owner of a range of traditional
clothing boutiques, has to set a SMART marketing communication objective for her brand
“Mary’s Traditional Clothing”?
1. Increase sales by 12% by the end of October 2023.
2. Increase brand awareness by 12% by the end of October 2023.
3. Increase the digital media footprint by 12% by the end of October 2023.
4. Increase reach by 12% by the end of October 2023.

QUESTION 4
If Mary, the designer of traditional clothes for women and children, decides to hold a fashion
show in her boutiques for her target market and the media in order to create awareness of
her new lines of clothing, she is using … marketing communication objective.
1. an awareness-based
2. a knowledge-based
3. a feeling-based
4. an action-based
QUESTION 5
Mary, the designer of traditional clothing for women, used to sell her clothing range from her
own boutiques but, due to the popularity of her clothes, other retailers asked her if they
could carry her range. Mary decided to offer the retailers trade discounts and cooperative
advertising allowances. Which marketing communication strategy is she using?
1. push strategy
2. pull strategy
3. profile design strategy
4. media strategy

1.6 REFLECTION
Before you continue to the next learning unit, complete the following Likert scale. After
studying the prescribed textbook in conjunction with the study guide, rate your competency
in the topics covered in this learning unit:

Learning Novice Partial Average Above Expert

outcomes competence competence average
competence
Differentiate 1 2 3 4 5
between
planning,
strategy and
strategic
planning

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 Outline the 1 2 3 4 5
various steps
in the
integrated
marketing
communication
planning and
implementation
process
Apply the 1 2 3 4 5
various
concepts
within the
African context

If you rated yourself 3 or below for any of the learning outcomes, work through the relevant
sections in your prescribed textbook and study guide again. Post on the discussion forum
which learning outcomes you are struggling with.

BIBLIOGRAPHY
Julia. 2016. Woolworths: Are low-income consumers the key to significant growth?
https://onebrandatatime.wordpress.com/2016/12/12/woolworths-are-low-income-
consumers-the-key-to-significant-growth/ [Accessed 20 May 2021].
Kokemuller, N. 2018. Advantages & disadvantages of sales promotions.
https://bizfluent.com/info-10064249-advantages-disadvantages-cash-discounts-
allowances.html [Accessed 25 October 2021].
Marketing Evolution. 2021. Steps to find your target audience.
https://www.marketingevolution.com/marketing-essentials/target-audience
[Accessed 25 October 2021].
NCR. 2021. From baby boomers to Gen Z: generational marketing insights to win with every
consumer generation. https://www.ncr.com/blogs/generational-marketing-to-four-
consumer-generations [Accessed 27 October 2021].
Phillips, WO. 2021. 6 messaging strategies for 2021. https://www.bigbuzzinc.com/6-
messaging-strategies-to-market-your-practice/ [Accessed 27 October 2021].
Studiowide. [n.d.]. Push, pull & profile strategies. https://www.studiowide.co.uk/push-pull-
profile-strategies/ [Accessed 14 April 2021].
Van Heerden, N, Mulder, D & Sephapo, CM. 2019. Integrated marketing communication.
4th ed. Pretoria: Van Schaik.
Woolworths. 2022. Buy 2 or more and save.
https://www.woolworths.co.za/cat/Food/Promotions/Buy-2-Or-More-And-Save/_/N-
1z13bde [Accessed 14 April 2021].
Zote, J. 2021. Target market vs target audiences: the key differences.
https://resources.audiense.com/blog/target-market-vs-target-audience [Accessed
19 April 2021].

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LEARNING UNIT 2
ADVERTISING

Overview of this learning unit

Learning outcomes
Key concepts
2.1 Introduction
2.2 Advertising defined
2.3 Consumer behaviour
2.4 Advertising strategy
2.5 Legal and ethical issues relating to advertising
2.6 Summary
2.7 Assessment questions
2.8 Reflection
Bibliography

OVERVIEW OF THIS LEARNING UNIT

In the previous learning unit, we discussed the importance of planning, strategy and
strategic planning and outlined the various steps involved in the marketing communication
planning and implementation process. In this learning unit we provide an overview of the
importance of advertising. We will begin our discussion by defining advertising and looking
at the different types of advertising. We will also consider the consumer decision-making
process and how the marketing communication strategy can influence it. Next, we will
discuss the COMPAS approach, highlighting the elements necessary to create a successful
advertising campaign. Lastly, we will consider some legal and ethical issues in advertising.

LEARNING OUTCOMES

After completing this learning unit, you should be able to

• explore the concept of advertising
• explain the various concepts of consumer behaviour
• outline the various steps in the advertising strategy
• discuss the legal and ethical considerations in advertising
• apply the various concepts within the African context

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KEY CONCEPTS
• Advertising
• Brand essence
• Consumer behaviour
• Hierarchy of effects
• Conversion process
• Perceptual space management
• COMPAS

2.1 INTRODUCTION
(Study section 3.1 in the prescribed textbook.)

Global advertising is a multi-billion dollar industry and South Africa is no exception.

According to Ornico (2021), the annual advertising spend on television in the fast-moving
consumer goods (FMCG) segment was more than R2,8 billion alone. With all these
advertisments on radio, television, internet and mobile means, it can prove difficult to leave
a lasting impression on customers. Therefore it is important to know what advertising is and
how your organisation can use advertising effectively to achieve organisational objectives.

2.2 ADVERTISING DEFINED

(Study section 3.2 in the prescribed textbook.)
Advertising can be seen as a form of communication that is paid for from an identified source
and it is carried out at a distance. Most advertising is aimed at many people using different
media channels, including print, radio, television and the internet. Advertising is aimed at
drawing attention to ideas, goods or services or the sponsor. After reading through this
section of the prescribed textbook, you should be able to define advertising and identify four
characteristics of advertising.
Follow the links for a better understand of what advertising is (for noting):
• (PDF) WHAT IS ADVERTISING? A SHORT REVIEW OF HISTORICAL
DEVELOPMENT (researchgate.net)
• What is Advertising? And What are its Benefits? – YouTube

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2.2.1 Types of advertising
(Study section 3.2.1 in the prescribed textbook.)

As you can imagine, not all organisations have the same advertising objectives.
Organisations can use a number of different types of advertising to achieve their objectives.
In this section of the prescribed textbook, we look at eight types of advertising, as shown
in figure 2.1 below. Ensure that you can distinguish between these different types of
advertising.

Institutional

Specialised Product

Public Types of Retail

service
advertising

Direct
Non-profit
response
Business-to-
business

Figure 2.1 Different types of advertising

Source: adapted from Van Heerden, Mulder and Sephapo (2019)

Discussion forum activity 2.1

1. Formulate your own definition of the concept of advertising by conducting research

online.
2. Distinguish between the eight types of advertising according to your prescribed textbook
and provide practical examples of each.

Share your answers in the discussion forums and compare your answers with those of your
fellow students.

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2.2.2 Consideration of brand essence in advertising
(Study section 3.2.2 in the prescribed textbook.)

After reading thorugh this section of the prescribed textbook, you should be able to describe
what brand essence is and what role it plays in advertising.

Follow the links for a better understand of what brand essence is (for noting):
• PowerPoint Presentation (edgeplus-consulting.com)
• What Is Brand Essence (And How To Create It) – YouTube

2.3 CONSUMER BEHAVIOUR

(Study section 3.3 in the prescribed textbook.)

In this section of the prescribed book, we take a closer look at the decision-making process
of customers and consider the factors that influence this process, namely the target
audience, the conversion process and perceptual management. We start off with a
discussion of the target audience.

2.3.1 Target audience

(Study section 3.3.1 in the prescribed textbook.)

After reading through this section of the prescribed book, you need to understand the
importance of identifying the target audience as they are the customers that need to be
informed, reminded or persuaded. There are also various modules of consumer behaviour,
including the heirarchy of effects model discussed in this section of the prescribed textbook.
These models demonstrate how a customer goes through three behavioural dimensions,
namely cognitive (knowing), affective (feelings and emotions) and conative (action) stages.
It is important for you to be able to identify the differences between the models.

Follow the link to watch a video for a better understanding of what a target audience is (for
noting):
• What is a Target Audience? 🎯 Types & Examples! – YouTube

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Discussion forum activity 2.2
1. Determine who the target audience is for a Carb Clever brand of mayonnaise.
2. Conduct additional research online and provide practical discussions on how a consumer
goes through the three behavioural dimensions before purchasing the Carb Clever brand
of mayonnaise according to the AIDA model.
Hint: To answer question 2, follow the link for one of many explanations of the AIDA model:
• The AIDA model and how to apply it in the real world – examples and tips
(smartinsights.com)

Reflection
Only the AIDA model was discussed here. However, to ensure that you also understand the
other models mentioned in your prescribed textbook, namely DAGMAR, Lavidge and
Steiner, stimulus response, FCB and processing of information, do the same activity of
conducting additional research online to understand the models and provide practical
examples relevant to each.

2.3.2 Conversion process

(Study section 3.3.2 in the prescribed textbook.)
After reading through this section of the prescribed textbook, you need to understand the
importance of the conversion process and how it affects consumer behaviour. Figure 3.3 in
your prescribed textbook illustrates the simple conversion process that consumers usually
follow. Advertising plays a crucial role here because it is what first gets the consumers’
interest; then by engaging with consumers, brands are able to get consumers to buy their
product (coversion) and become loyal through customer service and building relationships
(reinforcement).

20
Discussion forum activity 2.3
Suppose Elijah is looking to purchase a new Carb Clever mayonnaise. Provide practical
examples of how he would go through the conversion process.

2.3.3 Perceptual management

(Study section 3.3.3 in the prescribed textbook.)
In this section of the prescribed textbook, the concept of perceptual space management is
discussed. Advertising helps establish these perceptual spaces that customers attach to
brands. There are two concepts associated with perceptual management, namely blind
taste test and point of parity. Ensure that you understand these terms.
Follow the link to watch a video for a better understanding of brand perception (for noting):
• Brand Perception Tutorial – YouTube

Discussion forum activity 2.4

1. Provide a practical example illustrating your understanding of the term perceptual

management.
2. Conduct online research and provide a practical example of a blind taste test.
3. Conduct online research and provide a practical example of point of parity.

2.4 ADVERTISING STRATEGY

(Study section 3.4 in the prescribed textbook.)

After reading this section of the prescribed textbook, you need to be able to discuss the six
steps in the COMPAS approach. As shown in figure 3.8 of your prescribed textbook, the
steps are the following:

21
 Course Orientatation Mapping Plotting Alignment Success

Figure 2.2 COMPAS steps

Source: adapted from Van Heerden et al (2019)

2.4.1 Course
(Study section 3.4.1 in the prescribed textbook.)

The first thing a marketer needs to do when creating an advertising strategy is set the
objectives. As shown in figure 2.3 below, these objectives that set the course for the
advertising strategy can be to inform, persuade, remind or reinforce.

Inform

Persuade
Course

Set objectives
Remind

Reinforce

Figure 2.3 What the course step entails

Source: adapted from Van Heerden et al (2019)

Follow this link to see a detailed explanation of how advertising objectives form part of the
overall marketing strategy and how to write SMART objectives (for noting):
• Reading: Advertising | Principles of Marketing (lumenlearning.com)
• How To Set SMART Goals & Objectives – YouTube

22
Discussion forum activity 2.5

If you were the marketing manager of an energy drink company and needed to design an
advertising strategy, which action/combination of actions would you want to create in a
customer’s mind?

2.4.2 Orientation
(Study section 3.4.2 in the prescribed textbook.)

In this section of the prescribed textbook the second and most important step – orientation
– is discussed. As shown in figure 2.4 below, three aspects that we need to analyse are the
environment, competitors and consumer. Ensure that you understand what this step entails.

Environment
Orientation

Conduct analysis Competitors

Consumers

Figure 2.4 What the orientation step entails

Source: adapted from Van Heerden et al (2019)

Follow these OER links for a better understanding of these aspects (for noting):
• Understanding your sector: Week 2: 1 – OpenLearn – Open University
• OLCreate: DIY-Learn-SWOT-analysis-tool SWOT Analysis: 3.1 Strengths and
weaknesses (open.edu)

23
Discussion forum activity 2.6
Suppose you own a company that sells energy drinks. Explain the three different types of
competitors you have and provide examples of each competitor.

2.4.3 Mapping
(Study section 3.4.4 in the prescribed textbook.)
After reading through this section of the prescribed book, you need to understand how
mapping is used when designing the advertising strategy. Once the communication agency
has been briefed, then creative development follows. When we add product insight and
consumer insight, the result is a creative platform. It is important to note that there are seven
aspects to consider in establishing product insight, as mentioned in the prescribed textbook.
Another important process that forms part of mapping is the evaluation and execution of the
creative idea. Ensure that you understand what this step entails.

The campaign brief

Briefing the communication

The creative brief
agency

The executional brief

Mapping

Product insight
Creative development
Consumer insight

Evaluating the creative idea

and executing it

Figure 2.5 What the mapping step entails

Source: adapted from Van Heerden et al (2019)

24
The following links show how brand essence is translated into a creative platform:
• Apple communicated their brand essence “Apple at work” for their business division
through this advertising campaign. In this advert a group of employees get an opportunity
to pitch a new pizza box design. It shows the audience how Apple can help a business
to achieve success using their different products: Apple Round Pizza Box Ad – Apple at
Work – The Underdogs – YouTube
• Coca-Cola, one of the biggest brands in the world, recently launched a holiday
campaign: This campaign is aimed at uniting people in what has been a very difficult
year: Coca-Cola 2020 Holiday Campaign – News & Articles (coca-colacompany.com)

Discussion forum activity 2.7

Suppose you need to develop creative advertising content for your energy drink. Give a
practical explanation of the seven aspects that you will consider.

2.4.4 Plotting
(Study section 3.4.4 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to understand that
plotting refers to how the organisation plans to achieve the advertising objectives through
action plans and the setting of budgets (as shown in figure 2.6 below). During this step,
decisions are made on when the advertising message will be sent and how much money
will be allocated to the campaign.

25
 Action plans

Objective task method

Plotting

Percentage of sales
method

Setting the budget

Competition matching
method

Arbitration method

Figure 2.6 What the plotting step entails

Source: adapted from Van Heerden et al (2019)

Discussion forum activity 2.8

As the marketer for an energy drinks company, you need to develop an action plan to
achieve one of your objectives. Identify your target audience, offering, message, tactics,
channel/s and timing for the objective.

2.4.5 Alignment
(Study section 3.4.5 in the prescribed textbook.)

In this section of the prescribed book, the importance of the development of the
channel/media and rollout plan is highlighted (as shown in figure 2.7 below). Follow this link
to see an example of some of the best practices for creating a rollout plan (for noting):
• Five Strategies for Launching your Marketing Campaign (chartwell-agency.com)

26
 Alignment

Channel or media
Develop
Rollout plan

Figure 2.7 What the align step entails

Source: adapted from Van Heerden et al (2019)

2.4.6 Success
(Study section 3.4.6 in the prescribed textbook.)

This section of the prescribed book deals with the last step in the COMPAS approach and
after reading through this section, you should be able to identify the three principles of
communication tracking, namely noting, likeability and recall (as shown in figure 2.8 below).
Organisations need to determine if customers are aware of their advertising efforts, if
customers actually like the advertisement and if customers are actually able to remember
what was communicated. Ensure that you understand what this step entails.

Noting
Success

Tracking Likeability

Recall

Figure 2.8 What the success step entails

Source: adapted from Van Heerden et al (2019)

27
Discussion forum activity 2.9

As the marketer for an energy drink company, you need to determine whether your
advertising strategy was a success. Give a practical discussion of how you would determine
the success according to the three principles.

2.5 LEGAL AND ETHICAL ISSUES RELATING TO ADVERTISING

(Study section 3.5 in the prescribed textbook.)

This last section of the prescribed textbook in this learning unit considers some of the legal
and ethical issues associated with advertising. Your prescribed textbook mentions ASASA;
however, it has since been liquidated and the Advertising Regulatory Board (ARB) has
taken over.

Follow the link below to read more about ARB:

• Is the new Advertising Regulatory Board a redo of the ASA, or better?
(golegal.co.za)
• HOME (arb.org.za)

Stop and think

Can you recall an advertisement that has been withdrawn because of complaints made to
ASASA/ARB? How did the organisation respond to the complaints? Share some of your
examples on the discussion forums.

Now that you understand the various concepts discussed in this learning unit, answer self-
assessment activity 2.1 to apply what you have learnt.

28
Self-assessment activity 2.1

Read the following case study and answer the questions below. The case study will give
you a practical example that includes the concepts explained in this learning unit and you
will gain an understanding of advertising.

Enzokuhle and Lethabo are two friends that share a love for good food. They noticed an
increase in the demand for healthy food among their friends and in their community. Most
people are, however, concerned with the time and effort it takes to cook these wholesome
meals and easily resort to ordering less healthy takeaways. Knowing that people do not
have the time to buy and cook these meals themselves, they established an organisation
called gourmet@home. This is a meal delivery service that allows customers to either order
ready-made meals or meal kits that include all the ingredients and recipe. They aim to
provide delicious healthy food and good value for money. Enzokuhle and Lethabo are
struggling to get their business off the ground, with only a few orders here and there. They
have approached you to help them. The first suggestion you have made is to increase their
advertising.

Note: gourmet@home is a fictitious company.

Based on the information provided in the case study, answer the questions that follow and
share your answers on the discussion forum. Your answer should range from 400-500
words.

Questions:
1. Explain to Enzokuhle and Lethabo what advertising is in relation to their business.
2. Suggest two types of advertising that gourmet@home should focus on and justify your
answer.
3. Describe gourmet@home’s brand essence.
4. Explain to Enzokuhle and Lethabo what the conversion process is in relation to their
business.
5. Discuss how perceptual space management can help customers to attach perceptual
space to the gourmet@home brand.
6. Briefly discuss how gourmet@home can use the COMPAS approach.

Hint: If you struggle to answer the questions, it will help to look at the theory in the
prescribed textbook again. You need to practise providing answers using your own words
with less and less direct citing from this learning unit’s content. With more practice, you will
master the art of responding from your own understanding.

29
2.6 SUMMARY
In this learning unit we discussed advertising. We first explained what advertising is and
considered the different types of advertising. We then discussed how the marketing
communication strategy can influence consumer decision making. Next, we looked at using
the COMPAS approach to create a successful advertising campaign. Finally, we discussed
the legal and ethical issues organisations need to consider when advertising.

2.7 ASSESSMENT QUESTIONS

Now that you have completed learning unit 2, complete the assessment questions to test
your knowledge on some of the concepts discussed.

QUESTION 1

Rafiek is the marketing manager for a large retail organisation. Recently they released an
advertising campaign on gender-based violence. This is an example of … advertising.

1. product
2. non-profit
3. institutional
4. public service

QUESTION 2

Sandy is looking to purchase a new watch for her husband as a gift. She remembers seeing
a Tag Heuer advertisement with Leonardo di Caprio on a billboard on her way to work last
week. Using the AIDA model, in which fundamental stage is Sandy?

1. desire
2. awareness
3. action
4. interest

QUESTION 3

ABC Shoes wants to help its consumers to map out the different offerings and determine
which product or service is right for them. To do this, they will need to use …

1. the hierarchy of effects model.

2. perceptual space management.
3. brand essence.
4. COMPAS.

30
QUESTION 4

Tebogo owns a small business and needs to develop an advertising strategy to promote
her latest product launch. She is now ready to brief the communication agency. This
scenario refers to which step of the COMPAS approach?

1. course
2. orientation
3. mapping
4. plotting

QUESTION 5

Soup Delight, the organisation you work, for recently launched an advertising campaign
which features their new flavour, creamy pumpkin soup. After some research, it seems that
customers are aware of the advertisement and they like it, but they could not remember
which new flavour has been introduced. Which one of the following is not a principle on
which communication tracking is based?

