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Marketing to South African Consumers

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Marketing to South African Consumers Marketing to South African Consumers EDITED BY: James Lappeman Paul Egan Gillian Rightford Thabang Ramogase Marketing to South African Consumers First Edition EDITED BY James Lappeman Paul Egan Gillian Rightford Thabang Ramogase PUBLISHING MANAGER Michelle Willmers UCT Liberty Institute of Strategic Marketing & UCT Libraries First Edition, January 2021 © Copyright 2021 l The Authors Licensed under a Creative Commons Attribution 4.0 International licence (http://creativecommons.org.licenses/by/4.0/) Published by the UCT Liberty Institute of Strategic Marketing and UCT Libraries. The publication process for this work was undertaken in collaboration with the Digital Open Textbooks for Development project in the Centre for Innovation in Learning and Teaching at the University of Cape Town. This work was carried out with the aid of a grant from the International Development Research Centre, Ottawa, Canada. LIBRARIES How to cite this book Lappeman, J., Egan, P., Rightford, G. & Ramogase, T. (2021). Marketing to South African Consumers. Cape Town: UCT Liberty Institute of Strategic Marketing & UCT Libraries. https://doi.org/10.15641/0-7992-2548-8 This textbook is freely available online at: https://doi.org/10.15641/0-7992-2548-8 Acknowledgements With many thanks to Liberty Life for its sponsorship of the UCT Liberty Institute of Strategic Marketing and to the Digital Open Textbooks for Development project for a grant that helped to fund the production of this book. Contact Editor James Lappeman [email protected] Digital Open Textbooks for Development www.dot4d.uct.ac.za Graphic design Marike Strydom (Jade Rose Graphic Design) [email protected] Proofreader Bruce Conradie [email protected] Contents Part 1: Marketing and Marketing Strategy Chapter 1: What is Consumer Marketing? 01 Chapter 2: The Role of Marketing in Delivering Corporate Strategy 23 Chapter 3: Sustainability in Consumer Marketing 39 Chapter 4: The Marketer's Micro-Environment 55 Part 2: The South African Consumer's World Chapter 5: The South African Consumer Landscape 69 Chapter 6: The South African Retail Landscape 87 Chapter 7: The South African Media Landscape 111 Chapter 8: The South African Macro-Environment 129 Part 3: Consumer Behaviour Chapter 9: Drivers of Consumer Behaviour 143 Chapter 10: Consumer Decision-Making 153 Part 4: Consumer Marketing Strategy Chapter 11: Market Segmentation and Targeting 169 Chapter 12: Positioning and Branding 187 Part 5: Consumer Marketing Tactics (Strategy Implementation) Chapter 13: Product Tactics 207 Chapter 14: Pricing Tactics 221 Chapter 15: Place (Distribution) Tactics 237 Chapter 16: Promotion Tactics (Integrated Marketing Communications) 263 Part 6: Marketing Intelligence (Feedback Loop) Chapter 17: Market Metrics: The Strategy Feedback Loop 279 Chapter 18: Market Research and Consumer Insights 287 Part 7: Tools for Achieving Competitive Advantage Chapter 19: Vital Skills for Modern Day Consumer Marketers 307 Chapter 20: Digital Marketing Techniques 319 Chapter 21: Constructing a Basic Marketing Plan 329 Foreword This is a textbook on marketing to South African consumers. The aim of the textbook is to provide a backbone of foundational marketing theory with an emphasis on meeting the needs of South African business. The textbook is, however, relevant to any marketer or business owner who would like to gain more understanding of marketing in general and South African consumers in particular. We would like to thank the contributors for the extensive time and effort they invested to make this work available as an open textbook. It is openly licensed and can be adapted for other contexts. Core chapter contributions came from: Ana Carrapichano (0000-0003-0298-5766) Gift Phala (0000-0002-9702-2227) Gillian Rightford (0000-0002-7695-5167) Gordon Muller (0000-0002-8298-760) James Lappeman (0000-0001-8187-9165) Kaylee Hewitt (0000-0001-5200-4159) Martin Neethling (0000-0002-6013-1331) Maryla Masojada (0000-0003-0450-265X) Megan Swartz (0000-0003-1750-3571) Nevo Hadas (0000-0002-3337-3589) Nozizwe Vundla (0000-0002-9869-4404) Vimbai Malandu (0000-0002-2399-8729) Paul Egan (0000-0002-5345-495X) Raeesah Chohan (0000-0002-0151-9774) Shriya Bramdaw (0000-0003-2688-0803) Steve Bird (0000-0002-3472-3341) Thabo K. Makgolo (0000-0003-3839-890X) Titi Kabi (0000-0002-7587-0938) Claire Herman Craig Risi Michael Pearce Sue Rooney We would also like to thank the peer reviewers for the many hours spent helping us to shape this work and ensure relevance and accuracy. This was a voluntary exercise, with the goal of providing a high-quality open-access resource for students and practitioners of marketing. The peer reviewers