1. noting
2. likeability
3. recall
4. emotional appeal

2.8 REFLECTION

Before you continue to the next learning unit, complete the following Likert scale. After
studying the prescribed textbook in conjunction with the study guide, rate your competency
in the topics covered in this learning unit:

Learning Novice Partial Average Above Expert

outcomes competence competence average
competence
Explore the 1 2 3 4 5
concept of
advertising
Outline the 1 2 3 4 5
various steps
in the
advertising
strategy

31
 Explain the 1 2 3 4 5
various
concepts of
consumer
behaviour
Discuss the 1 2 3 4 5
legal and
ethical
considerations
in advertising

Apply the 1 2 3 4 5
various
concepts
within the
African context

If you rated yourself 3 or below for any of the learning outcomes, work through the relevant
sections in your prescribed textbook and study guide again. Post on the discussion forum
which learning outcomes you are struggling with.

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practice [Accessed 7 January 2022].
CANSA. 2021. Radio Ads Shavathon 2021. https://shavathon.org.za/radio-ads-shavathon-
2021/ [Accessed 5 January 2022].
Chron. 2020. Examples of public service advertising.
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[Accessed 5 January 2022].
Coleman, D. 2018. Building brand experiences: a practical guide to retaining brand relevance.
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XoECAIQAg#v=onepage&q=how%20to%20create%20brand%20essence&f=false
[Accessed 24 April 2021].
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LOEBhDCARIsABrC0TngrVBNd8_hVuBn8dFOZldzr-4MCL6ykVkD9ltAqfMcEM-
aWi7SAaAsVyEALw_wcB [Accessed 17 April 2021].

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Dis-Chem. 2021. Dis-Chem: Frozen II. https://www.youtube.com/watch?v=_f4LLaTkYho
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DiscoverySA. 2021. Discovery Bank, a bank like no other. A shared-value bank.
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Donohoe, A. 2019. What is the importance of public service advertising?
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[Accessed 17 April 2021].
Fears, R. 2021. What is product advertising? https://smallbusiness.chron.com/product-
advertising-43332.html [Accessed 1 May 2021].
Finkle, C. 2019. 11 examples of brand essence. https://brandmarketingblog.com/articles/good-
branding/brand-essence-examples/ [Accessed 20 April 2021].
FNB. 2021. Switch to FNB. https://www.fnb.co.za/ [Accessed 17 April 2021].
Guttman, A. 2021. Advertising spending in South Africa 2018-2021.
https://www.statista.com/statistics/386540/advertising-expenditures-by-medium-south-
africa/ [Accessed 23 April 2021].
Hanlon, A. 2021. AIDA model explained: examples and tips for using this strategic
MARCOMMS planning model the real world. https://www.smartinsights.com/traffic-
building-strategy/offer-and-message-development/aida-model/ [Accessed 9 December
2021].
Lake, L. 2020. What is nonprofit marketing? https://www.thebalancesmb.com/what-is-
nonprofit-marketing-2295530 [Accessed 17 April 2021].
Lumen. [n.d.]. Introduction to competitive analysis. https://courses.lumenlearning.com/wm-
retailmanagement/chapter/introduction-to-competitive-analysis/ [Accessed 7 January
2022].
Lumen. [n.d.]. Reading: advertising. https://courses.lumenlearning.com/clinton-
marketing/chapter/reading-advertising/ [Accessed 7 January 2022].
Maggs, J. 2020. Marketing spend: hope for a brighter new year.
https://www.businesslive.co.za/redzone/news-insights/2020-11-12-marketing-spend-
hope-for-a-brighter-new-year/ [Accessed 7 January 2022].
MTN. 2021. MTN Business. https://www.mtnbusiness.co.za/en/Pages/default.aspx [Accessed
17 April 2021].
Mybroadband. 2020. Vodacom changes network name to “Vodacom – Stay Safe”.
https://businesstech.co.za/news/mobile/383613/vodacom-changes-network-name-to-
vodacom-stay-safe/ [Accessed 24 April 2021].
Ornico. 2021. FMCG and retail advertising report March 2020 to February 2021.
https://website.ornico.co.za/wp-content/uploads/2021/04/FMCG-and-Retail-advertising-
Report-March-2020-to-February-2021.pdf [Accessed 30 April 2021].
Outsurance. 2021. Trust OUTsurance to OUTsure your everything.
https://www.youtube.com/watch?v=v-bVuTDG0gA [Accessed 5 January 2022].
Padgett, D & Loos, A. 2021. Applied marketing. 2nd ed.
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utional+advertising&hl=af&sa=X&ved=2ahUKEwi356XDg6bwAhWRUMAKHVrDDDYQ6
AEwAHoECAAQAg#v=onepage&q=marketing%20institutional%20advertising&f=false
[Accessed 29 April 2021].

33
Pinterest. [n.d.]. https://za.pinterest.com/pin/277745501995831221/ [Accessed 5 January
2022].
Shoprite. 2021. Checkers wins big at the Marketing Achievement Awards with Sixty60 and Xtra
Savings. https://www.shopriteholdings.co.za/articles/Newsroom/2021/checkers-wins-
big-marketing-achievement-awards.html [Accessed 16 April 2021].
Smith, K. 2019. Five strategies for launching your marketing campaign. https://chartwell-
agency.com/five-strategies-launching-marketing-campaign/ [Accessed 7 January 2022].
Statista. 2021. Leading advertisers in South Africa 2017-2018, by ad spend.
https://www.statista.com/statistics/821525/leading-advertisers-south-africa/ [Accessed 2
June 2021].
Stoffer, M. 2016. Kraft Heinz’s sneaky blind taste test. https://corporate-
citizenship.com/2016/03/30/kraft-heinzs-sneaky-blind-taste-test/ [Accessed 27 April
2021].
Tennant, J. 2020. PwC, IAB release latest Internet Advertising Revenue Report.
https://www.bizcommunity.com/Article/196/19/203267.html [Accessed 20 April 2021].
The Coca-Cola Company. 2022. Coca-Cola invites the world to ‘give something only you can
give’ in 2020 holiday campaign. https://www.coca-colacompany.com/news/2020-holiday-
campaign [Accessed 7 January 2022].
The Economic Times. 2022. Definition of advertising.
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[Accessed 7 January 2022].
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[Accessed 7 January 2022].
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ed. Pretoria: Van Schaik.

34
LEARNING UNIT 3
MEDIA MANAGEMENT

Overview of this learning unit

Learning outcomes
Key concepts

3.1 Introduction
3.2 Media landscape in South Africa
3.3 Major advertising media
3.4 Developing the media plan
3.5 Regulations and ethical aspects to consider in media planning
3.6 Summary
3.7 Assessment questions
3.8 Reflection
Bibliography

OVERVIEW OF THIS LEARNING UNIT

In the previous learning unit, we discussed advertising. In this learning unit we provide an
overview of media management. We will begin our discussion by considering the media
landscape in South Africa. We will also discuss major advertising media, including
broadcast, print, out-of-home media and interactive media. Next, we will outline the steps in
developing a media plan. Lastly, we will consider some legal and ethical issues in media
planning.

LEARNING OUTCOMES

After completing this learning unit, you should be able to

• explore the concept of media management

• outline the media landscape in South Africa
• differentiate between the major types of advertising media
• discuss the steps in developing a media plan
• discuss the legal and ethical considerations in media management
• apply the various concepts within the African context

35
KEY CONCEPTS

• Media management
• Broadcast media
• Print media
• Out-of-home media
• Interactive media

3.1 INTRODUCTION
(Study section 4.1 in the prescribed textbook.)

It is estimated that global advertising spend in 2020 reached US$586.5 billion (Statista
2021). Depending on what type of advertising media is used, it could become quite costly
to launch a campaign. Therefore, to ensure that advertisers and marketers make the most
of an advertising campaign, it is crucial that media planning be taken into consideration to
make certain that the right message, using the right media vehicle, communicated at the
right frequency, is targeted at the correct target consumer, at the right time, and that it is
within the allocated budget.

3.2 MEDIA LANDSCAPE IN SOUTH AFRICA

(Study section 4.2 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you should be able to outline
the media landscape in South Africa, the different types of media channels and the
opportunities and challenges facing the South African media landscape.

36
 3.2.1 Broadcast media

According to the University of Fort Hare (n.d.), broadcast media is made up of a number of
different communication methods, including television and radio. After reading this section
in your prescribed textbook, you should be able to define the term broadcast media, and
explain the different types of broadcast media, namely television and radio (as shown in
figure 3.1 below).

Broadcast Television
media

Radio

Figure 3.1 Types of broadcast media

Source: adapted from Van Heerden et al (2019)

3.2.2 Print media

(Study section 4.2.2 in the prescribed textbook.)

Print media is any form of printed publication such as newspapers and magazines (Bean-
Mellinger 2018). Ensure that you are able to define the term print media, and explain the
different types of print media, namely newspapers and magazines (as shown in figure 3.2
below).

Print media Newspapers

Magazines

Figure 3.2 Types of print media

Source: adapted from Van Heerden et al (2019)

37
 3.2.3 Out-of-home media
(Study section 4.2.3 in the prescribed textbook.)

Out-of-home media is any form of media that is found outside of the home (Broadsign 2018),
such as outdoor advertising, transit advertising, in-store media, promotional product
marketing, directory advertising, cinema advertising, in-flight advertising and branded
entertainment (as shown in figure 3.3 below). After reading this section, you should be able
to define the term out-of-home media, and explain the different types of out-of-home media.

Out of home Outdoor advertising

media
Transit advertising
In-store media
Promotional product marketing
Directory advertising
Advertising in cinemas
In-flight advertising
Branded entertainment

Figure 3.3 Types of out-of-home media

Source: adapted from Van Heerden et al (2019)

3.2.4 Interactive media

(Study section 4.2.4 in the prescribed textbook.)

Interactive media is any form of media where consumers are able to engage and interact
(Dhir 2021). Ensure that you are able to explain what interactive media is. Follow these links
for a better understanding (for noting):
• 7 Great Examples of Interactive Advertising – Gist (getgist.com)
• (PDF) A Design Framework of Interactive Media (researchgate.net)

38
 Discussion forum activity 3.1

1. Briefly differentiate between the following terms using your prescribed textbook:
• broadcast media
• print media
• out-of-home media
• interactive media
2. Do some research and give examples of the challenges and opportunities facing the
South African media industry, according to your prescribed textbook.

3.3 MAJOR ADVERTISING MEDIA

(Study section 4.3 in the prescribed textbook.)

Advertising media refers to different media channels used to advertise marketing

messsages (Bhasin 2021). Ensure that you are able to differentiate between the various
categories of media (shown in figure 3.4 below) and each media channel (print, broadcast
and out-of-home) with regard to their advantages, disadvantages, message placement and
measuring of reach. Note that interactive media is discussed in more detail in learning unit
7 of this study guide.

Categories of
media

Controllable Uncontrollable
Mass media Niche media
media media

Figure 3.4 Categories of media

Source: adapted from Van Heerden et al (2019)

39
Discussion forum activity 3.2

Differentiate between the various categories of media according to your prescribed textbook,
providing practical examples of each.

3.3.1 Broadcast media

(Study section 4.3.1 in the prescribed textbook.)

Digital marketing has seen a substantial investment in recent years and you might be
wondering if traditional media such as broadcast media is still relevant. Maggs (2021)
mentions that globally marketers are reassessing the contribution of traditional media and
taking a more holistic view of their marketing campaign. After reading this section in your
prescribed textbook, you need to be able to discuss the different trends in television and
different types of radio advertisements. You also need to describe some of the advantages
and disadvantages of using television and radio to advertise. Make sure that you can explain
what an advertiser needs to consider when buying television and radio time and how the
viewing reach of television and radio audiences is measured.

Discussion forum activity 3.3

Mzanzi Bank, a South African bank, is set to change the banking industry by helping South
Africans become financially healthy. It rewards customers if they save, invest and pay off
their assets. The target market for Mzanzi Bank is LSM 8-10, tech-savvy individuals with
high savings and borrowings. Mzanzi Bank is about to launch its first advertising campaign,
which will focus on introducing the innovative features of the Mzanzi banking app and
highlighting how easy it is to start banking with Mzanzi Bank.

Note: Mzanzi Bank is a fictitious company.

Assume you are the marketing manager for Mzanzi Bank and you are considering launching
the advertising campaign on television and radio first.

40
1. Identify and discuss the different trends, according to your prescribed textbook, in
television and the different types of radio advertisements.
2. Discuss the advantages and disadvantages, according to your prescribed textbook, for
Mzanzi Bank in advertising on television and radio.
3. Explain how Mzanzi Bank can buy television time, according to your prescribed
textbook.
4. Explain how television and radio audiences are measured, according to your prescribed
textbook.

3.3.2 Print media

(Study section 4.3.2 in the prescribed textbook.)

After studying this section of the prescribed textbook, you need to be able to explain the
classification of newspapers and magazines. Identify and discuss the different types of
newspapers and magazines that advertisers can choose from. You also need to describe
some of the advantages and disadvantages of advertising in newspapers and magazines.
Make sure that you can explain what advertisers need to consider when buying newspaper
and magazine space and discuss how magazine and newspaper audiences are measured.

Discussion forum activity 3.4

After initially only advertising on television and radio, Mzanzi Bank decides to expand its
advertising campaign to include print media.

1. Identify four types of newspapers, according to your prescribed textbook, that Mzanzi
Bank can use, providing an example of each.
2. Identify three broad categories of magazines, according to your prescribed textbook,
providing an example of each. Then justify which one Mzanzi Bank should advertise in.
3. Explain how Mzanzi Bank can use bleed pages, creative space and split runs, according
to your prescribed textbook.
4. Discuss the advantages and disadvantages, according to your prescribed textbook, for
Mzanzi Bank in advertising in newspapers and magazines.
5. Explain how newspaper and magazine audiences are measured, according to your
prescribed textbook.
6. Identify the types of newspaper and magazine advertising, according to your prescribed
textbook, providing an example of each by conducting research online.

41
3.3.3 Out-of-home media
(Study section 4.3.3 in the prescribed textbook.)

After working through this section of the prescribed textbook, you should be able to discuss
the various out-of-home media as well as the advantages and disadvantages of each.
Follow the link to get a better understand of out-of-home media (for noting):
• (PDF) Out-of-home advertising media: theoretical and industry perspectives
(researchgate.net)
• One of the best examples of outdoor advertising! - YouTube

Discussion forum activity 3.5

1. In your own words, describe the concept of out-of-home media.

2. Differentiate between billboard advertising, aerial advertising and mobile billboards,
according to your prescribed textbook, and give an example of each by conducting
research online.
3. Identify three types of transit advertising according to your prescribed textbook and
provide practical examples of each.
4. Give an example of in-store media and promotional products marketing that you have
recently come across. Also do some research online.
5. Discuss the advantages and disadvantages, according to your prescribed textbook, of
using outdoor advertising, directory advertising, advertising in cinemas and in-flight
advertising.
6. You are the marketing manager for a cellphone brand, Mobile Tech, and you are
considering using out-of-home media to advertise. What are some of the branded
entertainment, according to your prescribed textbook, that Mobile Tech can use?

3.3.4 Interactive media

(Study section 4.3.4 in the prescribed textbook.)

After reading this section in your prescribed textbook, you need to be able to define
interactive media and explain why interactive media is valuable in building brand
relationships. In learning unit 7 we will take a more in-depth look at interactive media.

42
 Discussion forum activity 3.6

Describe in your own words the concept of interactive media.

3.4 DEVELOPING THE MEDIA PLAN

(Study section 4.4 in the prescribed textbook.)

In this section of the prescribed textbook, we look at the process of developing a media
plan. You should be able to explain what a media plan is and discuss some of the problems
that media planners can run into when developing the media plan. Make sure that you are
able to discuss the following elements of the media plan shown in figure 3.5:

Establishing media
Media brief
objectives

Media plan

Developing and
implementing media Evaluation and follow-up
strategies

Figure 3.5 Media plan elements

Source: adapted from Van Heerden et al (2019)

3.4.1 Media brief

(Study section 4.4.1 in the prescribed textbook.)

A media brief is the basis of the media plan as it clearly identifies who the target market is,
environmental factors that could impact the media plan and the specific geographic location
that is best suited for the advertisment (as shown in figure 3.6 below). After reading through
this section of the prescribed textbook, make sure that you can explain what a media brief
is and why market analysis is important.

43
 Target market
Media brief

Environmental factors

Targeted geographical area for

advertising

Figure 3.6 What the media brief entails

Source: adapted from Van Heerden et al (2019)

3.4.2 Establishing media objectives

(Study section 4.4.2 in the prescribed textbook.)

Once the media brief has been finalised, the next step is to establish the media objectives.
The objectives should clearly explain what brand message and impact should be achieved
using the chosen media. After reading this section in your prescribed textbook, you need to
be able to highlight some of the issues media planners face when setting media objectives
and identify five factors that media planners should consider when connecting the
organisation and customers:

3.4.3 Developing and implementing media strategies

(Study section 4.4.3 in the prescribed textbook.)

After the media objectives have been set, the next step is to develop and implement the
media strategies. After reading through this section of the prescribed textbook, make sure
that you are able to discuss the factors that media planners need to consider when
implementing media strategies as illustrated in figure 3.7 below.

44
 Media mix

Target marketing coverage

Developing and implementing

Geographic coverage
media strategies

Scheduling

Reach vs frequency vs weight

Creative aspects and mood

Flexibiity and budget consideration

Figure 3.7 What developing and implementing media strategies entail

Source: adapted from Van Heerden et al (2019)

3.4.4 Evaluation and follow-up

(Study section 4.4.4 in the prescribed textbook.)

The final step of the media plan is to evaluate whether the research objectives were
achieved through the media strategies developed. After reading through this section of the
prescribed textbook, you should be able to explain how a media planner can measure the
effectiveness of the implemented media plan and the different stages of advertisement
testing, shown in figure 3.8.

45
 Concept Rough art, copy Pretesting of Market testing
generation and and commercial finished of
testing testing advertisements advertisements

Figure 3.8 Stages of advertisement testing

Source: adapted from Van Heerden et al (2019)

Self-assessment activity 3.1

Champion Sauces was established two years ago by Chef Siyabonga. The company had
humble beginnings, only selling a few sauces a month. Since then, the company has
expanded substantially. Champion Sauces will now be available in all major cities across
Gauteng. Siyabonga hired you as the marketing manager and you agreed that Champion
Sauces can no longer rely on word-of-mouth alone. Next month you will launch a marketing
campaign that is aimed at creating awareness for Champion Sauces. You will need to
develop a media plan to determine the combination of media selections and purchases to
achieve the marketing campaign.

Note: Champion Sauces is a fictitious company.

1. Discuss some of the problems that you as the marketing manager need to be aware of
when developing the media strategy, according to your prescribed textbook.
2. Explain what a media brief is and how you will conduct market analysis, according to
your prescribed textbook, for Champion Sauces.
3. Champion Sauces are launching a new barbeque flavour sauce. Formulate possible
media objectives, according to your prescribed textbook, for Champion Sauces.
4. Discuss the media planning factors, according to your prescribed textbook, that
Champion Sauces need to take into consideration when developing and implementing
media strategies.

46
5. Champion Sauces have decided to collaborate with a well-known South African chef to
create a number of dishes that have Champion Sauces as one of the ingredients. When
customers purchase a bottle of Champion Sauce, they will get a copy of the recipe book.
They run a campaign to create awareness of the recipe book. They decide to run a print
campaign. Discuss how you as the marketing manager can measure the effectiveness
of the media plan, according to your prescribed textbook, for Champion Sauces.

3.5 REGULATIONS AND ETHICAL ASPECTS TO CONSIDER IN MEDIA PLANNING

(Study section 4.5 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you should be able to identify
the different regulating bodies and discuss some of the specific ethical concerns regarding
the location/placement of advertisements.

Follow these links to read more about each of the following regulatory bodies:
• Independent Communications Authority of South Africa (icasa.org.za)
• National Association of Broadcasters (nab.org.za)
• Broadcasting Complaints Commission of South Africa (bccsa.co.za)
• Print and Digital Media SA (PDMSA) (pdmedia.org.za)
• Association of Independent Publishers (AIP)
• Revised South African Manual for Outdoor Advertising Control (SAMOAC) | Department
of Environmental Affairs (dffe.gov.za)

Please note that ASASA filed for liquidation (De Villiers 2018) and MPASA decided to
dissolve and deregister the industry body (Nevill 2013).

3.6 SUMMARY

In this learning unit we discussed media management. We first considered the media
landscape in South Africa. We then differentiated between the major advertising media,
namely broadcast, print, out-of-home media and interactive media. Next, we outlined the
steps in developing a media plan. Lastly, we considered some legal and ethical issues in
media planning.

3.7 ASSESSMENT QUESTIONS

Now that you have completed learning unit 3, complete the assessment questions to test
your knowledge on some of the concepts discussed.

47
QUESTION 1

Peter is the marketing manager for a company that sells frozen pizza. He is conducting
secondary research to get a better understanding of the company’s target market. This
refers to which step in the media planning process?

1. media brief
2. establishing media objectives
3. developing and implementing media strategies
4. evaluation and follow-up

QUESTION 2

A blog entry on the company website is an example of which category of media?

1. mass media
2. niche media
3. controllable media
4. uncontrollable media

QUESTION 3

A technology brand creates a morning talk show that covers a wide variety of topics and
features some of the company’s products on the show. This is an example of …

1. directory advertising.
2. branded entertainment.
3. promotional product marketing.
4. transit advertising.

QUESTION 4

Amahle, a media planner, decides to use a flighted media schedule to advertise her product.
This refers to which step in the media planning process?

1. media brief
2. establishing media objectives
3. developing and implementing media strategies
4. evaluation and follow-up

48
QUESTION 5

Amanda wants to advertise her home-cooked meal delivery service which operates in a few
suburbs in Tshwane South. She wants to focus only on the few areas where she delivers.
Which type of newspaper would be best suited to advertise her services?

1. daily
2. weekly
3. national
4. special audience

3.8 REFLECTION

Before you continue to the next learning unit, complete the following Likert scale. After
studying the prescribed textbook in conjunction with the study guide, rate your competency
in the topics covered in this learning unit:

Learning Novice Partial Average Above Expert

outcomes competence competence average
competence
Explore the 1 2 3 4 5
concept of
media
management
Outline the 1 2 3 4 5
media
landscape in
South Africa
Differentiate 1 2 3 4 5
between the
major types of
advertising
media
Discuss the
steps in
developing a
media plan
Discuss the 1 2 3 4 5
legal and
ethical
considerations
in media
management

49
 Apply the 1 2 3 4 5
various
concepts
within the
African context

If you rated yourself 3 or below for any of the learning outcomes, work through the relevant
sections in your prescribed textbook and study guide again. Post on the discussion forum
which learning outcomes you are struggling with.

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[Accessed 8 May 2022].
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Ciccarelli, D. 2021. What is the most effective length for a TV commercial?
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December 2021].
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south-africa-asasa-served-with-notice-of-liquidation-2018-10 [Accessed 14 February
2022].
Dhir, R. 2021. Interactive media. https://www.investopedia.com/terms/i/interactive-media.asp
[Accessed 6 December 2021].
Eco Atlas. 2022. Tourism tattler travel trade journal. https://ecoatlas.co.za/view/tourism-tattler-
travel-trade-journal [Accessed 6 February 2022].
Financial Mail. 2021. Media platforms: radio and reading in SA.
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 platforms-radio-and-reading-in-
sa/#:~:text=Reading%20value%20into%20content%20reading&text=Fifty%2Dtwo%20p
ercent%20of%20SA,41%25%20read%20a%20printed%20edition [Accessed 6 February
2022].
Friedman, B. 2021. Will your old analogue TV still work after March 2022 digital switchover?
https://www.capetalk.co.za/articles/430417/will-your-old-analogue-tv-still-work-after-
march-2022-digital-
switchover#:~:text=Most%20TVs%20can%20be%20converted,box%20to%20your%20
existing%20television [Accessed 6 December 2021].
Government Communication and Information System. 2022. Insight Newsletter Issue 25.
https://www.gcis.gov.za/insight-newsletter-issue-25 [Accessed 13 February 2022].
Kantar. 2021. Kantar announces South Africa's Top 10 Best Liked Ads for Q1 and Q2 2021.
https://www.bizcommunity.com/Article/196/12/222906.html [Accessed 9 February 2022].
Khumalo, V. DStv South Africa packages, channels and prices 2022.
https://southafricalists.com/dstv-packages-channels-
prices/#:~:text=DSTV%20South%20Africa%20Premium%20Package&text=With%20the
%20DSTV%20Premium%20package,channels%20and%2095%2B%20audio%20chann
els [Accessed 9 February 2022].
Lord, R. 2020. What is happening in 2020?
https://www.bizcommunity.com/Article/196/810/200373.html [Accessed 9 February
2022].
Maggs, J. 2021. Radio advertising: what will make them listen?
https://www.businesslive.co.za/redzone/news-insights/2021-04-29-radio-advertising-
what-will-make-them-listen/ [Accessed 12 February 2021].
Magubane, K. 2020. Bold new plans but same old problems for SABC as report shows how far
it has to go. https://www.news24.com/fin24/economy/bold-new-plans-but-same-old-
problems-for-sabc-as-report-shows-how-far-it-has-to-go-20201117 [Accessed 5
February 2021].
MBA Skool Team. 2020. Brand Development Index (BDI) meaning, importance & example.
https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/13424-
brand-development-index.html#:~:text=1.,should%20be%20in%20extension%20mode
[Accessed 29 April 2021].
McMahon, M. 2022. What is interactive TV? https://www.easytechjunkie.com/what-is-
interactive-tv.htm [Accessed 5 February 2022].
Media24. 2022. 2022/23 fiscal rates & schedules. https://www.media24.com/wp-
content/uploads/2021/12/M24-DIGITAL-AND-PRINT-RATE-CARD-2022-FINAL-
10_12.pdf [Accessed 5 February 2022].
Media24. 2022. About Media24. https://www.media24.com/about-us/ [Accessed 5 February
2022].
Media24. 2022. Media24 magazines. https://www.media24.com/magazines/ [Accessed 5
February 2022].
Multichoice. 2022. Africa's storytellers. https://www.multichoice.com/africas-storytellers
[Accessed 6 December 2021].

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MyDSTV. 2022. HD PVR (2 Tuner). https://www.dstv.co.za/mydstv/help/dstv-hardware/hd-pvr-
2-
tuner/#:~:text=Our%20personal%20video%20recorder%20(PVR,for%20up%20to%20tw
o%20hours [Accessed 5 February 2022].
Netflorist. 2015. Daisy us rollin, they hatin. https://blog.netflorist.co.za/daisy-us-rollin-they-hatin/
[Accessed 30 April 2022].
Nevill, G. 2013. Death of MPASA good for magazine industry.
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[Accessed 11 February 2022].
Odendaal, N. 2021. South Africa’s digital migration accelerates.
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2021-10-06 [Accessed 9 September 2022].
Outdoor Ads. 2021. Moses Mabhida Stadium. https://www.outdoor-ads.co.za/listings/moses-
mabhida-stadium/ [Accessed 30 April 2022].
Prior, B. 2019. The impact of Netflix on movie theatres in South Africa.
https://mybroadband.co.za/news/broadcasting/294878-the-impact-of-netflix-on-movie-
theatres-in-south-africa.html [Accessed 2 May 2022].
Sewnarain, Y. 2021. South Africans spending 70% more time in front of TVs due to pandemic.
https://www.citizen.co.za/entertainment/2330005/south-africans-spending-70-more-
time-in-front-of-tvs-due-to-pandemic/ [Accessed 6 December 2021].
Statisa. 2021. Advertising spending worldwide from 2000 to 2023 (in million US dolllars).
https://www.statista.com/statistics/1174981/advertising-expenditure-worldwide/
[Accessed 6 December 2021].
Techcentral. 2022. New free-to-air satellite TV service launching in South Africa.
https://techcentral.co.za/premiumfree-new-free-to-air-satellite-tv-service-launching-in-
south-africa/169641/ [Accessed 6 February 2022].
The Citizen. 2022. Supplements and special features. https://www.citizen.co.za/about-us/
[Accessed 7 February 2022].
Truth About Money. 2021. SA streaming services compared.
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2022].
University of Fort Hare. [n.d.]. Broadcast media.
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media'%20covers,by%20the%20media%20and%20press. [Accessed 6 February 2022].
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ed. Pretoria: Van Schaik.
Wiggle tunes. 2021. Radio advertising boosts your brand and increases your audience.
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%20thousand) [Accessed 6 February 2022].
Yellow Pages. 2022. You're hustling every day. Who's hustling for you?
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52
LEARNING UNIT 4
SALES PROMOTION

Overview of this learning unit

Learning outcomes
Key concepts
4.1 Introduction
4.2 Nature and scope of sales promotion
4.3 Classification of sales promotion
4.4 Developing the sales promotion programme
4.5 The role of sales promotion in the marketing process
4.6 The role of sales promotion in the IMC process
4.7 The debate around the impact of sales promotion on brand equity
4.8 Legal, regulatory and ethical sales promotion issues
4.9 Summary
4.10 Assessment questions
4.11 Reflection
Bibliography

OVERVIEW OF THIS LEARNING UNIT

In the previous learning unit, we discussed the different types of media and how to manage
them. In this learning unit we provide an overview of the importance of sales promotion. We
will begin our discussion with the nature and scope as well as the classification of sales
promotion. We will then discuss the steps in developing the sales promotion programme.
Next, we will discuss the role of sales promotion in the marketing process and the IMC.
Lastly, we refer to the debate on the impact of sales promotion on brand equity and consider
the legal and ethical issues in sales promotion.

LEARNING OUTCOMES

After completing this learning unit, you should be able to

• discuss the nature and scope of sales promotion
• distinguish between the different classifications of sales promotion
• outline the development of the sales promotion programme
• interpret the role of sales promotion in the marketing process
• discuss the role of sales promotion in the IMC process

53
• explain the debate on the impact of sales promotion on brand equity
• discuss the legal, regulatory and ethical sales promotion issues
• apply the various concepts within the African context

KEY CONCEPTS

• Sales promotions
• Consumer-orientated sales promotion
• Trade-orientated sales promotion
• Sales force-orientated sales promotion
• Sales promotion programme
• Push and pull strategies

4.1 INTRODUCTION
(Study section 6.1 in the prescribed textbook.)

Just walk into a supermarket or visit an online store and you will see customers now have
thousands of brands to choose from. With seemingly few or no differences between most
competing products, it is difficult for brands to stand out. Organisations can therefore use
sales promotion to encourage customers to buy their product rather than a competing
brand’s product, motivate retailers to give their product more shelf space or incentivise their
sales force to reach sales targets.

4.2 NATURE AND SCOPE OF SALES PROMOTION

(Study section 6.2 in the prescribed textbook.)

Sales promotions are short-term strategies to create interest in goods offered and to
increase sales for a limited period. After reading through this section of the prescribed
textbook, you should be able to define sales promotions and identify the characteristics of
sales promotions.

54
Follow the link for a better understanding of what sales promotion is (for noting):
• What are Sales Promotions? - YouTube

Discussion forum activity 4.1

1. Formulate your own definition of sales promotion by conducting research online.

2. With reference to your textbook, describe the characteristics of sales promotions in your
own words and provide practical examples.

4.2.1 Advantages of sales promotion

(Study section 6.2.1 in the prescribed textbook.)

Why use sales promotions? After studying this section of the prescribed textbook, you need
to be able to discuss a number of advantages of using sales promotions as shown in figure
4.1 of this guide.

4.2.2 Disadvantages of sales promotion

(Study section 6.2.2 in the prescribed textbook.)

As shown in figure 4.1, there is also a downside to using sales promotions, and in this
section of the prescribed textbook, we look at some of these disadvantages. An article
published by Bizcommunity (2019) mentions that South African consumers are now
“discount-obsessed”. It seems that more frequent promotions lead to consumers being more
sensitive to regular prices and training customers to buy on promotion. Follow this link to
read the full article (for noting):
• Discount-obsessed South Africans being trained to buy on promotion
(bizcommunity.com)

55
 Advantages Disadvantages

•Motivate consumers to buy •Consumers may wait for promotions

•Build or maintain sales •Start price wars among competitors
•Easily leveraged with other marketing •Affects established brand and their
communication techniques image
•Assist in gathering valuable shopper
insight

Figure 4.1 Advantages and disadvantages of sales promotion

Source: adapted from Van Heerden et al (2019)

Discussion forum activity 4.2

Handcrafted in Africa is a jewellery store located in Johannesburg. Ayanda, who is the owner
and founder of Handcrafted in Africa, specialises in rings, earrings and pendants. Her store
is an online shop and delivers all over South Africa. Ayanda designs every piece of jewellery
herself and she has a dynamic team that works to ensure that customers are satisfied with
the items they purchase. This team includes Lesley, the marketing manager. Handcrafted in
Africa opened their doors 3 years ago, but the last few months have been quiet and Ayanda
is worried that if she does not start selling more jewellery pieces soon, she will need to close
her doors. Lesley has suggested that they need to focus more on sales promotions.

Note: Handcrafted in Africa is a fictitious company.

1. Explain the advantages of sales promotions, according to your prescribed textbook, for
Handcrafted in Africa.
2. Explain the disadvantages of sales promotions, according to your prescribed textbook,
for Handcrafted in Africa.

4.2.3 The growth of sales promotion

(Study section 6.2.3 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to understand why
the number of retailers using sales promotions has increased. Sales promotions can help

56
initiate an instant response from customers and motivate them to buy a product or service.
Dis-Chem, for example, launched a very succesful Disney mini figurine promotion. This
promotion saw Dis-Chem gain 500 000 new customers in just two months at the time the
promotion was running and its sales rose by 10%. Many of the new customers also joined
their loyalty programme (Rangogo 2019).

Discussion forum activity 4.3

Do some additional research online and explain why there has been a significant growth in
sales promotions in South Africa. Also provide practical examples.

4.3 CLASSIFICATION OF SALES PROMOTION

(Study section 6.3 in the prescribed textbook.)

There are three categories of sales promotions. As shown in figure 6.1 of your prescribed
textbook, these are customer-orientated, business- or trade-orientated and sales force-
orientated sales promotions. Let’s take a closer look at each of them, starting with customer-
orientated sales promotions.

4.3.1 Consumer-orientated sales promotion

(Study section 6.3.1 in the prescribed textbook.)

Consumer-orientated sales promotions are a marketing technique that is focused on the

consumer, encouraging the consumer to make a purchase (Joseph 2019). In this section of
the prescribed book, the objectives and techniques of consumer-orientated sales promotion
are described. You need to be able to discuss the importance of consumer-orientated sales
promotions and distinguish between the different techniques used, namely sampling, price
incentives, tie-in promotions, loyalty programmes, competitions/contests and sweepstakes,
bonus packs and warranties and how companies use these consumer-orientated sales
promotions to motivate customers to purchase their products. As you will notice, figures 6.3,
6.4 and 6.5 in your prescribed textbook present statistics on coupon redemption by retail
outlet in South Africa, statistics on coupon redemption by product category and method of

57
distribution and the top most-used loyalty programmes. These are based on 2016 and 2017
data.

The following link provides an overview of the South African loyalty landscape for 2018/19
(for noting):
• Truth-BrandMapp-Loyalty-Whitepaper-201819.pdf

Discussion forum activity 4.4

1. Discuss the objectives of consumer-orientated sales promotion, according to your

prescribed textbook, by providing practical examples of each.
2. Discuss the different consumer-orientated sales promotions techniques, according to
your prescribed textbook, by providing practical examples of each.
3. Do some research and try to find the latest statistics on coupon redemption and
loyalty programmes in South Africa.

4.3.2 Trade-orientated sales promotion

(Study section 6.3.2 in the prescribed textbook.)

Trade-orientated sales promotions focus on the supply side, giving incentives to resellers
to stock products and ensuring that the product is widely available to customers. By contrast,
consumer-orientated sales promotions focus on driving demand for the product by offering
customers an incentive to buy the product (Woods 2019). After reading through this section
of the prescribed textbook, you need to be able to discuss the objectives and techniques of
trade-orientated sales promotions, namely cooperative advertising, trade allowances,
display and point-of-purchase materials, in-store promotions, trade shows, sales education
and incentives.

Discussion forum activity 4.5

Suppose you are the marketing manager for a well-known food and beverage company,
Favourite Brands. Your company stocks a wide range of products, many of which have
become household names. Favourite Brands has been around for many years and supplies

58
to retailers all over South Africa, but sales have slowed down since the start of the pandemic
and you are looking to increase your brand presence.
1. Discuss the objectives of trade-orientated sales promotion, according to your prescribed
textbook, for Favourite Brands.
2. Using your prescribed textbook, distinguish between the various types of trade-
orientated sales promotion techniques that Favourite Brands can use and provide a
practical example of each.

4.3.3 Sales force-orientated sales promotion

(Study section 6.3.3 in the prescribed textbook.)

Sales force incentive programmes are a good way to keep a sales force motivated.
Companies should include employees when developing the programme to ensure that the
prizes are of such a nature that it will truly motivate them (Joseph 2021). After reading
through this section of the prescribed textbook, you need to be able to discuss the objectives
and techniques of sales force-orientated sales promotions, namely bonuses, contests and
sales meets.

Discussion forum activity 4.6

You are the manager at a car dealership located in Pretoria:

1. Discuss the different objectives for sales force-orientated sales promotions.

2. Give an example of each of the critical success factors for sales force-orientated sales
promotions that the car dealership implements.

4.4 DEVELOPING THE SALES PROMOTION PROGRAMME

(Study section 6.4 in the prescribed textbook.)

In this section of the prescribed textbook, the ten steps in developinig the sales promotion
programme are outlined and a few considerations when using a sales promotion agency

59
are highlighted. After studying this section of the prescribed book, you need to be able to
discuss and apply the ten steps in developing the sales promotion programme.

Now that you understand the different orientations of sales promotions discussed in this
learning unit, answer self-assessment activity 4.1 to apply what you have learnt.

Self-assessment activity 4.1

Refer to the Handmade in Africa case study (discussion forum activity 4.2). Discuss the ten
steps Handmade in Africa should follow in developing their sales promotion programme.
Compare your answer to the suggested solution to see if you were on the right track or see
where you can improve.

4.5 THE ROLE OF SALES PROMOTION IN THE MARKETING PROCESS

(Study section 6.5 in the prescribed textbook.)

In this section of the prescribed book, we take a closer look at the role of sales promotion
in the marketing process. It is important to note that sales promotions influence marketing
directly and indirectly in a number of ways. Sales promotions can be used in different ways
in the various stages of the product life cycle (PLC). You should be able to discuss the direct
and indirect impact of sales promotion, as well as the role of sales promotion in the PLC.

Discussion forum activity 4.7

1. Do some research online and discuss how sales promotion directly and indirectly
impacts marketing by providing examples.
2. In your own words, explain how sales promotions can be incorporated in each stage of
the product life cycle.

60
4.6 THE ROLE OF SALES PROMOTION IN THE IMC PROCESS
(Study section 6.6 in the prescribed textbook.)

In this section of the prescribed book, we consider the different push and pull sales
promotion techniques. When organisations use push strategies, they attempt to bring the
product to the customer, they try to “push” their products on customers. Pull strategies, on
the other hand, focus on getting customers to come to you. You “pull” customers towards
you (Robertson 2019). If you have a look at figure 6.12 in the book, you will see that a
manufacturer’s push strategies are directed at channel members and their pull strategies
are directed at the end customer. They use trade-orientated sales promotions when they
follow a push strategy and consumer-orientated sales promotions when they follow a pull
strategy. You need to be able to discuss how sales promotion can impact customers either
directly or indirectly.

Follow the link for a better understanding of push and pull strategies (for noting):
• Marketing – Push Strategy vs Pull Strategy – YouTube

Discussion forum activity 4.8

Do some research on the push-pull dynamics in marketing communication and explain in

your own words what push and pull strategies entail. Provide practical examples of each.

4.7 THE DEBATE AROUND THE IMPACT OF SALES PROMOTION ON BRAND EQUITY
(Study section 6.7 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to be aware of the
possible effects sales promotions can have on brand equity, either by reinforcing or reducing
a customer’s loyalty towards a brand. Sales promotions do not always have the desired
effect and can impact a brand in a negative way. You need to be able to explain the different
opinions about the effect of sales promotion on brand equity.