were key to ensuring that the content met curriculum and industry standards. Peer reviewers were: Alastair Tempest Caitlin Ferreira Chris Botha Devendri Adari Diana Masaire Duanne Aspelling Jeandri Robertson Lebogang Mototo Ludi Koekemoer Mignon Reyneke Mosala Phillips Mphumudzeni Mbelengwa Mymoena Mooradd Nkosivile Madinga Nozipho Mpanza Ozayr Matthews Pragasen Pillay Rob Smuts Sechaba Motsiela Siphiwe Dlamini Tendai Mbumbwa Twanett Williams Virginia Hollis Special thanks to the Digital Open Textbooks for Development (DOT4D) Publishing and Implementation Manager, Michelle Willmers, who worked closely with the editors to shape the book from a set of drafts to a cohesive manuscript. The textbook is what it is because of her and the DOT4D team's support. James Lappeman, Paul Egan, Gillian Rightford and Thabang Ramogase Part 1: Marketing and Marketing Strategy Part 1 of this textbook provides a background by which to understand the rest of the contents. Marketing has many tactical components, like pricing and advertising, but these must be understood in the context of an overall strategy. When a marketer is focused on tactics without a strategy ('tactification'), focus and effectiveness are lost. 8 Chapter 1: What is Consumer Marketing? This chapter defines marketing and helps to build fundamental knowledge of the discipline. As part of defining marketing, the chapter looks at how marketing has evolved. The chapter also outlines the process of creating a marketing strategy, which includes diagnosis, strategy, tactics and feedback. The South African marketing environment is briefly discussed. Chapter 2: The Role of Marketing in Delivering Corporate Strategy Marketing strategy is a crucial tool in executing corporate strategy, but only if the relationship between these two is understood. This chapter discusses the role of marketing strategy in delivering corporate strategy and uses some generic corporate strategy models as examples. Chapter 3: Sustainability in Consumer Marketing As part of its very definition, marketing emphasises the need to value society at large to meet needs in the long term. While not always complied with, this view of sustainability has become core to marketing. This chapter frames sustainability in marketing and provides an understanding of sustainable consumption. The idea of 'greenwashing' one's marketing strategy is also discussed. The chapter is a call for marketers to think ahead and have the long-term interests of consumers at heart. Chapter 4: The Marketer's Micro-Environment As a consumer marketer, effectiveness comes from multiple considerations. Some factors are outside of the marketer's control (the macro-environment is discussed in Chapter 8). This chapter discusses the marketer's world in the form of the company, consumers, competitors, suppliers, intermediaries and other stakeholders with which they interact. These components form the basic marketing micro-environment and are within the marketer's direct sphere of influence. Understanding the basics of marketing, marketing strategy and the influences of the micro-environment is the starting point of marketing to South African consumers. 9 istockphoto.com What is Consumer CHAPTER Marketing? 1 James Lappeman Vimbai Malandu Introduction The purpose of commercial business is to find and retain customers by creating a compelling value proposition. Marketing is at the very essence of this purpose, and this chapter provides a holistic view of the marketing concept specifically related to consumers. Not all marketing is commercial; the principles in this book can therefore be applied to marketing many things, like ideologies or not-for-profit organisations. Similarly, not all marketing is directly related to consumers (for example, a company can market nuts and bolts to another company that makes cars). This book, however, is about marketing to consumers. Before we get into chapters on the fundamental principles of marketing, this chapter provides a broad strategic overview of what marketing is, and how to think about consumer marketing. A clear understanding of this chapter is required before the rest of this book's contents can be fully understood. In fact, some of the best marketers in the world do not have formal marketing training, but understand the principles of this chapter and have built great business empires around this thinking. Definitions of marketing In order to define marketing, let us look at two definitions from key sources. According to Kotler and Armstrong marketing is defined as: A social and managerial process by which individuals and businesses obtain what they need and want through creating and exchanging value with others.1 According to the American Marketing Association: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings
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