61
Discussion forum activity 4.9

Give an example of where you think sales promotions can reinforce a customer’s loyalty
towards a brand and in what instances it can reduce a customer’s loyalty towards the brand.

4.8 LEGAL, REGULATORY AND ETHICAL SALES PROMOTION ISSUES

(Study section 6.8 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to be aware of the
numerous legal, regulatory and ethical issues that companies need to adhere to when
offering sales promotions, in particular the Consumer Protection Act. Follow this link for a
summary of the Consumer Protection Act:
• Consumer Protection Act | LegalWise

4.9 SUMMARY

In this learning unit we discussed sales promotion. We first explained what sales promotion
is and then discussed the classification of sales promotion. We then discussed the ten steps
in the sales promotion programme. Next, we looked at the role of sales promotion in the
marketing process and the IMC. Finally, we considered the debate on how sales promotion
impacts brand equity as well as the legal and ethical issues organisations need to consider
when using sales promotion.

4.10 ASSESSMENT QUESTIONS

Now that you have completed learning unit 4, complete the assessment questions to test
your knowledge on some of the concepts discussed.

QUESTION 1

Sharon owns a small bakery and needs to develop a sales promotion strategy to promote
her latest pastries. She has decided to use in-store promotion. This scenario refers to which
step of the sales promotion programme?

1. Develop an action plan to implement the promotion.

62
2. Set the specific sales promotion objectives.
3. Set evaluation and control measures.
4. Select the sales promotion techniques to be used.

QUESTION 2

Devi is the owner of a beauty store and decided to send samples of her new body butter
range to all customer referrals from customers that ordered online. This is an example of …
sampling.

1. door-to-door
2. mail
3. on-pack
4. mobile

QUESTION 3

Piet just launched a new energy drink, and he wants to encourage customers to purchase
his products immediately. Which one of the following promotion techniques should Piet NOT
use?

1. mobile sampling
2. premiums
3. loyalty programmes
4. buying allowances

QUESTION 4

Amahle is the marketing manager of a car dealership, and she wants to motivate her sales
team to reach a specified target. Which one of the following sales force-orientated sales
promotion techniques should she use?

1. rebates
2. sales meets
3. coupons
4. premiums

QUESTION 5

Your company manufactures pet accessories. Your pet beds are still selling well, but looking
at the sales figures of the past six months, you can see that sales have increased at a slower

63
pace. You have decided to offer customers a discount on the pet beds. In which phase of
the product life cycle are your pet beds likely in?

1. introduction
2. growth
3. maturity
4. decline

4.11 REFLECTION
Before you continue to the next learning unit, complete the following Likert scale. After
studying the prescribed textbook in conjunction with the study guide, rate your competency
in the topics covered in this learning unit:

Learning Novice Partial Average Above Expert

outcomes competence competence average
competence
Discuss the 1 2 3 4 5
nature and
scope of
sales
promotion
Distinguish 1 2 3 4 5
between the
different
classifications
of sales
promotion
Outline the 1 2 3 4 5
development
of the sales
promotion
programme
Interpret the 1 2 3 4 5
role of sales
promotion in
the marketing
process
Discuss the 1 2 3 4 5
role of sales
promotion in
the IMC
process

64
 Explain the 1 2 3 4 5
debate on the
impact of
sales
promotion on
brand equity
Discuss the 1 2 3 4 5
legal,
regulatory
and ethical
sales
promotion
issues
Apply the 1 2 3 4 5
various
concepts
within the
African
context

If you rated yourself 3 or below for any of the learning outcomes, work through the relevant
sections in your prescribed textbook and study guide again. Post on the discussion forum
which learning outcomes you are struggling with.

BIBLIOGRAPHY

Apple Singapore. 2020. Meet iPhone 12 — Apple.

https://www.youtube.com/watch?v=9GA4gqLeeIQ [Accessed 7 January 2022].
Africa Big 7. 2021. Exhibit. https://www.africabig7.com/exhibit/ [Accessed 4 June 2021].
Bizcommunity. 2019. Discount-obsessed South Africans being trained to buy on promotion.
https://www.bizcommunity.com/Article/196/168/193078.html [Accessed 1 June 2021].
Bowen, T. 2021. How supermarkets are using big data & predictive analytics to win.
https://expert360.com/resources/articles/supermarket-retail-big-data [Accessed 12
June 2021].
Builders. 2021. Vouchers & coupons T's & C's. https://www.builders.co.za/vouchers-and-
coupon-ts-and-cs [Accessed 12 July 2021].
Checkers. 2021. All specials. https://www.checkers.co.za/All-
Departments/Drinks/Coffee/Instant-Coffee/Jacobs-Gold-Instant-Coffee-
230g/p/10731103EA [Accessed 12 July 2021].
Contagious. 2019. Glade hijacks packaging pillows for product trials in Walmart tie-up.
https://www.contagious.com/news-and-views/glade-sneaks-into-packaging-pillows-in-
walmart-online-shopping-campaign [Accessed 12 July 2021].

65
Dermastore. 2021. Promotions. https://www.dermastore.co.za/promotions [Accessed 10 June
2021].
eNCA. 2015. Stikeez help boost Pick n Pay profits. https://www.enca.com/money/stikeez-
helps-boost-pick-n-pay-profits [Accessed 11 June 2021].
Financial Mail. 2021. In-home sampling: connecting brands to consumers during Covid.
https://www.businesslive.co.za/redzone/news-insights/2021-11-10-in-home-sampling-
connecting-brands-to-consumers-during-covid/ [Accessed 10 January 2021].
Global Compact Network UK. 2021. Ten principles. https://www.unglobalcompact.org.uk/the-
ten-principles/ [Accessed 12 July 2021].
Joseph, C. 2019. Consumer sales promotion techniques.
https://smallbusiness.chron.com/consumer-sales-promotion-techniques-1035.html
[Accessed 4 June 2021].
Joseph, C. 2021. Sales force incentive programs. https://smallbusiness.chron.com/sales-
force-incentive-programs-1062.html [Accessed 7 June 2021].
Krispy Kreme. 2021. App-solute joy. https://www.krispykremesa.com/app-landing-page/
[Accessed 13 June 2021].
Legalwise. [n.d.]. Consumer Protection Act. https://www.legalwise.co.za/help-
yourself/quicklaw-guides. [Accessed 7 January 2022].
Libretexts. 2021. Factors influencing the promotion mix.
https://biz.libretexts.org/Courses/Lumen_Learning/Book%3A_Introduction_to_Busines
s_(Lumen)/29%3A_Module_13-_Marketing_Function/29.24%3A_Module_12-
_Marketing/29.24.02%3A_Reading-_The_Promotion_Mix-_The_Fourth_P [Accessed 7
January 2022].
Onedayonly. 2021. About. https://www.onedayonly.co.za/about-us [Accessed 9 June 2021].
Onedayonly. 2021. Today’s deals. https://www.onedayonly.co.za/ [Accessed 7 June 2021].
Pay JustNow. 2021. South Africa’s risk-free, #INTERESTFREE payment solution.
https://payjustnow.com/ [Accessed 5 June 2021].
Rangogo, T. 2019. Dis-Chem bagged half a million new customers in two months - but still
disappointed investors. https://www.businessinsider.co.za/dis-chem-reports-500000-
new-customers-via-micropopz-promotion-campaign-in-trading-update-2019-2
[Accessed 3 June 2021].
Robertson, T. 2019. Difference between push & pull marketing.
https://smallbusiness.chron.com/difference-between-push-pull-marketing-31806.html
[Accessed 13 June 2021].
Sorbet. 2021. Sorbet Loyalty Programme. https://www.sorbet.co.za/sorbet-society/ [Accessed
1 June 2021].
Suttle, RC. 2021. Ways to break through advertising clutter.
https://smallbusiness.chron.com/clever-ways-break-through-advertising-clutter-
36660.html [Accessed 2 June 2021].
Takealot. 2021. Deals and promotions.
https://www.takealot.com/promotion/promotionsdeals?gclid=Cj0KCQjwk4yGBhDQARI
sACGfAevz_I449cQJDiHBDYgp1bWIkmHi866I_pW66mZXC0qseN-
v8JWCYCIaAotXEALw_wcB&gclsrc=aw.ds [Accessed 8 June 2021].

66
The Body Shop. 2021. Promotions.
https://www.thebodyshop.co.za/products/promotions/200ml-body-butters-and-250ml-
shower-gels [Accessed 1 June 2021].
The ODM Group. 2020. Gift with purchase ideas. https://www.theodmgroup.com/gift-with-
purchase/ [Accessed 7 January 2021].
Truth. 2018. South African Loyalty Landscape 2018/19. https://truth.co.za/2019/wp-
content/uploads/Truth-BrandMapp-Loyalty-Whitepaper-201819.pdf [Accessed 5 June
2021].
Truworths. 2021. Why open a Truworths account. https://accounts.truworths.co.za/ [Accessed
10 July 2021].
Van Heerden, N, Mulder, D & Sephapo, CM. 2019. Integrated marketing communication. 4th
ed. Pretoria: Van Schaik.
Woods, S. 2019. What are trade promotions? https://blog.pepperi.com/what-are-trade-
promotions [Accessed 5 June 2021].
Woolworths. 2021. wRewards. https://www.woolworths.co.za/wrewards/my-wrewards
[Accessed 11 July 2021].
10times. 2021. MamaMagic Baby Expo. https://10times.com/baby-expo-joburg [Accessed 10
July 2021].

67
LEARNING UNIT 5
PUBLIC RELATIONS AND PUBLICITY

Overview of this learning unit

Learning outcomes
Key concepts
5.1 Introduction
5.2 Framework for the inclusion of PR and publicity in the IMC programme
5.3 Public relations
5.4 Measurement of PR outcomes
5.5 Ethical issues
5.6 Summary
5.7 Assessment questions
5.8 Reflection
Bibliography

OVERVIEW OF THIS LEARNING UNIT

In the previous learning unit, we discussed sales promotion. In this learning unit we provide
an overview of public relations (PR) and publicity. We will begin our discussion by
considering the inclusion of PR and publicity in the IMC programme. Next, we will discuss
and consider how PR outcomes are measured. Lastly, we will look at some ethical issues
in PR and publicity.

LEARNING OUTCOMES

After completing this learning unit, you should be able to

• examine the framework for the inclusion of PR and publicity in the IMC programme
• identify and discuss the role of public relations
• explain the measurement of PR outcomes
• explain the ethical issues in public relations and publicity

68
KEY CONCEPTS
• Public relations (PR)
• Market
• Stakeholder
• Audience
• Interest group
• Public
• Publicity
• Stakeholder relations
• Corporate public relations (CPR)
• Marketing public relations (MPR)
• Corporate publicity
• Marketing publicity
• Public opinion

5.1 INTRODUCTION
(Study section 7.1 in the prescribed textbook.)
As technology evolves, customers have access to more information than ever before, but
unfortunately not everything we read is true. We are increasingly exposed to fake news
which can cause a great deal of uncertainty. Public relations and publicity can help navigate
the public through this sea of fake news and build relationships with stakeholders. Public
relations efforts and publicity should not be confused with advertising and sales promotions
where the organisation’s objective is to increase awareness of the services and products of
the organisation and increase sales. Rather, the objectives of PR and publicity are to
influence public opinion and to create positive communication about the organisation.

5.2 FRAMEWORK FOR THE INCLUSION OF PR AND PUBLICITY IN THE IMC

PROGRAMME
(Study section 7.2 in the prescribed textbook.)

In this section of the prescribed textbook, figure 7.1 illustrates the different elements that can
contribute to the IMC programme within a public relations and publicity framework. You need
to be able to identify and differentiate between each of the public relations and publicity
elements that can be intergrated in the IMC programme.

69
Discussion forum activity 5.1

Use the framework provided in figure 7.1 in the prescribed textbook. Add a practical example
of each element by conducting research online.

5.3 PUBLIC RELATIONS

(Study section 7.3 in the prescribed textbook.)

In this section of the prescribed textbook, we take a closer look at public relations, which refers
to strategically distributing information to manage the public’s perception of the brand (PRCA
2022). After reading through this section of the prescribed textbook, you need to be able to
differentiate between market, stakeholder, audience, interest group and public (as shown in
figure 5.1 below). You also need to be able to define the roles and responsibilities of PR and
discuss the reasons for intergrating PR functions and techniques in the IMC programme.

Groups of people

Market Stakeholder Audience Interest group Public

Figure 5.1 Groups of people

Source: adapted from Van Heerden et al (2019)

Follow the link for a better understanding of what public relations is (for noting):
• Marketing – What is Public Relations? – YouTube
• (PDF) Public Relations (researchgate.net)

70
Discussion forum activity 5.2

Mzanzi Beverages is a South African company established in 2001. They produce and bottle
several types of beverages, including juice, soft drinks and prepared water. Over the years
the company has seen exceptional growth and last year they listed on the JSE. They now
employ over 500 employees and have strategic partnerships with several suppliers. Their
head office is situated in Sandton and they have factories and warehouses in Johannesburg,
Durban and Cape Town. Mzanzi Beverages are passionate about uplifting the South African
community. They are actively involved in the communities where their warehouses are
situated. They have established a tutor centre that helps Gr 10 - 12 learners as well as a skills
workshop aimed at empowering women in the community. They also run a national bursary
programme which has seen thousands of students complete a higher education
degree/diploma. They have an in-house PR manager and at times they also use an external
PR consultancy firm.

Note: Mzanzi Beverages is a fictitious company.

1. Formulate your own definition of public relations by conducting research online.

2. Describe who the market, stakeholder, audience, interest group and public for Mzanzi
Beverages are.
3. Explain what the roles and responsibilities of PR are. Support your answer by referring to
Mzanzi Beverages.
4. Discuss why Mzanzi Beverages integrate their PR functions and techniques in the IMC
programme.

5.3.1 Stakeholder relationships

(Study section 7.3.1 in the prescribed textbook.)

This section of the prescribed textbook highlights stakeholder relationships. You need to be
able to identify key stakeholders and identify and discuss the location of some key external
groups, as well as provide practical examples. You need to be able to explain the
overlapping categories of stakeholders (as shown in figure 5.2 below) and be able to explain
why it is important for an organisation to analyse stakeholders.

71
 Different overlapping categories of stakeholders

Supporters,
Primary,
Internal and Traditional opponents
secondary
external and future and neutral
and marginal
opinions

Figure 5.2 Different overlapping categories of stakeholders

Source: adapted from Van Heerden et al (2019)

Discussion forum activity 5.3

1. Refer to the Mzanzi Beverages case study in discussion forum activity 5.2. Identify the
key external groups of stakeholders and their location which might be targeted or
exposed to all forms of marketing communication sent out by Mzanzi Beverages and
give an example of each group.
2. Discuss the different overlapping categories of stakeholders that Mzanzi Beverages need
to consider when segmenting broad categories of stakeholders.
3. Explain why it is important that Mzanzi Beverages segment their stakeholders.
4. Analyse Mzanzi Beverages’ strategic linkages by giving an example of the strategic
stakeholder for each linkage.

72
5.3.2 Public opinion
(Study section 7.3.2 in the prescribed textbook.)

In this section of the prescribed textbook, we consider the concept of public opinion. You need
to be able to discuss the process of opinion creation, define public opinion and differentiate
between the factors that create individual attitudes and perceptions (shown in figure 5.3). You
also need to be able to analyse the strategy to manage public opinion.

Factors that create individual attitudes and perceptions

Social
Personal Culture Education Family Religion Race
class
Figure 5.3 Factors that create individual attitudes and perceptions
Source: adapted from Van Heerden et al (2019)

Discussion forum activity 5.4

You are the PR manager for Mzanzi Beverages. Recently the company received some
backlash for not doing more to reduce their carbon emissions and counter global warming.
They are also expected to be more responsible in the production of their beverages, as the
manufacturing process does consume large quantities of water.
1. Explain to management what public opinion is and how it is formed.
2. Discuss the factors that can influence an individual’s or a group’s opinion.
3. Explain how Mzanzi Beverages can use public relations to change the opinions on
their efforts to curb global warming.

5.3.3 Corporate public relations (CPR) and corporate advertising

(Study section 7.3.3 in the prescribed textbook.)

In this section of the prescribed book, we consider a number of PR activities, namely crisis
communication, issues management, corporate identity, corporate image, social
responsibility and corporate advertising. After you have read through this section, you need

73
to be able to explain the concept of CPR and corporate advertising. You also need to be
able to discuss crisis management, explain what a communication plan sets out to do and
identify some of the do’s and don’ts when dealing with crisis communication. You also need
to be able to discuss issues of crisis management, categories of issues and the corporate
image process.

Discussion forum activity 5.5

Mzanzi Beverages was recently rocked by a scandal at one of its warehouses in Cape Town.
An undercover investigation revealed that the necessary quality checks are not always
performed at the warehouses. A batch of prepared water that was tested at an independent
source turned out to be contaminated and not fit for human consumption.

1. Explain to Mzanzi Beverages management what a crisis is.

2. Mzanzi Beverages have asked you, the PR manager, to develop a crisis communication
plan to deal with the unfolding crisis. Provide a brief description of what you are going to
include in such a plan.
3. You have proposed that Mzanzi Beverages need to be more proactive in their approach
to deal with issues that may impact the organisation. Discuss the possible operations
that an issue management strategy can include, identify the different categories of
issues and give an example.
4. Briefly explain the corporate image process that Mzanzi Beverages can follow to
manage their corporate identity.

5.3.4 Marketing public relations (MPR)

(Study section 7.3.4 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to be able to
differentiate between PR, CPR and MPR and further differentiate between proactive and
reactive MPR.

74
 PR MPR CPR

Customers and Corporate brand and

All stakeholders
prospects positioning
Figure 5.4 Difference between PR, MPR and CPR
Source: adapted from Van Heerden et al (2019)

Discussion forum activity 5.6

1. Differentiate between CPR and MPR and give an example of each.

2. Do research online and give an example of proactive and reactive MPR.

5.3.5 Publicity
(Study section 7.3.5 in the prescribed textbook.)

In this section of the prescribed textbook, we take a look at publicity. You need to be able to
define publicity and discuss the methods shown in figure 5.5 that a PR manager can use to
ensure that positive information is circulated about the organisation.

•Press releases
•Press conferences
•Exclusives
Publicity methods •Interviews
•Community involvement
•Leaked information
•Media launches

Figure 5.5 Publicity methods

Source: adapted from Van Heerden et al (2019)

Follow the link for a better understanding of what publicity is (for noting):
• Marketing – What is Publicity? – YouTube

75
Discussion forum activity 5.7

1. In your own words, define publicity, differentiate between corporate publicity and
marketing publicity and give an example of each.
2. Explain what methods you as the PR manager of Mzanzi Beverages can use to ensure
that positive information of the organisation is available.

5.4 MEASUREMENT OF PR OUTCOMES

(Study section 7.4 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to be able to
differentiate between three measurement forms, namely PR outcomes, outtakes and
outputs, and provide a practical example of each. You also need to be able to discuss the
specifics of PR objectives.

Smith (2017) explains that an output is what the PR manager produces; this can include
tweets, news releases, blog posts, etc. Kim (2019) mentions that outtakes involve the
measurement of the public’s reaction and responses to communication that is sent out, and
how the public understands the message. Of the three measurement forms, outcomes
are the most advanced as they involve measuring if and how goals and objectives have
been met and the behaviour changes that took place (Contentgroup 2018).

For example, in October 2021, a dog named Kei made news headlines for taking a bullet
while trying to protect her owners during a robbery. Dotsure, a South African pet insurance
company, decided to pay for Kei’s medical bill after learning about the incident. Output:
Dotsure paying R60 000 of Kei’s vet bill. Outtakes: how did the public respond to Dotusure
paying Kei’s medical expenses? Outcomes: did Dotsure reach their goals and objectives
and did this lead to a change in the public’s behaviour? Did more people sign up for a
Dotsure policy? Follow this link to read the full article (for noting):
• Pet insurer foots R60k medical bill for heroic dog that saved family from armed robbers
(timeslive.co.za)

Follow this link to see the Simba #RaiseYourVillage and SANBS project Bloodwing PR
campaign. Both these campaigns were category winners at the 2020 PRISMs awards:
• Help raise the village that raised you with educational prizes from Simba® (iol.co.za)

76
• SANBS showcases a life-saving drone on the Quantum-Systems Tron UAV platform
(Quantum Systems, 2019)

Try and identify the outputs, outtakes and outcomes for each of these campaigns. Also
research this year’s category winners.

Discussion forum activity 5.8

Mzanzi Beverages recently launched a new energy drink specifically targeting cyclists, and
on the same day you launched a road safety campaign aimed at creating awareness of
the unsafe environment in which cyclists at times need to train. You set out to create
awareness of road safety as well as generate interest in your product. Customers are
encouraged to scan the QR code on the energy drink can which opens up a page where
customers can sign a petition to increase road safety. The national downhill mountain bike
winner will unveil the energy drink and explain how important safety is during training and
racing, as the number of attacks on cyclists has increased significantly in the past few
years. You sent out a press release and one of the most renowned mountain biking
bloggers posted a blog on what to expect at the launch. You also posted several messages
and videos of the launch on social media, including Twitter, Facebook and Instagram.

1. Identify the goal, action, output metric, outtake metric and outcome metric based on
the case study.
2. Explain why it is important for Mzanzi Beverages to set measurable outcomes.

5.5 ETHICAL ISSUES

(Study section 7.5 in the prescribed textbook.)

In this section of the prescribed textbook, we look at a number of ethical issues in PR and
publicity. You need to be able to identify the theories of ethics in PR. What are some of the
ethical issues that PR practitioners have needed to deal with here in South Africa that you
are aware of? Do you think they dealt with the issues in the correct way?

77
5.5.1 Theories of ethics in PR
(Study section 7.5.1 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to be able to identify
the different theories of ethics in PR:
• Responsible advocacy theory: This theory focuses on the responsibilities that PR
managers have. It is based on the following three principles: the comparison of harms
and benefits, respect of persons, and distributive justice (Haque & Ahmad 2017).
• Enlightened self-interest: This ethical theory recognises that a company’s main
purpose is to make money, but a company can achieve this by fulfilling its social and
environmental duties (Chron 2021).
• Two-way communication: This theory focuses on the organisation engaging in
dialogue with the public and stakeholders in such a way that it benefits both the
organisation and public and stakeholders equally (Johnston 2020).
• Attorney/adversary: With this theory the PR manager’s role is similar to that of an
attorney backing their client (Parackal 2016).
• Both the Potter box model and Navran model outline the steps that a PR practitioner
should follow if faced with an ethical dilemma that needs to be resolved (Peck & Reel
2016).

5.5.2 Developing codes of ethics

(Study section 7.5.2 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to be able to discuss
the four issues organisations must consider when drafting a code of ethics. Follow this link
to see the code of ethics for Spar retail group:
• SPAR_Ethics_Booklet.pdf (thespargroup.com)

5.5.3 Some examples of ethical dilemmas

(Study section 7.5.3 in the prescribed textbook.)

78
In this section of the prescribed textbook, we look at a number of ethical dilemmas faced by
PR managers:
• Misleading information: Tahir (2019) mentions that a recent study revealed that fake
news was 70% more likely to be retweeted than true stories.
• Influence of management actions: For example, a PR firm convinces a company to
halt a product recall fearing irreparable damage to the organisation’s image.
• Promotion of inferior products: For example, a PR firm is contracted by a toy
company that sells toys which contain lead (which is toxic).
• Discrimination: In South Africa only 20,7% of board members on JSE-listed companies
are women, even though women make up 51% of the population (Accountancysa 2021).
• Destruction: The political situation in Brazil has seen a surge in deforestation in favour
of land to be used for crops (Branford & Torres 2018).
• Pay inequities: A recent report released by Stats SA indicates that women earn on
average 30% less than men in similar positions (Zwane 2020).
• Gain at the expense of others: In 2019 some of the biggest technological companies
in the world, i.e. Tesla, Apple, Microsoft, Dell and Google, were named in a lawsuit for
their role in the death of Congolese children mining for cobalt which is used in lithium
batteries (The Guardian 2019).
• Political influence: In South Africa, political parties often have their own spokesperson
and it is not unheard of for them to hire a PR agency to run a campaign during an election
(Media update 2021).
• Promotion of US products: Indonesia and the Philippines are home to some of the
largest smoking populations on the planet. Weak enforcement of legislation means that
tobacco companies can sell their tobacco at very low prices because it is not as heavily
taxed as in countries like the US (Seatca 2018).

5.6 SUMMARY

In this learning unit we discussed public relations and publicity. We first explained the role
of PR and publicity in the IMC programme and discussed public relations. We then
considered how PR outcomes are measured. Finally, we discussed the ethical issues in
public relations and publicity

5.7 ASSESSMENT QUESTIONS

Now that you have completed learning unit 5, complete the assessment questions to test
your knowledge on some of the concepts discussed.

79
QUESTION 1

Jennifer, the PR manager for a large retail group, received a call from the local radio station
wanting to do an editorial on the retail group’s stance on gender inequality in the workplace:
This is an example of …

1. stakeholder relations.
2. corporate publicity.
3. corporate public relations.
4. marketing publicity.

QUESTION 2

Alice works at a medical aid scheme. The company recently launched a new loyalty
programme. As a result of this campaign there was a 38% increase in web traffic on the
company site and 40% of members signed up for the loyalty programme within 3 weeks of
the launch. This result refers to the … metric.

1. goal
2. output
3. outcome
4. outtake

QUESTION 3

An outdoor lifestyle store runs a campaign challenging the proposed law changes on gun
ownership in South Africa. This is an example of …

1. cause-related advertising.
2. advocacy advertising.
3. sponsorships.
4. financial ads.

QUESTION 4

Thandi is working on her company’s issue management strategy. Which ONE of the
following statements can be regarded as an emerging issue?

1. the increased usage of smartphones in poorer communities

2. the effect of possible mandatory COVID-19 vaccinations
3. gender inequality in the workplace
4. the influencers affecting consumer behaviour

80
QUESTION 5

Fatima is the PR manager at a large banking group. Yesterday the news broke that there
was a security breach at the bank and close to a million clients’ personal information has
been compromised. What should Fatima do in response to this crisis?

1. Focus on only extinguishing the fire.

2. Build relationships in times of crisis.
3. React immediately with “no comment”.
4. Appoint a knowledgeable crisis communicator.

5.8 REFLECTION

Before you continue to the next learning unit, complete the following Likert scale. After
studying the prescribed textbook in conjunction with the study guide, rate your competency
in the topics covered in this learning unit:

Learning Novice Partial Average Above Expert

outcomes competence competence average
competence
Examine the 1 2 3 4 5
framework for
the inclusion
of PR and
publicity in the
IMC
programme
Identify and 1 2 3 4 5
discuss the
role of public
relations
Explain the 1 2 3 4 5
measurement
of PR
outcomes
Explain the 1 2 3 4 5
ethical issues
in public
relations and
publicity

81
If you rated yourself 3 or below for any of the learning outcomes, work through the relevant
sections in your prescribed textbook and study guide again. Post on the discussion forum
which learning outcomes you are struggling with.

BIBLIOGRAPHY

Accountancysa. 2021. Gender equality in the workplace.

https://www.accountancysa.org.za/gender-equality-in-the-workplace/ [Accessed 2
November 2021].
Armstrong, G, Adam, S, Denize, S & Kotler, P. 2014. Principles of marketing.
https://books.google.co.za/books?id=UKyaBQAAQBAJ&printsec=frontcover&dq=marketin
g&hl=en&sa=X&redir_esc=y#v=onepage&q=publicity%20&f=false [Accessed 22 April
2022].
Branford, S & Torres, M. 2018. Brazil’s political storm driving Amazon deforestation higher.
https://news.mongabay.com/2018/07/brazils-political-storm-driving-amazon-deforestation-
higher/ [Accessed 23 October 2021].
BusinessTech. 2021. Checkers is building something quite remarkable – and far bigger than its
competitors. https://businesstech.co.za/news/technology/518878/checkers-is-building-
something-quite-remarkable-and-far-bigger-than-its-competitors/ [Accessed 23 February
2022].
Chron. 2021. Examples of enlightened self-interest in business.
https://smallbusiness.chron.com/examples-enlightened-selfinterest-business-22880.html
[Accessed 29 October 2021].
Contentgroup. 2020. The three o’s that will make your campaigns and programs the best they
can be. https://contentgroup.com.au/2018/11/the-three-os-that-will-make-your-campaigns-
and-programs-the-best-they-can-be/ [Accessed 4 November 2021].
Glynn, CJ, Herbst, S, Lindeman, M, O’Kefee, GJ & Shapiro, RY. 2016. Public opinion.
https://books.google.co.za/books?id=SSZhDwAAQBAJ&printsec=frontcover&dq=public+o
pinion+definition+marketing+management&hl=en&sa=X&ved=2ahUKEwj6usbzmqf3AhXQ
TcAKHSQ1C0sQ6AF6BAgGEAI#v=onepage&q&f=false [Accessed 23 October 2021].
Govender, S. Pet insurer foots R60k medical bill for heroic dog that saved family from armed
robbers. https://www.timeslive.co.za/news/south-africa/2021-10-15-pet-insurer-foots-r60k-
medical-bill-for-heroic-dog-that-saved-family-from-armed-robbers/ [Accessed 4 November
2021].
Haque, M & Ahmad, J. 2017. Ethics in public relations and responsible advocacy theory.
Malaysian Journal of Communication, 33:147-157.
https://www.researchgate.net/publication/315835233_Ethics_in_Public_Relations_and_Re
sponsible_Advocacy_Theory [Accessed 27 October 2021].
Institute for Public Relations. 2007. Crisis management and communications.
https://instituteforpr.org/crisis-management-and-communications/ [Accessed 27 October
2021].

82
Johnston, J. 2020. Public relations: theory and practice.
https://books.google.co.za/books?id=dSfxDwAAQBAJ&pg=PT376&dq=The+two-
way+symmetrical+model+of+public+relations+as+described+in+Grunig%E2%80%99s+Ex
cellence+Theor&hl=af&sa=X&ved=2ahUKEwjp6_SHtv_zAhWCYsAKHQjCAGwQ6AF6BA
gEEAI#v=onepage&q=The%20two-
way%20symmetrical%20model%20of%20public%20relations%20as%20described%20in
%20Grunig%E2%80%99s%20Excellence%20Theor&f=false [Accessed 27 October 2021].
Johnston, K. [n.d.]. Ethical issues confronting public relations for practitioners.
https://smallbusiness.chron.com/ethical-issues-confronting-public-relations-practitioners-
71138.html [Accessed 27 October 2021].
Kim, C. 2019. Public relations: competencies and practice.
https://books.google.co.za/books?id=1ueIDwAAQBAJ&pg=PT131&dq=PR+outcomes,+out
takes+,+outputs+and&hl=af&sa=X&ved=2ahUKEwjyjODsoPzzAhWTgVwKHdGLBUEQ6A
F6BAgLEAI#v=onepage&q=PR%20outcomes%2C%20outtakes%20%2C%20outputs%20
and&f=false [Accessed 14 October 2021].
LibreTexts. 2020. How does public relations fit into the promotional mix?
https://biz.libretexts.org/Bookshelves/Business/Introductory_Business/Book%3A_Introducti
on_to_Business_(OpenStax)/12%3A_Distributing_and_Promoting_Products_and_Service
s/12.12%3A_Public_Relations_Helps_Build_Goodwill [Accessed 23 February 2022].
Lumen Learning. [n.d.]. Public relations. https://courses.lumenlearning.com/marketing-
spring2016/chapter/reading-public-relations/ [Accessed 23 February 2022].
Media Update. 2021. Public relations in the South African context.
https://www.mediaupdate.co.za/publicity/150171/public-relations-in-the-south-african-
context [Accessed 4 November 2021].
Parackal, J. 2016. PR as persons in relation: a personalistic approach to the study and
practice of public relations.
https://books.google.co.za/books?id=YCKfDQAAQBAJ&pg=PA96&lpg=PA96&dq=Attorne
y/adversary+PR+theory&source=bl&ots=ab1Bl5D6gQ&sig=ACfU3U3yj91i5F8P_rmHJi8JZ
av-f4rWsQ&hl=af&sa=X&ved=
2ahUKEwjApLOMuv_zAhWTmFwKHUkeBmgQ6AF6BAggEAM#v=onepage&q=Attorney%
2Fadversary%20PR%20theory&f=false [Accessed 2 November 2021].
Peck, L & Reel, GS. 2016. Media ethics at work: true stories from young professionals.
https://books.google.co.za/books?id=e2SsCwAAQBAJ&pg=PT98&lpg=PT98&dq=Navran+
Model&source=bl&ots=Mj7WFkOjlQ&sig=ACfU3U3-
Ql8fpVjEFC5urwc1G9UQBxWIPQ&hl=af&sa=X&ved=2ahUKEwi0oIC_iv3zAhUxg_0HHTM
rDSQQ6AF6BAgmEAM#v=onepage&q=Navran%20Model&f=false [Accessed 27 October
2021].
PRCA. 2021. PRCA announces expulsion of Bell Pottinger. https://prca.mena.global/prca-
announces-expulsion-bell-pottinger/ [Accessed 2 November 2021].
PRCA. 2022. About public relations. https://www.prca.org/about/all-about-pr [Accessed 23
June 2022].
Seatca. 2018. Tobacco companies making a fortune in Southeast Asia.
https://seatca.org/tobacco-companies-making-a-fortune-in-southeast-asia/ [Accessed 1
November 2021].

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Shoprite Holdings. 2022. Newsroom. https://www.shopriteholdings.co.za/newsroom.html
[Accessed 23 February 2022].
Simba. 2019. Help raise the village that raised you with educational prizes from Simba.
https://www.iol.co.za/lifestyle/family/parenting/help-raise-the-village-that-raised-you-with-
educational-prizes-from-simba-19493847 [Accessed 23 February 2022].
Smith, RD. 2017. Strategic planning for public relations. 5th ed.
https://books.google.co.za/books?id=9TgkDwAAQBAJ&pg=PT867&dq=PR+outcomes,+ou
ttakes+,+outputs+and&hl=af&sa=X&ved=2ahUKEwjyjODsoPzzAhWTgVwKHdGLBUEQ6A
F6BAgEEAI#v=onepage&q=PR%20outcomes%2C%20outtakes%20%2C%20outputs%20
and&f=false [Accessed 28 October 2021].
Spar. [n.d.]. Code of ethics. https://thespargroup.com/ir2017/pdf/SPAR_Ethics_Booklet.pdf
[Accessed 28 October 2021].
Tahir, O. 2019. Misinformation, fake news, and implications for the PR industry.
https://www.agilitypr.com/pr-news/public-relations/misinformation-fake-news-and-
implications-for-the-pr-industry/ [Accessed 3 November 2021].
The Guardian. 2019. Apple and Google named in US lawsuit over Congolese child cobalt
mining deaths. https://www.theguardian.com/global-development/2019/dec/16/apple-and-
google-named-in-us-lawsuit-over-congolese-child-cobalt-mining-deaths [Accessed 3
November 2021].
Quantum Systems. 2019. SANBS showcases a life-saving drone on the Quantum-Systems
Tron UAV platform. https://www.quantum-systems.com/2019/05/29/sanbs-showcases-a-
life-saving-drone-on-the-quantum-systems-tron-uav-platform/ [Accessed 3 November
2021].
United Nations. [n.d.]. The ten principles of the UN Global Compact.
https://www.unglobalcompact.org/what-is-gc/mission/principles [Accessed 3 November
2021]
Van Heerden, N, Mulder, D & Sephapo, CM. 2019. Integrated marketing communication. 4th
ed. Pretoria: Van Schaik.
Zwane, T. 2020. The gender pay gap keeps widening in South Africa.
https://www.news24.com/citypress/business/the-gender-pay-gap-keeps-widening-in-south-
africa-20200809 [Accessed 23 October 2021].

84
LEARNING UNIT 6
SPONSORSHIP

Overview of this learning unit

Learning outcomes
Key concepts
6.1 Introduction
6.2 Defining sponsorship
6.3 Categories of sponsorship
6.4 The management of a sponsorship
6.5 Ethics in sponsorship
6.6 Summary
6.7 Assessment questions
6.8 Reflection
Bibliography

OVERVIEW OF THIS LEARNING UNIT

In the previous learning unit, we discussed public relations and publicity and how to measure
the outcomes. In this learning unit we provide an overview of the importance of sponsorship.
We will begin our discussion by defining sponsorship and looking at the different categories
of sponsorship. Next, we will discuss the management of sponsorship and lastly, we will
consider some legal and ethical issues in sponsorship.

LEARNING OUTCOMES

After completing this learning unit, you should be able to

• define sponsorship
• distinguish between the different categories of sponsorship
• explore the management of a sponsorship
• discuss the ethics considerations in sponsorship
• apply the various concepts within the African context

85
KEY CONCEPTS

• Sponsorship
• Donations
• Merchandising
• Endorsements
• Event sponsorship
• Exclusive sponsorship
• Primary sponsorship

6.1 INTRODUCTION
(Study section 8.1 in the prescribed textbook.)

It is hard to imagine watching major sporting events with no company logos or branded
clothing. Without sponsorship, it would simply not be possible to host these events and
some companies are willing to pay substantial amounts to be associated with certain events.
According to Zacks (2018), companies pay between $25 million and $50 million
(approximately R360 million - R730 million) annually to be a FIFA partner.

6.2 DEFINING SPONSORSHIP

(Study section 8.2 in the prescribed textbook.)

Before we can begin our discussion on sponsorship, it is important that you know exactly
what is meant by the term sponsorship and to differentiate between sponsorship and
donations, merchandising and endorsements. Note that sponsorships are seen as a
business relationship, not just a public relations (PR) event.

According to Cornwell (2020), sponsorship is an exchange between the sponsor and a

person or event (sponsee), whereby the sponsor pays a fee for the right to be associated
with the sponsee. From the definition in the prescribed textbook, you can see that
sponsorship encompasses
• the provision of resources

86
• by an organisation to a
• sponsored property
• to pursue some activity
• in return for certain sponsorship rights.

Follow the link for a better understanding of sponsorship (for noting):

• Power of Sponsorship as part of Your Marketing Strategy - YouTube

Discussion forum activity 6.1

Explain the definition of sponsorship by providing practical examples.

6.2.1 Sponsorship and donations

(Study section 8.2.1 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to be able to
distinguish between sponsorships and donations by understanding the reason for the
organisation’s involvement. There are key differences between sponsorship and donations
as highlighted in the prescribed textbook. Look at Vodacom as an example:
• Sponsorship: Vodacom sponsors the Durban July, an annual horse racing event held
in Durban. Vodacom contractually provides financial and/or other support to the Durban
July event organisers in return for rights to use the Durban July brand and logo in
connection with the horse racing event (Durban July 2021).
• Donations: Vodacom also invests in the communities in which it operates through the
Vodacom Foundation, which provides funding for education, health, safety and security
as well as volunteering and donations. One of the projects includes a free online learning
platform, e-School, to Grade 4 to 12 learners, and bursaries to students entering the
fields of science and technology. To read more about the Vodacome Foundation, follow
the link (for noting): Vodacom Foundation | About us | Vodacom Group

87
Discussion forum activity 6.2

Read the following case study and explain to the management of Pizza Deluxe the difference
between sponsorship and donations.

Pizza Deluxe is a South African based pizza restaurant franchise that was founded in 2002.
The franchise has shown tremendous growth over the years and has over 300 restaurants
across South Africa. They want to expand their market and are looking to open more stores
in the rest of Africa. To help achieve this, they are considering sponsoring the national soccer
team, which will give them more exposure in neighbouring countries.

Note: Pizza Deluxe is a fictitious company.

6.2.2 Merchandising and endorsements

(Study section 8.2.2 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to be able to
distinguish between the concepts of merchandising and endorsements and give a practical
example of each. Look at different examples of these:

• Merchandising: The South African Football Association (SAFA) grants companies the
right to use their logo for either a percentage of the merchandise sold or a pre-agreed
fee; see figure 6.1 below:

Figure 6.1 SAFA logo used on football shirt during the 2010 FIFA World Cup
Source: SAFA (2020) and Brand South Africa (n.d.)

• Endorsements: Discovery has several Discovery Vitality ambassadors, including

Chad Le Clos (swimming), Makazole Mapimpi (rugby) and Lucas Radebe (soccer).

88
 These sports stars endorse Discovery’s Vitality programme and demonstrate Vitality’s
commitment to increase physical activity globally (Discovery 2021).

Discussion forum activity 6.3

Work through your prescribed material and conduct additional research online to explain, in
your own words, the concepts of merchandising and endorsements. Provide practical
examples of each.

6.2.3 Sponsorship is a business relationship

(Study section 8.2.3 in the prescribed textbook.)

After studying this section of the prescribed book, you need to be able to discuss the business
relationship between the sponsor and the sponsorship property. It is important to note that both
parties benefit from this relationship. You also need to understand why sponsorship has seen
an increase in spending.

The COVID-19 pandemic has brought new challenges to sport sponsorship within South Africa.
The Nielsen Sport SA’s first Sponsorship Outlook Report showed that there would be a
significant decrease in sport sponsorship in the short term until things returned to “normal”
(Schenck 2020). Follow this link to read what challenges leisure activities, sport, entertainment
and the live events space faced due to the ongoing pandemic and how sport sponsorship
needed to be reimagined and re-engaged in South Africa (for noting):
• Re-engaging and reimagining the SA sponsorship industry (bizcommunity.com)

Discussion forum activity 6.4

Explain to the management of Pizza Deluxe why sponsorship is considered a business

relationship.

89
6.3 CATEGORIES OF SPONSORSHIP
(Study section 8.3 in the prescribed textbook.)

After reading through this section of the prescribed book, you need to be able to dstinguish
between the four overlapping categories of sponsorship, namely event, exclusive and primary
sponsorship and cause-related marketing (figure 6.2 below). You should also be able to discuss
the advantages and disadvantages of sport sponsorship.

Overlapping categories of sponsorship

Cause-related
Event Exclusive Primary
marketing
Figure 6.2 Overlapping categories of sponsorship
Source: adapted from Van Heerden et al (2019)

Discussion forum activity 6.5

Work through your prescribed material and conduct some additional research online to
provide practical examples of the overlapping categories of sponsorship.

6.4 THE MANAGEMENT OF A SPONSORSHIP

(Study section 8.4 in the prescribed textbook.)

In South Africa many big corporations are involved in sport, for example Mr Price was the official
apparal sponsor of Team South Africa at the Olympic Games (Sport24 2021), Sanlam sponsors
the Cape Town Marathon (Sanlam 2022) and Discovery sponsors the Walter Sisulu soccer
challenge (Discovery 2022). For these companies it is important that sponsorship be seen as
an investment and that they receive a reasonable return on their investment. Sponsorship
should lead to an increase in sales, effective advertising and an enhanced perception of the
sponsor’s involvement. The sponsorship should also create an advantage for both the sport
organisations and the sponsor. After studying this section of the prescribed textbook, you need

90
to discuss the key decision to sponsor as well as the sport sponsorship decision-making
process.

6.4.1 The key decision to sponsor

(Study section 8.4.1 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to be able to explain
what key decisions must be taken when organisations want to enter into a sponsorship. A
company should ask a number of questions when considering buying into sport. Criteria are
usually weighed and prioritised to calculate the value for the company, ensuring a rational
sponsorship decision. It is also crucial that a company recognise possible warning signs that a
sponsorship could have a negative impact on a company. MTN SA signed a sponsorship deal
with the Springboks at a time that they were performing badly and struggling to attract big
sponsors. The gamble paid off and two years later the Springboks won the 2019 Rugby World
Cup (Dlamini 2019). Individuals or teams that are caught cheating or test positive for banned
substances, for example, can negatively influence the image of the sponsor and usually the
sponsor cuts ties with the individual or team after such an incident occurs.

Discussion forum activity 6.6

1. Explain how Pizza Deluxe can measure their sponsorship value.

2. How can Pizza Deluxe create a win-win strategy when they enter into a sponsorship
agreement?
3. What criteria should Pizza Deluxe use when considering buying into sport?
4. Explain to Pizza Deluxe why it is important to recognise negative sponsorship signs.

6.4.2 Sport sponsorship decision-making process

(Study section 8.4.2 in the prescribed textbook.)

After reading through this section of the prescribed book, you need to be able to discuss the
steps in the sport sponsorship decision-making process. A model of sport sponsorship decision
making is depicted in figure 8.1 of your prescribed textbook.

91
In 2020 Burger King decided to sponsor one of the lowest ranking soccer clubs in England, and
the sponsorship was so successful that it became the most played-with team on FIFA's career
mode, earning the team over 1.2 billion impressions online (Niton & Houseknecht 2020). The
objective of Burger King was to increase awareness of the brand but also help lower ranking
teams by sponsoring them, as these teams struggled to secure any sponsorship deals. This
showed that Burger King supported soccer at all levels and not just the winning team. Burger
King was able to tie in their sponsorship with other marketing communication elements and the
number of impressions online helped the company measure the effectiveness of their
campaign.

Follow this link for other successful sponsorship campaigns:

• Top 10 Sponsorship Campaigns of 2020 (thesponsorshipspace.com)

Now that you understand sponsorship discussed in this learning unit, answer self-
assessment activity 6.1 to apply what you have learnt.

Self-assessment activity 6.1

Discuss the three steps, according to your prescribed textbook, that Pizza Deluxe should
follow in the sponsorship decision-making process.

6.5 ETHICS IN SPONSORSHIP

(Study section 8.5 in the prescribed textbook.)

There are a number of ethcial considerations in sponsorship. This section of the prescribed
textbook deals with the rights of the sponsor as well as some legal considerations in
sponsorship, including trademark protection, personalities, licences and valuation.

6.5.1 Rights of the sponsor

(Study section 8.5.1 in the prescribed textbook.)

92
After reading through this section of the prescribed textbook, you need to be able to identify
and discuss the several rights that sponsors are entitled to and include practical examples.
Here are some examples of these rights:
• Company X signs a deal with a South African rugby franchise. This agreement should
enable company X to use the rugby franchise logo, name, trademark and graphic
representation; it gives company X the right to exclusive association with the rugby
franchise.
• Company X has a right of entitlement to a match being played at the rugby stadium. It
has the right to various designations and phrases connected with the rugby franchise
and the right of service.
• Company X also has the right to conduct promotional activities that could include some
of the rugby players.

6.5.2 Legal considerations in sponsorship

(Study section 8.5.2 in the prescribed textbook.)

After reading this section of the prescribed textbook, you need to be aware of the number
of legal aspects a company has to consider when entering into a sponsorship agreement,
including trademark protection, personalities, licences and valuation. Norton Rose Fullbright
(2018) mentions that a contractual issue arose at the 2012 Olympic Games where Adidas
was the main sponsor of Team Great Britain (GB), and required the British athletes to wear
an Adidas tracksuit and footwear on the podium. This prevented some individual athletes
from fulfilling their own personal endorsement contracts. The British Olympic Association
relied on the contractual rights that were exclusively granted to Adidas to resolve the
dispute. This example highlights the importance of organisations registering a trademark or
personalities entering into a sponsorship agreement before agreeing to represent a brand.
Licences, as you see from the example above, are crucial when contractual issues arise.

Discussion forum activity 6.7

1. Discuss the rights Pizza Deluxe should include in their sponsorship agreement.
2. Explain to Pizza Deluxe what steps they need to take from a legal perspective to ensure
that both they (the sponsor) and the national team (sponsee) are covered.

93
6.6 SUMMARY

In this learning unit we discussed sponsorship. We first explained what sponsorship is and
then discussed the different categories of sponsorship. We then discussed the management
of sponsorship. Finally, we considered legal and ethical issues organisations need to take
into account when using sponsorship.

6.7 ASSESSMENT QUESTIONS

Now that you have completed learning unit 6, complete the assessment questions to test
your knowledge on some of the concepts discussed.

QUESTION 1

You are the marketing manager for a clothing brand and your company just signed a deal
with a South African gold medallist to wear your clothing brand. This is known as …

1. sponsorship.
2. donations.
3. merchandising.
4. endorsements.

QUESTION 2

Simon works for an IT company that is considering sponsoring a soccer team, but not
everyone at the company is convinced this is a sound investment. Which one of the following
is an ADVANTAGE of sport sponsorship for his organisation?

1. Soccer teams can be overcommercialised.

2. Soccer teams often have multiple sponsors which can become cluttered.
3. Soccer is an international game and loved by fans across South Africa, who come from
different demographic and psychographic backgrounds.
4. The IT company can end up sponsoring a team or individual that does not perform
according to expectations.

QUESTION 3

A big retail organisation is in the process of sponsoring a local soccer team. They want to
integrate communication to promote the overall awareness of the organisation among
specific target audiences. Which IMC element does this refer to?

1. corporate public relations

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2. advertising
3. personal selling
4. direct marketing

QUESTION 4

An insurance company is finalising its sponsorship of a local swimmer set to compete at the
Olympics, but the swimmer is also considering registering his own trademark. This scenario
refers to the … step in the legal considerations in sponsorship.

1. valuation
2. trademark protection
3. personalities
4. licences

QUESTION 5

Capital, a banking group, has been associated with the Capital marathon for over 10 years.
This is known as …

1. primary sponsorship.
2. event sponsorship.
3. exclusive sponsorship.
4. endorsement sponsorship.

6.8 REFLECTION

Before you continue to the next learning unit, complete the following Likert scale. After
studying the prescribed textbook in conjunction with the study guide, rate your competency
in the topics covered in this learning unit:

Learning Novice Partial Average Above Expert

outcomes competence competence average
competence
Define 1 2 3 4 5
sponsorship
Distinguish 1 2 3 4 5
between the
different
categories of
sponsorship

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 Explore the 1 2 3 4 5
management of
a sponsorship

Discuss the 1 2 3 4 5
ethics
considerations
in sponsorship
Apply the 1 2 3 4 5
various
concepts within
the African
context

If you rated yourself 3 or below for any of the learning outcomes, work through the relevant
sections in your prescribed textbook and study guide again. Post on the discussion forum
which learning outcomes you are struggling with

BIBLIOGRAPHY

Aljazeera. 2021. In numbers: a look back at key figures from the Tokyo Olympics.
https://www.aljazeera.com/sports/2021/8/9/tokyo-olympics-in-numbers [Accessed 4
October 2021].
Becker, L. 2016. Sponsors at the Olympics: the multi-billion dollar business of the IOC.
https://www.ispo.com/en/markets/id_78544462/2-billion-what-the-sponsors-are-paying-at-
the-olympics.html [Accessed 13 July 2021].
Brand South Africa. 2016. SA gears up for 2010 with Adidas.
https://www.brandsouthafrica.com/people-culture/sport/sport-health/sa-gears-up-for-
2010-with-adidas [Accessed 8 July 2021].
Cape-epic. 2021. Title sponsor. https://www.cape-epic.com/involve/sponsors--partners/title-
sponsor [Accessed 2 July 2021].
Carp, S. 2020. Study: Europe’s ‘big five’ leagues rake in €3.3bn sponsorship revenue in 2020.
https://www.sportspromedia.com/news/european-football-shirt-sponsorship-revenue-
premier-league-la-liga/ [Accessed 5 October 2021].
CIPC. 2022. Trade marks. http://www.cipc.co.za/index.php/trade-marks-patents-designs-
copyright/trade-marks/ [Accessed 10 January 2022].
Comrades. 2021. Comrades partners. https://www.comrades.com/comrades-partners/
[Accessed 9 July 2021].
Cornwell, B. 2020. Sponsorship in marketing: effective partnerships in sports, arts and events.
https://books.google.co.za/books?id=hxPWDwAAQBAJ&pg=PT24&dq=definition+sponso
rship&hl=af&sa=X&ved=2ahUKEwjrkMuxse7xAhUE2uAKHYvXDq4Q6AEwAnoECAYQA
g#v=onepage&q=definition%20sponsorship&f=false [Accessed 9 July 2021].

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Discovery. 2021. Supporting a healthier South Africa.
https://www.discovery.co.za/corporate/sponsorships [Accessed 2 July 2021].
Discovery. 2022. Discovery and the Walter Sisulu family sponsors soccer.
https://www.discovery.co.za/corporate/walter-sisulu-soccer-
challenge?lmsc=&lmss=&lmsm=&gclid=CjwKCAiArOqOBhBmEiwAsgeLmQKN_11Vecou
meF_jhXmH3t5XfmrbdzuIHiOPUjRFL3PSjZx0ggloRoCKNgQAvD_BwE [Accessed 9 July
2021].
Dlamini, P. 2019. MTN holds on to Springbok sponsorship ... but not just because of the World
Cup. https://www.news24.com/citypress/news/mtn-holds-on-to-springbok-sponsorship-
but-not-just-because-of-the-world-cup-20191108 [Accessed 3 July 2021].
Dstvguide. 2021. Dstv launched new SuperSport channels - check new sports channels &
programs. https://dstvguide.com/new-supersport-channels-dstv/ [Accessed 18 July 2021].
Durban July. 2021. Sponsors. https://vodacomdurbanjuly.co.za/sponsors/ [Accessed 5 July
2021].
Kaizer Chiefs. 2021. Sponsors - partners. https://www.kaizerchiefs.com/sponsors-
partners/nike/ [Accessed 6 July 2021].
Kick Off Lifestyle. 2020. Khune shows off latest Nike offering.
https://www.kickoff.com/lifestyle/categories/the-locker-room/itumeleng-khune-and-andile-
jali-amongst-psl-stars-with-new-nike-flight-ball/683792?next=true [Accessed 20 July
2021].
Kokemuller, N. Forms of clutter in marketing communication.
https://smallbusiness.chron.com/forms-clutter-marketing-communication-69262.html
[Accessed 20 July 2021].
Maggs, J. 2021. Sports sponsorship: new sprint for Africa.
https://www.businesslive.co.za/redzone/news-insights/2021-03-25-sports-sponsorship-
new-sprint-for-africa/ [Accessed 10 July 2021].
Mahon, SM. 2017. Thrilled to join UN Global Compact, EUROCITY commits to support the 10
principles on #Humanrights #Labour #Environment & #anticorruption.
https://twitter.com/smacman/status/818862541032062978 [Accessed 10 January 2022].
McCarthy, J. 2018. Why brands will spend £500k a spot during England's historic World Cup
semi on ITV. https://www.thedrum.com/news/2018/07/10/why-brands-will-spend-500k-
spot-during-englands-historic-world-cup-semi-itv [Accessed 2 July 2021].
Mugeni, 2021. Re-engaging and reimagining the SA sponsorship industry.
https://www.bizcommunity.com/Article/196/48/212068.html [Accessed 8 January 2022].
Nielsen South Africa. 2018. Nielsen: SA spend on advertising and sponsorships totals R45-
billion. https://www.screenafrica.com/2018/06/08/marketing/marketing-business/nielsen-
sa-spend-on-advertising-and-sponsorships-totals-r45-billion/ [Accessed 8 January 2021].
Niton, L & Houseknecht, K. 2020. Top 10 sponsorship campaigns of 2020.
https://www.thesponsorshipspace.com/post/top-10-sponsorship-campaigns-of-2020
[Accessed 2 July 2021].
Norton Rose Fullbright. 2018. Intellectual property: personal brand and sponsorship
agreements. https://www.nortonrosefulbright.com/en-
af/knowledge/publications/5aa1b389/intellectual-property-personal-brand-and-
sponsorship-arrangements [Accessed 6 September 2021].

97
Procter & Gamble. 2021. Pampers vaccination program.
https://www.pg.com/en_US/sustainability/social_responsibility/health_hygiene/pampers_u
nicef.shtml [Accessed 9 July 2021].
Richter, F. 2021. Super Bowl pales in comparison to the biggest game in soccer.
https://www.statista.com/chart/16875/super-bowl-viewership-vs-world-cup-final/
[Accessed 9 July 2021].
SAFA. 2020. Teams and competitions. https://www.safa.net/#5 [Accessed 5 July 2021].
Sani2c. 2021. Who is KAP. https://sani2c.co.za/partners/kap [Accessed 9 July 2021].
Sanlam. 2022. Sanlam Cape Town Marathon.
https://www.sanlam.co.za/sponsorships/sport/Pages/sanlam-cape-town-
marathon.aspx?gclid=CjwKCAiArOqOBhBmEiwAsgeLmWSOncPYqMn4hmVl7DvK5Nk-
qcJbrZYUvtnEYLhYTuxhLuFWwcVhShoC2Z8QAvD_BwE&gclsrc=aw.ds [Accessed 10
January 2022].
Schenk, H. 2020. Gloomy picture painted for the future of SA sport sponsorships.
https://www.news24.com/sport/othersport/south-africa/gloomy-picture-painted-for-the-
future-of-sa-sport-sponsorships-20201110 [Accessed 5 October 2021].
Social Samosa. 2019. All you need to know about ICC Cricket World Cup 2019 official brand
associations. https://www.socialsamosa.com/2019/06/icc-cricket-world-cup-2019-
sponsors-commerical-partners/ [Accessed 9 July 2021].
SPAR. 2020. SPAR South Africa launches nationwide campaign against gender-based
violence. https://spar-international.com/news/spar-south-africa-supports-the-fight-against-
gender-based-violence/ [Accessed 18 July 2021].
Sport24. 2021. Mr Price Sport to dress Team SA for Tokyo Olympics and Paralympics.
https://www.news24.com/sport/othersport/olympics2020/mr-price-sport-to-dress-team-sa-
for-tokyo-olympics-and-paralympics-20210304 [Accessed 9 July 2021].
Statista. [n.d.]. Olympic Games: TV viewership worldwide 2002-2016.
https://www.statista.com/statistics/287966/olympic-games-tv-viewership-worldwide/
[Accessed 9 July 2021].
Tour de France. Partners. https://www.letour.fr/en/partners [Accessed 6 July 2021].
United Nations. [n.d.]. The 17 goals. https://sdgs.un.org/goals [Accessed 9 January 2022].
United Nations. [n.d.]. The ten principles of the UN Global Compact.
https://www.unglobalcompact.org/what-is-gc/mission/principles [Accessed 10 January
2022].
Van Heerden, N, Mulder, D & Sephapo, CM. 2019. Integrated marketing communication. 4th
ed. Pretoria: Van Schaik.
Vodacom Foundation. 2021. Mobile education
programme.https://vodacomfoundationsa.co.za/about-education-programe/ [Accessed 13
July 2021].
Wimbeldon. 2021. TV coverage and schedules.
https://www.wimbledon.com/en_GB/atoz/tv_schedules.html [Accessed 6 July 2021].
Zacks. 2018. Here's How FIFA's World Cup sponsors have performed on the stock market.
https://www.nasdaq.com/articles/heres-how-fifas-world-cup-sponsors-have-performed-
stock-market-2018-06-07 [Accessed 20 July 2021].

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LEARNING UNIT 7
DIRECT MARKETING

Overview of this learning unit

Learning outcomes
Key concepts
7.1 Introduction
7.2 The role of direct marketing in the IMC process
7.3 Direct marketing in perspective
7.4 Direct marketing elements
7.5 Direct marketing media
7.6 Ethical considerations
7.7 Permission-based marketing
7.8 Summary
7.9 Assessment questions
7.10 Reflection
Bibliography

OVERVIEW OF THIS LEARNING UNIT

In the previous learning unit, we discussed sponsorship. In this learning unit we provide an
overview of direct marketing. We will begin our discussion with the role of direct marketing
in the IMC process and look at direct marketing in perspective. Next, we will discuss direct
marketing elements and media, and we will also identify some ethical issues in direct
marketing. Lastly, we will consider permission-based marketing.

LEARNING OUTCOMES

After completing this learning unit, you should be able to

• interpret the role of direct marketing in the IMC process
• discuss direct marketing in perspective
• differentiate between direct marketing elements
• identify and discuss each of the different direct marketing media
• discuss the ethical issues in direct marketing
• discuss permission-based marketing
• apply the various concepts within the African context

99
KEY CONCEPTS

• Direct marketing
• Integrated marketing communication (IMC)
• Direct mail
• Telemarketing
• Direct response print media
• Direct response broadcast media
• Interactive media
• Permission-based marketing

7.1 INTRODUCTION
(Study section 9.1 in the prescribed textbook.)

As technology progresses, customers are increasingly being swamped with marketing

messages. For this reason, companies need to ensure that their messages reach the
intended target market. Marketers are under pressure to not only reach customers at the
right time and on the right channel, but also to provide personalised content (Salesforce
2021). Direct marketing offers companies the opportunity to create messages which are
based on the customers’ known interests to target the customer directly (Blakeman 2018).
As opposed to advertising and sales promotion, direct marketing offers the organisation an
opportunity to communicate directly with the customer.

7.2 THE ROLE OF DIRECT MARKETING IN THE IMC PROCESS

(Study section 9.2 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to be able to identify
some of the advantages of direct marketing in relation to other marketing elements in the
IMC mix, as well as discuss the two primary objectives of direct marketing.

In South Africa there has been a significant increase in the use of smartphones and the
number of people accessing the internet through mobile devices. The Independent

100
Communications Authority of SA (ICASA) reported that at the end of 2019 there were 53,4
million smartphone subscriptions (Mzekandaba 2020). In 2021, 36,45 million South Africans
accessed the internet through mobile devices, and this number is projected to reach 43
million by 2026 (Statista 2021). This means that companies can now reach more customers
through two-way communication than ever before.

Discussion forum activity 7.1

Furry Friends is an online pet store that offers a range of pet accessories and pet food.
Furry Friends was established in 2015 and with so many years of experience, they are now
a well-known brand. Their marketing efforts have, up until now, focused mainly on
advertising in newspapers and airing short television advertisements. However, they have
realised that these messages do not necessarily reach their intended target market and
they are looking to interact with customers in a more personalised way.

Note: Furry Friends is a fictitious company.

1. Discuss some of the advantages of direct marketing to encourage Furry Friends to use
this element over other marketing communication mix elements.
2. Describe the two main objectives of direct marketing and explain how this will fit in with
Furry Friends’ marketing objectives.

7.3 DIRECT MARKETING IN PERSPECTIVE

(Study section 9.3 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you should be able to explain
what direct marketing is and you need to be able to identify the characteristics of direct
marketing. These will now be highlighted in the subsequent sections.

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7.3.1 Direct marketing defined
(Study section 9.3.1 in the prescribed textbook.)

Mathur and Arora (2020) explain that direct marketing is an interactive marketing system
than can be done from any location using various marketing tools, including email, and
results can be measured. From the definition in the prescribed textbook, you can see that
direct marketing
• is a process of building and collecting customer data and insights
• uses data to develop marketing messages
• aims to provoke an action or response
• builds profitable relationships with customers

Let’s apply the definition to an online clothing store:

• Process of building and collecting customer data and insights: The clothing store can
request customers to first register before making a purchase. Through this process, the
clothing store is able to collect information, for example Thandi lives in Johannesburg,
Gauteng, she is married and she has a good credit score. Thandi searched for floral
dresses when she visited the site for the first time.
• Uses data to develop marketing messages: The clothing store is then able to send
personalised SMSs or emails to Thandi providing links to other floral dresses she might
have missed or accessories that will go well with floral dresses.
• Aims to provoke an action or response: The marketer can alert Thandi if these floral
dresses go on sale.
• Builds profitable relationships with customers: By sending personalised messages to
Thandi, the clothing store can build a relationship with Thandi which could lead to an
increase in sales.

Follow the links for a better understanding of what direct marketing is (for noting):
• What is Direct Marketing - YouTube
• 11.4 Advertising and Direct Marketing – Principles of Marketing (umn.edu)

7.3.2 Characteristics of direct marketing

(Study section 9.3.2 in the prescribed textbook.)

102
In this section of the prescribed textbook, four characteristics of direct marketing are
highlighted, shown in figure 7.1 below. You need to be able to identify and discuss these
characteristics.

Characteristics of direct marketing

Call for immediate Measurabiity of

Precise targeting Invisible strategies
action results
Figure 7.1 Characteristics of direct marketing
Source: adapted from Van Heerden et al (2019)

Discussion forum activity 7.2

1. Formulate your own definition of direct marketing by conducting research online.

2. In your own words, describe the characteristics of direct marketing by providing
practical examples.

7.4 DIRECT MARKETING ELEMENTS

(Study section 9.4 in the prescribed textbook.)

After reading this section of the prescribed textbook, you need to be able to differentiate
between each of the elements used in a successful direct marketing campaign. These are
summarised in figure 7.2 below.

Direct marketing elements

Lists and Creative

Offer planning Testing Fulfilment
databases exectuion

Figure 7.2 Characteristics of direct marketing

Source: adapted from Van Heerden et al (2019)

103
7.4.1 Lists and databases
(Study section 9.4.1 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to be able to
distinguish between lists and databases. According to O'Guinn, Allen, Scheinbaum and
Semenik (2019), mailing or email lists consist of names and addresses of prospective or
prior customers. There are two broad categories of lists: internal and external lists. You
need to be able to give examples of each category. A customised marketing database
provides marketers with additional customer information such as product preferences,
characteristics as well as past purchases (O'Guinn et al 2019).

Discussion forum activity 7.3

In your own words, differentiate between lists and databases and provide practical
examples.

7.4.2 Offer planning

(Study section 9.4.2 in the prescribed textbook.)

In this section of the prescribed textbook, we consider the actual offer or reason why a
customer should make a purchase. You should be able to identify and describe the areas
of offer planning illustrated in figure 7.3. Follow the link to see examples of direct mails (for
noting):
• 8 of the Best Direct Mail Examples | Spectrum Marketing Companies

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 Presentation of
product

Ease of response

Offer planning Credibility

Payment options

Guarantees and
incentives
Figure 7.3 Areas of offer planning
Source: adapted from Van Heerden et al (2019)

Discussion forum activity 7.4

Discuss the areas Furry Friends pet store must consider when planning an offer.

7.4.3 Creative execution

(Study section 9.4.3 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to be able to
describe the five activities in creative execution, shown in figure 7.4 below. Follow this link
to see an example of creative execution in an email sent to customers registered on the
Yuppiechef site (for noting): Yuppiechef newsletter

105
 Define the problem

Develop the idea or

key selling point

Develop the
Creative execution
message

Indicate the desired

action

Include any legal

requirement
Figure 7.4 Areas of offer planning
Source: adapted from Van Heerden et al (2019)

Discussion forum activity 7.5

Furry Friends pet store decided to run a direct marketing campaign as they noticed a
decrease in sales since the start of the pandemic. The direct marketing campaign is aimed
at offering customers R150 off if they purchase items of R1 000 or more and they have
opted in to receive information from Furry Friends. This direct marketing campaign will use
interactive media, including email and mobile marketing.

Discuss the activities that Furry Friends needs to carry out when developing their creative
strategy.

7.4.4 Testing
(Study section 9.4.4 in the prescribed textbook.)

Smith and Zook (2020) mention that one of the advantages of direct marketing is testing.
Organisations have the opportunity of testing, retesting, changing, monitoring and, in the
process, learning what works best. Gunderson (2020) states that if organisations do not
test their direct marketing campaigns, they run the risk of making the same mistakes over
and over again, which could lower their return on investment. After reading through this

106
section of the prescribed textbook, you need to be able to describe the two general testing
methods and differentiate between the types of tests to stay on top of consumer
preferences and development. These are illustated in figure 7.5 below.

A/B split tests

General testing

Multivariate tests

Media tests
Testing

Market tests

Consumer preference
and development Product tests
testing

Offering tests

Creative tests

Figure 7.5 Different types of tests

Source: adapted from Van Heerden et al (2019)

Follow the links for a better understanding of the different tests (for noting):
• What is A/B Testing? | Data Science in Minutes - YouTube
• What is Multivariate Testing? | Data Science in Minutes - YouTube

Discussion forum activity 7.6

You are the marketing manager of Furry Friends pet store and you want to test the direct
marketing campaign to ensure that the campaign works. This direct marketing campaign
is aimed at creating awareness of the launch of the Furry Friends Vet’s Corner, where
registered customers have access to a vet and can ask the vet common pet health related

107
 advice once a week. The rest of the Furry Friends team is a bit unsure of what testing
entails.

Give a brief explanation of the two general methods of testing and discuss the different
types of tests to stay on top of consumer preferences and developments that can be done.

7.4.5 Fulfilment
(Study section 9.4.5 in the prescribed textbook.)

In this section of the prescribed textbook, we look at the last element of direct marketing:
fulfilment of an order. You need to be able to discuss the steps in the fulfilment process as
shown in figure 7.6 and provide practical examples.

Order Order Inventory

Order reciept
approval processing control

Customer
Invoicing Warehousing Control
service

Figure 7.6 Steps in the fullfilment process

Source: adapted from Van Heerden et al (2019)

Discussion forum activity 7.7

Conduct research online and discuss which steps a South African company needs to follow
in the fulfilment process.

7.5 DIRECT MARKETING MEDIA

(Study section 9.5 in the prescribed textbook.)

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Wilson, Zeithaml, Bitner and Gremler (2021) mention that direct marketing uses media such
as mail, telephone, email and text messages sent to a customer with the aim of eliciting a
response. Email as a direct marketing media has seen significant growth, but organisations
can expect the response rates to be low if customers have not opted in to receive the
communication. After reading through this section of the prescribed textbook, you need to
be able to identify and discuss each of the different direct marketing media illustrated in
figure 7.7.

Direct mail
Inbound
Telemarketing
Outbound

Magazines
Direct response
print media
Newspapers

Direct marketing
Radio
media
Direct reponse
broadcast Television
media

Infomercials

Online
marketing tools

Email
Interactive
media
Cellphones

Social networks

Figure 7.7 Direct marketing media

Source: adapted from Van Heerden et al (2019)

109
 Self-assessment activity 7.1

1. Furry Friends pet store needs to decide whether they should use direct mail or
telemarketing to promote their new pet clothing line. Explain the advantages and
disadvantages of using direct mail and telemarketing.
2. Identify the different direct mail elements and give examples.
3. Do some research online and describe how companies differentiate between inbound
and outbound telemarketing.
4. Explain how Furry Friends can incorporate direct print and direct broadcast into their
marketing campaign.
5. Discuss the possibilities online marketing offers Furry Friends.
6. Explain and give practical examples of how companies use email, cellphones and
social networks to communicate directly with customers.

7.6 ETHICAL CONSIDERATIONS

(Study section 9.6 in the prescribed textbook.)

After reading through this section of the prescribed textbook, you need to be able to discuss
the unethical practices that give direct marketing a bad name. You also need to be able to
explain the role of the Direct Marketing Association of South Africa (DMASA) and the POPI
Act to curb unethical behaviour. Follow these links to see how direct marketing in South
Africa is set to change under the new POPI Act (for noting):
• South Africa’s new personal information laws are here – this is what they mean for
annoying marketing calls (businesstech.co.za)

Follow this link for some guidance on POPI Act compliance (for noting):
• POPIA Frequently Asked Questions | DMASA

Discussion forum activity 7.8

Conduct research online and provide an example of how a company has updated their
privacy policy to comply with the POPI Act.

110
7.7 PERMISSION-BASED MARKETING
(Study section 9.7 in the prescribed textbook.)

In this section of the prescribed textbook, we take a look at permission-based marketing.

After reading through this section, you need to be able to identify and discuss the three
essential principles of permission-based marketing and the steps in permission-based
marketing, illustrated in figure 7.8 below. You also need to be able to explain the concept of
request marketing and opt-in marketing and give a practical example.

Reinforcement Escalating the Changing

Incentives Customisation of the level of consumer
incentive permission behaviour

Figure 7.8 Permission-based marketing steps

Source: adapted from Van Heerden et al (2019)

According to Wirtz and Lovelock (2021), the rise of permission-based marketing has allowed
customers the choice if they want to learn more about a company and its products. This
enables companies to build stronger relationships with customers as these customers have
expressed a prior interest in receiving information and therefore will not find the messages
annoying. The POPI Act plays a crucial role in permission-based marketing, as it is more
important than ever to get the consumer’s permission.

Follow the link for a better understanding of what permission marketing is:
• Introduction to Seth Godin's idea of Permission Marketing - YouTube

Discussion forum activity 7.9

You are the marketing manager of Furry Friends and you have been contacted to present
a guest lecture on permission-based marketing at the University.

1. Discuss the three essential principles of permission-based marketing and give practical
examples of how these are applied at Furry Friends.

111
 2. Provide practical examples for Furry Friends of the five steps in permission-based
marketing.
3. Differentiate between request marketing and opt-in marketing and give practical
examples.

7.8 SUMMARY

In this learning unit we discussed direct marketing. We first explained the role of direct
marketing in the IMC process and placed direct marketing into perspective. We then
discussed direct marketing elements and media. Finally, we considered the ethical issues
in direct marketing and discussed permission-based marketing.

7.9 ASSESSMENT QUESTIONS

Now that you have completed learning unit 7, complete the assessment questions to test
your knowledge on some of the concepts discussed.

QUESTION 1

Lethabo works at an online cosmetics store. He has sent out a personal email to a customer
that recently visited the site and browsed for mascara. In the email Lethabo included a
catalogue with all the available mascara. Which step in permission-based marketing did
Lethabo take?

1. incentives
2. customisation
3. reinforcement of the incentive
4. changing consumer behaviour

QUESTION 2

Feroza, who owns a clothing store, recently launched an online marketing campaign
sending customised messages to her customers. Which direct marketing media is Feroza
using?

1. direct mail
2. telemarketing
3. direct response print media
4. interactive media

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QUESTION 3

An online shoe store receives an order and the information is computerised. This scenario
refers to which step in the fulfilment process?

1. order receipt
2. order approval
3. order processing
4. order invoicing

QUESTION 4

Sparkle, a company selling toothpaste, does an A/B split test by offering one group of
customers a 100 ml tube of toothpaste and the other group a 125 ml tube. Which type of
test does this refer to?

1. media test
2. creative tests
3. offering test
4. product test

QUESTION 5

Siyabonga is the marketing manager at an insurance firm. He needs to decide whether to

use direct mail or telemarketing when launching their new life insurance policy. At a meeting
someone suggests Siyabonga use direct mail as this is …

1. very interactive.
2. less visible to competitors.
3. more flexible.
4. allows for high-quality information to be gathered.

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7.10 REFLECTION
Before you continue to the next learning unit, complete the following Likert scale. After
studying the prescribed textbook in conjunction with the study guide, rate your competency
in the topics covered in this learning unit:

Learning Novice Partial Average Above Expert

outcomes competence competence average
competence
Interpret the 1 2 3 4 5
role of direct
marketing in
the IMC
process
Discuss direct 1 2 3 4 5
marketing in
perspective
Differentiate 1 2 3 4 5
between
direct
marketing
elements
Identify and 1 2 3 4 5
discuss each
of the
different direct
marketing
media
Discuss the 1 2 3 4 5
ethical issues
in direct
marketing
Discuss 1 2 3 4 5
permission-
based
marketing
Apply the 1 2 3 4 5
various
concepts
within the
African
context

114
If you rated yourself 3 or below for any of the learning outcomes, work through the relevant
sections in your prescribed textbook and study guide again. Post on the discussion forum
which learning outcomes you are struggling with

BIBLIOGRAPHY

Blakeman, R. 2018. Integrated marketing communication: creative strategy from idea to

implementation. https://books.google.co.za/books?id=m-1DDwAAQBAJ&pg=PA247&dq=
direct+marketing&hl=af&sa=X&ved=2ahUKEwjXpP6ElcnzAhUsQUEAHac-
DToQ6AF6BAgLEAI#v=onepage&q=direct%20marketing&f=false [Accessed 14 October
2021].
BusinessTech. 2020. South Africa’s new personal information laws are here – this is what they
mean for annoying marketing calls. https://businesstech.co.za/news/mobile/412937/south-
africas-new-personal-information-laws-are-here-this-is-what-they-mean-for-annoying-
marketing-calls/ [Accessed 5 April 2022].
Cox, LK. [n.d.]. 26 examples of brilliant email marketing campaigns.
https://blog.hubspot.com/marketing/email-marketing-examples-list [Accessed 5 April 2022].
Dicey, L. 2021. The POPI Act and its impact on marketing a small business.
https://www.businesslive.co.za/redzone/news-insights/2021-05-26-the-popi-act-and-its-
impact-on-marketing-a-small-business/ [Accessed 5 April 2022].
DMASA. [n.d.]. POPIA Frequently Asked Questions. https://dmasa.org/page/popia-frequently-
asked-questions [Accessed 5 April 2022].
Frescodata. [n.d.]. South Africa mailing lists and email lists.
https://www.frescodata.com/mailing-lists-and-email-lists-by-countries/south-africa/
[Accessed 21 October 2021].
Gunderson, M. 2020. Why your direct mail campaign needs A/B testing.
https://tensionenvelope.com/blogs/why-your-direct-mail-campaign-needs-ab-testing
[Accessed 22 October 2021].
Khandelwal, A. 2022. A/B testing solutions to maximize your website conversions.
https://vwo.com/blog/ab-testing-examples/ [Accessed 5 April 2022].
LibreTexts. 2020. Direct marketing.
https://biz.libretexts.org/Bookshelves/Marketing/Book%3A_Principles_of_Marketing/11%3
A_Integrated_Marketing_Communications_and_the_Changing_Media_Landscape/11.4%3
A_Advertising_and_Direct_Marketing [Accessed 4 April 2022].
Ludwig Roses. 2021. Talking roses newsletter.
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Lumen Learning. [n.d.]. Direct marketing. https://courses.lumenlearning.com/marketing-
spring2016/chapter/reading-direct-marketing/ [Accessed 4 April 2021].
Makro. [n.d.]. Trojan TR1200 treadmill. https://www.makro.co.za/sports-outdoor-
travel/exercise-fitness/exercise-equipment/treadmills/trojan-tr1200-treadmill-
/p/000000000000377951_EA?utm_source=SAPHybris&utm_medium=email&utm_campai
gn=P34_Buyers_Choice2&utm_term=P24_2021.08.1 [Accessed 5 April 2022].

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Makro. 2021. Frequently asked questions. https://www.makro.co.za/customer-
service/faq/ordersPage [Accessed 23 October 2021].
Mathur, V & Arora, S. Digital marketing. https://books.google.co.za/books?id=
33QDEAAAQBAJ&pg=PA133&dq=direct+marketing&hl=af&sa=X&ved=
2ahUKEwio4a2uMzzAhVLQUEAHRuLAIUQ6AF6BAgIEAI#v=onepage&q=direct%20mark
eting&f=false [Accessed 15 October 2021].
Microsoft. [n.d.]. Create a contact group or distribution list in Outlook for PC.
https://support.microsoft.com/en-us/office/create-a-contact-group-or-distribution-list-in-
outlook-for-pc-88ff6c60-0a1d-4b54-8c9d-9e1a71bc3023 [Accessed 5 April 2022].
Mzekandaba, S. 2020. SA’s smartphone penetration surpasses 90%.
https://www.itweb.co.za/content/xA9PO7NZRad7o4J8 [Accessed 15 October 2021].
O’Guinn, T, Allen, C, Semenik, RJ & Scheinbaum, AC. 2019. Advertising and integrated brand
promotion. 8th ed. Andover: Cengage Learning.
Outsurance. 2021. About. https://www.outsurance.co.za/about-outsurance/contact-
outsurance/ [Accessed 26 October 2021].
Pinterest. [n.d.]. Direct mail design. https://za.pinterest.com/search/pins/?q=Direct%
20mail%20design&rs=srs&b_id=BCzfpOFWIziEAAAAAAAAAABYrxEonKLk2VS18HkRJgJ
iiSufn-w3Eb2p81HJwme6J7fA7N3I_sLlJoArZkV2m_c&source_id=ZUOE8cnB [Accessed 5
April 2022].
Principles of Marketing. 2010. Advertising and direct marketing.
https://open.lib.umn.edu/principlesmarketing/chapter/11-4-advertising-and-direct-
marketing/ [Accessed 26 October 2021].
RIS. 2018. How Sportsmans Warehouse saves e-commerce sale. https://risnews.com/how-
sportsmans-warehouse-saves-e-commerce-sale [Accessed 26 October 2021].
Salesforce. 2021. South Africa’s top marketing trends – and how to make them work for you.
https://www.cnbcafrica.com/2021/south-africas-top-marketing-trends-and-how-to-make-
them-work-for-you/ [Accessed 15 October 2021].
Smith, P & Zook, Z. 2020. Marketing communications: integrating online and offline, customer
engagement and digital technologies. 7th ed.
https://books.google.co.za/books?id=gHXADwAAQBAJ&pg=PA505&dq=direct+marketing
+testing&hl=af&sa=X&ved=2ahUKEwij8Kew69XzAhWfQkEAHfiqBEgQ6AF6BAgFEAI#v=
onepage&q=direct%20marketing%20testing&f=false [Accessed 23 October 2021].
Spectrum. 2021. 8 of the best direct mail examples to inspire your next advertising campaign.
https://spectrummarketing.com/best-direct-mail-examples-to-inspire-your-next-campaign/
[Accessed 5 April 2022].
Statista. 2021. Number of mobile internet users in South Africa from 2016 to 2026.
https://www.statista.com/statistics/558867/number-of-mobile-internet-user-in-south-africa/
[Accessed 15 October 2021].
Superbalist. 2021. Privacy policy. https://superbalist.com/privacypolicy [Accessed 21 October
2021].
Van Heerden, N, Mulder, D & Sephapo, CM. 2019. Integrated marketing communication. 4th
ed. Pretoria: Van Schaik.
Wilson, A, Zeithaml, V, Bitner, M & Gremler, D. 2021. Services marketing: integrating
customer service across the firm. 4th ed. https://books.google.co.za/books?id=

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 9skvEAAAQBAJ&pg=PA359&dq=direct+marketing+media+in+South+Africa&hl=af&sa=X&
ved=2ahUKEwi-htC8lefzAhXRN8AKHU4iCOcQ6AF6BAgJEAI#v=
onepage&q=direct%20marketing%20media%20in%20South%20Africa&f=false [Accessed
16 October 2021].
Wirtz, J & Lovelock, C. 2021. Services marketing: people, technology, strategy. 9th ed.
https://books.google.co.za/books?id=T6pJEAAAQBAJ&pg=PA227&dq=permission+based
+marketing&hl=af&sa=X&ved=2ahUKEwj-t97L7OTzAhWqM-
wKHZIGCQkQ6AF6BAgJEAI#v=onepage&q=permission%20based%20marketing&f=false
[Accessed 23 October 2021].
Yuppiechef. [n.d.]. Kitchen and home. https://www.yuppiechef.com/api/newsletter/
view/96e5f039-ff97-4e8d-8b7d-46d5616c11d4?utm_source=ycnewsletter&utm_medium=
email&utm_campaign=5dd95c27-3dfa-4f86-80c1-81ca5e1a4581 [Accessed 5 April 2022].

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LEARNING UNIT 8
DIGITAL COMMUNICATION

Overview of this learning unit

Learning outcomes
Key concepts
8.1 Introduction
8.2 Defining digital communication, the Internet and the World Wide Web
8.3 The new economy
8.4 The experience imperative
8.5 Defining digital marketing
8.6 Digital marketing communication platforms
8.7 Summary
8.8 Assessment questions
8.9 Reflection
Bibliography

OVERVIEW OF THIS LEARNING UNIT

In the previous learning unit, we discussed direct marketing and its various elements. In this
learning unit we provide an overview of digital communication by defining the internet and
world wide web and discussing the new economy and experience imperative. This is then
followed by defining digital marketing and explaining the key platforms used in digital
marketing.

LEARNING OUTCOMES

After completing this learning unit, you should be able to

• differentiate between the internet and the web
• interpret what the new/digital economy is
• discuss the experience imperative
• define digital marketing
• outline the various digital marketing platforms
• apply the various concepts within the African context

118
KEY CONCEPTS

• Internet
• Word wide web
• New/digital economy
• Experience imperative
• Digital communication
• Digital marketing
• Search engine marketing
• Mobile marketing
• Email marketing
• Blog
• Podcast
• Social media marketing
• Online advertising

8.1 INTRODUCTION
(Study section 10.1 in the prescribed textbook.)

Using the internet and the web has become part of our daily lives and quite important when
it comes to marketing and engaging with businesses. There are more consumers that are
using the internet and the web; therefore, it is important that businesses have an online
presence and include various digital platforms to ensure that they keep up with the changing
environment. According to Desai and Shah (2019:9-11), digital technology allows brands to
• provide customised and personalised communication
• easily receive feedback, reviews and suggestions
• better control online campaigns and adapt the campaign if needed
• systematically track the different stages consumers go through
• use online analytics tools that provide deeper insight

119
8.2 DEFINING DIGITAL COMMUNICATION, THE INTERNET AND THE WORLD
WIDE WEB
(Study section 10.2 in the prescribed textbook.)

It is important to know the definition of digital communication and the difference between
the internet and the web. As with any technology, the web has evolved over the years from
Web 1.0, 2.0, 3.0 and 4.0 – make sure that you understand how it has evolved. Read the
following academic article and watch the YouTube video for a better understanding of the
differences between the web versions (for noting):
• https://journal.qubahan.com/index.php/qaj/article/download/75/49
• _vol.XVII_issue_1_2020-171-181.pdf (swu.bg)
• Web 1.0, Web 2.0 & Web 3.0: A Brief Explanation - YouTube

Follow the links below to read more on digital communication, the internet and the web:
• What is Digital Communication | IGI Global (igi-global.com)
• World Wide Web vs Internet: Key Differences | Webopedia

Discussion forum activity 8.1

In your own words, explain what digital communication refers to by conducting research
online, and explain how it has influenced advertising and sales promotion.

8.3 THE NEW ECONOMY

(Study section 10.3 in the prescribed textbook.)

The new economy describes the changes that have taken place due to the widespread
adoption and use of the internet and the web (Inc n.d.). Make sure that you understand the
term new economy. Even though the prescribed textbook refers to the new economy, it is
important to note that a more current term to describe the internet economy is digital
economy. Follow the link to read up on the new/digital economy (for noting):
• New Economy Definition (investopedia.com)

120
 • DIGITAL ECONOMY: ESSENCE, FEATURES AND STAGES OF DEVELOPMENT |
Academicia Globe: Inderscience Research (academiascience.org)

Discussion forum activity 8.2

Watch the YouTube video https://www.youtube.com/watch?v=bACHdxnyP-M and answer

the following questions:
1. In your own words, describe the digital economy.
2. Explain the advantages and disadvantages of the digital economy.

8.4 THE EXPERIENCE IMPERATIVE

(Study section 10.4 in the prescribed textbook.)

One of the benefits of the internet is the ability to personalise and customise communication.
In recent years, the concept of customer experience has become a buzzword. Its popularity
can be attributed to the growing competition in industry where competitors sell similar
products and services, giving customers a variety of options to choose from and enabling
them to easily switch between competitors. This gave rise to the need for marketers to
differentiate themselves from competitors in the industry, who discovered that by focusing on
offering customers an optimal experience, their intention, satisfaction and loyalty towards the
brand were enhanced (Agarwal 2019). Making sure that consumers have great experiences
with a business is crucial, as it could lead to more customers and positive reviews, while
decreasing customer complaints and returns (Agarwal 2019.) Ensure that you can define the
term experience and that you understand the four moments of experience (shown in figure
8.1 below), the difference between quality and quantity perspective and the shift towards the
experiential aspect.

Experience of
Experience of Experience of Experience as a
anticipating
purchasing consuming memory
consumption

Figure 8.1 Four moments of experience

Source: adapted from Van Heerden et al (2019)

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Discussion forum activity 8.3

You want to purchase a new Samsung appliance. Interpret the four moments of experience
by providing practical examples specific to each.

8.5 DEFINING DIGITAL MARKETING

(Study section 10.5 in the prescribed textbook.)

Digital marketing refers to using various technologies for marketing activities to better match
consumers’ needs through improved knowledge (Chaffey & Ellis-Chadwick 2019). Ensure
that you understand the difference between digital, online and mobile marketing, the key
characteristics of online media and the key communication concepts in digital marketing,
namely permission marketing, customer engagement and content marketing.

Follow the links to read more about digital, online, mobile permission and content marketing
as well as customer engagement (for noting):
• (PDF) Permission Marketing: A Marketing Tool to Satisfy Bank Customers
(researchgate.net)
• Customer engagement in social media: a framework and meta-analysis (pucrs.br)
• The Ultimate Guide to Content Marketing in 2021 (hubspot.com)
• What is customer engagement? - Definition from WhatIs.com (techtarget.com)

Discussion forum activity 8.4

Conduct research online and provide practical examples of businesses using the following
communication concepts in digital marketing:
• permission marketing
• customer engagement
• content marketing

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8.6 DIGITAL MARKETING COMMUNICATION PLATFORMS
(Study section 10.7 in the prescribed textbook.)

There are various ditial marketing communication platforms that businesses can use,
namely websites, search engine marketing, mobile marketing, email marketing, blogs and
podcasts, social media marketing and online advertising.

One of the principles of the United Nations Global Compact that falls under human rights is
that businesses should ensure that they are not complicit in human rights abuses (United
Nations n.d.). In South Africa, one of the basic rights is the right to privacy (Government of
South Africa, n.d.). When it comes to privacy, it is important that they adhere to the
Protection of Personal Information Act (POPI Act) (discussed in learning unit 7 as well). With
various digital marketing platforms, businesses have access to consumers’ information and
it is important that they treat this information with the utmost care. Follow the links to learn
about the POPI Act (for noting):
• https://popia.co.za/
• What you need to know about the POPI Act - YouTube

8.6.1 Websites
(Study section 10.7.1 in the prescribed textbook.)

Nowadays, it is important that businesses have websites. A website acts as a digital

business card which shares information about a business and its products and services
(Vivial 2019). You need to understand the different types of websites, how businesses can
use websites, what needs to be considered for websites to be effective and what the
advantages of using a website are.

Discussion forum activity 8.5

Conduct research online and answer the following questions:

1. Provide practical examples of businesses using the main types of e-commerce
websites.

123
2. Identify and justify why each website you referred to in question 1 is effective by
considering the factors mentioned in your prescribed textbook.

8.6.2 Search engine marketing

(Study section 10.7.2 in the prescribed textbook.)

Your prescribed textbook explains that search engine marketing (SEM) consists of search
engine optimisation (SEO) and pay-per-click (PPC), which businesses use to make sure
that consumers can find their website. SEO, also referred to as organic search, means that
the business has designed their website in a way that makes it easier for a search engine
to find their website. If a business uses SEO correctly, their website will appear at the top
of the results pages. PPC, which is also referred to as paid search, on the other hand,
means that the business pays for their website to appear at the top of the results page.
Ensure that you understand what SEM, SEO and PPC are and how businesses use them.
Figure 8.2 below summarises these terms.

Organic search
Search engine marketing

Search engine
optimisation Uses keywords
effectively to appear at
the top

Paid search

Pay per click

Bids on keywords to
appear at the top

Figure 8.2 Search engine marketing

Source: adapted from Van Heerden et al (2019)

Follow the links for a better understanding of search engines (for noting):
• Introduction to search engine marketing (SEM) - YouTube
• Search Engine Land - News, Search Engine Optimization (SEO), Pay-Per-Click (PPC)
• 2204.10078.pdf (arxiv.org)

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Discussion forum activity 8.6

Conduct research online and identify brands that use SEO, SEM and PPC and give a
practical explanation of how each was used to market themselves.

8.6.3 Mobile marketing

(Study section 10.7.3 in the prescribed textbook.)

Mobile marketing is a strategy that aims to reach target consumers on mobile devices such
as smartphones and tablets through different channels (Marketo Engage n.d.). Ensure that
you know the various mobile marketing channels illustrated in figure 8.3 and how
businesses can use each of them. Follow the links to read current articles on mobile
marketing for a better understanding of the digital marketing communication platform (for
noting):
• Mobile | Marketing Dive
• Introduction To Mobile Marketing - YouTube

SMS and MMS

Mobile marketing

QR codes

Mobile websites

Mobile apps

Geo-location

Figure 8.3 Mobile marketing

Source: adapted from Van Heerden et al (2019)

In South Africa, many consumers only have access to the internet and the web via their
mobile devices (Samakosky 2016). This emphasises the importance of businesses using
mobile marketing within the local context. However, it is also important to note that South

125
Africans face the challenge of high data costs (Pillay 2021). Read the article on how brands
can overcome this:
• From mobile first to mobile forced: What SA marketers need to know - Mobitainment
(bizcommunity.com)

Discussion forum activity 8.7

Visit the following website and provide practical examples of businesses using various
mobile marketing channels by explaining how they were used. Remember to share the
links in your explanation:
• https://www.marketingdive.com/topic/mobile-marketing/

8.6.4 Email marketing

(Study section 10.7.4 in the prescribed textbook.)

Due to spam, the POPI Act and permission marketing (see learning unit 7), email marketing
may not be as effective as the other digital communication channels. Email marketing uses
email to promote a business, keep consumers informed and develop relationships with them
(Ward 2020). Ensure that you understand how businesses can use emails, what
businesses need to consider when sending emails and how to avoid being considered as
spam. There four main types of marketing emails that businesses send to consumers
(HubSpot n.d.:19-24):
• Newsletters which are sent regularly are summaries of recent content that the business
created which could drive traffic back to the website.
• Informational emails are like newsletters and are used to update consumers about new
content, products or services, events, etc.
• Lead nurturing emails are automated emails that are sent to consumers to guide them
further down the sales funnel.
• Transactional emails are automated emails that are sent when consumers do
something.

Follow the links to read up on email marketing benchmarks for 2022 and other current
articles for a better understanding of email marketing:
• Email Marketing Benchmarks and Statistics for 2022 | Campaign Monitor:
• Email Marketing Tips Blog | Campaign Monitor

126
Discussion forum activity 8.8

Explain when businesses would send the four different types of emails to market their
business.

8.6.5 Blogs and podcasts

(Study section 10.7.5 in the prescribed textbook.)

The main difference between blogs and podcasts is the way that information is presented:
blogs are for reading and podcasts are for listening (Mercer n.d.). Even though there are
many types of blogs and podcasts available, ensure that you know the main types identified
in your prescribed textbook (shown in figure 8.4 below) and how businesses can use them.

Personal blogs

Business blogs
Blogs

Niche blogs

Reverse blogs

One-on-one
interviews

Solo commentary
Podcasts

Panel discussion

Story-telling

Repurposed
content
Figure 8.4 Types of blogs and podcasts
Source: adapted from Van Heerden et al (2019)

127
Follow the links to read current articles on blogs and podcasts for a better understanding of
these digital marketing communication platforms (for noting):
• All Posts (thepodcasthost.com)
• Content Marketing and Copywriting Articles (copyblogger.com)

8.6.6 Social media marketing

(Study section 10.7.6 in the prescribed textbook.)

Since the development of Web 2.0, the use of social media has grown exponentially over
the last decade. Not only are brands using social media and networks to market their
offering, but they are also using them to observe, analyse and predict consumer behaviour
in an attempt to be better than competitors and achieve a competitive advantage (Li, Larimo
& Leonidou 2021). Social media marketing uses social media websites and social networks
to market a business and its offering (Henderson 2020). Ensure that you know the difference
between social media platforms and social media networks, and how businesses can use
them.

Follow the links to read up on building a social media marketing strategy and other current
articles for a better understanding:
• Building Your Social Media Marketing Strategy for 2022 | Sprout Social
• All Social Media Archives | Sprout Social

Discussion forum activity 8.8

Provide practical examples of businesses using different social media networks.

8.6.7 Online advertising

(Study section 10.7.7 in the prescribed textbook.)

Online advertising is a broad term that describes using the internet or the web to deliver
marketing messages online. Ensure that you understand the three different types of media,
illustrated in figure 8.5 below. Follow the links to read current articles on the types of online

128
advertising media, namely paid, earned and owned, for a better understanding of the digital
marketing communication platform (for noting):
• The difference between paid owned and earned media (smartinsights.com)
• Categorization of media vehicles in digital world (researchgate.net)
• What is Online Advertising? | OBJECTIVE, BENEFIT AND KEY TERMS - YouTube

Paid media
Types of media

Earned media

Owned media

Figure 8.5 Types of media

Source: adapted from Van Heerden et al (2019)

Discussion forum activity 8.10

Provide practical examples of different types of media using Mr D as an example.

Now that you understand the various digital marketing communication tools that businesses
can use, do the self-assessment activity to apply what you have learnt.

Self assessment activity 8.1

You decide to start a business that locally manufactures and sells a line of natural and
organic skincare products containing bulbinella. Certain species of bulbinella are native
plants to South Africa and are known to help with certain skin conditions. Outline various
digital marketing communication tools that you would use in conjunction with advertising
and sales promotion to promote your new store in Sandton City.

129
Share your answers on the discussion forum. Your answer should range from 500 – 1 000
words.

Hint: You need to practise providing answers using your own words with less and less
direct citing from this unit’s content. With more practice, you will get better and master the
art of responding from your own understanding.

8.7 SUMMARY
The importance of digital communication is increasing as more consumers have access to
the internet and the web. Businesses need to understand and adapt with the changing
environment and incorporate various digital marketing tools that are available to them.
Having a solid online presence could increase business awareness and build credibility
(Paun 2020). Furthermore, consumers prefer brands that they can trust, are familiar with
and can interact with, and by using digital communication, brands are able to better give
consumers what they prefer (Yamin 2017:49). Digital marketing allows for effective
customer relationship management.

8.8 ASSESSMENT QUESTIONS

Now that you have completed learning unit 8, complete the assessment questions to test
your knowledge on some of the concepts discussed.

QUESTION 1
Tumelo sees an Instagram post with a model wearing a jacket that he likes. He clicks on
the post to view the shopping tag to find out how much it is. Tumelo then clicks on the link
that takes him to website where he can get more information about the jacket, such as the
materials used and sizing guide. This scenario represents the experience …

1 of anticipating consumption.
2 of purchasing.
3 of consuming.
4 as a memory.

QUESTION 2

Zama decides to create an e-commerce store selling her handmade items using shweshwe
fabric. When users type in “shweshwe fabric”, Zama’s website appears at the top of the
search page with a small ad icon next to it. This scenario BEST describes …

1 search engine marketing.

2 search engine optimisation.
3 pay-per-click.
4 geo-location.

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QUESTION 3

Trevor owns an e-commerce store that sells vape products. Consumers are able to view
and shop on his store on their cellphones and receive text messages updating them about
their online order. Which mobile marketing tool does Trevor use?
1 SMS
2 QR code
3 mobile website
4 mobile app

QUESTION 4
Betty is a fashion designer and launched a new line of women’s work wear. As part of her
digital marketing strategy, she sent an email to her database informing them of the new line.
This is an example of …

1 a newsletter.
2 an informational email.
3 a lead nurturing email.
4 a transactional email.

QUESTION 5
Zakeeya is a seamstress that offers quality and affordable services. Due to her good
services, many consumers leave positive reviews on her Facebook page. The reviews are
an example of …

1 paid media.
2 earned media.
3 owned media.
4 free media.

8.9 REFLECTION
Before you continue to the next learning unit, complete the following Likert scale. After
studying the prescribed textbook in conjunction with the study guide, rate your competency
in the topics covered in this learning unit:

Learning Novice Partial Average Above Expert

outcomes competence competence average
competence
Differentiate 1 2 3 4 5
between the
internet and
the web

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 Interpret 1 2 3 4 5
what the
new/digital
economy is
Discuss the 1 2 3 4 5
experience
imperative
Define digital 1 2 3 4 5
marketing
Outline the 1 2 3 4 5
various
digital
marketing
platforms
Apply the 1 2 3 4 5
various
concepts
within the
African
context

If you rated yourself 3 or below for any of the learning outcomes, work through the relevant
sections in your prescribed textbook and study guide again. Post on the discussion forum
which learning outcomes you are struggling with.

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